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Strong brand recognition, with the ability to command a leading market share position across several categories. For example, our Federal ammunition brand has the number one market share in ammunition; Bushnell Golf maintains a leading market share position in laser rangefinders; CamelBak is a leading provider of hydration system solutions for individuals in the hiking, cycling, and winter sports markets; Bell is a leading provider of helmets for individuals in the cycling market, and has a number one market share in motocross helmets; Giro is a leading provider of helmets, footwear, and apparel for individuals in the cycling markets and helmets and goggles for the winter sports markets; Primos is the number one market share leader in game calls; and Hoppe's brand has a number one market share in gun cleaning solutions and accessories.

•	Better insight into consumer preferences and market dynamics through information sharing across our portfolio. Our strategic relationships with key accounts combined with our world-class customer service model deliver consumer insights into our aligned product development organization and process. This information helps us develop and maintain a robust new product pipeline.

•	For the outdoor and fitness enthusiast, Camelbak introduced the Horizon drinkware collection, featuring durable full powder coat finish to keep drinks tasting great, while the double-wall vacuum insulated stainless steel keeps them hot or cold for hours on end. Individual items in the collection include, wine bottles, camp mugs and tumblers.

•	For hunters, Federal launched the all-new Terminal Ascent, which seamlessly mates a tough, bonded hunting bullet with an accurate, match-style projectile without sacrificing any aspect of performance. Unlike other so-called long-range hunting bullets that can fail to perform on impact at lower velocities, Terminal Ascent expands as designed at close, moderate and long ranges.

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For muzzleloaders, Federal introduced the Premium FireStick, which is the critical component of a whole new ignition system that uses an encapsulated propellant charge that loads from the breech, with the bullet loaded from the muzzle. The charge is completely impervious to moisture and loaded with clean-burning Hodgdon Triple Eight powder to the same tight tolerances as Federal Premium factory ammunition, ensuring shot-to-shot consistency and accuracy muzzleloaders have never experienced.

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For trail riding enthusiasts, Giro’s Manifest Spherical helmet uses a ball-and-socket design powered by MIPS®, the market-leading brain protection system that helps to reduce rotational forces. Spherical Technology allows the outer liner to rotate around the inner liner during a crash and also eliminates contact with a hard-plastic slip-plane. In addition to leading head protection, the Manifest offers wide-open airflow thanks to the AURA reinforcing arch, which bolsters structural integrity while allowing air to flow into the massive Wind Tunnel vents. The helmet provides a comfortable, secure fit with the easy fit and positioning adjustments built into the Roc Loc Trail Air fit system and plush, antimicrobial XT2 padding for exceptional sweat absorption.

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For golfers, Bushnell Golf introduced the Wingman Featuring high quality audio combined with having the ability to receive audible GPS distances, the Wingman offers golfers a “first of its kind” experience. Wingman also features our integrated BITE magnetic cart mount to provide golfers the convenience of having the speaker mounted right on the cart bar. The Wingman features outstanding sound quality so you can listen to your music, and get audible GPS distances when connected to your music source, and the Bushnell Golf App.

•	The new Tour V5 features include an integrated BITE magnetic cart mount, PinSeeker with Visual JOLT and improved magnification and clarity. Also available in Tour V5 Shift featuring our patented Slope Technology that provides golfers the most precise compensated distances in golf.

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•	Camp Chef introduced the Woodwind WIFI collection. Equipped with our new PID and WIFI enabled controller, you are able to change the temperature, set timers, and receive notifications when your meat reaches your set temperature and tailor the grill’s Smoke Number on the Camp Chef Connect App.

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For our law enforcement and military customers, Eagle introduced the T-series holsters. With its streamlined thumb-activated retention, the T-Series keeps firearms at the ready while maintaining total security. The combination of a drawing motion that operates off of the Master Grip Principle and a combination of reinforced outer polymer and smooth, sound-dampening, hydrophobic lining ensures the T-Series will perform no matter the elements and situation.

•	Optimize our Organizational Structure: Investing in talent while reducing costs and building a culture of agility, efficiency, and innovation.

•	Create Leading Centers of Excellence in Operational Excellence and E-Commerce: Leveraging our shared resources, expertise and scale to:

◦	achieve operational excellence and improve margins across each of our brands; and

◦	accelerate and enhance e-commerce, direct-to-consumer and digital marketing capabilities across all of our brands.

•	Reducing Financial Leverage: Strengthening the Company’s balance sheet, improving financial flexibility, and paying down debt though enhanced cash-flow generation and the divestiture of non-core businesses.

•	Returning to Organic Growth: Identifying and capturing opportunities for organic growth and market share expansion by:

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◦	Allocating capital to our brands to aid in their development of new and innovative products that serve the needs and preferences of their core consumers; and

◦	Leveraging and expanding our distribution channels to expand the commercial presence of all of our brands and efficiently deliver product to meet consumer demand and shopping behavior.

•	Exploring Tuck-in Acquisitions: After reducing financial leverage, deploy a stronger balance sheet to acquire smaller, complimentary businesses that, through the help of our Centers of Excellence, we can take to the next level in terms of sales and profitability.

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•	market acceptance of our products and services;

•	general economic conditions;

•	the timing of large domestic and international orders;

•	cancellation of existing orders;

•	the outcome of any existing or future litigation;

•	adverse publicity surrounding our products, the safety of our products or the use of our products;

•	changes in our sales mix;

•	new product introduction costs;

•	complexity in our integrated supply chain;

•	increased raw material expenses;

•	changes in amount and/or timing of our operating expenses;

•	natural disasters and public health crises or other significant catastrophic events, such as the global COVID-19 pandemic, in markets in which we, our customers, suppliers and manufacturers operate; and

•	changes in laws and regulations that may affect the marketability of our products.

•	an increase or decrease in consumer demand for our products or for the products of our competitors;

•	our failure to accurately forecast customer acceptance of new products;

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•	new product introductions by competitors;

•	changes in our relationships with customers;

•	changes in general market conditions or other factors, which may result in cancellations of orders or a reduction or increase in the rate of reorders placed by retailers, including as a result of natural disasters and public health crises or other significant catastrophic events, such as the global COVID-19 pandemic;

•	changes in laws and regulations governing the activities for which we sell products, such as hunting and shooting sports;

•	weak economic conditions or consumer confidence, which could reduce demand for discretionary items such as our products; and

•	the domestic political environment, including debate over the regulation of ammunition and related products.

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•	issues related to managing international operations;

•	potentially adverse tax developments;

•	lack of sufficient protection for intellectual property in some countries;

•	currency exchange;

•	import and export controls;

•	social, political, and economic instability in the countries in which we operate;

•	changes in economic conditions;

•	the occurrence of natural disasters, public health crises or other significant catastrophic events, such as the global COVID-19 pandemic, in countries in which we operate;

•	local laws and regulations, including those governing labor, product safety and environmental protection;

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•	changes to international treaties and regulations; and

•	limitations on our ability to efficiently repatriate cash from our foreign operations.

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•	determine the appropriate creative message, media mix and markets for advertising, marketing and promotional initiatives and expenditures;

•	identify the most effective and efficient level of spending in each market, medium and specific media vehicle; and

•	effectively manage marketing costs, including creative and media expenses, in order to maintain acceptable customer acquisition costs.

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•	incur or guarantee additional indebtedness or sell disqualified or preferred stock;

•	pay dividends on, make distributions in respect of, repurchase or redeem, capital stock;

•	make investments or acquisitions;

•	sell, transfer or otherwise dispose of certain assets;

•	create liens;

•	enter into sale/leaseback transactions;

•	enter into agreements restricting the ability to pay dividends or make other intercompany transfers;

•	consolidate, merge, sell or otherwise dispose of all or substantially all of our or our subsidiaries' assets;

•	enter into transactions with affiliates;

•	prepay, repurchase or redeem certain kinds of indebtedness;

•	issue or sell stock of our subsidiaries; and

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•	significantly change the nature of our business.

•	limited in how we conduct our business and pursue our strategy;

•	unable to raise additional debt or equity financing that we may require to operate during general economic or business downturns; or

•	unable to compete effectively or to take advantage of new business opportunities.

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•	allow our Board of Directors to authorize for issuance, without stockholder approval, preferred stock, the rights of which will be determined at the discretion of the Board of Directors and, if issued, could operate as a “poison pill” to dilute the stock ownership of a potential hostile acquirer to prevent an acquisition that our Board of Directors does not approve;

•	prohibit our stockholders from taking action by written consent and require that stockholder action must take place at a duly called annual or special meeting of our stockholders;

•	establish how stockholders may present proposals or nominate directors for election at meetings of our stockholders;

•	mandate that stockholders may only remove directors for cause;

•	grant exclusive privilege (subject to certain limited exceptions) to our directors, and not our stockholders, to fill vacancies on our Board of Directors;

•	provide that only our Board of Directors, Chairman of our Board of Directors, our Chief Executive Officer or the President (in the absence of the Chief Executive Officer) are entitled to call a special meeting of our stockholders; and

•	limit our ability to enter into business combination transactions with certain stockholders.

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•	Standard & Poor's Composite 500 Index, a broad equity market index;

•	Standard & Poor's Small-Cap 600 Index, an equity market index for entities with similar capitalization levels.

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(1)	In fiscal 2017, we finalized a settlement of claims that we brought against the previous owner of Bushnell Holdings and third-party insurance providers relating to certain disputes arising under the purchase agreement with respect to the acquisition.

(2)	In fiscal 2020, 2019, 2018, and 2017, we recorded impairment charges of $155.6 million, $456.0 million, $152.4 million, and $449.2 million, respectively, for reporting units in our historical Outdoor Products segment See Note 11, Goodwill and Intangible Assets, to the consolidated financial statements included in this Annual Report for further detail.

(3)	In fiscal 2019, we recognized an impairment of $80.6 million on held for sale goodwill related to our firearms reporting unit within the historical Shooting Sports segment.

(4)	In fiscal 2020 and 2019, we recognized an impairment on held for sale assets of $9.4 million and $39.6 million related to our firearms reporting unit. In fiscal 2019, we recognized an impairment on held for sale assets of $44.9 million related to the loss on the sale of our Eyewear brands.

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(5)

In fiscal 2020, we adopted ASU No. 2016-02, "Leases (Topic 842)" ("Topic 842") which requires all lessees to recognize a right-of-use asset and a lease liability for all leases with a term greater than 12 months. As of March 31, 2020, the consolidated balance sheet includes a right-of-use asset of $69.0 million and leases liabilities of $84.5 million. For further discussion, see Note 3, Leases, in the consolidated financial statements included in this Annual Report.

(6)	On July 5, 2019, Vista Outdoor Inc. and one of its subsidiaries, Vista Outdoor Operations LLC, sold our Firearms business. The fiscal 2019 balance sheet included assets held for sale of $207.6 million and liabilities held for sale of $46.0 million related to this business. See Note 7, Divestitures, the consolidated financial statements included in this Annual Report.

(7)	On August 31, 2018, we completed the sale of our Eyewear brands. The fiscal 2018 balance sheet included assets held for sale of $200.4 million and liabilities held for sale of $42.2 million related to this business. See Note 7, Divestitures, in the consolidated financial statements included in this Annual Report.

(8)

During fiscal 2020, the Term Loan and the Junior Term Loan were paid in full, using proceeds from the sale of our Firearms business, cash generated from operations and advances from our ABL Revolving Credit Facility. The fiscal 2019 balance sheet includes $144.5 million of long-term debt that was paid during fiscal 2020. See Note 13, Long-term Debt, in the consolidated financial statements included in this Annual Report.

(9)	Capital expenditures are shown net of capital expenditures included in accounts payable and financed through operating leases.

