Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements (Tables)

12 Months Ended

Sep. 30, 2018

Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

September 30, 2018

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Assets
Cash and cash equivalents	$	—		$	10	$	29,050		$	48,235	$	—		$	77,295
Trade and other accounts receivable, net		4			—		53,295			37,191		—			90,490
Due from affiliates		—			—		2,598,681			—		(2,598,681	)		—
Inventory		—			—		714,000			230,338		—			944,338
Other current assets		2,010			111		27,422			13,417		—			42,960
Property and equipment, net		8			—		232,941			75,408		—			308,357
Investment in subsidiaries		1,368,927			4,044,669		380,166			—		(5,793,762	)		—
Goodwill and other intangible assets, net		—			—		459,348			149,275		—			608,623
Other assets		1,325			10,242		(4,797	)		18,581		—			25,351
Total assets	$	1,372,274		$	4,055,032	$	4,490,106		$	572,445	$	(8,392,443	)	$	2,097,414
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	$	38		$	—	$	233,936		$	69,267	$	—		$	303,241
Due to affiliates		1,629,411			888,141		—			81,129		(2,598,681	)		—
Accrued liabilities		234			23,019		125,179			31,855		—			180,287
Income taxes payable		585			1,519		—			40		—			2,144
Long-term debt		—			1,773,426		1			882		—			1,774,309
Other liabilities		10,562			—		15,250			4,210		—			30,022
Deferred income tax liabilities, net		—			—		71,071			4,896		—			75,967
Total liabilities		1,640,830			2,686,105		445,437			192,279		(2,598,681	)		2,365,970
Total stockholders’ (deficit) equity		(268,556	)		1,368,927		4,044,669			380,166		(5,793,762	)		(268,556	)
Total liabilities and stockholders’ (deficit) equity	$	1,372,274		$	4,055,032	$	4,490,106		$	572,445	$	(8,392,443	)	$	2,097,414

Condensed Consolidating Balance Sheet

September 30, 2017

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Assets
Cash and cash equivalents	$	—		$	10	$	22,090		$	41,659	$	—		$	63,759
Trade and other accounts receivable, net		200			—		59,992			32,049		—			92,241
Due from affiliates		—			—		2,289,371			—		(2,289,371	)		—
Inventory		—			—		709,890			220,965		—			930,855
Other current assets		11,763			813		26,144			16,503		—			55,223
Property and equipment, net		12			—		230,069			83,636		—			313,717
Investment in subsidiaries		1,110,891			3,717,999		386,681			—		(5,215,571	)		—
Goodwill and other intangible assets, net		—			—		468,118			149,978		—			618,096
Other assets		1,538			8,116		(7,837	)		23,299		—			25,116
Total assets	$	1,124,404		$	3,726,938	$	4,184,518		$	568,089	$	(7,504,942	)	$	2,099,007
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	$	251		$	4	$	243,818		$	63,679	$	—		$	307,752
Due to affiliates		1,487,484			727,856		—			74,031		(2,289,371	)		—
Accrued liabilities		285			20,108		113,628			32,506		—			166,527
Income taxes payable		—			1,624		—			609		—			2,233
Long-term debt		—			1,866,455		1			1,479		—			1,867,935
Other liabilities		—			—		16,008			4,132		—			20,140
Deferred income tax liabilities, net		—			—		93,064			4,972		—			98,036
Total liabilities		1,488,020			2,616,047		466,519			181,408		(2,289,371	)		2,462,623
Total stockholders’ (deficit) equity		(363,616	)		1,110,891		3,717,999			386,681		(5,215,571	)		(363,616	)
Total liabilities and stockholders’ (deficit) equity	$	1,124,404		$	3,726,938	$	4,184,518		$	568,089	$	(7,504,942	)	$	2,099,007

Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income

Condensed Consolidating Statement of Earnings and Comprehensive Income

Fiscal Year Ended September 30, 2018

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net sales	$	—		$	—		$	3,152,120		$	780,445		$	—		$	3,932,565
Related party sales		—			—			2,294			—			(2,294	)		—
Cost of goods sold		—			—			1,581,385			409,061			(2,294	)		1,988,152
Gross profit		—			—			1,573,029			371,384			—			1,944,413
Selling, general and administrative expenses		10,957			1,538			1,136,312			335,402			—			1,484,209
Restructuring charges		—			—			33,615			—			—			33,615
Operating earnings (loss)		(10,957	)		(1,538	)		403,102			35,982			—			426,589
Interest expense (income)		—			98,332			(3	)		(167	)		—			98,162
Earnings (loss) before provision for income taxes		(10,957	)		(99,870	)		403,105			36,149			—			328,427
Provision (benefit) for income taxes		(2,734	)		(28,787	)		73,747			28,154			—			70,380
Equity in earnings of subsidiaries, net of tax		266,270			337,353			7,995			—			(611,618	)		—
Net earnings		258,047			266,270			337,353			7,995			(611,618	)		258,047
Other comprehensive income (loss), net of tax		—			2,449			—			(10,604	)		—			(8,155	)
Total comprehensive income (loss)	$	258,047		$	268,719		$	337,353		$	(2,609	)	$	(611,618	)	$	249,892

Condensed Consolidating Statement of Earnings and Comprehensive Income

Fiscal Year Ended September 30, 2017

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net sales	$	—		$	—		$	3,209,039	$	729,278	$	—		$	3,938,317
Related party sales		—			—			2,501		—		(2,501	)		—
Cost of goods sold		—			—			1,590,184		385,739		(2,501	)		1,973,422
Gross profit		—			—			1,621,356		343,539		—			1,964,895
Selling, general and administrative expenses		10,939			526			1,130,615		321,539		—			1,463,619
Restructuring charges		—			—			22,679		—		—			22,679
Operating earnings (loss)		(10,939	)		(526	)		468,062		22,000		—			478,597
Interest expense		—			132,696			6		197		—			132,899
Earnings (loss) before provision for income taxes		(10,939	)		(133,222	)		468,056		21,803		—			345,698
Provision (benefit) for income taxes		(4,246	)		(51,726	)		177,383		9,211		—			130,622
Equity in earnings of subsidiaries, net of tax		221,769			303,265			12,592		—		(537,626	)		—
Net earnings		215,076			221,769			303,265		12,592		(537,626	)		215,076
Other comprehensive income (loss), net of tax		—			(1,084	)		—		19,299		—			18,215
Total comprehensive income	$	215,076		$	220,685		$	303,265	$	31,891	$	(537,626	)	$	233,291

Condensed Consolidating Statement of Earnings and Comprehensive Income

Fiscal Year Ended September 30, 2016

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net sales	$	—		$	—		$	3,219,812		$	732,806		$	—		$	3,952,618
Related party sales		—			—			2,666			—			(2,666	)		—
Cost of goods sold		—			—			1,595,187			396,157			(2,666	)		1,988,678
Gross profit		—			—			1,627,291			336,649			—			1,963,940
Selling, general and administrative expenses		11,905			364			1,151,071			302,303			—			1,465,643
Restructuring charges		—			—			—			—			—			—
Operating earnings (loss)		(11,905	)		(364	)		476,220			34,346			—			498,297
Interest expense (income)		—			144,229			(6	)		14			—			144,237
Earnings (loss) before provision for income taxes		(11,905	)		(144,593	)		476,226			34,332			—			354,060
Provision (benefit) for income taxes		(4,638	)		(56,161	)		181,932			9,985			—			131,118
Equity in earnings of subsidiaries, net of tax		230,209			318,641			24,347			—			(573,197	)		—
Net earnings		222,942			230,209			318,641			24,347			(573,197	)		222,942
Other comprehensive loss, net of tax		—			—			—			(22,346	)		—			(22,346	)
Total comprehensive income	$	222,942		$	230,209		$	318,641		$	2,001		$	(573,197	)	$	200,596

