0001616318-21-000149.txt : 20211104 0001616318-21-000149.hdr.sgml : 20211104 20211104160730 ACCESSION NUMBER: 0001616318-21-000149 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 91 CONFORMED PERIOD OF REPORT: 20210926 FILED AS OF DATE: 20211104 DATE AS OF CHANGE: 20211104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Vista Outdoor Inc. CENTRAL INDEX KEY: 0001616318 STANDARD INDUSTRIAL CLASSIFICATION: ORDNANCE & ACCESSORIES, (NO VEHICLES/GUIDED MISSILES) [3480] IRS NUMBER: 471016855 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-36597 FILM NUMBER: 211379943 BUSINESS ADDRESS: STREET 1: 1 VISTA WAY CITY: ANOKA STATE: MN ZIP: 55303 BUSINESS PHONE: 763-433-1000 MAIL ADDRESS: STREET 1: 1 VISTA WAY CITY: ANOKA STATE: MN ZIP: 55303 10-Q 1 vsto-20210926.htm 10-Q vsto-20210926
0001616318FALSEMarch 312022Q200016163182021-04-012021-09-26xbrli:shares00016163182021-11-01iso4217:USD00016163182021-09-2600016163182021-03-31iso4217:USDxbrli:shares00016163182021-06-282021-09-2600016163182020-06-292020-09-2700016163182020-04-012020-09-2700016163182020-03-3100016163182020-09-270001616318us-gaap:CommonStockMember2021-03-310001616318us-gaap:AdditionalPaidInCapitalMember2021-03-310001616318us-gaap:RetainedEarningsMember2021-03-310001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001616318us-gaap:TreasuryStockMember2021-03-310001616318us-gaap:RetainedEarningsMember2021-04-012021-06-270001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-2700016163182021-04-012021-06-270001616318us-gaap:CommonStockMember2021-04-012021-06-270001616318us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-270001616318us-gaap:TreasuryStockMember2021-04-012021-06-270001616318us-gaap:CommonStockMember2021-06-270001616318us-gaap:AdditionalPaidInCapitalMember2021-06-270001616318us-gaap:RetainedEarningsMember2021-06-270001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-270001616318us-gaap:TreasuryStockMember2021-06-2700016163182021-06-270001616318us-gaap:RetainedEarningsMember2021-06-282021-09-260001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-282021-09-260001616318us-gaap:CommonStockMember2021-06-282021-09-260001616318us-gaap:AdditionalPaidInCapitalMember2021-06-282021-09-260001616318us-gaap:TreasuryStockMember2021-06-282021-09-260001616318us-gaap:CommonStockMember2021-09-260001616318us-gaap:AdditionalPaidInCapitalMember2021-09-260001616318us-gaap:RetainedEarningsMember2021-09-260001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-260001616318us-gaap:TreasuryStockMember2021-09-260001616318us-gaap:CommonStockMember2020-03-310001616318us-gaap:AdditionalPaidInCapitalMember2020-03-310001616318us-gaap:RetainedEarningsMember2020-03-310001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001616318us-gaap:TreasuryStockMember2020-03-310001616318us-gaap:RetainedEarningsMember2020-04-012020-06-280001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-2800016163182020-04-012020-06-280001616318us-gaap:CommonStockMember2020-04-012020-06-280001616318us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-280001616318us-gaap:TreasuryStockMember2020-04-012020-06-280001616318us-gaap:CommonStockMember2020-06-280001616318us-gaap:AdditionalPaidInCapitalMember2020-06-280001616318us-gaap:RetainedEarningsMember2020-06-280001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-280001616318us-gaap:TreasuryStockMember2020-06-2800016163182020-06-280001616318us-gaap:RetainedEarningsMember2020-06-292020-09-270001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-292020-09-270001616318us-gaap:CommonStockMember2020-06-292020-09-270001616318us-gaap:AdditionalPaidInCapitalMember2020-06-292020-09-270001616318us-gaap:TreasuryStockMember2020-06-292020-09-270001616318us-gaap:CommonStockMember2020-09-270001616318us-gaap:AdditionalPaidInCapitalMember2020-09-270001616318us-gaap:RetainedEarningsMember2020-09-270001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-270001616318us-gaap:TreasuryStockMember2020-09-27vsto:reportable_segmentvsto:facility00016163182019-07-0500016163182019-07-052019-07-05xbrli:pure0001616318us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-07-052019-07-050001616318vsto:SeniorNotes45Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-09-260001616318vsto:SeniorNotes45Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-260001616318vsto:SeniorNotes45Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001616318vsto:SeniorNotes45Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001616318vsto:SeniorNotes45Member2021-03-310001616318srt:MinimumMember2021-09-260001616318vsto:QuietKatMember2021-06-270001616318vsto:QuietKatMember2021-04-012021-06-270001616318vsto:RemingtonOutdoorCompanyIncMember2020-10-122020-10-120001616318vsto:RemingtonOutdoorCompanyIncMember2020-10-120001616318us-gaap:TradeNamesMembervsto:RemingtonOutdoorCompanyIncMember2020-10-122020-10-120001616318us-gaap:CustomerRelationshipsMembervsto:RemingtonOutdoorCompanyIncMember2020-10-122020-10-120001616318us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember2020-09-282020-12-27utr:lb0001616318vsto:LeadForwardContractMember2021-04-012021-09-260001616318vsto:AmmunitionMembervsto:ShootingSportsMember2021-06-282021-09-260001616318vsto:AmmunitionMember2021-06-282021-09-260001616318vsto:AmmunitionMembervsto:ShootingSportsMember2020-06-292020-09-270001616318vsto:AmmunitionMember2020-06-292020-09-270001616318vsto:ShootingSportsMembervsto:HuntingandShootingAccessoriesMember2021-06-282021-09-260001616318vsto:HuntingandShootingAccessoriesMember2021-06-282021-09-260001616318vsto:ShootingSportsMembervsto:HuntingandShootingAccessoriesMember2020-06-292020-09-270001616318vsto:HuntingandShootingAccessoriesMember2020-06-292020-09-270001616318vsto:OutdoorProductsMembervsto:ActionSportMember2021-06-282021-09-260001616318vsto:ActionSportMember2021-06-282021-09-260001616318vsto:OutdoorProductsMembervsto:ActionSportMember2020-06-292020-09-270001616318vsto:ActionSportMember2020-06-292020-09-270001616318vsto:OutdoorRecreation.Membervsto:OutdoorProductsMember2021-06-282021-09-260001616318vsto:OutdoorRecreation.Member2021-06-282021-09-260001616318vsto:OutdoorRecreation.Membervsto:OutdoorProductsMember2020-06-292020-09-270001616318vsto:OutdoorRecreation.Member2020-06-292020-09-270001616318vsto:ShootingSportsMember2021-06-282021-09-260001616318vsto:OutdoorProductsMember2021-06-282021-09-260001616318vsto:ShootingSportsMember2020-06-292020-09-270001616318vsto:OutdoorProductsMember2020-06-292020-09-270001616318vsto:ShootingSportsMembercountry:US2021-06-282021-09-260001616318vsto:OutdoorProductsMembercountry:US2021-06-282021-09-260001616318country:US2021-06-282021-09-260001616318vsto:ShootingSportsMembercountry:US2020-06-292020-09-270001616318vsto:OutdoorProductsMembercountry:US2020-06-292020-09-270001616318country:US2020-06-292020-09-270001616318us-gaap:NonUsMembervsto:ShootingSportsMember2021-06-282021-09-260001616318us-gaap:NonUsMembervsto:OutdoorProductsMember2021-06-282021-09-260001616318us-gaap:NonUsMember2021-06-282021-09-260001616318us-gaap:NonUsMembervsto:ShootingSportsMember2020-06-292020-09-270001616318us-gaap:NonUsMembervsto:OutdoorProductsMember2020-06-292020-09-270001616318us-gaap:NonUsMember2020-06-292020-09-270001616318vsto:AmmunitionMembervsto:ShootingSportsMember2021-04-012021-09-260001616318vsto:AmmunitionMember2021-04-012021-09-260001616318vsto:AmmunitionMembervsto:ShootingSportsMember2020-04-012020-09-270001616318vsto:AmmunitionMember2020-04-012020-09-270001616318vsto:ShootingSportsMembervsto:HuntingandShootingAccessoriesMember2021-04-012021-09-260001616318vsto:HuntingandShootingAccessoriesMember2021-04-012021-09-260001616318vsto:ShootingSportsMembervsto:HuntingandShootingAccessoriesMember2020-04-012020-09-270001616318vsto:HuntingandShootingAccessoriesMember2020-04-012020-09-270001616318vsto:OutdoorProductsMembervsto:ActionSportMember2021-04-012021-09-260001616318vsto:ActionSportMember2021-04-012021-09-260001616318vsto:OutdoorProductsMembervsto:ActionSportMember2020-04-012020-09-270001616318vsto:ActionSportMember2020-04-012020-09-270001616318vsto:OutdoorRecreation.Membervsto:OutdoorProductsMember2021-04-012021-09-260001616318vsto:OutdoorRecreation.Member2021-04-012021-09-260001616318vsto:OutdoorRecreation.Membervsto:OutdoorProductsMember2020-04-012020-09-270001616318vsto:OutdoorRecreation.Member2020-04-012020-09-270001616318vsto:ShootingSportsMember2021-04-012021-09-260001616318vsto:OutdoorProductsMember2021-04-012021-09-260001616318vsto:ShootingSportsMember2020-04-012020-09-270001616318vsto:OutdoorProductsMember2020-04-012020-09-270001616318vsto:ShootingSportsMembercountry:US2021-04-012021-09-260001616318vsto:OutdoorProductsMembercountry:US2021-04-012021-09-260001616318country:US2021-04-012021-09-260001616318vsto:ShootingSportsMembercountry:US2020-04-012020-09-270001616318vsto:OutdoorProductsMembercountry:US2020-04-012020-09-270001616318country:US2020-04-012020-09-270001616318us-gaap:NonUsMembervsto:ShootingSportsMember2021-04-012021-09-260001616318us-gaap:NonUsMembervsto:OutdoorProductsMember2021-04-012021-09-260001616318us-gaap:NonUsMember2021-04-012021-09-260001616318us-gaap:NonUsMembervsto:ShootingSportsMember2020-04-012020-09-270001616318us-gaap:NonUsMembervsto:OutdoorProductsMember2020-04-012020-09-270001616318us-gaap:NonUsMember2020-04-012020-09-270001616318srt:MinimumMember2021-04-012021-09-260001616318srt:MaximumMember2021-04-012021-09-260001616318us-gaap:CreditConcentrationRiskMembervsto:WalmartMemberus-gaap:AccountsReceivableMember2021-04-012021-09-260001616318us-gaap:CreditConcentrationRiskMembervsto:WalmartMemberus-gaap:AccountsReceivableMember2020-04-012021-03-310001616318vsto:PensionandOPEBAdjustmentsMember2021-06-270001616318us-gaap:AccumulatedTranslationAdjustmentMember2021-06-270001616318vsto:PensionandOPEBAdjustmentsMember2021-03-310001616318us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-09-260001616318vsto:PensionandOPEBAdjustmentsMember2021-09-260001616318us-gaap:AccumulatedTranslationAdjustmentMember2021-09-260001616318vsto:PensionandOPEBAdjustmentsMember2020-06-280001616318us-gaap:AccumulatedTranslationAdjustmentMember2020-06-280001616318vsto:PensionandOPEBAdjustmentsMember2020-03-310001616318us-gaap:AccumulatedTranslationAdjustmentMember2020-03-310001616318us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-09-270001616318vsto:PensionandOPEBAdjustmentsMember2020-09-270001616318us-gaap:AccumulatedTranslationAdjustmentMember2020-09-270001616318vsto:ShootingSportsMember2021-03-310001616318vsto:OutdoorProductsMember2021-03-310001616318vsto:ShootingSportsMember2021-09-260001616318vsto:OutdoorProductsMember2021-09-260001616318us-gaap:TradeNamesMember2021-09-260001616318us-gaap:TradeNamesMember2021-03-310001616318us-gaap:PatentedTechnologyMember2021-09-260001616318us-gaap:PatentedTechnologyMember2021-03-310001616318vsto:CustomerRelationshipsAndOtherMember2021-09-260001616318vsto:CustomerRelationshipsAndOtherMember2021-03-310001616318us-gaap:TradeNamesMember2021-09-260001616318us-gaap:TradeNamesMember2021-03-310001616318vsto:SeniorNotes45Memberus-gaap:SeniorNotesMember2021-09-260001616318vsto:SeniorNotes45Memberus-gaap:SeniorNotesMember2021-03-310001616318us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembervsto:ABLRevolvingCreditFacility2021Member2018-11-190001616318us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembervsto:ABLRevolvingCreditFacility2021Member2021-09-260001616318vsto:NonFirstinLastoutRevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:BaseRateMembervsto:ABLRevolvingCreditFacility2021Member2021-04-012021-09-260001616318vsto:NonFirstinLastoutRevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:BaseRateMembervsto:ABLRevolvingCreditFacility2021Member2021-04-012021-09-260001616318vsto:NonFirstinLastoutRevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembervsto:ABLRevolvingCreditFacility2021Member2021-04-012021-09-260001616318vsto:NonFirstinLastoutRevolvingCreditFacilityMembersrt:MaximumMemberus-gaap:LondonInterbankOfferedRateLIBORMembervsto:ABLRevolvingCreditFacility2021Member2021-04-012021-09-260001616318us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembervsto:ABLRevolvingCreditFacility2021Member2021-04-012021-09-260001616318us-gaap:LineOfCreditMember2021-04-012021-09-260001616318vsto:SeniorNotes45Memberus-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2021-04-012021-09-260001616318vsto:SeniorNotes45Memberus-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:SeniorNotesMember2021-04-012021-09-260001616318vsto:SeniorNotes45Member2021-09-260001616318vsto:SeniorNotes45Member2021-04-012021-09-260001616318srt:GuarantorSubsidiariesMember2021-09-260001616318us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembervsto:ABLRevolvingCreditFacility2021Member2021-03-310001616318srt:MaximumMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembervsto:ABLRevolvingCreditFacility2021Member2021-03-310001616318us-gaap:PensionPlansDefinedBenefitMember2021-04-012021-09-260001616318us-gaap:PensionPlansDefinedBenefitMember2020-04-012020-09-270001616318us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-09-260001616318us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2021-09-260001616318us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-04-012020-09-270001616318us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-04-012021-09-260001616318us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2021-04-012021-09-260001616318us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember2020-04-012020-09-270001616318srt:MaximumMember2021-09-26vsto:operating_segment0001616318us-gaap:CustomerConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMembervsto:WalmartMember2020-04-012020-09-270001616318us-gaap:OperatingSegmentsMembervsto:ShootingSportsMember2021-06-282021-09-260001616318us-gaap:OperatingSegmentsMembervsto:OutdoorProductsMember2021-06-282021-09-260001616318vsto:CorporateAndReconcilingItemsMember2021-06-282021-09-260001616318us-gaap:OperatingSegmentsMembervsto:ShootingSportsMember2021-04-012021-09-260001616318us-gaap:OperatingSegmentsMembervsto:OutdoorProductsMember2021-04-012021-09-260001616318vsto:CorporateAndReconcilingItemsMember2021-04-012021-09-260001616318us-gaap:OperatingSegmentsMembervsto:ShootingSportsMember2020-06-292020-09-270001616318us-gaap:OperatingSegmentsMembervsto:OutdoorProductsMember2020-06-292020-09-270001616318vsto:CorporateAndReconcilingItemsMember2020-06-292020-09-270001616318us-gaap:OperatingSegmentsMembervsto:ShootingSportsMember2020-04-012020-09-270001616318us-gaap:OperatingSegmentsMembervsto:OutdoorProductsMember2020-04-012020-09-270001616318vsto:CorporateAndReconcilingItemsMember2020-04-012020-09-270001616318us-gaap:FairValueAdjustmentToInventoryMemberus-gaap:OperatingSegmentsMembervsto:HEVIShotMembervsto:ShootingSportsMember2021-06-282021-09-260001616318us-gaap:FairValueAdjustmentToInventoryMemberus-gaap:OperatingSegmentsMembervsto:HEVIShotMembervsto:ShootingSportsMember2021-04-012021-09-260001616318us-gaap:OperatingSegmentsMembervsto:QuietKatMembervsto:OutdoorProductsMember2021-06-282021-09-260001616318us-gaap:OperatingSegmentsMembervsto:QuietKatMembervsto:OutdoorProductsMember2021-04-012021-09-260001616318vsto:ForesightSportsMemberus-gaap:SubsequentEventMember2021-09-282021-09-280001616318vsto:ForesightSportsMemberus-gaap:SubsequentEventMembervsto:EmployeeRetentionPaymentsMember2021-09-282021-09-280001616318vsto:ForesightSportsMemberus-gaap:SubsequentEventMembervsto:ContingentPaymentsRelatedToNetSalesTargetsBeingMetMember2021-09-282021-09-280001616318vsto:ForesightSportsMember2021-04-012021-09-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 26, 2021
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                  
Commission file number 1-36597
vsto-20210926_g1.jpg
Vista Outdoor Inc.
(Exact name of Registrant as specified in its charter)
Delaware
47-1016855
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1 Vista Way
Anoka
MN
55303
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: (763) 433-1000
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01VSTONew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No 
As of November 1, 2021, there were 57,296,059 shares of the registrant's common stock outstanding.




