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SEGMENT INFORMATION: | 6 Months Ended
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Dec. 31, 2017
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 unaudited Condensed 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’s reportable operating segments consisted of the following salons:
|  | December 31, 2017 |  | June 30, 2017
COMPANY-OWNED SALONS: |  |  |  |
SmartStyle/Cost Cutters in Walmart Stores (1) |  | 2,497 |  |  | 2,652 |
Supercuts |  | 954 |  |  | 980 |
Signature Style |  | 1,414 |  |  | 1,468 |
Mall locations (Regis and MasterCuts) |  | — |  |  | 898 |
Total North American Salons |  | 4,865 |  |  | 5,998 |
Total International Salons (2) |  | — |  |  | 275 |
Total Company-owned Salons |  | 4,865 |  |  | 6,273 |
as a percent of total Company-owned and Franchise salons |  | 55.3 | % |  | 70.3 | %
FRANCHISE SALONS: |  |  |  |
SmartStyle in Walmart Stores |  | 210 |  |  | 62 |
Cost Cutters in Walmart Stores |  | 116 |  |  | 114 |
Supercuts |  | 1,730 |  |  | 1,687 |
Signature Style |  | 754 |  |  | 770 |
Total non-mall franchise locations |  | 2,810 |  |  | 2,633 |
Mall franchise locations (Regis and MasterCuts) |  | 849 |  |  | — |
Total North American Salons |  | 3,659 |  |  | 2,633 |
Total International Salons (2) |  | 270 |  |  | 13 |
Total Franchise Salons |  | 3,929 |  |  | 2,646 |
as a percent of total Company-owned and Franchise salons |  | 44.7 | % |  | 29.7 | %
OWNERSHIP INTEREST LOCATIONS: |  |  |  |
Equity ownership interest locations |  | 89 |  |  | 89 |
Grand Total, System-wide |  | 8,883 |  |  | 9,008 |
____________________________________
(1) | In January 2018, the Company closed 597 non-performing Company owned SmartStyle salons.
(2) | Canadian and Puerto Rican salons are included in the North American salon totals.
As of December 31, 2017, the Company-owned operating segment is comprised primarily of SmartStyle®, Supercuts®, Cost Cutters®, and other regional trade names and the Franchise operating segment is comprised primarily of Supercuts, Regis®, MasterCuts®, SmartStyle®, Cost Cutters®, First Choice Haircutters®, Roosters® and Magicuts® concepts. The Corporate segment represents home office and other unallocated costs. 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 Three Months Ended December 31, 2017
|  | Company-owned |  | Franchise |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | 223,214 |  |  | $ | — |  |  | $ | — |  |  | $ | 223,214 |
Product |  | 56,748 |  |  | 15,068 |  |  | — |  |  | 71,816 |
Royalties and fees |  | — |  |  | 13,485 |  |  | — |  |  | 13,485 |
|  | 279,962 |  |  | 28,553 |  |  | — |  |  | 308,515 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | 134,850 |  |  | — |  |  | — |  |  | 134,850 |
Cost of product |  | 28,044 |  |  | 11,820 |  |  | — |  |  | 39,864 |
Site operating expenses |  | 32,119 |  |  | — |  |  | — |  |  | 32,119 |
General and administrative |  | 17,947 |  |  | 6,869 |  |  | 23,776 |  |  | 48,592 |
Rent |  | 65,159 |  |  | 70 |  |  | 244 |  |  | 65,473 |
Depreciation and amortization |  | 22,054 |  |  | 91 |  |  | 2,806 |  |  | 24,951 |
Total operating expenses |  | 300,173 |  |  | 18,850 |  |  | 26,826 |  |  | 345,849 |
Operating (loss) income |  | (20,211 | ) |  | 9,703 |  |  | (26,826 | ) |  | (37,334 | )
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (2,169 | ) |  | (2,169 | )
Interest income and other, net |  | — |  |  | — |  |  | 2,362 |  |  | 2,362 |
(Loss) income from continuing operations before income taxes |  | $ | (20,211 | ) |  | $ | 9,703 |  |  | $ | (26,633 | ) |  | $ | (37,141 | )
|  | For the Three Months Ended December 31, 2016
|  | Company-owned |  | Franchise |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | 235,609 |  |  | $ | — |  |  | $ | — |  |  | $ | 235,609 |
Product |  | 60,636 |  |  | 7,593 |  |  | — |  |  | 68,229 |
