10-Q/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
    
FORM 10-Q/A

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2012

OR

[ ] 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 1-10435
STURM, RUGER & COMPANY, INC.
(Exact name of registrant as specified in its charter)

Delaware	06-0633559
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)
Lacey Place, Southport, Connecticut	06890
(Address of principal executive offices)	(Zip code)
(203) 259-7843 (Registrant’s telephone number, including area code)

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 requirements for the past 90 days. Yes [X]             No [    ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes [X]            No [    ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer [    ]    Accelerated filer [X]    Non-accelerated filer [    ]    Smaller reporting company [    ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [    ]            No [X]

The number of shares outstanding of the issuer’s common stock as of July 20, 2012: Common Stock, $1 par value —19,160,072.

EXPLANATORY NOTE

Sturm, Ruger & Company, Inc. (the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (“Amendment No. 1”) to correct a reporting inconsistency within the XBRL (Extensible Business Reporting Language) / Financial Statements.

XBRL information in Exhibit 101 was included but did not contain the required amounts for June 30, 2012, from our timely filed Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2012, as provided for under Rule 405 of the Securities and Exchange Commission’s Regulation S-T. This omission was caused by an uploading error at our third-party service provider. This Amendment No. 1 makes no other changes to the Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on August 1, 2012.

EXHIBITS

Exhibit Number	Exhibit Description
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	XBRL Taxonomy Definition Linkbase Document*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document*

____________________
(*) In accordance with Rule 402 of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

STURM, RUGER & COMPANY, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

STURM, RUGER & COMPANY, INC.

Date: August 2, 2012 S/ THOMAS A. DINEEN
Thomas A. Dineen
Principal Financial Officer,
Principal Accounting Officer,
Vice President, Treasurer and Chief Financial Officer

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CONTINGENT LIABILITIES (Detail Textuals) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012 Claims	Dec. 31, 2011	Dec. 31, 2010
Loss Contingencies [Line Items]
Number of lawsuits against the Company	4
Damages from Product Defects
Loss Contingencies [Line Items]
Number of lawsuits against the Company	2
Minimum limit of per claim for providing insurance coverage on annual basis	$ 5
Maximum limit of aggregate loss incurred annually for providing insurance coverage on annual basis	10
Total amount of damages claimed		$ 5.4	$ 0

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COMPENSATION PLANS (Detail Textuals) (Stock Incentive Plan 2007, USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Stock Incentive Plan 2007
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future issuance	2,550,000		2,550,000
Shares available for future grants	839,000		839,000
Compensation expense recognized	$ 1.2	$ 0.8	$ 2.1	$ 1.2

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SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2012
Net firearms sales
Segment Reporting Information [Line Items]
Percentage of sales	99.00%
Net castings sales
Segment Reporting Information [Line Items]
Percentage of sales	1.00%
Export Sales
Segment Reporting Information [Line Items]
Percentage of sales	5.00%

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OPERATING SEGMENT INFORMATION (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Segment Reporting Information [Line Items]
Identifiable Assets	$ 230,409	$ 206,510	[1]
Firearms
Segment Reporting Information [Line Items]
Identifiable Assets	112,685	103,545
Castings
Segment Reporting Information [Line Items]
Identifiable Assets	5,692	5,290
Corporate
Segment Reporting Information [Line Items]
Identifiable Assets	$ 112,032	$ 97,675

[1] Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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INVENTORIES

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

INVENTORIES

NOTE 3 - INVENTORIES

Inventories are valued using the last-in, first-out (LIFO) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected year-end inventory levels and costs. Because these are subject to many factors beyond management's control, interim results are subject to the final year-end LIFO inventory valuation.

During the six month period ended June 30, 2012, inventory quantities were reduced. If this reduction remains through year-end, it will result in a liquidation of LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the current cost of purchases. Although the effect of such a liquidation cannot be precisely quantified at the present time, management believes that if a LIFO liquidation occurs in 2012, the impact will not be material to the Company’s results of operations for the period and will not have a material impact on the financial position of the Company.

