ATK Announces Impairment

Alliant Techsystems said today that it expects to record in the third quarter of fiscal year 2015 an impairment charge of $40 million to $50 million related to its firearms business.

"ATK determined on December 12, 2014 that an impairment of goodwill within the Firearms business may have occurred," the company said in a filing with the Securities and Exchange Commission. "While results of the analysis to finalize the actual amount of the impairment charge are not yet completed, ATK believes there is sufficient evidence to conclude that it is more likely than not that an impairment has occurred."

The company said the anticipated charge is related to the "current market correction impacting demand for firearms" and a decline in the company's projected cash flow in the firearms division.