XML 42 R32.htm IDEA: XBRL DOCUMENT
v3.21.1

REVISION OF THIRD QUARTER 2020 UNAUDITED RESULTS (Tables) | 9 Months Ended
--- | ---
Mar. 31, 2021
Accounting Changes and Error Corrections [Abstract] |
Schedule of Revision of Previously Issued Unaudited Condensed Consolidated Financial Information | However, to facilitate comparisons among periods, the Company has decided to revise its previously issued second and third quarter unaudited condensed consolidated financial information.
|  | Three Months Ended March 31, 2020
|  | As Previously Reported |  | Adjustments |  | As Revised
|  | (Dollars in thousands, except per share amounts)
Rent expense (1) |  | $ | 19,243 |  |  | $ | (578) |  |  | $ | 18,665 |
Goodwill impairment (2) |  | 44,529 |  |  | (4,365) |  |  | 40,164 |
Operating loss |  | (64,342) |  |  | 4,943 |  |  | (59,399) |
Loss from sale of salon assets to franchisees, net |  | (10,208) |  |  | 2,350 |  |  | (7,858) |
Interest income and other, net |  | (1,329) |  |  | 1,477 |  |  | 148 |
Loss from continuing operations before income taxes |  | (77,591) |  |  | 8,770 |  |  | (68,821) |
Income tax benefit |  | 2,253 |  |  | (1,274) |  |  | 979 |
Net loss |  | (75,037) |  |  | 7,496 |  |  | (67,541) |
Net loss per share |  | (2.10) |  |  | 0.22 |  |  | (1.88) |
Comprehensive loss |  | (77,519) |  |  | 7,496 |  |  | (70,023) |
|  | Nine Months Ended March 31, 2020
|  | As Previously Reported |  | Adjustments |  | As Revised
|  | (Dollars in thousands, except per share amounts)
Rent expense (1) |  | $ | 64,002 |  |  | $ | (578) |  |  | $ | 63,424 |
Goodwill impairment (2) |  | 44,529 |  |  | (4,365) |  |  | 40,164 |
Operating loss |  | (81,714) |  |  | 4,943 |  |  | (76,771) |
Loss from sale of salon assets to franchisees, net |  | (21,760) |  |  | (4,365) |  |  | (26,125) |
Interest income and other, net |  | 3,188 |  |  | — |  |  | 3,188 |
Loss from continuing operations before income taxes |  | (104,901) |  |  | 578 |  |  | (104,323) |
Income tax benefit |  | 5,904 |  |  | (121) |  |  | 5,783 |
Net loss |  | (98,244) |  |  | 457 |  |  | (97,787) |
Net loss per share |  | (2.73) |  |  | 0.01 |  |  | (2.72) |
Comprehensive loss |  | (100,588) |  |  | 457 |  |  | (100,131) |
_______________________________________________________________________________ The Company revised the amounts originally reported for the third quarter of fiscal year 2020 for the following items: (1)Adjusted third quarter rent expense includes a $0.6 million benefit related to leases signed in the third quarter, but not identified until the fourth quarter. The net loss for the three and nine months ended March 31, 2020 were both impacted by the misstatement. (2)During the third quarter, goodwill derecognition was overstated by $2.4 million. As of March 31, 2020, the Company impaired its remaining Company-owned goodwill, with the amount of goodwill impairment being overstated by $4.4 million. As the second quarter error which understated goodwill derecognition was not identified until the fourth quarter, goodwill impairment and loss from the sale of salons to franchisees, net were misstated in the third quarter. The Company recorded a $4.4 million decrease to goodwill impairment and a $2.4 million decrease to loss from the sale of salon assets to franchisees, net to correct the error. Net loss for the nine months ended March 31, 2020 was not misstated. However, goodwill impairment and the loss from the sales of salons to franchisees, net were misstated in the nine months ended March 31, 2020, with goodwill impairment overstated by $4.4 million and loss from the sale of salons to franchisees, net understated by $4.4 million.

X
- References No definition available. + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794 + Details
Name: | us-gaap_ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration