|
ý
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended July 2, 2017
|
||
|
||
OR
|
||
|
|
|
o
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
For the transition period from to
|
Delaware
(State or other jurisdiction of
incorporation or organization)
|
|
47-1016855
(I.R.S. Employer
Identification No.)
|
262 N University Drive
Farmington, UT
|
|
84025
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large Accelerated Filer
ý
|
|
Accelerated Filer
o
|
|
Non-Accelerated Filer
o
(Do not check if a
smaller reporting company)
|
|
Smaller reporting company
o
|
|
Emerging growth company
o
|
|
|
|
Quarter ended
|
||||||
(Amounts in thousands except per share data)
|
|
July 2, 2017
|
|
July 3, 2016
|
||||
Sales, net
|
|
$
|
568,749
|
|
|
$
|
630,269
|
|
Cost of sales
|
|
422,191
|
|
|
458,892
|
|
||
Gross profit
|
|
146,558
|
|
|
171,377
|
|
||
Operating expenses:
|
|
|
|
|
||||
Research and development
|
|
7,791
|
|
|
7,831
|
|
||
Selling, general, and administrative
|
|
99,426
|
|
|
104,444
|
|
||
Income before interest and income taxes
|
|
39,341
|
|
|
59,102
|
|
||
Interest expense, net
|
|
(12,393
|
)
|
|
(11,963
|
)
|
||
Income before income taxes
|
|
26,948
|
|
|
47,139
|
|
||
Income tax provision
|
|
10,296
|
|
|
18,015
|
|
||
Net income
|
|
$
|
16,652
|
|
|
$
|
29,124
|
|
Earnings per common share:
|
|
|
|
|
||||
Basic
|
|
$
|
0.29
|
|
|
$
|
0.48
|
|
Diluted
|
|
$
|
0.29
|
|
|
$
|
0.48
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
||||
Basic
|
|
56,916
|
|
|
60,384
|
|
||
Diluted
|
|
56,957
|
|
|
60,715
|
|
||
|
|
|
|
|
|
|
||
Net income (from above)
|
|
$
|
16,652
|
|
|
$
|
29,124
|
|
Other comprehensive income (loss), 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 $163 and $162, respectively.
|
|
(274
|
)
|
|
(274
|
)
|
||
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(666) and $(734), respectively.
|
|
1,122
|
|
|
1,236
|
|
||
Valuation adjustment for pension and postretirement benefit plans, net of tax benefit of $2,154 and $0, respectively
|
|
(3,628
|
)
|
|
—
|
|
||
Change in derivatives, net of tax expense of $(14) and $0, respectively.
|
|
23
|
|
|
—
|
|
||
Change in cumulative translation adjustment, net of tax benefit of $0 and $0, respectively.
|
|
8,571
|
|
|
(4,799
|
)
|
||
Total other comprehensive income (loss)
|
|
5,814
|
|
|
(3,837
|
)
|
||
Comprehensive income
|
|
$
|
22,466
|
|
|
$
|
25,287
|
|
(Amounts in thousands except share data)
|
|
July 2, 2017
|
|
March 31, 2017
|
||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
53,550
|
|
|
$
|
45,075
|
|
Net receivables
|
|
454,789
|
|
|
450,715
|
|
||
Net inventories
|
|
542,880
|
|
|
562,795
|
|
||
Income tax receivable
|
|
17,944
|
|
|
25,658
|
|
||
Other current assets
|
|
26,639
|
|
|
25,604
|
|
||
Total current assets
|
|
1,095,802
|
|
|
1,109,847
|
|
||
Net property, plant, and equipment
|
|
272,773
|
|
|
272,346
|
|
||
Goodwill
|
|
861,114
|
|
|
857,631
|
|
||
Net intangible assets
|
|
700,839
|
|
|
708,530
|
|
||
Deferred charges and other non-current assets
|
|
30,779
|
|
|
28,393
|
|
||
Total assets
|
|
$
|
2,961,307
|
|
|
$
|
2,976,747
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Current portion of long-term debt
|
|
$
|
32,000
|
|
|
$
|
32,000
|
|
Accounts payable
|
|
102,098
|
|
|
127,718
|
|
||
Accrued compensation
|
|
31,773
|
|
|
33,663
|
|
||
Federal excise tax
|
|
26,092
|
|
|
30,082
|
|
||
Other accrued liabilities
|
|
130,022
|
|
|
122,926
|
|
||
Total current liabilities
|
|
321,985
|
|
|
346,389
|
|
||
Long-term debt
|
|
1,075,175
|
|
|
1,089,252
|
|
||
Deferred income tax liabilities
|
|
159,444
|
|
|
160,765
|
|
||
Accrued pension and postemployment benefits
|
|
62,710
|
|
|
64,230
|
|
||
Other long-term liabilities
|
|
71,360
|
|
|
71,046
|
|
||
Total liabilities
|
|
1,690,674
|
|
|
1,731,682
|
|
||
Commitments and contingencies (Notes 10 and 13)
|
|
|
|
|
||||
Common stock—$.01 par value:
|
|
|
|
|
||||
Authorized—500,000,000 shares
|
|
|
|
|
||||
Issued and outstanding — 57,030,534 shares at July 2, 2017 and 57,014,319 shares at March 31, 2017
|
|
570
|
|
|
571
|
|
||
Additional paid-in capital
|
|
1,755,119
|
|
|
1,752,903
|
|
||
Accumulated deficit
|
|
(91,381
|
)
|
|
(108,033
|
)
|
||
Accumulated other comprehensive loss
|
|
(107,178
|
)
|
|
(112,992
|
)
|
||
Common stock in treasury, at cost — 6,933,905 shares held at July 2, 2017 and 6,950,120 shares held at March 31, 2017
|
|
(286,497
|
)
|
|
(287,384
|
)
|
||
Total stockholders' equity
|
|
1,270,633
|
|
|
1,245,065
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
2,961,307
|
|
|
$
|
2,976,747
|
|
|
|
Three months ended
|
||||||
(Amounts in thousands)
|
|
July 2, 2017
|
|
July 3, 2016
|
||||
Operating Activities:
|
|
|
|
|
||||
Net income
|
|
$
|
16,652
|
|
|
$
|
29,124
|
|
Adjustments to net income to arrive at cash provided by (used for) operating activities:
|
|
|
|
|
||||
Depreciation
|
|
13,552
|
|
|
13,676
|
|
||
Amortization of intangible assets
|
|
9,110
|
|
|
10,106
|
|
||
Amortization of deferred financing costs
|
|
728
|
|
|
2,172
|
|
||
Deferred income taxes
|
|
2
|
|
|
52
|
|
||
Loss on disposal of property, plant, and equipment
|
|
77
|
|
|
41
|
|
||
Stock-based compensation
|
|
3,357
|
|
|
3,310
|
|
||
Changes in assets and liabilities, net of acquisition of businesses:
|
|
|
|
|
||||
Net receivables
|
|
(2,323
|
)
|
|
(12,908
|
)
|
||
Net inventories
|
|
17,550
|
|
|
(57,697
|
)
|
||
Accounts payable
|
|
(20,953
|
)
|
|
(33,196
|
)
|
||
Accrued compensation
|
|
(2,559
|
)
|
|
(19,322
|
)
|
||
Accrued income taxes
|
|
8,423
|
|
|
14,396
|
|
||
Federal excise tax
|
|
(4,036
|
)
|
|
737
|
|
||
Pension and other postretirement benefits
|
|
(4,841
|
)
|
|
579
|
|
||
Other assets and liabilities
|
|
4,170
|
|
|
26,772
|
|
||
Cash provided by (used for) operating activities
|
|
38,909
|
|
|
(22,158
|
)
|
||
Investing Activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(16,430
|
)
|
|
(21,006
|
)
|
||
Acquisition of businesses, net of cash acquired
|
|
—
|
|
|
(405,943
|
)
|
||
Proceeds from the disposition of property, plant, and equipment
|
|
13
|
|
|
34
|
|
||
Cash used for investing activities
|
|
(16,417
|
)
|
|
(426,915
|
)
|
||
Financing Activities:
|
|
|
|
|
||||
Borrowings on line of credit
|
|
145,000
|
|
|
115,000
|
|
||
Payments made on line of credit
|
|
(150,000
|
)
|
|
(25,000
|
)
|
||
Proceeds from issuance of long-term debt
|
|
—
|
|
|
307,500
|
|
||
Payments made on long-term debt
|
|
(8,000
|
)
|
|
(8,000
|
)
|
||
Payments made for debt issuance costs
|
|
(1,805
|
)
|
|
(3,660
|
)
|
||
Purchase of treasury shares
|
|
—
|
|
|
(22,058
|
)
|
||
Proceeds from employee stock compensation plans
|
|
298
|
|
|
—
|
|
||
Cash provided by (used for) financing activities
|
|
(14,507
|
)
|
|
363,782
|
|
||
Effect of foreign exchange rate fluctuations on cash
|
|
490
|
|
|
(401
|
)
|
||
(Decrease) increase in cash and cash equivalents
|
|
8,475
|
|
|
(85,692
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
45,075
|
|
|
151,692
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
53,550
|
|
|
$
|
66,000
|
|
|
|
|
|
|
||||
Supplemental Cash Flow Disclosures:
|
|
|
|
|
||||
Non-cash investing activity:
|
|
|
|
|
||||
Capital expenditures included in accounts payable
|
|
$
|
5,598
|
|
|
$
|
2,065
|
|
Non-cash financing activity:
|
|
|
|
|
||||
Treasury shares purchased included in other accrued liabilities
|
|
$
|
—
|
|
|
$
|
998
|
|
|
|
Common Stock $.01 Par Value
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(Amounts in thousands except share data)
|
|
Shares
|
|
Amount
|
|
Additional
Paid-In Capital |
|
(Accumulated Deficit) Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
Treasury
Stock |
|
Total
Equity |
|||||||||||||
Balance, March 31, 2016
|
|
60,825,914
|
|
|
$
|
608
|
|
|
$
|
1,743,371
|
|
|
$
|
166,421
|
|
|
$
|
(110,214
|
)
|
|
$
|
(140,019
|
)
|
|
$
|
1,660,167
|
|
Comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,124
|
|
|
(3,837
|
)
|
|
—
|
|
|
25,287
|
|
||||||
Restricted stock grants net of forfeitures
|
|
(11,344
|
)
|
|
—
|
|
|
(141
|
)
|
|
—
|
|
|
—
|
|
|
37
|
|
|
(104
|
)
|
||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
3,310
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,310
|
|
||||||
Restricted stock vested and shares withheld
|
|
912
|
|
|
—
|
|
|
(71
|
)
|
|
—
|
|
|
—
|
|
|
(548
|
)
|
|
(619
|
)
|
||||||
Treasury stock purchased
|
|
(461,525
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,277
|
)
|
|
(22,277
|
)
|
||||||
Other
|
|
5,277
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Balance, July 3, 2016
|
