View Filing Data

Loss from operations of discontinued security solutions division

17,506

5,393

52,776

8,618

Discontinued operations (Note 3):

(601)

(1,600)

(3,150)

(8,306)

Income tax expense/(benefit)

^[1]

2,329

(645)

(3,921)

(3,326)

Income/(loss) from discontinued operations

(2,930)

(955)

771

(4,980)

Net income/comprehensive income

$ 14,576

$ 4,438

$ 53,547

$ 3,638

Net income per share (Note 12):

Basic-continuing operations

^[2]

$ 0.27

$ 0.08

$ 0.81

$ 0.13

Basic-net income

^[2]

0.22

0.07

0.82

0.06

Diluted-continuing operations

^[2]

0.26

0.08

0.79

0.13

Diluted-net income

^[2]

$ 0.22

$ 0.07

$ 0.80

$ 0.06

Weighted average number of common shares outstanding (Note 12):

Basic

65,149

64,874

65,457

64,700

Diluted

66,421

66,582

66,909

65,154

[1]	Income tax expense for the three months ended January 31, 2013 related to the reduction in worthless stock tax benefit resulting from additional basis information calculated during the quarter from the divestiture of SWSS. Income tax benefit for the nine months ended January 31, 2013 primarily related to the future tax benefit we recorded resulting from the divestiture of SWSS.
[2]	Net income per share may not equal earnings per share from continuing plus discontinued operations due to rounding.

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Jan. 31, 2013 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Comprehensive Income	Treasury Stock
Beginning Balance (in shares) at Apr. 30, 2012		66,512,000				1,200,000
Beginning Balance at Apr. 30, 2012	$ 112,844	$ 67	$ 189,379	$ (70,279)	$ 73	$ (6,396)
Exercise of employee stock options (in shares)	837,842	839,000
Exercise of employee stock options	$ 3,429		3,429
Repurchase of treasury stock (in shares)						2,100,000
Repurchase of treasury stock	(20,000)					$ (20,000)
Stock-based compensation	3,131		3,131
Tax deduction of stock-based compensation in excess of book deductions	997		997
Shares issued under employee stock purchase plan (in shares)		92,000
Shares issued under employee stock purchase plan	666		666
Issuance of common stock under restricted stock unit awards		16,000
Net income	53,547			53,547
Ending Balance (in shares) at Jan. 31, 2013		67,459,000				3,300,000
Ending Balance at Jan. 31, 2013	$ 154,614	$ 67	$ 197,602	$ (16,732)	$ 73	$ (26,396)

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Cash flows from operating activities:
Net income	$ 53,547	$ 3,638
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	12,023	11,286
Loss on sale of business, including loss on sale of discontinued operations, including $45 of stock-based compensation expense (Note 12)	1,222	241
Loss on sale/disposition of assets	277	251
Provisions for/(recoveries of) losses on accounts receivable	378	(326)
Change in disposal group assets and liabilities	(1,215)	5,241
Stock-based compensation expense	3,086	1,797
Excess book deduction of stock-based compensation		(266)
Changes in operating assets and liabilities:
Accounts receivable	9,064	15,555
Inventories	(13,912)	(9,988)
Other current assets	(1,150)	1,578
Income tax receivable/payable	(6,091)	1,239
Accounts payable	(4,241)	(13,519)
Accrued payroll	1,867	2,785
Accrued taxes other than income	589	(8,000)
Accrued profit sharing	(909)	(459)
Accrued other expenses	(7,795)	(5,348)
Accrued product/municipal liability	120	(149)
Accrued warranty	(335)	1,687
Other assets	(45)	(64)
Other non-current liabilities	284	599
Net cash provided by operating activities	46,764	7,778
Cash flows from investing activities:
Proceeds from sale of business including discontinued operations (Note 3)	7,500	500
Receipts from note receivable	55
Payments to acquire patents and software	(36)	(124)
Proceeds from sale of property and equipment	1,037	15
Payments to acquire property and equipment	(28,399)	(10,067)
Net cash used in investing activities	(19,843)	(9,676)
Cash flows from financing activities:
Proceeds from loans and notes payable	1,753	1,532
Cash paid for debt issue costs		(1,859)
Proceeds from energy efficiency incentive programs		225
Payments on capital lease obligation	(450)
Cash paid for redemption of convertible notes		(30,000)
Payments on loans and notes payable	(8,034)	(1,264)
Payments to acquire treasury stock	(20,000)
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan	4,095	717
Excess tax benefit of stock-based compensation	997
Net cash used in financing activities	(21,639)	(30,649)
Net increase/(decrease) in cash and cash equivalents	5,282	(32,547)
Cash and cash equivalents, beginning of period	56,717	58,292
Cash and cash equivalents, end of period	61,999	25,745
Supplemental disclosure of cash flow information Cash paid for:
Interest	5,252	5,745
Income taxes	$ 30,976	$ 1,524

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Thousands	9 Months Ended
	Jan. 31, 2013 USD ($)
Loss on sale of discontinued operations, stock-based compensation expense	$ 45

Organization

9 Months Ended

Jan. 31, 2013

Organization

(1) Organization:

We are one of the world’s leading manufacturers of firearms. We manufacture a wide array of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a wide variety of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. We are one of the largest manufacturers of handguns, modern sporting rifles, and handcuffs in the United States and an active participant in the hunting rifle market. We manufacture our firearm products at our facilities in Springfield, Massachusetts and Houlton, Maine. We sell our products under the Smith & Wesson^®, M&P^®, Thompson/Center^®, Performance Center^®, and Walther^® brands. In addition, we pursue opportunities to license our name and trademarks to third parties for use in association with their products and services.

Basis of Presentation

9 Months Ended

Jan. 31, 2013

Basis of Presentation

(2) Basis of Presentation:

The consolidated balance sheets as of January 31, 2013, the consolidated statements of income and comprehensive income for the nine months ended January 31, 2013 and 2012, the consolidated statement of changes in stockholders’ equity for the nine months ended January 31, 2013, and the consolidated statements of cash flows for the nine months ended January 31, 2013 and 2012 have been prepared by us, without audit.

SWSS LLC, formerly Smith & Wesson Security Solutions, Inc. (“SWSS”), our security solutions division, is being presented as discontinued operations in the consolidated statements of income and comprehensive income for all periods presented. See Note 3 for additional information regarding these discontinued operations. Unless stated otherwise, any reference to the consolidated statements of income and comprehensive income items in the notes to the consolidated financial statements refers to results from continuing operations.

The quarter end for our wholly owned subsidiaries, Smith & Wesson Corp. and SWSS, was January 27, 2013, a four-day variance to our reported fiscal quarter end of January 31, 2013. This variance did not create any material difference in the consolidated financial statements as presented. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows at January 31, 2013 and for the periods presented, have been included. All significant intercompany transactions have been eliminated. The consolidated balance sheets as of April 30, 2012 have been derived from our audited financial statements.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2012, filed with the SEC on June 28, 2012. The results of operations for the nine months ended January 31, 2013 may not be indicative of the results that may be expected for the year ending April 30, 2013, or any other period.

Reclassification

Certain amounts presented in the prior periods’ consolidated cash flows related to discontinued operations have been reclassified to conform to the current period’s presentation.

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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-Number 94-6
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Discontinued Operations

9 Months Ended

Jan. 31, 2013

Discontinued Operations

(3) Discontinued Operations:

Based on a combination of factors occurring since our July 2009 acquisition of SWSS, including federal and corporate budgetary constraints, increased price competition, and a fundamental change in our strategic direction, on October 5, 2011, we committed to a plan to divest the assets, liabilities, and ongoing operations of our security solutions division. On July 10, 2012, we entered into an Asset Purchase Agreement with FutureNet Group, Inc. (“FutureNet”) providing for FutureNet to acquire substantially all of the assets and assume certain of the liabilities of SWSS for a purchase price of $7.9 million, including a $400,000 working capital adjustment. On July 26, 2012, we completed the disposition of SWSS and received $5.5 million in cash and recorded a receivable, included in other assets on our consolidated balance sheets, for the remaining portion of the purchase price. During the three months ended October 31, 2012, we received $2.0 million related to this receivable. Prior to the disposition, we presented the assets and liabilities on separate lines as held for sale on our consolidated balance sheets. The operating results of SWSS are classified as discontinued operations and are presented in a separate line in the consolidated statements of income and comprehensive income for all periods presented. In connection with the divestiture of SWSS, we sold net assets of $13.0 million and incurred $1.6 million in closing-related costs, including $655,000 of legal, professional, and investment banking fees and $918,000 of severance and employee-related costs. During the prior fiscal year, we recognized a loss on sale of $5.8 million relating to the disposal group and we recorded an additional $1.2 million loss during the nine months ended January 31, 2013, which is included in the loss from discontinued operations. The loss before income taxes for the three months ended January 31, 2013 primarily related to professional fees associated with retained liabilities and an additional loss on sale as a result of a $424,000 settlement related to the working capital adjustment.

