Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 15, 2018 | Dec. 31, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | REGIS CORP | ||
Entity Central Index Key | 716,643 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 550,996,588 | ||
Entity Common Stock, Shares Outstanding | 44,265,743 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 110,399 | $ 171,044 |
Receivables, net | 52,430 | 19,683 |
Inventories | 79,363 | 98,392 |
Other current assets | 47,867 | 48,114 |
Current assets held for sale (Note 2) | 0 | 32,914 |
Total current assets | 290,059 | 370,147 |
Property and equipment, net | 105,860 | 123,281 |
Goodwill | 412,643 | 416,987 |
Other intangibles, net | 10,557 | 11,965 |
Other assets | 37,616 | 61,756 |
Long-term assets held for sale (Note 2) | 0 | 27,352 |
Total assets | 856,735 | 1,011,488 |
Current liabilities: | ||
Accounts payable | 57,738 | 54,501 |
Accrued expenses | 97,630 | 110,435 |
Current liabilities related to assets held for sale (Note 2) | 0 | 13,126 |
Total current liabilities | 155,368 | 178,062 |
Long-term debt, net | 90,000 | 120,599 |
Other noncurrent liabilities | 107,875 | 197,374 |
Noncurrent liabilities related to assets held for sale (Note 2) | 0 | 7,232 |
Total liabilities | 353,243 | 503,267 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity: | ||
Common stock, $0.05 par value; issued and outstanding, 45,258,571 and 46,400,367 common shares at June 30, 2018 and 2017, respectively | 2,263 | 2,320 |
Additional paid-in capital | 194,436 | 214,109 |
Accumulated other comprehensive income | 9,568 | 3,336 |
Retained earnings | 297,225 | 288,456 |
Total shareholders' equity | 503,492 | 508,221 |
Total liabilities and shareholders' equity | $ 856,735 | $ 1,011,488 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock issued (in shares) | 45,258,571 | 46,400,367 |
Common stock outstanding (in shares) | 45,258,571 | 46,400,367 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Revenues: | ||||
Revenues | $ 1,214,074 | $ 1,268,460 | $ 1,291,933 | |
Operating expenses: | ||||
Cost of service | 530,582 | 610,384 | 608,965 | |
Cost of product | 140,623 | 126,297 | 130,015 | |
Site operating expenses | 127,249 | 127,797 | 135,139 | |
General and administrative | 174,045 | 157,335 | 157,012 | |
Rent | 183,096 | 180,478 | 184,150 | |
Depreciation and amortization | 58,205 | 52,088 | 52,888 | |
Total operating expenses | 1,213,800 | 1,254,379 | 1,268,169 | |
Operating income | 274 | 14,081 | 23,764 | |
Other (expense) income: | ||||
Interest expense | (10,492) | (8,584) | (9,229) | |
Interest income and other, net | 6,670 | 2,831 | 3,713 | |
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies | (3,548) | 8,328 | 18,248 | |
Income tax benefit (expense) | 65,434 | (9,224) | (9,049) | |
Equity in loss of affiliated companies, net of income taxes | 0 | 0 | (14,786) | |
Income (loss) from continuing operations | 61,886 | (896) | (5,587) | |
Loss from discontinued operations, net of income taxes (Note 2) | (53,185) | (15,244) | (5,729) | |
Net income (loss) | $ 8,701 | $ (16,140) | $ (11,316) | |
Basic: | ||||
Income (loss) from continuing operations (in dollars per share) | $ 1.33 | $ (0.02) | $ (0.12) | |
Loss from discontinued operations (in dollars per share) | (1.14) | (0.33) | (0.12) | |
Net income (loss) per share, basic (in dollars per share) | [1] | 0.19 | (0.35) | (0.23) |
Diluted: | ||||
Income (loss) from continuing operations (in dollars per share) | 1.32 | (0.02) | (0.12) | |
Loss from discontinued operations (in dollars per share) | (1.13) | (0.33) | (0.12) | |
Net income (loss) per share, diluted (in dollars per share) | [1] | $ 0.18 | $ (0.35) | $ (0.23) |
Weighted average common and common equivalent shares outstanding: | ||||
Basic (in shares) | 46,517 | 46,359 | 48,542 | |
Diluted (in shares) | 47,035 | 46,359 | 48,542 | |
Service | ||||
Revenues: | ||||
Revenues | $ 899,051 | $ 960,347 | $ 978,614 | |
Product | ||||
Revenues: | ||||
Revenues | 258,666 | 259,822 | 265,796 | |
Royalties and fees | ||||
Revenues: | ||||
Revenues | $ 56,357 | $ 48,291 | $ 47,523 | |
[1] | Total is a recalculation; line items calculated individually may not sum to total due to rounding. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 8,701 | $ (16,140) | $ (11,316) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (256) | (1,889) | (4,276) |
Reclassification adjustments for losses included in net income (loss) (Note 2) | 6,152 | 0 | 0 |
Net current period foreign currency translation adjustments | 5,896 | (1,889) | (4,276) |
Recognition of deferred compensation | 336 | 157 | (162) |
Other comprehensive income (loss) | 6,232 | (1,732) | (4,438) |
Comprehensive income (loss) | $ 14,933 | $ (17,872) | $ (15,754) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings |
Balance (in shares) at Jun. 30, 2015 | 53,664,366 | ||||
Balance at Jun. 30, 2015 | $ 627,444 | $ 2,683 | $ 298,396 | $ 9,506 | $ 316,859 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (11,316) | (11,316) | |||
Foreign currency translation adjustments | (4,276) | (4,276) | |||
Stock repurchase program (in shares) | (7,647,819) | ||||
Stock repurchase program | (101,035) | $ (382) | (100,653) | ||
Exercise of SARs & stock options (in shares) | 107 | ||||
Exercise of SARs & stock options | 0 | ||||
Stock-based compensation | 9,797 | 9,797 | |||
Shares issued through franchise stock incentive program (in shares) | 22,084 | ||||
Shares issued through franchise stock incentive program | 331 | $ 1 | 330 | ||
Recognition of deferred compensation (Note 10) | (162) | (162) | |||
Net restricted stock activity (in shares) | 115,672 | ||||
Net restricted stock activity | (728) | $ 6 | (734) | ||
Minority interest (Note 1) | (654) | 339 | (993) | ||
Balance (in shares) at Jun. 30, 2016 | 46,154,410 | ||||
Balance at Jun. 30, 2016 | 519,401 | $ 2,308 | 207,475 | 5,068 | 304,550 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (16,140) | (16,140) | |||
Foreign currency translation adjustments | (1,889) | (1,889) | |||
Exercise of SARs & stock options (in shares) | 4,370 | ||||
Exercise of SARs & stock options | (42) | (42) | |||
Stock-based compensation | 9,991 | 9,991 | |||
Shares issued through franchise stock incentive program (in shares) | 27,819 | ||||
Shares issued through franchise stock incentive program | 353 | $ 1 | 352 | ||
Recognition of deferred compensation (Note 10) | 157 | 157 | |||
Net restricted stock activity (in shares) | 213,768 | ||||
Net restricted stock activity | (3,656) | $ 11 | (3,667) | ||
Minority interest (Note 1) | $ 46 | 46 | |||
Balance (in shares) at Jun. 30, 2017 | 46,400,367 | 46,400,367 | |||
Balance at Jun. 30, 2017 | $ 508,221 | $ 2,320 | 214,109 | 3,336 | 288,456 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 8,701 | 8,701 | |||
Foreign currency translation adjustments | 5,896 | 5,896 | |||
Stock repurchase program (in shares) | (1,469,057) | ||||
Stock repurchase program | (24,798) | $ (74) | (24,724) | ||
Exercise of SARs & stock options (in shares) | 33,342 | ||||
Exercise of SARs & stock options | (330) | $ 2 | (332) | ||
Stock-based compensation | 7,475 | 7,475 | |||
Shares issued through franchise stock incentive program (in shares) | 522 | ||||
Shares issued through franchise stock incentive program | 7 | 7 | |||
Recognition of deferred compensation (Note 10) | 336 | 336 | |||
Net restricted stock activity (in shares) | 293,397 | ||||
Net restricted stock activity | (2,084) | $ 15 | (2,099) | ||
Minority interest (Note 1) | $ 68 | 68 | |||
Balance (in shares) at Jun. 30, 2018 | 45,258,571 | 45,258,571 | |||
Balance at Jun. 30, 2018 | $ 503,492 | $ 2,263 | $ 194,436 | $ 9,568 | $ 297,225 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | ||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ 8,701 | $ (16,140) | $ (11,316) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Non-cash impairment related to discontinued operations | 38,826 | 0 | 0 | |||
Depreciation and amortization | 39,433 | 40,722 | 42,411 | |||
Depreciation related to discontinued operations | 3,738 | 14,239 | 14,581 | |||
Equity in loss of affiliated companies | 0 | 81 | 14,783 | |||
Deferred income taxes | (75,863) | 7,962 | 7,023 | |||
Gain on life insurance proceeds | (7,986) | 0 | 0 | |||
Gain from sale of salon assets to franchisees, net | (241) | [1] | (492) | [1] | (1,000) | [1] |
Loss on write down of inventories | 0 | 5,905 | 0 | |||
Salon asset impairments | 11,092 | 11,366 | 10,478 | |||
Accumulated other comprehensive income reclassification adjustments (Note 2) | 6,152 | 0 | 0 | |||
Stock-based compensation | 8,269 | 13,142 | 9,797 | |||
Amortization of debt discount and financing costs | 4,080 | 1,403 | 1,514 | |||
Other non-cash items affecting earnings | (294) | 935 | 310 | |||
Changes in operating assets and liabilities: | ||||||
Receivables | (12,081) | [2] | 724 | [2] | (577) | [2] |
Inventories | 13,940 | [2] | 4,010 | [2] | (7,109) | [2] |
Income tax receivable | 527 | [2] | (535) | [2] | 501 | [2] |
Other current assets | (23) | [2] | 820 | [2] | (460) | [2] |
Other assets | (11,229) | [2] | (2,586) | [2] | (1,133) | [2] |
Accounts payable | (1,103) | [2] | (684) | [2] | (4,624) | [2] |
Accrued expenses | (12,526) | [2] | (13,667) | [2] | (14,280) | [2] |
Other noncurrent liabilities | (11,084) | [2] | (7,150) | [2] | (5,113) | [2] |
Net cash provided by operating activities | 2,328 | 60,055 | 55,786 | |||
Cash flows from investing activities: | ||||||
Capital expenditures | (29,571) | (26,572) | (23,151) | |||
Capital expenditures related to discontinued operations | (1,171) | (7,271) | (7,966) | |||
Proceeds from sale of salon assets to franchisees | 11,582 | [1] | 2,253 | [1] | 1,740 | [1] |
Change in restricted cash | (524) | 1,123 | 9,042 | |||
Proceeds from company-owned life insurance policies | 18,108 | 876 | 2,948 | |||
Proceeds from sale of investment | 0 | 500 | 0 | |||
Net cash used in investing activities | (1,576) | (29,091) | (17,387) | |||
Cash flows from financing activities: | ||||||
Borrowings on revolving credit facilities | 90,000 | 0 | 0 | |||
Repayments of long-term debt and capital lease obligations | (124,230) | 0 | (2) | |||
Repurchase of common stock | (24,798) | 0 | (101,035) | |||
Purchase of noncontrolling interest | 0 | 0 | (760) | |||
Employee taxes paid for shares withheld | (2,413) | (3,698) | (754) | |||
Settlement of equity awards | (794) | (3,151) | 0 | |||
Net cash used in financing activities | (62,235) | (6,849) | (102,551) | |||
Effect of exchange rate changes on cash and cash equivalents | (514) | 935 | (781) | |||
(Decrease) increase in cash and cash equivalents | (61,997) | 25,050 | (64,933) | |||
Cash and cash equivalents: | ||||||
Beginning of year | 110,399 | 171,044 | 147,346 | |||
Cash and cash equivalents included in current assets held for sale | 1,352 | 0 | ||||
Beginning of year, total cash and cash equivalents | 172,396 | 147,346 | 212,279 | |||
End of year | $ 110,399 | $ 172,396 | $ 147,346 | |||
[1] | Excludes transaction with The Beautiful Group. | |||||
[2] | Changes in operating assets and liabilities exclude assets and liabilities sold or acquired. |
BUSINESS DESCRIPTION AND SUMMAR
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Business Description: Regis Corporation (the "Company") owns, operates and franchises hairstyling and hair care salons throughout the United States (U.S.), the United Kingdom (U.K.), Canada and Puerto Rico. Substantially all of the hairstyling and hair care salons owned and operated by the Company in the U.S., Canada and Puerto Rico are located in leased space in enclosed mall shopping centers, strip shopping centers or Walmart Supercenters. Franchised salons throughout the U.S. are primarily located in strip shopping centers, Walmart Supercenters and mall-based locations. All salons in the U.K. are Franchised locations and operate in malls, leading department stores, mass merchants and high-street locations. During the first quarter of fiscal year 2018 , the Company redefined its operating segments to reflect how the chief operating decision maker evaluates the business as a result selling substantially all of its mall-based salon business in North America, representing 858 salons, and substantially all of its previous International segment, representing 250 salons in the UK, to The Beautiful Group ("TBG"), an affiliate of Regent, a private equity firm based in Los Angeles, California, who operates these locations as franchise locations. See additional discussion on these discontinued operations in Note 2 to the Consolidated Financial Statements. Based on the way the chief operating decision maker evaluates the business, the Company has two reportable segments: Company-owned salons and Franchise salons. Prior to this change, the Company had four operating segments: North American Value, North American Premium, North American Franchise and International. See Note 14 to the Consolidated Financial Statements. Smartstyle Restructuring: In January 2018, the Company closed 597 non-performing Company owned SmartStyle salons. The action delivers on the Company's commitment to restructure its salon portfolio to improve shareholder value and position the Company for long-term growth. The Company anticipates this action will allow the Company to reallocate capital and human resources to strategically grow its remaining SmartStyle salons with creative new offerings. A summary of costs associated with the SmartStyle salon restructuring for fiscal year 2018 is as follows: Financial Line Item Fiscal Year 2018 (Dollars in thousands) Inventory reserves Cost of Service $ 656 Inventory reserves Cost of Product 586 Severance General and administrative 897 Long-lived fixed asset impairment Depreciation and amortization 5,460 Asset retirement obligation Depreciation and amortization 7,680 Lease termination and other related closure costs Rent 27,290 Deferred rent Rent (3,291 ) Total $ 39,278 In addition, the Company recorded approximately $1.9 million of other related costs to the SmartStyle restructuring, primarily warehouse related costs. Substantially all related costs associated with the SmartStyle salon restructuring requiring cash outflow were complete as of June 30, 2018 . Consolidation: The Consolidated Financial Statements include the accounts of the Company and its subsidiaries after the elimination of intercompany accounts and transactions. All material subsidiaries are wholly owned. The Company consolidates variable interest entities where it has determined it is the primary beneficiary of those entities' operations. Variable Interest Entities : The Company has interests in certain privately held entities through arrangements that do not involve voting interests. Such entities, known as a variable interest entity (VIE), are required to be consolidated by its primary beneficiary. The Company evaluates whether or not it is the primary beneficiary for each VIE using a qualitative assessment that considers the VIE's purpose and design, the involvement of each of the interest holders and the risk and benefits of the VIE. As of June 30, 2018 , the Company has one VIE, Roosters MGC International LLC (Roosters), where the Company is the primary beneficiary. The Company owns an 84.0% ownership interest in Roosters. As of June 30, 2018 , total assets, total liabilities and total shareholders' equity of Roosters were $8.3 , $0.6 and $7.7 million , respectively. Net income attributable to the non-controlling interest in Roosters was immaterial for fiscal years 2018 , 2017 and 2016 . Shareholders' equity attributable to the non-controlling interest in Roosters was $1.0 and $0.9 million as of June 30, 2018 and 2017 , respectively and recorded within retained earnings on the Consolidated Balance Sheet. The Company accounts for its investment in Empire Eduction Group, Inc. ("EEG") as an equity investment under the voting interest model, as the Company has granted the other shareholder of EEG an irrevocable proxy to vote a certain number of the Company’s shares such that the other shareholder of EEG has voting control of 51.0% of EEG’s common stock, as well as the right to appoint four of the five members of EEG’s Board of Directors. See Note 5 to the Consolidated Financial Statements. The Company utilized the consolidation of variable interest entities guidance to determine whether or not TBG was a variable interest entity (VIE), and if so, whether the Company was the primary beneficiary of TBG. As of June 30, 2018 , the Company concluded that TBG is a VIE based on the fact that the equity investment at risk in TBG is not sufficient. The Company determined that it is not the primary beneficiary of TBG based on its exposure to the expected losses of TBG and as it is not the variable interest holder that is most closely associated within the relationship and the significance of the activities of TBG. The exposure to loss related to the Company's involvement with TBG is the carrying value of the amounts due from TBG and the guarantee of the operating leases. Use of Estimates: The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as a part of the Company's cash management activity. The carrying values of these assets approximate their fair market values. The Company primarily utilizes a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts that funds are moved to, and several "zero balance" disbursement accounts for funding of payroll and accounts payable. As a result of the Company's cash management system, checks issued, but not presented to the banks for payment, may create negative book cash balances. There were no checks outstanding in excess of related book cash balances at June 30, 2018 and 2017 . The Company has restricted cash primarily related to contractual obligations to collateralize its self-insurance programs. The restricted cash arrangement can be canceled by the Company at any time if substituted with letters of credit. The restricted cash balance is classified within other current assets on the Consolidated Balance Sheet. Receivables and Allowance for Doubtful Accounts: The receivable balance on the Company's Consolidated Balance Sheet primarily includes credit card receivables and accounts and notes receivable from franchisees. At June 30, 2018 , the receivable balance also included $24.6 million related to the cash surrender value of company-owned life insurance policies surrendered prior to June 30, 2018 . The Company received these proceeds in July 2018. The balance is presented net of an allowance for expected losses (i.e., doubtful accounts), primarily related to receivables from the Company's franchisees. The Company monitors the financial condition of its franchisees and records provisions for estimated losses on receivables when it believes franchisees are unable to make their required payments based on factors such as delinquencies and aging trends. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses related to existing accounts and notes receivables. As of June 30, 2018 , 2017 and 2016, the allowance for doubtful accounts was $1.2 , $0.8 and $1.3 million , respectively. Activity in the allowance for doubtful accounts during fiscal years 2018, 2017 and 2016 was no t significant. Inventories: Inventories of finished goods consist principally of hair care products for retail product sales. A portion of inventories are also used for salon services consisting of hair color, hair care products including shampoo and conditioner and hair care treatments including permanents, neutralizers and relaxers. Inventories are stated at the lower of cost or market, with cost determined on a weighted average cost basis. Physical inventory counts are performed annually in the fourth quarter of the fiscal year for salons. Product and service inventories are adjusted based on the physical inventory counts. During the fiscal year, cost of retail product sold to salon guests is determined based on the weighted average cost of product sold, adjusted for an estimated shrinkage factor. The cost of product used in salon services is determined by applying an estimated percentage of total cost of service to service revenues. These estimates are updated quarterly based on cycle count results for the distribution centers and salons, service sales mix, discounting, special promotions and other factors. The Company has inventory valuation reserves for excess and obsolete inventories, or other factors that may render inventories unmarketable at their historical costs. Estimates of the future demand for the Company's inventory and anticipated changes in formulas and packaging are some of the other factors used by management in assessing the net realizable value of inventories. Property and Equipment: Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over their estimated useful asset lives ( 30 to 39 years for buildings, 10 years for improvements and three to ten years for equipment, furniture and software). Depreciation expense was $38.1 , $42.7 and $44.4 million in fiscal years 2018 , 2017 and 2016 , respectively. The Company capitalizes both internal and external costs of developing or obtaining computer software for internal use. Costs incurred to develop internal-use software during the application development stage are capitalized, while data conversion, training and maintenance costs associated with internal-use software are expensed as incurred. Estimated useful lives range from five to seven years . Expenditures for maintenance and repairs and minor renewals and betterments, which do not improve or extend the life of the respective assets, are expensed. All other expenditures for renewals and betterments are capitalized. The assets and related depreciation and amortization accounts are adjusted for property retirements and disposals with the resulting gain or loss included in operating income. Fully depreciated or amortized assets remain in the accounts until retired from service. Long-Lived Asset Impairment Assessments, Excluding Goodwill: The Company assesses impairment of long-lived assets at the individual salon level, as this is the lowest level for which identifiable cash flows are largely independent of other groups of assets and liabilities, when events or changes in circumstances indicate the carrying value of the assets or the asset grouping may not be recoverable. Factors considered in deciding when to perform an impairment review include significant under-performance of an individual salon in relation to expectations, significant economic or geographic trends, and significant changes or planned changes in our use of the assets. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use of the long-lived assets. If the undiscounted estimated cash flows are less than the carrying value of the assets, the Company calculates an impairment charge based on the estimated fair value of the assets. The fair value of the long-lived assets is estimated using a discounted cash flow model based on the best information available, including salon level revenues and expenses. Long-lived asset impairment charges are recorded within depreciation and amortization in the Consolidated Statement of Operations. Judgments made by management related to the expected useful lives of long-lived assets and the ability to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as the ongoing maintenance and improvement of the assets, changes in economic conditions and changes in operating performance. As the ongoing expected cash flows and carrying amounts of long-lived assets are assessed, these factors could cause the Company to realize material impairment charges. Long-lived asset impairment charges of $11.1 , $7.9 and $7.1 million were recorded during fiscal years 2018, 2017 and 2016, respectively, related to continuing operations. Goodwill: As of June 30, 2018 and 2017 , the Company-owned reporting unit had $184.8 and $188.9 million of goodwill, respectively, and the Franchise salons reporting unit had $227.9 and $228.1 million of goodwill, respectively. See Note 4 to the Consolidated Financial Statements. The Company assesses goodwill impairment on an annual basis, during the Company’s fourth fiscal quarter, and between annual assessments if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill impairment assessments are performed at the reporting unit level, which is the same as the Company’s operating segments. As part of the new simplification guidance issued by the Financial Accounting Standards Board (FASB), the goodwill assessment involves a one-step comparison of the reporting unit’s fair value to its carrying value, including goodwill ("Step 1"). The prior guidance required a hypothetical purchase price allocation as the second step of the goodwill impairment assessment, but this step has been eliminated. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit’s fair value is less than the carrying value, an impairment charge is recorded for the difference between the fair value and carrying value of the reporting unit. The Company early adopted this guidance when completing the annual fiscal year 2017 impairment assessment and therefore only completed Step 1 of the goodwill impairment assessment. In applying the goodwill impairment assessment, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value (“Step 0”). Qualitative factors may include, but are not limited to, economic, market and industry conditions, cost factors, and overall financial performance of the reporting unit. If after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the carrying value is less than the fair value, then performing Step 1 of the goodwill impairment assessment is unnecessary. The carrying value of each reporting unit is based on the assets and liabilities associated with the operations of the reporting unit, including allocation of shared or corporate balances among reporting units. Allocations are generally based on the number of salons in each reporting unit as a percent of total company-owned salons or expenses of the reporting unit as a percent of total company expenses. The Company calculates estimated fair values of the reporting units based on discounted future cash flows utilizing estimates in annual revenue, service and product margins, fixed expense rates, allocated corporate overhead, corporate-owned and franchise salon counts and long-term growth rates for determining terminal value. Where available and as appropriate, comparative market multiples are used in conjunction with the results of the discounted cash flows. The Company periodically engages third-party valuation consultants to assist in evaluating the Company's estimated fair value calculations. Following is a description of the goodwill impairment assessments for each of the fiscal years: Fiscal Year 2018 During the first quarter of fiscal year 2018, the Company experienced a triggering event due to the redefining of its operating segments as the Company's mall-based business and International segment met the criteria to be classified as held for sale and as a discontinued operation as of September 30, 2017. The Company's reporting now consist of two reporting units: Company-owned and Franchise. Prior to this change the Company had four reporting units: North American Value, North American Premium, North American Franchise and International. Pursuant to the change in operating segments, the Company performed a goodwill impairment assessment on its North American Value reporting unit. The Company assessed qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit was less than their carrying values (“Step 0”). The Company determined it is “more-likely-than-not” that the carrying value of the reporting unit was less than the fair value. Accordingly, the Company did not perform a quantitative analysis. Based on the changes to the operating segment structure, there was no goodwill reallocated from the North American Value reporting unit related to the mall-based business that was subsequently sold as the mall-based business previously included in the North American Value reporting unit was projected to incur future losses. The Company did not perform a goodwill impairment assessment for the North American Franchise reporting unit during the first quarter of fiscal year 2018 as this reporting unit was not impacted by the triggering event. The North American Premium and International units did no t have any goodwill. The Company performs its annual impairment assessment as of April 30. For the fiscal year 2018 annual impairment assessment, due to the transformational efforts completed during the year, the Company elected to forgo the optional Step 0 assessment and performed the quantitative impairment analysis on the Company-owned and Franchise reporting units. The Company compared the carrying value of the reporting units, including goodwill, to their estimated fair value. The results of these assessments indicated that the estimated fair value of our reporting units exceeded their carrying value. The Franchise reporting unit had substantial headroom and the Company-owned reporting unit had headroom of approximately 24% . The fair value of the Company-owned reporting unit was determined based on a discounted cash flow analysis and comparable market multiples. The assumptions used in determining fair value were the number and pace of salons sold to franchisees, proceeds for salon sales, weighted average cost of capital, general and administrative expenses and utilization of net operating loss benefits. We selected the assumptions by considering our historical financial performance and trends, historical salon sale proceeds and estimated salon sale activities. The preparation of our fair value estimate includes uncertain factors and requires significant judgments and estimates which are subject to change. A 100 basis point increase in our weighted average cost of capital within the Company-owned reporting unit would result in a reduction in headroom to approximately 17% . Other uncertain factors or events exist which may result in a future triggering event and require us to perform an interim impairment analysis with respect to the carrying value of goodwill for the Company-owned reporting unit prior to our annual assessment. These internal and external factors include but are not limited to the following: • Changes in the company-owned and franchise expansion strategy, • Future market earnings multiples deterioration, • Our financial performance falls short of our projections due to internal operating factors, • Economic recession, • Reduced salon traffic, • Deterioration of industry trends, • Increased competition, • Inability to reduce general and administrative expenses as company-owned salon count potentially decreases, • Other factors causing our cash flow to deteriorate. If the triggering event analysis indicates the fair value of the Company-owned reporting unit has potentially fallen below more than the 24% headroom, we may be required to perform an updated impairment assessment which may result in a non-cash impairment charge to reduce the carrying value of goodwill. As of June 30, 2018 , the Company's estimated fair value, as determined by the sum of our reporting units' fair value, reconciled within a reasonable range of our market capitalization, which included an assumed control premium of 20.0% . Assessing goodwill for impairment requires management to make assumptions and to apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates, which can be affected by economic conditions and other factors that can be difficult to predict. The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions it uses to calculate impairment losses of goodwill. However, if actual results are not consistent with the estimates and assumptions used in the calculations, or if there are significant changes to the Company's planned strategy for company-owned salons, the Company may be exposed to future impairment losses that could be material. Fiscal Year 2017 During the fourth quarter of fiscal year 2017, the Company experienced a triggering event due to the redefining of its operating segments, which also coincided with the annual assessment date. See Note 14 to the Consolidated Financial Statements. In connection with the change in operating segment structure, the Company changed its North American reporting units from two reporting units: North American Value and North American Premium, to three reporting units: North American Value, North American Franchise and North American Premium. Pursuant to the change in operating segments, the Company performed a goodwill impairment assessment on its North American Value reporting unit. The North American Premium and International units do not have any goodwill. The Company compared the carrying value of the North American Value reporting unit, including goodwill, to its estimated fair value. The fair value of the reporting unit exceeded its carrying value by a substantial margin, resulting in no goodwill impairment. Assessing goodwill for impairment requires management to make assumptions and to apply judgment, including forecasting future sales and expenses, and selecting appropriate discount rates, which can be affected by economic conditions and other factors that can be difficult to predict. The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions it uses to calculate impairment losses of goodwill. However, if actual results are not consistent with the estimates and assumptions used in the calculations, the Company may be exposed to future impairment losses that could be material. Based on the changes to the Company's operating segment structure, goodwill has been reallocated based on relative fair value to the North American Value and North American Franchise reporting units at June 30, 2017 and 2016. Fiscal Years 2016 During the Company’s annual goodwill impairment assessment, the Company assessed qualitative factors to determine whether it is more likely than not that the fair value of the reporting units were less than their carrying value (“Step 0”). The Company determined it is “more-likely-than-not” that the carrying values of the reporting units were less than the fair values. Accordingly, the Company did not perform a two-step quantitative analysis. Investments In Affiliates: The Company has equity investments in securities of certain privately held entities. The Company accounts for these investments under the equity or cost method of accounting. Investments accounted for under the equity method are recorded at the amount of the Company's investment and adjusted each period for the Company's share of the investee's income or loss. Investments are reviewed for changes in circumstance or the occurrence of events that suggest the Company's investment may not be recoverable. See Note 5 to the Consolidated Financial Statements During fiscal year 2016, the Company recorded its portion of equity losses from investments in affiliate of $1.8 million and an other than temporary impairment charge of $13.0 million . The other than temporary impairment charge resulted from one investment's significantly lower financial projections in fiscal years 2016 due to continued declines in enrollment, revenue and profitability. The full impairment of this investment followed previous non-cash impairment charges, the investment's impairment of goodwill and its establishment of a deferred tax valuation allowance in prior quarters. The Company did not record any equity income or losses related to its investments during fiscal years 2017 and 2018. The Company will record equity income related to the Company's investment once its cumulative income exceeds its cumulative losses, measured from the date of impairment. Self-Insurance Accruals: The Company uses a combination of third party insurance and self-insurance for a number of risks including workers' compensation, health insurance, employment practice liability and general liability claims. The liability represents the Company's estimate of the undiscounted ultimate cost of uninsured claims incurred as of the balance sheet date. The Company estimates self-insurance liabilities using a number of factors, primarily based on independent third-party actuarially-determined amounts, historical claims experience, estimates of incurred but not reported claims, demographic factors and severity factors. Although the Company does not expect the amounts ultimately paid to differ significantly from the estimates, self-insurance accruals could be affected if future claims experience differs significantly from historical trends and actuarial assumptions. For fiscal years 2018 , 2017 and 2016 , the Company recorded decreases in expense for changes in estimates related to prior year open policy periods of $1.2 , $1.6 and $1.0 million , respectively. The Company updates loss projections quarterly and adjusts its liability to reflect updated projections. The updated loss projections consider new claims and developments associated with existing claims for each open policy period. As certain claims can take years to settle, the Company has multiple policy periods open at any point in time. As of June 30, 2018 , the Company had $10.3 and $25.8 million recorded in current liabilities and noncurrent liabilities, respectively, related to the Company's self-insurance accruals. As of June 30, 2017 , the Company had $12.4 and $26.1 million recorded in current liabilities and noncurrent liabilities, respectively, related to the Company's self-insurance accruals. Deferred Rent and Rent Expense: The Company leases most salon locations under operating leases. Rent expense is recognized on a straight-line basis over the lease term. Tenant improvement allowances funded by landlord incentives, rent holidays and rent escalation clauses which provide for scheduled rent increases during the lease term or for rental payments commencing at a date other than the date of initial occupancy are recorded in the Consolidated Statements of Operations on a straight-line basis over the lease term (including one renewal period if renewal is reasonably assured based on the imposition of an economic penalty for failure to exercise the renewal option). The difference between the rent due under the stated periods of the lease and the straight-line basis is recorded as deferred rent within accrued expenses and other noncurrent liabilities in the Consolidated Balance Sheet. For purposes of recognizing incentives and minimum rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the leased space to begin amortization, which is generally when the Company enters the space and begins to make improvements in preparation of its intended use. Certain leases provide for contingent rents, which are determined as a percentage of revenues in excess of specified levels. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheet, along with the corresponding rent expense in the Consolidated Statement of Operations, when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. Revenue Recognition and Deferred Revenue: Company-owned salon revenues are recognized at the time when the services are provided. Product revenues are recognized when the guest receives and pays for the merchandise. Revenues from purchases made with gift cards are also recorded when the guest takes possession of the merchandise or services are provided. Gift cards issued by the Company are recorded as a liability (deferred revenue) until they are redeemed. Product sales by the Company to its franchisees are included within product revenues on the Consolidated Statement of Operations and recorded at the time product is shipped to franchise locations. Franchise revenues primarily include royalties, initial franchise fees and net rental income. Royalties are recognized as revenue in the month in which franchisee services are rendered. The Company recognizes revenue from initial franchise fees at the time franchise locations are opened, as this is generally when the Company has performed all initial services required under the franchise agreement. Classification of Expenses: The following discussion provides the primary costs classified in each major expense category: Beginning in the first quarter of fiscal year 2018, costs associated with field leaders that were previously recorded within Cost of Service and Site Operating expenses are now categorized within General and Administrative expense as a result of the field reorganization that took place in the first quarter of fiscal year 2018. Previously, field leaders spent most of their time on the salon floor leading and mentoring stylists and serving guests. As reorganized, field leaders now do not work on the salon floor daily. As a result, field leader labor costs are now reported within General and Administrative expenses rather than Cost of Service and their travel costs are reported within General and Administrative expenses rather than Site Operating expenses. This expense classification does not have a financial impact on the Company's reported operating income (loss), reported net (loss) income or cash flows from operations. Cost of service— labor costs related to salon employees, costs associated with our field supervision (fiscal years 2017 and 2016) and the cost of product used in providing service. Cost of product— cost of product sold to guests, labor costs related to selling retail product and the cost of product sold to franchisees. Site operating— direct costs incurred by the Company's salons, such as advertising, workers' compensation, insurance, utilities, travel costs associated with our field supervision (fiscal years 2017 and 2016) and janitorial costs. General and administrative— costs associated with field supervision (fiscal year 2018), costs associated with salon training, distribution centers and corporate offices (such as salaries and professional fees), including cost incurred to support franchise operations. Consideration Received from Vendors: The Company receives consideration for a variety of vendor-sponsored programs. These programs primarily include volume reb |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS In October 2017, the Company sold substantially all of its mall-based salon business in North America, representing 858 salons, and substantially all of its International segment, representing approximately 250 salons in the UK, to The Bea utiful Group ("TBG"), an affiliate of Regent, a private equity firm based in Los Angeles, California, who will operate these locations as franchise locations. As part of the sale of the mall-based business, TBG agreed to pay for the value of certain inventory and assumed specific liabilities, including lease liabilities. For the International segment, the Company entered into a share purchase agreement with TBG for minimal consideration. As of September 30, 2017, the Company classified the results of its mall-based business and its International segment as a discontinued operation for all periods presented in the Condensed Consolidated Statement of Operations. The operations of the mall-based business and International segment, which were previously recorded in the North American Value, North American Premium and International reporting segments, have been eliminated from ongoing operations of the Company. In connection with the sale of the mall-based business and the International segment as part of our held for sale assessment at September 30, 2017, the Company performed an impairment assessment of the asset groups. The Company recognized net impairment charges within discontinued operations based on the difference between the expected sale prices and the carrying value of the asset groups. In March 2018, the Company entered into discussions with TBG regarding a waiver of working capital and prepaid rent payments associated with the original transaction and the financing of certain receivables to assist TBG with its cash flow and operational needs. Based on the status of these discussions at March 31, 2018 , the Company fully reserved the working capital and prepaid rent amount of $11.7 million , which was recorded within discontinued operations, net of taxes on the Condensed Consolidated Statement of Operations. In addition, the Company reclassified $8.0 million of accounts receivables due from TBG to other assets as these receivables are expected to be collected more than twelve months in the future. Should the Company need to record reserves against its current and future receivables from TBG, these reserves would be recorded within general and administrative expenses. The following summarizes the results of our discontinued operations for the periods presented: Fiscal Years 2018 2017 2016 (Dollars in thousands) Revenues $ 101,140 $ 423,427 $ 498,935 Loss from discontinued operations, before income taxes (59,545 ) (15,163 ) (5,732 ) Income tax benefit on discontinued operations 6,360 — — Equity in loss of affiliated companies, net of tax — (81 ) 3 Loss from discontinued operations, net of income taxes $ (53,185 ) $ (15,244 ) $ (5,729 ) Included within the $53.2 million loss from discontinued operations for fiscal year 2018 are $43.0 million of asset impairment charges, $6.2 million of cumulative foreign currency translation adjustment associated with the Company's liquidation of substantially all foreign entities with British pound denominated currencies, $3.6 million of loss from operations and $6.8 million of professional fees associated with the transaction, partly offset by a $6.4 million income tax benefit. Income taxes have been allocated to continuing and discontinued operations based on the methodology required by accounting for income taxes guidance. The Company utilized the consolidation of variable interest entities guidance to determine whether or not TBG was a variable interest entity (VIE), and if so, whether the Company was the primary beneficiary of TBG. The Company concluded that TBG is a VIE based on the fact that the equity investment at risk in TBG is not sufficient. The Company determined that it is not the primary beneficiary of TBG based on its exposure to the expected losses of TBG and as it is not the variable interest holder that is most closely associated within the relationship and the significance of the activities of TBG. The exposure to loss related to the Company's involvement with TBG is the carrying value of the amounts due from TBG and the guarantee of the operating leases. Within salon asset impairments presented in the Consolidated Statement of Cash Flows for the fiscal years ended 2017 and 2016, $3.4 million of salon asset impairments were related to discontinued operations in each year. Other than the salon asset impairments and the other items presented in the Consolidated Statement of Cash Flows, there were no other significant non-cash operating activities or any significant non-cash investing activities related to discontinued operations for the fiscal years ended 2018, 2017 and 2016. |
OTHER FINANCIAL STATEMENT DATA
OTHER FINANCIAL STATEMENT DATA | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL STATEMENT DATA | OTHER FINANCIAL STATEMENT DATA The following provides additional information concerning selected balance sheet accounts: June 30, 2018 2017 (Dollars in thousands) Other current assets: Prepaids $ 27,438 $ 27,802 Restricted cash 19,556 19,032 Other 873 1,280 $ 47,867 $ 48,114 Property and equipment: Land $ 3,864 $ 3,864 Buildings and improvements 48,265 47,471 Equipment, furniture and leasehold improvements 380,196 420,656 Internal use software 66,046 71,054 Equipment, furniture and leasehold improvements under capital leases 32,343 57,561 530,714 600,606 Less accumulated depreciation and amortization (393,958 ) (422,652 ) Less amortization of equipment, furniture and leasehold improvements under capital leases (30,896 ) (54,673 ) $ 105,860 $ 123,281 Accrued expenses: Payroll and payroll related costs $ 53,949 $ 59,192 Insurance 12,891 14,876 Other 30,790 36,367 $ 97,630 $ 110,435 Other noncurrent liabilities: Deferred income taxes $ 32,229 $ 108,187 Deferred rent 20,613 29,038 Insurance 25,804 26,112 Deferred benefits 13,377 17,302 Other 15,852 16,735 $ 107,875 $ 197,374 The following provides additional information concerning other intangibles, net: June 30, 2018 2017 Weighted Average Amortization Periods (1) Cost (2) Accumulated Amortization (2) Net Weighted Average Amortization Periods (1) Cost (2) Accumulated Net (In years) (Dollars in thousands) (In years) (Dollars in thousands) Brand assets and trade names 31 $ 8,128 $ (4,260 ) $ 3,868 31 $ 8,187 $ (4,013 ) $ 4,174 Franchise agreements 19 9,763 (7,712 ) 2,051 19 9,832 (7,433 ) 2,399 Lease intangibles 20 13,997 (9,770 ) 4,227 20 14,007 (9,077 ) 4,930 Other 21 1,983 (1,572 ) 411 21 1,994 (1,532 ) 462 Total 22 $ 33,871 $ (23,314 ) $ 10,557 22 $ 34,020 $ (22,055 ) $ 11,965 _______________________________________________________________________________ (1) All intangible assets have been assigned an estimated finite useful life and are amortized on a straight-line basis over the number of years that approximate their expected period of benefit (ranging from three to 40 years ). (2) The change in the gross carrying value and accumulated amortization of other intangible assets is impacted by foreign currency. Total amortization expense related to intangible assets during fiscal years 2018 , 2017 and 2016 was approximately $1.4 million in each year. As of June 30, 2018 , future estimated amortization expense related to intangible assets is estimated to be: Fiscal Year (Dollars in thousands) 2019 $ 1,342 2020 1,342 2021 1,216 2022 1,169 2023 1,001 Thereafter 4,487 Total $ 10,557 The following provides supplemental disclosures of cash flow activity: Fiscal Years 2018 2017 2016 (Dollars in thousands) Cash paid (received) for: Interest $ 7,022 $ 7,293 $ 7,660 Income taxes, net 2,397 2,314 2,237 Noncash investing activities: Unpaid capital expenditures 9,209 2,774 6,627 |
GOODWILL
GOODWILL | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The table below contains details related to the Company's goodwill: June 30, 2018 2017 Gross Carrying Value (2) Accumulated Impairment (1) Net Gross Accumulated Impairment (1) Net (Dollars in thousands) Goodwill $ 486,743 $ (74,100 ) $ 412,643 $ 491,087 $ (74,100 ) $ 416,987 _______________________________________________________________________________ (1) In fiscal year 2011 the Company realized a $74.1 million goodwill impairment loss associated with the Company-owned reporting unit (the previous North American Value reporting unit). (2) The change in the gross carrying value of goodwill relates to foreign currency translation adjustments. The table below contains details related to the Company's goodwill: Company-owned Franchise Consolidated (Dollars in thousands) Goodwill, net at June 30, 2016 $ 189,218 $ 228,175 $ 417,393 Translation rate adjustments (63 ) (76 ) (139 ) Derecognition related to sale of salon assets to franchisees (1) (267 ) — (267 ) Goodwill, net at June 30, 2017 188,888 228,099 416,987 Translation rate adjustments (201 ) (244 ) (445 ) Derecognition related to sale of salon assets to franchisees (1) (3,899 ) — (3,899 ) Goodwill, net at June 30, 2018 $ 184,788 $ 227,855 $ 412,643 _______________________________________________________________________________ (1) Goodwill is derecognized for salons sold to franchisees with positive cash flows. The amount of goodwill derecognized is determined by a fraction (the numerator of which is the trailing-twelve months EBITDA of the salon being sold and the denominator of which is the estimated annualized EBITDA of the Company-owned reporting unit) that is applied to the total goodwill balance of the Company-owned reporting unit. |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Jun. 30, 2018 | |
Investments in and Advances to Affiliates [Abstract] | |