|
60,359,234
|
|
|
$
|
603
|
|
|
$
|
1,746,469
|
|
|
$
|
195,545
|
|
|
$
|
(114,051
|
)
|
|
$
|
(162,807
|
)
|
|
$
|
1,665,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance, March 31, 2017
|
|
57,014,319
|
|
|
$
|
571
|
|
|
$
|
1,752,903
|
|
|
$
|
(108,033
|
)
|
|
$
|
(112,992
|
)
|
|
$
|
(287,384
|
)
|
|
$
|
1,245,065
|
|
Comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,652
|
|
|
5,814
|
|
|
—
|
|
|
22,466
|
|
||||||
Exercise of stock options
|
|
18,476
|
|
|
—
|
|
|
(465
|
)
|
|
—
|
|
|
—
|
|
|
763
|
|
|
298
|
|
||||||
Restricted stock grants net of forfeitures
|
|
(16,286
|
)
|
|
—
|
|
|
(89
|
)
|
|
—
|
|
|
—
|
|
|
(357
|
)
|
|
(446
|
)
|
||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
3,357
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,357
|
|
||||||
Restricted stock vested and shares withheld
|
|
6,827
|
|
|
—
|
|
|
(423
|
)
|
|
—
|
|
|
—
|
|
|
177
|
|
|
(246
|
)
|
||||||
Employee stock purchase plan
|
|
6,510
|
|
|
—
|
|
|
(130
|
)
|
|
—
|
|
|
—
|
|
|
269
|
|
|
139
|
|
||||||
Other
|
|
688
|
|
|
(1
|
)
|
|
(34
|
)
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
||||||
Balance, July 2, 2017
|
|
57,030,534
|
|
|
$
|
570
|
|
|
$
|
1,755,119
|
|
|
$
|
(91,381
|
)
|
|
$
|
(107,178
|
)
|
|
$
|
(286,497
|
)
|
|
$
|
1,270,633
|
|
|
|
July 2, 2017
|
|
March 31, 2017
|
||||||||||||
|
|
Carrying
amount |
|
Fair
value |
|
Carrying
amount |
|
Fair
value |
||||||||
Fixed-rate debt
|
|
$
|
350,000
|
|
|
$
|
360,252
|
|
|
$
|
350,000
|
|
|
$
|
341,250
|
|
Variable-rate debt
|
|
770,000
|
|
|
770,000
|
|
|
783,000
|
|
|
783,000
|
|
|
|
Quarter ended
|
||||
(in thousands)
|
|
July 2, 2017
|
|
July 3, 2016
|
||
Basic EPS shares outstanding
|
|
56,916
|
|
|
60,384
|
|
Dilutive effect of stock-based awards
|
|
41
|
|
|
331
|
|
Diluted EPS shares outstanding
|
|
56,957
|
|
|
60,715
|
|
Shares excluded from the calculation of diluted EPS because the option exercise/threshold price was greater than the average market price of the common shares
|
|
358
|
|
|
71
|
|
|
|
April 1, 2016
|
||||||
Purchase price net of cash acquired:
|
|
|
|
|
||||
Cash paid
|
|
|
|
$
|
400,000
|
|
||
Estimated earnout value
|
|
|
|
4,272
|
|
|||
Cash received for working capital
|
|
|
|
(1,289
|
)
|
|||
Total purchase price
|
|
|
|
402,983
|
|
|||
Fair value of assets acquired:
|
|
|
|
|
||||
Receivables
|
|
$
|
78,090
|
|
|
|
||
Inventories
|
|
56,527
|
|
|
|
|||
Tradename, customer relationship, and technology intangibles
|
|
155,100
|
|
|
|
|||
Property, plant, and equipment
|
|
34,114
|
|
|
|
|||
Other assets
|
|
6,425
|
|
|
|
|||
Total assets
|
|
330,256
|
|
|
|
|||
Fair value of liabilities assumed:
|
|
|
|
|
||||
Accounts payable
|
|
30,240
|
|
|
|
|||
Deferred tax liabilities
|
|
43,991
|
|
|
|
|||
Other liabilities
|
|
33,168
|
|
|
|
|||
Total liabilities
|
|
107,399
|
|
|
|
|||
Net assets acquired
|
|
|
|
222,857
|
|
|||
Goodwill
|
|
|
|
$
|
180,126
|
|
|
|
July 2, 2017
|
|
March 31, 2017
|
||||
Trade receivables
|
|
$
|
477,080
|
|
|
$
|
472,233
|
|
Other receivables
|
|
2,106
|
|
|
3,136
|
|
||
Less: allowance for doubtful accounts and discounts
|
|
(24,397
|
)
|
|
(24,654
|
)
|
||
Net receivables
|
|
$
|
454,789
|
|
|
$
|
450,715
|
|
|
|
July 2, 2017
|
|
March 31, 2017
|
||||
Raw materials
|
|
$
|
103,862
|
|
|
$
|
101,635
|
|
Work in process
|
|
47,212
|
|
|
51,004
|
|
||
Finished goods
|
|
391,806
|
|
|
410,156
|
|
||
Net inventories
|
|
$
|
542,880
|
|
|
$
|
562,795
|
|
|
July 2, 2017
|
|
March 31, 2017
|
||||
Pension and other postretirement benefits
|
$
|
(59,709
|
)
|
|
$
|
(56,929
|
)
|
Derivatives
|
23
|
|
|
—
|
|
||
Cumulative translation adjustment
|
(47,492
|
)
|
|
(56,063
|
)
|
||
Total AOCL
|
$
|
(107,178
|
)
|
|
$
|
(112,992
|
)
|
|
Quarter ended July 2, 2017
|
||||||||||||||
|
Derivatives
|
|
Pension and other postretirement benefits
|
|
Cumulative translation adjustment
|
|
Total
|
||||||||
Beginning balance in AOCL
|
$
|
—
|
|
|
$
|
(56,929
|
)
|
|
$
|
(56,063
|
)
|
|
$
|
(112,992
|
)
|
Net actuarial losses reclassified from AOCL
(1)
|
—
|
|
|
1,122
|
|
|
—
|
|
|
1,122
|
|
||||
Prior service costs reclassified from AOCL
(1)
|
|
|
(274
|
)
|
|
—
|
|
|
(274
|
)
|
|||||
Valuation adjustment for pension and postretirement benefit plans
(2)
|
—
|
|
|
(3,628
|
)
|
|
—
|
|
|
(3,628
|
)
|
||||
Net increase in fair value of derivatives
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
||||
Net change in cumulative translation adjustment
|
—
|
|
|
—
|
|
|
8,571
|
|
|
8,571
|
|
||||
Ending balance in AOCL
|
$
|
23
|
|
|
$
|
(59,709
|
)
|
|
$
|
(47,492
|
)
|
|
$
|
(107,178
|
)
|
(1)
|
Amounts related to our pension and other postretirement benefits that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented.
|
(2)
|
See Note 11 for a description of the pension curtailment gain recognized in the quarter ended July 2, 2017.
|
|
Quarter ended July 3, 2016
|
||||||||||
|
Pension and other postretirement benefits
|
|
Cumulative translation adjustment
|
|
Total
|
||||||
Beginning balance in AOCL
|
$
|
(63,667
|
)
|
|
$
|
(46,547
|
)
|
|
$
|
(110,214
|
)
|
Net actuarial losses reclassified from AOCL
(1)
|
1,236
|
|
|
—
|
|
|
1,236
|
|
|||
Prior service costs reclassified from AOCL
(1)
|
(274
|
)
|
|
—
|
|
|
(274
|
)
|
|||
Net change in cumulative translation adjustment
|
—
|
|
|
(4,799
|
)
|
|
(4,799
|
)
|
|||
Ending balance in AOCL
|
$
|
(62,705
|
)
|
|
$
|
(51,346
|
)
|
|
$
|
(114,051
|
)
|
(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.
|
|
|
Outdoor Products
|
|
Shooting Sports
|
|
Total
|
||||||
Balance, March 31, 2017
|
|
$
|
652,896
|
|
|
$
|
204,735
|
|
|
$
|
857,631
|
|
Effect of foreign currency exchange rates
|
|
3,331
|
|
|
152
|
|
|
3,483
|
|
|||
Balance, July 2, 2017
|
|
$
|
656,227
|
|
|
$
|
204,887
|
|
|
$
|
861,114
|
|
|
|
July 2, 2017
|
|
March 31, 2017
|
||||||||||||||||||||
|
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Total
|
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Total
|
||||||||||||
Trade names
|
|
$
|
106,159
|
|
|
$
|
(18,986
|
)
|
|
$
|
87,173
|
|
|
$
|
106,159
|
|
|
$
|
(17,048
|
)
|
|
$
|
89,111
|
|
Patented technology
|
|
19,066
|
|
|
(7,978
|
)
|
|
11,088
|
|
|
19,066
|
|
|
(7,703
|
)
|
|
11,363
|
|
||||||
Customer relationships and other
|
|
372,966
|
|
|
(85,355
|
)
|
|
287,611
|
|
|
371,099
|
|
|
(78,010
|
)
|
|
293,089
|
|
||||||
Total
|
|
498,191
|
|
|
(112,319
|
)
|
|
385,872
|
|
|
496,324
|
|
|
(102,761
|
)
|
|
393,563
|
|
||||||
Non-amortizing trade names
|
|
314,967
|
|
|
—
|
|
|
314,967
|
|
|
314,967
|
|
|
—
|
|
|
314,967
|
|
||||||
Net intangibles
|
|
$
|
813,158
|
|
|
$
|
(112,319
|
)
|
|
$
|
700,839
|
|
|
$
|
811,291
|
|
|
$
|
(102,761
|
)
|
|
$
|
708,530
|
|
Remainder of fiscal 2018
|
|
$
|
27,666
|
|
Fiscal 2019
|
|
34,144
|
|
|
Fiscal 2020
|
|
33,317
|
|
|
Fiscal 2021
|
|
33,301
|
|
|
Fiscal 2022
|
|
33,293
|
|
|
Thereafter
|
|
224,151
|
|
|
Total
|
|
$
|
385,872
|
|
|
|
July 2, 2017
|
|
March 31, 2017
|
||||
Other current liabilities:
|
|
|
|
|
||||
Accrual for in-transit inventory
|
|
$
|
25,427
|
|
|
$
|
17,505
|
|
Rebate
|
|
22,433
|
|
|
19,325
|
|
||
Other
|
|
82,162
|
|
|
86,096
|
|
||
Total other current liabilities
|
|
$
|
130,022
|
|
|
$
|
122,926
|
|
|
|
|
|
|
||||
Other non-current liabilities:
|
|
|
|
|
||||
Non-current portion of accrued income tax liability
|
|
$
|
33,469
|
|
|
$
|
32,842
|
|
Other
|
|
37,891
|
|
|
38,204
|
|
||
Total other non-current liabilities
|
|
$
|
71,360
|
|
|
$
|
71,046
|
|
|
|
||
Balance, March 31, 2017
|
$
|
10,014
|
|
Payments made
|
(915
|
)
|
|
Warranties issued
|
1,274
|
|
|
Changes related to preexisting warranties
|
89
|
|
|
Balance, July 2, 2017
|
$
|
10,462
|
|
|
|
July 2, 2017
|
|
March 31, 2017
|
||||
Credit Agreement:
|
|
|
|
|
||||
Term Loan
|
|
$
|
600,000
|
|
|
$
|
608,000
|
|
Revolving Credit Facility
|
|
170,000
|
|
|
175,000
|
|
||
Total principal amount of Credit Agreement
|
|
770,000
|
|
|
783,000
|
|
||
5.875% Senior Notes
|
|
350,000
|
|
|
350,000
|
|
||
Principal amount of long-term debt
|
|
1,120,000
|
|
|
1,133,000
|
|
||
Less: unamortized deferred financing costs
|
|
(12,825
|
)
|
|
(11,748
|
)
|
||
Carrying amount of long-term debt
|
|
1,107,175
|
|
|
1,121,252
|
|
||
Less: current portion
|
|
(32,000
|
)
|
|
(32,000
|
)
|
||
Carrying amount of long-term debt, excluding current portion
|
|
$
|
1,075,175
|
|
|
$
|
1,089,252
|
|
•
|
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; or
|
•
|
if such subsidiary guarantor has been released from its guarantees of indebtedness under the Credit Agreement and all capital markets debt securities.
