XML 35 R23.htm IDEA: XBRL DOCUMENT
v3.21.2

LEASES (Tables) | 3 Months Ended
--- | ---
Sep. 30, 2021
Leases [Abstract] |
Schedule of Real Estate Taxes and Other Occupancy Expenses | Total rent includes the following:
|  | Three Months Ended September 30, |  |
|  | 2021 |  | 2020 |  |  |  |
|  | (Dollars in thousands)
Office and warehouse rent |  | $ | 1,669 |  |  | $ | 1,203 |  |  |  |  |
Lease termination expense (1) |  | 1,340 |  |  | 5,554 |  |  |  |  |
Lease liability benefit (2) |  | (2,431) |  |  | (6,061) |  |  |  |  |
Franchise salon rent |  | 329 |  |  | 718 |  |  |  |  |
Company-owned salon rent |  | 896 |  |  | 11,811 |  |  |  |  |
Total |  | $ | 1,803 |  |  | $ | 13,225 |  |  |  |  |
_______________________________________________________________________________ (1)During the three months ended September 30, 2021, the Company paid $0.9 million to exit its distribution centers before the lease end dates and incurred costs of $0.4 million to exit salons before the lease end date in order to relieve the Company of future lease obligations. For the three months ended September 30, 2020, lease termination fees includes $2.5 million of early termination payments to close salons before the lease end date to relieve the Company of future lease obligations and $3.1 million to accrue future lease payments for salons that are no longer operating. (2)Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired.
Lessor, Future Operating Lease Commitments | As of September 30, 2021, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (in thousands):
Fiscal Year |  | Leases for Franchise Salons |  | Leases for Company-owned Salons |  | Corporate Leases |  | Total Operating Lease Payments |  | Sublease Income To Be Received From Franchisees |  | Net Rent Commitments
Remainder of 2022 |  | $ | 96,767 |  |  | $ | 4,460 |  |  | $ | 2,071 |  |  | $ | 103,298 |  |  | $ | (96,767) |  |  | $ | 6,531 |
2023 |  | 115,343 |  |  | 4,944 |  |  | 2,365 |  |  | 122,652 |  |  | (115,343) |  |  | 7,309 |
2024 |  | 100,818 |  |  | 3,005 |  |  | 1,486 |  |  | 105,309 |  |  | (100,818) |  |  | 4,491 |
2025 |  | 84,740 |  |  | 1,013 |  |  | 1,525 |  |  | 87,278 |  |  | (84,740) |  |  | 2,538 |
2026 |  | 71,674 |  |  | 566 |  |  | 1,563 |  |  | 73,803 |  |  | (71,674) |  |  | 2,129 |
Thereafter |  | 177,274 |  |  | 904 |  |  | 6,498 |  |  | 184,676 |  |  | (177,274) |  |  | 7,402 |
Total future obligations |  | $ | 646,616 |  |  | $ | 14,892 |  |  | $ | 15,508 |  |  | $ | 677,016 |  |  | $ | (646,616) |  |  | $ | 30,400 |
Less amounts representing interest |  | 79,466 |  |  | 925 |  |  | 2,271 |  |  | 82,662 |  |  |  |  |
Present value of lease liabilities |  | $ | 567,150 |  |  | $ | 13,967 |  |  | $ | 13,237 |  |  | $ | 594,354 |  |  |  |  |
Less current lease liabilities |  | 106,010 |  |  | 5,407 |  |  | 2,168 |  |  | 113,585 |  |  |  |  |
Long-term lease liabilities |  | $ | 461,140 |  |  | $ | 8,560 |  |  | $ | 11,069 |  |  | $ | 480,769 |  |  |  |  |
Lessee, Future Operating Lease Commitments | As of September 30, 2021, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (in thousands):
Fiscal Year |  | Leases for Franchise Salons |  | Leases for Company-owned Salons |  | Corporate Leases |  | Total Operating Lease Payments |  | Sublease Income To Be Received From Franchisees |  | Net Rent Commitments
Remainder of 2022 |  | $ | 96,767 |  |  | $ | 4,460 |  |  | $ | 2,071 |  |  | $ | 103,298 |  |  | $ | (96,767) |  |  | $ | 6,531 |
2023 |  | 115,343 |  |  | 4,944 |  |  | 2,365 |  |  | 122,652 |  |  | (115,343) |  |  | 7,309 |
2024 |  | 100,818 |  |  | 3,005 |  |  | 1,486 |  |  | 105,309 |  |  | (100,818) |  |  | 4,491 |
2025 |  | 84,740 |  |  | 1,013 |  |  | 1,525 |  |  | 87,278 |  |  | (84,740) |  |  | 2,538 |
2026 |  | 71,674 |  |  | 566 |  |  | 1,563 |  |  | 73,803 |  |  | (71,674) |  |  | 2,129 |
Thereafter |  | 177,274 |  |  | 904 |  |  | 6,498 |  |  | 184,676 |  |  | (177,274) |  |  | 7,402 |
Total future obligations |  | $ | 646,616 |  |  | $ | 14,892 |  |  | $ | 15,508 |  |  | $ | 677,016 |  |  | $ | (646,616) |  |  | $ | 30,400 |
Less amounts representing interest |  | 79,466 |  |  | 925 |  |  | 2,271 |  |  | 82,662 |  |  |  |  |
Present value of lease liabilities |  | $ | 567,150 |  |  | $ | 13,967 |  |  | $ | 13,237 |  |  | $ | 594,354 |  |  |  |  |
Less current lease liabilities |  | 106,010 |  |  | 5,407 |  |  | 2,168 |  |  | 113,585 |  |  |  |  |
Long-term lease liabilities |  | $ | 461,140 |  |  | $ | 8,560 |  |  | $ | 11,069 |  |  | $ | 480,769 |  |  |  |  |

X
- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=123408670&loc=SL77918686-209980 + Details
Name: | us-gaap_LeaseCostTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of undiscounted cash flows of lessee's operating lease liability. Includes, but is not limited to, reconciliation of undiscounted cash flows to operating lease liability recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=123408670&loc=SL77918701-209980 + Details
Name: | us-gaap_LesseeOperatingLeaseLiabilityMaturityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturity of undiscounted cash flows to be received by lessor on annual basis for operating lease. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=124258985&loc=SL77919396-209981 + Details
Name: | us-gaap_LessorOperatingLeasePaymentsToBeReceivedMaturityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration