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SEGMENT INFORMATION | 12 Months Ended
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Jun. 30, 2020
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 evaluates the business as a result of the sale of the mall-based business and International segment sale. See Note 1 to the Consolidated Financial Statements. The Company now reports its operations in two operating segments: Franchise salons and Company-owned 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 Franchise salons reportable operating segment is comprised of 5,209 franchised salons located mainly in strip center locations and Walmart Supercenters. Franchise salons offer high quality, convenient and value priced hair care and beauty services and retail products. This segment operates primarily in the United States and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, Roosters and Magicuts concepts. The Company-owned salons reportable operating segment is comprised of 1,632 company-owned salons located mainly in strip center locations and Walmart Supercenters. Company-owned salons offer high quality, convenient and value priced hair care and beauty services and retail products. SmartStyle, Supercuts, Cost Cutters and other regional trade names operating in the United States, Canada and Puerto Rico are generally within the Company-owned salons segment. Financial information concerning the Company's reportable operating segments is shown in the following table:
|  | For the Year Ended June 30, 2020 |  |  |  |  |  |
|  | Franchise |  | Company - owned |  | Corporate(1) |  | Consolidated
|  | (Dollars in thousands) |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 331,538 |  |  | $ | — |  |  | $ | 331,538 |
Product |  | 52,421 |  |  | 85,165 |  |  | — |  |  | 137,586 |
Royalties and fees |  | 73,402 |  |  | — |  |  | — |  |  | 73,402 |
Franchise rental income |  | 127,203 |  |  | — |  |  | — |  |  | 127,203 |
|  | 253,026 |  |  | 416,703 |  |  | — |  |  | 669,729 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 222,279 |  |  | — |  |  | 222,279 |
Cost of product |  | 40,032 |  |  | 44,666 |  |  | — |  |  | 84,698 |
Site operating expenses |  | 13,341 |  |  | 58,202 |  |  | — |  |  | 71,543 |
General and administrative |  | 33,725 |  |  | 24,638 |  |  | 72,590 |  |  | 130,953 |
Rent |  | 872 |  |  | 72,921 |  |  | 2,589 |  |  | 76,382 |
Franchise rent expense |  | 127,203 |  |  | — |  |  | — |  |  | 127,203 |
Depreciation and amortization |  | 922 |  |  | 29,113 |  |  | 6,917 |  |  | 36,952 |
Long-lived asset impairment |  | 1,712 |  |  | 20,848 |  |  | — |  |  | 22,560 |
TBG restructuring |  | 2,333 |  |  | — |  |  | — |  |  | 2,333 |
Goodwill impairment |  | — |  |  | 40,164 |  |  | — |  |  | 40,164 |
Total operating expenses |  | 220,140 |  |  | 512,831 |  |  | 82,096 |  |  | 815,067 |
Operating income (loss) |  | 32,886 |  |  | (96,128) |  |  | (82,096) |  |  | (145,338) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (7,522) |  |  | (7,522) |
Gain from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | (27,306) |  |  | (27,306) |
Interest income and other, net |  | — |  |  | — |  |  | 3,353 |  |  | 3,353 |
Income (loss) from continuing operations before income taxes |  | $ | 32,886 |  |  | $ | (96,128) |  |  | $ | (113,571) |  |  | $ | (176,813) |
|  | For the Year Ended June 30, 2019 |  |  |  |  |  |
|  | Franchise |  | Company-owned |  | Corporate(1) |  | Consolidated
|  | (Dollars in thousands) |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 749,660 |  |  | $ | — |  |  | $ | 749,660 |
Product |  | 59,905 |  |  | 165,713 |  |  | — |  |  | 225,618 |
Royalties and fees |  | 93,761 |  |  | — |  |  | — |  |  | 93,761 |