The following is a summary of the operating results of the discontinued operations (in thousands):


	For the Three Months Ended January 31,						For the Nine Months Ended January 31,
	2013			2012			2013			2012
Net sales from discontinued operations	$	—		$	8,432		$	6,732		$	21,879
Loss before income taxes	$	(601	)	$	(1,600	)	$	(3,150	)	$	(8,306	)
Income tax expense/(benefit) (a)	$	2,329		$	(645	)	$	(3,921	)	$	(3,326	)
Net income/(loss) from discontinued operations	$	(2,930	)	$	(955	)	$	771		$	(4,980	)

(a)

Income tax expense for the three months ended January 31, 2013 related to the reduction in worthless stock tax benefit resulting from additional basis information calculated during the quarter from the divestiture of SWSS. Income tax benefit for the nine months ended January 31, 2013 primarily related to the future tax benefit we recorded resulting from the divestiture of SWSS.

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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Significant Accounting Policies

Significant Accounting Policies

9 Months Ended

Jan. 31, 2013

(4) Significant Accounting Policies:

Revenue Recognition — For our firearm products, we recognize revenue when the following four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been provided; (3) the fee is fixed or determinable; and (4) collection is reasonably assured. Revenue from our security solutions business has been reclassified to discontinued operations.

Product sales account for most of our firearm revenue. We recognize revenue from firearm product sales when the earnings process is complete and the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until customer acceptance is received. We also provide tooling, forging, heat treating, finishing, plating, and engineering support services to customers; we recognize this revenue when accepted by the customer, if applicable, when no further contingencies or material performance obligations exist, and when collectability is reasonably assured, thereby earning us the right to receive and retain payments for services performed and billed.

We recognize trademark licensing revenue for individual licensees based on historical experience and expected cash receipts from licensees. Licensing revenue consists of minimum royalties and/or a percentage of a licensee’s sales on licensed products. Under our current licensing agreements, most of this revenue is payable on a calendar quarter basis. We recognize non-refundable license fees received upon initial signing of license agreements as revenue when no future obligation is required on our part. As a result of a combination of uncertain factors regarding existing licensees, including current and past payment performance, market acceptance of the licensees’ products, and insufficient historical experience, we believe that reasonable assurance of collectability does not exist based on the results and past payment performance of licensees in general. Therefore, we do not recognize minimum royalty payments upon contract signing, but instead record royalty revenue monthly when the minimum royalty can be reasonably estimated for that month and payment is assured.

Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting periods. Our significant estimates include accruals for warranty, product liability, workers’ compensation expense, environmental liability, excess and obsolete inventory, allowance for doubtful accounts, income tax expense, forfeiture rates on stock-based awards, and medical claims payable. Actual results could differ from those estimates.

Segment Information — We have historically reported certain financial information under two segments: firearms and security solutions. As a result of our divestiture of SWSS, the results of the operations comprising the security solutions segment are now being reported as discontinued operations for all periods presented. See Note 3—Discontinued Operations for additional information.

Valuation of Long-lived Tangible and Intangible Assets — We evaluate the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. When such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values are reduced to fair value and this adjusted carrying value becomes the asset’s new cost basis. We determine fair value primarily using future anticipated cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved.

We have significant long-lived tangible and intangible assets, which are susceptible to valuation adjustments as a result of changes in various factors or conditions. The most significant long-lived tangible and intangible assets are fixed assets, developed technology, patents, trademarks, and trade names. We amortize all finite-lived intangible assets either on a straight-line basis or based upon patterns in which we expect to utilize the economic benefits of such assets. We initially determine the values of intangible assets by a risk-adjusted, discounted cash flow approach. We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate that the carrying values may not be recoverable. Factors we consider important, which could trigger an impairment of such assets, include the following:

•

significant underperformance relative to historical or projected future operating results;

•

significant changes in the manner or use of the assets or the strategy for our overall business;

•

significant negative industry or economic trends;

•

significant decline in our stock price for a sustained period; and

•

a decline in our market capitalization below net book value.

Future adverse changes in these or other unforeseeable factors could result in an impairment charge that would materially impact future results of operations and financial position in the reporting period identified. No impairment charges were taken during the nine months ended January 31, 2013.

Notes Payable

9 Months Ended

Jan. 31, 2013

Notes Payable

(5) Notes Payable:

Credit Facilities — We have a $60.0 million credit facility that provides for availability until December 7, 2014 for working capital needs. The revolving line of credit bears interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our leverage ratio, at our election. As of January 31, 2013, there were no borrowings outstanding. Had there been borrowings, they would have borne an interest rate of 4.5% per annum.

As security for the credit facility, TD Bank, N.A. and the other lenders (the “Lenders”) thereunder have a first priority lien on all of our personal property and real estate assets.

We may prepay, in whole or in part, any of the loans that have interest rates determined by reference to the prime rate, with interest accrued to the date of the prepayment on the amount prepaid, without any penalty or premium. Loans with a fixed rate of interest determined by reference to the LIBOR interest rate may be prepaid provided that we reimburse the Lenders for any costs associated with (i) our making payments on dates other than those specified in the credit agreement, or (ii) our borrowing or converting a LIBOR loan on a date other than the borrowing or conversion dates specified in the credit agreement.

Convertible Notes — On December 15, 2006, we issued an aggregate of $80.0 million of 4% senior convertible notes (the “Convertible Notes”) maturing on December 15, 2026 to qualified institutional buyers pursuant to the terms and conditions of a securities purchase agreement and indenture. In fiscal 2011, we exchanged a total of $50.0 million of Convertible Notes for $50.0 million of Senior Notes (as defined below). During fiscal 2012, we repurchased the remaining $30.0 million of Convertible Notes utilizing cash on hand. As of January 31, 2013, there were no outstanding Convertible Notes.

Senior Notes — During fiscal 2011, we issued an aggregate of $50.0 million of 9.5% senior notes due January 14, 2016 (“Senior Notes”) in exchange for $50.0 million of Convertible Notes pursuant to the terms and conditions of an exchange agreement and indenture (the “Senior Notes Indenture”). During the nine months ended January 31, 2013, we repurchased a total of $6.4 million of our Senior Notes in the open market utilizing cash on hand. We paid $552,000 of interest relating to these purchases.

The Senior Notes bear interest at a rate of 9.5% per annum payable on June 15 and December 15 of each year.

The Senior Notes are general, unsecured obligations of our company. The Senior Notes Indenture contains certain affirmative and negative covenants, including limitations on restricted payments, limitations on indebtedness, limitations on the sale of assets, and limitations on liens.

The limitation on indebtedness in the Senior Notes Indenture is only applicable at such time that the consolidated coverage ratio (as set forth in the Senior Notes Indenture) for us and our restricted subsidiaries is less than 2.00 to 1.00. In general, as set forth in the Senior Notes Indenture, the consolidated coverage ratio is determined by comparing our prior four quarters’ consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) to our consolidated interest expense.

The credit agreement with the Lenders contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. The Senior Notes Indenture contains a financial covenant relating to times interest earned. We were in compliance with all debt covenants as of January 31, 2013.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Capital Lease

9 Months Ended

Jan. 31, 2013

Capital Lease

(6) Capital Lease:

On October 28, 2011, we entered into a sale-leaseback agreement that included the sale of certain machinery and equipment. We then leased a total of $3.5 million of machinery and equipment to increase production capacity. The lease has an effective interest rate of 5.76% and is payable in 60 monthly installments through fiscal 2017. Leases are accounted for under the provisions of Accounting Standards Codification (“ASC”) 840-10, Leases, which requires that leases be evaluated and classified as operating or capital leases for financial reporting purposes. Based on our evaluation of ASC 840-10, we determined that the lease qualifies as a capital lease because the net present value of future lease payments exceed 90% of the fair market value of the leased machinery and equipment. We have pledged the assets financed to secure the amounts outstanding. We have included $436,000 of short-term capital lease obligation in accrued expenses and $2.5 million in other non-current liabilities.

The following sets forth the future minimum lease payments as of January 31, 2013 (in thousands):


	Capital Lease Obligation
2013	$	149
2014		596
2015		596
2016		596
2017		1,493

Total future minimum lease payments		3,430
Less amounts representing interest		(461	)

Present value of minimum lease payments		2,969
Less current maturities of capital lease		(436	)

Long-term maturities of capital lease	$	2,533

Inventories

9 Months Ended

Jan. 31, 2013

Inventories

(7) Inventories:

The following sets forth a summary of inventories, stated at the lower of cost or market, as of January 31, 2013 and April 30, 2012 (in thousands):


	January 31, 2013		April 30, 2012
Finished goods	$	21,706	$	14,017
Finished parts		34,800		28,936
Work in process		8,561		7,889
Raw material		4,141		4,454

Total inventories	$	69,208	$	55,296

Accrued Expenses

9 Months Ended

Jan. 31, 2013

Accrued Expenses

(8) Accrued Expenses:

Accrued expenses consisted of the following as of January 31, 2013 and April 30, 2012 (in thousands):


	January 31, 2013		April 30, 2012
Accrued rebates and promotions	$	3,463	$	2,862
Accrued employee benefits		2,150		1,902
Accrued professional fees		2,112		3,682
Accrued other		1,379		1,803
Accrued distributor incentives		1,038		5,453
Accrued commissions		1,016		1,235
Accrued workers’ compensation		926		766
Interest payable		533		1,783
Accrued utilities		439		436
Current portion of capital lease obligation		436		418
Accrued severance/restructuring costs		185		345

Total accrued expenses	$	13,677	$	20,685

Advertising Costs

9 Months Ended

Jan. 31, 2013

Advertising Costs

(9) Advertising Costs:

We expense advertising costs, primarily consisting of magazine advertisements, printed materials, and television advertisements, either as incurred or upon the first occurrence of the advertising. Advertising expense, included in selling and marketing expenses, for continuing operations for the three months ended January 31, 2013 and 2012 was $4.7 million and $4.3 million, respectively. For the nine months ended January 31, 2013 and 2012, advertising expense for continuing operations was $11.8 million and $11.6 million, respectively.