Royalties and fees |  | — |  |  | 11,411 |  |  | — |  |  | 11,411 |
|  | 296,245 |  |  | 19,004 |  |  | — |  |  | 315,249 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | 151,193 |  |  | — |  |  | — |  |  | 151,193 |
Cost of product |  | 28,783 |  |  | 5,801 |  |  | — |  |  | 34,584 |
Site operating expenses |  | 32,638 |  |  | — |  |  | — |  |  | 32,638 |
General and administrative |  | 11,889 |  |  | 4,968 |  |  | 19,838 |  |  | 36,695 |
Rent |  | 44,881 |  |  | 41 |  |  | 169 |  |  | 45,091 |
Depreciation and amortization |  | 10,203 |  |  | 89 |  |  | 2,354 |  |  | 12,646 |
Total operating expenses |  | 279,587 |  |  | 10,899 |  |  | 22,361 |  |  | 312,847 |
Operating income (loss) |  | 16,658 |  |  | 8,105 |  |  | (22,361 | ) |  | 2,402 |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (2,153 | ) |  | (2,153 | )
Interest income and other, net |  | — |  |  | — |  |  | 1,452 |  |  | 1,452 |
Income (loss) from continuing operations before income taxes |  | $ | 16,658 |  |  | $ | 8,105 |  |  | $ | (23,062 | ) |  | $ | 1,701 |
|  | For the Six Months Ended December 31, 2017
|  | Company-owned |  | Franchise |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | 458,773 |  |  | $ | — |  |  | $ | — |  |  | $ | 458,773 |
Product |  | 109,966 |  |  | 22,790 |  |  | — |  |  | 132,756 |
Royalties and fees |  | — |  |  | 26,859 |  |  | — |  |  | 26,859 |
|  | 568,739 |  |  | 49,649 |  |  | — |  |  | 618,388 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | 274,686 |  |  | — |  |  | — |  |  | 274,686 |
Cost of product |  | 52,491 |  |  | 17,535 |  |  | — |  |  | 70,026 |
Site operating expenses |  | 65,422 |  |  | — |  |  | — |  |  | 65,422 |
General and administrative |  | 33,771 |  |  | 12,415 |  |  | 37,572 |  |  | 83,758 |
Rent |  | 107,282 |  |  | 117 |  |  | 490 |  |  | 107,889 |
Depreciation and amortization |  | 31,948 |  |  | 183 |  |  | 5,075 |  |  | 37,206 |
Total operating expenses |  | 565,600 |  |  | 30,250 |  |  | 43,137 |  |  | 638,987 |
Operating income (loss) |  | 3,139 |  |  | 19,399 |  |  | (43,137 | ) |  | (20,599 | )
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (4,307 | ) |  | (4,307 | )
Interest income and other, net |  | — |  |  | — |  |  | 3,389 |  |  | 3,389 |
Income (loss) from continuing operations before income taxes |  | $ | 3,139 |  |  | $ | 19,399 |  |  | $ | (44,055 | ) |  | $ | (21,517 | )
|  | For the Six Months Ended December 31, 2016
|  | Company-owned |  | Franchise |  | Corporate |  | Consolidated
|  | (Dollars in thousands)
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | 478,700 |  |  | $ | — |  |  | $ | — |  |  | $ | 478,700 |
Product |  | 116,949 |  |  | 14,996 |  |  | — |  |  | 131,945 |
Royalties and fees |  | — |  |  | 23,435 |  |  | — |  |  | 23,435 |
|  | 595,649 |  |  | 38,431 |  |  | — |  |  | 634,080 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | 301,990 |  |  | — |  |  | — |  |  | 301,990 |
Cost of product |  | 54,130 |  |  | 11,269 |  |  | — |  |  | 65,399 |
Site operating expenses |  | 65,283 |  |  | — |  |  | — |  |  | 65,283 |
General and administrative |  | 23,431 |  |  | 10,365 |  |  | 38,815 |  |  | 72,611 |
Rent |  | 90,893 |  |  | 83 |  |  | 348 |  |  | 91,324 |
Depreciation and amortization |  | 19,798 |  |  | 179 |  |  | 4,778 |  |  | 24,755 |
Total operating expenses |  | 555,525 |  |  | 21,896 |  |  | 43,941 |  |  | 621,362 |
Operating income (loss) |  | 40,124 |  |  | 16,535 |  |  | (43,941 | ) |  | 12,718 |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (4,316 | ) |  | (4,316 | )
Interest income and other, net |  | — |  |  | — |  |  | 1,779 |  |  | 1,779 |
Income (loss) from continuing operations before income taxes |  | $ | 40,124 |  |  | $ | 16,535 |  |  | $ | (46,478 | ) |  | $ | 10,181 |

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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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