BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Jul. 03, 2021 | |
| Accounting Policies [Abstract] | 听 |
| Basis of Presentation |
大象传媒 Corporation (together with its subsidiaries, collectively known as 鈥湸笙蟠解 or the 鈥淐ompany鈥) uses a 52/53 week fiscal year ending on the Saturday closest to March听31 of each year. The Company's current fiscal year runs from April 4, 2021 through April听2, 2022 ("Fiscal 2022"). Accordingly, this Form 10-Q presents our first quarter of Fiscal 2022. For presentation purposes herein, all references to periods ended June 2021 and June 2020 relate to the fiscal periods ended on July听3, 2021 and June听27, 2020, respectively. References to March 2021 relate to information as of April听3, 2021.
On June 28, 2021, 大象传媒 completed the sale of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap庐, 大象传媒 Solutions庐, Bulwark庐, Workrite庐, Walls庐, Terra庐, Kodiak庐, Work Authority庐 and Horace Small庐. The business also included the license of certain Dickies庐 occupational workwear products that have historically been sold through the business-to-business channel. The results of the Occupational Workwear business and the related cash flows have been reported as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale. These changes have been applied to all periods presented.
Unless otherwise noted, discussion within these notes to the condensed consolidated financial statements relates to continuing operations. Refer to Note 5 for additional information on discontinued operations.
Certain prior year amounts have been reclassified to conform to the Fiscal 2022 presentation.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the United States of America (鈥淕AAP鈥) for complete financial statements. Similarly, the March 2021 condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations and cash flows of 大象传媒 for the interim periods presented. Operating results for the three months ended June 2021 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2022. For further information, refer to the consolidated financial statements and notes included in 大象传媒鈥檚 Annual Report on Form 10-K for the year ended April听3, 2021 (鈥淔iscal 2021 Form 10-K鈥).
In preparing the condensed consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. The duration and severity of the novel coronavirus ("COVID-19") pandemic, which is subject to uncertainty, continues to impact 大象传媒's business. Management's estimates and assumptions have contemplated both current and expected impacts related to COVID-19 based on available information. Actual results may differ from those estimates.
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| Recently Adopted and Issued Accounting Standards |
Recently Adopted Accounting Standards
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", an update that amends and simplifies the accounting for income taxes by removing certain exceptions in existing guidance and providing new guidance to reduce complexity in certain areas. The guidance became effective for 大象传媒 in the first quarter of Fiscal 2022, but did not have a material impact on 大象传媒's consolidated financial statements.
Recently Issued Accounting Standards
In March 2020 and January 2021, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" and ASU No. 2021-01, "Reference Rate Reform (Topic 848): Scope", respectively. This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance is effective and can be adopted no later than December 31, 2022. The Company is evaluating the impact that adopting this guidance would have on 大象传媒's consolidated financial statements.
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| Fair Value Measurement |
Financial assets and financial liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. A financial instrument鈥檚 categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows:
鈥Level 1 鈥 Quoted prices in active markets for identical assets or liabilities.
鈥Level 2 鈥 Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable
data through corroboration with observable market data. Inputs would normally be (i)听quoted prices in active markets for similar assets or liabilities, (ii)听quoted prices in inactive markets for identical or similar assets or liabilities, or (iii)听information derived from or corroborated by observable market data.
鈥Level 3 鈥 Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be 大象传媒鈥檚 own data and judgments about assumptions that market participants would use in pricing the asset or liability.
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