BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Jul. 02, 2022 | |
| Accounting Policies [Abstract] | 听 |
| BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fiscal Year
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 3, 2022 through April听1, 2023 ("Fiscal 2023"). Accordingly, this Form 10-Q presents our first quarter of Fiscal 2023. For presentation purposes herein, all references to periods ended June 2022 and June 2021 relate to the fiscal periods ended on July听2, 2022 and July听3, 2021, respectively. References to March 2022 relate to information as of April听2, 2022.
Basis of Presentation
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. These changes have been applied to all periods presented.
Unless otherwise noted, discussion within these notes to the interim consolidated financial statements relates to continuing operations. Refer to Note 4 for additional information on discontinued operations.
Certain prior year amounts have been reclassified to conform to the Fiscal 2023 presentation.
The accompanying unaudited interim 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 2022 consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. In the opinion of management, the accompanying unaudited interim 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 2022 are not necessarily indicative of results that may be expected for any other interim period or for Fiscal 2023. 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2, 2022 (鈥淔iscal 2022 Form 10-K鈥).
Use of Estimates
In preparing the interim consolidated financial statements, management makes estimates and assumptions that affect amounts reported in the interim consolidated financial statements and accompanying notes. The duration and severity of the coronavirus ("COVID-19") pandemic and the conflict between Russia and Ukraine, and the impact on 大象传媒's business is subject to uncertainty; however, the estimates and assumptions made by management include those related to COVID-19 and the Russia-Ukraine conflict based on available information. Actual results may differ from those estimates.
Significant Accounting Policies
Supply Chain Financing Program
During the three months ended June 2022, 大象传媒 reinstated its voluntary supply chain finance ("SCF") program. The SCF program enables a significant portion of our suppliers of inventory to leverage 大象传媒's credit rating to receive payment from participating financial institutions prior to the payment date specified in the terms between 大象传媒 and the supplier. The SCF program is administered through third-party platforms that allow participating suppliers to track payments from 大象传媒 and elect which 大象传媒 receivables, if any, to sell to the financial institutions. The transactions are at the sole discretion of both the suppliers and financial institutions, and 大象传媒 is not a party to the agreements and has no economic interest in the supplier's decision to sell a receivable. The terms between 大象传媒 and the supplier, including the amount due and scheduled payment dates, are not impacted by a supplier's participation in the SCF program. Amounts due to suppliers who voluntarily participate in the SCF program are included in the accounts payable line item in 大象传媒's Consolidated Balance Sheets and 大象传媒 payments made under the SCF program are reflected in cash flows from operating activities in 大象传媒's Consolidated Statements of Cash Flows. 大象传媒 has been informed by the participating financial institutions that amounts payable to them for suppliers who voluntarily participated in the SCF program and included in the accounts payable line item in 大象传媒's Consolidated Balance Sheet was $164.1听million at June 2022. The amount settled through the SCF program was $15.0听million during the three months ended June 2022.
There have been no other changes to the Company's significant accounting policies described in Note 1 to the consolidated financial statements included in the Fiscal 2022 Form 10-K.
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