INVESTMENTS IN AFFILIATES | INVESTMENTS IN AFFILIATES The table below presents summarized financial information of equity method investees: Greater than 50 Percent Owned Fiscal Year 2018 2017 2016 (Dollars in thousands) Summarized Balance Sheet information: Current assets $ 40,990 $ 32,649 $ 46,733 Noncurrent assets 37,875 39,211 42,380 Current liabilities 21,897 18,385 18,160 Noncurrent liabilities 23,243 12,181 28,756 Summarized Statement of Operations information: Gross revenue $ 130,082 $ 125,486 $ 130,302 Gross profit 40,194 41,097 34,585 Operating (loss) income (2,239 ) (651 ) (5,857 ) Net (loss) income (2,551 ) (899 ) (5,551 ) Investment in Empire Education Group, Inc. The Company accounts for its 54.6% ownership interest in EEG as an equity method investment under the voting interest model. During fiscal year 2016, the Company recorded an other than temporary impairment charge of $13.0 million , which resulted from EEG's significantly lower financial projections due to continued declines in enrollment, revenue and profitability. The full impairment of the investment followed previous non-cash impairment charges, EEG's impairment of goodwill and its establishment of a deferred tax valuation allowance in prior quarters. Prior to the other than temporary impairment charge, the Company recorded a $1.8 million loss for its portion of EEG's losses. The Company has not recorded any equity income or losses related to its investment in EEG subsequent to the impairment. The Company will record equity income related to the Company's investment in EEG once EEG's cumulative income exceeds its cumulative losses, measured from the date of impairment. While the Company could be responsible for certain liabilities associated with this venture, the Company does not currently expect them to have a material impact on the Company's financial position. Investment in MY Style During fiscal year 2017, the Company sold its 27.1% ownership interest in MY Style to MY Style's parent company, Yamano Holdings Corporation for $0.5 million . This ownership interest was previously accounted for as a cost method investment. Associated with the sale, foreign currency translation loss of $0.4 million previously classified within accumulated other comprehensive income was recognized in earnings. The Company also reported a $0.2 million gain associated with the sale within interest income and other, net on the Consolidated Statement of Operations. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value measurements are categorized into one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs available at the measurement date, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Assets and Liabilities Measured at Fair Value on a Recurring Basis As of June 30, 2018 and June 30, 2017 , the estimated fair value of the Company’s cash, cash equivalents, restricted cash, receivables and accounts payable approximated their carrying values. As of June 30, 2018 , the estimated fair value of the Company's debt was $90.0 million and the carrying value was $90.0 million . As of June 30, 2017 , the estimated fair value of the Company's debt was $125.9 million and the carrying value was $123.0 million , excluding the $1.8 million unamortized debt discount and $0.6 million unamortized debt issuance costs. The estimated fair value of the Company's debt is based on Level 2 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We measure certain assets, including the Company’s equity method investments, tangible fixed and other assets and goodwill, at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. The following impairment charges were based on fair values using Level 3 inputs: Fiscal Year 2018 2017 2016 (Dollars in thousands) Long-lived assets (1) $ (11,092 ) $ (7,943 ) $ (7,057 ) Investment in EEG (2) — — (12,954 ) _____________________________ (1) See Note 1 to the Consolidated Financial Statements. (2) See Note 5 to the Consolidated Financial Statements. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The Company's long-term debt consists of the following: Interest rate % Fiscal Years June 30, Maturity Dates 2018 2017 2018 2017 (fiscal year) (Dollars in thousands) Revolving credit facility, new 2023 3.34% —% $ 90,000 $ — Revolving credit facility, old N/A —% —% — — Senior term notes N/A 5.5% 5.5% — 120,599 $ 90,000 $ 120,599 The debt agreements contain covenants, including limitations on incurrence of debt, granting of liens, investments, merger or consolidation, certain restricted payments and transactions with affiliates. In addition, the Company must adhere to specified fixed charge coverage and leverage ratios. The Company was in compliance with all covenants and other requirements of our financing arrangements as of June 30, 2018 . Revolving Credit Facility In March 2018, the Company entered into a Credit Agreement (Credit Agreement), which provides for a $260.0 million unsecured five -year revolving credit facility (Revolving Credit Facility) that expires in March 2023 and includes, among other things, a maximum consolidated net leverage ratio covenant, a minimum fixed charge coverage ratio covenant, and certain restrictions on liens, investments and other indebtedness. The Revolving Credit Facility includes a $30.0 million subfacility for the issuance of letters of credit and a $30.0 million sublimit for swingline loans. The Company may request an increase in revolving credit commitments under the facility of up to $150.0 million under certain circumstances. The revolving credit facility has variable interest rates tied to LIBOR plus 1.25% to 1.85% and includes a facility fee of 0.25% to 0.40% . Both the LIBOR credit spread and the facility fee are based on the Company's consolidated net leverage ratio. In April 2018, the Company amended and restated the Credit Agreement which increased the Revolving Credit Facility under the Credit Agreement by $35.0 million . After giving effect to the amendment, the revolving commitment under the Credit Facility is $295.0 million . As of June 30, 2018 , the Company had $90.0 million of outstanding borrowings under the Revolving Credit Facility. At June 30, 2018 , the Company has outstanding standby letters of credit under the Revolving Credit Facility of $1.5 million primarily related to the Company's self-insurance program, therefore, unused available credit under the facility was $203.5 million . In connection with entering into the Credit Agreement, the Company terminated its previous $200.0 million revolving credit facility. As a result of terminating the $200.0 million revolving credit facility, the Company recognized $0.1 million of additional interest expense related to unamortized commitment fees during the fiscal year 2018. The Company previously had no outstanding borrowings under this revolving credit facility and outstanding letters of credit under the facility of $1.5 million , primarily related to the Company's self-insurance program, therefore the unused available credit under the facility at June 30, 2017 was $198.5 million . Senior Term Notes In March 2018, the Company redeemed all of its 5.5% senior term notes that were due December 2019 (Senior Term Notes) for $124.2 million , which included a $1.2 million premium. The Company utilized $90.0 million under the Revolving Credit Facility and cash on hand of $34.2 million to repay the Senior Term Notes. As a result of redeeming the Senior Term Notes, the Company recorded $1.7 million of additional interest expense related to the unamortized debt discount and debt issuance costs during the fiscal year 2018. The following table contains details related to the Company's Senior Term Notes: June 30, 2018 2017 (Dollars in thousands) Principal amount on the Senior Term Notes $ — $ 123,000 Unamortized debt discount — (1,815 ) Unamortized debt issuance costs — (586 ) Senior Term Notes, net $ — $ 120,599 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases: The Company leases most of its company-owned salons and some of its corporate facilities and distribution centers under operating leases. The original terms of the salon leases range from one to 20 years , with many leases renewable for additional five to ten year terms at the option of the Company. For most leases, the Company is required to pay real estate taxes and other occupancy expenses. Rent expense for the Company's international department store salons is based primarily on a percentage of sales. The Company also leases the premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. These leases, generally with terms of approximately five years , are expected to be renewed on expiration. All additional lease costs are passed through to the franchisees. Sublease income was $34.0 , $31.5 and $31.4 million in fiscal years 2018 , 2017 and 2016 , respectively. Rent expense on premises subleased was $33.6 , $31.1 and $30.9 million in fiscal years 2018 , 2017 and 2016 , respectively. Rent expense and related rental income on sublease arrangements with franchisees is netted within the rent expense line item on the Consolidated Statement of Operations. In most cases, the amount of rental income related to sublease arrangements with franchisees approximates the amount of rent expense from the primary lease, thereby having no net impact on rent expense or net (loss) income. However, in limited cases, the Company charges a 10.0% mark-up in its sublease arrangements. The net rental income resulting from such arrangements totaled $0.4 , $0.4 , and $0.5 million for fiscal years 2018 , 2017 and 2016 , respectively, and was classified in the royalties and fees caption of the Consolidated Statement of Operations. The Company has a sublease arrangement for a leased building the Company previously occupied. The aggregate amount of lease payments to be made over the remaining lease term are approximately $3.5 million . The amount of rental income approximates the amount of rent expense, thereby having no material impact on rent expense or net income (loss). Total rent expense, excluding rent expense on premises subleased to franchisees, includes the following: Fiscal Years 2018 2017 2016 (Dollars in thousands) Minimum rent (1) $ 157,828 $ 154,417 $ 156,601 Percentage rent based on sales 4,324 4,058 4,337 Real estate taxes and other expenses 20,944 22,003 23,212 $ 183,096 $ 180,478 $ 184,150 _______________________________________________________________________________ (1) Fiscal year 2018 includes lease termination and other related closure costs of $27.3 million and a deferred rent benefit of $3.3 million related to the restructuring of the company-owned SmartStyle portfolio that occurred in January 2018. As of June 30, 2018 , future minimum lease payments (excluding percentage rents based on sales) due under existing noncancelable operating leases are as follows: Fiscal Year Corporate leases Franchisee leases (Dollars in thousands) 2019 $ 129,804 $ 102,406 2020 103,652 77,748 2021 71,993 56,186 2022 41,196 37,202 2023 17,723 20,215 Thereafter 7,735 22,617 Total minimum lease payments $ 372,103 $ 316,374 Contingencies: The Company is self-insured for most workers' compensation, employment practice liability and general liability. Workers' compensation and general liability losses are subject to per occurrence and aggregate annual liability limitations. The Company is insured for losses in excess of these limitations. The Company is also self-insured for health care claims for eligible participating employees subject to certain deductibles and limitations. The Company determines its liability for claims incurred but not reported on an actuarial basis. Litigation and Settlements: The Company is a defendant in various lawsuits and claims arising out of the normal course of business. Like certain other large retail employers, the Company has been faced with allegations of purported class-wide consumer and wage and hour violations. Litigation is inherently unpredictable and the outcome of these matters cannot presently be determined. Although the actions are being vigorously defended, the Company could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of continuing operations (loss) income before income taxes are as follows: Fiscal Years 2018 2017 2016 (Dollars in thousands) (Loss) income before income taxes: U.S. $ (10,251 ) $ 4,652 $ 16,305 International 6,703 3,676 1,943 $ (3,548 ) $ 8,328 $ 18,248 The (benefit) provision for income taxes consists of: Fiscal Years 2018 2017 2016 (Dollars in thousands) Current: U.S. $ 2,151 $ 994 $ 819 International 1,894 268 1,207 Deferred: U.S. (69,350 ) 7,901 6,997 International (129 ) 61 26 $ (65,434 ) $ 9,224 $ 9,049 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to earnings (loss) before income taxes, as a result of the following: Fiscal Years 2018 2017 2016 U.S. statutory rate 28.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 37.6 6.9 3.9 Valuation allowance (1) 1,532.3 73.4 35.6 Foreign income taxes at other than U.S. rates (1.3 ) (3.9 ) (0.3 ) Officer life insurance (3.2 ) (5.6 ) (5.2 ) Work Opportunity and Welfare-to-Work Tax Credits 43.7 (19.1 ) (16.9 ) Deferred tax rate remeasurement 296.4 — — FIN48 - Uncertain tax positions (45.8 ) — — Stock-based compensation (45.4 ) 17.9 — Other, net (2) 2.0 6.2 (2.5 ) 1,844.3 % 110.8 % 49.6 % _______________________________________________________________________________ (1) See Note 1 to the Consolidated Financial Statements. (2) The 2.0% of Other, net in fiscal year 2018 does not include the rate impact of any items in excess of 5% of computed tax. The 6.2% of Other, net in fiscal year 2017 includes the rate impact of meals and entertainment expense disallowance, adjustments resulting from charitable contributions and miscellaneous items of 4.5% , 7.1% , and (5.4)% , respectively. Miscellaneous items do not include any items in excess of 5% of computed tax. The (2.5)% of Other, net in fiscal year 2016 does not include the rate impact of any items in excess of 5% of computed tax. The components of the net deferred tax assets and liabilities are as follows: June 30, 2018 2017 (Dollars in thousands) Deferred tax assets: Deferred rent $ 5,251 $ 13,581 Payroll and payroll related costs 14,083 24,519 Net operating loss carryforwards 41,570 28,378 Tax credit carryforwards 35,102 32,852 Inventories 1,103 1,930 Fixed assets 1,036 6,419 Accrued advertising 2,211 2,723 Insurance 1,893 4,153 Other 13,185 7,499 Subtotal $ 115,434 $ 122,054 Valuation allowance (67,912 ) (119,082 ) Total deferred tax assets $ 47,522 $ 2,972 Deferred tax liabilities: Goodwill and intangibles $ (72,670 ) $ (103,761 ) Other (7,081 ) (7,398 ) Total deferred tax liabilities $ (79,751 ) $ (111,159 ) Net deferred tax liability $ (32,229 ) $ (108,187 ) In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) changing rules related to net operating losses ("NOL") carryforwards and carrybacks; (3) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (4) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (5) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (6) allowing full expensing of qualified property; (7) creating a new base erosion anti-abuse minimum tax (“BEAT”) and provisions designed to tax global intangible low-taxed income (“GILTI”); (8) adding rules that limit the deductibility of interest expense; and (9) adding new provisions that further restrict the deductibility of certain executive compensation. Due to the Company's fiscal year end, different provisions of the Tax Act will become applicable at varying dates. Nonetheless, the Company is required to recognize the effects of the rate change and enacted legislation on its deferred tax assets and liabilities in the period of enactment. The SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under Accounting Standards Codification (ASC) 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with the Tax Act, the Company recorded a provisional net tax benefit of $68.1 million in continuing operations for the twelve months ended June 30, 2018. The $68.1 million net tax benefit is comprised of $30.5 million for the partial release of the U.S. valuation allowance and $37.6 million associated with remeasurement of the deferred tax accounts. The benefit recognized on current losses and the partial valuation allowance release is solely attributable to tax reform and the law change that allows for the indefinite carryforward of NOLs arising in tax years ending after December 31, 2017. Prior law limited the carryforward period to 20 years. As a result of the new tax rules, the Company can now consider its indefinite lived deferred tax liabilities as a source of income to support the realization of its existing deferred tax assets that upon reversal are expected to generate indefinite lived NOLs. Consequently, the Company is able to remove the valuation allowance associated with these deferred tax assets. The Company continues to maintain a valuation allowance on the historical balance of its finite lived federal NOLs, tax credits and various state tax attributes. We are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of our deferred tax balances and ultimately cause us to revise our provisional estimate in future periods in accordance with SAB 118. In addition, changes in interpretations, assumptions, and guidance regarding the new tax legislation, as well as the potential for technical corrections to the Tax Act, could have a material impact to the Company’s effective tax rate in future periods. At June 30, 2018, the Company has tax effected federal, state, Canada and U.K. net operating loss carryforwards of approximately $28.2 , $12.7 , $0.5 and $0.2 million , respectively. The federal loss carryforward will expire from fiscal years 2034 to 2037. The state loss carryforwards will expire from fiscal years 2019 to 2038. The Canada loss carryforward will expire from fiscal years 2036 to 2038. The U.K. loss carryforward has no expiration. The Company's tax credit carryforward of $35.1 million consists of $33.1 million that will expire from fiscal years 2030 to 2038, $0.5 million that will expire from fiscal years 2020 to 2028 and $1.5 million of carryforward that has no expiration date. As of June 30, 2018, the Company has not provided deferred taxes on approximately $14.5 million of undistributed earnings of attributable to its international subsidiaries that have been considered to be reinvested indefinitely. The Company has multiple avenues to repatriate these earnings tax efficiently and therefore it does not expect to incur significant U.S. or foreign income taxes upon repatriation. The Company files tax returns and pays tax primarily in the U.S., Canada, the U.K. and Luxembourg as well as states, cities, and provinces within these jurisdictions. The IRS examination associated with the Company’s U.S. federal income tax returns for fiscal years 2010 through 2013 was finalized during fiscal year 2018. Closure of the examination resulted in adjustments to existing tax attributes and did not result in any cash outflow. The Company is no longer subject to IRS examinations for years before 2013. With limited exceptions, the Company is no longer subject to state and international income tax examination by tax authorities for years before 2012. A rollforward of the unrecognized tax benefits is as follows: Fiscal Years 2018 2017 2016 (Dollars in thousands) Balance at beginning of period $ 1,388 $ 1,357 $ 1,496 Additions based on tax positions related to the current year 553 259 138 Additions based on tax positions of prior years 1,608 80 170 Reductions on tax positions related to the expiration of the statute of limitations (177 ) (179 ) (207 ) Settlements (345 ) (129 ) (240 ) Balance at end of period $ 3,027 $ 1,388 $ 1,357 If the Company were to prevail on all unrecognized tax benefits recorded, a benefit of approximately $2.4 million would be recorded in the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. During the fiscal years 2018, 2017 and 2016, we recorded interest and penalties of approximately $0.1 million as additions to the accrual net of the respective reversal of previously accrued interest and penalties. As of June 30, 2018, the Company had accrued interest and penalties related to unrecognized tax benefits of $1.2 million . This amount is not included in the gross unrecognized tax benefits noted above. It is reasonably possible the amount of the unrecognized tax benefit with respect to certain of our unrecognized tax positions will increase or decrease during the next fiscal year. However, an estimate of the amount or range of the change cannot be made at this time. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS Regis Retirement Savings Plan: The Company maintains a defined contribution 401(k) plan, the Regis Retirement Savings Plan (RRSP). The RRSP is a defined contribution profit sharing plan with a 401(k) feature that is intended to qualify under Section 401(a) of the Internal Revenue Code (Code) and is subject to the Employee Retirement Income Security Act of 1974 (ERISA). The 401(k) portion of the RRSP is a cash or deferred arrangement intended to qualify under section 401(k) of the Code and under which eligible employees may elect to contribute a percentage of their eligible compensation. Employees who are 18 years of age or older and who were not highly compensated employees as defined by the Code during the preceding RRSP year are eligible to participate in the RRSP commencing with the first day of the month following their completion of one month of service. The discretionary employer contribution profit sharing portion of the RRSP is a noncontributory defined contribution component covering full-time and part-time employees of the Company who have at least one year of eligible service, defined as 1,000 hours of service during the RRSP year, are employed by the Company on the last day of the RRSP year and are employed at Salon Support, distribution centers, as field leaders, artistic directors or consultants, and that are not highly compensated employees as defined by the Code. Participants' interest in the noncontributory defined contribution component become 20.0% vested after completing two years of service with vesting increasing 20.0% for each additional year of service, and with participants becoming fully vested after six full years of service. Nonqualified Deferred Salary Plan: The Company maintains a Nonqualified Deferred Salary Plan (Executive Plan), which covers Company officers and all other employees who are highly compensated as defined by the Code. The discretionary employer contribution portion of the Executive Plan is a profit sharing component in which a participant's interest becomes 20.0% vested after completing two years of service with vesting increasing 20.0% for each additional year of service, and with participants becoming fully vested after six full years of service. Certain participants within the Executive Plan also receive a matching contribution from the Company. Regis Individual Secured Retirement Plan (RiSRP): The Company maintains a Regis Individual Secured Retirement Plan (RiSRP), pursuant to which eligible employees may use post-tax dollars to purchase life insurance benefits. Salon Support employees at the director level and above, as well as regional vice presidents, are eligible to participate. The Company may make discretionary contributions on behalf of participants within the RiSRP, which may be calculated as a matching contribution. The participant is the owner of the life insurance policy under the RiSRP. Stock Purchase Plan: The Company has an employee stock purchase plan (ESPP) available to qualifying employees. Under the terms of the ESPP, eligible employees may purchase the Company's common stock through payroll deductions. The Company contributes an amount equal to 15.0% of the purchase price of the stock to be purchased on the open market and pays all expenses of the ESPP and its administration, not to exceed an aggregate contribution of $11.8 million . As of June 30, 2018 , the Company's cumulative contributions to the ESPP totaled $10.8 million . Deferred Compensation Contracts: The Company has unfunded deferred compensation contracts covering certain current and former key executives. Effective June 30, 2012, these contracts were amended and the benefits were frozen. Expense associated with the deferred compensation contracts included in general and administrative expenses on the Consolidated Statement of Operations totaled $0.2 million for fiscal years 2018 , 2017 and 2016 . The table below presents the projected benefit obligation of these deferred compensation contracts in the Consolidated Balance Sheet: June 30, 2018 2017 (Dollars in thousands) Current portion (included in accrued liabilities) $ 1,960 $ 1,658 Long-term portion (included in other noncurrent liabilities) 4,342 5,163 $ 6,302 $ 6,821 The accumulated other comprehensive income (loss) for the deferred compensation contracts, consisting of primarily unrecognized actuarial income, was $1.0 and $0.7 million at June 30, 2018 and 2017 , respectively. The Company had previously agreed to pay the former Vice Chairman an annual amount for the remainder of his life. Additionally, the Company has a survivor benefit plan for the former Vice Chairman's spouse. In October 2013, the former Vice Chairman passed away and the Company began paying survivor benefits to his spouse. Estimated associated costs included in general and administrative expenses on the Consolidated Statement of Operations totaled $0.3 , $0.3 and $0.2 million for fiscal years 2018 , 2017 and 2016 , respectively. Related obligations totaled $2.6 and $2.8 million at June 30, 2018 and 2017 , respectively, with $0.5 million within accrued expenses at June 30, 2018 and 2017 , respectively and the remainder included in other noncurrent liabilities in the Consolidated Balance Sheet. In connection with the passing of former employees in fiscal year 2018, 2017 and 2016, the Company received $18.1 , $0.9 and $2.9 million , respectively, in life insurance proceeds. The Company