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended September 30, 2018

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net cash provided (used) by operating activities	$	23,424		$	(62,948	)	$	384,958		$	27,227		$	—		$	372,661
Cash Flows from Investing Activities:
Payments for property and equipment, net		—			—			(68,689	)		(17,449	)		—			(86,138	)
Acquisitions, net of cash acquired		—			—			—			(9,175	)		—			(9,175	)
Due from affiliates		—			—			(309,310	)		—			309,310			—
Net cash used by investing activities		—			—			(377,999	)		(26,624	)		309,310			(95,313	)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		—			461,814			5			—			—			461,819
Repayments of long-term debt		—			(558,000	)		(4	)		(595	)		—			(558,599	)
Debt issuance costs		—			(1,151	)		—			—			—			(1,151	)
Payments for common stock repurchased		(166,701	)		—			—			—			—			(166,701	)
Proceeds from exercises of stock options		1,350			—			—			—			—			1,350
Due to affiliates		141,927			160,285			—			7,098			(309,310	)		—
Net cash (used) provided by financing activities		(23,424	)		62,948			1			6,503			(309,310	)		(263,282	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			—			—			(530	)		—			(530	)
Net increase in cash and cash equivalents		—			—			6,960			6,576			—			13,536
Cash and cash equivalents, beginning of period		—			10			22,090			41,659			—			63,759
Cash and cash equivalents, end of period	$	—		$	10		$	29,050		$	48,235		$	—		$	77,295

Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended September 30, 2017

(In thousands)

	Parent				Sally Holdings LLC and Sally Capital Inc.				Guarantor Subsidiaries				Non- Guarantor Subsidiaries				Consolidating Eliminations				Sally Beauty Holdings, Inc. and Subsidiaries
Net cash provided (used) by operating activities	$	4,095		$		(72,779	)	$		386,604		$		25,366		$		—		$		343,286
Cash Flows from Investing Activities:
Payments for property and equipment, net		—				—				(64,000	)			(25,625	)			—				(89,625	)
Due from affiliates		—				—				(322,866	)			—				322,866				—
Net cash used by investing activities		—				—				(386,866	)			(25,625	)			322,866				(89,625	)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		—				1,277,250				—				—				—				1,277,250
Repayments of long-term debt		—				(1,215,940	)			(16	)			(687	)			—				(1,216,643	)
Debt issuance cost		—				(8,376	)			—				—				—				(8,376	)
Payments for common stock repurchased		(346,873	)			—				—				—				—				(346,873	)
Proceeds from exercises of stock options		17,339				—				—				—				—				17,339
Due to affiliates		325,439				(8,517	)			—				5,944				(322,866	)			—
Net cash (used) provided by financing activities		(4,095	)			44,417				(16	)			5,257				(322,866	)			(277,303	)
Effect of foreign exchange rate changes on cash and cash equivalents		—				—				—				779				—				779
Net increase (decrease) in cash and cash equivalents		—				(28,362	)			(278	)			5,777				—				(22,863	)
Cash and cash equivalents, beginning of period		—				28,372				22,368				35,882				—				86,622
Cash and cash equivalents, end of period	$	—		$		10		$		22,090		$		41,659		$		—		$		63,759

Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended September 30, 2016

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations		Sally Beauty Holdings, Inc. and Subsidiaries
Net cash provided by operating activities	$	192,868		$	20,902		$	107,289		$	33,053		$	—	$	354,112
Cash Flows from Investing Activities:
Payments for property and equipment, net		(16	)		—			(117,539	)		(31,134	)		—		(148,689	)
Acquisitions, net of cash acquired		—			—			(26,141	)		—			—		(26,141	)
Net cash used by investing activities		(16	)		—			(143,680	)		(31,134	)		—		(174,830	)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		—			912,000			—			—			—		912,000
Repayments of long-term debt		—			(937,785	)		(92	)		(660	)		—		(938,537	)
Debt issuance costs		—			(12,748	)		—			—			—		(12,748	)
Payments for common stock repurchased		(209,072	)		—			—			—			—		(209,072	)
Proceeds from exercises of stock options		16,220			—			—			—			—		16,220
Net cash used by financing activities		(192,852	)		(38,533	)		(92	)		(660	)		—		(232,137	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			—			—			(561	)		—		(561	)
Net increase (decrease) in cash and cash equivalents		—			(17,631	)		(36,483	)		698			—		(53,416	)
Cash and cash equivalents, beginning of period		—			46,003			58,851			35,184			—		140,038
Cash and cash equivalents, end of period	$	—		$	28,372		$	22,368		$	35,882		$	—	$	86,622