Warranty Reserve

9 Months Ended

Jan. 31, 2013

Warranty Reserve

(10) Warranty Reserve:

We generally provide a lifetime warranty to the original purchaser of our new firearm products and provide warranties for retained liabilities for up to two years on the materials and workmanship in our security solutions projects, which includes products purchased by us from third-party manufacturers. We provide for estimated warranty obligations in the period in which we recognize the related revenue. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We make adjustments to accruals as warranty claims data and historical experience warrant. Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted.

On November 11, 2011, we initiated a recall of all Thompson/Center Arms Venture rifles manufactured since the product’s introduction in mid-2009. As of January 31, 2013, we had incurred $666,000 in recall costs and we estimate the remaining cost of this recall will be $864,000, which is included in the accrued warranty balance. Warranty expense for the nine months ended January 31, 2013 and 2012 was $2.9 million and $4.2 million, respectively.

The following sets forth the change in accrued warranty, a portion of which is recorded as a non-current liability, for the nine months ended January 31, 2013 and 2012 (in thousands):


	January 31, 2013			January 31, 2012
Beginning Balance	$	6,412		$	3,969
Warranties issued and adjustments to provisions		2,852			4,238
Warranty claims		(3,187	)		(2,346	)

Ending Balance	$	6,077		$	5,861

Self-Insurance Reserves

9 Months Ended

Jan. 31, 2013

Self-Insurance Reserves

(11) Self-Insurance Reserves:

As of January 31, 2013 and April 30, 2012, we had reserves for workers’ compensation, product liability, municipal liability, and medical/dental costs totaling $9.4 million and $9.0 million, respectively, of which $5.5 million and $5.4 million, respectively, have been classified as non-current and included in other non-current liabilities and $2.4 million and $2.2 million, respectively, have been included in accrued expenses, and $1.5 million and $1.4 million, respectively, have been included in accrued product/municipal liability on the accompanying consolidated balance sheets. In addition, $332,000 of excess workers’ compensation receivable has been classified as an other asset. While we believe these reserves to be adequate, it is possible that the ultimate liabilities will exceed such estimates. Amounts charged to expense were $9.6 million for the nine months ended January 31, 2013 and 2012.

It is our policy to provide an estimate for loss as a result of expected adverse findings or legal settlements on product liability, municipal liability, workers’ compensation, and other matters when such losses are probable and are reasonably estimable. It is also our policy to accrue for reasonably estimable legal costs associated with defending such litigation. While such estimates involve a range of possible costs, we determine, in consultation with litigation counsel, the most likely cost within such range on a case-by-case basis. We also record receivables from insurance carriers relating to these matters when their collection is probable. As of January 31, 2013 and April 30, 2012, we had accrued reserves for product and municipal litigation liabilities of $4.6 million and $4.5 million, respectively (of which $3.0 million and $3.1 million, respectively, were non-current), consisting entirely of expected legal defense costs. In addition, as of January 31, 2013 and April 30, 2012, we had recorded receivables from insurance carriers related to these liabilities of $1.9 million and $2.0 million, respectively, nearly all of which has been classified as other assets with $25,000 classified as other current assets.

Stockholders' Equity

9 Months Ended

Jan. 31, 2013

Stockholders' Equity

(12) Stockholders’ Equity:

Treasury Stock

In December 2012, we repurchased 2,099,603 shares of our common stock for a purchase price of $20.0 million. We repurchased these shares on the open market in accordance with the stock repurchase program approved by our board of directors utilizing cash on hand. We classified the repurchased shares as treasury stock included on our consolidated balance sheets. Our board of directors has authorized the repurchase of up to an additional $15.0 million of our common stock, subject to certain conditions, on the open market or in privately negotiated transactions on or prior to June 30, 2013.

Earnings per Share

The following table provides a reconciliation of the income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three and nine months ended January 31, 2013 and 2012 (in thousands, except per share data):


	For the Three Months Ended January 31,						For the Nine Months Ended January 31,
	2013			2012			2013		2012
Net income
Income from continuing operations	$	17,506		$	5,393		$	52,776	$	8,618
Income/(loss) from discontinued operations, net of tax		(2,930	)		(955	)		771		(4,980	)

Net income	$	14,576		$	4,438		$	53,547	$	3,638

Weighted average shares outstanding—Basic		65,149			64,874			65,457		64,700
Dilutive effect of stock option and award plans		1,272			508			1,452		454
Dilutive effect of conversion of convertible debt		—			1,200			—		—

Diluted shares outstanding		66,421			66,582			66,909		65,154

Earnings per share—Basic (a)
Income from continuing operations	$	0.27		$	0.08		$	0.81	$	0.13
Income/(loss) from discontinued operations	$	(0.04	)	$	(0.01	)	$	0.01	$	(0.08	)
Net income	$	0.22		$	0.07		$	0.82	$	0.06
Earnings per share—Diluted (a)
Income from continuing operations	$	0.26		$	0.08		$	0.79	$	0.13
Income/(loss) from discontinued operations	$	(0.04	)	$	(0.01	)	$	0.01	$	(0.08	)
Net income	$	0.22		$	0.07		$	0.80	$	0.06

(a)	Net income per share may not equal earnings per share from continuing plus discontinued operations due to rounding.

For the three months ended January 31, 2013, 165,946 shares of common stock issuable upon the exercise of stock options were excluded from the computation of diluted earnings per share because the effect would be antidilutive. For the three months ended January 31, 2012, 1,301,795 shares of common stock issuable upon the exercise of stock options were excluded from the computation of diluted earnings per share because the effect would be antidilutive.

For the nine months ended January 31, 2013, 209,441 shares of common stock issuable upon exercise of stock options were excluded from the computation of diluted earnings per share because the effect would be antidilutive. For the nine months ended January 31, 2012, 2,021,211 shares of common stock issuable upon conversion of the Convertible Notes, and 2,105,323 shares of common stock issuable upon the exercise of stock options were excluded from the computation of diluted earnings per share because the effect would be antidilutive.

Stock Option and Employee Stock Purchase Plans

We have two stock option plans (the “SOPs”): the 2001 Stock Option Plan and the 2004 Incentive Stock Plan. New grants under the 2001 Stock Option Plan have not been made since the approval of the 2004 Incentive Stock Plan at our September 13, 2004 annual meeting of stockholders. All new grants covering all participants are issued under the 2004 Incentive Stock Plan.

The 2004 Incentive Stock Plan authorizes the issuance of the lesser of (1) 15% of the shares of our common stock outstanding from time to time, or (2) 10,000,000 shares of our common stock. The plan permits the grant of options to acquire common stock, restricted common stock and deferred stock, restricted stock units (“RSUs”), stock appreciation rights, and dividend equivalents. Our board of directors, or a committee established by our board, administers the SOPs, selects recipients to whom awards are granted, and determines the grants to be awarded. Options granted under the SOPs are exercisable at a price determined by our board or committee at the time of grant, but in no event less than fair market value of our common stock on the date granted. Grants of options may be made to employees and directors without regard to any performance measures. All options issued pursuant to the SOPs are nontransferable and subject to forfeiture.

Except in specific circumstances, awards generally vest over a period of three years and are exercisable for a period of 10 years. The plan also permits the grant of awards to non-employees, which the board has granted in the past. A separate option grant, outside of the 2004 Incentive Stock Plan, for 500,000 shares was made, at an exercise price of $1.47 per share, in connection with the hiring of our former President and Chief Executive Officer during the fiscal year ended April 30, 2005. Our former President and Chief Executive Officer resigned during fiscal 2012 and continues his service as a member of our board of directors and was appointed Co-Vice Chairman of the Board. As of January 31, 2013, there were 250,000 options outstanding relating to this grant, which expire on December 6, 2014.