recorded gains of $8.0 , $0.1 and $1.2 million in fiscal year 2018, 2017, and 2016, respectively, in general and administrative in the Consolidated Statement of Operations associated with the proceeds. Compensation expense included in income (loss) from continuing operations before income taxes and equity in loss of affiliated companies related to the aforementioned plans, excluding amounts paid for expenses and administration of the plans included the following: Fiscal Years 2018 2017 2016 (Dollars in thousands) Executive plans $ 135 $ 249 $ 289 ESPP 204 280 301 Deferred compensation contracts 578 514 402 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company’s basic earnings per share is calculated as net income (loss) divided by weighted average common shares outstanding, excluding unvested outstanding restricted stock awards, RSUs and PSUs. The Company’s diluted earnings per share is calculated as net income (loss) divided by weighted average common shares and common share equivalents outstanding, which includes shares issued under the Company’s stock-based compensation plans. Stock-based awards with exercise prices greater than the average market price of the Company’s common stock are excluded from the computation of diluted earnings per share. For fiscal year 2018 , 518,236 common stock equivalents of dilutive common stock were included in the diluted earnings per share calculation due to the net income from continuing operations. For fiscal years 2017 and 2016 , 728,223 and 446,992 , respectively, of common stock equivalents of dilutive common stock were not included in the diluted earnings per share calculation due to the net loss from continuing operations. The computation of weighted average shares outstanding, assuming dilution, excluded the following stock-based awards as they were not dilutive under the treasury stock method: Fiscal Year 2018 2017 2016 Equity-based compensation awards 634,292 2,407,158 2,133,675 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company grants long-term equity-based awards under the 2016 Long Term Incentive Plan (the 2016 Plan). The 2016 Plan, which was approved by the Company's shareholders at its 2016 Annual Meeting, provides for the granting of nonqualified stock options, equity-based stock appreciation rights (SARs), restricted stock awards (RSAs), restricted stock units (RSUs) and stock-settled performance units (PSUs), as well as cash-based performance grants, to employees and non-employee directors of the Company. Under the 2016 Plan, a maximum of 3,500,000 shares were approved for issuance. The 2016 Plan incorporates a fungible share design, under which full value awards (such as RSUs and PSUs) count against the shares reserved for issuance at a rate 2.4 times higher than appreciation awards (such as SARs and stock options). As of June 30, 2018, a maximum of 4,500,278 shares were available for grant under the 2016 Plan. All unvested awards are subject to forfeiture in event of termination of employment, unless accelerated. SAR and RSU awards granted under the 2016 Plan generally include various acceleration terms, including upon retirement for participants aged sixty-two years or older or who are aged fifty-five or older and have fifteen years of continuous service. The Company also has outstanding awards under the Amended and Restated 2004 Long Term Incentive Plan (the "2004 Plan"), although the 2004 Plan terminated in October 2016 and no additional awards have since been or will be made under the 2004 Plan. The 2004 Plan provided for the granting of nonqualified stock options, equity-based stock appreciation rights (SARs), restricted stock awards (RSAs), restricted stock units (RSUs) and stock-settled performance share units (PSUs), as well as cash-based performance grants, to employees and non-employee directors of the Company. Under the 2016 Plan and the 2004 Plan, stock-based awards are granted at an exercise price or initial value equal to the fair market value on the date of grant. Using the fair value of each grant on the date of grant, the weighted average fair values per stock-based compensation award granted during fiscal years 2018 , 2017 and 2016 were as follows: 2018 2017 2016 SARs $ — $ 3.68 $ 3.51 RSAs & RSUs 13.43 11.73 11.18 PSUs 15.74 12.28 12.11 The fair value of SARs granted are estimated on the date of grant using the Black-Scholes-Merton (BSM) option valuation model. The significant assumptions used in determining the estimated fair value of SARs granted during fiscal years 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Risk-free interest rate N/A 1.99% 1.71% Expected term (in years) N/A 6.50 6.00 Expected volatility N/A 31.50% 30.00% Expected dividend yield N/A 0% 0% The fair value of market-based RSUs and PSUs granted are estimated on the date of grant using a Monte Carlo valuation model. The significant assumptions used in determining the estimated fair value of the market-based awards granted during fiscal years 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Risk-free interest rate 1.66 - 2.59% 1.21% N/A Expected volatility 33.4 - 37.1% 36.5% N/A Expected dividend yield 0% 0% N/A The risk free interest rate is determined based on the U.S. Treasury rates approximating the expected life of the SARs and market-based RSUs and PSUs granted. Expected volatility is established based on historical volatility of the Company's stock price. Estimated expected life was based on an analysis of historical stock awards granted data which included analyzing grant activity including grants exercised, expired and canceled. The expected dividend yield is determined based on the Company's annual dividend amount as a percentage of the strike price at the time of the grant. The Company uses historical data to estimate pre-vesting forfeiture rates. Stock-based compensation expense was as follows: 2018 2017 2016 SARs $ 2,252 $ 3,533 $ 2,774 RSAs, RSUs, & PSUs 6,017 9,609 7,023 Total stock-based compensation expense (recorded in G&A) 8,269 13,142 9,797 Less: Income tax benefit (1,736 ) — — Total stock-based compensation expense, net of tax $ 6,533 $ 13,142 $ 9,797 Total compensation cost for stock-based payment arrangements for fiscal years 2018 and 2017 includes $1.3 and $5.4 million related to the termination of former executive officers. Stock Appreciation Rights & Stock Options: SARs and stock options granted under the 2016 Plan and the 2004 Plan generally vest ratably over a three to five year period on each of the annual grant date anniversaries and expire ten years from the grant date. SARs granted subsequent to fiscal year 2012 vest ratably over a three year period with the exception of the April 2017 grant to the Chief Executive Officer, which vests in full after two years . Activity for all of our outstanding SARs and stock options is as follows: Shares (in thousands) Weighted Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) SARs Stock Options Outstanding balance at June 30, 2017 2,884 54 $ 14.47 Granted — — — Forfeited/Expired (1,086 ) (39 ) 17.62 Exercised (280 ) — 12.96 Outstanding balance at June 30, 2018 1,518 15 $ 12.44 7.54 $ 6,617 Exercisable at June 30, 2018 451 15 $ 15.42 4.91 $ 848 Unvested awards, net of estimated forfeitures 1,066 — $ 13.05 7.60 $ 5,766 As of June 30, 2018 , there was $1.5 million of unrecognized expense related to SARs and stock options that is to be recognized over a weighted-average period of 0.8 years. Restricted Stock Units: RSUs granted to employees under the 2016 Plan and 2004 Plan generally vest ratably over a three to five year period on each of the annual grant date anniversaries or vest entirely after a three or five year period. In addition, the Chief Executive Officer has an outstanding RSU grant that vests upon the achievement of a specified value for the Company's stock over a specified period of time. RSUs granted to non-employee directors under the 2016 Plan and 2004 Plan generally vest in equal monthly amounts over a one year period from the Company's previous annual shareholder meeting date and distributions are deferred until the director's board service ends. Activity for all of our RSUs is as follows: Shares/Units (in thousands) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) RSUs Outstanding balance at June 30, 2017 809 $ 12.77 Granted 322 13.43 Forfeited (88 ) 13.40 Vested (338 ) 13.13 Outstanding balance at June 30, 2018 705 $ 12.82 $ 11,657 Vested at June 30, 2018 189 $ 14.42 $ 3,123 Unvested awards, net of estimated forfeitures 486 $ 12.16 $ 8,035 As of June 30, 2018 , there was $3.2 million of unrecognized expense related to RSUs that is expected to be recognized over a weighted-average period of 1.7 years. Performance Share Units: PSUs are grants of restricted stock units which are earned based on the achievement of performance goals established by the Compensation Committee over a performance period. Activity for all of our PSUs is as follows: Shares/Units (in thousands) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands)(1) PSUs Outstanding balance at June 30, 2017 441 $ 12.74 Granted 176 15.74 Forfeited (166 ) 12.23 Vested (113 ) 15.23 Outstanding balance at June 30, 2018 338 $ 13.72 $ 5,589 Vested at June 30, 2018 — $ — $ — Unvested awards, net of estimated forfeitures 285 $ 13.38 $ 4,711 _______________________________________________________________________________ (1) Includes actual or expected payout rates as set forth in the performance criteria. In connection with the termination of former executive officers, the Company settled certain PSUs for cash of $0.8 million and $3.2 million during fiscal year 2018 and 2017, respectively. PSUs granted in fiscal year 2018 have a performance period of three years, after which they will vest to the extent earned. Future compensation expense for these unvested awards could reach a maximum of $4.7 million to be recognized over 2.2 years, if the maximum performance metrics are achieved. PSUs granted in fiscal year 2017 have a performance period of three years, after which they will vest to the extent earned. Future compensation expense for these unvested awards could reach a maximum of $1.4 million to be recognized over 1.1 years, if the maximum performance metrics are achieved. PSUs granted in fiscal year 2016 had a performance period of one year. They have been earned and will vest three years from the initial grant date. As of June 30, 2018 , there was less than $0.1 million of expense related to the fiscal 2016 PSUs that is expected to be recognized over a weighted-average period of 0.2 years. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Authorized Shares and Designation of Preferred Class: The Company has 100 million shares of capital stock authorized, par value $0.05 , of which all outstanding shares, and shares available under the Stock Option Plans, have been designated as common. Shareholders' Rights Plan: The Company previously had a shareholders' rights plan, which expired by its terms in December 2016. Share Repurchase Program: In May 2000, the Company's Board approved a stock repurchase program with no stated expiration date. Originally, the program authorized up to $50.0 million to be expended for the repurchase of the Company's stock. The Board elected to increase this maximum to $100.0 million in August 2003, to $200.0 million in May 2005, to $300.0 million in April 2007, to $350.0 million in April 2015, to $400.0 million in September 2015, and to $450.0 million in January 2016. All repurchased shares become authorized but unissued shares of the Company. The timing and amounts of any repurchases depends on many factors, including the market price of the common stock and overall market conditions. As of June 30, 2018 , 19.9 million shares have been cumulatively repurchased for $414.7 million , and $35.3 million remained outstanding under the approved stock repurchase program. Accumulated Other Comprehensive Income: The components of accumulated other comprehensive income are as follows: June 30, 2018 2017 2016 (Dollars in thousands) Foreign currency translation $ 8,580 $ 2,684 $ 4,573 Unrealized gain on deferred compensation contracts 988 652 495 Accumulated other comprehensive income $ 9,568 $ 3,336 $ 5,068 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Segment information is prepared on the same basis the chief operating decision maker reviews financial information for operational decision-making purposes. During the first quarter of fiscal year 2018, the Company redefined its operating segments to reflect how the chief operating decision maker now evaluates the business as a result of the Company's Board of Directors' approval of the mall-based business and International segment sale. See Note 1 to the Consolidated Financial Statements. The Company now reports its operations in two operating segments: Company-owned salons and Franchise salons. The Company's operating segments are its reportable operating segments. Prior to this change, the Company had four operating segments: North American Value, North American Premium, North American Franchise, and International. The Company did not operate under the realigned operating segment structure prior to the first quarter of fiscal year 2018. The Company-owned salons reportable operating segment is comprised of 3,966 company-owned salons located mainly in strip center locations and Walmart Supercenters. Company-owned salons offer high quality, convenient and value priced hair care and beauty services and retail products. SmartStyle, Supercuts, Cost Cutters and other regional trade names operating in the United States, Canada and Puerto Rico are generally within the Company-owned salons segment. The Franchise salons reportable operating segment is comprised of 4,114 franchised salons located mainly in strip center locations, Walmart Supercenters and mall-based locations. Franchise salons offer high quality, convenient and value priced hair care and beauty services and retail products. This segment operates in the United States and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, Regis, Mastercuts, First Choice Haircutters, Roosters and Magicuts concepts. Concurrent with the change in reportable segments, the Company recast its prior period financial information to reflect comparable financial information for the new segment structure. Historical financial information shown in the following table and elsewhere in this filing reflects this change. Financial information concerning the Company's reportable operating segments is shown in the following table: For the Year Ended June 30, 2018 Company-owned Franchise Corporate (1) Consolidated (Dollars in thousands) Revenues: Service $ 899,051 $ — $ — $ 899,051 Product 204,963 53,703 — 258,666 Royalties and fees — 56,357 — 56,357 1,104,014 110,060 — 1,214,074 Operating expenses: Cost of service 530,582 — — 530,582 Cost of product 98,495 42,128 — 140,623 Site operating expenses 127,249 — — 127,249 General and administrative 67,163 25,880 81,002 174,045 Rent 181,869 269 958 183,096 Depreciation and amortization 48,508 365 9,332 58,205 Total operating expenses 1,053,866 68,642 91,292 1,213,800 Operating income (loss) 50,148 41,418 (91,292 ) 274 Other (expense) income: Interest expense — — (10,492 ) (10,492 ) Interest income and other, net — — 6,670 6,670 Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies $ 50,148 $ 41,418 $ (95,114 ) $ (3,548 ) For the Year Ended June 30, 2017 Company-owned Franchise Corporate (1) Consolidated (Dollars in thousands) Revenues: Service $ 960,347 $ — $ — $ 960,347 Product 229,199 30,623 — 259,822 Royalties and fees — 48,291 — 48,291 1,189,546 78,914 — 1,268,460 Operating expenses: Cost of service 610,384 — — 610,384 Cost of product 103,611 22,686 — 126,297 Site operating expenses 127,797 — — 127,797 General and administrative 47,673 21,222 88,440 157,335 Rent 179,463 171 844 180,478 Depreciation and amortization 42,273 357 9,458 52,088 Total operating expenses 1,111,201 44,436 98,742 1,254,379 Operating income (loss) 78,345 34,478 (98,742 ) 14,081 Other (expense) income: Interest expense — — (8,584 ) (8,584 ) Interest income and other, net — — 2,831 2,831 Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies $ 78,345 $ 34,478 $ (104,495 ) $ 8,328 For the Year Ended June 30, 2016 Company-owned Franchise Corporate (1) Consolidated (Dollars in thousands) Revenues: Service $ 978,614 $ — $ — $ 978,614 Product 234,390 31,406 — 265,796 Royalties and fees — 47,523 — 47,523 1,213,004 78,929 — 1,291,933 Operating expenses: Cost of service 608,965 — — 608,965 Cost of product 106,929 23,086 — 130,015 Site operating expenses 135,130 9 — 135,139 General and administrative 48,811 21,490 86,711 157,012 Rent 182,932 162 1,056 184,150 Depreciation and amortization 42,466 363 10,059 52,888 Total operating expenses 1,125,233 45,110 97,826 1,268,169 Operating income (loss) 87,771 33,819 (97,826 ) 23,764 Other (expense) income: Interest expense — — (9,229 ) (9,229 ) Interest income and other, net — — 3,713 3,713 Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies $ 87,771 $ 33,819 $ (103,342 ) $ 18,248 _______________________________________________________________________________ (1) Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with salon support, depreciation and amortization related to our corporate headquarters and unallocated insurance, benefit and compensation programs, including stock-based compensation. The Company's chief operating decision maker does not evaluate reportable segments using assets and capital expenditure information. Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows: June 30, 2018 2017 2016 Total Revenues Property and Equipment, Net Total Revenues Property and Equipment, Net Total Revenues Property and Equipment, Net (Dollars in thousands) U.S. $ 1,112,155 $ 102,528 $ 1,174,408 $ 119,649 $ 1,198,227 $ 146,722 Other countries 101,919 3,332 94,052 3,632 93,706 5,438 Total $ 1,214,074 $ 105,860 $ 1,268,460 $ 123,281 $ 1,291,933 $ 152,160 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT In August 2018, the Company's Board of Directors authorized an additional $200.0 million for share repurchases. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 in this Form 10-K for explanations of items which impacted fiscal years 2018 and 2017 revenues, operating and net income (loss). Summarized quarterly data for fiscal years 2018 and 2017 follows: Quarter Ended September 30(a) December 31(b) March 31 June 30 (c) Year Ended (Dollars in thousands, except per share amounts) 2018 Revenues $ 309,873 $ 308,515 $ 300,801 $ 294,885 $ 1,214,074 Cost of service and product revenues, excluding depreciation and amortization 169,998 174,714 169,220 157,273 671,205 Operating income (loss) 16,736 (37,334 ) 5,884 14,988 274 Income from continuing operations 10,793 39,321 4,799 6,973 61,886 Loss from discontinued operations(d) (33,768 ) (6,601 ) (10,605 ) (2,211 ) (53,185 ) Net (loss) income (22,975 ) 32,720 (5,806 ) 4,762 8,701 Income from continuing operations per share, basic(g) 0.23 0.84 0.10 0.15 1.33 Loss from discontinued operations per share, basic (0.72 ) (0.14 ) (0.23 ) (0.05 ) (1.14 ) Net (loss) income per share, basic(g) (0.49 ) 0.70 (0.12 ) 0.10 0.19 Income from continuing operations per share, diluted(g) 0.23 0.83 0.10 0.15 1.32 Loss from discontinued operations per share, diluted (0.72 ) (0.14 ) (0.22 ) (0.05 ) (1.13 ) Net (loss) income per share, diluted(g) (0.49 ) 0.69 (0.12 ) 0.10 0.18 Quarter Ended September 30 December 31 March 31(e) June 30(f) Year Ended (Dollars in thousands, except per share amounts) 2017 Revenues $ 318,831 $ 315,249 $ 313,478 $ 320,902 $ 1,268,460 Cost of service and product revenues, excluding depreciation and amortization 181,612 185,777 183,997 185,295 736,681 Operating income (loss) 10,316 2,402 (6,214 ) 7,577 14,081 Income (loss) from continuing operations 5,740 982 (11,840 ) 4,222 (896 ) Loss from discontinued operations(d) (2,459 ) (3,201 ) (6,615 ) (2,969 ) (15,244 ) Net income (loss) 3,281 (2,219 ) (18,455 ) 1,253 (16,140 ) Loss from continuing operations per share, basic and diluted(g) 0.12 0.02 (0.26 ) 0.09 (0.02 ) Loss from discontinued operations per share, basic and diluted(g) (0.05 ) (0.07 ) (0.14 ) (0.06 ) (0.33 ) Net income (loss) per share, basic and diluted 0.07 (0.05 ) (0.40 ) 0.03 (0.35 ) _______________________________________________________________________________ (a) During the first quarter of fiscal year 2018, the Company recorded $33.8 million of one-time asset impairments and other non-recurring costs associated with the October 2017 sale of substantially all of its North American mall-based salons and its UK business. These impairments and costs and the result of operations for the salons sold, were classified in discontinued operations. Results of operations for the North American mall-based business and the UK have been classified as a discontinued operation for all periods presented. (b) During the second quarter of fiscal year 2018, the Company recorded $68.9 million of non-cash, one-time, tax benefits related to the enactment of the Tax Cuts and Jobs Act ("Tax Reform"), partially offset by $37.6 million of one-time lease termination and other non-recurring costs associated with the recently announced restructuring of the Company's SmartStyle® salon portfolio, and $3.5 million of other one-time costs. (c) During the fourth quarter of fiscal year 2018, the Company identified and recorded $2.0 million in non-cash fixed asset impairment charges within discontinued operations. These fixed asset impairment charges should have been recorded in the first quarter of fiscal year 2018. Because this error was not material to the period in which it originated or the fourth quarter, the Company corrected it in the fourth quarter of fiscal year 2018. (d) In October 2017, the Company sold substantially all of its mall-based salon business in North America and International segment to The Bea utiful Group ("TBG"). T he Company classified the results of its mall-based business and its International segment as a discontinued operation for all periods presented in the Condensed Consolidated Statement of Operations. (e) During the third quarter of fiscal year 2017, the Company recorded $7.9 million of severance expense related to the termination of former executive officers including the Company's Chief Executive Officer. (f) During the fourth quarter of fiscal year 2017, the Company recorded $5.3 million for a one-time inventory expense related to salon tools. (g) Total is an annual recalculation; line items calculated quarterly may not sum to total. |
BUSINESS DESCRIPTION AND SUMM24
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | The Consolidated Financial Statements include the accounts of the Company and its subsidiaries after the elimination of intercompany accounts and transactions. All material subsidiaries are wholly owned. The Company consolidates variable interest entities where it has determined it is the primary beneficiary of those entities' operations. |
Variable Interest Entities | The Company has interests in certain privately held entities through arrangements that do not involve voting interests. Such entities, known as a variable interest entity (VIE), are required to be consolidated by its primary beneficiary. The Company evaluates whether or not it is the primary beneficiary for each VIE using a qualitative assessment that considers the VIE's purpose and design, the involvement of each of the interest holders and the risk and benefits of the VIE. As of June 30, 2018 , the Company has one VIE, Roosters MGC International LLC (Roosters), where the Company is the primary beneficiary. The Company owns an 84.0% ownership interest in Roosters. As of June 30, 2018 , total assets, total liabilities and total shareholders' equity of Roosters were $8.3 , $0.6 and $7.7 million , respectively. Net income attributable to the non-controlling interest in Roosters was immaterial for fiscal years 2018 , 2017 and 2016 . Shareholders' equity attributable to the non-controlling interest in Roosters was $1.0 and $0.9 million as of June 30, 2018 and 2017 , respectively and recorded within retained earnings on the Consolidated Balance Sheet. The Company accounts for its investment in Empire Eduction Group, Inc. ("EEG") as an equity investment under the voting interest model, as the Company has granted the other shareholder of EEG an irrevocable proxy to vote a certain number of the Company’s shares such that the other shareholder of EEG has voting control of 51.0% of EEG’s common stock, as well as the right to appoint four of the five members of EEG’s Board of Directors. |
Use of Estimates | The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as a part of the Company's cash management activity. The carrying values of these assets approximate their fair market values. The Company primarily utilizes a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts that funds are moved to, and several "zero balance" disbursement accounts for funding of payroll and accounts payable. As a result of the Company's cash management system, checks issued, but not presented to the banks for payment, may create negative book cash balances. There were no checks outstanding in excess of related book cash balances at June 30, 2018 and 2017 . The Company has restricted cash primarily related to contractual obligations to collateralize its self-insurance programs. The restricted cash arrangement can be canceled by the Company at any time if substituted with letters of credit. The restricted cash balance is classified within other current assets on the Consolidated Balance Sheet. |