(10)	Represents EBIT expressed as a percentage of sales.

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Shooting Sports generated approximately 68% of our sales in fiscal 2020. Shooting Sports is comprised of ammunition and hunting shooting accessories product lines. Ammunition products include centerfire ammunition, rimfire ammunition, shotshell ammunition and reloading components. Hunting accessories products include high-performance hunting arrows, game calls, hunting blinds, game cameras, and decoys, and optics products such as binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, and premium gun care products and tactical products such as holsters, duty gear, bags and packs. Our Firearms business was divested early in the second quarter ending September 29, 2019.

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Outdoor Products, which generated approximately 32% of our sales in fiscal 2020. Outdoor Products is comprised of sports protection, outdoor cooking, golf, and hydration product lines. Sports protection includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Outdoor cooking includes grills and stoves. Golf products include laser rangefinders and other golf technology products. Hydration products include hydration packs and water bottles. Our Eyewear brands were divested during the second quarter of fiscal year 2019.

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•	Optimize our Organizational Structure: Investing in talent while reducing costs and building a culture of agility, efficiency, and innovation.

•	Create Leading Centers of Excellence in Operational Excellence and E-Commerce: Leveraging our shared resources, expertise and scale to:

◦	achieve operational excellence and improve margins across each of our brands; and

◦	accelerate and enhance e-commerce, direct-to-consumer and digital marketing capabilities across all of our brands.

•	Reducing Financial Leverage: Strengthening the Company’s balance sheet, improving financial flexibility, and paying down debt though enhanced cash-flow generation and the divestiture of non-core businesses.

•	Returning to Organic Growth: Identifying and capturing opportunities for organic growth and market share expansion by:

◦	Allocating capital to our brands to aid in their development of new and innovative products that serve the needs and preferences of their core consumers; and

◦	Leveraging and expanding our distribution channels to expand the commercial presence of all of our brands and efficiently deliver product to meet consumer demand and shopping behavior.

•	Exploring Tuck-in Acquisitions: After reducing financial leverage, deploy a stronger balance sheet to acquire smaller, complimentary businesses that, through the help of our Centers of Excellence, we can take to the next level in terms of sales and profitability.

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Annual sales were $1,755,871 and $2,058,528 for the fiscal years ended March 31, 2020 and 2019, respectively. The decrease was driven by lower Shooting Sports sales of $220,908 due to the sale of our Firearms business in July 2019, lower demand for centerfire ammunition in the first half of the year, lower demand for hunting and shooting accessories throughout the year and for the additional reasons described in the Results of Operations section. Outdoor Products sales decreased $81,749 due to the sale of our Eyewear brands in September 2018, lower demand for some of our product lines throughout the year, and for the additional reasons described in the Results of Operations section.

•	Gross profit was $358,766 and $415,688 for the fiscal years ended March 31, 2020 and 2019, respectively. The decrease in gross profit was primarily caused by the decreases in sales volumes discussed above as well as increased promotional activity. The decreases were partially offset by increases in operating efficiencies, lower commodity prices and the quality and mix of sales.

•	EBIT totaled $(132,236) and $(617,081) for the fiscal years ended March 31, 2020 and 2019, respectively. The decrease in loss is primarily due the reasons described above regarding sales and gross profit, and because of a decrease in goodwill and intangibles impairment, as well as impairments of held-for-sale assets, and for the reasons described in the Results of Operations section.

•	The increase in the current year tax rate to 9.3% from 3.8% in the prior year ended March 31, 2019 is primarily due to the release of uncertain tax positions in the current period and the impact of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

•	During the quarter ended March 31, 2020, Vista Outdoor recorded a $155.6 million impairment of goodwill and identifiable indefinite-lived intangible assets related to our Hunting and Shooting Accessories, Action Sports, Hydration and historical Outdoor Recreation reporting units.

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On July 5, 2019, Vista Outdoor Inc. and one of its subsidiaries, Vista Outdoor Operations LLC, sold our Firearms business, which was part of our historic Shooting Sports segment and comprised our Firearms reporting unit, for a total purchase price of $170,000. Prior to the sale we recorded impairment on assets held for sale of $9.4 million and $39.6 million during the fiscal years ended March 31, 2020 and 2019, respectively, and $80.6 million of impairment of held-for-sale goodwill during the fiscal year ended March 31, 2019. This divestiture was part of our transformation strategy to right-size our portfolio to focus on brands where we are, or can be, market leaders. The net proceeds were used to reduce our outstanding debt.

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(1)	Includes interest on variable rate debt calculated based on interest rates at March 31, 2020.

(2)	Does not include future expected sublease income of $5,302.

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Nature of Operations and Basis of Presentation. Vista Outdoor Inc. (together with our subsidiaries, "Vista Outdoor", "we", "our", and "us") is a leading global designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets. We operate in two segments, Shooting Sports and Outdoor Products. Vista Outdoor is headquartered in Anoka, Minnesota and has 14 manufacturing and distribution facilities in the United States, Canada, Mexico, and Puerto Rico along with international customer service, sales and sourcing operations in Asia and Europe. Vista Outdoor was incorporated in Delaware in 2014. The consolidated financial statements reflect our financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States.

Principles of Consolidation. The consolidated financial statements include our net assets and results of operations as described above. All intercompany transactions and accounts within the businesses have been eliminated.

Fiscal Year. References in this report to a particular fiscal year refer to the year ended March 31 of that calendar year. Our interim quarterly periods are based on 13-week periods and end on Sundays.

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. We review our estimates to ensure that these estimates property reflect changes in our business or as new information becomes available.

Revenue Recognition. 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, firearms and ammunition excise tax and other similar taxes are excluded from revenue. Revenue recognition is discussed in further detail in Note 5, Revenue Recognition.

Cost of Sales. Cost of sales includes material, labor, and overhead costs associated with product manufacturing, including depreciation, amortization, purchasing and receiving, inspection, warehousing, product liability, warranty, and inbound and outbound shipping and handling costs.

Research and Development Costs. Research and development costs consist primarily of compensation and benefits and experimental work materials for our employees who are responsible for the development and enhancement of new and existing products. Research and development costs incurred to develop new products and to enhance existing products are charged to expense as incurred.

Selling, General, and Administrative Expense. Selling, general, and administrative expense includes, among other items, administrative salaries, benefits, commissions, advertising, insurance, and professional fees.

Advertising Costs. Advertising and promotional costs including print ads, commercials, catalogs, and brochures are expensed in the period when the first advertisement is run. Our co-op program is structured so that certain customers are eligible for reimbursement for certain types of advertisements on qualifying product purchases and are accrued as purchases are made. Advertising costs totaled $37,950, $66,436, and $69,636 for the years ended March 31, 2020, 2019, and 2018, respectively.

Cash Equivalents. Cash equivalents are all highly liquid cash investments purchased with original maturities of three months or less.

Allowance for Doubtful Accounts. We maintain an allowance for doubtful receivables for estimated losses resulting from the inability of our trade customers to make required payments. We provide an allowance for specific customer accounts where

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collection is doubtful and also provide an allowance for customer deductions based on historical collection and write-off experience. Additional allowances would be required if the financial conditions of our customers deteriorated.

Inventories. Inventories are stated at the lower of cost, determined using the first-in, first-out ("FIFO") method, or net realizable value. Inventory costs associated with work in process inventory and finished goods include material, labor, and manufacturing overhead, while costs associated with raw materials and purchased finished goods include material and inbound freight costs. We provide inventory allowances for any excess and obsolete inventories and periodically write inventory amounts down to market when costs exceed market value.

Warranty Costs. We provide consumer warranties against manufacturing defects on certain products within the Shooting Sports and Outdoor Products segments with warranty periods typically ranging from one year to the expected lifetime of the product. The estimated costs of such product warranties are recorded at the time the sale is recorded. Estimated future warranty costs are accrued at the time of sale based upon actual past experience, our current production environment as well as specific and identifiable warranties as applicable. See Note 12, Other Current and Non-current Liabilities, for additional detail.

Fair Value Measurements. 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. We measure and disclose the fair value of nonfinancial and financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. This hierarchy requires the use of observable market data when available. The measurement of assets and liabilities at fair value are classified using the following 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.

Level 3—One or more significant inputs to the valuation model are unobservable.

See Note 2, Fair Value of Financial Instruments, for additional disclosure regarding fair value of financial instruments.

Accounting for Goodwill and Indefinite Lived Intangible Assets

Goodwill—We test goodwill for impairment on the first day of our fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. Goodwill is assigned to our reporting units, which are our operating segments, or components of an operating segment, that constitute a business for which discrete financial information is available, and for which segment management regularly reviews the operating results. Based on this analysis, we had five reporting units, as of the fiscal 2020 testing date. Subsequent to the annual testing date we had additional changes in operating segments and reporting units. At the end of the fiscal year, we had six operating segments and reporting units.

During the annual impairment review process we have the option to first perform a qualitative assessment (commonly referred to as “step zero”) over relative events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value or to perform a quantitative assessment (“step one”) where we estimate the fair value of each reporting unit using both an income and market approach. We completed a step one assessment as of January 1, 2020, and recognized goodwill impairment charges of $121,329. See Note 11, Goodwill and Intangible Assets, for discussion and details.

To assess the recoverability of our goodwill, we determine the estimated fair value of each reporting unit and compare it to the carrying value of the reporting unit, including goodwill. When fair value is less than the carrying value of the net assets and related goodwill, an impairment charge is recognized for the excess. The fair value of each reporting unit is determined using both an income and market approach. The value estimated using a discounted cash flow model is weighted equally against the estimated value derived from the guideline company market approach method. This market approach method estimates the price reasonably expected to be realized from the sale of the reporting unit based on comparable companies.

In developing the discounted cash flow analysis, our assumptions about future revenues and expenses, capital expenditures, and changes in working capital are based on our plan, as reviewed by the Board of Directors, and assume a

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terminal growth rate thereafter. A separate discount rate is determined for each reporting unit and these cash flows are then discounted to determine the fair value of the reporting unit. The discounted cash flow analysis is derived from valuation techniques in which one or more significant inputs are not observable (Level 3 fair value measures).

Indefinite Lived Intangible Assets—Indefinite lived intangibles are not amortized and are tested for impairment annually on the first day of the fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the assets might be impaired.

Our identifiable intangibles with indefinite lives consist of certain trademarks and tradenames. The impairment test consists of a comparison of the estimated fair value of the specific intangible asset with its carrying value. The estimated fair value of these assets is measured using the relief-from-royalty method which assumes that the asset has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from them.

This method requires that we estimate the future revenue for the related brands and technology, the appropriate royalty rate, and the weighted average cost of capital. We base our fair values and estimates on assumptions we believe to be reasonable, but which are unpredictable and inherently uncertain. If the carrying amount of an asset is higher than its fair value, an impairment exists and the asset would be recorded at the estimated fair value. Due to the results of our annual step one test, we recognized impairment charges related to our indefinite lived intangibles of $34,259. See Note 11, Goodwill and Intangible Assets, for discussion and details.

Our assumptions used to develop the discounted cash flow analysis require us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital, and the appropriate discount rate. The projections also take into account several factors including current and estimated economic trends and outlook, costs of raw materials and other factors that are beyond our control. If the current economic conditions were to deteriorate, or if we were to lose significant business, causing a reduction in estimated discounted cash flows, it is possible that the estimated fair value of certain reporting units or tradenames could fall below their carrying value resulting in the necessity to conduct additional impairment tests in future periods. We continually monitor the reporting units and tradenames for impairment indicators and update assumptions used in the most recent calculation of the estimated fair value of a reporting unit or tradenames as appropriate.

