DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

Hair Restoration Centers

On April 9, 2013, the Company sold its Hair Club for Men and Women business (Hair Club), a provider of hair restoration services. The sale included the Company's 50.0% interest in Hair Club for Men, Ltd., which was previously accounted for under the equity method. At the closing of the sale, the Company received $162.8 million, which represented the purchase price of $163.5 million adjusted for the preliminary working capital provision. During fiscal year 2014, the Company collected $3.0 million of cash recorded as receivable as of June 30, 2013, of which $2.0 million was a result of the final working capital provision, resulting in a final purchase price of $164.8 million and $1.0 million was excess cash from the transaction completion date. The Company recorded an after-tax gain of $17.8 million upon the sale of Hair Club and incurred $5.4 million in professional and transaction fees during fiscal year 2013 associated with the sale.

The Company classified the results of operations of Hair Club as discontinued operations for all periods presented in the Consolidated Statement of Operations. There was no significant continuing involvement by the Company in the operations of Hair Club after the disposal.

The following summarizes the results of operations of our discontinued Hair Club operations for the periods presented:

	Fiscal Years
	2013			2012
	(Dollars in thousands)
Revenues	$	115,734		$	151,552
Income (loss) from discontinued operations, before income taxes	$	28,643		$	(65,114	)
Income tax (provision) benefit on discontinued operations	(4,242		)	849
Equity in income of affiliated companies, net of tax	627			816
Income (loss) from discontinued operations, net of income taxes	$	25,028		$	(63,449	)

Income taxes have been allocated to continuing and discontinued operations based on the methodology required by accounting for income taxes guidance. Depreciation and amortization ceased during fiscal year 2013 in accordance with accounting for discontinued operations. Hair Club depreciation and amortization expense for fiscal year 2012 was $13.1 million. During fiscal year 2012, the Company performed an interim impairment test of goodwill related to Hair Club during the three months ended December 31, 2011 and recorded a $78.4 million impairment charge for the excess of the carrying value of goodwill over the implied fair value.

Trade Secret

On February 16, 2009, the Company sold its Trade Secret salon concept (Trade Secret). The Company reported Trade Secret as a discontinued operation. During fiscal years 2014 and 2012, the Company recorded tax benefits of $1.4 and $1.1 million, respectively, in discontinued operations related to the release of tax reserves associated with the disposition of Trade Secret.