|
|
|
Notional
|
|
Fair Value
|
|
Pay Fixed
|
|
Receive Floating
|
|
Maturity Date
|
||||
Non-amortizing swap
|
|
$
|
100,000
|
|
|
$
|
2
|
|
|
1.519%
|
|
1.226%
|
|
June 2019
|
Non-amortizing swap
|
|
100,000
|
|
|
35
|
|
|
1.629%
|
|
1.226%
|
|
June 2020
|
•
|
if such subsidiary guarantor has been released from its guarantees of indebtedness under the Credit Agreement and all capital markets debt securities.
|
|
|
Quarter ended July 2, 2017
|
||||||||||||||||||
(Amounts in thousands)
|
|
Parent Issuer
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales, net
|
|
$
|
—
|
|
|
$
|
539,559
|
|
|
$
|
50,697
|
|
|
$
|
(21,507
|
)
|
|
$
|
568,749
|
|
Cost of sales
|
|
—
|
|
|
410,957
|
|
|
33,229
|
|
|
(21,995
|
)
|
|
422,191
|
|
|||||
Gross profit
|
|
—
|
|
|
128,602
|
|
|
17,468
|
|
|
488
|
|
|
146,558
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development
|
|
—
|
|
|
7,791
|
|
|
—
|
|
|
—
|
|
|
7,791
|
|
|||||
Selling, general, and administrative
|
|
—
|
|
|
87,296
|
|
|
12,130
|
|
|
—
|
|
|
99,426
|
|
|||||
Income before interest and income taxes
|
|
—
|
|
|
33,515
|
|
|
5,338
|
|
|
488
|
|
|
39,341
|
|
|||||
Equity in income of subsidiaries
|
|
24,399
|
|
|
3,965
|
|
|
—
|
|
|
(28,364
|
)
|
|
—
|
|
|||||
Interest expense, net
|
|
(12,393
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,393
|
)
|
|||||
Income before income taxes
|
|
12,006
|
|
|
37,480
|
|
|
5,338
|
|
|
(27,876
|
)
|
|
26,948
|
|
|||||
Income tax provision (benefit)
|
|
(4,646
|
)
|
|
13,081
|
|
|
1,706
|
|
|
155
|
|
|
10,296
|
|
|||||
Net income
|
|
$
|
16,652
|
|
|
$
|
24,399
|
|
|
$
|
3,632
|
|
|
$
|
(28,031
|
)
|
|
$
|
16,652
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (from above)
|
|
$
|
16,652
|
|
|
$
|
24,399
|
|
|
$
|
3,632
|
|
|
$
|
(28,031
|
)
|
|
$
|
16,652
|
|
Total other comprehensive income
|
|
5,814
|
|
|
5,814
|
|
|
8,571
|
|
|
(14,385
|
)
|
|
5,814
|
|
|||||
Comprehensive income
|
|
$
|
22,466
|
|
|
$
|
30,213
|
|
|
$
|
12,203
|
|
|
$
|
(42,416
|
)
|
|
$
|
22,466
|
|
|
|
Quarter ended July 3, 2016
|
||||||||||||||||||
(Amounts in thousands)
|
|
Parent Issuer
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales, net
|
|
$
|
—
|
|
|
$
|
599,314
|
|
|
$
|
54,594
|
|
|
$
|
(23,639
|
)
|
|
$
|
630,269
|
|
Cost of sales
|
|
—
|
|
|
445,549
|
|
|
36,742
|
|
|
(23,399
|
)
|
|
458,892
|
|
|||||
Gross profit
|
|
—
|
|
|
153,765
|
|
|
17,852
|
|
|
(240
|
)
|
|
171,377
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development
|
|
—
|
|
|
7,831
|
|
|
—
|
|
|
—
|
|
|
7,831
|
|
|||||
Selling, general, and administrative
|
|
—
|
|
|
90,616
|
|
|
13,828
|
|
|
—
|
|
|
104,444
|
|
|||||
Income before interest and income taxes
|
|
—
|
|
|
55,318
|
|
|
4,024
|
|
|
(240
|
)
|
|
59,102
|
|
|||||
Equity in income of subsidiaries
|
|
36,601
|
|
|
2,459
|
|
|
—
|
|
|
(39,060
|
)
|
|
—
|
|
|||||
Interest expense, net
|
|
(11,963
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,963
|
)
|
|||||
Income before income taxes
|
|
24,638
|
|
|
57,777
|
|
|
4,024
|
|
|
(39,300
|
)
|
|
47,139
|
|
|||||
Income tax provision (benefit)
|
|
(4,486
|
)
|
|
21,176
|
|
|
1,408
|
|
|
(83
|
)
|
|
18,015
|
|
|||||
Net income
|
|
$
|
29,124
|
|
|
$
|
36,601
|
|
|
$
|
2,616
|
|
|
$
|
(39,217
|
)
|
|
$
|
29,124
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (from above)
|
|
$
|
29,124
|
|
|
$
|
36,601
|
|
|
$
|
2,616
|
|
|
$
|
(39,217
|
)
|
|
$
|
29,124
|
|
Total other comprehensive (loss)
|
|
(3,837
|
)
|
|
(3,837
|
)
|
|
(4,799
|
)
|
|
8,636
|
|
|
(3,837
|
)
|
|||||
Comprehensive income (loss)
|
|
$
|
25,287
|
|
|
$
|
32,764
|
|
|
$
|
(2,183
|
)
|
|
$
|
(30,581
|
)
|
|
$
|
25,287
|
|
|
|
July 2, 2017
|
||||||||||||||||||
(Amounts in thousands)
|
|
Parent Issuer
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
30,596
|
|
|
$
|
22,954
|
|
|
$
|
—
|
|
|
$
|
53,550
|
|
Net receivables
|
|
—
|
|
|
412,794
|
|
|
41,995
|
|
|
—
|
|
|
454,789
|
|
|||||
Due from affiliates, current
|
|
—
|
|
|
1,027
|
|
|
—
|
|
|
(1,027
|
)
|
|
—
|
|
|||||
Net inventories
|
|
—
|
|
|
491,742
|
|
|
55,660
|
|
|
(4,522
|
)
|
|
542,880
|
|
|||||
Income tax receivable
|
|
—
|
|
|
12,991
|
|
|
1,640
|
|
|
3,313
|
|
|
17,944
|
|
|||||
Other current assets
|
|
—
|
|
|
24,038
|
|
|
2,601
|
|
|
—
|
|
|
26,639
|
|
|||||
Total current assets
|
|
—
|
|
|
973,188
|
|
|
124,850
|
|
|
(2,236
|
)
|
|
1,095,802
|
|
|||||
Net property, plant, and equipment
|
|
—
|
|
|
263,280
|
|
|
9,493
|
|
|
—
|
|
|
272,773
|
|
|||||
Investment in subsidiaries
|
|
2,571,297
|
|
|
204,266
|
|
|
—
|
|
|
(2,775,563
|
)
|
|
—
|
|
|||||
Goodwill
|
|
—
|
|
|
749,898
|
|
|
111,216
|
|
|
—
|
|
|
861,114
|
|
|||||
Net intangible assets
|
|
—
|
|
|
668,165
|
|
|
32,674
|
|
|
—
|
|
|
700,839
|
|
|||||
Long-term due from affiliates
|
|
—
|
|
|
235,466
|
|
|
—
|
|
|
(235,466
|
)
|
|
—
|
|
|||||
Deferred charges and other non-current assets
|
|
—
|
|
|
24,869
|
|
|
5,910
|
|
|
—
|
|
|
30,779
|
|
|||||
Total assets
|
|
$
|
2,571,297
|
|
|
$
|
3,119,132
|
|
|
$
|
284,143
|
|
|
$
|
(3,013,265
|
)
|
|
$
|
2,961,307
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of long-term debt
|
|
$
|
32,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,000
|
|
Accounts payable
|
|
—
|
|
|
95,138
|
|
|
6,960
|
|
|
—
|
|
|
102,098
|
|
|||||
Due to affiliates, current
|
|
—
|
|
|
—
|
|
|
1,027
|
|
|
(1,027
|
)
|
|
—
|
|
|||||
Accrued compensation
|
|
—
|
|
|
28,817
|
|
|
2,956
|
|
|
—
|
|
|
31,773
|
|
|||||
Federal excise tax
|
|
—
|
|
|
24,318
|
|
|
1,774
|
|
|
—
|
|
|
26,092
|
|
|||||
Other accrued liabilities
|
|
—
|
|
|
115,921
|
|
|
14,101
|
|
|
—
|
|
|
130,022
|
|
|||||
Total current liabilities
|
|
32,000
|
|
|
264,194
|
|
|
26,818
|
|
|
(1,027
|
)
|
|
321,985
|
|
|||||
Long-term debt
|
|
1,075,175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,075,175
|
|
|||||
Deferred income tax liabilities
|
|
—
|
|
|
150,452
|
|
|
7,336
|
|
|
1,656
|
|
|
159,444
|
|
|||||
Accrued pension and postemployment benefits
|
|
—
|
|
|
62,710
|
|
|
—
|
|
|
—
|
|
|
62,710
|
|
|||||
Long-term due to affiliates
|
|
193,489
|
|
|
—
|
|
|
41,977
|
|
|
(235,466
|
)
|
|
—
|
|
|||||
Other long-term liabilities
|
|
—
|
|
|
69,688
|
|
|
1,672
|
|
|
—
|
|
|
71,360
|
|
|||||
Total liabilities
|
|
1,300,664
|
|
|
547,044
|
|
|
77,803
|
|
|
(234,837
|
)
|
|
1,690,674
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
|
1,270,633
|
|
|
2,572,088
|
|
|
206,340
|
|
|
(2,778,428
|
)
|
|
1,270,633
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
2,571,297
|
|
|
$
|
3,119,132
|
|
|
$
|
284,143
|
|
|
$
|
(3,013,265
|
)
|
|
$
|
2,961,307
|
|
|
|
March 31, 2017
|
||||||||||||||||||
(Amounts in thousands)
|
|
Parent Issuer
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
—
|
|
|
$
|
23,027
|
|
|
$
|
22,048
|
|
|
$
|
—
|
|
|
$
|
45,075
|
|
Net receivables
|
|
—
|
|
|
409,177
|
|
|
41,538
|
|
|
—
|
|
|
450,715
|
|
|||||
Due from affiliates, current
|
|
—
|
|
|
1,787
|
|
|
—
|
|
|
(1,787
|
)
|
|
—
|
|
|||||
Net inventories
|
|
—
|
|
|
510,754
|
|
|
57,050
|
|
|
(5,009
|
)
|
|
562,795
|
|
|||||
Income tax receivable
|
|
—
|
|
|
22,394
|
|
|
1,303
|
|
|
1,961
|
|
|
25,658
|
|
|||||
Other current assets
|
|
—
|
|
|
23,177
|
|
|
2,427
|
|
|
—
|
|
|
25,604
|
|
|||||
Total current assets
|
|
—
|
|
|
990,316
|
|
|
124,366
|
|
|
(4,835
|
)
|
|
1,109,847
|
|
|||||
Net property, plant, and equipment
|
|
—
|
|
|
262,711
|
|
|
9,635
|
|
|
—
|
|
|
272,346
|
|
|||||
Investment in subsidiaries
|
|
2,552,948
|
|
|
196,547
|
|
|
—
|
|
|
(2,749,495
|
)
|
|
—
|
|
|||||
Goodwill
|
|
—
|
|
|
749,898
|
|
|
107,733
|
|
|
—
|
|
|
857,631
|
|
|||||
Net intangible assets
|
|
—
|
|
|
676,576
|
|
|
31,954
|
|
|
—
|
|
|
708,530
|
|
|||||
Long-term due from affiliates
|
|
—
|
|
|
230,669
|
|
|
—
|
|
|
(230,669
|
)
|
|
—
|
|
|||||
Deferred charges and other non-current assets
|
|
—
|
|
|
23,482
|
|
|
4,911
|
|
|
—
|
|
|
28,393
|
|
|||||
Total assets
|
|
$
|
2,552,948
|
|
|
$
|
3,130,199
|
|
|
$
|
278,599
|
|
|
$
|
(2,984,999
|
)
|
|
$
|
2,976,747
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Current portion of long-term debt
|
|
$
|
32,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,000
|
|
Accounts payable
|
|
—
|
|
|
117,650
|
|
|
10,068
|
|
|
—
|
|
|
127,718
|
|
|||||
Due to affiliates, current
|
|
—
|
|
|
—
|
|
|
1,787
|
|
|
(1,787
|
)
|
|
—
|
|
|||||
Accrued compensation
|
|
—
|
|
|
30,173
|
|
|
3,490
|
|
|
—
|
|
|
33,663
|
|
|||||
Federal excise tax
|
|
—
|
|
|
29,042
|
|
|
1,040
|
|
|
—
|
|
|
30,082
|
|
|||||
Other accrued liabilities
|
|
—
|
|
|
110,321
|
|
|
12,605
|
|
|
—
|
|
|
122,926
|
|
|||||
Total current liabilities
|
|
32,000
|
|
|
287,186
|
|
|
28,990
|
|
|
(1,787
|
)
|
|
346,389
|
|
|||||
Long-term debt
|
|
1,089,252
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,089,252
|
|
|||||
Deferred income tax liabilities
|
|
—
|
|
|
153,636
|
|
|
6,979
|
|
|
150
|
|
|
160,765
|
|
|||||
Accrued pension and postemployment benefits
|
|
—
|
|
|
64,230
|
|
|
—
|
|
|
—
|
|
|
64,230
|
|
|||||
Long-term due to affiliates
|
|
186,631
|
|
|
—
|
|
|
44,038
|
|
|
(230,669
|
)
|
|
—
|
|
|||||
Other long-term liabilities
|
|
—
|
|
|
69,384
|
|
|
1,662
|
|
|
—
|
|
|
71,046
|
|
|||||
Total liabilities
|
|
1,307,883
|
|
|
574,436
|
|
|
81,669
|
|
|
(232,306
|
)
|
|
1,731,682
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
|
1,245,065
|
|
|
2,555,763
|
|
|
196,930
|
|
|
(2,752,693
|
)
|
|
1,245,065
|
|
|||||
Total liabilities and stockholders' equity
|
|
$
|
2,552,948
|
|
|
$
|
3,130,199
|
|
|
$
|
278,599
|
|
|
$
|
(2,984,999
|
)
|
|
$
|
2,976,747
|
|
|
|
Quarter ended July 2, 2017
|
||||||||||||||||||
(Amounts in thousands)
|
|
Parent Issuer
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by (used for) operating activities
|
|
$
|
(7,018
|
)
|
|
$
|
40,269
|
|
|
$
|
5,658
|
|
|
$
|
—
|
|
|
$
|
38,909
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
—
|
|
|
(16,248
|
)
|
|
(182
|
)
|
|
—
|
|
|
(16,430
|
)
|
|||||
Due from affiliates
|
|
—
|
|
|
(16,452
|
)
|
|
—
|
|
|
16,452
|
|
|
—
|
|
|||||
Acquisition of businesses, net of cash acquired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Proceeds from the disposition of property, plant, and equipment
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
|||||
Cash provided by (used for) investing activities
|
|
—
|
|
|
(32,700
|
)
|
|
(169
|
)
|
|
16,452
|
|
|
(16,417
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Due to affiliates
|
|
21,525
|
|
|
—
|
|
|
(5,073
|
)
|
|
(16,452
|
)
|
|
—
|
|
|||||
Borrowings on line of credit
|
|
145,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145,000
|
|
|||||
Payments made on line of credit
|
|
(150,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150,000
|
)
|
|||||
Payments made on long-term debt
|
|
(8,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,000
|
)
|
|||||
Payments made for debt issuance costs
|
|
(1,805
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,805
|
)
|
|||||
Proceeds from employee stock compensation plans
|
|
298
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|||||
Cash provided by (used for) financing activities
|
|
7,018
|
|
|
—
|
|
|
(5,073
|
)
|
|
(16,452
|
)
|
|
(14,507
|
)
|
|||||
Effect of foreign exchange rate fluctuations on cash
|
|
—
|
|
|
—
|
|
|
490
|
|
|
—
|
|
|
490
|
|
|||||
Increase in cash and cash equivalents
|
|
—
|
|
|
7,569
|
|
|
906
|
|
|
—
|
|
|
8,475
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
23,027
|
|
|
22,048
|
|
|
—
|
|
|
45,075
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
30,596
|
|
|
$
|
22,954
|
|
|
$
|
—
|
|
|
$
|
53,550
|
|
|
|
Quarter ended July 3, 2016
|
||||||||||||||||||
(Amounts in thousands)
|
|
Parent Issuer
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash provided by (used for) operating activities
|
|
$
|
(5,830
|
)
|
|
$
|
(17,028
|
)
|
|
$
|
700
|
|
|
$
|
—
|
|
|
$
|
(22,158
|
)
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
|
—
|
|
|
(20,179
|
)
|
|
(827
|
)
|
|
—
|
|
|
(21,006
|
)
|
|||||
Due from affiliates
|
|
—
|
|
|
(51,322
|
)
|
|
—
|
|
|
51,322
|
|
|
—
|
|
|||||
Acquisition of businesses, net of cash acquired
|
|
(409,558
|
)
|
|
3,228
|
|
|
387
|
|
|
—
|
|
|
(405,943
|
)
|
|||||
Proceeds from the disposition of property, plant, and equipment
|
|
—
|
|
|
22
|
|
|
12
|
|
|
—
|
|
|
34
|
|
|||||
Cash used for investing activities
|
|
(409,558
|
)
|
|
(68,251
|
)
|
|
(428
|
)
|
|
51,322
|
|
|
(426,915
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Due to affiliates
|
|
51,606
|
|
|
—
|
|
|
(284
|
)
|
|
(51,322
|
)
|
|
—
|
|
|||||
Borrowings on line of credit
|
|
115,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115,000
|
|
|||||
Payments made on line of credit
|
|
(25,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,000
|
)
|
|||||
Proceeds from issuance of long-term debt
|
|
307,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
307,500
|
|
|||||
Payments made on long-term debt
|
|
(8,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,000
|
)
|
|||||
Payments made for debt issuance costs
|
|
(3,660
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,660
|
)
|
|||||
Purchase of treasury shares
|
|
(22,058
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,058
|
)
|
|||||
Cash provided by (used for) financing activities
|
|
415,388
|
|
|
—
|
|
|
(284
|
)
|
|
(51,322
|
)
|
|
363,782
|
|
|||||
Effect of foreign exchange rate fluctuations on cash
|
|
—
|
|
|
—
|
|
|
(401
|
)
|
|
—
|
|
|
(401
|
)
|
|||||
(Decrease) increase in cash and cash equivalents
|
|
—
|
|
|
(85,279
|
)
|
|
(413
|
)
|
|
—
|
|
|
(85,692
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
133,503
|
|
|
18,189
|
|
|
—
|
|
|
151,692
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
48,224
|
|
|
$
|
17,776
|
|
|
$
|
—
|
|
|
$
|
66,000
|
|
•
|
Outdoor Products, which generated
51%
of our external sales in the
quarter ended
July 2, 2017
. The Outdoor Products product lines are action sports, archery/hunting accessories, camping, global eyewear and sport protection products, golf, hydration products, optics, shooting accessories, tactical products and water sports. Action sports includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Archery/hunting accessories include high-performance hunting arrows, game calls, hunting blinds, game cameras and waterfowl decoys. Camping products include our outdoor cooking solutions. Eyewear and sport protection products include safety and protective eyewear, as well as fashion and sports eyewear. Golf products include laser rangefinders. Hydration products include hydration packs and water bottles. Optics products include binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, and premium gun care products. Tactical products include holsters, duty gear, bags and packs. Water sports products include stand up paddle boards.
