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Recent Accounting Pronouncements (Policies)
12 Months Ended
Jun. 30, 2022
Accounting Pronouncement Recently Adopted  
Accounting Pronouncements

Accounting Pronouncement Recently Adopted

 

In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). Under ASU No. 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. The Company adopted this standard effective July 1, 2021, using a modified retrospective method, under which financial results reported in prior periods were not adjusted. The Company applied the provisions of this guidance to our 3.75% convertible senior notes due June 2026 (“2026 Notes”). Upon adoption, the Company recorded an increase to Accumulated deficit of $0.8 million, a decrease to Additional paid-in capital of $25.6 million and an increase to Debt of $24.8 million. There was no impact to diluted loss per share as the inclusion of potential shares of common stock related to the 2026 Notes would have been anti-dilutive. For further information, see Note 10, Debt.

 

Accounting Pronouncements Not Yet Effective  
Accounting Pronouncements

Accounting Pronouncements Not Yet Effective

 

In March 2020, the FASB issued an update (ASU 2020-04) establishing Accounting Standards Codification (“ASC”) Topic 848, Reference Rate Reform. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company’s New Term Loan Facility and

New Revolving Credit Facility applies Eurodollar rate LIBOR to the variable component of the interest rate, if a Benchmark transition event, or an early opt-in election, as applicable occurred a transition to the use of the Secured Overnight Financing Rate ("SOFR") to replace such rate. This accounting standard update was effective upon issuance and may be applied prospectively through December 31, 2022. The Company is currently evaluating the impact of the guidance and our options related to the practical expedients.

 

In April 2021, the FASB issued ASU 2021-04, which included Topic 260 “Earnings Per Share”. This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements.

 

In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendment addresses how to account for contract assets recognized under Topic 606 in a business combination. This standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact ASU 2021-08 will have on its financial statements.