Significant Accounting Policies (Tables)

12 Months Ended

Apr. 30, 2025

A summary of the estimated useful lives is as follows:


Description	Useful Life
Building and improvements		10 to 40 years
Software and hardware		2 to 7 years
Machinery and equipment		2 to 10 years
Office equipment and furniture		5 years

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

The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per common share (in thousands, except per share data):


	For the Year Ended April 30,
	2025		2024		2023
Net income	$	13,425	$	41,363	$	36,876
Weighted average shares outstanding — Basic		44,484		45,813		45,844
Effect of dilutive stock awards		448		436		326
Weighted average shares outstanding — Diluted		44,932		46,248		46,170
Earnings per share — Basic	$	0.30	$	0.90	$	0.80
Earnings per share — Diluted	$	0.30	$	0.89	$	0.80

Change in Accrued Warranties Recorded as Non-Current Liability

The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2025, 2024, and 2023 (in thousands):


Balance as of April 30, 2023	$	4,005
Warranties issued and adjustments to provisions		2,560
Warranty claims		(2,681	)
Balance as of April 30, 2024		3,884
Warranties issued and adjustments to provisions		2,390
Warranty claims		(2,998	)
Balance as of April 30, 2025	$	3,276

SMITH & WESSON BRANDS, INC. 10-K