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DISCONTINUED OPERATIONS: | 6 Months Ended
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Dec. 31, 2012
DISCONTINUED OPERATIONS: |
DISCONTINUED OPERATIONS: | 2. DISCONTINUED OPERATIONS: Hair Restoration Centers On July 13, 2012, the Company entered into a definitive agreement to sell its Hair Club for Men and Women business (Hair Club), a provider of hair restoration services, for cash of $163.5 million to Aderans, Co., Ltd. The definitive agreement includes a working capital adjustment provision that could impact the final sale price. The sale includes the Company’s 50.0 percent interest in Hair Club for Men, Ltd. accounted for by the Company under the equity method. The transaction is under review by the Federal Trade Commission. The Company is currently anticipating recognizing a gain upon the closing of the transaction. The Company classified the results of operations of Hair Club as discontinued operations for all periods presented in the Condensed Consolidated Statement of Operations. The assets and liabilities of this business to be sold met the criteria to be classified as held for sale and have been aggregated and reported as current assets held for sale, long-term assets held for sale, current liabilities related to assets held for sale and long-term liabilities related to assets held for sale in the Condensed Consolidated Balance Sheet for all periods presented. The classification was based on the Company entering into the agreement to sell Hair Club, the centers being available for sale in present condition, and the sale being probable as of December 31, 2012. The operations and cash flows of Hair Club will be eliminated from ongoing operations of the Company, which was previously recorded as the Hair Restoration reporting segment. There will be no significant continuing involvement by the Company in the operations of Hair Club after disposal. The following summarizes the assets and liabilities of our Hair Club operations at December 31, 2012 and June 30, 2012:
|  | December 31, 2012 |  | June 30, 2012 |
|  | (Dollars in thousands) |
Current assets held for sale |  |  |  |  |
Receivables, net |  | $ | 2,504 |  | $ | 2,624 |
Inventories |  | 7,276 |  | 6,165 |
Deferred income taxes |  | 3,229 |  | 2,892 |
Other current assets |  | 3,807 |  | 5,319 |
Total current assets held for sale |  | 16,816 |  | 17,000 |
Property and equipment, net |  | 22,261 |  | 17,261 |
Goodwill |  | 74,377 |  | 74,376 |
Other intangibles, net |  | 78,132 |  | 78,395 |
Investment in affiliates |  | 5,189 |  | 5,189 |
Total long-term assets held for sale |  | 179,959 |  | 175,221 |
Total assets held for sale |  | $ | 196,775 |  | $ | 192,221 |
Current liabilities related to assets held for sale |  |  |  |  |
Accounts payable |  | $ | 3,173 |  | $ | 2,564 |
Accrued expenses |  | 13,365 |  | 15,556 |
Total current liabilities related to assets held for sale |  | 16,538 |  | 18,120 |
Long-term liabilities related to assets held for sale |  | 28,781 |  | 28,007 |
Total liabilities related to assets held for sale |  | $ | 45,319 |  | $ | 46,127 |
During the three months ended December 31, 2011, the Company performed an interim impairment test of goodwill related to Hair Club and recorded a $78.4 million impairment charge for the excess of the carrying value of goodwill over the implied fair value. The following summarizes the results of operations of our discontinued Hair Club operations for the periods presented:
|  | For the Periods Ended December 31, |
|  | Three Months |  | Six Months |
|  | 2012 |  | 2011 |  | 2012 |  | 2011 |
|  | (Dollars in thousands) |
Revenues |  | $ | 38,230 |  | $ | 37,140 |  | $ | 77,180 |  | $ | 74,543 |
Income (loss) from discontinued operations, before income taxes |  | 5,994 |  | (73,545 | ) | 11,866 |  | (69,479 | )
Income tax (provision) benefit on discontinued operations |  | (2,378 | ) | 3,996 |  | (4,676 | ) | 2,482 |
Equity in income of affiliated companies, net of tax |  | 237 |  | 222 |  | 440 |  | 384 |
Income (loss) from discontinued operations, net of income taxes |  | $ | 3,853 |  | $ | (69,327 | ) | $ | 7,630 |  | $ | (66,613 | )
Income taxes have been allocated to continuing and discontinued operations based on the methodology required by interim reporting and accounting for income taxes guidance. Depreciation and amortization ceased during the three and six months ended December 31, 2012 in accordance with accounting for discontinued operations. Hair Club depreciation and amortization expense for the three and six months ended December 31, 2011 was $3.2 and $6.6 million, respectively.

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43-48 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 + Details
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