Inventories consist of the following:

	June 30, 2012	December 31, 2011
Inventory at FIFO
Finished products	$   2,458	$   3,318
Materials and work in process	45,338	45,686
Gross inventories	47,796	49,004
Less: LIFO reserve	(37,384)	(37,476)
Less: excess and obsolescence reserve	(1,202)	(1,311)
Net inventories	$  9,210	$ 10,217

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INCOME TAXES (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Income Tax Disclosure [Abstract]
Effective income tax rates	37.00%	37.00%	37.00%	37.00%
Income tax payments	$ 13.7	$ 6.9	$ 14.0	$ 7.0

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EMPLOYEE BENEFIT PLANS (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Defined Benefit Plan Disclosure [Line Items]
Minimum contributions for plan	$ 3.0		$ 3.0
Contributions by company	0.6		1.4
Expenses related to defined contribution plan	0.5	0.5	1.1	1.0
Total contributions	0.6	0.5	1.3	1.1
Total contributions to the plan during the remainder of fiscal year	1.2
Frozen defined benefit plans
Defined Benefit Plan Disclosure [Line Items]
Estimated cost for defined benefit plans			$ 0.4

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EARNINGS PER SHARE (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Numerator:
Net income	$ 18,014	$ 10,813	$ 33,494	$ 18,759
Denominator:
Weighted average number of common shares outstanding - Basic	19,155,127	18,897,879	19,135,946	18,824,585
Dilutive effect of options and restricted stock units outstanding under the Company's employee compensation plans	528,152	362,614	490,875	175,266
Weighted average number of common shares outstanding - Diluted	19,683,279	19,260,493	19,626,821	18,999,851

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STOCK REPURCHASES (Details) (USD $)	1 Months Ended	3 Months Ended
	Jan. 29, 2011	Apr. 02, 2011
Treasury Stock [Abstract]
Total Number of Shares Purchased	133,400	133,400
Average Price Paid Per Share	$ 14.94	$ 14.94
Total Number of Shares Purchased as Part of Publicly Announced Program	133,400	133,400
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program		$ 8,000,000

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

         NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Organization:

Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of the Company’s total sales for the three and six months ended June 30, 2012 were firearms sales, and approximately 1% was investment castings sales. Export sales represent approximately 5% of total sales. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic.

The Company’s firearms are sold through a select number of independent wholesale distributors principally to the commercial sporting market.

The Company manufactures investment castings made from steel alloys for internal use in its firearms and utilizes available investment casting capacity to manufacture and sell castings to unaffiliated, third-party customers.

Fair Value of Financial Instruments:

The carrying amounts of financial instruments, including cash, short-term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term maturity of these items.

Short-term Investments:

Short-term investments consist principally of United States Treasury instruments, all maturing within one year, and are recorded at cost plus accrued interest, which approximates market. The income from short-term investments is included in other income, net. The Company intends to hold these investments until maturity.

The Company evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when market conditions warrant such evaluation. The Company has determined that the carrying value of short-term investments has not been impaired.

Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

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COMPENSATION PLANS (Details) (Stock Incentive Plan 2007, Stock Options, USD $)	6 Months Ended
	Jun. 30, 2012
Stock Incentive Plan 2007 | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at December 31, 2011	328,700
Granted shares
Exercised shares	(46,956)
Expired shares
Outstanding at June 30, 2012	281,744
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding weighted average exercise price at December 31, 2011	$ 8.58
Granted weighted average exercise price
Exercised weighted average exercise price	$ 7.81
Expired weighted average exercise price
Outstanding weighted average exercise price at June 30, 2012	$ 8.71
Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding grant date fair value December 31, 2011	$ 4.42
Granted grant date fair value
Exercised grant date fair value	$ 3.80
Expired grant date fair value
Outstanding grant date fair value at June 30, 2012	$ 4.52