Receivables and Allowance for Doubtful Accounts | The receivable balance on the Company's Consolidated Balance Sheet primarily includes credit card receivables and accounts and notes receivable from franchisees. At June 30, 2018 , the receivable balance also included $24.6 million related to the cash surrender value of company-owned life insurance policies surrendered prior to June 30, 2018 . The Company received these proceeds in July 2018. The balance is presented net of an allowance for expected losses (i.e., doubtful accounts), primarily related to receivables from the Company's franchisees. The Company monitors the financial condition of its franchisees and records provisions for estimated losses on receivables when it believes franchisees are unable to make their required payments based on factors such as delinquencies and aging trends. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses related to existing accounts and notes receivables. |
Inventories | Inventories of finished goods consist principally of hair care products for retail product sales. A portion of inventories are also used for salon services consisting of hair color, hair care products including shampoo and conditioner and hair care treatments including permanents, neutralizers and relaxers. Inventories are stated at the lower of cost or market, with cost determined on a weighted average cost basis. Physical inventory counts are performed annually in the fourth quarter of the fiscal year for salons. Product and service inventories are adjusted based on the physical inventory counts. During the fiscal year, cost of retail product sold to salon guests is determined based on the weighted average cost of product sold, adjusted for an estimated shrinkage factor. The cost of product used in salon services is determined by applying an estimated percentage of total cost of service to service revenues. These estimates are updated quarterly based on cycle count results for the distribution centers and salons, service sales mix, discounting, special promotions and other factors. The Company has inventory valuation reserves for excess and obsolete inventories, or other factors that may render inventories unmarketable at their historical costs. Estimates of the future demand for the Company's inventory and anticipated changes in formulas and packaging are some of the other factors used by management in assessing the net realizable value of inventories. |
Property and Equipment | Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over their estimated useful asset lives ( 30 to 39 years for buildings, 10 years for improvements and three to ten years for equipment, furniture and software). Depreciation expense was $38.1 , $42.7 and $44.4 million in fiscal years 2018 , 2017 and 2016 , respectively. The Company capitalizes both internal and external costs of developing or obtaining computer software for internal use. Costs incurred to develop internal-use software during the application development stage are capitalized, while data conversion, training and maintenance costs associated with internal-use software are expensed as incurred. Estimated useful lives range from five to seven years . Expenditures for maintenance and repairs and minor renewals and betterments, which do not improve or extend the life of the respective assets, are expensed. All other expenditures for renewals and betterments are capitalized. The assets and related depreciation and amortization accounts are adjusted for property retirements and disposals with the resulting gain or loss included in operating income. Fully depreciated or amortized assets remain in the accounts until retired from service. |
Long-Lived Asset Impairment Assessments, Excluding Goodwill | The Company assesses impairment of long-lived assets at the individual salon level, as this is the lowest level for which identifiable cash flows are largely independent of other groups of assets and liabilities, when events or changes in circumstances indicate the carrying value of the assets or the asset grouping may not be recoverable. Factors considered in deciding when to perform an impairment review include significant under-performance of an individual salon in relation to expectations, significant economic or geographic trends, and significant changes or planned changes in our use of the assets. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use of the long-lived assets. If the undiscounted estimated cash flows are less than the carrying value of the assets, the Company calculates an impairment charge based on the estimated fair value of the assets. The fair value of the long-lived assets is estimated using a discounted cash flow model based on the best information available, including salon level revenues and expenses. Long-lived asset impairment charges are recorded within depreciation and amortization in the Consolidated Statement of Operations. Judgments made by management related to the expected useful lives of long-lived assets and the ability to realize undiscounted cash flows in excess of the carrying amounts of such assets are affected by factors such as the ongoing maintenance and improvement of the assets, changes in economic conditions and changes in operating performance. As the ongoing expected cash flows and carrying amounts of long-lived assets are assessed, these factors could cause the Company to realize material impairment charges. |
Goodwill | The Company assesses goodwill impairment on an annual basis, during the Company’s fourth fiscal quarter, and between annual assessments if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill impairment assessments are performed at the reporting unit level, which is the same as the Company’s operating segments. As part of the new simplification guidance issued by the Financial Accounting Standards Board (FASB), the goodwill assessment involves a one-step comparison of the reporting unit’s fair value to its carrying value, including goodwill ("Step 1"). The prior guidance required a hypothetical purchase price allocation as the second step of the goodwill impairment assessment, but this step has been eliminated. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit’s fair value is less than the carrying value, an impairment charge is recorded for the difference between the fair value and carrying value of the reporting unit. The Company early adopted this guidance when completing the annual fiscal year 2017 impairment assessment and therefore only completed Step 1 of the goodwill impairment assessment. In applying the goodwill impairment assessment, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting units is less than its carrying value (“Step 0”). Qualitative factors may include, but are not limited to, economic, market and industry conditions, cost factors, and overall financial performance of the reporting unit. If after assessing these qualitative factors, the Company determines it is “more-likely-than-not” that the carrying value is less than the fair value, then performing Step 1 of the goodwill impairment assessment is unnecessary. The carrying value of each reporting unit is based on the assets and liabilities associated with the operations of the reporting unit, including allocation of shared or corporate balances among reporting units. Allocations are generally based on the number of salons in each reporting unit as a percent of total company-owned salons or expenses of the reporting unit as a percent of total company expenses. The Company calculates estimated fair values of the reporting units based on discounted future cash flows utilizing estimates in annual revenue, service and product margins, fixed expense rates, allocated corporate overhead, corporate-owned and franchise salon counts and long-term growth rates for determining terminal value. Where available and as appropriate, comparative market multiples are used in conjunction with the results of the discounted cash flows. The Company periodically engages third-party valuation consultants to assist in evaluating the Company's estimated fair value calculations. |
Investments in Affiliates | The Company has equity investments in securities of certain privately held entities. The Company accounts for these investments under the equity or cost method of accounting. Investments accounted for under the equity method are recorded at the amount of the Company's investment and adjusted each period for the Company's share of the investee's income or loss. Investments are reviewed for changes in circumstance or the occurrence of events that suggest the Company's investment may not be recoverable. |
Self-Insurance Accruals | The Company uses a combination of third party insurance and self-insurance for a number of risks including workers' compensation, health insurance, employment practice liability and general liability claims. The liability represents the Company's estimate of the undiscounted ultimate cost of uninsured claims incurred as of the balance sheet date. The Company estimates self-insurance liabilities using a number of factors, primarily based on independent third-party actuarially-determined amounts, historical claims experience, estimates of incurred but not reported claims, demographic factors and severity factors. Although the Company does not expect the amounts ultimately paid to differ significantly from the estimates, self-insurance accruals could be affected if future claims experience differs significantly from historical trends and actuarial assumptions. For fiscal years 2018 , 2017 and 2016 , the Company recorded decreases in expense for changes in estimates related to prior year open policy periods of $1.2 , $1.6 and $1.0 million , respectively. The Company updates loss projections quarterly and adjusts its liability to reflect updated projections. The updated loss projections consider new claims and developments associated with existing claims for each open policy period. As certain claims can take years to settle, the Company has multiple policy periods open at any point in time. |
Deferred Rent and Rent Expense | The Company leases most salon locations under operating leases. Rent expense is recognized on a straight-line basis over the lease term. Tenant improvement allowances funded by landlord incentives, rent holidays and rent escalation clauses which provide for scheduled rent increases during the lease term or for rental payments commencing at a date other than the date of initial occupancy are recorded in the Consolidated Statements of Operations on a straight-line basis over the lease term (including one renewal period if renewal is reasonably assured based on the imposition of an economic penalty for failure to exercise the renewal option). The difference between the rent due under the stated periods of the lease and the straight-line basis is recorded as deferred rent within accrued expenses and other noncurrent liabilities in the Consolidated Balance Sheet. For purposes of recognizing incentives and minimum rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the leased space to begin amortization, which is generally when the Company enters the space and begins to make improvements in preparation of its intended use. Certain leases provide for contingent rents, which are determined as a percentage of revenues in excess of specified levels. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheet, along with the corresponding rent expense in the Consolidated Statement of Operations, when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. |
Revenue Recognition and Deferred Revenue, Classification of Expenses, Consideration Received from Vendors, Shipping and Handling Costs | Revenue Recognition and Deferred Revenue: Company-owned salon revenues are recognized at the time when the services are provided. Product revenues are recognized when the guest receives and pays for the merchandise. Revenues from purchases made with gift cards are also recorded when the guest takes possession of the merchandise or services are provided. Gift cards issued by the Company are recorded as a liability (deferred revenue) until they are redeemed. Product sales by the Company to its franchisees are included within product revenues on the Consolidated Statement of Operations and recorded at the time product is shipped to franchise locations. Franchise revenues primarily include royalties, initial franchise fees and net rental income. Royalties are recognized as revenue in the month in which franchisee services are rendered. The Company recognizes revenue from initial franchise fees at the time franchise locations are opened, as this is generally when the Company has performed all initial services required under the franchise agreement. Classification of Expenses: The following discussion provides the primary costs classified in each major expense category: Beginning in the first quarter of fiscal year 2018, costs associated with field leaders that were previously recorded within Cost of Service and Site Operating expenses are now categorized within General and Administrative expense as a result of the field reorganization that took place in the first quarter of fiscal year 2018. Previously, field leaders spent most of their time on the salon floor leading and mentoring stylists and serving guests. As reorganized, field leaders now do not work on the salon floor daily. As a result, field leader labor costs are now reported within General and Administrative expenses rather than Cost of Service and their travel costs are reported within General and Administrative expenses rather than Site Operating expenses. This expense classification does not have a financial impact on the Company's reported operating income (loss), reported net (loss) income or cash flows from operations. Cost of service— labor costs related to salon employees, costs associated with our field supervision (fiscal years 2017 and 2016) and the cost of product used in providing service. Cost of product— cost of product sold to guests, labor costs related to selling retail product and the cost of product sold to franchisees. Site operating— direct costs incurred by the Company's salons, such as advertising, workers' compensation, insurance, utilities, travel costs associated with our field supervision (fiscal years 2017 and 2016) and janitorial costs. General and administrative— costs associated with field supervision (fiscal year 2018), costs associated with salon training, distribution centers and corporate offices (such as salaries and professional fees), including cost incurred to support franchise operations. Consideration Received from Vendors: The Company receives consideration for a variety of vendor-sponsored programs. These programs primarily include volume rebates and promotion and advertising reimbursements. With respect to volume rebates, the Company estimates the amount of rebate it will receive and accrues it as a reduction to the cost of inventory over the period in which the rebate is earned based upon historical purchasing patterns and the terms of the volume rebate program. A quarterly analysis is performed in order to ensure the estimated rebate accrued is reasonable and any necessary adjustments are recorded. Shipping and Handling Costs: Shipping and handling costs are incurred to store, move and ship product from the Company's distribution centers to company-owned and franchise locations and include an allocation of internal overhead. Such shipping and handling costs related to product shipped to company-owned locations are included in site operating expenses in the Consolidated Statement of Operations. Shipping and handling costs related to shipping product to franchise locations totaled $6.1 , $3.7 and $3.6 million during fiscal years 2018 , 2017 and 2016 , respectively and are included within general and administrative expenses on the Consolidated Statement of Operations. Any amounts billed to franchisees for shipping and handling are included in product revenues within the Consolidated Statement of Operations. |
Advertising | Advertising costs, including salon collateral material, are expensed as incurred. |
Advertising Funds | The Company has various franchising programs supporting certain of its franchise salon concepts. Most maintain advertising funds that provide comprehensive advertising and sales promotion support. The Company is required to participate in the advertising funds for company-owned locations under the same salon concept. The Company assists in the administration of the advertising funds. However, a group of individuals consisting of franchisee representatives has control over all of the expenditures and operates the funds in accordance with franchise operating and other agreements. The Company records advertising expense in the period the company-owned salons make contributions to the respective advertising fund. |
Stock-Based Employee Compensation Plans | The Company recognizes stock-based compensation expense based on the fair value of the awards at the grant date. Compensation expense is recognized on a straight-line basis over the requisite service period of the award (or to the date a participant becomes eligible for retirement, if earlier). The Company uses option pricing methods that require the input of subjective assumptions, including the expected term, expected volatility, dividend yield and risk-free interest rate. The Company estimates the likelihood and the rate of achievement for performance sensitive stock-based awards at the end of each reporting period. Changes in the estimated rate of achievement can have a significant effect on the recorded stock-based compensation expense as the effect of a change in the estimated achievement level is recognized in the period the change occurs. |
Preopening Expenses | Non-capital expenditures such as payroll, training costs and promotion incurred prior to the opening of a new location are expensed as incurred. |
Sales Taxes | Sales taxes are recorded on a net basis (rather than as both revenue and an expense) within the Company's Consolidated Statement of Operations. |
Income Taxes | Deferred income tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the Consolidated Financial Statements or income tax returns. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using currently enacted tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is established for any portion of deferred tax assets that are not considered more likely than not to be realized. The Company evaluates all evidence, including recent financial performance, the existence of cumulative year losses and our forecast of future taxable income, to assess the need for a valuation allowance against our deferred tax assets. While the determination of whether or not to record a valuation allowance is not fully governed by a specific objective test, accounting guidance places significant weight on recent financial performance. The Company has a partial valuation allowance on its deferred tax assets amounting to $67.9 and $119.1 million at June 30, 2018 and 2017 , respectively. The Company assesses the realizability of its deferred tax assets on a quarterly basis and will reverse the valuation allowance and record a tax benefit when the Company generates sufficient sustainable pretax earnings to make the realizability of the deferred tax assets more likely than not. In connection with the Tax Cuts and Jobs Act enacted on December 22, 2017, the Company remeasured the deferred tax accounts for the federal rate reduction and recorded a partial valuation allowance release for a total benefit of $68.1 million during the twelve months ended June 30, 2018. See Note 9 to the Consolidated Financial Statements. The Company reserves for unrecognized tax benefits, interest and penalties related to anticipated tax audit positions in the U.S. and other tax jurisdictions based on an estimate of whether additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of these liabilities would result in tax benefits being recognized in the period in which it is determined that the liabilities are no longer necessary. If the estimate of unrecognized tax benefits, interest and penalties proves to be less than the ultimate assessment, additional expenses would result. Inherent in the measurement of deferred balances are certain judgments and interpretations of tax laws and published guidance with respect to the Company's operations. Income tax expense is primarily the current tax payable for the period and the change during the period in certain deferred tax assets and liabilities. |
Net Income (Loss) Per Share | The Company's basic earnings per share is calculated as net income (loss) divided by weighted average common shares outstanding, excluding unvested outstanding restricted stock awards and restricted stock units. The Company's dilutive earnings per share is calculated as net income (loss) divided by weighted average common shares and common share equivalents outstanding, which includes shares issuable under the Company's stock option plan and long-term incentive plan and dilutive securities. Stock-based awards with exercise prices greater than the average market value of the Company's common stock are excluded from the computation of diluted earnings per share. |
Comprehensive Income (Loss) | Components of comprehensive income (loss) include net income (loss), foreign currency translation adjustments and recognition of deferred compensation, net of tax within shareholders' equity. |
Foreign Currency Translation | The balance sheet, statement of operations and statement of cash flows of the Company's international operations are measured using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rates in effect at each balance sheet date. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income within shareholders' equity. Statement of Operations accounts are translated at the average rates of exchange prevailing during the year. |
Recent Accounting Standards | Leases In February 2016, the FASB issued updated guidance requiring organizations that lease assets to recognize the rights and obligations created by those leases on the consolidated balance sheet. The new standard is effective for the Company in the first quarter of fiscal year 2020, with early adoption permitted. The Company is currently evaluating the effect the new standard will have on the Company's consolidated financial statements but expects this adoption will result in a material increase in the assets and liabilities on the Company's consolidated balance sheet. Revenue from Contracts with Customers In May 2014, the FASB issued amended guidance for revenue recognition. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is effective commencing fiscal year 2019. The guidance allows for either a full retrospective or modified retrospective transition method. The Company currently expects to apply the full retrospective method upon adoption. This guidance will not impact recognition of revenue from salon service or product sales or recognition of continuing royalty revenues from franchisees, which are based on a percentage of franchise sales. Although the Company is in the process of finalizing the impact of adoption, including disclosures and the impact of the prior year restatements, it has determined that the timing of franchise fees and gift card breakage recognition will change. Under the new guidance, initial fees from franchisees will be recognized over the life of the related franchise agreements, approximately 10 years . In fiscal years 2018, 2017 and 2016, the Company recognized $8.5 , $4.3 and $4.5 million , respectively, of revenue related to initial fees from franchises, however under the new guidance these fees would have been deferred and recognized over approximately 10 years . Under the new standard, the Company will recognize gift card breakage proportional to redemptions in service and product revenue as opposed to the current classification as other income. The impact to net income related to gift card breakage is not expected to be material. Additionally, under current guidance, advertising fund contributions from franchisees and the related advertising expenditures are reported on a net basis in the Company's Consolidated Statement of Operations. Under the new guidance, the operations of the advertising funds will be included in the Company's Consolidated Statement of Operations. The impact will increase royalty and fee revenue and site operating expense, but is expected to have no impact on operating (loss) income. Intra-Entity Transfers Other Than Inventory In October 2016, the FASB issued guidance on the accounting for income tax effects of intercompany transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the assets have been sold to an outside party. The guidance is effective for the Company in the first quarter of fiscal year 2019, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated financial statements. Restricted Cash In November 2016, the FASB issued updated cash flow guidance requiring restricted cash and restricted cash equivalents to be included in the cash and cash equivalent balances in the statement of cash flows. Transfers between cash and cash equivalents and restricted cash will no longer be presented in the statement of cash flows and a reconciliation between the balance sheet and statement of cash flows must be disclosed. The guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on the Company's consolidated statement of cash flows. Statement of Cash Flows In August 2016, the FASB issued updated cash flow guidance clarifying cash flow classification and presentation for certain items. The guidance is effective for the Company beginning in the first quarter of fiscal year 2019, with early adoption permitted. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated statement of cash flows. |
BUSINESS DESCRIPTION AND SUMM25
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of costs associated with the SmartStyle salon restructuring | A summary of costs associated with the SmartStyle salon restructuring for fiscal year 2018 is as follows: Financial Line Item Fiscal Year 2018 (Dollars in thousands) Inventory reserves Cost of Service $ 656 Inventory reserves Cost of Product 586 Severance General and administrative 897 Long-lived fixed asset impairment Depreciation and amortization 5,460 Asset retirement obligation Depreciation and amortization 7,680 Lease termination and other related closure costs Rent 27,290 Deferred rent Rent (3,291 ) Total $ 39,278 |