The number of shares and weighted average exercise prices of (i) options granted under the SOPs and (ii) the separate option grant to our former President and Chief Executive Officer outside of the SOPs for the nine months ended January 31, 2013 and 2012 are as follows:


	For the Nine Months Ended January 31,
	2013					2012
				Weighted-					Weighted-
				Average					Average
	Shares			Exercise Price		Shares			Exercise Price
Options outstanding, beginning of year		3,988,164		$	4.67		3,137,565		$	4.73
Granted during year		3,500			11.02		1,134,100			3.17
Exercised during year		(837,842	)		4.10		(126,834	)		1.70
Canceled/forfeited during year		(105,496	)		3.91		(234,499	)		4.91

Options outstanding, end of period		3,048,326		$	4.86		3,910,332		$	4.37

Weighted average remaining contractual life		6.39 years					6.84 years

Options exercisable, end of period		2,003,040		$	5.05		2,229,775		$	5.00

Weighted average remaining contractual life		5.23 years					5.11 years

The aggregate intrinsic value of outstanding options as of January 31, 2013 and 2012 was $13.0 million and $5.9 million, respectively. The aggregate intrinsic value of outstanding options that were exercisable as of January 31, 2013 and 2012 was $8.8 million and $3.2 million, respectively. The aggregate intrinsic value of the options exercised for the nine months ended January 31, 2013 and 2012 was $5.1 million and $218,000, respectively. At January 31, 2013, the total unamortized fair value of outstanding options was $1.3 million, which will be recognized over the remaining weighted average vesting period of 1.0 years.

On September 26, 2011, our stockholders approved our 2011 Employee Stock Purchase Plan (“ESPP”) to replace our expiring 2001 ESPP. All options and rights to participate in our ESPP are nontransferable and subject to forfeiture in accordance with our ESPP guidelines. In the event of certain corporate transactions, each option outstanding under our ESPP will be assumed or an equivalent option will be substituted by the successor corporation or a parent or subsidiary of such successor corporation. During the nine months ended January 31, 2013 and 2012, 92,476 and 234,418 shares were purchased under our ESPP, respectively.

We measure the cost of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. We calculate the fair value of our stock options issued to employees using the Black-Scholes model at the time the options are granted. That amount is then amortized over the vesting period of the option. With our ESPP, fair value is determined at the beginning of the purchase period and amortized over the term of each exercise period.

The following assumptions were used in valuing our options and ESPP purchases during the nine-month periods ended January 31, 2013 and 2012:


	For the Nine Months Ended January 31,
	2013		2012
Stock option grants:
Risk-free interest rate		0.31%		0.89 - 2.20%
Expected term		5.84 - 7.84 years		5.30 - 8.18 years
Expected volatility		70.0%		67.0 - 75.0%
Dividend yield		0%		0%
Employee Stock Purchase Plan:
Risk-free interest rate		0.14%		0.06%
Expected term		6 months		6 months
Expected volatility		63.7%		49.9%
Dividend yield		0%		0%

We estimate expected volatility using historical volatility for the expected term. The fair value of each stock option or ESPP purchase was estimated on the date of the grant using the Black-Scholes option pricing model (using the risk-free interest rate, expected term, expected volatility, and dividend yield variables, as noted in the above table). The total stock-based compensation expense, including stock options, purchases under our ESPP, and RSU and performance-based RSU (“PSU”) awards, was $3.1 million, which included $45,000 of stock-based compensation expense related to the loss on the sale of our discontinued operations, and $1.8 million for the nine months ended January 31, 2013 and 2012, respectively.

We grant service-based RSUs to employees, consultants, and directors. The grants are made at no cost to the recipient. An RSU represents the right to acquire one share of our common stock but does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees generally vest over a period of three years with one-third of the units vesting on each anniversary date of the grant date. The aggregate fair value of our RSU grants is being amortized to compensation expense over the vesting period.

We grant PSUs with market conditions to our executive officers. We grant PSUs without market conditions to our employees who are not executive officers, including for the successful implementation of our new enterprise resource planning (“ERP”) system. At the time of grant, we calculate the fair value of our market condition PSUs using the Monte-Carlo simulation. We incorporate the following variables into the valuation model:


	For the Nine Months Ended January 31,
	2013 (e)		2012
Grant date fair market value
Smith & Wesson Holding Corporation	$	—	$	3.57
NASDAQ Composite Index	$	—	$	2,781.91
Volatility (a)
Smith & Wesson Holding Corporation		—		67.67%
NASDAQ Composite Index		—		29.97%
Correlation coefficient (b)		—		0.46
Risk-free interest rate (c)		—		0.63%
Dividend yield (d)		—		0%

(a)	Volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years.

(b)	The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions.

(c)	The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.

(d)	We do not expect to pay dividends in the foreseeable future.

(e)	There were no PSUs with market conditions granted during the nine months ended January 31, 2013.

The market-condition PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year performance period. Our market-condition PSUs have a maximum aggregate award equal to 200% of the target amount granted. The number of market-condition PSUs that may be earned depends upon the total stockholder return (“TSR”) of our common stock compared to the TSR of the Russell 2000 Index (the “RUT”) or the NASDAQ Composite Index (the “IXIC”), as applicable, over the three-year performance period. Our stock must outperform the RUT or the IXIC, as applicable, by 10% in order for the target award to be earned.

During the nine months ended January 31, 2013, we granted 68,946 service-based RSUs and 63,050 PSUs without market conditions to employees and cancelled 12,664 service-based RSUs and 35,000 market-condition PSUs due to the service period condition not being met. Compensation expense recognized related to grants of RSUs and PSUs was $1.3 million for the nine months ended January 31, 2013. During the nine months ended January 31, 2013, we delivered 19,863 shares of common stock to current employees, consultants, and a former employee under vested RSUs with a total market value of $161,000.

During the nine months ended January 31, 2012, we granted 95,200 market-condition PSUs to certain of our executive officers. During the nine months ended January 31, 2012, we cancelled 88,700 market-condition PSUs previously granted to our former President and CEO. Compensation expense recognized related to grants of RSUs and PSUs, excluding the $180,000 impact of the 88,700 cancelled PSUs, was $227,000 for the nine months ended January 31, 2012. During the nine months ended January 31, 2012, we delivered 8,500 shares of common stock to an employee and consultants under vested RSUs with a total market value of $35,000.

A summary of activity in unvested RSUs and PSUs for the nine months ended January 31, 2013 and 2012 are as follows:


	For the Nine Months Ended January 31,
	2013					2012
	Total # of			Weighted Average		Total # of			Weighted Average
	Restricted			Grant Date		Restricted			Grant Date
	Stock Units			Fair Value		Stock Units			Fair Value
RSUs and PSUs outstanding, beginning of year		384,140		$	7.91		123,600		$	5.27
Awarded		131,996			9.45		95,200			4.76
Vested		(19,863	)		9.66		(8,500	)		2.75
Forfeited		(47,664	)		5.84		(88,700	)		5.30

RSUs and PSUs outstanding, end of period		448,609		$	8.07		121,600		$	6.14

As of January 31, 2013, there was $1.8 million of unrecognized compensation cost related to unvested RSUs and PSUs. This cost is expected to be recognized over a weighted average remaining contractual term of 1.3 years.

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
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-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
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Reference 22: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Income Taxes

9 Months Ended

Jan. 31, 2013

Income Taxes

(13) Income Taxes:

We use an asset and liability approach for financial accounting and reporting of income taxes. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured by applying enacted tax rates and laws to the taxable years in which differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

We recorded a future tax benefit of approximately $2.8 million resulting from a worthless stock deduction related to SWSS stock recognized during the nine months ended January 31, 2013.

At January 31, 2013, we had gross tax-affected unrecognized tax benefits of approximately $647,000, all of which, if recognized, would favorably impact our effective tax rate. Included in the unrecognized tax benefits at January 31, 2013 and April 30, 2012 was approximately $194,000 and $260,000, respectively, of accrued interest and penalties related to uncertain tax positions, which have been recorded in other non-current liabilities as none of these positions are expected to reverse in the next 12 months.

The full value of our unrecognized tax benefits has been classified as non-current income tax liabilities because a payment of cash is not anticipated within one year of the balance sheet date. In fiscal 2013, we expect to incur additional interest on outstanding tax accounts. We do not expect this change to be material. Interest and penalties related to income tax liabilities are included in income tax expense.

With limited exceptions, we are subject to U.S. federal, state, local, and non-U.S. income tax audits by tax authorities for fiscal years subsequent to April 30, 2008.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Commitments and Contingencies

Commitments and Contingencies

9 Months Ended

Jan. 31, 2013

(14) Commitments and Contingencies:

Litigation

On January 19, 2010, the DOJ unsealed indictments of 22 individuals from the law enforcement and military equipment industries, one of whom was our former Vice President-Sales, International & U.S. Law Enforcement. We were not charged in the indictment. We also were served with a Grand Jury subpoena for the production of documents. We have always taken, and continue to take seriously, our obligation as an industry leader to foster a responsible and ethical culture, which includes adherence to laws and industry regulations in the United States and abroad. Although we are cooperating fully with the DOJ in this matter and have undertaken a comprehensive review of company policies and procedures, the DOJ may determine that we have violated FCPA laws. On February 21, 2012, the DOJ filed a motion to dismiss with prejudice the indictments of the remaining defendants who are pending trial, including our former Vice President-Sales, International & U.S. Law Enforcement. On February 24, 2012, the district court granted the motion to dismiss. We cannot predict, however, when the investigation will be completed or its outcome. There could be additional indictments of our company, our officers, or our employees. If the DOJ determines that we violated FCPA laws, we may face sanctions, including significant civil and criminal penalties. In addition, we could be prevented from bidding on domestic military and government contracts and could risk debarment by the U.S. Department of State. We also face increased legal expenses and could see an increase in the cost of doing international business. We could also see private civil litigation arising as a result of the outcome of the investigation. In addition, responding to the investigation may divert the time and attention of our management from normal business operations. Regardless of the outcome of the investigation, the publicity surrounding the investigation and the potential risks associated with the investigation could negatively impact the perception of our company by investors, customers, and others.

