XML 67 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.8

SEGMENT INFORMATION | 12 Months Ended
--- | ---
Jun. 30, 2014
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 second quarter of fiscal year 2014, the Company redefined its operating segments to reflect how the chief operating decision maker evaluates the business as a result of the restructuring of the Company's North American field organization. The field reorganization, which impacted all North American salons except for salons in the mass premium category, was announced in the fourth quarter of fiscal year 2013 and completed in the second quarter of fiscal year 2014. The Company now reports its operations in three operating segments: North American Value, North American Premium and International. The Company's operating segments are its reportable operating segments. Prior to this change in organizational structure, the Company had two reportable operating segments: North American salons and International salons. The Company did not completely operate under the realigned operating segments structure prior to the second quarter of fiscal year 2014. The North American Value reportable operating segment is comprised of 8,295 company-owned and franchised salons located mainly in strip center locations and Walmart Supercenters. North American Value salons offer high quality, convenient and value priced hair care and beauty services and retail products. SmartStyle, Supercuts, MasterCuts, Cost Cutters and other regional trade names operating in the United States, Canada and Puerto Rico are generally within the North American Value segment. The North American Premium reportable operating segment is comprised of 801 company-owned salons primarily in mall-based locations. North American Premium salons offer upscale hair care and beauty services and retail products at reasonable prices. This segment operates in the United States, Canada and Puerto Rico and primarily includes the Regis salons concept, among other trade names. The International reportable operating segment is comprised of 360 company-owned salons located in malls, department stores and high-traffic locations. International salons offer a full range of custom hair care and beauty services and retail products. This segment operates in the United Kingdom primarily under the Supercuts, Regis and Sassoon concepts. Financial information concerning the Company's reportable operating segments is shown in the following table:
|  | Fiscal Years
|  | 2014 |  | 2013 |  | 2012
|  | (Dollars in thousands)
Revenues(1): |  |  |  |  |  |
North American Value salons |  | $ | 1,430,083 |  |  | $ | 1,515,581 |  |  | $ | 1,570,542 |
North American Premium salons |  | 333,858 |  |  | 373,820 |  |  | 410,563 |
International salons |  | 128,496 |  |  | 129,312 |  |  | 141,122 |
|  | $ | 1,892,437 |  |  | $ | 2,018,713 |  |  | $ | 2,122,227 |
Depreciation and amortization expense(1): |  |  |  |  |  |
North American Value salons |  | $ | 66,038 |  |  | $ | 56,364 |  |  | $ | 55,317 |
North American Premium salons |  | 15,859 |  |  | 15,893 |  |  | 15,936 |
International salons |  | 5,227 |  |  | 5,222 |  |  | 5,297 |
Total segment depreciation and amortization expense |  | 87,124 |  |  | 77,479 |  |  | 76,550 |
Unallocated Corporate |  | 12,609 |  |  | 14,276 |  |  | 28,420 |
|  | $ | 99,733 |  |  | $ | 91,755 |  |  | $ | 104,970 |
Operating (loss) income(1): |  |  |  |  |  |
North American Value salons |  | $ | 118,935 |  |  | $ | 141,103 |  |  | $ | 197,478 |
North American Premium salons(2) |  | (46,274 | ) |  | (13,850 | ) |  | (57,504 | )
International salons |  | (3,356 | ) |  | (1,380 | ) |  | 2,505 |
Total segment operating income |  | 69,305 |  |  | 125,873 |  |  | 142,479 |
Unallocated Corporate |  | (103,295 | ) |  | (113,547 | ) |  | (144,646 | )
Operating (loss) income(1) |  | $ | (33,990 | ) |  | $ | 12,326 |  |  | $ | (2,167 | )
Interest expense |  | (22,290 | ) |  | (37,594 | ) |  | (28,245 | )
Interest income and other, net |  | 1,952 |  |  | 35,366 |  |  | 5,098 |
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies |  | $ | (54,328 | ) |  | $ | 10,098 |  |  | $ | (25,314 | )
_______________________________________________________________________________
(1) | See Note 2 to the Consolidated Financial Statements for discussion of the classification of the results of operations of Hair Club as discontinued operations.
(2) | Included in the North American Premium salons segment's operating loss for fiscal years 2014 and 2012 are goodwill impairment charges of $34.9 and $67.7 million, respectively.
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,
|  | 2014 |  | 2013 |  | 2012
|  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net
|  | (Dollars in thousands)
U.S. |  | $ | 1,626,794 |  |  | $ | 240,460 |  |  | $ | 1,737,517 |  |  | $ | 285,111 |  |  | $ | 1,815,797 |  |  | $ | 274,711 |
Other countries |  | 265,643 |  |  | 26,078 |  |  | 281,196 |  |  | 28,349 |  |  | 306,430 |  |  | 31,088 |
Total |  | $ | 1,892,437 |  |  | $ | 266,538 |  |  | $ | 2,018,713 |  |  | $ | 313,460 |  |  | $ | 2,122,227 |  |  | $ | 305,799 |

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration