401(k) and Profit Sharing Plan

12 Months Ended

Sep. 30, 2018

Compensation And Retirement Disclosure [Abstract]

401(k) and Profit Sharing Plan

14.401(k) and Profit Sharing Plan

We sponsor the Sally Beauty 401(k) and Profit Sharing Plan (the “401(k) Plan”), which is a qualified defined contribution plan. The 401(k) Plan covers our U.S.-based employees who meet certain eligibility requirements and who are not members of a collective bargaining unit. Under the terms of the 401(k) Plan, employees may contribute a percentage of their annual compensation up to certain maximums, as defined by the 401(k) Plan and by the U.S. Internal Revenue Code. We currently match a portion of employee contributions to the plan. We recognized expense of $6.5 million, $7.1 million and $7.1 million in the fiscal years ended September 30, 2018, 2017 and 2016, respectively, related to such matching contributions and these amounts are included in selling, general and administrative expenses in our consolidated statements of earnings.

In addition, pursuant to the 401(k) Plan, we may elect to make voluntary profit sharing contributions to the accounts of eligible employees as determined by the Compensation Committee of the Board. We recognized expense of $2.6 million in the fiscal years ended September 30, 2016 related to such profit sharing contributions and this amount is included in selling, general and administrative expenses in our consolidated statements of earnings. During the fiscal year ended September 30, 2018 and 2017, we did not make a profit sharing contribution to the 401(k) Plan.