DISCONTINUED OPERATIONS DISCONT
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedules of discontinued operations | The following summarizes the results of our discontinued operations for the periods presented: Fiscal Years 2018 2017 2016 (Dollars in thousands) Revenues $ 101,140 $ 423,427 $ 498,935 Loss from discontinued operations, before income taxes (59,545 ) (15,163 ) (5,732 ) Income tax benefit on discontinued operations 6,360 — — Equity in loss of affiliated companies, net of tax — (81 ) 3 Loss from discontinued operations, net of income taxes $ (53,185 ) $ (15,244 ) $ (5,729 ) |
OTHER FINANCIAL STATEMENT DATA
OTHER FINANCIAL STATEMENT DATA (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of additional information concerning selected balance sheet accounts | The following provides additional information concerning selected balance sheet accounts: June 30, 2018 2017 (Dollars in thousands) Other current assets: Prepaids $ 27,438 $ 27,802 Restricted cash 19,556 19,032 Other 873 1,280 $ 47,867 $ 48,114 Property and equipment: Land $ 3,864 $ 3,864 Buildings and improvements 48,265 47,471 Equipment, furniture and leasehold improvements 380,196 420,656 Internal use software 66,046 71,054 Equipment, furniture and leasehold improvements under capital leases 32,343 57,561 530,714 600,606 Less accumulated depreciation and amortization (393,958 ) (422,652 ) Less amortization of equipment, furniture and leasehold improvements under capital leases (30,896 ) (54,673 ) $ 105,860 $ 123,281 Accrued expenses: Payroll and payroll related costs $ 53,949 $ 59,192 Insurance 12,891 14,876 Other 30,790 36,367 $ 97,630 $ 110,435 Other noncurrent liabilities: Deferred income taxes $ 32,229 $ 108,187 Deferred rent 20,613 29,038 Insurance 25,804 26,112 Deferred benefits 13,377 17,302 Other 15,852 16,735 $ 107,875 $ 197,374 |
Schedule of additional information concerning other intangibles, net | The following provides additional information concerning other intangibles, net: June 30, 2018 2017 Weighted Average Amortization Periods (1) Cost (2) Accumulated Amortization (2) Net Weighted Average Amortization Periods (1) Cost (2) Accumulated Net (In years) (Dollars in thousands) (In years) (Dollars in thousands) Brand assets and trade names 31 $ 8,128 $ (4,260 ) $ 3,868 31 $ 8,187 $ (4,013 ) $ 4,174 Franchise agreements 19 9,763 (7,712 ) 2,051 19 9,832 (7,433 ) 2,399 Lease intangibles 20 13,997 (9,770 ) 4,227 20 14,007 (9,077 ) 4,930 Other 21 1,983 (1,572 ) 411 21 1,994 (1,532 ) 462 Total 22 $ 33,871 $ (23,314 ) $ 10,557 22 $ 34,020 $ (22,055 ) $ 11,965 _______________________________________________________________________________ (1) All intangible assets have been assigned an estimated finite useful life and are amortized on a straight-line basis over the number of years that approximate their expected period of benefit (ranging from three to 40 years ). (2) The change in the gross carrying value and accumulated amortization of other intangible assets is impacted by foreign currency. |
Schedule of future estimated amortization expense related to amortizable intangible assets | As of June 30, 2018 , future estimated amortization expense related to intangible assets is estimated to be: Fiscal Year (Dollars in thousands) 2019 $ 1,342 2020 1,342 2021 1,216 2022 1,169 2023 1,001 Thereafter 4,487 Total $ 10,557 |
Schedule of supplemental disclosures of cash flow activity | The following provides supplemental disclosures of cash flow activity: Fiscal Years 2018 2017 2016 (Dollars in thousands) Cash paid (received) for: Interest $ 7,022 $ 7,293 $ 7,660 Income taxes, net 2,397 2,314 2,237 Noncash investing activities: Unpaid capital expenditures 9,209 2,774 6,627 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The table below contains details related to the Company's goodwill: June 30, 2018 2017 Gross Carrying Value (2) Accumulated Impairment (1) Net Gross Accumulated Impairment (1) Net (Dollars in thousands) Goodwill $ 486,743 $ (74,100 ) $ 412,643 $ 491,087 $ (74,100 ) $ 416,987 _______________________________________________________________________________ (1) In fiscal year 2011 the Company realized a $74.1 million goodwill impairment loss associated with the Company-owned reporting unit (the previous North American Value reporting unit). (2) The change in the gross carrying value of goodwill relates to foreign currency translation adjustments. The table below contains details related to the Company's goodwill: Company-owned Franchise Consolidated (Dollars in thousands) Goodwill, net at June 30, 2016 $ 189,218 $ 228,175 $ 417,393 Translation rate adjustments (63 ) (76 ) (139 ) Derecognition related to sale of salon assets to franchisees (1) (267 ) — (267 ) Goodwill, net at June 30, 2017 188,888 228,099 416,987 Translation rate adjustments (201 ) (244 ) (445 ) Derecognition related to sale of salon assets to franchisees (1) (3,899 ) — (3,899 ) Goodwill, net at June 30, 2018 $ 184,788 $ 227,855 $ 412,643 _______________________________________________________________________________ (1) Goodwill is derecognized for salons sold to franchisees with positive cash flows. The amount of goodwill derecognized is determined by a fraction (the numerator of which is the trailing-twelve months EBITDA of the salon being sold and the denominator of which is the estimated annualized EBITDA of the Company-owned reporting unit) that is applied to the total goodwill balance of the Company-owned reporting unit. |
INVESTMENTS IN AFFILIATES (Tabl
INVESTMENTS IN AFFILIATES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments in and Advances to Affiliates [Abstract] | |
Schedule of equity method investments | The table below presents summarized financial information of equity method investees: Greater than 50 Percent Owned Fiscal Year 2018 2017 2016 (Dollars in thousands) Summarized Balance Sheet information: Current assets $ 40,990 $ 32,649 $ 46,733 Noncurrent assets 37,875 39,211 42,380 Current liabilities 21,897 18,385 18,160 Noncurrent liabilities 23,243 12,181 28,756 Summarized Statement of Operations information: Gross revenue $ 130,082 $ 125,486 $ 130,302 Gross profit 40,194 41,097 34,585 Operating (loss) income (2,239 ) (651 ) (5,857 ) Net (loss) income (2,551 ) (899 ) (5,551 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair values using Level 3 inputs | The following impairment charges were based on fair values using Level 3 inputs: Fiscal Year 2018 2017 2016 (Dollars in thousands) Long-lived assets (1) $ (11,092 ) $ (7,943 ) $ (7,057 ) Investment in EEG (2) — — (12,954 ) _____________________________ (1) See Note 1 to the Consolidated Financial Statements. (2) See Note 5 to the Consolidated Financial Statements. |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The following table contains details related to the Company's Senior Term Notes: June 30, 2018 2017 (Dollars in thousands) Principal amount on the Senior Term Notes $ — $ 123,000 Unamortized debt discount — (1,815 ) Unamortized debt issuance costs — (586 ) Senior Term Notes, net $ — $ 120,599 The Company's long-term debt consists of the following: Interest rate % Fiscal Years June 30, Maturity Dates 2018 2017 2018 2017 (fiscal year) (Dollars in thousands) Revolving credit facility, new 2023 3.34% —% $ 90,000 $ — Revolving credit facility, old N/A —% —% — — Senior term notes N/A 5.5% 5.5% — 120,599 $ 90,000 $ 120,599 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of total rent expense, excluding sublease rent expense | Total rent expense, excluding rent expense on premises subleased to franchisees, includes the following: Fiscal Years 2018 2017 2016 (Dollars in thousands) Minimum rent (1) $ 157,828 $ 154,417 $ 156,601 Percentage rent based on sales 4,324 4,058 4,337 Real estate taxes and other expenses 20,944 22,003 23,212 $ 183,096 $ 180,478 $ 184,150 _______________________________________________________________________________ (1) Fiscal year 2018 includes lease termination and other related closure costs of $27.3 million and a deferred rent benefit of $3.3 million related to the restructuring of the company-owned SmartStyle portfolio that occurred in January 2018. |
Schedule of future minimum lease payments under noncancelable operating leases | As of June 30, 2018 , future minimum lease payments (excluding percentage rents based on sales) due under existing noncancelable operating leases are as follows: Fiscal Year Corporate leases Franchisee leases (Dollars in thousands) 2019 $ 129,804 $ 102,406 2020 103,652 77,748 2021 71,993 56,186 2022 41,196 37,202 2023 17,723 20,215 Thereafter 7,735 22,617 Total minimum lease payments $ 372,103 $ 316,374 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of income (loss) before income taxes | The components of continuing operations (loss) income before income taxes are as follows: Fiscal Years 2018 2017 2016 (Dollars in thousands) (Loss) income before income taxes: U.S. $ (10,251 ) $ 4,652 $ 16,305 International 6,703 3,676 1,943 $ (3,548 ) $ 8,328 $ 18,248 |
Provision (benefit) for income taxes | The (benefit) provision for income taxes consists of: Fiscal Years 2018 2017 2016 (Dollars in thousands) Current: U.S. $ 2,151 $ 994 $ 819 International 1,894 268 1,207 Deferred: U.S. (69,350 ) 7,901 6,997 International (129 ) 61 26 $ (65,434 ) $ 9,224 $ 9,049 |
Provision for income taxes, reconciliation to applicable U.S. statutory rate | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to earnings (loss) before income taxes, as a result of the following: Fiscal Years 2018 2017 2016 U.S. statutory rate 28.0 % 35.0 % 35.0 % State income taxes, net of federal income tax benefit 37.6 6.9 3.9 Valuation allowance (1) 1,532.3 73.4 35.6 Foreign income taxes at other than U.S. rates (1.3 ) (3.9 ) (0.3 ) Officer life insurance (3.2 ) (5.6 ) (5.2 ) Work Opportunity and Welfare-to-Work Tax Credits 43.7 (19.1 ) (16.9 ) Deferred tax rate remeasurement 296.4 — — FIN48 - Uncertain tax positions (45.8 ) — — Stock-based compensation (45.4 ) 17.9 — Other, net (2) 2.0 6.2 (2.5 ) 1,844.3 % 110.8 % 49.6 % _______________________________________________________________________________ (1) See Note 1 to the Consolidated Financial Statements. (2) The 2.0% of Other, net in fiscal year 2018 does not include the rate impact of any items in excess of 5% of computed tax. |
Components of the net deferred tax assets and liabilities | The components of the net deferred tax assets and liabilities are as follows: June 30, 2018 2017 (Dollars in thousands) Deferred tax assets: Deferred rent $ 5,251 $ 13,581 Payroll and payroll related costs 14,083 24,519 Net operating loss carryforwards 41,570 28,378 Tax credit carryforwards 35,102 32,852 Inventories 1,103 1,930 Fixed assets 1,036 6,419 Accrued advertising 2,211 2,723 Insurance 1,893 4,153 Other 13,185 7,499 Subtotal $ 115,434 $ 122,054 Valuation allowance (67,912 ) (119,082 ) Total deferred tax assets $ 47,522 $ 2,972 Deferred tax liabilities: Goodwill and intangibles $ (72,670 ) $ (103,761 ) Other (7,081 ) (7,398 ) Total deferred tax liabilities $ (79,751 ) $ (111,159 ) Net deferred tax liability $ (32,229 ) $ (108,187 ) |
Unrecognized tax benefits | A rollforward of the unrecognized tax benefits is as follows: Fiscal Years 2018 2017 2016 (Dollars in thousands) Balance at beginning of period $ 1,388 $ 1,357 $ 1,496 Additions based on tax positions related to the current year 553 259 138 Additions based on tax positions of prior years 1,608 80 170 Reductions on tax positions related to the expiration of the statute of limitations (177 ) (179 ) (207 ) Settlements (345 ) (129 ) (240 ) Balance at end of period $ 3,027 $ 1,388 $ 1,357 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of deferred compensation | The table below presents the projected benefit obligation of these deferred compensation contracts in the Consolidated Balance Sheet: June 30, 2018 2017 (Dollars in thousands) Current portion (included in accrued liabilities) $ 1,960 $ 1,658 Long-term portion (included in other noncurrent liabilities) 4,342 5,163 $ 6,302 $ 6,821 |
Schedule of compensation expenses | Compensation expense included in income (loss) from continuing operations before income taxes and equity in loss of affiliated companies related to the aforementioned plans, excluding amounts paid for expenses and administration of the plans included the following: Fiscal Years 2018 2017 2016 (Dollars in thousands) Executive plans $ 135 $ 249 $ 289 ESPP 204 280 301 Deferred compensation contracts 578 514 402 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares | The computation of weighted average shares outstanding, assuming dilution, excluded the following stock-based awards as they were not dilutive under the treasury stock method: Fiscal Year 2018 2017 2016 Equity-based compensation awards 634,292 2,407,158 2,133,675 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted average fair values per stock-based compensation award granted | Using the fair value of each grant on the date of grant, the weighted average fair values per stock-based compensation award granted during fiscal years 2018 , 2017 and 2016 were as follows: 2018 2017 2016 SARs $ — $ 3.68 $ 3.51 RSAs & RSUs 13.43 11.73 11.18 PSUs 15.74 12.28 12.11 |
Schedule of assumptions used in determining estimated fair value of stock options, SARs and market-based RSUs granted | The significant assumptions used in determining the estimated fair value of SARs granted during fiscal years 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Risk-free interest rate N/A 1.99% 1.71% Expected term (in years) N/A 6.50 6.00 Expected volatility N/A 31.50% 30.00% Expected dividend yield N/A 0% 0% The significant assumptions used in determining the estimated fair value of the market-based awards granted during fiscal years 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Risk-free interest rate 1.66 - 2.59% 1.21% N/A Expected volatility 33.4 - 37.1% 36.5% N/A Expected dividend yield 0% 0% N/A |
Schedule of stock-based compensation expense | Stock-based compensation expense was as follows: 2018 2017 2016 SARs $ 2,252 $ 3,533 $ 2,774 RSAs, RSUs, & PSUs 6,017 9,609 7,023 Total stock-based compensation expense (recorded in G&A) 8,269 13,142 9,797 Less: Income tax benefit (1,736 ) — — Total stock-based compensation expense, net of tax $ 6,533 $ 13,142 $ 9,797 |
Schedule of activity for outstanding SARs and stock options | Activity for all of our outstanding SARs and stock options is as follows: Shares (in thousands) Weighted Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) SARs Stock Options Outstanding balance at June 30, 2017 2,884 54 $ 14.47 Granted — — — Forfeited/Expired (1,086 ) (39 ) 17.62 Exercised (280 ) — 12.96 Outstanding balance at June 30, 2018 1,518 15 $ 12.44 7.54 $ 6,617 Exercisable at June 30, 2018 451 15 $ 15.42 4.91 $ 848 Unvested awards, net of estimated forfeitures 1,066 — $ 13.05 7.60 $ 5,766 |
Schedule of activity for RSAs and RSUs | Activity for all of our RSUs is as follows: Shares/Units (in thousands) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands) RSUs Outstanding balance at June 30, 2017 809 $ 12.77 Granted 322 13.43 Forfeited (88 ) 13.40 Vested (338 ) 13.13 Outstanding balance at June 30, 2018 705 $ 12.82 $ 11,657 Vested at June 30, 2018 189 $ 14.42 $ 3,123 Unvested awards, net of estimated forfeitures 486 $ 12.16 $ 8,035 |
Schedule of activity for PSUs | Activity for all of our PSUs is as follows: Shares/Units (in thousands) Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (in thousands)(1) PSUs Outstanding balance at June 30, 2017 441 $ 12.74 Granted 176 15.74 Forfeited (166 ) 12.23 Vested (113 ) 15.23 Outstanding balance at June 30, 2018 338 $ 13.72 $ 5,589 Vested at June 30, 2018 — $ — $ — Unvested awards, net of estimated forfeitures 285 $ 13.38 $ 4,711 _______________________________________________________________________________ (1) Includes actual or expected payout rates as set forth in the performance criteria. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of accumulated other comprehensive income | The components of accumulated other comprehensive income are as follows: June 30, 2018 2017 2016 (Dollars in thousands) Foreign currency translation $ 8,580 $ 2,684 $ 4,573 Unrealized gain on deferred compensation contracts 988 652 495 Accumulated other comprehensive income $ 9,568 $ 3,336 $ 5,068 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of summarized financial information of reportable operating segments | Financial information concerning the Company's reportable operating segments is shown in the following table: For the Year Ended June 30, 2018 Company-owned Franchise Corporate (1) Consolidated (Dollars in thousands) Revenues: Service $ 899,051 $ — $ — $ 899,051 Product 204,963 53,703 — 258,666 Royalties and fees — 56,357 — 56,357 1,104,014 110,060 — 1,214,074 Operating expenses: Cost of service 530,582 — — 530,582 Cost of product 98,495 42,128 — 140,623 Site operating expenses 127,249 — — 127,249 General and administrative 67,163 25,880 81,002 174,045 Rent 181,869 269 958 183,096 Depreciation and amortization 48,508 365 9,332 58,205 Total operating expenses 1,053,866 68,642 91,292 1,213,800 Operating income (loss) 50,148 41,418 (91,292 ) 274 Other (expense) income: Interest expense — — (10,492 ) (10,492 ) Interest income and other, net — — 6,670 6,670 Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies $ 50,148 $ 41,418 $ (95,114 ) $ (3,548 ) For the Year Ended June 30, 2017 Company-owned Franchise Corporate (1) Consolidated (Dollars in thousands) Revenues: Service $ 960,347 $ — $ — $ 960,347 Product 229,199 30,623 — 259,822 Royalties and fees — 48,291 — 48,291 1,189,546 78,914 — 1,268,460 Operating expenses: Cost of service 610,384 — — 610,384 Cost of product 103,611 22,686 — 126,297 Site operating expenses 127,797 — — 127,797 General and administrative 47,673 21,222 88,440 157,335 Rent 179,463 171 844 180,478 Depreciation and amortization 42,273 357 9,458 52,088 Total operating expenses 1,111,201 44,436 98,742 1,254,379 Operating income (loss) 78,345 34,478 (98,742 ) 14,081 Other (expense) income: Interest expense — — (8,584 ) (8,584 ) Interest income and other, net — — 2,831 2,831 Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies $ 78,345 $ 34,478 $ (104,495 ) $ 8,328 For the Year Ended June 30, 2016 Company-owned Franchise Corporate (1) Consolidated (Dollars in thousands) Revenues: Service $ 978,614 $ — $ — $ 978,614 Product 234,390 31,406 — 265,796 Royalties and fees — 47,523 — 47,523 1,213,004 78,929 — 1,291,933 Operating expenses: Cost of service 608,965 — — 608,965 Cost of product 106,929 23,086 — 130,015 Site operating expenses 135,130 9 — 135,139 General and administrative 48,811 21,490 86,711 157,012 Rent 182,932 162 1,056 184,150 Depreciation and amortization 42,466 363 10,059 52,888 Total operating expenses 1,125,233 45,110 97,826 1,268,169 Operating income (loss) 87,771 33,819 (97,826 ) 23,764 Other (expense) income: Interest expense — — (9,229 ) (9,229 ) Interest income and other, net — — 3,713 3,713 Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies $ 87,771 $ 33,819 $ (103,342 ) $ 18,248 _______________________________________________________________________________ (1) Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with salon support, depreciation and amortization related to our corporate headquarters and unallocated insurance, benefit and compensation programs, including stock-based compensation. |
Schedule of total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate | Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows: June 30, 2018 2017 2016 Total Revenues Property and Equipment, Net Total Revenues Property and Equipment, Net Total Revenues Property and Equipment, Net (Dollars in thousands) U.S. $ 1,112,155 $ 102,528 $ 1,174,408 $ 119,649 $ 1,198,227 $ 146,722 Other countries 101,919 3,332 94,052 3,632 93,706 5,438 Total $ 1,214,074 $ 105,860 $ 1,268,460 $ 123,281 $ 1,291,933 $ 152,160 |
QUARTERLY FINANCIAL DATA (UNA39
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | Summarized quarterly data for fiscal years 2018 and 2017 follows: Quarter Ended September 30(a) December 31(b) March 31 June 30 (c) Year Ended (Dollars in thousands, except per share amounts) 2018 Revenues $ 309,873 $ 308,515 $ 300,801 $ 294,885 $ 1,214,074 Cost of service and product revenues, excluding depreciation and amortization 169,998 174,714 169,220 157,273 671,205 Operating income (loss) 16,736 (37,334 ) 5,884 14,988 274 Income from continuing operations 10,793 39,321 4,799 6,973 61,886 Loss from discontinued operations(d) (33,768 ) (6,601 ) (10,605 ) (2,211 ) (53,185 ) Net (loss) income (22,975 ) 32,720 (5,806 ) 4,762 8,701 Income from continuing operations per share, basic(g) 0.23 0.84 0.10 0.15 1.33 Loss from discontinued operations per share, basic (0.72 ) (0.14 ) (0.23 ) (0.05 ) (1.14 ) Net (loss) income per share, basic(g) (0.49 ) 0.70 (0.12 ) 0.10 0.19 Income from continuing operations per share, diluted(g) 0.23 0.83 0.10 0.15 1.32 Loss from discontinued operations per share, diluted (0.72 ) (0.14 ) (0.22 ) (0.05 ) (1.13 ) Net (loss) income per share, diluted(g) (0.49 ) 0.69 (0.12 ) 0.10 0.18 Quarter Ended September 30 December 31 March 31(e) June 30(f) Year Ended (Dollars in thousands, except per share amounts) 2017 Revenues $ 318,831 $ 315,249 $ 313,478 $ 320,902 $ 1,268,460 Cost of service and product revenues, excluding depreciation and amortization 181,612 185,777 183,997 185,295 736,681 Operating income (loss) 10,316 2,402 (6,214 ) 7,577 14,081 Income (loss) from continuing operations 5,740 982 (11,840 ) 4,222 (896 ) Loss from discontinued operations(d) (2,459 ) (3,201 ) (6,615 ) (2,969 ) (15,244 ) Net income (loss) 3,281 (2,219 ) (18,455 ) 1,253 (16,140 ) Loss from continuing operations per share, basic and diluted(g) 0.12 0.02 (0.26 ) 0.09 (0.02 ) Loss from discontinued operations per share, basic and diluted(g) (0.05 ) (0.07 ) (0.14 ) (0.06 ) (0.33 ) Net income (loss) per share, basic and diluted 0.07 (0.05 ) (0.40 ) 0.03 (0.35 ) _______________________________________________________________________________ (a) During the first quarter of fiscal year 2018, the Company recorded $33.8 million of one-time asset impairments and other non-recurring costs associated with the October 2017 sale of substantially all of its North American mall-based salons and its UK business. These impairments and costs and the result of operations for the salons sold, were classified in discontinued operations. Results of operations for the North American mall-based business and the UK have been classified as a discontinued operation for all periods presented. (b) During the second quarter of fiscal year 2018, the Company recorded $68.9 million of non-cash, one-time, tax benefits related to the enactment of the Tax Cuts and Jobs Act ("Tax Reform"), partially offset by $37.6 million of one-time lease termination and other non-recurring costs associated with the recently announced restructuring of the Company's SmartStyle® salon portfolio, and $3.5 million of other one-time costs. (c) During the fourth quarter of fiscal year 2018, the Company identified and recorded $2.0 million in non-cash fixed asset impairment charges within discontinued operations. These fixed asset impairment charges should have been recorded in the first quarter of fiscal year 2018. Because this error was not material to the period in which it originated or the fourth quarter, the Company corrected it in the fourth quarter of fiscal year 2018. (d) In October 2017, the Company sold substantially all of its mall-based salon business in North America and International segment to The Bea utiful Group ("TBG"). T he Company classified the results of its mall-based business and its International segment as a discontinued operation for all periods presented in the Condensed Consolidated Statement of Operations. (e) During the third quarter of fiscal year 2017, the Company recorded $7.9 million of severance expense related to the termination of former executive officers including the Company's Chief Executive Officer. (f) During the fourth quarter of fiscal year 2017, the Company recorded $5.3 million for a one-time inventory expense related to salon tools. (g) Total is an annual recalculation; line items calculated quarterly may not sum to total. |
BUSINESS DESCRIPTION AND SUMM40
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Business Description (Details) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017salonsegment | Jun. 30, 2018segment | Jun. 30, 2017segment | Oct. 31, 2017salon | |
Variable interest entities | ||||
Number of reportable segments | segment | 2 | 2 | 4 | |
Facility Closing | North America | ||||
Variable interest entities | ||||
Number of stores | 858 | 858 | ||
Facility Closing | UNITED KINGDOM | ||||
Variable interest entities | ||||
Number of stores | 250 | 250 |
BUSINESS DESCRIPTION AND SUMM41
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Costs Associated with the SmartStyle Salon Restructuring (Details) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jan. 31, 2018salon | |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of assets | $ 11,092 | $ 11,366 | $ 10,478 | |
Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory reserves, Cost of Service | 656 | |||
Inventory reserves, Cost of Product | 586 | |||
Severance | 897 | |||
Impairment of assets | 5,460 | |||
Asset retirement obligation | 7,680 | |||
Lease termination and other related closure costs | 27,290 | |||
Deferred rent | (3,291) | |||
Total | 39,278 | |||
Restructuring charges | $ 1,900 | |||
SmartStyle Salons | Company-owned | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores | salon | 597 |
BUSINESS DESCRIPTION AND SUMM42