In fiscal 2011, we received a subpoena from the staff of the SEC giving notice that the SEC is conducting a non-public, fact-finding inquiry to determine whether there have been any violations of the federal securities laws. It appears this civil inquiry was triggered in part by the DOJ investigation into potential FCPA violations. Although we are cooperating fully with the SEC in this matter, the SEC may determine that we have violated federal securities laws. We cannot predict when this inquiry will be completed or its outcome. If the SEC determines that we have violated federal securities laws, we may face injunctive relief, disgorgement of ill-gotten gains, and sanctions, including fines and penalties, or may be forced to take corrective actions that could increase our costs or otherwise adversely affect our business, results of operations, and liquidity. We also face increased legal expenses and could see an increase in the cost of doing business. We could also see private civil litigation arising as a result of the outcome of this inquiry. In addition, responding to the inquiry may divert the time and attention of our management from normal business operations. Regardless of the outcome of the inquiry, the publicity surrounding the inquiry and the potential risks associated with the inquiry could negatively impact the perception of our company by investors, customers, and others.

We are involved in two purported stockholder derivative lawsuits. These actions were brought by putative plaintiffs on behalf of our company against certain of our officers, directors, and employees. The lawsuits are based principally on a theory of breach of fiduciary duties. The putative plaintiffs seek damages on behalf of our company from the individual defendants. Damages sought in each case include equitable and/or injunctive relief, actions to improve corporate governance, and recovery of attorneys’ fees, and in one case also include declaratory relief and the rescission of certain option awards.

We are a defendant in approximately 17 product liability cases and are aware of approximately 8 other product liability claims, primarily alleging defective product design, defective manufacturing, or failure to provide adequate warnings. In addition, we are a co-defendant in a case filed on August 27, 1999 by the city of Gary, Indiana against numerous firearm manufacturers, distributors, and dealers seeking to recover damages allegedly arising out of the misuse of firearms by third parties. We believe that the various allegations as described above are unfounded, and, in addition, that any accident and any results from them were due to negligence or misuse of the firearm by the claimant or a third party and that there should be no recovery against us.

In addition, we are involved in lawsuits, claims, investigations, and proceedings, including commercial, environmental, and employment matters, which arise in the ordinary course of business.

The relief sought in individual cases primarily includes compensatory and, sometimes, punitive damages. Certain of the cases and claims seek unspecified compensatory or punitive damages. In others, compensatory damages sought may range from less than $75,000 to in excess of $1.4 million. In our experience, initial demands do not generally bear a reasonable relationship to the facts and circumstances of a particular matter. We believe that our accruals for product liability cases and claims, as described below, are a reasonable quantitative measure of the cost to us of product liability cases and claims.

We are vigorously defending ourselves in the lawsuits to which we are subject. An unfavorable outcome or prolonged litigation could harm our business. Litigation of this nature also is expensive and time consuming, and diverts the time and attention of our management.

We monitor the status of known claims and the product liability accrual, which includes amounts for defense costs for asserted and un-asserted claims. While it is difficult to forecast the outcome of these claims, we believe, after consultation with litigation counsel, that it is uncertain whether the outcome of these claims will have a material adverse effect on our financial position, results of operations, or cash flows. We believe that we have provided adequate reserves for defense costs. We do not anticipate material adverse judgments and intend to vigorously defend ourselves.

We have recorded our liability for defense costs before consideration for reimbursement from insurance carriers. We have also recorded the amount due as reimbursement under existing policies from the insurance carriers as a receivable shown in other current assets and other assets.

At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made.

Environmental Remediation

We are subject to numerous federal, state, and local laws that regulate the discharge of materials into, or otherwise relate to the protection of, the environment. These laws have required, and are expected to continue to require, us to make significant expenditures of both a capital and expense nature. Several of the more significant federal laws applicable to our operations include the Clean Air Act, the Clean Water Act, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), and the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act.

We have in place programs and personnel to monitor compliance with various federal, state, and local environmental regulations. In the normal course of our manufacturing operations, we are subject to governmental proceedings and orders pertaining to waste disposal, air emissions, and water discharges into the environment. We fund our environmental costs through cash flows from operations. We believe that we are in compliance with applicable environmental regulations in all material respects.

We are required to remediate hazardous waste at our facilities. Currently, we own a designated site in Springfield, Massachusetts that contains to two release areas, which are the focus of remediation projects as part of the Massachusetts Contingency Plan (“MCP”). The MCP provides a structured environment for the voluntary remediation of regulated releases. We may be required to remove hazardous waste or remediate the alleged effects of hazardous substances on the environment associated with past disposal practices at sites not owned by us. We have received notice that we are a potentially responsible party from the Environmental Protection Agency and/or individual states under CERCLA or a state equivalent at two sites.

On March 30, 2012, we entered into a purchase and sale agreement for the land and building we owned located in Rochester, New Hampshire pursuant to which we agreed to indemnify the buyer for losses arising from, among other things, environmental conditions related to our Thompson/Center subsidiaries’ manufacturing activities. During the three months ended January 31, 2013, we completed the sale of the land and building located in Rochester, New Hampshire. The environmental reserve maintained for this property was relieved as a result of the purchase and sale agreement.

As of January 31, 2013 and 2012, we had recorded $577,000 of the environmental reserve in non-current liabilities. We have calculated the net present value of the environmental reserve to be equal to the carrying value of the liability recorded on our books. Our estimate of these costs is based upon currently enacted laws and regulations, currently available facts, experience in remediation efforts, existing technology, and the ability of other potentially responsible parties or contractually liable parties to pay the allocated portions of any environmental obligations.

When the available information is sufficient to estimate the amount of liability, that estimate has been used; when the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. We may not have insurance coverage for our environmental remediation costs. We have not recognized any gains from probable recoveries or other gain contingencies. The environmental reserve was calculated using undiscounted amounts based on independent environmental remediation reports obtained.

Based on information known to us, we do not expect current environmental regulations or environmental proceedings and claims to have a material adverse effect on our consolidated financial position, results of operations, or cash flows. However, it is not possible to predict with certainty the impact on us of future environmental compliance requirements or of the cost of resolution of future environmental proceedings and claims, in part because the scope of the remedies that may be required is not certain, liability under federal environmental laws is joint and several in nature, and environmental laws and regulations are subject to modification and changes in interpretation. There can be no assurance that additional or changing environmental regulation will not become more burdensome in the future and that any such development would not have a material adverse effect on our company.

Suppliers

The inability to obtain sufficient quantities of components, parts, raw materials, and other supplies from independent sources necessary for the production of our products could result in reduced or delayed sales or lost orders. Any delay in or loss of sales could adversely impact our operating results. Many of the components, parts, raw materials, and other supplies used in the production of our products are available only from a limited number of suppliers. In most cases, we do not have long-term supply contracts with these suppliers.

Contracts

Employment Agreements — We have employment, severance, and change of control agreements with certain officers and managers.

Other Agreements — We have distribution agreements with various third parties in the ordinary course of business.

Outstanding Letters of Credit/Restricted Cash — We had open letters of credit aggregating $1.2 million as of January 31, 2013. We had restricted cash totaling $3.3 million as of January 31, 2013, of which $2.5 million acts as a compensating balance against our line of credit dated December 7, 2010 and $812,000 is related to the environmental remediation required to be performed in accordance with our credit facility with the Lenders. This restricted cash cannot be withdrawn from the accounts in which it is deposited without the consent of the Lenders.

The entire disclosure for commitments and contingencies.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
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-Paragraph 8
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Fair Value Measurements

9 Months Ended

Jan. 31, 2013

Fair Value Measurements

(15) Fair Value Measurements:

In accordance with ASC 820-10, Fair Value Measurements and Disclosures Topic, financial assets and liabilities recorded on the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1 - Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (examples include active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities).

Level 2 - Financial assets and liabilities whose values are based on quoted prices in markets in which trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following:

•

quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds which trade infrequently);

•

inputs other than quoted prices that are observable for substantially the full term of the asset or liability (examples include interest rate and currency swaps); and

•

inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives).

We currently do not have any Level 2 financial assets or liabilities.

Level 3 - Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our assumptions about the assumptions a market participant would use in pricing the asset or liability. We currently do not have any Level 3 financial assets or liabilities.