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CONDENSED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current Assets
Cash and cash equivalents	$ 75,960	$ 81,056	[1]
Short-term investments	19,994		[1]
Trade receivables, net	47,332	42,225	[1]
Gross inventories	47,796	49,004	[1]
Less LIFO reserve	(37,384)	(37,476)	[1]
Less excess and obsolescence reserve	(1,202)	(1,311)	[1]
Net inventories	9,210	10,217	[1]
Deferred income taxes	6,753	5,776	[1]
Prepaid expenses and other current assets	859	6,968	[1]
Total Current Assets	160,108	146,242	[1]
Property, plant and equipment	181,161	169,142	[1]
Less allowances for depreciation	(122,629)	(116,195)	[1]
Net property, plant and equipment	58,532	52,947	[1]
Deferred income taxes	405	32	[1]
Other assets	11,364	7,289	[1]
Total Assets	230,409	206,510	[1]
Current Liabilities
Trade accounts payable and accrued expenses	26,946	28,592	[1]
Product liability	1,010	1,305	[1]
Employee compensation and benefits	14,212	14,882	[1]
Workers' compensation	4,846	4,600	[1]
Income taxes payable	1,194	217	[1]
Total Current Liabilities	48,208	49,596	[1]
Accrued pension liability	19,122	19,082	[1]
Product liability accrual	370	441	[1]
Contingent liabilities - Note 11			[1]
Stockholders' Equity
Additional paid-in capital	12,473	10,454	[1]
Retained earnings	192,203	168,981	[1]
Less: Treasury stock - at cost 2012 - 4,299,434 shares 2011 - 4,299,434 shares	(37,884)	(37,884)	[1]
Accumulated other comprehensive loss	(27,543)	(27,543)	[1]
Total Stockholders' Equity	162,709	137,391	[1]
Total Liabilities and Stockholders' Equity	230,409	206,510	[1]
Nonvoting Common Stock
Stockholders' Equity
Common Stock, Value			[1]
Voting Common Stock
Stockholders' Equity
Common Stock, Value	$ 23,460	$ 23,383	[1]

[1] Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012		Jul. 02, 2011
Operating Activities
Net income	$ 33,494		$ 18,759
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	6,774		5,860
Slow moving inventory valuation adjustment	(64)		(176)
Stock-based compensation	2,104		1,247
Gain on sale of assets	(13)		(7)
Deferred income taxes	(1,350)		1,111
Changes in operating assets and liabilities:
Trade receivables	(5,107)		(292)
Inventories	1,071		5,954
Trade accounts payable and accrued expenses	(1,400)		2,298
Employee compensation and benefits	(670)		(580)
Product liability	(366)		135
Prepaid expenses, other assets and other liabilities	2,054		(3,434)
Income taxes payable	977		1,499
Cash provided by operating activities	37,504		32,374
Investing Activities
Property, plant and equipment additions	(12,339)		(7,719)
Proceeds from sale of assets	13		16
Purchases of short-term investments	(29,993)		(47,496)
Proceeds from maturities of short-term investments	9,999		35,496
Cash used for investing activities	(32,320)		(19,703)
Financing Activities
Tax benefit from exercise of stock options	1,037		1,441
Repurchase of common stock			(1,999)
Payment of employee withholding tax related to share-based compensation	(1,045)		(2,432)
Dividends paid	(10,272)		(2,775)
Cash used for financing activities	(10,280)		(5,765)
(Decrease) Increase in cash and cash equivalents	(5,096)		6,906
Cash and cash equivalents at beginning of period	81,056	[1]	5,132
Cash and cash equivalents at end of period	$ 75,960		$ 12,038

[1] Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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COMPENSATION PLANS (Detail Textuals 2) (Stock Incentive Plan 2007, USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense recognized	$ 1.2	$ 0.8	$ 2.1	$ 1.2
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units issued	57,956		149,725
Unrecognised compensation expense recognized	2.8		2.8		6.7
Vesting period for compensation expense recognized					3 years
Compensation expense recognized	$ 1.1	$ 0.6	$ 1.9	$ 0.8
Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for compensation expense recognized	5 years
Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for compensation expense recognized	3 years

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STOCK REPURCHASES (Tables)

6 Months Ended

Jun. 30, 2012

Treasury Stock [Abstract]

Schedule of repurchase of common stock

Period	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Program	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program
1/4/11-1/29/11	133,400	$14.94	133,400
Total	133,400	$14.94	133,400	$8,000,000

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OPERATING SEGMENT INFORMATION (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Segment Reporting Information [Line Items]
Net Sales	$ 119,569	$ 79,622	$ 231,906	$ 155,063
Income (Loss) Before Income Taxes	28,594	17,163	53,165	29,776
Firearms
Segment Reporting Information [Line Items]
Net Sales	118,147	78,471	228,934	152,912
Income (Loss) Before Income Taxes	28,722	17,998	53,616	30,750
Castings
Segment Reporting Information [Line Items]
Net Sales	7,969	5,869	15,901	11,255
Income (Loss) Before Income Taxes	(720)	(150)	(1,163)	(447)
Unaffiliated Castings
Segment Reporting Information [Line Items]
Net Sales	1,422	1,151	2,972	2,151
Intersegment Castings
Segment Reporting Information [Line Items]
Net Sales	6,547	4,718	12,929	9,104
Eliminations
Segment Reporting Information [Line Items]
Net Sales	(6,547)	(4,718)	(12,929)	(9,104)
Corporate
Segment Reporting Information [Line Items]
Income (Loss) Before Income Taxes	$ 592	$ (685)	$ 712	$ (527)

