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SEGMENT INFORMATION | 12 Months Ended
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Jun. 30, 2017
Segment Reporting [Abstract] |
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 fourth quarter of fiscal year 2017, the Company redefined its operating segments to reflect how the chief operating decision maker now evaluates the business as a result of the increased focus on the franchise business as a result of a number of factors including appointing a President of Franchise in April 2017. The Company now reports its operations in four operating segments: North American Value, North American Franchise, North American Premium and International. The Company's operating segments are its reportable operating segments. Prior to this change, the Company had three operating segments: North American Value, North American Premium, and International. The Company did not operate under the realigned operating segment structure prior to the fourth quarter of fiscal year 2017. The North American Value reportable operating segment is comprised of 5,439 company-owned 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 Franchise reportable operating segment is comprised of 2,633 franchised salons located mainly in strip center locations, and Walmart Supercenters. North American 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, First Choice Haircutters, Roosters and Magicuts concepts. The North American Premium reportable operating segment is comprised of 559 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 275 company-owned and 13 franchised 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. 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, 2017
|  | North American Value |  | North American Franchise |  | North American Premium |  | International |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Service |  | $ | 1,035,900 |  |  | $ | — |  |  | $ | 200,732 |  |  | $ | 71,100 |  |  | $ | — |  |  | $ | 1,307,732 |
Product |  | 244,500 |  |  | 30,548 |  |  | 40,769 |  |  | 20,048 |  |  | — |  |  | 335,865 |
Royalties and fees |  | — |  |  | 47,973 |  |  | — |  |  | 318 |  |  | — |  |  | 48,291 |
|  | 1,280,400 |  |  | 78,521 |  |  | 241,501 |  |  | 91,466 |  |  | — |  |  | 1,691,888 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Cost of service |  | 657,013 |  |  | — |  |  | 140,743 |  |  | 40,436 |  |  | — |  |  | 838,192 |
Cost of product |  | 112,156 |  |  | 22,640 |  |  | 20,571 |  |  | 10,977 |  |  | — |  |  | 166,344 |
Site operating expenses |  | 136,895 |  |  | — |  |  | 24,885 |  |  | 6,659 |  |  | — |  |  | 168,439 |
General and administrative |  | 44,344 |  |  | 21,193 |  |  | 12,130 |  |  | 8,480 |  |  | 88,355 |  |  | 174,502 |
Rent |  | 200,700 |  |  | 170 |  |  | 53,253 |  |  | 24,321 |  |  | 844 |  |  | 279,288 |
Depreciation and amortization |  | 45,737 |  |  | 357 |  |  | 8,260 |  |  | 2,515 |  |  | 9,458 |  |  | 66,327 |
Total operating expenses |  | 1,196,845 |  |  | 44,360 |  |  | 259,842 |  |  | 93,388 |  |  | 98,657 |  |  | 1,693,092 |
Operating income (loss) |  | 83,555 |  |  | 34,161 |  |  | (18,341 | ) |  | (1,922 | ) |  | (98,657 | ) |  | (1,204 | )
Other (expense) income: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | — |  |  | — |  |  | (8,703 | ) |  | (8,703 | )
Interest income and other, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,072 |  |  | 3,072 |
Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies |  | $ | 83,555 |  |  | $ | 34,161 |  |  | $ | (18,341 | ) |  | $ | (1,922 | ) |  | $ | (104,288 | ) |  | $ | (6,835 | )
|  | For the Year Ended June 30, 2016
|  | North American Value |  | North American Franchise |  | North American Premium |  | International |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Service |  | $ | 1,064,109 |  |  | $ | — |  |  | $ | 233,520 |  |  | $ | 86,034 |  |  | $ | — |  |  | $ | 1,383,663 |
Product |  | 252,301 |  |  | 31,406 |  |  | 49,918 |  |  | 26,058 |  |  | — |  |  | 359,683 |
Royalties and fees |  | — |  |  | 47,523 |  |  | — |  |  | — |  |  | — |  |  | 47,523 |
|  | 1,316,410 |  |  | 78,929 |  |  | 283,438 |  |  | 112,092 |  |  | — |  |  | 1,790,869 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Cost of service |  | 659,140 |  |  | — |  |  | 161,466 |  |  | 47,582 |  |  | — |  |  | 868,188 |