Amortizing Intangible Assets, Long-Lived Assets. Our primary identifiable intangible assets include trademarks and tradenames, patented technology, and customer relationships. Our long-lived assets consist primarily of property, plant and equipment, amortizing right-of-use asset related to our operating leases and amortizing costs related to cloud computing arrangements. We periodically evaluate the recoverability of the carrying amount of our long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable or exceeds its fair value.

Derivatives and Hedging. We mitigate the impact of changes in interest rates and commodity prices affecting the cost of raw materials with interest rate swaps and commodity forward contracts that are accounted for as designated hedges pursuant to ASC Topic 815, “Derivatives and Hedging” ("ASC Topic 815"). ASC Topic 815 requires that an entity recognize all derivatives as either assets or liabilities on the balance sheet, measure those instruments at fair value and recognize changes in the fair value of derivatives in earnings in the period of change unless the derivative qualifies as designated cash flow hedge that offsets certain exposures. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as a cash flow hedge. Derivatives that are not elected for hedge accounting treatment are recorded immediately in earnings. See Note 4, Derivative Financial Instruments, for additional information.

We would discontinue hedge accounting prospectively (i) if it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if it is determined that designation of the derivative as a hedge instrument is no longer appropriate. The fair value of our forward contracts based on pricing models using current market rates. These contracts are classified under Level 2 of the fair value hierarchy (see Note 2, Fair Value of Financial Instruments).

Stock-Based Compensation. We account for our share-based compensation arrangements in accordance with ASC Topic 718, "Compensation—Stock Compensation" ("ASC Topic 718") which requires the measurement and recognition of compensation expense for all share-based payment awards to employees and directors based on estimated fair values, and ASU

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No. 2014-12 for stock awards that are subject to performance measures. Our stock-based compensation plans, which are described more fully in Note 17, Stockholders' Equity, provide for the grant of various types of stock-based incentive awards, including performance awards, total stockholder return performance awards ("TSR awards"), restricted stock/restricted stock units, and options to purchase common stock. The types and mix of stock-based incentive awards are evaluated on an ongoing basis and may vary based on our overall strategy regarding compensation, including consideration of the impact of expensing stock awards on our results of operations.

Performance awards are valued at the fair value of our stock as of the grant date and expense is recognized based on the number of shares expected to vest under the terms of the award under which they are granted. We use an integrated Monte Carlo simulation model to determine the fair value of the TSR awards and the calculated fair value is expensed over the vesting period. Restricted stock issued vests over periods ranging from one to three years and is valued based on the market value of our stock on the grant date. The estimated grant date fair value of stock options is expensed on a straight-line basis over the requisite service period, generally one to three years. The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. See Note 17, Stockholders' Equity, for further details.

Income Taxes. We account for income taxes under the asset and liability method in accordance with the accounting standard for income taxes. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities. Under this method, changes in tax rates and laws are recognized in income in the period such changes are enacted.

We record net deferred tax assets to the extent that we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. Significant estimates are required for this analysis. If we were to determine that the amount of deferred income tax assets we would be able to realize in the future had changed, we would make an adjustment to the valuation allowance which would decrease or increase the provision for income taxes.

The provision for federal, foreign, and state and local income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes.

We periodically assess our liabilities and contingencies for all periods that are currently open to examination or have not been effectively settled based on the most current available information. Where it is not more likely than not that our tax position will be sustained, we record the entire resulting tax liability and when it is more likely than not of being sustained, we record our best estimate of the resulting tax liability. To the extent our assessment of the tax outcome of these matters changes, such change in estimate will impact the income tax provision in the period of change. It is our policy to record interest and penalties related to income taxes as part of the income tax expense for financial reporting purposes.

Worker's Compensation. The liability for losses under our worker's compensation program has been actuarially determined. The balance for worker's compensation liability was $5,830 and $7,401 as of March 31, 2020 and 2019, respectively.

Translation of Foreign Currencies. Assets and liabilities of foreign subsidiaries are translated at current exchange rates and the effects of these translation adjustments are reported as a component of accumulated other comprehensive loss ("AOCL") in stockholders' equity. Income and expenses in foreign currencies are translated at the average exchange rate during the period.

Accumulated Other Comprehensive Loss. The components of AOCL, net of income taxes, are as follows:

		March 31,
		2020				2019
Derivatives		$	(1,426	)		$	735
Pension and other postretirement benefit liabilities		(93,353		)		(74,670		)
Cumulative translation adjustment		(6,215		)		(9,032		)
Total accumulated other comprehensive loss		$	(100,994	)		$	(82,967	)

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The following table details 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:

		Years ended March 31,
		2020																2019
		Derivatives				Pension and other Postretire-ment Benefits				Cumulative translation adjustment				Total				Derivatives				Pension and other Postretire-ment Benefits				Cumulative translation adjustment				Total
Beginning of year AOCL		$	735			$	(74,670	)		$	(9,032	)		$	(82,967	)		$	1,904			$	(66,656	)		$	(39,544	)		$	(104,296	)
Change in fair value of derivatives		(1,555		)		—				—				(1,555		)		(1,169		)		—				—				(1,169		)
Net gains reclassified from AOCL		(606		)		—				—				(606		)		—				—				—				—
Net actuarial losses reclassified from AOCL (1)		—				3,247				—				3,247				—				2,172				—				2,172
Prior service costs reclassified from AOCL (1)		—				(313		)		—				(313		)		—				(238		)		—				(238		)
Valuation adjustment for pension and postretirement benefit plans (1)		—				(21,617		)		—				(21,617		)		—				(9,948		)		—				(9,948		)
Currency translation gains reclassified from AOCL (2)		—				—				3,150				3,150				—				—				37,542				37,542
Net change in cumulative translation adjustment		—				—				(333		)		(333		)		—				—				(7,030		)		(7,030		)
End of year AOCL		$	(1,426	)		$	(93,353	)		$	(6,215	)		$	(100,994	)		$	735			$	(74,670	)		$	(9,032	)		$	(82,967	)

(1) Amounts related to our pension and other postretirement benefits that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented. See Note 14, Employee Benefit Plans.

(2) Amounts related to the foreign currency translation gains realized upon the divestiture of our Firearms business and Eyewear brands and Firearms business in the second quarter of fiscal year 2020 and 2019, respectively.

Adoption of New Accounting Pronouncements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing (Hosting) Arrangement That Is a Service Contract. The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendment is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for all entities and should be applied either retrospectively or prospectively. We early adopted the amendment in the fourth quarter of fiscal 2020 and applied prospectively to all implementation costs incurred after the date of adoption. With the adoption of this ASU, we capitalized implementation costs of approximately $2,321 for the three months ended March 31, 2020.  The corresponding cash flows from capitalized implementation costs incurred in our hosting arrangements is classified as a change in other assets in cash flows from operating activities. The capitalized implementation costs incurred in our hosting arrangements are amortized, once ready for intended use, over the term of the associated hosting arrangements of five years.  The related amortization of capitalized implementation costs are classified as selling, general and administrative expense in the same line item as the expense for fees for the associated hosting arrangement.

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards update ("ASU") 2016-02, “Leases" (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. We adopted ASU 2016-02 prospectively starting on April 1, 2019. As part of the adoption, we elected the package of practical expedients which permits us under the new standard not to reassess historical lease classification, not to recognize short-term leases on our balance sheet, and not to separate lease and non-lease components for all our leases. In addition, we elected the use of hindsight to determine the lease term of its leases and applied its incremental borrowing rate based on the remaining term of its leases as of the adoption date. The impact upon adoption, on April 1, 2019, resulted in the recognition of right-of-use assets of approximately $75,749, and lease liabilities of approximately $91,604 on our consolidated balance sheet. See Note 3, Leases, for additional information.

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Recent Accounting Pronouncements. In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." This ASU removes specific exceptions to the general principles in Accounting Standards Codification ("ASC") Topic 740, "Accounting for Income Taxes" ("Topic 740") and simplifies certain U.S. GAAP requirements. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.

In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement” which amends ASC 820. This update includes adding, modifying and removing various disclosure requirements related to fair value measurements. This update is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with earlier application permitted. This update will be applied on a prospective basis for certain changes and retrospectively for other changes. The adoption of this update is not expected to have a material impact on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, “Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans” which amends ASC 715. This update includes adding, clarifying and removing various disclosure requirements related to defined benefit pension and other postretirement plans. This update is effective for fiscal years beginning after December 15, 2020, with earlier application permitted. The guidance in this update is applied on a retrospective basis to all periods presented. The adoption of this update is not expected to have a material impact on our consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Additionally, this ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019. We will adopt this ASU as of April 1. 2020. We completed our preliminary assessment of this new standard, and concluded that the Company's current methodology of estimating credit losses on its trade accounts receivable closely aligns with the requirements of this new standard. Therefore, we believe this new standard will not have a material impact on its consolidated financial statements and disclosures.

There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements.

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 (see Note 1, Significant Accounting Policies. for additional information.

The following section describes the valuation methodologies we use to measure our financial instruments at fair value on a recurring basis:

Interest Rate Swaps—We periodically enter into floating-to-fixed interest rate swap agreements in order to hedge our forecasted interest payments on our outstanding variable-rate debt. The fair value of those swaps is determined using a pricing model based on observable inputs for similar instruments and other market assumptions. We consider these to be Level 2 instruments. See Note 13, Long-term Debt, for additional information.

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

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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 4, 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, and below for fair value amounts related to the Note Receivable.

Disclosures about the Fair Value of Financial Instruments

The carrying amount of our receivables, inventory, accounts payable and accrued liabilities at March 31, 2020 and March 31, 2019, approximates fair value because of the short maturity of these instruments. The carrying values of cash and cash equivalents at March 31, 2020 and March 31, 2019 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:

		March 31,
		2020								2019
		Carrying Amount				Fair Value				Carrying Amount				Fair Value
Fixed rate debt (1)		$	350,000			$	284,375			$	350,000			$	326,375
Variable rate debt (2)		$	167,256			$	167,256			$	364,509			$	364,509

(1) Fixed rate debt—In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. The fair value of the variable-rate long-term debt is calculated based on current market rates for debt of the same risk and maturities. The fair value of the fixed-rate debt is based on market quotes for each issuance. We consider these to be Level 2 instruments. See Note 13, Long-term Debt, for information on our credit facilities, including certain risks and uncertainties.

(2) Variable rate debt— The carrying value of the amounts outstanding under our ABL Revolving Credit Facility approximates the fair value due to the short-term nature of these obligations. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. See Note 13, Long-term Debt, for additional information on our credit facilities, including related 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. See Note 1, Significant Accounting Policies, for further information on our accounting policies regarding long-lived assets and held for sale assets.

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 the Company's 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 the Company’s calculation of its right-of-use asset.

Many leases include one or more options to renew, with renewal terms that can extend the lease term for three years or more. 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.

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The amounts of assets and liabilities related to our operating leases were as follows.

		Balance Sheet Caption		March 31, 2020
Assets:
Operating lease assets		Operating lease assets		$	69,024
Liabilities:
Current:
Operating lease liabilities		Other current liabilities		$	10,780
Long-term:
Operating lease liabilities		Long-term operating lease liabilities		73,738
Total lease liabilities				$	84,518

The components of lease expense are recorded to cost of sales and selling, general and administration expenses in the consolidated statements of comprehensive income (loss). The components of lease expense were as follows:

		March 31, 2020
Fixed operating lease costs (1)		$	18,932
Variable operating lease costs		2,839
Sublease income		(877		)
Net Lease costs		$	20,894

(1) Includes short-term leases, which are immaterial.