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OPERATING SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of financial information of selected operating segment

(in thousands)	Three Months Ended		Six Months Ended
	June 30, 2012	July 2, 2011	June 30, 2012	July 2, 2011
Net Sales
Firearms	$118,147	$78,471	$228,934	$152,912
Castings
Unaffiliated	1,422	1,151	2,972	2,151
Intersegment	6,547	4,718	12,929	9,104
	7,969	5,869	15,901	11,255
Eliminations	(6,547)	(4,718)	(12,929)	(9,104)
	$119,569	$79,622	$231,906	$155,063
Income (Loss) Before Income Taxes
Firearms	$28,722	$17,998	$53,616	$30,750
Castings	(720)	(150)	(1,163)	(447)
Corporate	592	(685)	712	(527)
	$28,594	$17,163	$53,165	$29,776
			June 30, 2012	December 31, 2011
Identifiable Assets
Firearms			$112,685	$103,545
Castings			5,692	5,290
Corporate			112,032	97,675
			$230,409	$206,510

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements.

In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of the results of the interim periods. Operating results for the six months ended June 30, 2012 may not be indicative of the results to be expected for the full year ending December 31, 2012. These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the year ended December 31, 2011.

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CONDENSED BALANCE SHEETS (Parentheticals) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Treasury stock, shares	4,299,434	4,299,434	[1]
Nonvoting Common Stock
Common Stock,par value (in dollars per share)	1	1	[1]
Common Stock, authorized shares	50,000	50,000	[1]
Common Stock, issued shares			[1]
Voting Common Stock
Common Stock,par value (in dollars per share)	1	1	[1]
Common Stock, authorized shares	40,000,000	40,000,000	[1]
Common Stock, issued shares	23,459,506	23,382,566	[1]
Common Stock, outstanding shares	19,160,072	19,083,132	[1]

[1] Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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CONTINGENT LIABILITIES

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

CONTINGENT LIABILITIES

NOTE 11 - CONTINGENT LIABILITIES

As of June 30, 2012, the Company was a defendant in approximately four (4) lawsuits and is aware of certain other such claims. The lawsuits fall into three general categories, traditional products liability, municipal litigation and securities litigation, discussed in turn below.

Traditional Product Liability Litigation

Two of the four lawsuits mentioned above involve claims for damages related to allegedly defective product design and/or manufacture. Both lawsuits stem from a specific incident of personal injury and are based on traditional product liability theories such as strict liability, negligence and/or breach of warranty.

The Company management believes that the allegations in these cases are unfounded, and that the incidents were caused by the negligence and/or misuse of the firearms by third-parties or the claimant, and that there should be no recovery against the Company.

Municipal Litigation

Municipal litigation generally includes those cases brought by cities or other governmental entities against firearms manufacturers, distributors and retailers seeking to recover damages allegedly arising out of the misuse of firearms by third-parties.

There is only one remaining lawsuit of this type, filed by the City of Gary in Indiana State Court, over ten years ago. The complaint in that case seeks damages, among other things, for the costs of medical care, police and emergency services, public health services, and other services as well as punitive damages. In addition, nuisance abatement and/or injunctive relief is sought to change the design, manufacture, marketing and distribution practices of the various defendants. The suit alleges, among other claims, negligence in the design of products, public nuisance, negligent distribution and marketing, negligence per se and deceptive advertising. The case does not allege a specific injury to a specific individual as a result of the misuse or use of any of the Company’s products.

After a long procedural history, the case was scheduled for trial on June 15, 2009. The case was not tried on that date and no subsequent scheduling order has been entered. There has been no activity since that time.