|
•
|
Shooting Sports, which generated
49%
of our external sales in the
quarter ended
July 2, 2017
. Shooting Sports product lines include centerfire ammunition, rimfire ammunition, shotshell ammunition, reloading components, and firearms.
|
|
|
Quarter ended
|
||||||
|
|
July 2, 2017
|
|
July 3, 2016
|
||||
Sales to external customers:
|
|
|
|
|
||||
Outdoor Products
|
|
$
|
289,983
|
|
|
$
|
287,465
|
|
Shooting Sports
|
|
278,766
|
|
|
342,804
|
|
||
Total sales to external customers
|
|
$
|
568,749
|
|
|
$
|
630,269
|
|
|
|
|
|
|
||||
Gross Profit
|
|
|
|
|
||||
Outdoor Products
|
|
$
|
76,510
|
|
|
$
|
80,897
|
|
Shooting Sports
|
|
70,318
|
|
|
90,834
|
|
||
Corporate
|
|
(270
|
)
|
|
(354
|
)
|
||
Total gross profit
|
|
$
|
146,558
|
|
|
$
|
171,377
|
|
•
|
general economic and business conditions in the United States and our other markets, including employment levels, consumer confidence and spending, the 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;
|
•
|
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;
|
•
|
reductions, unexpected changes in or our inability to accurately forecast demand for ammunition, firearms or other outdoor sports and recreation products;
|
•
|
risks associated with our sales to significant 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 compliance and diversification into international and commercial markets;
|
•
|
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 firearms and ammunition regulations;
|
•
|
our ability to execute our long-term growth strategy, including our ability to complete and realize expected benefits from acquisitions and integrate acquired businesses;
|
•
|
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;
|
•
|
changes to accounting standards or policies; and
|
•
|
changes in tax rules or pronouncements.
|
•
|
Outdoor Products, which generated
51%
of our external sales in the
quarter ended
July 2, 2017
. The Outdoor Products product lines are action sports, archery/hunting accessories, camping, global eyewear and sport protection products, golf, hydration products, optics, shooting accessories, tactical products and water sports. Action sports includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Archery/hunting accessories include high-performance hunting arrows, game calls, hunting blinds, game cameras and waterfowl decoys. Camping products include our outdoor cooking solutions. Eyewear and sport protection products include safety and protective eyewear, as well as fashion and sports eyewear. Golf products include laser rangefinders. Hydration products include hydration packs and water bottles. Optics products include binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, and premium gun care products. Tactical products include holsters, duty gear, bags and packs. Water sports products include stand up paddle boards.
|
•
|
Shooting Sports, which generated
49%
of our external sales in the
quarter ended
July 2, 2017
. Shooting Sports product lines include centerfire ammunition, rimfire ammunition, shotshell ammunition, reloading components, and firearms.
|
•
|
In June 2017, we announced changes to our qualified and non-qualified defined benefit pension plans. As a result of the changes, we recognized a one-time gain of
$5,783
during the
quarter ended July 2, 2017
. See Note 11
Employee Benefit Plans
for additional information.
|
•
|
Quarterly sales were
$568,749
and
$630,269
for the quarters ended
July 2, 2017
and
July 3, 2016
, respectively. The decrease in sales was driven principally by a decrease of
$64,038
in the Shooting Sports segment for the reasons described below. A challenging retail market drove a decrease in organic sales in the Outdoor Products segment that was offset by an increase of $21,112 due to the acquisition of Camp Chef.
|
•
|
Gross profit was
$146,558
and
$171,377
for the quarters ended
July 2, 2017
and
July 3, 2016
, respectively. Gross profit decreased in the current quarter for both segments as a result of lower sales volume, additional sales incentives and unfavorable mix.
|
•
|
The current quarter's tax rate of
38.2%
was consistent with the tax rate of
38.2%
in the
quarter ended
July 3, 2016
. There was no change in the rate from the prior year quarter because of nondeductible acquisition costs in the prior year being offset by lower deductions in the current year related to stock based compensation.
|
•
|
On May 9, 2017, we entered into an agreement to amend the Credit Agreement (the "Amendment"), which increased our maximum consolidated leverage ratio (as defined in the Credit Agreement) to 4.75 to 1.00, which will step down to 4.25 to 1.00 as of March 31, 2019, and to 4.00 to 1.00 as of March 31, 2020, as well as added a maximum senior consolidated leverage ratio (as defined in the Credit Agreement) of 3.50 to 1.00, which will step down to 3.00 as of March 31, 2019. The Credit Agreement provides that borrowings shall bear interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.50% to 1.50%, or the sum of a Eurodollar rate plus a margin ranging from 1.50% to 2.50%, with either margin varying depending on our consolidated leverage ratio. Debt issuance costs related to the Amendment of approximately $1,800 will be amortized over the remaining term of the Credit Agreement.
|
•
|
In May 2017, we signed a long-term agreement with Orbital ATK for the supply of ammunition products produced at the Lake City Army Ammunition Plant through September 2020.
|
•
|
revenue recognition,
|
•
|
allowance for doubtful accounts,
|
•
|
inventories,
|
•
|
income taxes,
|
•
|
acquisitions, and
|
•
|
accounting for goodwill and indefinite lived intangibles.
|
•
|
Camp Chef
—On September 1, 2016, we completed the acquisition of privately owned Logan Outdoor Products, LLC and Peak Trades, LLC ("Camp Chef"), a leading provider of outdoor cooking solutions. Under the terms of the transaction, we paid $60,000, subject to customary working capital adjustments, utilizing cash on hand and borrowings under our existing credit facility. An additional $4,000 has been deferred and will be paid in equal installments on the first, second and third anniversary of the closing date and $10,000 will be payable if incremental profitability growth milestones are met and key members of Camp Chef management continue their employment with us. The $10,000 will be expensed over the measurement period and paid at each milestone date.
|
•
|
Action Sports
—On April 1, 2016, we completed the acquisition of BRG Sports Inc.’s Action Sports division, operated by Bell Sports Corp. ("Action Sports"). The acquisition includes brands Bell, Giro, Blackburn, CoPilot, Krash, and Raskullz. Under the terms of the transaction, we paid
$400,000
, subject to customary working capital adjustments, utilizing cash on hand and borrowings under our existing credit facilities, and additional contingent consideration payable if incremental profitability growth milestones within the Bell Powersports product line are achieved. We determined a value of the future contingent consideration as of the acquisition date of
$4,272
utilizing the Black Scholes option pricing model; the total amount paid may differ from this value. Action Sports remains headquartered in Scotts Valley, California and operates facilities in the U.S., Canada, Europe and Asia. The acquisition of Action Sports added more than
600
employees worldwide.
|
|
Quarter ended
|
|||||||||||||
|
July 2, 2017
|
|
July 3, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Outdoor Products
|
$
|
289,983
|
|
|
$
|
287,465
|
|
|
$
|
2,518
|
|
|
0.9
|
%
|
Shooting Sports
|
278,766
|
|
|
342,804
|
|
|
(64,038
|
)
|
|
(18.7
|
)%
|
|||
Total external sales
|
$
|
568,749
|
|
|
$
|
630,269
|
|
|
$
|
(61,520
|
)
|
|
(9.8
|
)%
|
|
Quarter ended
|
|||||||||||||
Cost of sales
|
July 2, 2017
|
|
July 3, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Outdoor Products
|
$
|
213,473
|
|
|
$
|
206,568
|
|
|
$
|
6,905
|
|
|
3.3
|
%
|
Shooting Sports
|
208,448
|
|
|
251,970
|
|
|
(43,522
|
)
|
|
(17.3
|
)%
|
|||
Corporate
|
270
|
|
|
354
|
|
|
(84
|
)
|
|
(23.7
|
)%
|
|||
Total cost of sales
|
$
|
422,191
|
|
|
$
|
458,892
|
|
|
$
|
(36,701
|
)
|
|
(8.0
|
)%
|
|
Quarter ended
|
|||||||||||||
Gross profit
|
July 2, 2017
|
|
July 3, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Outdoor Products
|
$
|
76,510
|
|
|
$
|
80,897
|
|
|
$
|
(4,387
|
)
|
|
(5.4
|
)%
|
Shooting Sports
|
70,318
|
|
|
90,834
|
|
|
(20,516
|
)
|
|
(22.6
|
)%
|
|||
Corporate
|
(270
|
)
|
|
(354
|
)
|
|
84
|
|
|
(23.7
|
)%
|
|||
Total gross profit
|
$
|
146,558
|
|
|
$
|
171,377
|
|
|
$
|
(24,819
|
)
|
|
(14.5
|
)%
|
|
Quarter ended
|
||||||||||||||||
|
July 2, 2017
|
|
As a %
of Sales |
|
July 3, 2016
|
|
As a %
of Sales |
|
$ Change
|
||||||||
Research and development
|
$
|
7,791
|
|
|
1.4
|
%
|
|
$
|
7,831
|
|
|
1.2
|
%
|
|
$
|
(40
|
)
|
Selling, general, and administrative
|
99,426
|
|
|
17.5
|
%
|
|
104,444
|
|
|
16.6
|
%
|
|
(5,018
|
)
|
|||
Total operating expenses
|
$
|
107,217
|
|
|
18.9
|
%
|
|
$
|
112,275
|
|
|
17.8
|
%
|
|
$
|
(5,058
|
)
|
|
Quarter ended
|
|||||||||||||
|
July 2, 2017
|
|
July 3, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Interest Expense
|
$
|
12,393
|
|
|
$
|
11,963
|
|
|
$
|
430
|
|
|
3.6
|
%
|
|
Quarter ended
|
||||||||||||||||
|
July 2, 2017
|
|
Effective
Rate |
|
July 3, 2016
|
|
Effective
Rate |
|
$ Change
|
||||||||
Income taxes
|
$
|
10,296
|
|
|
38.2
|
%
|
|
$
|
18,015
|
|
|
38.2
|
%
|
|
$
|
(7,719
|
)
|
|
July 2, 2017
|
|
July 3, 2016
|
||||
Cash provided by (used for) operating activities
|
$
|
38,909
|
|
|
$
|
(22,158
|
)
|
Cash used for investing activities
|
(16,417
|
)
|
|
(426,915
|
)
|
||
Cash provided by (used for) financing activities
|
(14,507
|
)
|
|
363,782
|
|
||
Effect of foreign exchange rate fluctuations on cash
|
490
|
|
|
(401
|
)
|
||
Net cash flows
|
$
|
8,475
|
|
|
$
|
(85,692
|
)
|
|
July 2, 2017
|
||
Credit Agreement:
|
|
||
Term Loan
|
$
|
600,000
|
|
Revolving Credit Facility
|
170,000
|
|
|
Total principal amount of Credit Agreement
|
770,000
|
|
|
5.875% Senior Notes
|
350,000
|
|
|
Principal amount of long-term debt
|
1,120,000
|
|
|
Less: Unamortized deferred financing costs
|
(12,825
|
)
|
|
Carrying amount of long-term debt
|
1,107,175
|
|
|
Less: current portion
|
(32,000
|
)
|
|
Carrying amount of long-term debt, excluding current portion
|
$
|
1,075,175
|
|
Exhibit
Number
|
|
Description of Exhibit (and document from which incorporated by reference, if applicable)
|
2.1*
|
|
Transaction Agreement, dated as of April 28, 2014, among Alliant Techsystems Inc., Vista SpinCo Inc., Vista Merger Sub Inc. and Orbital Sciences Corporation (Exhibit 2.1 to Vista Outdoor Inc.’s Registration Statement on Form 10, filed with the Securities and Exchange Commission on August 13, 2014).