The weighted average remaining lease term and weighted average discount rate is as follows:

		March 31, 2020
Weighted Average Remaining Lease Term (Years):
Operating leases		9.55
Weighted Average Discount Rate:
Operating leases		8.64	%

The approximate future minimum lease payments under operating leases were as follows:

		March 31, 2020
Fiscal 2021		$	17,495
Fiscal 2022		14,791
Fiscal 2023		13,116
Fiscal 2024		11,746
Fiscal 2025		10,718
Thereafter		60,703
Total lease payments		128,569
Less imputed interest		(44,051		)
Present value of lease liabilities		$	84,518

Supplemental cash flow information related to leases is as follows:

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		March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases		$	19,915
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases		$	5,636

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. See Note 13, Long-term Debt, for additional information on our interest rate swaps.

We entered into various commodity forward contracts during fiscal 2020 and 2019 in accordance with our accounting policies in Note 1, Significant Accounting Policies. 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 transactions critical terms and counterparty credit quality. 

The gains and losses on these hedges are included in accumulated other comprehensive income (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 March 31, 2020, we had outstanding lead forward contracts on 27.25 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 income (loss) and recognized in earnings. The asset related to the lead forward contracts is immaterial and is recorded as part of other non-current assets. The liability related to the lead forward contracts is immaterial and is recorded as part of other current liabilities.

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The following tables disaggregate our net sales by major product category:

		Years ended March 31,
		2020												2019 (1)
		Shooting Sports				Outdoor Products				Total				Shooting Sports				Outdoor Products				Total
Ammunition		$	846,974			$	—			$	846,974			$	883,103			$	—			$	883,103
Firearms		24,577				—				24,577				185,419				—				185,419
Hunting and Shooting		317,785				—				317,785				341,722				—				341,722
Action Sports		—				297,623				297,623				—				306,144				306,144
Outdoor Recreation (2)		—				268,912				268,912				—				290,281				290,281
Eyewear		—				—				—				—				51,859				51,859
Total		$	1,189,336			$	566,535			$	1,755,871			$	1,410,244			$	648,284			$	2,058,528
Geographic Region
United States		$	1,057,699			$	396,524			$	1,454,223			$	1,204,965			$	426,972			$	1,631,937
Rest of the World		131,637				170,011				301,648				205,279				221,312				426,591
Total		$	1,189,336			$	566,535			$	1,755,871			$	1,410,244			$	648,284			$	2,058,528

(1) The Company changed its operating segments during the fourth quarter of fiscal 2020 (see Note 19, Operating Segment Information). Accordingly, prior period amounts have been reclassified to conform with the current period presentation.

(2) Outdoor Recreation includes the operating segments; Hydration, Outdoor Cooking and Golf.

We sell our products in the United States and internationally. A majority of our sales are concentrated in the United States. See Note 19, Operating Segment Information for information on international revenues.

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.

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, firearms and ammunition excise tax and other similar taxes are excluded from revenue.

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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 provide consumer warranties against manufacturing defects on certain products within the Shooting Sports and Outdoor Products segments. Our warranty periods typically range from one year to the lifetime of the product. The costs of such product warranties are recognized upon delivery of the product at the time the sale is recorded and are estimated based on our past experience.

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. See Note 17, Stockholders' Equity, during each period presented, which, if exercised, earned, or converted, would have a dilutive effect on earnings per share.

In computing EPS for the fiscal years presented, earnings, as reported for each respective period, is divided by the number of shares below (in thousands):

		Years ended March 31,
		2020				2019				2018
Net income (loss)		$	(155,079	)		$	(648,443	)		$	(60,232	)
Weighted-average number of common shares outstanding, basic and diluted		57,846				57,544				57,167
Earnings (loss) per common share:
Basic and diluted		$	(2.68	)		$	(11.27	)		$	(1.05	)

(1) Due to the loss from continuing operations for the fiscal years ended 2020, 2019, and 2018, there are no common shares added to calculate dilutive EPS because the effect would be antidilutive.

On July 5, 2019, Vista Outdoor Inc. and one of its subsidiaries, Vista Outdoor Operations LLC, sold our Firearms business, which was part of our historic Shooting Sports segment and comprised our Firearms reporting unit, for a total purchase price of $170,000. We received cash proceeds net of transactions costs of $154,123 and $12,000 in the form of a sellers note due on July 5, 2024. See Notes 2, Fair Value of Financial Instruments, and 8, Receivables, for additional information. The proceeds from this sale were used to pay off the balance of our Term Loan and reduce our ABL Revolving Credit Facility. See Note 13, Long-term Debt.

During fiscal 2020, we recognized a pretax loss on this divestiture of $433, which is included in other expense.

During fiscal 2020 and fiscal 2019, we recognized an impairment of $9,429 and of $120,238, respectively, including impairment of goodwill of $80,604 during fiscal 2019, related to the expected loss on the sale of our Firearms business when it was held for sale.

On August 31, 2018, the Company completed the sale of its Eyewear brands. The selling price was $158,000, subject to customary working capital adjustments. As a result of the sale, during fiscal 2019, the Company recorded a pretax loss of $4,925, which is included in other expense, primarily due to the final allocation of goodwill and fixed assets for the Eyewear brands.

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During fiscal 2019, we recognized an impairment of $44,921 related to the expected loss on the sale of our held-for-sale assets related to the Eyewear brands. The loss is primarily attributable to cumulative foreign currency translation adjustments for these entities that was reclassified to earnings upon their sale.

Net receivables are summarized as follows:

		March 31,
		2020				2019
Trade receivables		$	323,436			$	356,035
Other receivables		4,841				7,106
Less: allowance for doubtful accounts		(14,760		)		(18,892		)
Net receivables		$	313,517			$	344,249

Walmart accounted for 13% and 14% of the total trade receivables balance at March 31, 2020 and 2019, respectively. No other customer represented more than 10% of total trade receivables balance as of March 31, 2020 and 2019.

The following is a reconciliation of the changes in our allowance for doubtful accounts, discounts, and returns during fiscal 2020 and 2019:

Balance at March 31, 2018	$	36,193
Expense	7,842
Write-offs	(14,784		)
Reversals, discounts, and other adjustments	(10,359		)
Balance at March 31, 2019	18,892
Expense	2,203
Write-offs	(6,249		)
Reversals, discounts, and other adjustments	(86		)
Balance at March 31, 2020	$	14,760

Note Receivable, see Note 7, Divestitures, and Note 2, Fair Value of Financial Instruments, is summarized as follows:

		March 31,
		2020				2019
Principal		$	12,000			$	—
Less: unamortized discount		(3,990		)		—
Note receivable, net, included within deferred charges and other non-current assets		$	8,010			$	—

Net inventories consist of the following:

		March 31,
		2020				2019
Raw materials		$	85,609			$	65,240
Work in process		33,622				32,213
Finished goods		212,062				247,038
Net inventories		$	331,293			$	344,491

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Property, plant, and equipment is stated at cost and depreciated over estimated useful lives using a straight-line method. Machinery and equipment are depreciated over 2 to 20 years and buildings and improvements are depreciated over 2 to 30 years. Depreciation expense was $47,863 in fiscal 2020, $53,129 in fiscal 2019, and $55,090 in fiscal 2018.

We review property, plant, and equipment for impairment when indicators of potential impairment are present. When such impairment is identified, it is recorded as a loss in that period. Maintenance and repairs are charged to expense as incurred. Major improvements that extend useful lives are capitalized and depreciated. The cost and accumulated depreciation of property, plant, and equipment retired or otherwise disposed of are removed from the related accounts, and any residual values are charged or credited to income.

Property, plant, and equipment consists of the following:

		March 31,
		2020				2019
Land		$	6,618			$	6,618
Buildings and improvements		69,093				63,987
Machinery and equipment		431,867				401,045
Property not yet in service		11,629				34,344
Gross property, plant, and equipment		519,207				505,994
Less: accumulated depreciation		(334,474		)		(290,402		)
Net property, plant, and equipment		$	184,733			$	215,592

The changes in the carrying amount of goodwill by segment were as follows:

		Outdoor Products				Shooting Sports				Total
Balance at March 31, 2018		$	452,627			$	204,909			$	657,536
Impairment		(327,772		)		—				(327,772		)
Effect of foreign currency exchange rates		—				(279		)		(279		)
Held for sale		—				(121,463		)		(121,463		)
Divestitures		(3,526		)		—				(3,526		)
Balance at March 31, 2019		121,329				83,167				204,496
Impairment		(121,329		)		—				(121,329		)
Balance at March 31, 2020		$	—			$	83,167			$	83,167

At the beginning of the fourth quarter of fiscal year 2020 we determined there was a change to our reporting units. Hydration and Outdoor Cooking, which were historically components of the Outdoor Recreation reporting unit, were identified as two separate reporting units. Accordingly, Vista was required to evaluate whether there was impairment at the historical Outdoor Recreation reporting unit and allocate to Hydration and Outdoor Cooking a portion of the respective historical reporting unit goodwill. Concurrent with our annual goodwill impairment testing, we performed a quantitative impairment analysis on the historical Outdoor Recreation reporting unit and concluded there was excess carrying value over fair value. As a result, we recorded goodwill impairment of $121,329, which left no remaining goodwill in the historical Outdoor Recreation reporting unit, or the newly identified reporting units of Hydration and Outdoor Cooking. We also performed a quantitative impairment analysis on the Ammunition reporting unit and concluded there was excess fair value over carrying value, therefore no impairment was recorded on this reporting unit. To determine the fair value under the income approach, we used, based on

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our judgment, a discount rate of 12.5% and a terminal growth rate of 3.0%. The remaining goodwill balance of $83,167 is associated with the Ammunition reporting unit. As of March 31, 2020, the goodwill recorded within the Outdoor Products segment is presented net of $994,207 of accumulated impairment losses, of which $545,106 was recorded prior to April 1, 2018. The goodwill recorded within the Shooting Sports segment has no accumulated impairment losses after the transfer of goodwill to held for sale assets during the year ended March 31, 2019.

Management calculated the fair value of our reporting units based on the accounting policy's discussed in Note 1, Significant Accounting Policies. The trading price of our common stock on the annual testing date resulted in a large difference between the market value of Vista Outdoor equity and the book value of the assets recorded on our balance sheet, implying that investors’ may believe that the fair value of our reporting units is lower than their book value. Our estimates of the fair values of the reporting units was significantly influenced by higher discount rates in the income-based valuation approach as a result of increasing market to equity risk premiums and company specific risk premiums. Our fair value estimates were also negatively impacted by the performance of our reporting units compared to comparable companies, which required that we apply lower valuation multiples in estimating the fair value of these reporting units using the market-based approach. In addition, as a result of tariffs and other factors affecting the market for our products, we reduced our sales projections for fiscal year 2021 and beyond for a number of our reporting units for purposes of our long-range financial plan, which is updated annually beginning in our third quarter.

Our indefinite lived intangibles are not amortized and are tested for impairment annually on the first day of the fourth fiscal quarter or upon the occurrence of events or changes in circumstances that indicate that the assets might be impaired. As a result of our annual testing in accordance with our accounting policies described in Note 1, Significant Accounting Policies, we recorded $34,259 of impairment in our historical Outdoor Products segment. Impairment charges of $13,100 were recorded against our CamelBak indefinite-lived tradename. We determined the fair value of these indefinite-lived tradename using a royalty rate of 2.0%. We also recorded impairment charges related to our Bushnell and Weaver's indefinite-lived tradenames of $7,459. We determined the fair values of these indefinite-lived tradenames using royalty rates of 1.0%. In addition, impairment expense of $13,700 was recorded related to our Giro, Bell Cycling and Bell Power Sports indefinite-lived tradenames. We determined the fair value of these indefinite-lived tradenames using royalty rates ranging from 1.0% to 1.5%.

