SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2016

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. The Company has three operating segments: North American Value, North American Premium and International.

The North American Value reportable operating segment is comprised of 8,280 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 680 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 328 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
	2016			2015			2014
	(Dollars in thousands)
Revenues:
North American Value salons	$	1,395,339		$	1,403,419		$	1,430,083
North American Premium salons	283,438			309,600			333,858
International salons	112,092			124,268			128,496
	$	1,790,869		$	1,837,287		$	1,892,437
Depreciation and amortization expense:
North American Value salons	$	46,676		$	56,832		$	66,038
North American Premium salons	7,892			13,094			15,859
International salons	2,843			3,148			5,227
Total segment depreciation and amortization expense	57,411			73,074			87,124
Unallocated Corporate	10,059			9,789			12,609
	$	67,470		$	82,863		$	99,733
Operating income (loss):
North American Value salons	$	130,016		$	122,597		$	117,832
North American Premium salons(1)	(12,796		)	(14,238		)	(46,419		)
International salons	(1,882		)	313			(3,076		)
Total segment operating income	115,338			108,672			68,337
Unallocated Corporate	(97,724		)	(105,141		)	(103,295		)
Operating income (loss)	17,614			3,531			(34,958		)
Interest expense	(9,317		)	(10,206		)	(22,290		)
Interest income and other, net	4,219			1,697			1,952
Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies	$	12,516		$	(4,978	)	$	(55,296	)

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(1) 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,
	2016				2015				2014
	Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net
	(Dollars in thousands)
U.S.	$	1,563,023	$	167,613	$	1,585,672	$	198,471	$	1,626,794	$	240,460
Other countries	227,846		15,708		251,615		19,686		265,643		26,078
Total	$	1,790,869	$	183,321	$	1,837,287	$	218,157	$	1,892,437	$	266,538