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REVENUE RECOGNITION (Tables) | 12 Months Ended
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Jun. 30, 2019
Revenue from Contract with Customer [Abstract] |
Disaggregation of revenue | The following table disaggregates revenue by timing of revenue recognition and is reconciled to reportable segment revenues as follows:
|  | Year ended June 30, 2019 |  | Year ended June 30, 2018
|  | Company-owned |  | Franchise |  | Company-owned |  | Franchise
|  | (in thousands)
Revenue recognized at a point in time: |  |  |  |  |  |  |  |
Service |  | $ | 749,660 |  |  | $ | — |  |  | $ | 899,345 |  |  | $ | — |
Product |  | 165,713 |  |  | 59,905 |  |  | 205,037 |  |  | 53,703 |
Total revenue recognized at a point in time |  | $ | 915,373 |  |  | $ | 59,905 |  |  | $ | 1,104,382 |  |  | $ | 53,703 |
Revenue recognized over time: |  |  |  |  |  |  |  |
Royalty and other franchise fees |  | $ | — |  |  | $ | 59,688 |  |  | $ | — |  |  | $ | 50,576 |
Advertising fund fees |  | — |  |  | 34,073 |  |  | — |  |  | 26,818 |
Total revenue recognized over time |  | — |  |  | 93,761 |  |  | — |  |  | 77,394 |
Total revenue |  | $ | 915,373 |  |  | $ | 153,666 |  |  | $ | 1,104,382 |  |  | $ | 131,097 |
Schedule of receivables, broker fees and deferred revenue | Information about receivables, broker fees and deferred revenue subject to the amended revenue recognition guidance is as follows:
|  | June 30, 2019 |  | June 30, 2018 |  | Balance Sheet Classification
|  | (in thousands) |  |
Receivables from contracts with customers, net |  | $ | 23,210 |  |  | $ | 21,504 |  |  | Accounts receivable, net
Broker fees |  | $ | 17,819 |  |  | $ | 14,002 |  |  | Other assets
Deferred revenue: |  |  |  |  |  |
Current |  |  |  |  |  |
Gift card liability |  | $ | 3,050 |  |  | $ | 3,320 |  |  | Accrued expenses
Deferred franchise fees unopened salons |  | 193 |  |  | 2,306 |  |  | Accrued expenses
Deferred franchise fees open salons |  | 4,164 |  |  | 3,030 |  |  | Accrued expenses
Total current deferred revenue |  | $ | 7,407 |  |  | $ | 8,656 |  |  |
Non-current |  |  |  |  |  |
Deferred franchise fees unopened salons |  | $ | 15,173 |  |  | $ | 11,161 |  |  | Other non-current liabilities
Deferred franchise fees open salons |  | 24,194 |  |  | 18,346 |  |  | Other non-current liabilities
Total non-current deferred revenue |  | $ | 39,367 |  |  | $ | 29,507 |  |  |
Broker fees | The following table is a rollforward of the broker fee balance for the periods indicated (in thousands):
Balance as of June 30, 2018 |  | $ | 14,002 |
Additions |  | 5,976 |
Amortization |  | (1,625 | )
Write-offs |  | (534 | )
Balance as of June 30, 2019 |  | $ | 17,819 |
Estimated revenue expected to be recognized | Estimated revenue expected to the recognized in the future related to deferred franchise fees for open salons as of June 30, 2019 is as follows (in thousands):
2020 |  | $ | 4,164 |
2021 |  | 3,898 |
2022 |  | 3,778 |
2023 |  | 3,602 |
2024 |  | 3,367 |
Thereafter |  | 9,549 |
Total |  | $ | 28,358 |
Schedules of impact of revenue recognition policy | The amended revenue recognition guidance impacted the Company's previously reported financial statements as follows: CONSOLIDATED BALANCE SHEET June 30, 2018 (Dollars in thousands)
|  |  |  | Adjustments for new revenue recognition guidance |  |
|  | Previously |  | Franchise |  | Advertising |  | Gift Card |  |  |  |
|  | Reported |  | Fees |  | Funds |  | Breakage |  | Taxes |  | As Restated
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 110,399 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 110,399 |
Receivables, net |  | 52,430 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 52,430 |
Inventories |  | 79,363 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 79,363 |
Other current assets |  | 47,867 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 47,867 |
Total current assets |  | 290,059 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 290,059 |
Property and equipment, net |  | 99,288 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 99,288 |
Goodwill |  | 412,643 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 412,643 |
Other intangibles, net |  | 10,557 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10,557 |
Other assets |  | 37,616 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 37,616 |
Non-current assets held for sale |  | 6,572 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,572 |
Total assets |  | $ | 856,735 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 856,735 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 57,738 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 57,738 |
Accrued expenses |  | 97,630 |  |  | 3,030 |  |  | — |  |  | 56 |  |  | — |  |  | 100,716 |
Total current liabilities |  | 155,368 |  |  | 3,030 |  |  | — |  |  | 56 |  |  | — |  |  | 158,454 |
Long-term debt |  | 90,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 90,000 |
Other noncurrent liabilities |  | 107,875 |  |  | 18,346 |  |  | — |  |  | — |  |  | (4,378 | ) |  | 121,843 |
Total liabilities |  | 353,243 |  |  | 21,376 |  |  | — |  |  | 56 |  |  | (4,378 | ) |  | 370,297 |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders’ equity: |  |  |  |  | 0 |  |  |  |  |  |  |  |  |
Common stock |  | 2,263 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,263 |
Additional paid-in capital |  | 194,436 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 194,436 |
Accumulated other comprehensive income |  | 9,568 |  |  | 88 |  |  | — |  |  | — |  |  | — |  |  | 9,656 |
Retained earnings |  | 297,225 |  |  | (21,464 | ) |  | — |  |  | (56 | ) |  | 4,378 |  |  | 280,083 |
Total shareholders’ equity |  | 503,492 |  |  | (21,376 | ) |  | — |  |  | (56 | ) |  | 4,378 |  |  | 486,438 |
Total liabilities and shareholders’ equity |  | $ | 856,735 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 856,735 |
CONSOLIDATED STATEMENT OF OPERATIONS For The Twelve Months Ended June 30, 2018 (Dollars and shares in thousands, except per share data amounts)
|  |  |  | Adjustments for new revenue recognition guidance |  |
|  | Previously |  | Franchise |  | Advertising |  | Gift Card |  |  |  |
|  | Reported |  | Fees |  | Funds |  | Breakage |  | Taxes |  | Adjusted
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Service |  | $ | 899,051 |  |  | $ | — |  |  | $ | — |  |  | $ | 294 |  |  | $ | — |  |  | $ | 899,345 |
Product |  | 258,666 |  |  | — |  |  | — |  |  | 74 |  |  | — |  |  | 258,740 |
Royalties and fees |  | 56,357 |  |  | (5,781 | ) |  | 26,818 |  |  | — |  |  | — |  |  | 77,394 |
|  | 1,214,074 |  |  | (5,781 | ) |  | 26,818 |  |  | 368 |  |  | — |  |  | 1,235,479 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Cost of service |  | 530,582 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 530,582 |
Cost of product |  | 140,623 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 140,623 |
Site operating expenses |  | 127,249 |  |  | — |  |  | 26,818 |  |  | — |  |  | — |  |  | 154,067 |
General and administrative |  | 174,045 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 174,045 |
Rent |  | 183,096 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 183,096 |
Depreciation and amortization |  | 58,205 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 58,205 |
Total operating expenses |  | 1,213,800 |  |  | — |  |  | 26,818 |  |  | — |  |  | — |  |  | 1,240,618 |
Operating income (loss) |  | 274 |  |  | (5,781 | ) |  | — |  |  | 368 |  |  | — |  |  | (5,139 | )
|  | 274 |  |  | -5781 |  |  | 0 |  |  | 368 |  |  | 0 |  |  | -5139 |
Other (expense) income: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (10,492 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (10,492 | )
Gain from sale of salon assets to franchisees, net |  | 241 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 241 |
Interest income and other, net |  | 6,429 |  |  | — |  |  | — |  |  | (1,230 | ) |  | — |  |  | 5,199 |
Loss from continuing operations before income taxes |  | (3,548 | ) |  | (5,781 | ) |  | — |  |  | (862 | ) |  | — |  |  | (10,191 | )
Income tax benefit |  | 65,434 |  |  | — |  |  | — |  |  | — |  |  | 4,378 |  |  | 69,812 |
Income from continuing operations |  | 61,886 |  |  | (5,781 | ) |  | — |  |  | (862 | ) |  | 4,378 |  |  | 59,621 |
Loss from TBG discontinued operations, net of taxes |  | (53,185 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (53,185 | )
Net income (loss) |  | $ | 8,701 |  |  | $ | (5,781 | ) |  | $ | — |  |  | $ | (862 | ) |  | $ | 4,378 |  |  | $ | 6,436 |
Net loss per share: |  |  |  |  |  |  |  |  |  |  |  |
Basic: |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations (1) |  | $ | 1.33 |  |  | $ | (0.12 | ) |  | $ | 0.00 |  |  | $ | (0.02 | ) |  | $ | 0.09 |  |  | $ | 1.28 |
Loss from TBG discontinued operations |  | (1.14 | ) |  | 0.00 |  |  | 0.00 |  |  | 0.00 |  |  | 0.00 |  |  | (1.14 | )
Net loss per share, basic (1) |  | $ | 0.19 |  |  | $ | (0.12 | ) |  | $ | 0.00 |  |  | $ | (0.02 | ) |  | $ | 0.09 |  |  | $ | 0.14 |
Diluted: |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations (1) |  | $ | 1.32 |  |  | $ | (0.12 | ) |  | $ | 0.00 |  |  | $ | (0.02 | ) |  | $ | 0.09 |  |  | $ | 1.27 |
Loss from TBG discontinued operations |  | (1.13 | ) |  | 0.00 |  |  | 0.00 |  |  | 0.00 |  |  | 0.00 |  |  | (1.13 | )
Net loss per share, diluted (1) |  | $ | 0.18 |  |  | $ | (0.12 | ) |  | $ | 0.00 |  |  | $ | (0.02 | ) |  | $ | 0.09 |  |  | $ | 0.14 |
Weighted average common and common equivalent shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | 46,517 |  |  | 46,517 |  |  | 46,517 |  |  | 46,517 |  |  | 46,517 |  |  | 46,517 |
Diluted |  | 47,035 |  |  | 47,035 |  |  | 47,035 |  |  | 47,035 |  |  | 47,035 |  |  | 47,035 |
_____________________________________________________________________________ (1)Total is a recalculation; line items calculated individually may not sum to total due to rounding.

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