During the quarter ended December 30, 2018, we made a decision to sell the legal entities comprising our Firearms business, which is part of our Shooting Sports segment and comprises our Firearms reporting unit. The decision to sell this business reflects our ongoing review of our portfolio of brands to focus on assets that are core to our mission and strategy. As a result of this decision, we recorded impairment on goodwill related to our Firearms reporting unit of $80,604, and transferred $40,859 of goodwill to assets held for sale.

The trading price of our common stock declined significantly in the quarter ended December 30, 2018, increasing the difference between the market value of Vista Outdoor equity and the book value of the assets recorded on our balance sheet and implying that investors’ may believe that the fair value of our reporting units is lower than their book value. In addition, as a result of a weaker than expected 2018 holiday shopping season and increasing uncertainty from the impact of retail bankruptcies, tariffs and other factors affecting the market for our products, we reduced our sales projections for fiscal year 2020 and beyond for a number of our reporting units for purposes of our long-range financial plan, which is updated annually beginning in our third quarter. As a result of these factors, we determined that a triggering event had occurred with respect to our Hunting and Shooting Accessories, Outdoor Recreation, and Action Sports reporting units, which required that we assess the fair value of these reporting units using the income-based and market-based approaches described above.

As a result of this assessment, during the quarter ended December 30, 2018, Vista Outdoor recorded a $429,395 impairment of goodwill and identifiable indefinite-lived intangible assets related to our Hunting and Shooting Accessories, Outdoor Recreation, and Action Sports reporting units. In each impaired reporting unit, our estimate of fair value was negatively impacted by the lower projected sales described above, resulting in reduced cash flows for those businesses in fiscal year 2020 and beyond. Our estimates of the fair values of these reporting units was also significantly reduced by increases in prevailing interest rates, which required that we apply a higher discount rate in the income-based valuation approach, and by lower valuation multiples implied by recent trading prices for the common stock of comparable publicly traded companies, which required that we apply lower valuation multiples in estimating the fair value of these reporting units using the market-based approach.

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The excess carrying amount over fair value, and resulting goodwill impairment, in our Hunting and Shooting Accessories reporting unit was $38,386. As a result of the goodwill impairment, there is no remaining goodwill in our Hunting and Shooting Accessories reporting unit. To determine the fair value under the income approach, we used, based on our judgment, a discount rate of 9.0% and a terminal growth rate of 3.0%. During the quarter ended December 30, 2018, we also performed an interim test for indefinite-lived tradename impairment and recorded a $36,223 impairment related to our Bushnell, Outers, Champion, and Weaver's tradenames. We determined the fair values of the indefinite-lived tradenames using royalty rates ranging from 1.0% to 2.0%.

The excess carrying amount over fair value, and resulting goodwill impairment, in our Outdoor Recreation reporting unit was $129,470. As a result of the goodwill impairment, there was $121,329 of remaining goodwill in our Outdoor Recreation reporting unit. To determine the fair value under the income approach, we used, based on our judgment, a discount rate of 9.0% and a terminal growth rate of 3.0%. During the quarter ended December 30, 2018, we also performed an interim test for indefinite-lived tradename impairment and recorded a $43,400 impairment related to our CamelBak tradename. We determined the fair value of the indefinite-lived tradename using a royalty rate of 2.0%.

The excess carrying amount over fair value, and resulting goodwill impairment, in our Action Sports reporting unit was $159,916. As a result of the goodwill impairment, there is no remaining goodwill in our Action Sports reporting unit. To determine the fair value under the income approach, we used, based on our judgment, a discount rate of 9.0% and a terminal growth rate of 3.0%. During the quarter ended December 30, 2018, we also performed an interim test for indefinite-lived tradename impairment and recorded a $22,000 impairment related to our Giro tradename. We determined the fair value of the indefinite-lived tradenames using royalty rates ranging from 1.0% to 1.5%.

The loss of a key customer for our stand up paddle boards business during the quarter ended September 30, 2018 resulted in a reduction of the projected cash flows for the stand up paddle boards business. Given the associated decrease in projected cash flows for the period, we determined that a triggering event had occurred. This analysis resulted in a $23,411 impairment charge related to customer relationship intangibles associated with the Jimmy Styks acquisition.

Net intangibles consisted of the following:

		March 31,
		2020												2019
		Gross carrying amount				Accumulated amortization				Total				Gross carrying amount				Accumulated amortization				Total
Trade names		$	48,360			$	(14,428	)		$	33,932			$	48,360			$	(10,694	)		$	37,666
Patented technology		16,684				(10,490		)		6,194				16,684				(9,604		)		7,080
Customer relationships and other		238,220				(83,349		)		154,871				238,595				(68,185		)		170,410
Total		303,264				(108,267		)		194,997				303,639				(88,483		)		215,156
Non-amortizing trade names		111,103				—				111,103				145,364				—				145,364
Net intangible assets		$	414,367			$	(108,267	)		$	306,100			$	449,003			$	(88,483	)		$	360,520

The amortizable intangible assets in the table above are being amortized using a straight-line method over a weighted average remaining period of approximately 11.4 years. Our historical Outdoor Products segment recorded impairment expenses related to amortizing intangibles of $26,628 in fiscal 2019, and $34,259, $101,623, and $9,044 of impairment losses related to non-amortizing trade names in fiscal 2020, fiscal 2019 and 2018, respectively. Subsequent to our annual impairment testing date we determined there was a change in our reportable segments (see Note 19, Operating Segment Information). There have been no impairment charges recorded since the determination of our new reportable segment structure in Shooting Sports and Outdoor Products.

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Amortization expense related to these assets was $19,995 in fiscal 2020, $24,374 in fiscal 2019, and $34,669 in fiscal 2018, which is included within cost of sales. We expect amortization expense related to these assets in each of the next five fiscal years and beyond to be incurred as follows:

Fiscal 2021		$	19,886
Fiscal 2022		19,831
Fiscal 2023		19,715
Fiscal 2024		19,663
Fiscal 2025		19,645
Thereafter		96,257
Total		$	194,997

The major categories of other current and non-current accrued liabilities are as follows:

		March 31,
		2020				2019
Rebates		$	16,225			$	13,911
Accrual for in-transit inventory		11,064				11,275
Other		70,908				71,989
Total other current liabilities		$	98,197			$	97,175
Non-current portion of accrued income tax liability		$	30,159			$	34,118
Other		13,345				29,158
Total other long-term liabilities		$	43,504			$	63,276

We provide consumer warranties against manufacturing defects on certain products within the Shooting Sports and Outdoor Products segments with warranty periods ranging from one year to the expected lifetime of the product. The estimated costs of such product warranties are recorded at the time the sale is recorded based upon actual past experience, our current production environment as well as specific and identifiable warranties as applicable. The warranty liability recorded at each balance sheet date reflects the estimated liability for warranty coverage for products delivered based on historical information and current trends.

The following is a reconciliation of the changes in our product warranty liability during the periods presented:

Balance at March 31, 2018	$	10,247
Payments made	(3,462		)
Warranties issued	3,962
Other adjustments	(2,373		)
Changes related to preexisting warranties	(230		)
Balance at March 31, 2019	8,144
Payments made	(3,944		)
Warranties issued	4,983
Other adjustments	(207		)
Changes related to preexisting warranties	173
Balance at March 31, 2020	$	9,149

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Long-term debt, including the current portion, consisted of the following:

		March 31,
		2020				2019
Credit Agreements:
ABL Revolving Credit Facility		$	167,256			$	220,000
Term Loan		—				104,509
Junior Term Loan		—				40,000
Total principal amount of Credit Agreements		167,256				364,509
5.875% Senior Notes		350,000				350,000
Principal amount of long-term debt		517,256				714,509
Less: unamortized deferred financing costs		(5,450		)		(10,504		)
Carrying amount of long-term debt		511,806				704,005
Less: current portion		—				(19,335		)
Carrying amount of long-term debt, excluding current portion		$	511,806			$	684,670

Credit Agreements—In fiscal 2019, we refinanced our Amended and Restated Credit Agreement dated April 1, 2016, by entering into the New Credit Facilities, which provide for (a) a $450,000 senior secured asset-based revolving credit facility (the “ABL Revolving Credit Facility”), comprised of $20,000 in first-in, last-out (“FILO”) revolving credit commitments and $430,000 in non-FILO revolving credit commitments, (b) a $109,343 senior secured asset-based term loan facility (the “Term Loan”), and (c) the $40,000 Junior Term Loan. The amount available under the ABL Revolving Credit Facility is the lesser of the total commitment of $450,000 or a borrowing base based on percentages of eligible receivables, inventory, and cash, minus certain reserves. As of March 31, 2020, based on the borrowing base less outstanding borrowings of $167,256 and outstanding letters of credit of $24,104, the amount available under the ABL Revolving Credit Facility was $147,764.

The New Credit Facilities each mature on November 19, 2023 (the “Maturity Date”), subject to a customary springing maturity in respect of the 5.875% Notes due 2023. The Term Loan was subject to quarterly principal repayments of $4,834 on the first business day of each January, April, July, and October, with the remaining balance due on the Maturity Date. During fiscal 2020, we used proceeds from the sale of our Firearms business to pay off the balance of the Term Loan and the Junior Term Loan.

The FILO commitments under the ABL Revolving Credit Facility are subject to reductions of $1,667 on the first business day of each fiscal quarter beginning on April 1, 2019. The balance of the FILO revolving credit commitment as of March 31, 2020 was $13,332. Any outstanding revolving loans under the ABL Revolving Credit Facility will be payable in full on the Maturity Date.

The payoff of Term Loan and the Junior Term Loan reduced our interest rate on the ABL revolving Credit Facility. As of March 31, 2020, borrowings under the ABL Revolving Credit Facility bear interest at a rate equal to, in the case of (a) non-FILO revolving credit loans, either the sum of a base rate plus a margin ranging from 0.25% to 0.75% or the sum of a LIBO rate plus a margin ranging from 1.25% to 1.75%, and (b) FILO revolving credit loans, a rate that is 1.00% higher than the rate paid on the non-FILO revolving credit loans. All such rates vary based on our Average Excess Availability under the ABL Revolving Credit Facility. As of March 31, 2020, the margin under the (1) ABL Revolving Credit Facility was, in the case of (a) non-FILO revolving credit loans, 0.50% for base rate loans and 1.50% for LIBO rate loans and (b) FILO revolving credit loans, 1.50% for base rate loans and 2.50% for LIBO rate loans. The weighted average interest rate for our borrowings under the New Credit Facilities as of March 31, 2020 was 2.95%, excluding the impact of the interest rate swaps that are discussed below. We pay a commitment fee on the unused commitments under the ABL Revolving Credit Facility of 0.25% per annum.

Substantially all domestic tangible and intangible assets of Vista Outdoor and our domestic subsidiaries, as well as the tangible and intangible assets of Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V., are pledged as collateral under the New Credit Facilities.

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In connection with the repayment of the Term Loan and the Junior Term Loan, unamortized debt issuance costs of $3,428 were written off during fiscal 2020. This expense is included in interest expense in the consolidated statements of comprehensive income (loss). The remaining debt issuance costs of approximately $6,300 are being amortized over the term of the New Credit Facilities.

5.875% Notes—In fiscal 2016, we issued $350,000 aggregate principal amount of 5.875% Senior Notes (the "5.875% Notes") that mature on October 1, 2023. These notes are unsecured and senior obligations. Interest on the notes is payable semi-annually in arrears on April 1 and October 1 of each year. We have the right to redeem some or all of these notes from time-to-time at specified redemption prices. Debt issuance costs of approximately $4,300 are being amortized to interest expense over eight years, the term of the notes.