|
2.2*+
|
|
Transition Services Agreement, dated as of February 9, 2015, among Alliant Techsystems Inc. and Vista Outdoor Inc. (Exhibit 2.2 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 10, 2014).
|
2.3*+
|
|
Ammunition Products Supply Agreement, dated as of February 9, 2015, among Alliant Techsystems Operations LLC and Federal Cartridge Company (Exhibit 2.3 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 10, 2014).
|
2.4*+
|
|
Powder Products Supply Agreement, dated as of February 9, 2015, among Alliant Techsystems Operations LLC and Federal Cartridge Company (Exhibit 2.4 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 10, 2014).
|
2.5*+
|
|
Tax Matters Agreement, dated as of February 9, 2015, among Alliant Techsystems Inc. and Vista Outdoor Inc. (Exhibit 2.5 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 10, 2014).
|
3.1*
|
|
Amended and Restated Certificate of Incorporation of Vista Outdoor Inc. (Exhibit 3.1 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 10, 2014).
|
3.2*
|
|
Amended and Restated Bylaws of Vista Outdoor Inc. (Exhibit 3.2 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 10, 2014).
|
4.1*
|
|
Specimen Common Stock Certificate of Vista Outdoor Inc. (Exhibit 4.1 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on February 10, 2014).
|
4.2*
|
|
Indenture, dated as of August 11, 2015, among Vista Outdoor Inc., the subsidiaries of Vista Outdoor Inc. party thereto and U.S. Bank National Association, as trustee (Exhibit 4.1 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 11, 2015).
|
4.3*
|
|
Supplemental Indenture, dated as of August 11, 2015, among Vista Outdoor Inc., the subsidiaries of Vista Outdoor Inc. party thereto and U.S. Bank National Association, as trustee (Exhibit 4.2 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 11, 2015).
|
4.4*
|
|
Form of 5.875% Senior Note due 2023 (Exhibit 4.3 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 11, 2015).
|
4.5*
|
|
Second Supplemental Indenture, dated as of August 9, 2016, among Vista Outdoor Inc., the subsidiaries of Vista Outdoor Inc. party thereto and U.S. Bank National Association, as trustee (Exhibit 4.3 to Vista Outdoor Inc.’s Registration Statement on Form S-4, filed with the Securities and Exchange Commission on August 11, 2016).
|
4.6*
|
|
Third Supplemental Indenture, dated as of December 2, 2016, among Vista Outdoor Inc., the subsidiaries of Vista Outdoor Inc. party thereto and U.S. Bank National Association, as trustee (Exhibit 4.6 to Vista Outdoor Inc.’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on February 9, 2017).
|
10.1*
|
|
Vista Outdoor Inc. Amended and Restated Credit Agreement, dated as of May 9, 2017 among Vista Outdoor Inc., Bank of America, N.A. and the Lenders party thereto (Exhibit 10.1 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 11, 2017).
|
10.2
†
|
|
|
10.3
†
|
|
|
10.4
†
|
|
|
10.5*
|
|
Waiver and General Release Agreement, dated as of July 10, 2017 between Vista Outdoor Inc. and Mark W. DeYoung (Exhibit 10.1 to Vista Outdoor Inc.’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on July 10, 2017).
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
VISTA OUTDOOR INC.
|
||||
Date:
|
August 10, 2017
|
|
By:
|
|
/s/ Stephen M. Nolan
|
||
|
|
|
|
|
Name:
|
|
Stephen M. Nolan
|
|
|
|
|
|
Title:
|
|
Senior Vice President and Chief Financial Officer
|
|
|
|
|
|
|
|
(On behalf of the Registrant and as principal financial officer)
|
|
|
|
|
|
|
|
|
•
|
The first sentence of Paragraph 5(a) (pricing of Ammunition Products);
|
•
|
Paragraph 11 (BDSC);
|
•
|
The second sentence of Paragraph 16(a) (auto renewal);
|
•
|
The AFY column in Exhibit D (VFY18 Pricing); and
|
•
|
Exhibit F (“fee split”).
|
•
|
No adjustment shall be made for the price of steel.
|
•
|
The base copper price shall be $*** per pound.
|
•
|
The base zinc price shall be $*** per pound.
|
•
|
The base lead price shall be $*** per pound.
|
•
|
The market price shall be measured using the following per pound market price as of close of business on the business day immediately preceding the date the Additional Order is placed:
|
•
|
Copper – Copper High Grade (Globex) (COMEX) Prior Day Set
|
•
|
Zinc – LME Zinc Cash Official Price Buyer
|
•
|
Lead – LME Lead Cash Official Buyer
|
Federal Cartridge Company
|
|
Alliant Techsystems Operations LLC
|
|
|
|
/s/ Stephen M. Nolan
|
|
/s/ Dean L. Grayson
|
|
|
|
By: Stephen M. Nolan
|
|
By: Dean L. Grayson
|
Title: Chief Financial Officer
|
|
Title: General Counsel, Defense Systems Group
|
|
|
|
Date: May 5, 2017
|
|
Date: May 5, 2017
|
Product Type
|
|
***
|
***
|
$***
|
$***
|
Available Packing Configurations
|
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
BFYO18 VISTA COMPONENT PRICE LIST
|
|
5.56 Product Components
|
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
|
|
7.62mm Product Components
|
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
|
|
Cal50 Product Components
|
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
***
|
$***
|
Federal Cartridge Company
|
|
Alliant Techsystems Operations LLC
|
|
|
|
/s/ Jeffrey A. Ehrich
|
|
/s/ Dean L. Grayson
|
|
|
|
By: Jeffrey A. Ehrich
|
|
By: Dean L. Grayson
|
Title: Associate General Counsel
|
|
Title: General Counsel, Defense Systems Group
|
|
|
|
Date: May 18, 2017
|
|
Date: May 18, 2017
|
1.
|
Definitions.
|
(a)
|
“Products” means the following completed cartridges of small-caliber ammunition manufactured to the Specifications: *** 5.56x45mm caliber, *** .223 caliber, and *** 5.56x45mm caliber.
|
(b)
|
“DoD” means the U.S. Army, its contractors in support of a DPAS rated DoD contract, and any other U.S. Federal Governmental agency that may in the future replace the U.S. Army as the procurer of Products for and on behalf of the U.S. Department of Defense.
|
(c)
|
“Lake City Government Contract” means, collectively, the contracts between Alliant Techsystems Operations LLC and Rock Island Contracting Center, dated September 28, 2012 and dated November 27, 2013, as the same may be amended from time to time.
|
(d)
|
“Intellectual Property,” means (i) discoveries, improvements, inventions (whether or not capable of being patented); (ii) patents, patent applications, patent disclosures, and any other patentable subject matter; (iii) copyrights, applications to register copyrights, works of authorship and any other copyrightable works; (iv) computer software (including source code, executable code, databases, data and related documentation); (v) trade secrets, Proprietary Information and know-how; and (vi) all improvements or modifications to any of the foregoing.
|
(e)
|
“Non-Standard Packing Options” means any packing configuration or requirements not specifically included in the definition of Standard Packing Options, which Orbital ATK may offer from time to time at the price and availability determined by Orbital ATK.
|
(f)
|
“Rounds” means individual complete ammunition cartridges.
|
(g)
|
“Period 1” means February 10, 2018 to December 31, 2018.
|
(h)
|
“Period 2” means January 1, 2019 to December 31, 2019.
|
(i)
|
“Period 3” means January 1, 2020 to September 30, 2020.
|
(j)
|
“Quarter” means the sequential three-month period beginning January, April, July, or October.
|
(k)
|
“Specifications” means using new (i.e., not recycled from a previously assembled cartridge) materials to manufacture the Products to the applicable Mil-Spec safety and dimensional requirements and such other specifications as may be agreed between the Parties in writing.
|
(l)
|
“Standard Packing Options” means the Pack Configurations listed in Exhibit A using graphics, artwork and labeling as specified by Federal and agreed to by Orbital ATK.
|
2.
|
General Obligations.
|
(a)
|
Federal Obligations.