TABLE OF CONTENTS



PART I— FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS
VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(Amounts in thousands except share data)September 26, 2021March 31, 2021
ASSETS  
Current assets:  
Cash and cash equivalents$265,301 $243,265 
Net receivables414,587 301,575 
Net inventories561,506 454,504 
Income tax receivable10,898 37,870 
Other current assets40,314 27,018 
Total current assets1,292,606 1,064,232 
Net property, plant, and equipment190,733 197,531 
Operating lease assets74,384 72,400 
Goodwill97,773 86,082 
Net intangible assets324,115 314,955 
Deferred charges and other non-current assets, net38,346 29,739 
Total assets$2,017,957 $1,764,939 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:  
Accounts payable$180,867 $163,839 
Accrued compensation54,962 63,318 
Federal excise, use, and other taxes32,616 23,092 
Other current liabilities126,748 120,568 
Total current liabilities395,193 370,817 
Long-term debt495,841 495,564 
Deferred income tax liabilities12,891 8,235 
Long-term operating lease liabilities78,126 77,375 
Accrued pension and postemployment benefits30,306 33,503 
Other long-term liabilities70,587 42,448 
Total liabilities1,082,944 1,027,942 
Commitments and contingencies (Notes 3, 13, and 16)
Common stock — $.01 par value:
Authorized — 500,000,000 shares
Issued and outstanding — 57,288,160 shares as of September 26, 2021 and 58,561,016 shares as of March 31, 2021
573 585 
Additional paid-in capital1,731,665 1,731,479 
Accumulated deficit(451,771)(694,036)
Accumulated other comprehensive loss(82,267)(83,195)
Common stock in treasury, at cost — 6,676,279 shares held as of September 26, 2021 and 5,403,423 shares held as of March 31, 2021
(263,187)(217,836)
Total stockholders' equity935,013 736,997 
Total liabilities and stockholders' equity$2,017,957 $1,764,939 

See Notes to the Condensed Consolidated Financial Statements.
2

VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
 Three months endedSix months ended
(Amounts in thousands except per share data)September 26, 2021September 27, 2020September 26, 2021September 27, 2020
Sales, net$778,460 $575,179 $1,441,372 $1,054,319 
Cost of sales479,539 413,289 901,024 767,061 
Gross profit298,921 161,890 540,348 287,258 
Operating expenses:  
Research and development6,440 5,362 12,308 10,372 
Selling, general, and administrative101,742 81,272 193,645 153,587 
Earnings before interest and income taxes190,739 75,256 334,395 123,299 
Interest expense, net(5,929)(5,715)(11,607)(12,133)
Earnings before income taxes184,810 69,541 322,788 111,166 
Income tax provision(45,270)10,104 (80,523)8,955 
Net income $139,540 $79,645 $242,265 $120,121 
Earnings per common share:  
Basic$2.43 $1.37 $4.20 $2.07 
Diluted$2.36 $1.34 $4.07 $2.03 
Weighted-average number of common shares outstanding:    
Basic57,353 58,193 57,732 58,124 
Diluted59,216 59,314 59,577 59,066 
Net income (from above)$139,540 $79,645 $242,265 $120,121 
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 $31 and $54, for the three and six months ended September 26, 2021, respectively, and $0 and $0 for the three and six months ended September 27, 2020, respectively
(95)(79)(167)(157)
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(260) and $(519) for the three and six months ended September 26, 2021, respectively, and $0 and $0 for the three and six months ended September 27, 2020, respectively
801 970 1,599 1,938 
Change in derivatives, net of tax benefit of $141 and $121 for the three and six months ended September 26, 2021, respectively, and $0 and $0 for the three and six months ended September 27, 2020, respectively
(436)693 (373)1,674 
Change in cumulative translation adjustment
(337)160 (131)509 
Total other comprehensive income (loss)(67)1,744 928 3,964 
Comprehensive income $139,473 $81,389 $243,193 $124,085 

See Notes to the Condensed Consolidated Financial Statements.
3

VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
 Six months ended
(Amounts in thousands)September 26, 2021September 27, 2020
Operating Activities:  
Net income $242,265 $120,121 
Adjustments to net income to arrive at cash provided by operating activities:
Depreciation22,267 22,268 
Amortization of intangible assets10,417 9,899 
Amortization of deferred financing costs 701 755 
Deferred income taxes269 1,667 
Loss on disposal of property, plant, and equipment99 278 
Share-based compensation13,812 7,466 
Changes in assets and liabilities:
Net receivables(112,256)(22,884)
Net inventories(105,269)2,388 
Accounts payable16,957 35,996 
Accrued compensation(8,489)4,416 
Accrued income taxes32,250 (16,980)
Federal excise, use, and other taxes9,494 2,661 
Pension and other postretirement benefits(1,299)(6,740)
Other assets and liabilities(16,038)36,514 
Cash provided by operating activities105,180 197,825 
Investing Activities:
Capital expenditures(14,439)(9,665)
Acquisition of businesses, net of cash received(8,488) 
Proceeds from the disposition of property, plant, and equipment8 25 
Cash used for investing activities(22,919)(9,640)
Financing Activities:
Borrowings on lines of credit 43,076 
Payments on lines of credit (210,332)
Payments made for debt issuance costs (1,018) 
Purchase of treasury shares(56,239) 
Proceeds from exercise of stock options 228 805 
Payment of employee taxes related to vested stock awards(3,039)(239)
Cash used for financing activities(60,068)(166,690)
Effect of foreign exchange rate fluctuations on cash
(157)86 
Increase in cash, cash equivalents, and restricted cash 22,036 21,581 
Cash, cash equivalents, and restricted cash at beginning of period 243,265 31,375 
Cash, cash equivalents, and restricted cash at end of period$265,301 $52,956 
Supplemental Cash Flow Disclosures:
Non-cash investing activity:
Capital expenditures included in accounts payable$3,085 $1,968 
Contingent consideration in connection with business acquisitions
$22,400 $ 
Net assets assumed in business acquisitions
$30,888 $ 
 
