SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

Segment information is prepared on the same basis the chief operating decision maker reviews financial information for operational decision-making purposes. During the second quarter of fiscal year 2014, the Company redefined its operating segments to reflect how the chief operating decision maker evaluates the business as a result of the restructuring of the Company's North American field organization. The field reorganization, which impacted all North American salons except for salons in the mass premium category, was announced in the fourth quarter of fiscal year 2013 and completed in the second quarter of fiscal year 2014. The Company now reports its operations in three operating segments: North American Value, North American Premium and International. The Company's operating segments are its reportable operating segments. Prior to this change in organizational structure, the Company had two reportable operating segments: North American salons and International salons. The Company did not completely operate under the realigned operating segments structure prior to the second quarter of fiscal year 2014.

The North American Value reportable operating segment is comprised of 8,247 company-owned and franchised salons located mainly in strip center locations and Walmart Supercenters. North American Value salons offer high quality, convenient and value priced hair care and beauty services and retail products. SmartStyle, Supercuts, MasterCuts, Cost Cutters and other regional trade names operating in the United States, Canada and Puerto Rico are generally within the North American Value segment.

The North American Premium reportable operating segment is comprised of 746 company-owned salons primarily in mall-based locations. North American Premium salons offer upscale hair care and beauty services and retail products at reasonable prices. This segment operates in the United States, Canada and Puerto Rico and primarily includes the Regis salons concept, among other trade names.

The International reportable operating segment is comprised of 356 company-owned salons located in malls, department stores and high-traffic locations. International salons offer a full range of custom hair care and beauty services and retail products. This segment operates in the United Kingdom primarily under the Supercuts, Regis and Sassoon concepts.

Financial information concerning the Company's reportable operating segments is shown in the following table:

	Fiscal Years
	2015			2014			2013
	(Dollars in thousands)
Revenues(1):
North American Value salons	$	1,403,419		$	1,430,083		$	1,515,581
North American Premium salons	309,600			333,858			373,820
International salons	124,268			128,496			129,312
	$	1,837,287		$	1,892,437		$	2,018,713
Depreciation and amortization expense(1):
North American Value salons	$	56,832		$	66,038		$	56,364
North American Premium salons	13,094			15,859			15,893
International salons	3,148			5,227			5,222
Total segment depreciation and amortization expense	73,074			87,124			77,479
Unallocated Corporate	9,789			12,609			14,276
	$	82,863		$	99,733		$	91,755
Operating income (loss)(1)(2):
North American Value salons	$	122,597		$	117,832		$	142,260
North American Premium salons(3)	(14,238		)	(46,419		)	(13,694		)
International salons	313			(3,076		)	(1,660		)
Total segment operating income	108,672			68,337			126,906
Unallocated Corporate(2)	(105,141		)	(103,295		)	(113,547		)
Operating income (loss)(1)(2)	$	3,531		$	(34,958	)	$	13,359
Interest expense	(10,206		)	(22,290		)	(36,944		)
Interest income and other, net	1,697			1,952			35,366
Loss from continuing operations before income taxes and equity in loss of affiliated companies(2)	$	(4,978	)	$	(55,296	)	$	11,781

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(1) See Note 2 to the Consolidated Financial Statements for discussion of the classification of the results of operations of Hair Club as discontinued operations.

(2) Amounts for fiscal years 2014 and 2013 have been revised. See Note 1 to the Consolidated Financial Statements.

(3) Included in the North American Premium salons segment's operating loss for fiscal year 2014 is a goodwill impairment charge of 34.9 million.

The Company's chief operating decision maker does not evaluate reportable segments using assets and capital expenditure information.

Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows:

	June 30,
	2015				2014				2013
	Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net
	(Dollars in thousands)
U.S.	$	1,585,672	$	198,471	$	1,626,794	$	240,460	$	1,737,517	$	285,111
Other countries	251,615		19,686		265,643		26,078		281,196		28,349
Total	$	1,837,287	$	218,157	$	1,892,437	$	266,538	$	2,018,713	$	313,460