During the Term, Federal shall: (i) achieve the Minimum Order Commitment specified in Exhibit A; (ii) pay the Commercial Fee as specified in Exhibit A to Orbital ATK on or before October 1 of Period 1 and 2 and July 1 of Period 3; and (iii) not purchase Products from anyone other than Orbital ATK unless Federal orders the full Capacity for that Period.
|
(b)
|
Orbital ATK Obligations
. Orbital ATK shall: (i) accept Federal’s Binding Order, plus any Additional Orders of Products; (ii) manufacture, pack, and deliver Products in accordance with the accepted Binding Order and Additional Orders; (iii) give Federal’s orders priority, up to ***, over all customers other than the DoD; (iv) comply with the Guarantee specified in Exhibit A; and (v) give Federal’s Binding Order priority over all customers other than the DoD in the event the DoD orders *** Rounds of Product for delivery in any one Period. Notwithstanding the foregoing, Orbital ATK shall have no obligation to accept orders or fulfill deliveries to the extent they: (x) interfere with a Product delivery commitment to the DoD; or (y) are impacted or delayed by a Force Majeure Event (collectively, “Limitations”).
|
3.
|
Ordering.
|
(a)
|
Annual Capacity Allocation
. No later than October 1 before the start of each Period, Orbital ATK shall deliver to Federal a good-faith forecast of the total quantity of Product manufacturing capacity Orbital ATK will allocate to Federal each month during the upcoming Period (“Capacity”). The Capacity shall be a minimum of *** Rounds per month and *** total Rounds per Period for Periods 1 and 2, and *** Rounds per month and *** total Rounds for Period 3, except as may be adjusted at any time by Limitations. For the avoidance of doubt, the Capacity shall not be limited or broken out by Product Type.
|
(b)
|
Annual Binding Order
. No later than November 15 before each Period, Federal shall deliver to Orbital ATK a binding order for the upcoming Period specifying (within the Capacity and subject to the Limitations):
|
(i)
|
The binding total quantity commitment during the Period;
|
(ii)
|
The binding total quantity commitment by month for the upcoming two Quarters of the Period;
|
(iii)
|
The binding (subject to the Scheduling) quantity commitment by Product Type for the upcoming two Quarters of the Period; and
|
(iv)
|
A nonbinding, proposed monthly delivery schedule by Pack Type for the upcoming two Quarters of the Period (
i.e
., SKU-level detail).
|
(c)
|
***
|
(d)
|
***
|
(e)
|
Monthly Scheduling.
Beginning January 16, 2018, and on the third Tuesday of each month thereafter, Federal and Orbital ATK shall meet in good faith and mutually agree on a delivery schedule by Pack Type for the upcoming month, taking into consideration Orbital ATK’s capacity thresholds and packing capacity, and Federal’s customer orders and market projections, as well as all other relevant factors (“Scheduling”). Before or during the Scheduling, Federal may also adjust the Product Type mix 20% within any Product Type so long as (i) the total quantity commitment for that month does not decrease; (ii) the adjustments are within the Capacity; and (iii) Orbital ATK has the materials to accommodate the adjustment. Upon finalization of the Scheduling, it shall be binding on both Parties except by mutual agreement.
|
(f)
|
Unless expressly stated, the above restrictions and those in the Guarantee on sales and pricing to the Secondary Tier I Customer shall not apply to sales and pricing to Tier 2 and other customers.
|
4.
|
Price.
|
(a)
|
Price.
The base price for Products sold during the Term shall be the firm, fixed prices set forth in Exhibit A (“Base Product Price”), adjusted (if at all) once each Period according to the Metals Adjustment set forth in Exhibit B (“Product Price”). The price for packing of Product sold during the Term shall be as set forth in Exhibit A (“Pack Price”). Prices exclude all: (i) federal, state local and value-added taxes, firearms excise taxes, sales and use taxes or other indirect taxes that may be imposed by law, (ii) freight, insurance, and other shipping costs, and (iii) import and export licenses, fees, permits, custom charges and duties, all of which shall be invoiced by Orbital ATK and paid separately by Federal unless Federal provides Orbital ATK with documentation supporting an exemption.
|
(b)
|
Adjustment Methodology
.
|
(i)
|
Metals
. The Metals Adjustment shall be calculated and applied separately for all Products ordered for delivery during each Period using the business day immediately preceding the date Federal releases the Binding Order as the measuring date (“Measuring Date”). The Product Price will apply to all Binding Orders and Additional Orders for Products ordered for delivery during the entire applicable Period.
|
(ii)
|
***
|
(c)
|
Acknowledgment.
Subject to the Audit Right for the ASP, the Parties acknowledge and agree that the pricing herein (including without limitation the Product Price, Pack Price, Base Price, Commercial Fee, Metals Adjustment, and ***, and the formulas and inputs supporting each) were the result of arms-length negotiations, and that neither Party has relied upon the other for representations made supporting or relating thereto, including without limitation costs, profits or fees, revenue, sales price or overhead, and each Party assumes the risk of any past or current pricing errors (other than scrivener’s errors or typos) or mistakes related thereto. For the avoidance of doubt, unless specified in this Agreement, no other adjustments to the Product Price, Pack Price, or Commercial Fee shall be made unless through the Dispute Resolution process due to scrivener’s errors or future errors or mistakes.
|
5.
|
Delivery; Acceptance.
|
(a)
|
Delivery shall be FOB Origin, with risk of loss and title transferring at delivery to Orbital ATK’s dock (“Delivery”).
|
(b)
|
Federal shall have the right, but not the obligation, to inspect Products that have been Delivered to it for conformance with the applicable Specifications, and it shall report in writing any claims of non-conformance within thirty (30) calendar days after Delivery, after which time the Products shall be deemed irrevocably accepted (“Acceptance”). After Acceptance, any claims by Federal that a Product fails to conform to the applicable Specification or has a defect shall be governed by the Warranty and/or Indemnification sections, as applicable. No inspection, Acceptance, testing or payment by Federal for Products shall relieve Orbital ATK from responsibility for failing to satisfy its obligations (including the limited warranty) under this Agreement.
|
6.
|
Failure to Supply.
|
(a)
|
Notifications; Delays
. If Orbital ATK becomes aware that for any reason there is a reasonable likelihood that it will not be able to fulfill an Order, Orbital ATK shall promptly, and in any event within 10 business days, notify Federal of such fact and the Parties shall cooperate in good faith to resolve and mitigate the issue. If Orbital ATK fails to timely deliver all or any portion of a Binding Order or Additional Order (“Unfilled Quantity”) as a result of the Limitations (“Excusable Delay”), Orbital ATK shall have no liability to Federal for the Unfilled Quantity. Unfilled Quantities for any reason other than an Excusable Delay shall be considered an Inexcusable Delay. For all Unfilled Quantities (whether due to Excusable Delay or Inexcusable Delay), for which Orbital ATK fails to remedy within 60 calendar days Federal may, subject to the Limitations and without prejudice to any remedies it has under the law, elect to shift the Unfilled Quantity to Orbital ATK’s future unfilled Additional Rounds or remove such Unfilled Quantities from its order(s) without reducing Federal’s progress toward the Minimum Order Commitment.
|
(b)
|
Force Majeure
. Neither party will be liable for any delay or failure in performance to the extent the delay, or failure, is caused by events beyond the party’s reasonable control, without the fault or negligence of the party affected, and which by the exercise of reasonable diligence the party affected was unable to prevent (“Force Majeure Event”), including without limitation, fire, storm, flood, other natural catastrophes, explosion, accidents, acts of public enemy, sabotage, strikes, labor disputes, labor shortages, work stoppages, transportation embargoes or delays, failure or shortage of materials or machinery used by Orbital ATK in
|
7.
|
Invoicing; Payment.
|
(a)
|
Invoices.
Orbital ATK shall provide an invoice to Federal at the time of each product delivery (including, for the avoidance of doubt, at the time of any “staged” delivery) (“Invoice”). All Invoices shall be payable by Federal promptly, and in any event, *** after receipt of such Invoice (the date on which a payment is due, the “Invoice Due Date”), subject to Federal’s right to dispute an Invoice pursuant to paragraph (c) below.
|
(b)
|
Late Payments.
Any amounts due under an Invoice that have not been paid on or before the Invoice Due Date (and are not being disputed in good faith pursuant to paragraph (c) below) shall bear simple interest at a rate of 1.0% per month (i.e., 12.0% per year) until the date payment is received in full by Orbital ATK.
|
(c)
|
Review of Invoices.
Federal shall have 15 calendar days from the date of receipt to review an Invoice (the “Review Period”). Federal may, on or prior to the last day of the Review Period, provide Orbital ATK with a written notice of dispute (a “Dispute Notice”), which shall specify in reasonable detail those items or amounts in the Invoice as to which Federal disagrees in good faith (the “Disputed Items”) and the basis for such disagreement. Unless Federal delivers a Dispute Notice to Orbital ATK prior to the expiration of the Review Period, subject to the second sentence of Paragraph 4(c) Federal shall be deemed to have accepted and agreed to the items and amounts set forth in the applicable Invoice, and such amounts shall become conclusive and binding on the Parties. If Federal delivers a Dispute Notice to Orbital ATK on or prior to the last day of the Review Period, the Parties shall refer the matter to their respective Principal Representatives in accordance with the procedures set forth in Section 14 of this Agreement.
|
8.
|
Warranty.
|
(a)
|
Orbital ATK warrants that, for a period of 12 months after Acceptance, the Products delivered under this Agreement shall conform to applicable Specifications, and be free from defects in material and workmanship (“Limited Warranty”).
|
(b)
|
In the event of a breach of the Limited Warranty, Orbital ATK shall, at its expense and option, repair or replace the Product to achieve conformance and return the Product to Federal. In the event that a Federal customer cancels an order as a direct result of a breach of this Limited Warranty, or if Orbital ATK reasonably deems the above remedies to be commercially impracticable, Orbital ATK shall refund to Federal the applicable Price and shipping and handling costs upon return of the non-conforming Product.
|
(c)
|
As a condition of this Warranty, Federal shall notify Orbital ATK in writing of any claimed nonconformance promptly but not greater than 60 calendar days upon Federal’s discovery or 30 days after the warranty period, whichever is shorter, and, at Orbital ATK’s election, shall provide Orbital ATK a reasonable opportunity to inspect the claimed nonconformance and/or return the item(s) to Orbital ATK for inspection.
|
(d)
|
If the Parties disagree as to whether a rejected Product has a defect or conforms to the applicable Specifications or as to whether Federal timely delivered its warranty claim, the Parties shall refer the matter to their respective Principal Representatives in accordance with the procedures set forth in Section 14 of this Agreement. If the Principal Representatives or a competent court, as applicable, determines that a rejected Product has no defects and conforms to the applicable Specifications, or that Federal has failed to timely deliver the applicable warranty claim, then Federal shall reimburse Orbital ATK all costs of handling, transportation and repairs/modifications to such rejected Product based on Orbital ATK’s regular repair charges.
|
(e)
|
Disclaimer of All Other Warranties.