Securities Litigation

In addition to the foregoing, on August 18, 2009, the Company was served with a complaint captioned Steamfitters Local 449 Pension Fund, on Behalf of Itself and All Others Similarly Situated v. Sturm, Ruger & Co. Inc., et al. pending in the United States District Court for the District of Connecticut. The complaint seeks unspecified damages for alleged violations of the Securities Exchange Act of 1934 and is a purported class action on behalf of purchasers of the Company’s common stock between April 23, 2007 and October 29, 2007. On October 9, 2009, the Company waived service of a complaint captioned Alan R. Herrett, Individually and On Behalf of All Others Similarly Situated v. Sturm, Ruger & Co. Inc., et al. pending in the United States District Court for the District of Connecticut. This matter is based upon the same facts and basic allegations set forth in the Steamfitters Local 449 Pension Fund litigation. On October 12, 2009, a motion to consolidate the two actions was filed by counsel for the Steamfitters. On January 11, 2010, the court entered an order consolidating the two matters. A consolidated amended complaint was filed on March 11, 2010. The defendants, including the Company, filed a motion to dismiss on April 26, 2010 and plaintiffs filed a response on June 18, 2010. Defendants then filed a reply in support of the motion on July 19, 2010. Oral argument was held on November 22, 2010. On February 4, 2011, the Court entered an order granting the motion to dismiss in part and denying it in part. The matter is ongoing.

         Summary of Claimed Damages and Explanation of Product Liability Accruals

Punitive damages, as well as compensatory damages, are demanded in certain of the lawsuits and claims. Aggregate claimed amounts presently exceed product liability accruals and applicable insurance coverage. For claims made after July 10, 2000, coverage is provided on an annual basis for losses exceeding $5 million per claim, or an aggregate maximum loss of $10 million annually, except for certain new claims which might be brought by governments or municipalities after July 10, 2000, which are excluded from coverage.

The Company management monitors the status of known claims and the product liability accrual, which includes amounts for asserted and unasserted claims. While it is not possible to forecast the outcome of litigation or the timing of costs, in the opinion of management, after consultation with special and corporate counsel, it is not probable and is unlikely that litigation, including punitive damage claims, will have a material adverse effect on the financial position of the Company, but may have a material impact on the Company’s financial results for a particular period.

Product liability claim payments are made when appropriate if, as, and when claimants and the Company reach agreement upon an amount to finally resolve all claims. Legal costs are paid as the lawsuits and claims develop, the timing of which may vary greatly from case to case. A time schedule cannot be determined in advance with any reliability concerning when payments will be made in any given case.

Provision is made for product liability claims based upon many factors related to the severity of the alleged injury and potential liability exposure, based upon prior claim experience. Because the Company’s experience in defending these lawsuits and claims is that unfavorable outcomes are typically not probable or estimable, only in rare cases is an accrual established for such costs. In most cases, an accrual is established only for estimated legal defense costs. Product liability accruals are periodically reviewed to reflect then-current estimates of possible liabilities and expenses incurred to date and reasonably anticipated in the future. Threatened product liability claims are reflected in the Company’s product liability accrual on the same basis as actual claims; i.e., an accrual is made for reasonably anticipated possible liability and claims-handling expenses on an ongoing basis.

A range of reasonably possible loss relating to unfavorable outcomes cannot be made. However, in product liability cases in which a dollar amount of damages is claimed, the amount of damages claimed, which totaled $5.4 million and $0.0 million at December 31, 2011 and 2010, respectively, are set forth as an indication of possible maximum liability that the Company might be required to incur in these cases (regardless of the likelihood or reasonable probability of any or all of this amount being awarded to claimants) as a result of adverse judgments that are sustained on appeal.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Jul. 20, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	STURM RUGER & CO INC
Entity Central Index Key	0000095029
Trading Symbol	rgr
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,160,072
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

         NOTE 12 - SUBSEQUENT EVENTS

The Company has evaluated events and transactions occurring subsequent to June 30, 2012 and determined that there were no such events or transactions that would have a material impact on the Company’s results of operations or financial position.

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CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jul. 02, 2011	Jun. 30, 2012	Jul. 02, 2011
Segment Reporting Information [Line Items]
Total net sales	$ 119,569	$ 79,622	$ 231,906	$ 155,063
Cost of products sold	74,435	51,157	144,979	102,604
Gross profit	45,134	28,465	86,927	52,459
Operating expenses:
Selling	9,107	6,468	20,107	13,380
General and administrative	7,728	4,935	14,106	9,560
Total operating expenses	16,835	11,403	34,213	22,940
Operating income	28,299	17,062	52,714	29,519
Other income:
Interest expense, net	(21)	(13)	(44)	(33)
Other income, net	316	114	495	290
Total other income, net	295	101	451	257
Income before income taxes	28,594	17,163	53,165	29,776
Income taxes	10,580	6,350	19,671	11,017
Net income and comprehensive income	18,014	10,813	33,494	18,759
Basic earnings per share (in dollars per share)	$ 0.94	$ 0.57	$ 1.75	$ 1.00
Fully diluted earnings per share (in dollars per share)	$ 0.91	$ 0.56	$ 1.71	$ 0.99
Cash dividends per share (in dollars per share)	$ 0.324	$ 0.097	$ 0.536	$ 0.147
Net firearms sales
Segment Reporting Information [Line Items]
Total net sales	118,147	78,471	228,934	152,912
Other income:
Income before income taxes	28,722	17,998	53,616	30,750
Net castings sales
Segment Reporting Information [Line Items]
Total net sales	$ 1,422	$ 1,151	$ 2,972	$ 2,151