Rank and guarantees—The New Credit Facilities' obligations are guaranteed on a secured basis, jointly and severally and fully and unconditionally by substantially all of our domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. Vista Outdoor (the parent company issuer) has no independent assets or operations. We own 100% of all of these guarantor subsidiaries. The 5.875% Notes are senior unsecured obligations of Vista Outdoor and will rank equally in right of payment with any future senior unsecured indebtedness and senior in right of payment to any future subordinated indebtedness of Vista Outdoor. The 5.875% Notes are fully and unconditionally guaranteed, jointly and severally, by our existing and future domestic subsidiaries that guarantee indebtedness under our New Credit Facilities or that guarantee certain of our other indebtedness, or indebtedness of any subsidiary guarantor, in an aggregate principal amount in excess of $50,000. These guarantees are senior unsecured obligations of the applicable subsidiary guarantors. The guarantee by any subsidiary guarantor of our obligations in respect of the 5.875% Notes will be released in any of the following circumstances:

•	if, as a result of the sale of its capital stock, such subsidiary guarantor ceases to be a restricted subsidiary

•	if such subsidiary guarantor is designated as an “Unrestricted Subsidiary”

•	upon defeasance or satisfaction and discharge of the 5.875% Notes

•	if such subsidiary guarantor has been released from its guarantees of indebtedness under the New Credit Facilities and all capital markets debt securities

Interest rate swaps—During fiscal 2018, we entered into a floating-to-fixed interest rate swap agreement in order to hedge our forecasted interest payments on our outstanding variable-rate debt in accordance with our accounting policies in Note 1, Significant Accounting Policies. and as discussed in Note 4, Derivative Financial Instruments. As of March 31, 2020, we had the following cash flow hedge interest rate swap in place:

		Notional				Fair Value				Pay Fixed		Receive Floating		Maturity Date
Non-amortizing swap		$	100,000			$	(230	)		1.63%		0.989%		June 2020

Gains and losses from the remeasurement of our interest rate swap contract agreement are recorded as a component of accumulated other comprehensive income (loss) and released into earnings as a component of interest expense during the period in which the hedged transaction takes place. See Note 1, Significant Accounting Policies, for additional information. The liability related to the swaps is recorded as part of other current liabilities.

Scheduled Minimum Payments—The scheduled minimum payments on outstanding long-term debt were as follows as of March 31, 2020:

Fiscal 2021	$	—
Fiscal 2022	—
Fiscal 2023	—
Fiscal 2024	517,256
Fiscal 2025	—
Thereafter	—
Total	$	517,256

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Covenants

New Credit Facilities—Our New Credit Facilities impose restrictions on us, including limitations on our ability to pay cash dividends, incur debt or liens, redeem or repurchase Vista Outdoor stock, enter into transactions with affiliates, make investments, merge or consolidate with others or dispose of assets. During the three months ending September 30, 2019, the Term Loan was paid in full, and during the three months ended December 29, 2019, the Junior Term Loan was paid in full, which triggered a loosening of the financial covenants in the ABL Revolving Credit Facility. Beginning with the quarter ending December 29, 2019, if Excess Availability under the ABL Revolving Credit Facility falls below $42,500 we must comply with certain heightened reporting and other covenants and maintain a Consolidated Fixed Charge Coverage Ratio ("FCCR"), as defined below, of not less than 1.00:1.00. As noted above, the Excess Availability under the ABL Revolving Credit Facility was $147,764 as of March 31, 2020. If we do not comply with the covenants in any of the New Credit Facilities, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under each of the New Credit Facilities.

The FCCR is Covenant EBITDA ("earnings before interest, taxes, depreciation, and amortization"), (which includes adjustments for items such as non-recurring or extraordinary items, non-cash charges related to stock-based compensation, and intangible asset impairment charges, as well as adjustments for acquired or divested business units on a pro forma basis) less capital expenditures (subject to certain adjustments) for the past four fiscal quarters, divided by fixed charges (which includes debt principal and interest payments made over the past four fiscal quarters; plus income tax payments and restricted payments over the past four fiscal quarters).

5.875% Notes—The indenture governing the 5.875% Notes contains covenants that, among other things, limit our ability to incur or permit to exist certain liens, sell, transfer or otherwise dispose of assets, consolidate, amalgamate, merge or sell all or substantially all of our assets, enter into transactions with affiliates, enter into agreements restricting our subsidiaries’ ability to pay dividends, incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem our capital stock, prepay, redeem or repurchase certain debt and make loans and investments.

The New Credit Facilities and the indenture governing the 5.875% Notes contain cross-default provisions so that noncompliance with the covenants within one debt agreement could also cause a default under the other debt agreements. As of March 31, 2020, we were in compliance with the covenants of all of the debt agreements. However, we cannot provide assurance that we will be able to comply with such financial covenants in the future because of various risks and uncertainties some of which may be beyond our control. Any failure to comply with the restrictions in the New Credit Facilities may prevent us from drawing under the ABL Revolving Credit Facility and may result in an event of default under the New Credit Facilities, which default may allow the creditors to accelerate the related indebtedness and the indebtedness under our 5.875% Notes and proceed against the collateral that secures the indebtedness. We may not have sufficient liquidity to repay the indebtedness in such circumstances.

Defined Benefit Plan

During fiscal 2020, we recognized an aggregate net benefit for employee defined benefit plans of $406. During fiscal 2019, we recognized an aggregate net benefit for employee defined benefit plans of $973. During fiscal 2018, we recognized an aggregate net expense for employee defined benefit plans of $1,505. The estimated income for these defined benefit plans for fiscal 2021 is $200.

The Company recognizes the funded status of its defined benefit pension plans and other postretirement benefit plans, measured as the difference between the fair value of the plan assets and the benefit obligation. Benefit obligation balances reflect the projected benefit obligation ("PBO") for our pension plans and accumulated post-retirement benefit obligations ("APBO") or our other post-retirement benefit plans. The weighted average discount rate used to determine the pension benefit obligation was 3.50% and 3.90% as of March 31, 2020 and 2019, respectively. The fair value of the plan assets was $145,828 and $160,682 as of March 31, 2020 and 2019, respectively. The benefit obligation was $205,996 and $206,369 as of March 31, 2020 and 2019, respectively, resulting in an unfunded liability of $60,168 and $45,687 as of March 31, 2020 and 2019,

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respectively, which is primarily recorded within Accrued pension and postemployment liabilities on the consolidated balance sheet.

In June 2017, we announced changes to our qualified and non-qualified defined benefit pension plans. The benefits under the affected plans were determined by a cash balance formula that provides participating employees with an annual “pay credit” as a percentage of their eligible pay based on their age and eligible service. The changes were effective July 31, 2017, with employees receiving a pro-rated pay credit for fiscal 2017 and no future pay credits beginning in fiscal 2018. However, a participating employee’s benefit will continue to grow based on annual interest credits applied to the employee’s cash balance account until commencement of the employee’s benefit. As a result of the changes, we recognized a one-time curtailment gain of $5,783 during the quarter ended July 2, 2017. The plan assets are invested in a variety of financial funds which have investments in a variety of financial instruments including equities, fixed income, and hedge funds. Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long-term. The investment goals are (1) to meet or exceed the assumed actuarial rate of return of 6.75% over the long-term within reasonable and prudent levels of risk as of March 31, 2020 and 2019, and (2) to preserve the real purchasing power of assets to meet future obligations.

Investments in financial funds are valued by multiplying the fund's net asset value ("NAV") per share with the number of units or shares owned as of the valuation date. NAV per share is determined by the fund's administrator or the Company's custodian by deducting from the value of the assets of the fund all its liabilities and the resulting number is divided by the outstanding number of shares or units. Investments held by the funds are valued on the basis of valuations furnished by a pricing service approved by the fund's investment manager, which determines valuations using methods based on market transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders, or at fair value as determined in good faith by the fund's investment manager. For those assets that are invested within hedge funds there are certain restrictions on redemption of those assets including a one-year lockup period from initial investment and thereafter a 65-day notice period prior to redemption. There are no other significant restrictions on redemption of assets within other asset categories.

Employer contributions and distributions—During fiscal 2020, we made contributions of $3,600 directly to the pension trust, made no contributions to our other postretirement benefit plans, and distributed $1 directly to retirees under our non-qualified supplemental executive retirement plans. During fiscal 2019, we contributed $1,200 directly to the pension trust, made no contributions to our other postretirement benefit plans, and made distributions of $293 directly to retirees under our non-qualified supplemental executive retirement plans. During fiscal 2018, we contributed $13,800 directly to the pension trust, made no contributions to our other postretirement benefit plans, and made distributions of $11,110 to retirees under the non-qualified supplemental executive retirement plan.

Substantially all contributions made to our pension trust were required by local funding requirements. We expect to make mandatory contributions to the plans of approximately $6,642 during fiscal year 2021.

The following benefit payments, which reflect expected future service, are expected to be paid primarily out of the pension trust:

		Pension Benefits
Fiscal 2021		$	13,184
Fiscal 2022		12,769
Fiscal 2023		12,960
Fiscal 2024		13,077
Fiscal 2025		13,407
Fiscal years 2026 through 2030		$	64,798

Defined Contribution Plan

We sponsor a defined contribution retirement plan, a 401(k) savings plan. The plan is a tax-qualified retirement plan subject to the Employee Retirement Income Security Act of 1974 and covers most employees in the United States.

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Income (loss) before income taxes is as follows:

		Years ended March 31,
		2020				2019				2018
Current:
U.S.		$	(173,255	)		$	(686,188	)		$	(102,153	)
Non-U.S.		2,228				11,916				(31,636		)
Income (loss) before income taxes		$	(171,027	)		$	(674,272	)		$	(133,789	)

Our income tax provision (benefit) consists of:

		Years ended March 31,
		2020				2019				2018
Current:
Federal		$	(10,210	)		$	(6,208	)		$	(1,599	)
State		(1,585		)		(1,738		)		204
Non-U.S.		197				5,144				6,685
Deferred:
Federal		(2,799		)		(27,045		)		(76,300		)
State		(1,703		)		4,176				(3,024		)
Non-U.S.		152				(158		)		477
Income tax provision (benefit)		$	(15,948	)		$	(25,829	)		$	(73,557	)

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The items responsible for the differences between the federal statutory rate and our effective rate are as follows:

		Years ended March 31,
		2020			2019			2018
Statutory federal income tax rate		21.0	%		21.0	%		31.6	%
State income taxes, net of federal impact		1.1	%		1.0	%		1.2	%
Domestic manufacturing deduction		—	%		—	%		1.2	%
Nondeductible goodwill impairment		(11.3	)%		(12.1	)%		(21.1	)%
Nondeductible loss on divestiture		(1.0	)%		(1.6	)%		—	%
Change in tax contingency		4.5	%		—	%		—	%
Pre-acquisition tax attributes		0.4	%		—	%		4.1	%
Impact of law changes		1.8	%		—	%		33.9	%
Valuation allowance		(4.8	)%		(4.9	)%		(0.4	)%
Other		(2.4	)%		0.4	%		4.5	%
Income tax provision (benefit)		9.3	%		3.8	%		55.0	%

Deferred income taxes arise because of differences in the timing of the recognition of income and expense items for financial statement reporting and income tax purposes. The net effect of these temporary differences between the carrying amounts of assets and liabilities are classified in the consolidated financial statements of financial position as noncurrent assets or liabilities. As of March 31, 2020 and 2019, the components of deferred tax assets and liabilities were as follows:

		March 31,
		2020				2019
Deferred tax assets:
Inventories		$	8,237			$	12,110
Retirement benefits		14,016				11,003
Accounts receivable		7,518				7,829
Accruals for employee benefits		4,843				4,211
Other reserves		4,441				4,767
Loss and credit carryforwards		19,901				17,081
Capital loss carryforward		25,053				—
Nondeductible interest		18,140				15,880
Operating lease liabilities		17,067				—
Other		736				4,188
Total deferred tax assets		119,952				77,069
Valuation allowance		(72,065		)		(35,903		)
Total net deferred assets		47,887				41,166
Deferred tax liabilities:
Intangible assets		(25,197		)		(55,871		)
Property, plant, and equipment		(20,368		)		(24,454		)
Operating lease assets		(15,132		)		—
Total deferred tax liabilities		(60,697		)		(80,325		)
Net deferred income tax liability before amounts attributable to assets and liabilities held for sale		(12,810		)		(39,159		)
Less: deferred tax liability attributable to assets and liabilities held for sale		—				21,402
Net deferred income tax liability		$	(12,810	)		$	(17,757	)

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In assessing the realizability of our deferred tax assets, we considered whether it is more likely than not that some portion or all of the deferred tax assets will be realized. We continue to be in a cumulative loss position for the three-year period ending March 31, 2020. A cumulative loss position is considered significant negative evidence in assessing the realizability of a deferred tax asset that is difficult to overcome when determining whether a valuation allowance is required. Considering the weight of all available positive and negative evidence, we do not believe the positive evidence overcomes the negative evidence of our cumulative loss position. Therefore, we have increased the valuation allowance by $36,162 during the current year for a total valuation allowance of $72,065 at March 31, 2020. The increase to the valuation allowance includes the capital loss incurred on the sale of Savage.

Included in the net deferred tax liability are federal, foreign and state net operating loss and credit carryovers, of $10,910 which expire in years ending from March 31, 2021 through March 31, 2040 and $8,991 that may be carried over indefinitely. In addition, we have a capital loss carryforward of $25,053 which is available to offset future consolidated capital gains that will expire in years ending from March 31, 2021 through March 31, 2025, if not utilized. The carryforwards presented above are net of any applicable uncertain tax positions.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in tax years 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The CARES Act also contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable interest expense deduction.

The impact of the CARES Act is estimated to be a benefit to us of approximately $7 million. The tax benefit is primarily due to the carryback of net operating losses to prior years and increased interest expense deductions.

We have outside basis differences from foreign subsidiaries for which no deferred tax liability has been recorded, as we intend to indefinitely reinvest these balances. Determination of the amount of any unrecognized deferred income tax liability on the temporary difference for these indefinitely reinvested undistributed earnings is not practicable.

Income taxes paid, net of refunds, totaled $107 and ($8,435) in fiscal 2020 and 2019, respectively.

At March 31, 2020, and 2019, unrecognized tax benefits that have not been recorded in the financial statements amounted to $30,159 and $34,118, respectively, of which $27,503 and $30,432, respectively, would affect the effective tax rate. The remaining balance is related to deferred tax items which only impact the timing of tax payments. Although the timing and outcome of audit settlements are uncertain, it is reasonably possible that an $13,875 reduction of the uncertain tax benefits will occur in the next 12 months. The settlement of these unrecognized tax benefits could result in earnings from $0 to $12,695.

We have classified uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:

		Years ended March 31,
		2020				2019				2018
Unrecognized Tax Benefits—beginning of period		$	27,252			$	32,734			$	27,151
Gross increases—tax positions in prior periods		—				—				1,188
Gross decreases—tax positions in prior periods		—				(2,499		)		(332		)
Gross increases—current-period tax positions		1,949				74				9,247
Gross decreases—current-period tax positions		—				—				(2,873		)
Settlements		(171		)		—				(332		)
Lapse of statute of limitations		(5,517		)		(3,057		)		(1,315		)
Unrecognized Tax Benefits—end of period		$	23,513			$	27,252			$	32,734

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We report income tax-related interest income within the income tax provision. Penalties and tax-related interest expense are also reported as a component of the income tax provision. As of March 31, 2020 and 2019, $4,750 and $4,786 of income tax-related interest and $1,895 and $2,080 of penalties were included in accrued income taxes, respectively. As of March 31, 2020, 2019, and 2018, our current tax provision included $2,126, $1,694, and $1,053 of expense related to interest and penalties, respectively.

On February 9, 2015, we entered into a Tax Matters Agreement with Orbital ATK that governs the respective rights, responsibilities and obligations of Vista Outdoor and Orbital ATK following the distribution of all of the shares of our common stock on a pro rata basis to the holders of Alliant Techsystems Inc. common stock (the “Spin-Off”) with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local and foreign income taxes, other tax matters and related tax returns. We have joint and several liability with Orbital ATK to the IRS for the consolidated U.S. federal income taxes of the Orbital ATK consolidated group relating to the taxable periods in which we were part of that group. However, the Tax Matters Agreement specifies the portion, if any, of this tax liability for which we bear responsibility, and Orbital ATK agrees to indemnify us against any amounts for which we are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the Spin-Off is determined not to be tax-free. Though valid between the parties, the Tax Matters Agreement is not binding on the IRS.

The allocation of tax liabilities for the period from April 1, 2014 through the date of the Spin-Off was settled on June 15, 2018. Orbital ATK paid Vista Outdoor $13,047 to settle this matter, which was reflected as an adjustment to the distribution from Vista Outdoor to Orbital ATK at the time of the Spin-Off.

Prior to the Spin-Off, Orbital ATK or one of its subsidiaries filed income tax returns in the U.S. federal and various U.S. state jurisdictions that included Vista Outdoor. In addition, certain of our subsidiaries filed income tax returns in foreign jurisdictions. After the Spin-Off, we file income tax returns in the U.S. federal, foreign and various U.S. state jurisdictions. With a few exceptions, Orbital ATK and its subsidiaries and Vista Outdoor are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities prior to 2013. The IRS has completed the audits of Orbital ATK through fiscal 2014 and is currently auditing Orbital ATK's tax return for fiscal 2015. The IRS has also completed the audit of our tax return that began after the Spin-Off and ended on March 31, 2015. We believe appropriate provisions for all outstanding issues relating to our portion of these returns have been made for all remaining open years in all jurisdictions.

The Company leases certain warehouse, distribution and office facilities, vehicles and office equipment under operating leases. These operating lease liabilities represent commitments for minimum lease payments under non-cancelable operating leases in the amount of $128,569 See Note 3. Leases.

We have known purchase commitments of $190,307, which are defined as an agreement to purchase goods or services that is enforceable and legally binding on us and that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction.

Litigation—From time-to-time, we are subject to various legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of our business. We do not consider any of such proceedings that are currently pending, individually or in the aggregate to be material to our business or likely to result in a material adverse effect on our operating results, financial condition, or cash flows.

Environmental liabilities—Our operations and ownership or use of real property are subject to a number of federal, state, and local environmental laws and regulations, as well as applicable foreign laws and regulations, including those governing the discharge of hazardous materials, remediation of contaminated sites, and restoration of damage to the environment. We are obligated to conduct investigation and/or remediation activities at certain sites that we own or operate or formerly owned or operated.

Certain of our former subsidiaries have been identified as potentially responsible parties (“PRP”), along with other parties, in regulatory agency actions associated with hazardous waste sites. As a PRP, those former subsidiaries may be required to pay a share of the costs of the investigation and clean-up of these sites. In that event, we would be obligated to indemnify those subsidiaries for those costs. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, we have concluded that these matters, individually or in the aggregate, will not have a material adverse effect on our operating results, financial condition, or cash flows. We have recorded a liability for environmental remediation of $710 as of March 31, 2020 and $729 as of March 31, 2019.

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We could incur substantial additional costs, including cleanup costs, resource restoration, fines, and penalties or third-party property damage or personal injury claims, as a result of violations or liabilities under environmental laws or non-compliance with environmental permits. While environmental laws and regulations have not had a material adverse effect on our operating results, financial condition, or cash flows in the past, and we have environmental management programs in place to mitigate these risks, it is difficult to predict whether they will have a material impact in the future.

We have authorized 50,000,000 shares of preferred stock, par value $1.00, none of which have been issued.

We maintain an equity incentive plan (the “Vista Outdoor Inc. 2014 Stock Incentive Plan” or the “Plan”), which became effective on February 10, 2015, following the Spin-Off from Orbital ATK. The Plan was established to govern the awards granted to our employees and directors and provides for awards of stock options, restricted stock and restricted stock units, performance awards, and total stockholder return performance awards ("TSR awards") that will be granted to certain of our employees and directors subsequent to the Spin-Off. We issue shares from the Plan upon the vesting of performance awards, TSR awards, and restricted stock units, grant of restricted stock, or exercise of stock options and the awards are accounted for as equity-based compensation.

As of February 10, 2015, we are authorized to issue up to 5,750,000 common shares under the Plan, plus additional shares issuable pursuant to awards granted immediately prior to the Spin-Off in respect of equity-based awards of Orbital ATK granted under the Orbital ATK Stock Plans that were outstanding immediately prior to the Spin-Off and converted into Vista Outdoor awards subsequent to the Spin-Off. As of March 31, 2020, 2,391,100 common shares are available to be granted.

Performance Based Awards

Performance based awards are stock-based awards in which the number of shares ultimately received depends on our performance against specified metrics over a three-year performance period. These performance metrics are established on the grant date. At the end of the performance period, the number of shares of stock that could be issued is fixed based upon the degree of achievement of the performance goals. The number of shares that could be issued can range from 0% to 200% of the participant's target award. We have granted two types of performance based awards: performance awards and total stockholder return performance awards under the Plan.

Performance awards are initially valued at our closing stock price on the date of grant. Stock compensation expense is recognized on a straight-line basis over the vesting period. The expense recognized over the vesting period is adjusted up or down based on the anticipated performance level during the performance period. If the performance metrics are not probable of achievement during the performance period, compensation expense would be reversed. The awards are forfeited if the threshold performance metrics are not achieved as of the end of the performance period. The performance share vest at the end of the performance period.

Total stockholder return performance awards are awards that compare the performance of our common stock over a three-year period to that of our peer group. The fair value of these awards is derived using the Monte Carlo simulation which utilizes the stock volatility, dividend yield and market correlation of Vista to its peer group. The Monte Carlo fair value is expensed on a straight-line basis over the vesting period. The awards are forfeited if the threshold performance metrics are not achieved as of the end of the performance period. The performance awards vest at the end of the performance period.

We granted 254,805 and 78,276 performance awards at target during the fiscal years 2019 and 2018, respectively. No performance awards were granted during fiscal 2020. The awards granted during fiscal years 2019 and 2018 are subject to a three-year performance period provided that certain performance goals are achieved, the participant could earn from 0% up to 200% of the three-year target award shares, subject to continued service through the vesting date. Based on our performance, participants earned approximately 43% and 29% of the performance awards granted in fiscal 2018 and fiscal 2017, and earned during fiscal years 2020 and 2019. The performance period for the performance based awards granted in fiscal 2019 ends March 31, 2021.

During fiscal years 2019, and 2018, respectively we granted 109,202 and 34,743 total stockholder return performance awards at target. No stockholder return performance awards were granted during fiscal 2020. The awards granted during fiscal years 2019 and 2018 are subject to a three-year performance period related to the performance of our common stock over a three-year period to that of our peer group. The participant could earn from 0% up to 200% of the three-year target award shares, subject to continued service through the vesting date. Based on the performance of our common stock, participants

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earned none of the target award shares granted in fiscal 2018 and fiscal 2017. The performance period for the total stockholder return performance awards granted in fiscal 2019 ends March 31, 2021.

