Segment Information

9 Months Ended

Jan. 31, 2016

Segment Reporting [Abstract]

Segment Information

(11) Segment Information:

The firearms segment consists of products and services manufactured in and sold from our Springfield, Massachusetts; Houlton, Maine; and Deep River, Connecticut facilities, which includes firearms, handcuffs, and other related products sold through a distribution chain and direct sales to consumers and international, state, and federal governments. The accessories segment consists of hunting and shooting accessories developed and marketed from our Columbia, Missouri facility. Operating costs are reported based on the activities performed within each segment.

Segment assets are those directly used in or clearly allocable to an operating segment’s operations. Total assets for our firearms segment as of January 31, 2016 were $429.9 million. Included in the assets of our firearms segment were intangible assets totaling $3.1 million; property, plant, and equipment totaling $133.7 million; and goodwill totaling $13.8 million. Total assets for our accessories segment as of January 31, 2016 were $147.2 million. Included in the assets of the accessories segment were intangible assets totaling $61.9 million; property, plant, and equipment totaling $2.5 million; and goodwill totaling $62.4 million.

Results by business segment are presented in the following tables for the three months ended January 31, 2016 and 2015 (in thousands):

	For the Three Months Ended January 31, 2016 (a)
	Firearms		Accessories			Intersegment eliminations			Total
Revenue from external customers	$	194,650	$	16,136		$                       —			$	210,786
Intersegment revenue		795		66			(861	)		—
Total net sales		195,445		16,202			(861	)		210,786
Cost of sales		117,284		7,767			(923	)		124,128
Gross margin		78,160		8,436			62			86,658
Operating income		49,137		949	(b)		62			50,148
Income tax expense		16,427		203			—			16,630

	For the Three Months Ended January 31, 2015 (c)
	Firearms		Accessories				Intersegment eliminations		Total
Revenue from external customers	$	124,490	$	6,060			$                       —		$	130,550
Intersegment revenue		—		—				—		—
Total net sales		124,490		6,060				—		130,550
Cost of sales		81,958		4,768		(d)		—		86,726
Gross margin		42,532		1,292		(d)		—		43,824
Operating income		17,571		(1,960	)	(e)		—		15,611
Income tax expense		5,280		(726	)			—		4,554

Results by business segment are presented in the following tables for the nine months ended January 31, 2016 and 2015 (in thousands):

	For the Nine Months Ended January 31, 2016 (a)
	Firearms		Accessories			Intersegment eliminations			Total
Revenue from external customers	$	453,961	$	47,830		$                       —			$	501,791
Intersegment revenue		795		709			(1,504	)		—
Total net sales		454,756		48,539			(1,504	)		501,791
Cost of sales		278,147		23,405			(1,504	)		300,048
Gross margin		177,174		24,569			—			201,743
Operating income		99,104		2,643	(b)		—			101,747
Income tax expense		31,110		734			—			31,844

	For the Nine Months Ended January 31, 2015 (c)
	Firearms		Accessories				Intersegment eliminations		Total
Revenue from external customers	$	364,805	$	6,060			$                       —		$	370,865
Intersegment revenue		—		—				—		—
Total net sales		364,805		6,060				—		370,865
Cost of sales		238,315		4,768		(d)		—		243,083
Gross margin		126,490		1,292		(d)		—		127,782
Operating income		54,018		(1,960	)	(e)		—		52,058
Income tax expense		17,252		(726	)			—		16,526

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(a) We allocate all of corporate overhead expenses, such as general and administrative expenses and other corporate-level expenses, to both our firearm and accessories segments.

(b) Amount includes $2.6 million and $7.2 million for the three and nine months ended January 31, 2016, respectively, of amortization of intangible assets identified as a result of the BTI Acquisition.

(c) Results of operations for the three and nine months ended January 31, 2015 include activity for the period subsequent to the BTI Acquisition. Due to the timing of the BTI Acquisition, the segment data above includes all corporate overhead expenses in our firearms segment.

(d) Amount includes $1.8 million of additional cost of goods sold from the fair value step-up in inventory at the date of the BTI Acquisition.

(e) Amount includes $1.3 million for the three and nine months ended January 31, 2015, of amortization of intangible assets identified as a result of the BTI Acquisition.