The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of January 31, 2013 and April 30, 2012, respectively, and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands):


	January 31,				April 30,
Description	2013		(Level 1)		2012		(Level 1)
Assets:
Cash equivalents	$	61,920	$	61,920	$	56,698	$	56,698

Total assets	$	61,920	$	61,920	$	56,698	$	56,698

The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
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-Paragraph 2
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 33
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

9 Months Ended

Jan. 31, 2013

(16) Recent Accounting Pronouncements:

Recently Adopted Accounting Standards

In June 2011, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. The amendments in this ASU require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. ASU 2011-05 is effective for interim and annual periods beginning after December 15, 2011. In December 2011, the FASB issued ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. ASU 2011-12 indefinitely defers certain reclassification adjustment provisions of ASU 2011-05. ASU 2011-12 is also effective for interim and annual periods beginning after December 15, 2011. These ASUs did not have a material impact on our consolidated financial statements.

Recently Issued Accounting Standards

The FASB did not issue any ASUs that are applicable or would have had a material impact on our consolidated financial statements during the nine months ended January 31, 2013.

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

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-Name Accounting Standards Codification
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-Paragraph 2
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-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

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-Name Accounting Standards Codification
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-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

Valuation of Long-lived Tangible and Intangible Assets

Significant Accounting Policies (Policies)

9 Months Ended

Jan. 31, 2013

Revenue Recognition

Use of Estimates

Segment Information

•

significant underperformance relative to historical or projected future operating results;

•

significant changes in the manner or use of the assets or the strategy for our overall business;

•

significant negative industry or economic trends;

•

significant decline in our stock price for a sustained period; and

•

a decline in our market capitalization below net book value.

Fair Value Measurements and Disclosures Topic

•

quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds which trade infrequently);

•

inputs other than quoted prices that are observable for substantially the full term of the asset or liability (examples include interest rate and currency swaps); and

•

inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives).

We currently do not have any Level 2 financial assets or liabilities.

Comprehensive Income

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

Summary of Operating Results of Discontinued Operations

Discontinued Operations (Tables)

9 Months Ended

Jan. 31, 2013

The following is a summary of the operating results of the discontinued operations (in thousands):


	For the Three Months Ended January 31,						For the Nine Months Ended January 31,
	2013			2012			2013			2012
Net sales from discontinued operations	$	—		$	8,432		$	6,732		$	21,879
Loss before income taxes	$	(601	)	$	(1,600	)	$	(3,150	)	$	(8,306	)
Income tax expense/(benefit) (a)	$	2,329		$	(645	)	$	(3,921	)	$	(3,326	)
Net income/(loss) from discontinued operations	$	(2,930	)	$	(955	)	$	771		$	(4,980	)

(a)

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

Future Minimum Lease Payments

Capital Lease (Tables)

9 Months Ended

Jan. 31, 2013

The following sets forth the future minimum lease payments as of January 31, 2013 (in thousands):


	Capital Lease Obligation
2013	$	149
2014		596
2015		596
2016		596
2017		1,493

Total future minimum lease payments		3,430
Less amounts representing interest		(461	)

Present value of minimum lease payments		2,969
Less current maturities of capital lease		(436	)

Long-term maturities of capital lease	$	2,533

Inventories (Tables)

9 Months Ended

Jan. 31, 2013

Summary of Inventories

The following sets forth a summary of inventories, stated at the lower of cost or market, as of January 31, 2013 and April 30, 2012 (in thousands):


	January 31, 2013		April 30, 2012
Finished goods	$	21,706	$	14,017
Finished parts		34,800		28,936
Work in process		8,561		7,889
Raw material		4,141		4,454

Total inventories	$	69,208	$	55,296

Accrued Expenses (Tables)

9 Months Ended

Jan. 31, 2013

Summary of Accrued Expenses

Accrued expenses consisted of the following as of January 31, 2013 and April 30, 2012 (in thousands):


	January 31, 2013		April 30, 2012
Accrued rebates and promotions	$	3,463	$	2,862
Accrued employee benefits		2,150		1,902
Accrued professional fees		2,112		3,682
Accrued other		1,379		1,803
Accrued distributor incentives		1,038		5,453
Accrued commissions		1,016		1,235
Accrued workers’ compensation		926		766
Interest payable		533		1,783
Accrued utilities		439		436
Current portion of capital lease obligation		436		418
Accrued severance/restructuring costs		185		345

Total accrued expenses	$	13,677	$	20,685

Warranty Reserve (Tables)

9 Months Ended

Jan. 31, 2013

Change in Accrued Warranty

The following sets forth the change in accrued warranty, a portion of which is recorded as a non-current liability, for the nine months ended January 31, 2013 and 2012 (in thousands):


	January 31, 2013			January 31, 2012
Beginning Balance	$	6,412		$	3,969
Warranties issued and adjustments to provisions		2,852			4,238
Warranty claims		(3,187	)		(2,346	)

Ending Balance	$	6,077		$	5,861

Stockholders' Equity (Tables)

9 Months Ended

Jan. 31, 2013

Reconciliation of Income/(Loss) Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share


	For the Three Months Ended January 31,						For the Nine Months Ended January 31,
	2013			2012			2013		2012
Net income
Income from continuing operations	$	17,506		$	5,393		$	52,776	$	8,618
Income/(loss) from discontinued operations, net of tax		(2,930	)		(955	)		771		(4,980	)

Net income	$	14,576		$	4,438		$	53,547	$	3,638

Weighted average shares outstanding—Basic		65,149			64,874			65,457		64,700
Dilutive effect of stock option and award plans		1,272			508			1,452		454
Dilutive effect of conversion of convertible debt		—			1,200			—		—

Diluted shares outstanding		66,421			66,582			66,909		65,154

Earnings per share—Basic (a)
Income from continuing operations	$	0.27		$	0.08		$	0.81	$	0.13
Income/(loss) from discontinued operations	$	(0.04	)	$	(0.01	)	$	0.01	$	(0.08	)
Net income	$	0.22		$	0.07		$	0.82	$	0.06
Earnings per share—Diluted (a)
Income from continuing operations	$	0.26		$	0.08		$	0.79	$	0.13
Income/(loss) from discontinued operations	$	(0.04	)	$	(0.01	)	$	0.01	$	(0.08	)
Net income	$	0.22		$	0.07		$	0.80	$	0.06

(a)	Net income per share may not equal earnings per share from continuing plus discontinued operations due to rounding.

Share Based Compensation Stock Options Activity


	For the Nine Months Ended January 31,
	2013					2012
				Weighted-					Weighted-
				Average					Average
	Shares			Exercise Price		Shares			Exercise Price
Options outstanding, beginning of year		3,988,164		$	4.67		3,137,565		$	4.73
Granted during year		3,500			11.02		1,134,100			3.17
Exercised during year		(837,842	)		4.10		(126,834	)		1.70
Canceled/forfeited during year		(105,496	)		3.91		(234,499	)		4.91

Options outstanding, end of period		3,048,326		$	4.86		3,910,332		$	4.37

Weighted average remaining contractual life		6.39 years					6.84 years

Options exercisable, end of period		2,003,040		$	5.05		2,229,775		$	5.00

Weighted average remaining contractual life		5.23 years					5.11 years

Share Based Payment Award Employee Stock Purchase Plan Valuation Assumptions

The following assumptions were used in valuing our options and ESPP purchases during the nine-month periods ended January 31, 2013 and 2012:


	For the Nine Months Ended January 31,
	2013		2012
Stock option grants:
Risk-free interest rate		0.31%		0.89 - 2.20%
Expected term		5.84 - 7.84 years		5.30 - 8.18 years
Expected volatility		70.0%		67.0 - 75.0%
Dividend yield		0%		0%
Employee Stock Purchase Plan:
Risk-free interest rate		0.14%		0.06%
Expected term		6 months		6 months
Expected volatility		63.7%		49.9%
Dividend yield		0%		0%

Share Based Payment Award Performance Shares Valuation Assumptions

We incorporate the following variables into the valuation model:


	For the Nine Months Ended January 31,
	2013 (e)		2012
Grant date fair market value
Smith & Wesson Holding Corporation	$	—	$	3.57
NASDAQ Composite Index	$	—	$	2,781.91
Volatility (a)
Smith & Wesson Holding Corporation		—		67.67%
NASDAQ Composite Index		—		29.97%
Correlation coefficient (b)		—		0.46
Risk-free interest rate (c)		—		0.63%
Dividend yield (d)		—		0%

(a)	Volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years.

(b)	The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions.

(c)	The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.

(d)	We do not expect to pay dividends in the foreseeable future.

(e)	There were no PSUs with market conditions granted during the nine months ended January 31, 2013.