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INCOME TAXES

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

INCOME TAXES

           NOTE 6 - INCOME TAXES

The Company's 2012 and 2011 effective tax rates differ from the statutory federal tax rate due principally to state income taxes partially offset by tax benefits related to the American Jobs Creation Act of 2004. The effective income tax rates for the three and six months ended June 30, 2012 and July 2, 2011 are 37.0% and 37.0%, respectively.

Income tax payments in the three and six months ended June 30, 2012 totaled $13.7 million and $14.0 million, respectively. Income tax payments in the three and six months ended July 2, 2011 totaled $6.9 million and $7.0 million, respectively.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2008.

The Company does not believe it has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result in a material change to its financial position.

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

         NOTE 5 - EMPLOYEE BENEFIT PLANS

The Company has migrated its retirement benefit focus from defined benefit pension plans to defined contribution retirement plans, utilizing its current 401(k) plan.

Defined Benefit Plans

In 2007, the Company amended its hourly and salaried defined benefit pension plans to freeze the benefits for current participants and to discontinue the plans for all future employees. All active participants became fully vested in the amount of benefit services accrued through December 31, 2007 and no benefits have accrued since that date. Currently, the Company provides supplemental discretionary contributions to substantially all employees’ individual 401(k) accounts.

In future years, the Company may be required to make cash contributions to the two defined benefit pension plans. The annual contributions will be based on the amount of the unfunded plan liabilities derived from the frozen benefits and will not include liabilities for any future accrued benefits for any new or existing participants. The total amount of these future cash contributions will depend on the investment returns generated by the plans’ assets and the then applicable discount rates used to calculate the plans’ liabilities.

The Company plans to contribute approximately $3 million in 2012, which is expected to satisfy the required minimum contribution. Contributions in the three and six months ended June 30, 2012 totaled $0.6 million and $1.4 million, respectively.

The estimated cost of the frozen defined benefit plans for 2012 is $0.4 million.

Defined Contribution Plan

Effective January 1, 2007, the Company modified the terms of its 401(k) plan and now matches a certain portion of employee contributions. Expenses related to these matching contributions totaled $0.5 million and $1.1 million for the three and six months ended June 30, 2012 and $0.5 million and $1.0 million for the three and six months ended July 2, 2011, respectively. The Company plans to contribute approximately $1.2 million to the plan in matching employee contributions during the remainder of 2012.

In addition, the Company provided supplemental discretionary contributions to the 401(k) plan totaling $0.6 million and $1.3 million for the three and six months ended June 30, 2012 and $0.5 million and $1.1 million for the three and six months ended July 2, 2011, respectively. The Company plans to contribute supplemental contributions to the plan of approximately $1.2 million during the remainder of 2012.

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COMPENSATION PLANS (Tables)

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of changes in options outstanding under the plans

	Shares	Weighted Average Exercise Price	Grant Date Fair Value
Outstanding at December 31, 2011	328,700	$8.58	$4.42
Granted	-	-	-
Exercised	(46,956)	$7.81	$3.80
Expired	-	-	-
Outstanding at June 30, 2012	281,744	$8.71	$4.52

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Organization:

Organization:

Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of the Company’s total sales for the three and six months ended June 30, 2012 were firearms sales, and approximately 1% was investment castings sales. Export sales represent approximately 5% of total sales. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic.

The Company’s firearms are sold through a select number of independent wholesale distributors principally to the commercial sporting market.

The Company manufactures investment castings made from steel alloys for internal use in its firearms and utilizes available investment casting capacity to manufacture and sell castings to unaffiliated, third-party customers.

Fair Value of Financial Instruments:

Fair Value of Financial Instruments:

The carrying amounts of financial instruments, including cash, short-term investments, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term maturity of these items.