The weighted average grant date fair value for performance based award grants was $9.59 and $18.28 in fiscal years 2019 and 2018, respectively. There were no performance based award grants in fiscal 2020.

A summary of our performance based awards for fiscal 2020 is presented below:

		Shares			Weighted Average Grant Date Fair Value
Nonvested at March 31, 2019		1,606,638			$	12.85
Cancelled/forfeited		(385,359	)		28.74
Performance-based adjustment (1)		(803,319	)		12.85
Earned (2)		(23,970	)		30.70
Nonvested at March 31, 2020 (3)		393,990			$	11.01

(1) Adjustment equals the difference between non-vested shares at 200% of target shares and the target share amount. (2) Performance shares are earned and vest at the end of the performance period based on the performance criteria achieved, subject to continued service through the vesting date. (3) Non-vested shares as of March 31, 2020 are equal to the target amount of performance shares granted and not yet earned.

At March 31, 2020, the unamortized compensation expense related to these awards was $1,491, which is expected to be recognized over a weighted-average period of 1.9 years.

Stock Option awards

Stock options may be granted periodically, with an exercise price equal to the fair value of common stock on the date of grant, and generally vest from one to three years from the date of grant. Stock options are generally granted with ten-year terms. We recorded compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. The model uses various assumptions, including a risk-free interest rate, the expected term of the options, the expected stock price volatility, and the expected dividend yield. The weighted average grant date fair value for stock option grants was $4.76 and $7.78 in fiscal years 2019 and 2018, respectively. There were no stock options granted during fiscal 2020.

A summary of our stock option activity for fiscal 2020 is presented below:

		Shares			Weighted Average Exercise Price				Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at March 31, 2019		704,472			$	16.68			8.2		$	—
Forfeited/expired		(153,167	)		19.04
Outstanding at March 31, 2020		551,305			$	16.03			7.3		$	76
Options exercisable at March 31, 2020		334,062			$	18.63			6.4		$	25

There were no options exercised during fiscal years 2020 and 2019. The total intrinsic value of options exercised during fiscal 2018 was $1,673. Cash received from options exercised during fiscal 2018 was $4,824.

As of March 31, 2020, the total unrecognized compensation cost related to stock option awards was $958 and is expected to be realized over a weighted average period of 2.0 years.

Restricted Stock Units

Restricted stock units granted to certain key employees and non-employee directors totaled 681,043, 584,154 and 541,326 shares in fiscal years 2020, 2019, and 2018, respectively. The weighted average grant date fair value of restricted stock

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units granted was $6.03, $11.41 and $17.59 in fiscal years 2020, 2019, and 2018, respectively. Restricted stock units vest over periods generally ranging from one to three years from the date of award and are valued at the market price of common stock as of the grant date.

A summary of our restricted stock unit award activity for fiscal 2020 is presented below.

		Shares			Weighted Average Grant Date Fair Value
Nonvested at March 31, 2019		948,422			$	6.75
Granted		681,043			6.03
Vested		(329,244	)		17.01
Forfeited		(152,851	)		13.43
Nonvested at March 31, 2020		1,147,370			$	9.37

As of March 31, 2020, the total unrecognized compensation cost related to nonvested restricted stock units was $7,429 and is expected to be realized over a weighted average period of 2.3 years.

Total pre-tax stock-based compensation expense of $6,810, $6,599, and $9,299 was recognized during fiscal 2020, 2019, and 2018, respectively. The total income tax benefit recognized in the consolidated statements of comprehensive income for share-based compensation was $371, $28, and $2,132 during fiscal 2020, 2019, and 2018, respectively.

Share Repurchases

On August 25, 2016, our Board of Directors authorized a new share repurchase program of up to $100,000 worth of shares of our common stock, executable through March 31, 2018. We completed that program during fiscal 2017. No additional new share repurchase programs have been authorized, and therefore we had no repurchases of shares during fiscal 2020, 2019, and 2018.

In accordance with the provisions of the 5.875% Notes, the outstanding notes are guaranteed on an unsecured basis, jointly and severally and fully and unconditionally, by substantially all of Vista Outdoor domestic subsidiaries and by Advanced Arrow S. de R.L. de C.V. and Hydrosport, S. de R.L. de C.V. The parent company has no independent assets or operations. All of these guarantor subsidiaries are 100% owned by Vista Outdoor and any subsidiaries of the parent company other than the subsidiary guarantors are minor. There are no significant restrictions on the Company’s ability, or the ability of any guarantor, to obtain funds from its subsidiaries through dividends or loans, and there are no material restrictions on the ability of our consolidated and unconsolidated subsidiaries to transfer funds to the Company in the form of cash dividends, loans or advances.  These guarantees are senior or senior subordinated obligations, as applicable, of the applicable subsidiary guarantors.

At March 31, 2019, we had two operating and reportable segments. During the fourth quarter of fiscal 2020, we realigned our internal reporting structure and modified our operating segment structure to provide investors with improved disclosure that is consistent with how our chief operating decision maker (CODM), our Chief Executive Officer, allocates resources and makes decisions. Based on these changes, management concluded that we had six operating segments, which have been aggregated into two reportable segments, Shooting Sports and Outdoor Products.

Shooting Sports is comprised of our Ammunition and Hunting and Shooting operating segments.  Outdoor Products is comprised of our Action Sports, Outdoor Cooking, Hydration and Golf operating segments. The operating segments comprising the Company’s respective new reportable segments share numerous commonalities, including similar core consumers, distribution channels and supply chains.

Our CODM relies on internal management reporting that analyzes consolidated results to the net income level and operating segment's EBIT, which is defined as earnings (loss) before interest and income taxes. Certain corporate-related costs and other non-recurring costs are not allocated to the segments in order to present comparable results from period to period.

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These include impairment charges, restructuring related-costs, merger and acquisition costs, and other non-recurring items. Our previous segment measures were net sales, and gross profit, and identifiable assets were not included in our previous segment measures. The segment reporting for prior comparative periods have been restated to conform to the change in reportable segments, and the segment measures.

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Shooting Sports generated 68% of our external sales in fiscal 2020. Shooting Sports is comprised of ammunition and hunting shooting accessories product lines. Ammunition products include centerfire ammunition, rimfire ammunition, shotshell ammunition and reloading components. Hunting accessories products include high-performance hunting arrows, game calls, hunting blinds, game cameras, and decoys, and optics products such as binoculars, riflescopes and telescopes. Shooting accessories products include reloading equipment, clay targets, and premium gun care products and tactical products such as holsters, duty gear, bags and packs. Our Firearms business was divested early in the second quarter ending September 29, 2019.

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Outdoor Products generated 32% of our external sales in fiscal 2020. Outdoor Products is comprised of sports protection, outdoor cooking, golf, and hydration product lines. Sports protection includes helmets, goggles, and accessories for cycling, snow sports, action sports and powersports. Outdoor cooking includes grills and stoves. Golf products include laser rangefinders and other golf technology products. Hydration products include hydration packs and water bottles. Our Eyewear brands were divested during the second quarter of fiscal year 2019.

Walmart accounted for approximately 13%, 14%, and 13% of our total fiscal 2020, 2019, and 2018 sales, respectively. No other single customer contributed more than 10% of our sales in fiscal 2020, 2019, and 2018.

Our sales to foreign customers were $301,648, $426,594, and $535,170 in fiscal 2020, 2019, and 2018, respectively. During fiscal 2020, approximately 44% of these sales were in Shooting Sports and 56% were in Outdoor Products. Sales to no individual country outside the United States accounted for more than 5% of our sales in fiscal 2020, 2019, and 2018.

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The following summarizes our results by segment:

		Year ended March 31, 2020
		Shooting Sports				Outdoor Products				(a) Corporate and other reconciling items				Total
Sales, net		$	1,189,336			$	566,535			$	—			$	1,755,871
Gross Profit		210,866				149,420				(1,520		)		358,766
EBIT		80,028				29,998				(242,262		)		(132,236		)
Capital expenditures		8,415				6,989				3,857				19,261
Depreciation and amortization		35,358				25,813				6,687				67,858
Total assets		698,019				614,535				78,735				1,391,289

		Year ended March 31, 2019
		Shooting Sports				Outdoor Products				(a) Corporate and other reconciling items				Total
Sales, net		$	1,410,244			$	648,284			$	—			$	2,058,528
Gross Profit		251,385				180,275				(15,972		)		415,688
EBIT		90,654				34,982				(742,717		)		(617,081		)
Capital expenditures		23,061				15,193				5,712				43,966
Depreciation and amortization		41,936				29,186				6,381				77,503
Total assets		1,049,487				608,697				79,839				1,738,023

		Year ended March 31, 2018
		Shooting Sports				Outdoor Products				(a) Corporate and other reconciling items				Total
Sales, net		$	1,547,540			$	760,923			$	—			$	2,308,463
Gross Profit		295,721				225,769				(528		)		520,962
EBIT		110,300				36,272				(231,147		)		(84,575		)
Capital expenditures		41,503				17,009				5,574				64,086
Depreciation and amortization		59,200				29,502				1,057				89,759
Total assets		1,359,444				1,163,713				91,679				2,614,836

(a) Reconciling items in fiscal 2020 include non-cash goodwill and intangible impairment charges of $155,588 related to the historical outdoor products segment and $9,429 of held for sale impairment charges related to the historical shooting sports segment, restructuring charges of $9,210, contingent consideration expenses of $1,685, restructuring costs of $1,520, merger and acquisition costs of $644 and loss on the sale of our Firearms business of $433. Fiscal 2019 reconciling items include non-cash goodwill. intangible held for sale asset impairment charges of $500,944 related to the historical Outdoor Products segment and $120,238 of held for sale goodwill and held for sale asset impairment charges related to the historical Shooting Sports segment, business transformation charges of $38,551, contingent consideration expenses of $3,371, merger and acquisition costs of $9,824 and loss on the sale of our Eyewear business of $4,925. Fiscal 2018 reconciling items include non-cash goodwill and intangible impairment and held for sale impairment charges of $152,320 related to the historical outdoor products segment, restructuring charges of $17,958, contingent consideration benefits of ($1,515), merger and acquisition costs of $1,893 and pension curtailment benefits of ($5,782).

Sales, net exclude all intercompany sales between Shooting Sports and Outdoor Products, which were not material for any of the fiscal years presented. The capital expenditures above include amounts that were not paid as of March 31, 2020.

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Quarterly financial data is summarized as follows:

		Fiscal 2020 Quarters Ended
		June 30,				September 29,				December 29,				March 31,
Sales, net		$	459,774			$	445,016			$	424,770			$	426,311
Gross profit		95,078				90,264				88,790				84,634
Net income (loss)		(16,615		)		(11,898		)		14,648				(141,214		)
Earnings (loss) per common share:
Basic and diluted		$	(0.29	)		$	(0.21	)		$	0.25			$	(2.44	)
Weighted-average number of common shares outstanding:
Basic		57,722				57,768				57,878				57,944
Diluted		57,722				57,768				57,978				57,944

		Fiscal 2020 Quarters Ended
		July 1,				September 30,				December 30,				March 31,
Sales, net		$	528,836			$	546,585			$	467,771			$	515,336
Gross profit		113,338				108,757				94,236				99,357
Net income (loss)		(52,348		)		(32,818		)		(514,642		)		(48,635		)
Earnings (loss) per common share:
Basic and diluted		$	(0.91	)		$	(0.57	)		$	(8.94	)		$	(0.84	)
Weighted-average number of common shares outstanding:
Basic and diluted		57,454				57,528				57,572				57,604

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