Orbital ATK’s warranty in paragraph (a) above is in lieu of all other warranties, and Orbital ATK expressly disclaims all other warranties, express or implied, statutory or otherwise, including without limitation, the implied warranties of merchantability and fitness for a particular purpose. Orbital ATK’s warranty does not extend to (i) Products damaged in any way after delivery to Orbital ATK’s dock, including by improper handling, use or storage or as a result of a Force Majeure Event or (ii) components provided by Federal or Products damaged as a result of any defects in such components. Any repair or attempt to repair Products, or modification of Products, by anyone other than Orbital ATK (or a person acting for or on behalf of Orbital ATK) shall void the warranty provided under this Agreement.
|
9.
|
Term; Termination.
|
(a)
|
The date September 30, 2020 (the “Term”);
|
(b)
|
Upon written notice by either Party, if the other Party materially breaches this Agreement;
provided
, that the Party receiving the notice of termination shall have 60 calendar days from the date of receipt thereof to cure the material breach or failure and, in the event such breach or failure is cured, the notice shall be of no effect;
|
(c)
|
Upon 10 calendar days written notice by Orbital ATK, if Federal has failed to pay an amount due under an Invoice that is not being disputed by Federal in good faith, and such failure continues for a period of 20 calendar days following the Invoice due date;
|
(d)
|
Mutual consent of the Parties in writing; or
|
(e)
|
The insolvency, bankruptcy or reorganization under bankruptcy laws or assignment for the benefit of the creditors of either Party.
|
10.
|
Intellectual Property.
|
(a)
|
Limited License
. Each Party hereby grants to the other Party a limited, non-transferable (with the right to sublicense), non-exclusive, royalty-free license to use the Intellectual Property owned by it to the extent necessary for the other Party to perform their obligations hereunder. All right, title and interest in and to the Intellectual Property owned by a Party and not expressly granted herein are reserved by such Party.
|
(b)
|
Ownership
. Subject to the rights of the U.S. Government, as between the Parties, each Party shall retain ownership of all right, title and interest in and to the Intellectual Property owned, controlled, acquired, conceived or reduced to practice prior to the date of this Agreement, including but not limited to, inventions described and claimed in applications for U.S. Letters Patent filed prior to the date of this Agreement.
|
(c)
|
Design Responsibility and Labeling.
Orbital ATK shall retain design responsibility for all Products. Federal shall provide information associated with the appearance and text of any labeling and packaging used in connection with Products it has ordered, including any finished product containing the Product.
|
11.
|
Indemnification.
|
14.
|
Disputes.
|
(a)
|
Each Party shall designate a senior executive with authority to resolve disputes related to this Agreement (a “
Principal Representative
”), and the name of such Principal Representative shall be provided in writing to the other Party promptly following the date hereof. Either Party may, effective upon written notice to the other Party, change its Principal Representative at any time. In the event of a dispute related to this Agreement, the Principal Representatives shall meet and seek in good faith to resolve such dispute. If the Principal Representatives are able to resolve the dispute in writing, their resolution shall be conclusive and binding upon the Parties. If the Principal Representatives are unable in good faith to resolve a dispute within 30 calendar days after receipt of written notice or a longer period agreed by the Parties, either Party may pursue a claim in connection with the matter in dispute in any federal or state court having proper jurisdiction. All costs and expenses incurred by the Parties in connection with resolving any dispute related to this Agreement shall be borne by the Party incurring such cost or expense. In the event of a dispute, both Parties must continue to comply with the terms of this Agreement to the extent not disputed while the dispute is being resolved.
|
(b)
|
Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult issues, and therefore it hereby irrevocably and unconditionally waives,
|
(c)
|
This Agreement, and any dispute arising out of or relating to this Agreement, shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed in and to be performed entirely within that State, regardless of the laws that might otherwise govern under any applicable conflict of laws principles.
|
(d)
|
Disputes shall not be a basis for withholding payment of any undisputed monies due under this Contract or offsetting other undisputed amounts due whether or not the disputed item is on the same order or invoice, nor shall any undisputed amount be retained in anticipation of a dispute for which notice has not been received.
|
If to Federal:
|
|
|
|
|
|
Federal Cartridge Company
|
|
Vista Outdoor Inc.
|
Attn: President
|
-AND-
|
Attn: General Counsel
|
900 Ehlen Drive
|
|
262 North University Drive
|
Anoka, MN 55303
|
|
Farmington, UT 84025
|
|
|
|
If to Orbital ATK:
|
|
|
|
|
|
Alliant Techsystems Operations, LLC
|
|
Orbital ATK, Inc.
|
Attn: Vice President & General Manager
|
-AND-
|
Attn: General Counsel,
|
HWY 7 & 78
|
|
Defense Systems Group
|
Lake City Army Ammunition Plant
|
|
1501 S Clinton St
|
Independence, MO 64056-1000
|
|
Canton Crossing Tower
|
|
|
Baltimore, MD 21224
|
(a)
|
Federal is hereby placed on notice that the technical data or hardware furnished under the Agreement may relate to articles controlled by the U.S. Government for export and may, therefore, be subject to export licensing requirements and limitations on disclosure or shipment to foreign nationals under U.S. Law, including but not limited to, the International Traffic in Arms Regulation, 22 CFR § 120 et seq., the Export
|
(b)
|
A Party receiving technical data under this Agreement agrees not to transfer technical data received or exchanged under this Agreement to any foreign person, or take any other action that is covered by U.S. export control laws and regulations, without specific written authorization from the disclosing party and pursuant to an appropriate U.S. Government agency license or exemption. The party receiving the technical data will indemnify the disclosing party and hold it harmless from any liability resulting from the receiving party’s violation of this provision or applicable export laws or regulations.
|
18.
|
Miscellaneous.
|
Federal Cartridge Company
|
|
Alliant Techsystems Operations LLC
|
|
|
|
/s/ Stephen M. Nolan
|
|
/s/ Dean L. Grayson
|
|
|
|
By: Stephen M. Nolan
|
|
By: Dean L. Grayson
|
Chief Financial Officer
|
|
General Counsel, Defense Systems Group
|
|
|
|
Date: May 5, 2017
|
|
Date: May 5, 2017
|
Period
|
Product Type
|
|
***
|
***
|
|
Period 1
|
$***
|
$***
|
Period 2
|
$***
|
$***
|
Period 3
|
$***
|
$***
|
Pack Configuration
|
Period
|
||
1
|
2
|
3
|
|
***
|
$***
|
$***
|
$***
|
***
|
$***
|
$***
|
$***
|
***
|
$***
|
$***
|
$***
|
***
|
$***
|
$***
|
$***
|
***
|
$***
|
$***
|
$***
|
(a)
|
Each Product shall be subject to a per-unit price adjustment (a “Metals Adjustment”) for lead, copper and zinc.
|
(b)
|
Computation of the Metals Adjustment for each metal shall be in accordance with the Metals Adjustment Calculation Table set forth below. In the event that any of COMEX, LME or the Chicago Market is substantially altered or discontinued, the Parties shall mutually agree upon an appropriate substitute index.
|
(c)
|
For the avoidance of doubt, there shall be no Metals Adjustment for: (A) support services; (B) changes in unit price based on material other than copper, zinc and lead; (C) associated indirect costs (e.g., burden, overhead, and general and administrative costs) or profit; or (D) other cost or profit fluctuations.
|
(d)
|
The Metals Adjustment shall be calculated in conformance with the method used in VFY17.
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
(7)
|
(8)
|
Period
|
Per Round Base Product Price
|
Metal Content Factor
|
Base Metal Price
|
Metal Price
|
Price diff
(5) – (4)
|
Rate of change (%)
(6) / (4)
|
Metals Adjustment
($/unit)
(6) * (3)
|
(a)
|
Column (1) is the Period in respect of which the Metals Adjustment is being calculated.
|
(b)
|
Column (2) is the per-Round Base Product Price applicable to the Product.
|
(c)
|
Column (3) is the Metal Content Factor for the specific Product, as set forth below.
|
(d)
|
Column (4) is the applicable Base Metal Price as set forth below.
|
(e)
|
Column (5) is the following per pound market price as of close of business on the Measuring Date:
|
•
|
Copper – Copper High Grade (Globex) (COMEX) Prior Day Set
|
•
|
Zinc – LME Zinc Cash Official Price Buyer
|
•
|
Lead – LME Lead Cash Official Buyer
|
(f)
|
The remaining columns are for calculation of the per-unit Metals Adjustment for a given Product.
|
Product Type
|
Copper
|
Zinc
|
Lead
|
*** Ctg
|
***
|
***
|
***
|
*** Ctg
|
***
|
***
|
***
|
*** Ctg
|
***
|
***
|
***
|
•
|
The Base Metal Price for copper is $*** per pound.
|
•
|
The Base Metal Price for zinc is $*** per pound.
|
•
|
The Base Metal Price for lead is $*** per pound.
|
|
Federal Cartridge Company
|
|
Alliant Techsystems Operations LLC
|
|
|
|
|
By:
|
/s/ Susan M. Humiston
|
By:
|
/s/ Kent Holiday
|
|
|
|
|
|
Susan M. Humiston
|
|
Kent Holiday
|
|
[PRINTED NAME]
|
|
[PRINTED NAME]
|
|
|
|
|
Title:
|
VP & Asst. General Counsel
|
Title:
|
Vice President and General Manager
|
|
|
|
|
Date:
|
4/21/2015
|
Date:
|
April 20, 2015
|
I, Michael Callahan, 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 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;
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c)
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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
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d)
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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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer 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):
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a)
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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
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b)
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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.
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Date:
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August 10, 2017
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By:
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/s/ Michael Callahan
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Name:
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Michael Callahan
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Title:
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Interim Chairman and Chief Executive Officer
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I, Stephen M. Nolan, certify that:
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||
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1.
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I have reviewed this quarterly report on Form 10-Q of Vista Outdoor Inc.;
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2.
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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;
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3.
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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;
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4.
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The registrant’s other certifying officer 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:
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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;
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b)
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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;
|
|
|
|
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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
|
|
|
|
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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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
|
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5.
|
The registrant’s other certifying officer 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 10, 2017
|
By:
|
|
/s/ Stephen M. Nolan
|
|
|
Name:
|
|
Stephen M. Nolan
|
|
|
Title:
|
|
Senior Vice President and Chief Financial Officer
|
(1)
|
the Quarterly Report on Form 10-Q for the period ended
July 2, 2017
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.
|
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By:
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|
/s/ Michael Callahan
|
|
||
|
Name:
|
|
Michael Callahan
|
|
||
|
Title:
|
|
Interim Chairman and Chief Executive Officer
|
|
||
|
|
|
|
|
||
|
By:
|
|
|
/s/ Stephen M. Nolan
|
||
|
Name:
|
|
|
Stephen M. Nolan
|
||
|
Title:
|
|
|
Senior Vice President and Chief Financial Officer
|