Short-term Investments:

Short-term Investments:

Short-term investments consist principally of United States Treasury instruments, all maturing within one year, and are recorded at cost plus accrued interest, which approximates market. The income from short-term investments is included in other income, net. The Company intends to hold these investments until maturity.

The Company evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when market conditions warrant such evaluation. The Company has determined that the carrying value of short-term investments has not been impaired.

Use of Estimates:

Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

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COMPENSATION PLANS

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

COMPENSATION PLANS

         NOTE 9 - COMPENSATION PLANS

In April 2007, the Company adopted and the shareholders approved the 2007 Stock Incentive Plan (the “2007 SIP”) under which employees, independent contractors, and non-employee directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may not require the satisfaction of performance objectives. Vesting requirements are determined by the Compensation Committee of the Board of Directors. The Company has reserved 2,550,000 shares for issuance under the 2007 SIP of which 839,000 remain available for future grants as of June 30, 2012.

Compensation costs related to all share-based payments recognized in the statements of operations aggregated $1.2 million and $2.1 million for the three and six months ended June 30, 2012, respectively, and $0.8 million and $1.2 million for the three and six months ended July 2, 2011, respectively.

Stock Options

A summary of changes in options outstanding under the plans is summarized below:

	Shares	Weighted Average Exercise Price	Grant Date Fair Value
Outstanding at December 31, 2011	328,700	$8.58	$4.42
Granted	-	-	-
Exercised	(46,956)	$7.81	$3.80
Expired	-	-	-
Outstanding at June 30, 2012	281,744	$8.71	$4.52

The aggregate intrinsic value (mean market price at June 30, 2012 less the weighted average exercise price) of options outstanding under the plans was approximately $8.8 million.

Restricted Stock Units

Beginning in the second quarter of 2009, the Company began granting restricted stock units to senior employees in lieu of incentive stock options. These awards vest dependent on the achievement of corporate objectives established by the Compensation Committee of the Board of Directors. Beginning in 2011, a three year vesting period was added to the performance criteria, which had the effect of requiring both the achievement of the corporate performance objectives and the satisfaction of the vesting period.

Restricted stock units issued during the three and six months ended June 30, 2012 were 57,956 and 149,725, respectively. Total compensation costs related to these restricted stock units are $2.8 million and $6.7 million, respectively. These costs are being recognized ratably over the vesting period which range from three to five years. Total compensation cost related to restricted stock units was $1.1 million and $1.9 million for the three and six months ended June 30, 2012, respectively, and $0.6 million and $0.8 million for the three and six months ended July 2, 2011, respectively.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

EARNINGS PER SHARE

         NOTE 7 - EARNINGS PER SHARE

Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated:

	Three Months Ended		Six Months Ended
	June 30, 2012	July 2, 2011	June 30, 2012	July 2, 2011
Numerator:
Net income	$18,014	$10,813	$33,494	$18,759
Denominator:
Weighted average number of common shares outstanding – Basic	19,155,127	18,897,879	19,135,946	18,824,585
Dilutive effect of options and restricted stock units outstanding under the Company’s employee compensation plans	528,152	362,614	490,875	175,266
Weighted average number of common shares outstanding – Diluted	19,683,279	19,260,493	19,626,821	18,999,851

 The dilutive effect of outstanding options and restricted stock units is calculated using the treasury stock method. There were no stock options that were anti-dilutive and therefore not included in the diluted earnings per share calculation.

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STOCK REPURCHASES

6 Months Ended

Jun. 30, 2012

Treasury Stock [Abstract]

STOCK REPURCHASES

         NOTE 8 - STOCK REPURCHASES

In the first quarter of 2011 the Company repurchased shares of its common stock. Details of these purchases are as follows: 

Period	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Program	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Program
1/4/11-1/29/11	133,400	$14.94	133,400
Total	133,400	$14.94	133,400	$8,000,000

These purchases were made with cash held by the Company and no debt was incurred.

During the six months ended June 30, 2012, the Company did not repurchase any shares of its common stock.

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OPERATING SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

OPERATING SEGMENT INFORMATION

NOTE 10 - OPERATING SEGMENT INFORMATION

The Company has two reportable segments: firearms and investment castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a select number of independent wholesale distributors primarily located in the United States. The investment castings segment manufactures and sells steel investment castings.