Summary of Activity in Unvested RSUs and PSUs

A summary of activity in unvested RSUs and PSUs for the nine months ended January 31, 2013 and 2012 are as follows:


	For the Nine Months Ended January 31,
	2013					2012
	Total # of			Weighted Average		Total # of			Weighted Average
	Restricted			Grant Date		Restricted			Grant Date
	Stock Units			Fair Value		Stock Units			Fair Value
RSUs and PSUs outstanding, beginning of year		384,140		$	7.91		123,600		$	5.27
Awarded		131,996			9.45		95,200			4.76
Vested		(19,863	)		9.66		(8,500	)		2.75
Forfeited		(47,664	)		5.84		(88,700	)		5.30

RSUs and PSUs outstanding, end of period		448,609		$	8.07		121,600		$	6.14

Fair Value Measurements (Tables)

9 Months Ended

Jan. 31, 2013

Fair Value of Assets and Liabilities Measured on Recurring Basis


	January 31,				April 30,
Description	2013		(Level 1)		2012		(Level 1)
Assets:
Cash equivalents	$	61,920	$	61,920	$	56,698	$	56,698

Total assets	$	61,920	$	61,920	$	56,698	$	56,698

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued Operations - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 26, 2012	Jan. 31, 2013	Oct. 31, 2012	Jan. 31, 2013	Jan. 31, 2012	Jul. 10, 2012
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash received from completed disposition				$ 7,500,000	$ 500,000
Smith And Wesson Security Solutions Inc
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase price to be paid for assets and liabilities						$ 7,900,000
Working capital adjustment Amount						$ 400,000
Cash received from completed disposition	$ 5,500,000		$ 2,000,000
Sold net assets		$ 13,000,000		13,000,000
Incurred closing-related costs		1,600,000
Legal, professional, and investment banking fees		655,000
Severance and employee-related costs		918,000
Loss on sale of the disposal group				5,800,000
Additional loss on sale of the disposal group				$ 1,200,000
Loss on divestiture		$ 424,000

Summary of Operating Results of Discontinued Operations (Detail) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Jan. 31, 2013

Jan. 31, 2012

Jan. 31, 2013

Jan. 31, 2012

Net sales from discontinued operations

$ 8,432

$ 6,732

$ 21,879

Loss before income taxes

$ (601)

(1,600)

(3,150)

(8,306)

Income tax expense/(benefit)

^[1]

2,329

(645)

(3,921)

(3,326)

Net income/(loss) from discontinued operations

$ (2,930)

$ (955)

$ 771

$ (4,980)

[1]

Overall income (loss) from a disposal group that is classified as a component of the entity, before income tax, reported as a separate component of income before extraordinary items. Includes the following (before income tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

Tax effect allocated to a disposal group that is classified as a component of the entity reported as a separate component of income before extraordinary items. Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b),(c)
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 20
-Section 45
-Paragraph 2
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Amount of income (loss) from a disposal group, net of income tax before extraordinary items allocable to noncontrolling interests. Includes, net of tax, income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.12)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
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-Subparagraph (SX 210.5-03.14)
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Paragraph 1
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 13
-Article 7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 15
-Article 5

Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Jan. 31, 2013 USD ($) Segment
Schedule Of Significant Accounting Policies [Line Items]
Number of segments \| Segment	2
Impairment charges \| $

Notes Payable - Additional Information (Detail)	9 Months Ended		12 Months Ended
Notes Payable - Additional Information (Detail)	Jan. 31, 2013 USD ($)	Jan. 31, 2012 USD ($)	Apr. 30, 2012 USD ($)	Apr. 30, 2011 USD ($)	Dec. 15, 2006 USD ($)
Debt Instrument [Line Items]
Amount of convertible debt exchanged				$ 50,000,000
Interest Paid on Purchase of Senior Notes	$ 5,252,000	$ 5,745,000
4% senior convertible notes
Debt Instrument [Line Items]
Notes issued					$ 80,000,000
Convertible Notes Exchanged Amount				50,000,000
Convertible Notes repurchased			$ 30,000,000
Maturity Date	Dec. 15, 2026
Interest Rate					4.00%
9.5% Senior notes due 2016
Debt Instrument [Line Items]
Notes issued				50,000,000
Convertible Notes repurchased	$ 6,400,000
Maturity Date	Jan. 14, 2016
Interest Rate	9.50%
Senior Notes Exchanged Amount				$ 50,000,000
Interest Paid on Purchase of Senior Notes	$ 552,000
Consolidated Coverage Ratio	2.00
Credit Facilities
Debt Instrument [Line Items]
Decrease in revolving line of credit	$ 60,000,000
Date until availability is provided	Dec. 07, 2014
Interest Description of revolving Line of Credit	Variable rate equal to LIBOR or prime plus an applicable margin based on our leverage ratio
Borrowings outstanding
Interest rate on borrowings	4.50%

Capital Lease - Additional Information (Detail) $ in Thousands	1 Months Ended	9 Months Ended
	Oct. 28, 2011 USD ($)	Jan. 31, 2013 USD ($) Installment	Apr. 30, 2012 USD ($)
Capital Leased Assets [Line Items]
Proceeds from lease of machinery and equipment	$ 3,500
Effective interest rate	5.76%
Number of monthly installments \| Installment		60
Condition of lease qualifies as capital lease		Net present value of future lease payments exceed 90% of the fair market value of the leased machinery and equipment
Percentage of fair market value for qualifying as capital lease		90.00%
Current portion of capital lease obligation		$ 436	$ 418
Amount of short term capital lease obligations in other non current liabilities		$ 2,500

Amount equal to the present value (the principal) at the beginning of the lease term of minimum lease payments during the lease term (excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, together with any profit thereon) net of payments or other amounts applied to the principal, through the balance sheet date and due to be paid within one year (or one operating cycle, if longer) of the balance sheet date.

Future Minimum Lease Payments (Detail) - USD ($) $ in Thousands	Jan. 31, 2013	Apr. 30, 2012
Capital Leased Assets [Line Items]
2013	$ 149
2014	596
2015	596
2016	596
2017	1,493
Total future minimum lease payments	3,430
Less amounts representing interest	(461)
Present value of minimum lease payments	2,969
Less current maturities of capital lease	(436)	$ (418)
Long-term maturities of capital lease	$ 2,533

Summary of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2013	Apr. 30, 2012
Components Of Inventory [Line Items]
Finished goods	$ 21,706	$ 14,017
Finished parts	34,800	28,936
Work in process	8,561	7,889
Raw materials	4,141	4,454
Total inventories	$ 69,208	$ 55,296

Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jan. 31, 2013	Apr. 30, 2012
Accrued Expenses [Line Items]
Accrued rebates and promotions	$ 3,463	$ 2,862
Accrued employee benefits	2,150	1,902
Accrued professional fees	2,112	3,682
Accrued other	1,379	1,803
Accrued distributor incentives	1,038	5,453
Accrued commissions	1,016	1,235
Accrued workers' compensation	926	766
Interest payable	533	1,783
Accrued utilities	439	436
Current portion of capital lease obligation	436	418
Accrued severance/restructuring costs	185	345
Total accrued expenses	$ 13,677	$ 20,685

Advertising Costs - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Jan. 31, 2013	Jan. 31, 2012
Advertising Costs [Line Items]
Advertising expense for continuing operations	$ 4.7	$ 4.3	$ 11.8	$ 11.6

Warranty Reserve - Additional Information (Detail) - USD ($)	9 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Standard Product Warranty Accrual [Line Items]
Recall costs	$ 666,000
Remaining cost related to recall costs	864,000
Warranty expense	$ 2,900,000	$ 4,200,000

Change in Accrued Warranty (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Standard Product Warranty Accrual [Line Items]
Beginning Balance	$ 6,412	$ 3,969
Warranties issued and adjustments to provisions	2,852	4,238
Warranty claims	(3,187)	(2,346)
Ending Balance	$ 6,077	$ 5,861

Self-Insurance Reserves - Additional Information (Detail) - USD ($)	9 Months Ended
	Jan. 31, 2013	Jan. 31, 2012	Apr. 30, 2012
Self Insurance Reserves [Line Items]
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs	$ 9,400,000		$ 9,000,000
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, Non-current portion	5,500,000		5,400,000
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, included in accrued expenses	2,400,000		2,200,000
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, included in accrued product/municipal liability	1,500,000		1,400,000
Workers' compensation receivable classified as an other asset	332,000		332,000
Amounts charged to expense	9,600,000	$ 9,600,000
Accrued reserves for product and municipal litigation liabilities	4,600,000		4,500,000
Accrued reserves for product and municipal litigation liabilities, Non-current portion	3,000,000		3,100,000
Receivables from insurance carriers, included in other assets	1,900,000		2,000,000
Receivables from insurance carriers, included in other current assets	$ 25,000		$ 25,000