See Notes to the Condensed Consolidated Financial Statements.
4

VISTA OUTDOOR INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(unaudited)
 
Common Stock $.01 Par Value
(Amounts in thousands except share data)SharesAmountAdditional
Paid-In
Capital
Accumulated Deficit Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Equity
Balance, March 31, 202158,561,016 $585 $1,731,479 $(694,036)$(83,195)$(217,836)$736,997 
Comprehensive income— — — 102,725 995 — 103,720 
Exercise of stock options7,373 — (94)— — 291 197 
Share-based compensation— — 7,038 — — — 7,038 
Restricted stock vested and shares withheld174,885 — (10,937)— — 7,896 (3,041)
Treasury shares purchased(1,212,496)— — — — (44,232)(44,232)
Other7,380 (10)(282)— — 292  
Balance, June 27, 202157,538,158 $575 $1,727,204 $(591,311)$(82,200)$(253,589)$800,679 
Comprehensive income— — — 139,540 (67)— 139,473 
Exercise of stock options1,928 — (45)— — 76 31 
Share-based compensation— — 6,774 — — — 6,774 
Restricted stock vested and shares withheld2,840 — (167)— — 109 (58)
Employee stock purchase plan2,726 — 12 — — 108 120 
Treasury shares purchased(311,187)— — — — (12,007)(12,007)
Other53,695 (2)(2,113)— — 2,116 1 
Balance, September 26, 202157,288,160 $573 $1,731,665 $(451,771)$(82,267)$(263,187)$935,013 
Common Stock $.01 Par Value
(Amounts in thousands except share data)SharesAmountAdditional
Paid-In
Capital
Accumulated Deficit Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Equity
Balance, March 31, 202058,038,822 $580 $1,744,096 $(960,048)$(100,994)$(241,129)$442,505 
Comprehensive income— — — 40,476 2,220 — 42,696 
Exercise of stock options5,000 — (203)— — 203  
Share-based compensation— — 4,404 — — — 4,404 
Restricted stock vested and shares withheld21,824 — (1,324)— — 1,224 (100)
Other1,313 1 (54)— — 53  
Balance, June 28, 202058,066,959 $581 $1,746,919 $(919,572)$(98,774)$(239,649)$489,505 
Comprehensive income— — — 79,645 1,744 — 81,389 
Exercise of stock options50,814 — (1,258)— — 2,063 805 
Share-based compensation— — 3,062 — — — 3,062 
Restricted stock vested and shares withheld29,680 — (1,741)— — 1,535 (206)
Employee stock purchase plan5,435 — (146)— — 221 75 
Other103,355 2 (4,191)— — 4,196 7 
Balance, September 27, 202058,256,243 $583 $1,742,645 $(839,927)$(97,030)$(231,634)$574,637 

See Notes to the Condensed Consolidated Financial Statements.
5

VISTA OUTDOOR INC.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Six Months Ended September 26, 2021
(Amounts in thousands except per share data and unless otherwise indicated)
1. Significant Accounting Policies
Nature of Operations—Vista Outdoor Inc. (together with our subsidiaries, "Vista Outdoor", "we", "our", and "us", unless the context otherwise requires) is a leading global designer, manufacturer, and marketer of outdoor and shooting sports products. We conduct our operations through two reportable segments, Shooting Sports and Outdoor Products. We are headquartered in Anoka, Minnesota and have 18 manufacturing and distribution facilities in the United States, Canada, Mexico, and Puerto Rico along with international customer service, sales, and sourcing operations in Asia, Canada, and Europe. Vista Outdoor was incorporated in Delaware in 2014. The condensed consolidated financial statements reflect our financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States.
This Quarterly Report on Form 10-Q should be read in conjunction with our Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (“fiscal year 2021”).
Basis of Presentation—Our unaudited condensed consolidated financial statements have been prepared in accordance with the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain disclosures and other financial information that normally are required by accounting principles generally accepted in the United States have been condensed or omitted. Our accounting policies are described in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for fiscal year 2021. Management is responsible for the condensed consolidated financial statements included in this report, which are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of our financial position as of September 26, 2021 and March 31, 2021, our results of operations for the three and six months ended September 26, 2021 and September 27, 2020, and our cash flows for the six months ended September 26, 2021 and September 27, 2020.
Our accounting policies are described in Note 1 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for fiscal year 2021. Such significant accounting policies are applicable for periods prior to the following new accounting standards.
Accounting Standards Adopted by us in Fiscal Year 2022
In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity." This ASU simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. Also, this ASU requires the application of the if-converted method for calculating diluted earnings per share and provided that the treasury stock method will be no longer available. The new guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. Entities may adopt the guidance through either a modified retrospective method of transition or a fully retrospective method of transition. We early adopted ASU 2020-06 on April 1, 2021 with no impact on our financial statements.
On April 1, 2021, we adopted ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” This ASU removes specific exceptions to the general principles of ASC Topic 740, "Accounting for Income Taxes" and simplifies certain U.S. GAAP requirements. This update is effective for fiscal years beginning after December 15, 2020. The adoption of this standard does not have a material impact on our consolidated financial statements and related disclosures.
2. Fair Value of Financial Instruments
We measure and disclose our financial assets and liabilities at fair value on a recurring and nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability (the exit price) in the principal and most advantageous market for the asset or liability in an orderly transaction between market participants. Assets and liabilities carried at fair value are classified using the three-tier hierarchy:
Level 1—Quoted prices for identical instruments in active markets.
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
6

