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Restructuring
 6 Months Ended
Sep. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
As part of our restructuring plans, we have and will incur severance and employee related costs, professional fees, ROU asset impairments and other exit and disposal costs which are recorded in Selling, general, and administrative in the unaudited condensed consolidated statements of comprehensive income. Severance and employee related costs consist primarily of salary continuation benefits, outplacement services and continuation of health benefits. Severance and employee related benefits are pursuant to our severance plan and are accounted for in accordance with ASC 712, Compensation - Nonretirement Postemployment Benefits, based upon the characteristics of the termination benefits being provided in the restructuring, pursuant to our severance plan. Severance and employee related costs are recognized when the benefits are determined to be
probable of being paid and reasonably estimable. Professional fees, contract termination costs and other exit and disposal costs are accounted for in accordance with ASC 420, Exit or Disposal Cost Obligations and are recognized as incurred. Asset impairments are accounted for in accordance with ASC 360-10, Impairment and Disposal of Long-Lived Assets. ROU asset impairments are accounted for in accordance with ASC 842, Leases. Restructuring accruals are based upon management estimates at the time and are subject to change depending upon changes in facts and circumstances subsequent to the date the original liability was recorded.
During fiscal year 2024, we initiated the GEAR Up transformation program. GEAR Up is an efficiency and cost savings initiative program, to accelerate growth and transformation within our Revelyst Outdoor Performance, Revelyst Adventure Sports, and Revelyst Precision Sports Technology reportable segments. We made changes to the structure of our organization during the fourth fiscal quarter of 2024, which resulted in our previous Revelyst reportable segment being reorganized into three new reportable segments. We further finalized plans to centralize certain functions under shared services to better support our segments. We also announced plans to geographically consolidate the businesses within Revelyst Adventure Sports, Revelyst Outdoor Performance and Revelyst Precision Sports Technology. These geographic relocations are expected to be completed during fiscal year 2025.
For GEAR Up, we are estimating pre-tax restructuring charges of approximately $40,000 to $50,000 over the duration of the plan. We expect these charges to be completed during fiscal 2027. All pre-tax restructuring charges will be recorded as corporate expense, and not allocated to our reportable segments.
During the three and six months ended September 30, 2024, we incurred $7,093 and $12,283 of pre-tax restructuring costs in connection with GEAR Up, which are recorded in Selling, general, and administrative expense in the unaudited condensed consolidated statements of comprehensive income. In the fourth quarter of fiscal year 2023, we announced a cost reduction and earnings improvement program. That program was substantially completed as of March 31, 2024, with only immaterial accruals related to employee costs remaining as of September 30, 2024.
The following tables summarize restructuring charges recorded as a result of our restructuring programs for the periods presented:
Three months endedSix months ended
GEAR Up restructuring costsSeptember 30, 2024September 24, 2023September 30, 2024September 24, 2023Incurred since inception
Impairment on technology assets$— $— $— $— $306 
Employee severance and related expenses
2,125 — 2,541 — 8,597 
Professional fees
1,527 — 2,494 — 4,214 
Right-of-use asset impairments
— — 1,612 — 1,741 
Long-lived asset impairments— — 95 — 95 
Contract terminations3,340 — 4,970 — 4,970 
Other
101 — 571 — 639 
Total$7,093 $— $12,283 $— $20,562 
The tables below present a roll forward of our accruals or (deposits) related to GEAR Up, which are included in Accounts payable, Other current liabilities, or Other current assets:
GEAR Up
Balance as of March 31, 2024
Charges
Payments
Balance as of September 30, 2024
Employee severance and related expenses
$5,399 $2,442 $(6,404)$1,437 
Professional fees(968)1,900 (5,940)(5,008)
Contract terminations— 4,763 (1,662)3,101 
Other
7 499 (506)— 
Total
$4,438 $9,604 $(14,512)$(470)