Stockholders' Equity - Additional Information (Detail)	1 Months Ended	3 Months Ended		9 Months Ended
Stockholders' Equity - Additional Information (Detail)	Dec. 31, 2012 USD ($) shares	Jan. 31, 2013 USD ($) shares	Jan. 31, 2012 USD ($) shares	Jan. 31, 2013 USD ($) yr $ / shares shares	Jan. 31, 2012 USD ($) $ / shares shares	Apr. 30, 2012 shares	Apr. 30, 2011 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Repurchasing shares	2,099,603
Repurchasing share value \| $	$ 20,000,000			$ 20,000,000
Stock repurchase authorization \| $	$ 15,000,000
Number of stock option plans				2
Option granted				3,500	1,134,100
Exercise price per share \| $ / shares				$ 11.02	$ 3.17
Options outstanding		3,048,326	3,910,332	3,048,326	3,910,332	3,988,164	3,137,565
Intrinsic value of stock vested \| $		$ 13,000,000	$ 5,900,000	$ 13,000,000	$ 5,900,000
Intrinsic value of stock exercisable \| $		8,800,000	$ 3,200,000	8,800,000	3,200,000
Intrinsic value of stock exercised \| $				5,100,000	218,000
Unamortized fair value of outstanding options \| $		1,300,000		$ 1,300,000
Unamortized fair value options recognized remaining vesting period				1 year
Performance period				3 years
Percentage of maximum aggregate award granted				200.00%
Percentage of stock outperform in order for target award to be earned				10.00%
Amount of cancelled PSU Excluded from compensation Expenses \| $					$ 180,000
Period for cost expected to be recognized over a weighted average remaining contractual term				1 year 3 months 18 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| $				$ 1,300,000
Performance-based restricted stock units granted in period				68,946
Other than options cancelled in period				12,664
Share based compensation delivered				19,863	8,500
Amount of share based compensation delivered \| $				$ 161,000	$ 35,000
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| $					$ 227,000
Other than options cancelled in period				35,000	88,700
Unrecognized compensation cost \| $		$ 1,800,000		$ 1,800,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option granted under ESPP				92,476	234,418
2004 Incentive Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of common stock authorized		15.00%		15.00%
Authorized of common stock		10,000,000		10,000,000
Period to award vested and calculate volatility rate				3 years
Period of award vested exercisable \| yr				10
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| $				$ 3,100,000	$ 1,800,000
Stock-based compensation expense related to the loss on sale of our discontinued operations \| $				$ 45,000
Executive Officer \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based restricted stock units granted in period				63,050	95,200
Former President And Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option granted				500,000
Exercise price per share \| $ / shares				$ 1.47
Options outstanding		250,000		250,000
Expiration date of options outstanding				Dec. 06, 2014
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issuable with antidilutive effect		165,946	1,301,795	209,441	2,021,211
Convertible Debt Securities
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issuable with antidilutive effect					2,105,323

Reconciliation of Income/(Loss) Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Jan. 31, 2013

Jan. 31, 2012

Jan. 31, 2013

Jan. 31, 2012

Net income

Income/(loss) from discontinued operations, net of tax

$ 17,506

$ 5,393

$ 52,776

$ 8,618

(2,930)

(955)

771

(4,980)

Net income

$ 14,576

$ 4,438

$ 53,547

$ 3,638

Weighted average shares outstanding-Basic

65,149

64,874

65,457

64,700

Dilutive effect of stock option and award plans

1,272

508

1,452

454

Dilutive effect of conversion of convertible debt

1,200

Diluted shares outstanding

66,421

66,582

66,909

65,154

Earnings per share-Basic

Income/(loss) from discontinued operations

^[1]

$ 0.27

$ 0.08

$ 0.81

$ 0.13

^[1]

(0.04)

(0.01)

0.01

(0.08)

Net income

^[1]

0.22

0.07

0.82

0.06

Earnings per share-Diluted

Income/(loss) from discontinued operations

^[1]

0.26

0.08

0.79

0.13

^[1]

(0.04)

(0.01)

0.01

(0.08)

Diluted-net income

^[1]

$ 0.22

$ 0.07

$ 0.80

$ 0.06

[1]	Net income per share may not equal earnings per share from continuing plus discontinued operations due to rounding.

Share Based Compensation Stock Options Activity (Detail) - $ / shares	9 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Number of shares and weighted average exercise prices
Options outstanding, beginning of year, Shares	3,988,164	3,137,565
Granted during year, Shares	3,500	1,134,100
Exercised during year, Shares	(837,842)	(126,834)
Canceled/forfeited during year, Shares	(105,496)	(234,499)
Options outstanding, end of year, Shares	3,048,326	3,910,332
Weighted average remaining contractual life	6 years 4 months 21 days	6 years 10 months 2 days
Options exercisable, end of period, Shares	2,003,040	2,229,775
Weighted average remaining contractual life	5 years 2 months 23 days	5 years 1 month 10 days
Weighted-Average Exercise Price
Options outstanding, beginning of year, Weighted-Average Exercise Price	$ 4.67	$ 4.73
Granted during year, Weighted-Average Exercise Price	11.02	3.17
Exercised during year, Weighted-Average Exercise Price	4.10	1.70
Canceled/forfeited during year, Weighted-Average Exercise Price	3.91	4.91
Options outstanding, end of year, Weighted-Average Exercise Price	4.86	4.37
Options exercisable, end of period, Weighted-Average Exercise Price	$ 5.05	$ 5.00

Share Based Payment Award Employee Stock Purchase Plan Valuation Assumptions (Detail)

9 Months Ended

Jan. 31, 2013

Jan. 31, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

^[1]

^[2]

0.63%

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

^[3]

^[2]

0.00%

Stock option grants

0.31%

70.00%

Stock option grants | Minimum

0.00%

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

0.89%

Expected term

5 years 10 months 2 days

5 years 3 months 18 days

Stock option grants | Maximum

67.00%

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

2.20%

Expected term

7 years 10 months 2 days

8 years 2 months 5 days

Employee Stock Purchase Plan

75.00%

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

0.14%

0.06%

Expected term

6 months

63.70%

49.90%

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

0.00%

[1]	The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.
[2]	There were no PSUs with market conditions granted during the nine months ended January 31, 2013.
[3]	We do not expect to pay dividends in the foreseeable future.

Share Based Payment Award Performance Shares Valuation Assumptions (Detail) - $ / shares

9 Months Ended

Jan. 31, 2013

^[2]

Jan. 31, 2012

Correlation coefficient

^[1]

0.46

^[3]

0.63%

Smith & Wesson Holding Corporation | PSUs

^[4]

0.00%

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Grant date fair market value

$ 3.57

Volatility

^[5]

67.67%

Nasdaq Composite Index | PSUs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Grant date fair market value

$ 2,781.91

Volatility

^[5]

29.97%

[1]	The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions.
[2]	There were no PSUs with market conditions granted during the nine months ended January 31, 2013.
[3]	The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.
[4]	We do not expect to pay dividends in the foreseeable future.
[5]	Volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years.

Share Based Payment Award Performance Shares Valuation Assumptions (Parenthetical) (Detail)	9 Months Ended
	Jan. 31, 2013 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Zero-coupon U.S. Treasury bill performance period	3 years
PSUs granted with market conditions	0
Us Treasury Bills
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Zero-coupon U.S. Treasury bill performance period	3 years

Summary of Activity in Unvested RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares	9 Months Ended
	Jan. 31, 2013	Jan. 31, 2012
Summary of activity in unvested restricted stock units and performance share units
Restricted Stock Units, RSUs and PSUs outstanding, beginning of period	384,140	123,600
Restricted Stock Units, Awarded	131,996	95,200
Restricted Stock Units, Vested	(19,863)	(8,500)
Restricted Stock Units, Forfeited	(47,664)	(88,700)
Restricted Stock Units, RSUs and PSUs outstanding, end of period	448,609	121,600
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, beginning of period	$ 7.91	$ 5.27
Weighted Average Grant Date Fair Value, Awarded	9.45	4.76
Weighted Average Grant Date Fair Value, Vested	9.66	2.75
Weighted Average Grant Date Fair Value, Forfeited	5.84	5.30
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period	$ 8.07	$ 6.14

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Jan. 31, 2013	Apr. 30, 2012
Income Tax [Line Items]
Estimated Future Income Tax Benefit	$ 2,800,000
Unrecognized tax benefits	647,000
Accrued interest and penalties related to uncertain tax positions	$ 194,000	$ 260,000
Unrecognized tax benefits expected reversal period	12 months

The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Commitments and Contingencies - Additional Information (Detail)	9 Months Ended
	Jan. 31, 2013 USD ($) Case Claim	Apr. 30, 2012 USD ($)	Jan. 31, 2012 USD ($)
Schedule Of Commitments And Contingencies [Line Items]
Number of derivative lawsuits \| Case	2
Allegations of lawsuit	The lawsuits are based principally on a theory of breach of fiduciary duties.
Number of Product liability cases \| Case	17
Number of Other product liability claims \| Claim	8
Environmental reserve in non-current liabilities	$ 577,000		$ 577,000
Restricted cash	3,342,000	$ 3,334,000
Letter of Credit
Schedule Of Commitments And Contingencies [Line Items]
Restricted cash	2,500,000
Outstanding Letters of Credit	1,200,000
Environmental Remediation
Schedule Of Commitments And Contingencies [Line Items]
Restricted cash	812,000
Minimum
Schedule Of Commitments And Contingencies [Line Items]
Compensatory damages sought	75,000
Maximum
Schedule Of Commitments And Contingencies [Line Items]
Compensatory damages sought	$ 1,400,000

Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - Fair value, recurring basis - USD ($) $ in Thousands	Jan. 31, 2013	Apr. 30, 2012
Assets:
Cash equivalents	$ 61,920	$ 56,698
Total assets	61,920	56,698
(Level 1)
Assets:
Cash equivalents	61,920	56,698
Total assets	$ 61,920	$ 56,698

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Company may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months.