Level 3—Significant inputs to the valuation model are unobservable.
The following section describes the valuation methodologies we use to measure our financial instruments at fair value on a recurring basis:
Commodity Price Hedging Instruments
We periodically enter into commodity forward contracts to hedge our exposure to price fluctuations on certain commodities we use for raw material components in our manufacturing process. When actual commodity prices exceed the fixed price provided by these contracts, we receive this difference from the counterparty, and when actual commodity prices are below the contractually provided fixed price, we pay this difference to the counterparty. We consider these to be Level 2 instruments. See Note 5, Derivative Financial Instruments, for additional information.
Note Receivable
In connection with the sale of our Firearms business in July 2019, we received a $12,000 interest-free, five-year pre-payable promissory note due June 2024. Based on the general market conditions and the credit quality of the buyer at the time of the sale, we discounted the Note Receivable at an effective interest rate of 10% and estimated fair value using a discounted cash flow approach. We consider this to be a Level 3 instrument. See Note 8, Receivables, for additional information.
Contingent Consideration
The acquisition-related contingent consideration liability represents the estimated fair value of earn-outs payable related to our acquisition of QuietKat Inc. ("QuietKat"). See Note 4, Acquisitions and Divestitures, for additional information. The earn-out liability is valued using a Monte Carlo simulation analysis in a risk-neutral framework with assumptions for volatility, market price of risk adjustment, risk-free rate, and cost of debt. The contingent consideration is measured to fair value at each reporting date through December 31, 2023, and is based on management estimates and entity-specific assumptions, which are considered Level 3 inputs. The liability is included in other long-term liabilities on our balance sheet.
Disclosures about the Fair Value of Financial Instruments
The carrying amount of our receivables, inventory, accounts payable and accrued liabilities at September 26, 2021 and March 31, 2021 approximates fair value because of the short maturity of these instruments. The carrying values of cash and cash equivalents at September 26, 2021 and March 31, 2021 are categorized within Level 1 of the fair value hierarchy. 
The table below discloses information about carrying values and estimated fair value relating to our financial assets and liabilities:
September 26, 2021March 31, 2021
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Fixed-rate debt (1)$500,000 $516,250 $500,000 $493,750 
(1) Fixed rate debt—In fiscal year 2021, we issued $500,000 aggregate principal amount of 4.5% Senior Notes that will mature on March 15, 2029. These notes are unsecured and senior obligations. We consider these to be Level 2 instruments. See Note 13, Long-term Debt, for information on long-term debt, including certain risks and uncertainties.
We measure certain nonfinancial assets at fair value on a nonrecurring basis if certain indicators are present. These assets include long-lived assets that are written down to fair value when they are held for sale or determined to be impaired.
3. Leases
We lease certain warehouse and distribution space, manufacturing space, office space, retail locations, equipment, and vehicles. All of these leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. These rates are assessed on a quarterly basis. The operating lease assets also include any lease payments made less lease incentives. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. Variable lease payments associated with our leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Tenant improvement allowances are recorded as leasehold improvements with an offsetting adjustment included in our calculation of its right-of-use asset.
7

Many leases include one or more options to renew, with renewal terms that can extend the lease term up to five years. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease term.
The amounts of assets and liabilities related to our operating leases were as follows:
Balance Sheet CaptionSeptember 26, 2021March 31, 2021
Assets:
Operating lease assetsOperating lease assets$74,384 $72,400 
Liabilities:
Current:
Operating lease liabilitiesOther current liabilities$11,277 $10,044 
Long-term:
Operating lease liabilitiesLong-term operating lease liabilities78,126 77,375 
Total lease liabilities$89,403 $87,419 
The components of lease expense are recorded to cost of sales and selling, general, and administration expenses in the condensed consolidated statements of comprehensive income. The components of lease expense were as follows:
Three months endedSix months ended
September 26, 2021September 27, 2020September 26, 2021September 27, 2020
Fixed operating lease costs (1)$5,386 $5,052 $10,502 $10,111 
Variable operating lease costs914 659 1,583 1,241 
Sublease income(107)(277)(151)(665)
Net Lease costs$6,193 $5,434 $11,934 $10,687 
(1) Includes short-term leases
September 26, 2021March 31, 2021
Weighted Average Remaining Lease Term (Years):
Operating leases8.809.32
Weighted Average Discount Rate:
Operating leases8.37 %8.64 %
The approximate minimum lease payments under non-cancelable operating leases as of September 26, 2021 are as follows:
Remainder of fiscal year 2022$9,210 
Fiscal year 202317,201 
Fiscal year 202414,990 
Fiscal year 202514,152 
Fiscal year 202612,909 
Thereafter61,532 
Total lease payments129,994 
Less imputed interest(40,591)
Present value of lease liabilities$89,403 
8

Supplemental cash flow information related to leases is as follows:
Six months ended
September 26, 2021September 27, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$8,966 $9,080 
Operating lease assets obtained in exchange for lease liabilities:
Operating leases5,785 1,285 
4. Acquisitions and Divestitures
During the first quarter of fiscal year 2022, we completed the acquisition of QuietKat, an electric bicycle company that specializes in designing, manufacturing, and marketing rugged, all-terrain eBikes. We accounted for the acquisition as a business combination using the acquisition method of accounting. The acquisition is not significant to our consolidated financial statements. The results of this business are reported within our Outdoor Products reportable segment. Contingent consideration with an initial fair value of $22,400 was included in the purchase price. See Note 2, Fair Value of Financial Instruments, for information related to the fair value calculation. In addition to the consideration we paid at closing, $13,000 was paid to key members of QuietKat management and is considered compensation that will be expensed over approximately three years provided they continue their employment with us through the respective milestone dates.
During the first quarter of fiscal year 2022, we completed the acquisition of Venor, a hunt-inspired female apparel brand. The Venor lifestyle is anchored in adventure, community, and empowering women to live their best outdoor lives. We accounted for the acquisition as a business combination using the acquisition method of accounting. The acquisition is not significant to our consolidated financial statements. The results of this business will be reported within the Outdoor Products reportable segment.
During the fourth quarter of fiscal year 2021, we completed the acquisition of HEVI-Shot Ammunition, which will immediately add a high-end offering, specialized lead-free ammunition capabilities and another iconic brand to our ammunition portfolio. We accounted for the acquisition as a business combination using the acquisition method of accounting. The acquisition is not significant to our consolidated financial statements. We finalized the purchase price allocation during the first quarter of fiscal year 2022. The results of this business are included in the Shooting Sports reportable segment.
During the third quarter of fiscal year 2021, we acquired certain assets related to Remington Outdoor Company, Inc.’s ("Remington") ammunition and accessories businesses, including Remington's ammunition manufacturing facility in Lonoke, Arkansas and related intellectual property. We accounted for the acquisition of Remington as a business combination using the acquisition method of accounting. The purchase price allocation below was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value. We finalized the purchase price allocation during the fourth quarter of fiscal year 2021.
9

Remington Purchase Price Allocation:
October 12, 2020
Total purchase price:
Cash paid$81,400 
Cash paid for working capital291 
Total purchase price81,691 
Fair value of assets acquired:
Inventories$20,021 
Intangible assets26,200 
Property, plant, and equipment31,200 
Other assets3,363 
Total assets80,784 
Fair value of liabilities assumed:
Accounts payable311 
Other liabilities2,969 
Total liabilities3,280 
Net assets acquired77,504 
Goodwill$4,187 
Intangible assets above include:
ValueUseful life (years)
Indefinite lived tradenames$24,500 Indefinite
Customer relationships1,700 20
Divestiture of Business:
We entered into an asset purchase agreement during the third quarter of fiscal year 2021 to sell a non-strategic business in our Shooting Sports segment. As part of the agreement, we provided limited transition services during fiscal year 2021. During the three months ended December 27, 2020, we recognized a pretax gain on this divestiture of approximately $18,467, which was included in other income/(expense). This transaction does not meet the criteria for discontinued operations as it does not represent a strategic shift that will have a major effect on our ongoing operations. The assets of this business represented a portion of our Ammunition reporting unit.
5. Derivative Financial Instruments
In the normal course of business, we are exposed to market risks arising from adverse changes in:
commodity prices affecting the cost of raw materials, and
interest rates
We use designated cash flow hedges to manage our level of exposure.
We entered into various commodity forward contracts during fiscal years 2022 and 2021. These contracts are used to hedge our exposure to price fluctuations on lead we purchase for raw material components in our ammunition manufacturing process and are designated and qualify as effective cash flow hedges. The effectiveness of cash flow hedge contracts is assessed quantitatively at inception and qualitatively thereafter considering the transactions critical terms and counterparty credit quality.
The gains and losses on these hedges are included in accumulated other comprehensive loss and are reclassified into earnings at the time the forecasted revenue or expense is recognized. The gains or losses on the lead forward contracts are recorded in inventory as the commodities are purchased and in cost of sales when the related inventory is sold. As of September 26, 2021, we had outstanding lead forward contracts on approximately 4.4 million pounds of lead. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related change in fair value of the derivative instrument would be reclassified from accumulated other comprehensive loss and recognized in earnings. As of September 26, 2021, there is an immaterial asset balance related to the lead forward contracts that is recorded within other current assets.
10

6. Revenue Recognition
The following tables disaggregate our net sales by major category:
Three months ended
September 26, 2021September 27, 2020
Shooting SportsOutdoor ProductsTotalShooting SportsOutdoor ProductsTotal
Ammunition$450,193 $— $450,193 $272,219 $— $272,219 
Hunting and Shooting116,156 — 116,156 107,468 — 107,468 
Action Sports (1)— 104,645 104,645 — 97,447 97,447 
Outdoor Recreation (2)— 107,466 107,466 — 98,045 98,045 
Total$566,349 $212,111 $778,460 $379,687 $195,492 $575,179 
Geographic Region:
United States$533,542 $143,664 $677,206 $352,740 $151,783 $504,523 
Rest of the World32,807 68,447 101,254 26,947 43,709 70,656 
Total$566,349 $212,111 $778,460 $379,687 $195,492 $575,179 
Six months ended
September 26, 2021September 27, 2020
Shooting SportsOutdoor ProductsTotalShooting SportsOutdoor ProductsTotal
Ammunition$814,481 $— $814,481 $533,981 $— $533,981 
Hunting and Shooting215,187 — 215,187 179,863 — 179,863 
Action Sports (1)— 196,787 196,787 — 170,306 170,306 
Outdoor Recreation (2)— 214,917 214,917 — 170,169 170,169 
Total$1,029,668 $411,704 $1,441,372 $713,844 $340,475 $1,054,319 
Geographic Region:
United States$943,427 $291,733 $1,235,160 $660,127 $266,800 $926,927 
Rest of the World86,241 119,971 206,212 53,717 73,675 127,392 
Total$1,029,668 $411,704 $1,441,372 $713,844 $340,475 $1,054,319 
(1) Action Sports includes the operating segments: Sports Protection and Cycling.
(2) Outdoor Recreation includes the operating segments: Hydration, Outdoor Cooking, and Golf.
Product Sales:
We recognize revenue for our products at a point in time upon the transfer of control of the products to the customer, which typically occurs upon shipment and coincides with our right to payment, the transfer of legal title, and the transfer of the significant risks and rewards of ownership of the product.
Typically, our contracts require customers to pay within 30-60 days of product delivery with a discount available to some customers for early payment. In some cases, we offer extended payment terms to customers. However, we do not consider these extended payment terms to be a significant financing component of the contract because the payment terms are less than a year.
In limited circumstances, our contract with a customer may have shipping terms that indicate a transfer of control of the products upon their arrival at the destination rather than upon shipment. In those cases, we recognize revenue only when the product reaches the customer destination, which may require us to estimate the timing of transfer of control based on the expected delivery date. In all cases, however, we consider our costs related to shipping and handling to be a cost of fulfilling the contract with the customer.
11

The total amount of revenue we recognize for the sale of our products reflects various sales adjustments for discounts, returns, refunds, allowances, rebates, and other customer incentives. These sales adjustments can vary based on market conditions, customer preferences, timing of customer payments, volume of products sold, and timing of new product launches. These adjustments require management to make reasonable estimates of the amount we expect to receive from the customer. We estimate sales adjustments by customer or by product category on the basis of our historical experience with similar contracts with customers, adjusted as necessary to reflect current facts and circumstances and our expectations for the future. Sales taxes, federal excise taxes, and other similar taxes are excluded from revenue.
Incentives in the form of cash paid to the customer (or a reduction of a customer cash payment to us) typically are recognized as a reduction of sales unless the incentive is for a distinct benefit that we receive from the customer, e.g., advertising or marketing.
We pay commissions to some of our employees based on agreed-upon sales targets. We recognize the incremental costs of obtaining a contract as an expense when incurred because our sales contracts with commissions are a year or less.
7. Earnings Per Share
The computation of basic earnings per share ("EPS") is based on the weighted average number of shares that were outstanding during the period. The computation of diluted EPS is based on the number of basic weighted average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares, such as common stock to be issued upon exercise of options, contingently issuable shares and restricted stock units, using the treasury stock method.
In computing EPS for the periods presented, earnings, as reported for each respective period, is divided by the number of shares below (in thousands):
Three months endedSix months ended
(Amounts in thousands except per share data)September 26, 2021September 27, 2020September 26, 2021September 27, 2020
Numerator:
Net income $139,540 $79,645 $242,265 $120,121 
Denominator:
Weighted-average number of common shares outstanding basic:57,353 58,193 57,732 58,124 
Dilutive effect of share-based awards (1)1,863 1,121 1,845 942 
Diluted shares 59,216 59,314 59,577 59,066 
Earnings per common share:  
Basic$2.43 $1.37 $4.20 $2.07 
Diluted$2.36 $1.34 $4.07 $2.03 
(1) Potentially dilutive securities, which were not included in the computation of diluted earnings per share, because either the effect would have been anti-dilutive, or the options’ exercise prices were greater than the average market price of the common stock, were 0 and 527 for the three and six months ended September 26, 2021, respectively, and 26 and 296 for the three and six months ended September 27, 2020, respectively.
8. Receivables
Our trade account receivables are recorded at net realizable value, which includes an appropriate allowance for estimated credit losses under the expected credit loss model. We maintain an allowance for credit losses related to accounts receivable for future expected credit losses resulting from the inability or unwillingness of our customers to make required payments. We estimate the allowance based upon historical bad debts, current customer receivable balances, age of customer receivable balances and the customers' financial condition, and in relation to a representative pool of assets consisting of a large number of customers with similar risk characteristics. The allowance is adjusted as appropriate to reflect differences in current conditions as well as changes in forecasted macroeconomic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis, including those associated with customers that have a higher probability of default.
12

Net receivables are summarized as follows:
September 26, 2021March 31, 2021
Trade receivables$423,730 $307,098 
Other receivables7,558 7,899 
Less: allowance for estimated credit losses and discounts(16,701)(13,422)
Net receivables$414,587 $301,575 
Walmart represented 17% and 18% of our total trade receivables balance as of September 26, 2021 and March 31, 2021, respectively. No other customer represented more than 10% of our total trade receivables balance as of September 26, 2021 or March 31, 2021.
The following provides a reconciliation of the activity related to the allowance for estimated credit losses and discounts for the six months ended September 26, 2021:
Balance, March 31, 2021$13,422 
Provision for credit losses1,459 
Write-off of uncollectible amounts, net of recoveries(688)
Discounts and other adjustments2,508 
Balance, September 26, 2021$16,701 
Note Receivable is summarized as follows:
September 26, 2021March 31, 2021
Principal$12,000 $12,000 
Less: unamortized discount(2,759)(3,189)
Note receivable, net, included within Deferred charges and other non-current assets$9,241 $8,811 
9. Inventories
Current net inventories consist of the following:
September 26, 2021March 31, 2021
Raw materials$155,509 $133,970 
Work in process58,094 47,829 
Finished goods347,903 272,705 
Net inventories$561,506 $454,504 
We consider inventories to be long-term if they are not expected to be sold within one year. Long-term inventories are presented on the balance sheet net of reserves within deferred charges and other non-current assets and totaled $11,496 and $12,226 as of September 26, 2021 and March 31, 2021, respectively.
10. Accumulated Other Comprehensive Loss (AOCL)
The components of AOCL, net of income taxes, are as follows:
September 26, 2021March 31, 2021
Derivatives$(212)$161 
Pension and other postretirement benefits liabilities(76,734)(78,166)
Cumulative translation adjustment(5,321)(5,190)
Total AOCL
$(82,267)$(83,195)
13

The following tables detail the amounts reclassified from AOCL to earnings as well as the changes in derivatives, pension and other postretirement benefits, and foreign currency translation, net of income tax:
Three months ended September 26, 2021Six months ended September 26, 2021
DerivativesPension and other postretirement benefits liabilitiesCumulative translation adjustmentTotalDerivativesPension and other postretirement benefits liabilitiesCumulative translation adjustmentTotal
Beginning balance in AOCL$224 $(77,440)$(4,984)$(82,200)$161 $(78,166)$(5,190)$(83,195)
Change in fair value of derivatives118 — — 118 767