|  | 153,666 |  |  | 915,373 |  |  | — |  |  | 1,069,039 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 452,827 |  |  | — |  |  | 452,827 |
Cost of product |  | 47,219 |  |  | 81,597 |  |  | — |  |  | 128,816 |
Site operating expenses |  | 34,099 |  |  | 106,932 |  |  | — |  |  | 141,031 |
General and administrative |  | 32,888 |  |  | 57,219 |  |  | 86,897 |  |  | 177,004 |
Rent |  | 740 |  |  | 130,214 |  |  | 862 |  |  | 131,816 |
Depreciation and amortization |  | 762 |  |  | 28,263 |  |  | 8,823 |  |  | 37,848 |
TBG restructuring |  | 21,816 |  |  | — |  |  | — |  |  | 21,816 |
Total operating expenses |  | 137,524 |  |  | 857,052 |  |  | 96,582 |  |  | 1,091,158 |
Operating income (loss) |  | 16,142 |  |  | 58,321 |  |  | (96,582) |  |  | (22,119) |
Other (expense) income: |  |  |  |  |  |  |  |
Interest expense |  | — |  |  | — |  |  | (4,795) |  |  | (4,795) |
Gain from sale of salon assets to franchisees, net |  | — |  |  | — |  |  | 2,918 |  |  | 2,918 |
Interest income and other, net |  | — |  |  | — |  |  | 1,729 |  |  | 1,729 |
Income (loss) from continuing operations before income taxes |  | $ | 16,142 |  |  | $ | 58,321 |  |  | $ | (96,730) |  |  | $ | (22,267) |
|  | For the Year Ended June 30, 2018 |  |  |  |  |  |
|  | Franchise |  | Company - owned |  | Corporate(1) |  | Consolidated
|  | (Dollars in thousands) |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |
Service |  | $ | — |  |  | $ | 899,345 |  |  | $ | — |  |  | $ | 899,345 |
Product |  | 53,703 |  |  | 205,037 |  |  | — |  |  | 258,740 |
Royalties and fees |  | 77,394 |  |  | — |  |  | — |  |  | 77,394 |
|  | 131,097 |  |  | 1,104,382 |  |  | — |  |  | 1,235,479 |
Operating expenses: |  |  |  |  |  |  |  |
Cost of service |  | — |  |  | 530,582 |  |  | — |  |  | 530,582 |
Cost of product |  | 42,128 |  |  | 98,495 |  |  | — |  |  | 140,623 |
Site operating expenses |  | 26,818 |  |  | 127,249 |  |  | — |  |  | 154,067 |
General and administrative |  | 25,880 |  |  | 67,163 |  |  | 81,002 |  |  | 174,045 |
Rent |  | 269 |  |  | 181,869 |  |  | 958 |  |  | 183,096 |
Depreciation and amortization |  | 365 |  |  | 48,508 |  |  | 9,332 |  |  | 58,205 |
Total operating expenses |  | 95,460 |  |  | 1,053,866 |  |  | 91,292 |  |  | 1,240,618 |
Operating income (loss) |  | 35,637 |  |  | 50,516 |  |  | (91,292) |  |  | (5,139) |
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 |  | — |  |  | — |  |  | 5,199 |  |  | 5,199 |
Income (loss) from continuing operations before income taxes |  | $ | 35,637 |  |  | $ | 50,516 |  |  | $ | (96,344) |  |  | $ | (10,191) |
_______________________________________________________________________________ (1)Corporate consists primarily of unallocated general and administrative expenses, including expenses associated with salon support, depreciation and amortization related to our corporate headquarters and unallocated insurance, benefit and compensation programs, including stock-based compensation. 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, |  |  |  |  |  |  |  |  |  |
|  | 2020 |  |  |  | 2019 |  |  |  | 2018 |  |
|  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net
|  | (Dollars in thousands) |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 613,652 |  |  | $ | 56,532 |  |  | $ | 972,994 |  |  | $ | 75,789 |  |  | $ | 1,132,041 |  |  | $ | 95,956 |
Other countries |  | 56,077 |  |  | 644 |  |  | 96,045 |  |  | 2,301 |  |  | 103,438 |  |  | 3,332 |
Total |  | $ | 669,729 |  |  | $ | 57,176 |  |  | $ | 1,069,039 |  |  | $ | 78,090 |  |  | $ | 1,235,479 |  |  | $ | 99,288 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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