Cost of product |  | 117,464 |  |  | 23,086 |  |  | 24,573 |  |  | 14,218 |  |  | — |  |  | 179,341 |
Site operating expenses |  | 145,494 |  |  | — |  |  | 29,751 |  |  | 7,707 |  |  | — |  |  | 182,952 |
General and administrative |  | 44,881 |  |  | 21,472 |  |  | 14,408 |  |  | 10,663 |  |  | 86,609 |  |  | 178,033 |
Rent |  | 206,948 |  |  | 162 |  |  | 58,144 |  |  | 30,961 |  |  | 1,056 |  |  | 297,271 |
Depreciation and amortization |  | 46,313 |  |  | 363 |  |  | 7,892 |  |  | 2,843 |  |  | 10,059 |  |  | 67,470 |
Total operating expenses |  | 1,220,240 |  |  | 45,083 |  |  | 296,234 |  |  | 113,974 |  |  | 97,724 |  |  | 1,773,255 |
Operating income (loss) |  | 96,170 |  |  | 33,846 |  |  | (12,796 | ) |  | (1,882 | ) |  | (97,724 | ) |  | 17,614 |
Other (expense) income: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | — |  |  | — |  |  | (9,317 | ) |  | (9,317 | )
Interest income and other, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,219 |  |  | 4,219 |
Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies |  | $ | 96,170 |  |  | $ | 33,846 |  |  | $ | (12,796 | ) |  | $ | (1,882 | ) |  | $ | (102,822 | ) |  | $ | 12,516 |
|  | For the Year Ended June 30, 2015
|  | North American Value |  | North American Franchise |  | North American Premium |  | International |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Service |  | $ | 1,081,704 |  |  | $ | — |  |  | $ | 253,520 |  |  | $ | 94,184 |  |  | $ | — |  |  | $ | 1,429,408 |
Product |  | 247,316 |  |  | 29,756 |  |  | 56,080 |  |  | 30,084 |  |  | — |  |  | 363,236 |
Royalties and fees |  | — |  |  | 44,643 |  |  | — |  |  | — |  |  | — |  |  | 44,643 |
|  | 1,329,020 |  |  | 74,399 |  |  | 309,600 |  |  | 124,268 |  |  | — |  |  | 1,837,287 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Cost of service |  | 656,069 |  |  | — |  |  | 174,733 |  |  | 51,915 |  |  | — |  |  | 882,717 |
Cost of product |  | 115,116 |  |  | 22,031 |  |  | 28,095 |  |  | 15,316 |  |  | — |  |  | 180,558 |
Site operating expenses |  | 152,739 |  |  | — |  |  | 30,769 |  |  | 8,934 |  |  | — |  |  | 192,442 |
General and administrative |  | 44,562 |  |  | 21,296 |  |  | 15,431 |  |  | 11,533 |  |  | 93,229 |  |  | 186,051 |
Rent |  | 211,885 |  |  | 292 |  |  | 61,716 |  |  | 33,109 |  |  | 2,123 |  |  | 309,125 |
Depreciation and amortization |  | 56,407 |  |  | 425 |  |  | 13,094 |  |  | 3,148 |  |  | 9,789 |  |  | 82,863 |
Total operating expenses |  | 1,236,778 |  |  | 44,044 |  |  | 323,838 |  |  | 123,955 |  |  | 105,141 |  |  | 1,833,756 |
Operating income (loss) |  | 92,242 |  |  | 30,355 |  |  | (14,238 | ) |  | 313 |  |  | (105,141 | ) |  | 3,531 |
Other (expense) income: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | — |  |  | — |  |  | (10,206 | ) |  | (10,206 | )
Interest income and other, net |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,697 |  |  | 1,697 |
Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies |  | $ | 92,242 |  |  | $ | 30,355 |  |  | $ | (14,238 | ) |  | $ | 313 |  |  | $ | (113,650 | ) |  | $ | (4,978 | )
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,
|  | 2017 |  | 2016 |  | 2015
|  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net
|  | (Dollars in thousands)
U.S. |  | $ | 1,486,502 |  |  | $ | 132,554 |  |  | $ | 1,563,023 |  |  | $ | 167,613 |  |  | $ | 1,585,672 |  |  | $ | 198,471 |
Other countries |  | 205,386 |  |  | 14,440 |  |  | 227,846 |  |  | 15,708 |  |  | 251,615 |  |  | 19,686 |
Total |  | $ | 1,691,888 |  |  | $ | 146,994 |  |  | $ | 1,790,869 |  |  | $ | 183,321 |  |  | $ | 1,837,287 |  |  | $ | 218,157 |

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- 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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 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=68060357&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 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 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=68060357&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 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 Reference 13: 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=68060357&loc=d3e8924-108599 Reference 14: 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=68060357&loc=d3e8906-108599 + Details
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