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entities (Details) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018USD ($)memberVIE | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Variable interest entities | ||||
Total assets | $ 856,735 | $ 1,011,488 | ||
Total liabilities | 353,243 | 503,267 | ||
Total shareholders' equity | $ 503,492 | 508,221 | $ 519,401 | $ 627,444 |
Empire Education Group Inc | ||||
Variable interest entities | ||||
Ownership percentage in equity method investee | 51.00% | |||
Number of members appointed to board of directors by investee | member | 4 | |||
Number of board of directors members | member | 5 | |||
Roosters | ||||
Variable interest entities | ||||
Number of variable interest entities | VIE | 1 | |||
Ownership interest percentage | 84.00% | |||
Total assets | $ 8,300 | |||
Total liabilities | 600 | |||
Total shareholders' equity | 7,700 | |||
Net income attributable to noncontrolling interest | 0 | 0 | $ 0 | |
Shareholders' equity attributable to the noncontrolling interest | $ 1,000 | $ 900 |
BUSINESS DESCRIPTION AND SUMM43
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Receivables and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | |||
Cash surrender value of life insurance | $ 24,600 | ||
Receivables and Allowance for Doubtful Accounts | |||
Allowance for doubtful accounts | 1,200 | $ 800 | $ 1,300 |
Activity in allowance for doubtful accounts | $ 0 | $ 0 | $ 0 |
BUSINESS DESCRIPTION AND SUMM44
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property and Equipment: | |||
Depreciation expense | $ 38.1 | $ 42.7 | $ 44.4 |
Buildings | Minimum | |||
Property and Equipment: | |||
Estimated useful asset lives | 30 years | ||
Buildings | Maximum | |||
Property and Equipment: | |||
Estimated useful asset lives | 39 years | ||
Improvements | |||
Property and Equipment: | |||
Estimated useful asset lives | 10 years | ||
Equipment | Minimum | |||
Property and Equipment: | |||
Estimated useful asset lives | 3 years | ||
Equipment | Maximum | |||
Property and Equipment: | |||
Estimated useful asset lives | 10 years | ||
Furniture | Minimum | |||
Property and Equipment: | |||
Estimated useful asset lives | 3 years | ||
Furniture | Maximum | |||
Property and Equipment: | |||
Estimated useful asset lives | 10 years | ||
Software | Minimum | |||
Property and Equipment: | |||
Estimated useful asset lives | 3 years | ||
Software | Maximum | |||
Property and Equipment: | |||
Estimated useful asset lives | 10 years | ||
Capitalized software | Minimum | |||
Property and Equipment: | |||
Estimated useful asset lives | 5 years | ||
Capitalized software | Maximum | |||
Property and Equipment: | |||
Estimated useful asset lives | 7 years |
BUSINESS DESCRIPTION AND SUMM45
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-Lived Asset Impairment Assessments, Excluding Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Impairment of assets | $ 11,092 | $ 11,366 | $ 10,478 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Segment Reporting Information [Line Items] | |||
Impairment of assets | $ 11,092 | $ 7,943 | $ 7,057 |
BUSINESS DESCRIPTION AND SUMM46
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)reporting_unit | Mar. 31, 2017reporting_unit | Jun. 30, 2018USD ($)reporting_unit | Jun. 30, 2017USD ($)reporting_unit | Jun. 30, 2016USD ($) | |
Goodwill [Line Items] | |||||
Goodwill | $ 416,987,000 | $ 412,643,000 | $ 416,987,000 | $ 417,393,000 | |
Number of reporting units | reporting_unit | 3 | 2 | 2 | 4 | |
North American Value | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 188,900,000 | $ 184,800,000 | $ 188,900,000 | ||
Goodwill impairment | 0 | ||||
Franchise | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 228,099,000 | 227,855,000 | $ 228,099,000 | $ 228,175,000 | |
North American Premium | |||||
Goodwill [Line Items] | |||||
Goodwill | 0 | ||||
International salons | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 0 | ||||
Measurement Input, Headroom Percent | |||||
Goodwill [Line Items] | |||||
Reporting unit value, measurement input | 0.24 | ||||
Decrease in headroom percent per 100 basis point increase in weighted average cost of capital | 0.17 | ||||
Measurement Input, Assumed Control Premium | |||||
Goodwill [Line Items] | |||||
Reporting unit value, measurement input | 0.200 |
BUSINESS DESCRIPTION AND SUMM47
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Affiliates (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |
Equity losses | $ 1.8 |
Impairment charge | $ 13 |
BUSINESS DESCRIPTION AND SUMM48
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Self-Insurance Accruals, Deferred Rent and Rent Expense, Shipping and Handling Costs (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018USD ($)renewal_perioditem | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Self-Insurance Accruals | |||
Decrease in self-insurance expense due to change in estimates related to prior year open policy periods | $ 1.2 | $ 1.6 | $ 1 |
Number of times the entity updates loss projections each year | item | 4 | ||
Self-insurance accruals, current | $ 10.3 | 12.4 | |
Self-insurance accruals, noncurrent | $ 25.8 | 26.1 | |
Deferred Rent and Rent Expense | |||
Number of renewal periods | renewal_period | 1 | ||
Shipping and Handling | |||
Shipping and Handling Costs: | |||
Costs of goods sold | $ 6.1 | $ 3.7 | $ 3.6 |
BUSINESS DESCRIPTION AND SUMM49
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising, Income Taxes, Foreign Currency Translation, Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Advertising | |||
Advertising costs | $ 36,600 | $ 30,300 | $ 30,000 |
Advertising Funds | |||
Total contributions to franchise brand advertising funds | 16,900 | 17,200 | 17,500 |
Advertising funds, assets | 23,800 | 21,700 | |
Advertising funds, liabilities | 23,800 | 21,700 | |
Income Taxes | |||
Valuation allowance | 67,912 | 119,082 | |
Tax act, provisional income tax benefit | 68,100 | ||
Foreign Currency Translation | |||
Foreign currency (loss) gain | (100) | 100 | 100 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cumulative foreign currency translation | 6,152 | $ 0 | $ 0 |
Mall-Based Salons and International Segment | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cumulative foreign currency translation | $ 6,200 |
BUSINESS DESCRIPTION AND SUMM50
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Standards Adopted by the Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Life of franchise agreements | 10 years | 10 years | |||||||||
Revenues | $ 294,885 | $ 300,801 | $ 308,515 | $ 309,873 | $ 320,902 | $ 313,478 | $ 315,249 | $ 318,831 | $ 1,214,074 | $ 1,268,460 | $ 1,291,933 |
Franchise | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Revenues | $ 8,500 | $ 4,300 | $ 4,500 |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($)salon | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Oct. 31, 2017salon | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
(Loss) income from discontinued operations, net of income taxes | $ (2,211) | $ (10,605) | $ (6,601) | $ (33,768) | $ (2,969) | $ (6,615) | $ (3,201) | $ (2,459) | $ (53,185) | $ (15,244) | $ (5,729) | |
Asset impairment charges | 38,826 | 0 | 0 | |||||||||
Cumulative foreign currency translation | 6,152 | 0 | 0 | |||||||||
North America | Facility Closing | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Number of stores | salon | 858 | 858 | ||||||||||
UNITED KINGDOM | Facility Closing | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Number of stores | salon | 250 | 250 | ||||||||||
Discontinued Operations, Disposed of by Sale | Mall-Based Salons and International Segment | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Working capital and prepaid rent | $ 11,700 | |||||||||||
(Loss) income from discontinued operations, net of income taxes | (53,185) | (15,244) | (5,729) | |||||||||
Asset impairment charges | 43,000 | |||||||||||
Cumulative foreign currency translation | 6,200 | |||||||||||
Loss from operations | 3,600 | |||||||||||
Professional fees | 6,800 | |||||||||||
Income tax benefit on discontinued operations | 6,360 | 0 | 0 | |||||||||
Asset impairments | $ 3,400 | $ 3,400 | ||||||||||
Restatement Adjustment | Discontinued Operations, Disposed of by Sale | Mall-Based Salons and International Segment | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Accounts receivable | 8,000 | 8,000 | ||||||||||
Other assets | $ 8,000 | $ 8,000 |
DISCONTINUED OPERATIONS - Sched
DISCONTINUED OPERATIONS - Schedules of discontinued operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss from discontinued operations, net of income taxes | $ (2,211) | $ (10,605) | $ (6,601) | $ (33,768) | $ (2,969) | $ (6,615) | $ (3,201) | $ (2,459) | $ (53,185) | $ (15,244) | $ (5,729) |
Mall-Based Salons and International Segment | Discontinued Operations, Disposed of by Sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | 101,140 | 423,427 | 498,935 | ||||||||
Loss from discontinued operations, before income taxes | (59,545) | (15,163) | (5,732) | ||||||||
Income tax benefit on discontinued operations | 6,360 | 0 | 0 | ||||||||
Equity in loss of affiliated companies, net of tax | 0 | (81) | 3 | ||||||||
Loss from discontinued operations, net of income taxes | $ (53,185) | $ (15,244) | $ (5,729) |
OTHER FINANCIAL STATEMENT DAT53
OTHER FINANCIAL STATEMENT DATA - Schedule of Additional Information Concerning Selected Balance Sheet Accounts (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Other current assets: | |||
Prepaids | $ 27,438 | $ 27,802 | |
Restricted cash | 19,556 | 19,032 | |
Other | 873 | 1,280 | |
Other current assets | 47,867 | 48,114 | |
Property and equipment: | |||
Equipment, furniture and leasehold improvements under capital leases | 32,343 | 57,561 | |
Property and equipment, gross | 530,714 | 600,606 | |
Less accumulated depreciation and amortization | (393,958) | (422,652) | |
Less amortization of equipment, furniture and leasehold improvements under capital leases | (30,896) | (54,673) | |
Property and equipment, net | 105,860 | 123,281 | $ 152,160 |
Accrued expenses: | |||
Payroll and payroll related costs | 53,949 | 59,192 | |
Insurance | 12,891 | 14,876 | |
Other | 30,790 | 36,367 | |
Accrued expenses | 97,630 | 110,435 | |
Other noncurrent liabilities: | |||
Deferred income taxes | 32,229 | 108,187 | |
Deferred rent | 20,613 | 29,038 | |
Insurance | 25,804 | 26,112 | |
Deferred benefits | 13,377 | 17,302 | |
Other | 15,852 | 16,735 | |
Other noncurrent liabilities | 107,875 | 197,374 | |
Land | |||
Property and equipment: | |||
Property and equipment, excluding capital leased assets, gross | 3,864 | 3,864 | |
Buildings and improvements | |||
Property and equipment: | |||
Property and equipment, excluding capital leased assets, gross | 48,265 | 47,471 | |
Equipment, furniture and leasehold improvements | |||
Property and equipment: | |||
Property and equipment, excluding capital leased assets, gross | 380,196 | 420,656 | |
Internal use software | |||
Property and equipment: | |||
Property and equipment, excluding capital leased assets, gross | $ 66,046 | $ 71,054 |
OTHER FINANCIAL STATEMENT DAT54
OTHER FINANCIAL STATEMENT DATA - Schedule of Additional Information Concerning Other Intangibles, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Amortized intangible assets: | ||
Weighted Average Amortization Periods | 22 years | 22 years |
Cost | $ 33,871 | $ 34,020 |
Accumulated Amortization | (23,314) | (22,055) |
Total | $ 10,557 | $ 11,965 |
Minimum | ||
Amortized intangible assets: | ||
Weighted Average Amortization Periods | 3 years | |
Maximum | ||
Amortized intangible assets: | ||
Weighted Average Amortization Periods | 40 years | |
Brand assets and trade names | ||
Amortized intangible assets: | ||
Weighted Average Amortization Periods | 31 years | 31 years |
Cost | $ 8,128 | $ 8,187 |
Accumulated Amortization | (4,260) | (4,013) |
Total | $ 3,868 | $ 4,174 |
Franchise agreements | ||
Amortized intangible assets: | ||
Weighted Average Amortization Periods | 19 years | 19 years |
Cost | $ 9,763 | $ 9,832 |
Accumulated Amortization | (7,712) | (7,433) |
Total | $ 2,051 | $ 2,399 |
Lease intangibles | ||
Amortized intangible assets: | ||
Weighted Average Amortization Periods | 20 years | 20 years |
Cost | $ 13,997 | $ 14,007 |
Accumulated Amortization | (9,770) | (9,077) |
Total | $ 4,227 | $ 4,930 |
Other | ||
Amortized intangible assets: | ||
Weighted Average Amortization Periods | 21 years | 21 years |
Cost | $ 1,983 | $ 1,994 |
Accumulated Amortization | (1,572) | (1,532) |
Total | $ 411 | $ 462 |
OTHER FINANCIAL STATEMENT DAT55
OTHER FINANCIAL STATEMENT DATA - Schedule of Intangible Asset Amortization Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Total amortization expense related to amortizable intangible assets | $ 1,400 | $ 1,400 | $ 1,400 |
Future estimated amortization expense related to amortizable intangible assets | |||
2,019 | 1,342 | ||
2,020 | 1,342 | ||
2,021 | 1,216 | ||
2,022 | 1,169 | ||
2,023 | 1,001 | ||
Thereafter | 4,487 | ||
Total | $ 10,557 | $ 11,965 |
OTHER FINANCIAL STATEMENT DAT56
OTHER FINANCIAL STATEMENT DATA - Supplementary Cash Flow Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash paid (received) for: | |||
Interest | $ 7,022 | $ 7,293 | $ 7,660 |
Income taxes, net | 2,397 | 2,314 | 2,237 |
Noncash investing activities: | |||
Unpaid capital expenditures | $ 9,209 | $ 2,774 | $ 6,627 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2011 |
Goodwill [Line Items] | ||||
Gross Carrying Value | $ 486,743 | $ 491,087 | ||
Accumulated Impairment | (74,100) | (74,100) | ||
Net | 412,643 | 416,987 | $ 417,393 | |
North American Value | ||||
Goodwill [Line Items] | ||||
Accumulated Impairment | $ (74,100) | |||
Net | $ 184,800 | $ 188,900 |
GOODWILL - Additional Schedule
GOODWILL - Additional Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, net at beginning of period | $ 416,987 | $ 417,393 |
Translation rate adjustments | (445) | (139) |
Derecognition related to venditioned salons | (3,899) | (267) |
Goodwill, net at end of period | 412,643 | 416,987 |
Company-owned | ||
Goodwill [Roll Forward] | ||
Goodwill, net at beginning of period | 188,888 | 189,218 |
Translation rate adjustments | (201) | (63) |
Derecognition related to venditioned salons | (3,899) | (267) |
Goodwill, net at end of period | 184,788 | 188,888 |
Franchise | ||
Goodwill [Roll Forward] | ||
Goodwill, net at beginning of period | 228,099 | 228,175 |
Translation rate adjustments | (244) | (76) |
Derecognition related to venditioned salons | 0 | 0 |
Goodwill, net at end of period | $ 227,855 | $ 228,099 |
INVESTMENTS IN AFFILIATES - Sch
INVESTMENTS IN AFFILIATES - Schedule of equity method investments (Details) - Empire Education Group Inc - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summarized Balance Sheet information: | |||
Current assets | $ 40,990 | $ 32,649 | $ 46,733 |
Noncurrent assets | 37,875 | 39,211 | 42,380 |
Current liabilities | 21,897 | 18,385 | 18,160 |
Noncurrent liabilities | 23,243 | 12,181 | 28,756 |
Summarized Statement of Operations information: | |||
Gross revenue | 130,082 | 125,486 | 130,302 |
Gross profit | 40,194 | 41,097 | 34,585 |
Operating (loss) income | (2,239) | (651) | (5,857) |
Net (loss) income | $ (2,551) | $ (899) | $ (5,551) |
INVESTMENTS IN AFFILIATES - Add
INVESTMENTS IN AFFILIATES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investments in and Advances to Affiliates [Line Items] | |||
Impairment charge | $ 13,000 | ||
Equity losses | 1,800 | ||
Proceeds from sale of investment | $ 0 | $ 500 | 0 |
Empire Education Group Inc | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage in equity method investee | 54.60% | ||
Impairment charge | 13,000 | ||
Equity losses | $ 1,800 | ||
MY Style | |||
Investments in and Advances to Affiliates [Line Items] | |||
Ownership percentage in cost-method investee | 27.10% | ||
Proceeds from sale of investment | $ 500 | ||
Foreign currency translation loss | 400 | ||
Gain on sale of investment | $ 200 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Fair Value Disclosures [Abstract] | ||
Debt, fair value | $ 90,000 | $ 125,900 |
Long-term debt | $ 90,000 | 120,599 |
Long-term debt, gross | 123,000 | |
Unamortized discount | 1,800 | |
Unamortized debt issuance costs | $ 600 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Impairments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets | $ (11,092) | $ (11,366) | $ (10,478) |
Impairment charge | (13,000) | ||
Empire Education Group Inc | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | (13,000) | ||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets | (11,092) | (7,943) | (7,057) |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Empire Education Group Inc | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment charge | $ 0 | $ 0 | $ (12,954) |
FINANCING ARRANGEMENTS - Schedu
FINANCING ARRANGEMENTS - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 90,000 | $ 120,599 | |
Line of Credit | Revolving Credit Facility, March 2018 | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate % | 3.34% | 0.00% | |
Long-term debt | $ 90,000 | $ 0 | |
Line of Credit | Revolving Credit Facility, June 2011 | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate % | 0.00% | 0.00% | |
Long-term debt | $ 0 | $ 0 | |
Senior Notes | Senior term notes | |||
Debt Instrument [Line Items] | |||
Interest rate % | 5.50% | 5.50% | 5.50% |
Long-term debt | $ 0 | $ 120,599 |
FINANCING ARRANGEMENTS - Revolv
FINANCING ARRANGEMENTS - Revolving Credit Facility (Details) - USD ($) | 1 Months Ended | ||||
Apr. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Feb. 28, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 90,000,000 | $ 120,599,000 | |||
Revolving Credit Facility, March 2018 | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 295,000,000 | $ 260,000,000 | |||
Debt term | 5 years | ||||
Increase limit for revolving credit commitments | $ 150,000,000 | ||||
Increase limit credit facility | $ 35,000,000 | ||||
Long-term debt | 90,000,000 | 0 | |||
Revolving credit facility remaining borrowing capacity | 203,500,000 | ||||
Revolving Credit Facility, March 2018 | Line of Credit | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 30,000,000 | ||||
Long-term debt | 1,500,000 | ||||
Revolving Credit Facility, March 2018 | Line of Credit | Swingline Loan | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 30,000,000 | ||||
Revolving Credit Facility, June 2011 | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | 0 | |||
Revolving credit facility remaining borrowing capacity | $ 198,500,000 | ||||
Debt instrument face amount | $ 200,000,000 | ||||
Interest expense | $ 100,000 | ||||
Long-term line of credit | 0 | ||||
Revolving Credit Facility, June 2011 | Line of Credit | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Long-term line of credit | $ 1,500,000 | ||||
Minimum | Revolving Credit Facility, March 2018 | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Facility fee (as a percent) | 0.25% | ||||
Maximum | Revolving Credit Facility, March 2018 | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Facility fee (as a percent) | 0.40% | ||||
London Interbank Offered Rate (LIBOR) | Minimum | Revolving Credit Facility, March 2018 | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread (as a percent) | 1.25% | ||||
London Interbank Offered Rate (LIBOR) | Maximum | Revolving Credit Facility, March 2018 | Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread (as a percent) | 1.85% |
FINANCING ARRANGEMENTS - Sche65
FINANCING ARRANGEMENTS - Schedule of Senior Term Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Principal amount on the Senior Term Notes | $ 123,000 | |||
Unamortized debt discount | (1,800) | |||
Unamortized debt issuance costs | (600) | |||
Senior Term Notes, net | $ 90,000 | $ 120,599 | ||
Senior Notes | Senior term notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate % | 5.50% | 5.50% | 5.50% | 5.50% |
Repurchase amount | $ 124,200 | $ 124,200 | ||
Unamortized premium | 1,200 | 1,200 | ||
Repayments of debt | 34,200 | |||
Interest expense | $ 1,700 | |||
Principal amount on the Senior Term Notes | $ 0 | $ 123,000 | ||
Unamortized debt discount | 0 | (1,815) | ||
Unamortized debt issuance costs | 0 | (586) | ||
Senior Term Notes, net | $ 0 | $ 120,599 | ||
Revolving Credit Facility | Line of Credit | Revolving Credit Facility, March 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest rate % | 3.34% | 0.00% | ||
Proceeds from lines of credit | $ 90,000 | |||
Senior Term Notes, net | $ 90,000 | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Leased Assets [Line Items] | |||
Operating leases for subleased franchise salons, term | 5 years | ||
Sublease income | $ 34 | $ 31.5 | $ 31.4 |
Rent expense on premises subleased to franchisees | $ 33.6 | 31.1 | 30.9 |
Sublease arrangements mark-up (as a percent) | 10.00% | ||
Net rental income from sublease arrangements | $ 0.4 | $ 0.4 | $ 0.5 |
Leased Building with Sublease Arrangement | |||
Operating Leased Assets [Line Items] | |||
Future minimum payments due | $ 3.5 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating leases term | 1 year | ||
Operating leases typical renewal term | 5 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating leases term | 20 years | ||
Operating leases typical renewal term | 10 years |
COMMITMENTS AND CONTINGENCIES67
COMMITMENTS AND CONTINGENCIES - Schedule of Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Minimum rent | $ 157,828 | $ 154,417 | $ 156,601 |
Percentage rent based on sales | 4,324 | 4,058 | 4,337 |
Real estate taxes and other expenses | 20,944 | 22,003 | 23,212 |
Rent expenses | 183,096 | $ 180,478 | $ 184,150 |
Facility Closing | |||
Restructuring Cost and Reserve [Line Items] | |||
Lease termination and other related closure costs | 27,290 | ||
Deferred rent | $ (3,291) |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Corporate leases | |
Operating Leased Assets [Line Items] | |
2,019 | $ 129,804 |
2,020 | 103,652 |
2,021 | 71,993 |
2,022 | 41,196 |
2,023 | 17,723 |
Thereafter | 7,735 |
Total minimum lease payments | 372,103 |
Franchisee leases | |
Operating Leased Assets [Line Items] | |
2,019 | 102,406 |
2,020 | 77,748 |
2,021 | 56,186 |
2,022 | 37,202 |
2,023 | 20,215 |
Thereafter | 22,617 |
Total minimum lease payments | $ 316,374 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
(Loss) income before income taxes: | |||
U.S. | $ (10,251) | $ 4,652 | $ 16,305 |
International | 6,703 | 3,676 | 1,943 |
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies | $ (3,548) | $ 8,328 | $ 18,248 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | |||
U.S. | $ 2,151 | $ 994 | $ 819 |
International | 1,894 | 268 | 1,207 |
Deferred: | |||
U.S. | (69,350) | 7,901 | 6,997 |
International | (129) | 61 | 26 |
Provision (benefit) for income taxes | $ (65,434) | $ 9,224 | $ 9,049 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Provision for income taxes reconciliation | |||
U.S. statutory rate | 28.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 37.60% | 6.90% | 3.90% |
Valuation allowance | 1532.30% | 73.40% | 35.60% |
Foreign income taxes at other than U.S. rates | (1.30%) | (3.90%) | (0.30%) |
Officer life insurance | (3.20%) | (5.60%) | (5.20%) |
Work Opportunity and Welfare-to-Work Tax Credits | 43.70% | (19.10%) | (16.90%) |
Deferred tax rate remeasurement | 296.40% | 0.00% | 0.00% |
FIN48 - Uncertain tax positions | (45.80%) | 0.00% | 0.00% |
Stock-based compensation | (45.40%) | 17.90% | 0.00% |
Other, net | 2.00% | 6.20% | (2.50%) |
Total (as a percent) | 1844.30% | 110.80% | 49.60% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes | |||
Other income tax rate reconciling items (as a percent) | 2.00% | 6.20% | (2.50%) |
Rate impact of meals and entertainment expense disallowance (as a percent) | 4.50% | ||
Rate impact of charitable contributions (as a percent) | 7.10% | ||
Rate impact of miscellaneous items (as a percent) | (5.40%) | ||
Tax act, provisional income tax benefit | $ 68.1 | ||
Tax act, release of valuation allowance | 30.5 | ||
Tax act, tax benefit for deferred tax remeasurement | 37.6 | ||
Tax credit carryforward amount subject to expiration | 35.1 | ||
Undistributed earnings of international subsidiaries | 14.5 | ||
Reserve on unrecognized tax benefits that would benefit the effective tax rate | 2.4 | ||
Interest and penalties | 0.1 | $ 0.1 | $ 0.1 |
Accrued interest and penalties related to unrecognized tax benefits | 1.2 | ||
Expiring from 2030 to 2038 | |||
Income Taxes | |||
Tax credit carryforward amount subject to expiration | 33.1 | ||
Expiring from 2020 to 2028 | |||
Income Taxes | |||
Tax credit carryforward amount subject to expiration | 0.5 | ||
Tax Credit Carryforward, Without Expiration | |||
Income Taxes | |||
Tax credit carryforward amount subject to expiration | 1.5 | ||
Domestic Tax Authority | |||
Income Taxes | |||
Operating loss carryforwards | 28.2 | ||
State Tax Authority | |||
Income Taxes | |||
Operating loss carryforwards | 12.7 | ||
Foreign Tax Authority | Canada Revenue Agency | |||
Income Taxes | |||
Operating loss carryforwards | 0.5 | ||
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | |||
Income Taxes | |||
Operating loss carryforwards | $ 0.2 |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Deferred rent | $ 5,251 | $ 13,581 |
Payroll and payroll related costs | 14,083 | 24,519 |
Net operating loss carryforwards | 41,570 | 28,378 |
Tax credit carryforwards | 35,102 | 32,852 |
Inventories | 1,103 | 1,930 |
Fixed assets | 1,036 | 6,419 |
Accrued advertising | 2,211 | 2,723 |
Insurance | 1,893 | 4,153 |
Other | 13,185 | 7,499 |
Subtotal | 115,434 | 122,054 |
Valuation allowance | (67,912) | (119,082) |
Total deferred tax assets | 47,522 | 2,972 |
Deferred tax liabilities: | ||
Goodwill and intangibles | (72,670) | (103,761) |
Other | (7,081) | (7,398) |
Total deferred tax liabilities | (79,751) | (111,159) |