Selected operating segment financial information follows:

(in thousands)	Three Months Ended		Six Months Ended
	June 30, 2012	July 2, 2011	June 30, 2012	July 2, 2011
Net Sales
Firearms	$118,147	$78,471	$228,934	$152,912
Castings
Unaffiliated	1,422	1,151	2,972	2,151
Intersegment	6,547	4,718	12,929	9,104
	7,969	5,869	15,901	11,255
Eliminations	(6,547)	(4,718)	(12,929)	(9,104)
	$119,569	$79,622	$231,906	$155,063
Income (Loss) Before Income Taxes
Firearms	$28,722	$17,998	$53,616	$30,750
Castings	(720)	(150)	(1,163)	(447)
Corporate	592	(685)	712	(527)
	$28,594	$17,163	$53,165	$29,776
			June 30, 2012	December 31, 2011
Identifiable Assets
Firearms			$112,685	$103,545
Castings			5,692	5,290
Corporate			112,032	97,675
			$230,409	$206,510

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COMPENSATION PLANS (Detail Textuals 1) (Stock Incentive Plan 2007, USD $) In Millions, unless otherwise specified		12 Months Ended
	Jun. 30, 2012 Stock Options	Dec. 31, 2011 Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
The aggregate intrinsic value of options outstanding	$ 8.8
Vesting period of options		3 years

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Schedule of reconciliation of the numerator and denominator for basic and diluted earnings per share

	Three Months Ended		Six Months Ended
	June 30, 2012	July 2, 2011	June 30, 2012	July 2, 2011
Numerator:
Net income	$18,014	$10,813	$33,494	$18,759
Denominator:
Weighted average number of common shares outstanding – Basic	19,155,127	18,897,879	19,135,946	18,824,585
Dilutive effect of options and restricted stock units outstanding under the Company’s employee compensation plans	528,152	362,614	490,875	175,266
Weighted average number of common shares outstanding – Diluted	19,683,279	19,260,493	19,626,821	18,999,851

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INVENTORIES (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Inventory at FIFO
Finished products	$ 2,458	$ 3,318
Materials and work in process	45,338	45,686
Gross inventories	47,796	49,004	[1]
Less: LIFO reserve	(37,384)	(37,476)	[1]
Less: excess and obsolescence reserve	(1,202)	(1,311)	[1]
Net inventories	$ 9,210	$ 10,217	[1]

[1] Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) (USD $) In Thousands, unless otherwise specified	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2011	$ 23,383	$ 10,454	$ 168,981	$ (37,884)	$ (27,543)	$ 137,391	[1]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income and comprehensive income			33,494			33,494
Dividends paid			(10,272)			(10,272)
Recognition of stock-based compensation expense		2,104				2,104
Employee withholding tax related to share-based compensation		(1,045)				(1,045)
Tax benefit realized from exercise of stock options and vesting of RSU's		1,037				1,037
Common stock issued- compensation plans	77	(77)
Balance at Jun. 30, 2012	$ 23,460	$ 12,473	$ 192,203	$ (37,884)	$ (27,543)	$ 162,709

[1] Note: The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

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LINE OF CREDIT

6 Months Ended

Jun. 30, 2012

Line Of Credit Facility [Abstract]

LINE OF CREDIT

 NOTE 4 - LINE OF CREDIT

In December 2011, the Company renewed a $25 million credit facility with a bank. This facility is renewable annually and now terminates on June 15, 2013. Borrowings under this facility bear interest at LIBOR (1.07% at June 30, 2012) plus 200 basis points. The Company is charged three-eighths of a percent (0.375%) per year on the unused portion. At June 30, 2012 and December 31, 2011, the Company was in compliance with the terms and covenants of the credit facility, which remains unused.

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LINE OF CREDIT (Details) (Credit facility, USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Credit facility
Line of Credit Facility [Line Items]
Credit facility with a bank		$ 25
Description of interest rate of credit facility	LIBOR
Line of credit interest rate (in percent)	1.07%
Line of credit basis points	2.00%
Line of credit unused portion per year (in percent)	0.375%

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OPERATING SEGMENT INFORMATION (Detail Textuals)	6 Months Ended
	Jun. 30, 2012 ReportableSegments
Segment Reporting [Abstract]
Reportable segments	2

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Schedule of inventories

	June 30, 2012	December 31, 2011
Inventory at FIFO
Finished products	$   2,458	$   3,318
Materials and work in process	45,338	45,686
Gross inventories	47,796	49,004
Less: LIFO reserve	(37,384)	(37,476)
Less: excess and obsolescence reserve	(1,202)	(1,311)
Net inventories	$  9,210	$ 10,217