Net deferred tax liability | $ (32,229) | $ (108,187) |
INCOME TAXES - Rollforward of U
INCOME TAXES - Rollforward of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Rollforward of unrecognized tax benefits | |||
Balance at beginning of period | $ 1,388 | $ 1,357 | $ 1,496 |
Additions based on tax positions related to the current year | 553 | 259 | 138 |
Additions based on tax positions of prior years | 1,608 | 80 | 170 |
Reductions on tax positions related to the expiration of the statute of limitations | (177) | (179) | (207) |
Settlements | (345) | (129) | (240) |
Balance at end of period | $ 3,027 | $ 1,388 | $ 1,357 |
BENEFIT PLANS - Regis Retiremen
BENEFIT PLANS - Regis Retirement Savings Plan (Details) - Other Postretirement Benefit Plan - Regis Retirement Savings Plan | 12 Months Ended |
Jun. 30, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |
Eligibility age to participate in 401(k) plan | 18 years |
Service period for eligibility to participation in 401(k) plan | 1 month |
Minimum period of eligible service to participate in the plan | 1 year |
Minimum eligibility service hours | 1000 hours |
Percentage of noncontributory defined contribution component vested after completing two years of service | 20.00% |
Percentage of noncontributory defined contribution component vesting after each additional year of service | 20.00% |
Period after which noncontributory defined contribution component becomes fully vested | 6 years |
BENEFIT PLANS - Nonqualified De
BENEFIT PLANS - Nonqualified Deferred Salary Plan (Details) - Deferred Profit Sharing | 12 Months Ended |
Jun. 30, 2018 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |
Percentage of noncontributory defined contribution component vested after completing two years of service | 20.00% |
Minimum period of eligible service to participate in the plan | 2 years |
Percentage of noncontributory defined contribution component vesting after each additional year of service | 20.00% |
Period after which noncontributory defined contribution component becomes fully vested | 6 years |
BENEFIT PLANS - Stock Purchase
BENEFIT PLANS - Stock Purchase Plan (Details) - Employee Stock - Stock Purchase Plan (ESPP) $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employer contribution as percent of stock purchase price | 15.00% |
Employer contribution to plan, maximum | $ 11.8 |
Cumulative employer contribution to plan | $ 10.8 |
BENEFIT PLANS - Schedule of Pro
BENEFIT PLANS - Schedule of Projected Benefit Obligation (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long-term portion (included in other noncurrent liabilities) | $ 13,377 | $ 17,302 |
Deferred Compensation Contracts | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total current and noncurrent portion | 6,302 | 6,821 |
Deferred Compensation Contracts | Accrued Liabilities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Current portion (included in accrued liabilities) | 1,960 | 1,658 |
Deferred Compensation Contracts | Other Noncurrent Liabilities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long-term portion (included in other noncurrent liabilities) | $ 4,342 | $ 5,163 |
BENEFIT PLANS - Deferred Compen
BENEFIT PLANS - Deferred Compensation Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Other comprehensive income for deferred compensation contracts | $ 988 | $ 652 | $ 495 |
Compensation expense (benefit) | 578 | 514 | 402 |
Proceeds from company-owned life insurance policies | 18,108 | 876 | 2,948 |
Deferred Compensation Contracts | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total current and noncurrent portion | 6,302 | 6,821 | |
Deferred Compensation Contracts | General and Administrative Expense | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Gain on insurance proceeds | 8,000 | 100 | 1,200 |
Deferred Compensation Contracts | Key executives | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Compensation expense (benefit) | 200 | 200 | 200 |
Deferred Compensation Contracts | Former Vice Chairman | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Compensation expense (benefit) | 300 | 300 | $ 200 |
Total current and noncurrent portion | 2,600 | 2,800 | |
Deferred Compensation Contracts | Former Vice Chairman | Accrued Liabilities | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total current and noncurrent portion | $ 500 | $ 500 |
BENEFIT PLANS - Schedule of Com
BENEFIT PLANS - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Benefit Plans [Line Items] | |||
Executive plans | $ 135 | $ 249 | $ 289 |
ESPP | 8,269 | 13,142 | 9,797 |
Deferred compensation contracts | 578 | 514 | 402 |
Employee Stock | |||
Benefit Plans [Line Items] | |||
ESPP | $ 204 | $ 280 | $ 301 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive shares included in per share calculation (in shares) | 518,236 | ||
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 728,223 | 446,992 | |
Equity-based compensation awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 634,292 | 2,407,158 | 2,133,675 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment expense | $ | $ 8,269 | $ 13,142 | $ 9,797 |
2016 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuance (in shares) | shares | 3,500,000 | ||
Full value awards, appreciation multiplier | 2.4 | ||
Number of shares available for grant (in shares) | shares | 4,500,278 | ||
Participants' age required under award vesting terms | 62 years | ||
Employees' age required under award vesting terms | 55 years | ||
Number of years of continuous service to be completed by an employee under award vesting terms | 15 years | ||
Former Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment expense | $ | $ 1,300 | $ 5,400 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Weighted Average Fair Values (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair values per stock based compensation award granted (in dollars per share) | $ 0 | $ 3.68 | $ 3.51 |
RSAs & RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair values per stock based compensation award granted (in dollars per share) | 13.43 | 11.73 | 11.18 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair values per stock based compensation award granted (in dollars per share) | $ 15.74 | $ 12.28 | $ 12.11 |
STOCK-BASED COMPENSATION - Sc84
STOCK-BASED COMPENSATION - Schedule of Assumptions, Estimated Fair Value of SARs, RSUs and PSUs (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
SARs | |||
Assumptions used in determining estimated fair value of stock based compensation awards | |||
Risk-free interest rate (as a percent) | 1.99% | 1.71% | |
Expected term | 6 years 6 months | 6 years | |
Expected volatility (as a percent) | 31.50% | 30.00% | |
Expected dividend yield (as a percent) | 0.00% | 0.00% | |
RSUs and PSUs | |||
Assumptions used in determining estimated fair value of stock based compensation awards | |||
Risk-free interest rate (as a percent) | 1.21% | ||
Expected volatility (as a percent) | 36.50% | ||
Expected dividend yield (as a percent) | 0.00% | 0.00% | |
RSUs and PSUs | Minimum | |||
Assumptions used in determining estimated fair value of stock based compensation awards | |||
Risk-free interest rate (as a percent) | 1.66% | ||
Expected volatility (as a percent) | 33.40% | ||
RSUs and PSUs | Maximum | |||
Assumptions used in determining estimated fair value of stock based compensation awards | |||
Risk-free interest rate (as a percent) | 2.59% | ||
Expected volatility (as a percent) | 37.10% |
STOCK-BASED COMPENSATION - Sc85
STOCK-BASED COMPENSATION - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense (recorded in G&A) | $ 8,269 | $ 13,142 | $ 9,797 |
Less: Income tax benefit | (1,736) | 0 | 0 |
Total stock-based compensation expense, net of tax | 6,533 | 13,142 | 9,797 |
Former Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense (recorded in G&A) | 1,300 | 5,400 | |
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense (recorded in G&A) | 2,252 | 3,533 | 2,774 |
RSAs, RSUs, & PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense (recorded in G&A) | $ 6,017 | $ 9,609 | $ 7,023 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Appreciation Rights & Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
SARs and Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Unrecognized compensation cost related to unvested stock-based compensation, including options | $ | $ 1,500 |
Weighted average period of recognition | 9 months 11 days |
Weighted Average Exercise Price | |
Outstanding balance at the beginning of the period (in dollars per share) | $ / shares | $ 14.47 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited/Expired (in dollars per share) | $ / shares | 17.62 |
Exercised (in dollars per share) | $ / shares | 12.96 |
Outstanding balance at the end of the period (in dollars per share) | $ / shares | 12.44 |
Exercisable at the end of the period (in dollars per share) | $ / shares | 15.42 |
Unvested options, net of estimated forfeitures (in dollars per share) | $ / shares | $ 13.05 |
Weighted- Average Remaining Contractual Life | |
Outstanding at the end of the period | 7 years 6 months 16 days |
Exercisable at the end of the period | 4 years 10 months 29 days |
Unvested options, net of estimated forfeitures | 7 years 7 months 7 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding balance at end of period | $ | $ 6,617 |
Exercisable | $ | 848 |
Unvested awards, net of estimated forfeitures | $ | $ 5,766 |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting or performance period | 3 years |
SARs | |
Outstanding balance at the beginning of the period (in shares) | 2,884 |
Granted (in shares) | 0 |
Forfeited/Expired (in shares) | (1,086) |
Exercised (in shares) | (280) |
Outstanding balance at the end of the period (in shares) | 1,518 |
Exercisable at the end of the period (in shares) | 451 |
Unvested awards, net of estimated forfeitures (in shares) | 1,066 |
SARs | Chief Executive Officer | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting or performance period | 2 years |
Stock Options | |
Stock Options | |
Outstanding balance at the beginning of the period (in shares) | 54 |
Granted (in shares) | 0 |
Forfeited/Expired (in shares) | (39) |
Exercised (in shares) | 0 |
Outstanding balance at the end of the period (in shares) | 15 |
Exercisable at the end of the period (in shares) | 15 |
Unvested awards, net of estimated forfeitures (in shares) | 0 |
Minimum | SARs and Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting or performance period | 3 years |
Maximum | SARs and Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting or performance period | 5 years |
STOCK-BASED COMPENSATION - Acti
STOCK-BASED COMPENSATION - Activity of RSUs and PSUs (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
RSUs granted to non-employee directors | |||
Aggregate Intrinsic Value (in thousands) | |||
Vesting or performance period | 1 year | ||
RSUs | |||
RSUs and PSUs outstanding | |||
Nonvested at the beginning of the period (in shares) | 809 | ||
Granted (in shares) | 322 | ||
Forfeited (in shares) | (88) | ||
Vested (in shares) | (338) | ||
Nonvested at the end of the period (in shares) | 705 | 809 | |
Vested (in shares) | 189 | ||
Unvested awards, net of estimated forfeitures (in shares) | 486 | ||
RSAs and RSUs | |||
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 12.77 | ||
Granted (in dollars per share) | 13.43 | $ 11.73 | $ 11.18 |
Forfeited (in dollars per share) | 13.40 | ||
Vested (in dollars per share) | 13.13 | ||
Nonvested at the end of the period (in dollars per share) | 12.82 | $ 12.77 | |
Vested (in dollars per share) | 14.42 | ||
Unvested awards, net of estimated forfeitures (in dollars per share) | $ 12.16 | ||
Aggregate Intrinsic Value (in thousands) | |||
Nonvested at the end of the period (in dollars) | $ 11,657 | ||
Vested (in dollars) | 3,123 | ||
Unvested awards, net of estimated forfeitures (in dollars) | 8,035 | ||
Unrecognized compensation expense | $ 3,200 | ||
Weighted average period of recognition | 1 year 8 months 7 days | ||
PSUs | |||
RSUs and PSUs outstanding | |||
Nonvested at the beginning of the period (in shares) | 441 | ||
Granted (in shares) | 176 | ||
Forfeited (in shares) | (166) | ||
Vested (in shares) | (113) | ||
Nonvested at the end of the period (in shares) | 338 | 441 | |
Vested (in shares) | 0 | ||
Unvested awards, net of estimated forfeitures (in shares) | 285 | ||
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 12.74 | ||
Granted (in dollars per share) | 15.74 | $ 12.28 | $ 12.11 |
Forfeited (in dollars per share) | 12.23 | ||
Vested (in dollars per share) | 15.23 | ||
Nonvested at the end of the period (in dollars per share) | 13.72 | $ 12.74 | |
Vested (in dollars per share) | 0 | ||
Unvested awards, net of estimated forfeitures (in dollars per share) | $ 13.38 | ||
Aggregate Intrinsic Value (in thousands) | |||
Nonvested at the end of the period (in dollars) | $ 5,589 | ||
Vested (in dollars) | 0 | ||
Unvested awards, net of estimated forfeitures (in dollars) | $ 4,711 | ||
PSUs | Fiscal Year 2018 Awards | |||
Aggregate Intrinsic Value (in thousands) | |||
Number of years of continuous service to be completed by an employee under award vesting terms | 3 years | ||
Weighted average period of recognition | 2 years 2 months 17 days | ||
PSUs | Fiscal Year 2017 Awards | |||
Aggregate Intrinsic Value (in thousands) | |||
Number of years of continuous service to be completed by an employee under award vesting terms | 3 years | ||
Weighted average period of recognition | 1 year 1 month 20 days | ||
PSUs | Fiscal Year 2016 Awards | |||
Aggregate Intrinsic Value (in thousands) | |||
Number of years of continuous service to be completed by an employee under award vesting terms | 1 year | ||
Weighted average period of recognition | 2 months | ||
Vesting or performance period | 3 years | ||
PSUs | Former Executive Officer | |||
Aggregate Intrinsic Value (in thousands) | |||
Award settlement amount | $ 800 | $ 3,200 | |
Minimum | RSUs | |||
Aggregate Intrinsic Value (in thousands) | |||
Vesting or performance period | 3 years | ||
Maximum | RSUs | |||
Aggregate Intrinsic Value (in thousands) | |||
Vesting or performance period | 5 years | ||
Maximum | PSUs | Fiscal Year 2018 Awards | |||
Aggregate Intrinsic Value (in thousands) | |||
Unrecognized compensation expense | $ 4,700 | ||
Maximum | PSUs | Fiscal Year 2017 Awards | |||
Aggregate Intrinsic Value (in thousands) | |||
Unrecognized compensation expense | 1,400 | ||
Maximum | PSUs | Fiscal Year 2016 Awards | |||
Aggregate Intrinsic Value (in thousands) | |||
Unrecognized compensation expense | $ 100 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 31, 2016 | Sep. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2007 | May 31, 2005 | Aug. 31, 2003 | May 31, 2000 |
Authorized Shares and Designation of Preferred Class: | |||||||||
Common stock authorized (in shares) | 100,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 | |||||||
Share Repurchase Program: | |||||||||
Authorized stock repurchase amount | $ 450,000,000 | $ 400,000,000 | $ 350,000,000 | $ 300,000,000 | $ 200,000,000 | $ 100,000,000 | $ 50,000,000 | ||
Repurchases of common stock to date (in shares) | 19,900,000 | ||||||||
Repurchases of common stock to date | $ 414,700,000 | ||||||||
Remaining authorized repurchase amount | $ 35,300,000 |
SHAREHOLDERS' EQUITY - Componen
SHAREHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Stockholders' Equity Note [Abstract] | |||
Foreign currency translation | $ 8,580 | $ 2,684 | $ 4,573 |
Unrealized gain on deferred compensation contracts | 988 | 652 | 495 |
Accumulated other comprehensive income | $ 9,568 | $ 3,336 | $ 5,068 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2017segment | Jun. 30, 2018segmentstore | Jun. 30, 2017segment | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | 2 | 4 |
North American Value | |||
Segment Reporting Information [Line Items] | |||
Number of stores | 3,966 | ||
International salons | Franchised Units | |||
Segment Reporting Information [Line Items] | |||
Number of stores | 4,114 |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial Information by Reportable Operating Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | |||||||||||
Revenues | $ 294,885 | $ 300,801 | $ 308,515 | $ 309,873 | $ 320,902 | $ 313,478 | $ 315,249 | $ 318,831 | $ 1,214,074 | $ 1,268,460 | $ 1,291,933 |
Operating expenses: | |||||||||||
Cost of service | 530,582 | 610,384 | 608,965 | ||||||||
Cost of product | 140,623 | 126,297 | 130,015 | ||||||||
Site operating expenses | 127,249 | 127,797 | 135,139 | ||||||||
General and administrative | 174,045 | 157,335 | 157,012 | ||||||||
Rent | 183,096 | 180,478 | 184,150 | ||||||||
Depreciation and amortization expense | 58,205 | 52,088 | 52,888 | ||||||||
Total operating expenses | 1,213,800 | 1,254,379 | 1,268,169 | ||||||||
Operating income | $ 14,988 | $ 5,884 | $ (37,334) | $ 16,736 | $ 7,577 | $ (6,214) | $ 2,402 | $ 10,316 | 274 | 14,081 | 23,764 |
Other (expense) income: | |||||||||||
Interest expense | (10,492) | (8,584) | (9,229) | ||||||||
Interest income and other, net | 6,670 | 2,831 | 3,713 | ||||||||
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies | (3,548) | 8,328 | 18,248 | ||||||||
Operating Segments | Company-owned | |||||||||||
Revenues: | |||||||||||
Revenues | 1,104,014 | 1,189,546 | 1,213,004 | ||||||||
Operating expenses: | |||||||||||
Cost of service | 530,582 | 610,384 | 608,965 | ||||||||
Cost of product | 98,495 | 103,611 | 106,929 | ||||||||
Site operating expenses | 127,249 | 127,797 | 135,130 | ||||||||
General and administrative | 67,163 | 47,673 | 48,811 | ||||||||
Rent | 181,869 | 179,463 | 182,932 | ||||||||
Depreciation and amortization expense | 48,508 | 42,273 | 42,466 | ||||||||
Total operating expenses | 1,053,866 | 1,111,201 | 1,125,233 | ||||||||
Operating income | 50,148 | 78,345 | 87,771 | ||||||||
Other (expense) income: | |||||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income and other, net | 0 | 0 | 0 | ||||||||
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies | 50,148 | 78,345 | 87,771 | ||||||||
Operating Segments | Franchise | |||||||||||
Revenues: | |||||||||||
Revenues | 110,060 | 78,914 | 78,929 | ||||||||
Operating expenses: | |||||||||||
Cost of service | 0 | 0 | 0 | ||||||||
Cost of product | 42,128 | 22,686 | 23,086 | ||||||||
Site operating expenses | 0 | 0 | 9 | ||||||||
General and administrative | 25,880 | 21,222 | 21,490 | ||||||||
Rent | 269 | 171 | 162 | ||||||||
Depreciation and amortization expense | 365 | 357 | 363 | ||||||||
Total operating expenses | 68,642 | 44,436 | 45,110 | ||||||||
Operating income | 41,418 | 34,478 | 33,819 | ||||||||
Other (expense) income: | |||||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income and other, net | 0 | 0 | 0 | ||||||||
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies | 41,418 | 34,478 | 33,819 | ||||||||
Corporate | |||||||||||
Revenues: | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating expenses: | |||||||||||
Cost of service | 0 | 0 | 0 | ||||||||
Cost of product | 0 | 0 | 0 | ||||||||
Site operating expenses | 0 | 0 | 0 | ||||||||
General and administrative | 81,002 | 88,440 | 86,711 | ||||||||
Rent | 958 | 844 | 1,056 | ||||||||
Depreciation and amortization expense | 9,332 | 9,458 | 10,059 | ||||||||
Total operating expenses | 91,292 | 98,742 | 97,826 | ||||||||
Operating income | (91,292) | (98,742) | (97,826) | ||||||||
Other (expense) income: | |||||||||||
Interest expense | (10,492) | (8,584) | (9,229) | ||||||||
Interest income and other, net | 6,670 | 2,831 | 3,713 | ||||||||
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies | (95,114) | (104,495) | (103,342) | ||||||||
Service | |||||||||||
Revenues: | |||||||||||
Revenues | 899,051 | 960,347 | 978,614 | ||||||||
Service | Operating Segments | Company-owned | |||||||||||
Revenues: | |||||||||||
Revenues | 899,051 | 960,347 | 978,614 | ||||||||
Service | Operating Segments | Franchise | |||||||||||
Revenues: | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Service | Corporate | |||||||||||
Revenues: | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Product | |||||||||||
Revenues: | |||||||||||
Revenues | 258,666 | 259,822 | 265,796 | ||||||||
Product | Operating Segments | Company-owned | |||||||||||
Revenues: | |||||||||||
Revenues | 204,963 | 229,199 | 234,390 | ||||||||
Product | Operating Segments | Franchise | |||||||||||
Revenues: | |||||||||||
Revenues | 53,703 | 30,623 | 31,406 | ||||||||
Product | Corporate | |||||||||||
Revenues: | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Royalties and fees | |||||||||||
Revenues: | |||||||||||
Revenues | 56,357 | 48,291 | 47,523 | ||||||||
Royalties and fees | Operating Segments | Company-owned | |||||||||||
Revenues: | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Royalties and fees | Operating Segments | Franchise | |||||||||||
Revenues: | |||||||||||
Revenues | 56,357 | 48,291 | 47,523 | ||||||||
Royalties and fees | Corporate | |||||||||||
Revenues: | |||||||||||
Revenues | $ 0 | $ 0 | $ 0 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Revenues and Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Total revenues and long-lived assets associated with business operations | |||||||||||
Total Revenues | $ 294,885 | $ 300,801 | $ 308,515 | $ 309,873 | $ 320,902 | $ 313,478 | $ 315,249 | $ 318,831 | $ 1,214,074 | $ 1,268,460 | $ 1,291,933 |
Property and Equipment, Net | 105,860 | 123,281 | 105,860 | 123,281 | 152,160 | ||||||
U.S. | |||||||||||
Total revenues and long-lived assets associated with business operations | |||||||||||
Total Revenues | 1,112,155 | 1,174,408 | 1,198,227 | ||||||||
Property and Equipment, Net | 102,528 | 119,649 | 102,528 | 119,649 | 146,722 | ||||||
Other countries | |||||||||||
Total revenues and long-lived assets associated with business operations | |||||||||||
Total Revenues | 101,919 | 94,052 | 93,706 | ||||||||
Property and Equipment, Net | $ 3,332 | $ 3,632 | $ 3,332 | $ 3,632 | $ 5,438 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - USD ($) | Aug. 23, 2018 | Jan. 31, 2016 | Sep. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2007 | May 31, 2005 | Aug. 31, 2003 | May 31, 2000 |
Subsequent Event [Line Items] | ||||||||
Authorized stock repurchase amount | $ 450,000,000 | $ 400,000,000 | $ 350,000,000 | $ 300,000,000 | $ 200,000,000 | $ 100,000,000 | $ 50,000,000 | |
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Authorized stock repurchase amount | $ 200,000,000 |
QUARTERLY FINANCIAL DATA (UNA94
QUARTERLY FINANCIAL DATA (UNAUDITED) - Summarized Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 294,885 | $ 300,801 | $ 308,515 | $ 309,873 | $ 320,902 | $ 313,478 | $ 315,249 | $ 318,831 | $ 1,214,074 | $ 1,268,460 | $ 1,291,933 | |||
Cost of service and product revenues, excluding depreciation and amortization | 157,273 | 169,220 | 174,714 | 169,998 | 185,295 | 183,997 | 185,777 | 181,612 | 671,205 | 736,681 | ||||
Operating income (loss) | 14,988 | 5,884 | (37,334) | 16,736 | 7,577 | (6,214) | 2,402 | 10,316 | 274 | 14,081 | 23,764 | |||
Income (loss) from continuing operations | 6,973 | 4,799 | 39,321 | 10,793 | 4,222 | (11,840) | 982 | 5,740 | 61,886 | (896) | (5,587) | |||
(Loss) income from discontinued operations, net of income taxes | (2,211) | (10,605) | (6,601) | (33,768) | (2,969) | (6,615) | (3,201) | (2,459) | (53,185) | (15,244) | (5,729) | |||
Net income (loss) | $ 4,762 | $ (5,806) | $ 32,720 | $ (22,975) | $ 1,253 | $ (18,455) | $ (2,219) | $ 3,281 | $ 8,701 | $ (16,140) | $ (11,316) | |||
Income (loss) from continuing operations (in dollars per share) | $ 0.15 | $ 0.10 | $ 0.84 | $ 0.23 | $ 1.33 | $ (0.02) | $ (0.12) | |||||||
Loss from discontinued operations (in dollars per share) | (0.05) | (0.23) | (0.14) | (0.72) | (1.14) | (0.33) | (0.12) | |||||||
Net income (loss) per share, basic (in dollars per share) | 0.10 | (0.12) | 0.70 | (0.49) | 0.19 | [1] | (0.35) | [1] | (0.23) | [1] | ||||
Income (loss) from continuing operations (in dollars per share) | 0.15 | 0.10 | 0.83 | 0.23 | 1.32 | (0.02) | (0.12) | |||||||
Loss from discontinued operations (in dollars per share) | (0.05) | (0.22) | (0.14) | (0.72) | (1.13) | (0.33) | (0.12) | |||||||
Net income (loss) per share, diluted (in dollars per share) | $ 0.10 | $ (0.12) | $ 0.69 | $ (0.49) | $ 0.18 | [1] | (0.35) | [1] | $ (0.23) | [1] | ||||
Loss from continuing operations per share, basic and diluted (in dollars per share) | $ 0.09 | $ (0.26) | $ 0.02 | $ 0.12 | (0.02) | |||||||||
Loss from discontinued operations per share, basic and diluted (in dollars per share) | (0.06) | (0.14) | (0.07) | (0.05) | (0.33) | |||||||||
Net (loss) income per share, basic and diluted (in dollars per share) | $ 0.03 | $ (0.40) | $ (0.05) | $ 0.07 | $ (0.35) | |||||||||
[1] | Total is a recalculation; line items calculated individually may not sum to total due to rounding. |
QUARTERLY FINANCIAL DATA (UNA95
QUARTERLY FINANCIAL DATA (UNAUDITED) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Quarterly Financial Information [Line Items] | ||||||||
Asset impairment charges | $ 33,800 | |||||||
Non-cash tax benefit | $ 68,900 | |||||||
Loss on write down of inventories | $ 5,300 | $ 0 | $ 5,905 | $ 0 | ||||
Restatement Adjustment | Understatement of Non-Cash Fixed Asset Impairment Charges Related to Discontinued Operations | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Asset impairments | $ 2,000 | |||||||
Former Executive Officer | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Severance | $ 7,900 | |||||||
Contract Termination | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Restructuring charges | 37,600 | |||||||
Other Restructuring | ||||||||
Quarterly Financial Information [Line Items] | ||||||||
Restructuring charges | $ 3,500 |
Uncategorized Items - rgs-20180
Label | Element | Value |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | us-gaap_DisposalGroupIncludingDiscontinuedOperationCashAndCashEquivalents | $ 0 |