SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2017

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 fourth quarter of fiscal year 2017, the Company redefined its operating segments to reflect how the chief operating decision maker now evaluates the business as a result of the increased focus on the franchise business as a result of a number of factors including appointing a President of Franchise in April 2017. The Company now reports its operations in four operating segments: North American Value, North American Franchise, North American Premium and International. The Company's operating segments are its reportable operating segments. Prior to this change, the Company had three operating segments: North American Value, North American Premium, and International. The Company did not operate under the realigned operating segment structure prior to the fourth quarter of fiscal year 2017.

The North American Value reportable operating segment is comprised of 5,439 company-owned 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 Franchise reportable operating segment is comprised of 2,633 franchised salons located mainly in strip center locations, and Walmart Supercenters. North American Franchise salons offer high quality, convenient and value priced hair care and beauty services and retail products. This segment operates in the United States and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, Roosters and Magicuts concepts.

The North American Premium reportable operating segment is comprised of 559 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 275 company-owned and 13 franchised 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.

Concurrent with the change in reportable segments, the Company recast its prior period financial information to reflect comparable financial information for the new segment structure. Historical financial information shown in the following table and elsewhere in this filing reflects this change. Financial information concerning the Company's reportable operating segments is shown in the following table:

	For the Year Ended June 30, 2017
	North American Value		North American Franchise		North American Premium			International			Corporate			Consolidated
	(Dollars in thousands)
Revenues:
Service	$	1,035,900	$	—	$	200,732		$	71,100		$	—		$	1,307,732
Product	244,500		30,548		40,769			20,048			—			335,865
Royalties and fees	—		47,973		—			318			—			48,291
	1,280,400		78,521		241,501			91,466			—			1,691,888
Operating expenses:
Cost of service	657,013		—		140,743			40,436			—			838,192
Cost of product	112,156		22,640		20,571			10,977			—			166,344
Site operating expenses	136,895		—		24,885			6,659			—			168,439
General and administrative	44,344		21,193		12,130			8,480			88,355			174,502
Rent	200,700		170		53,253			24,321			844			279,288
Depreciation and amortization	45,737		357		8,260			2,515			9,458			66,327
Total operating expenses	1,196,845		44,360		259,842			93,388			98,657			1,693,092
Operating income (loss)	83,555		34,161		(18,341		)	(1,922		)	(98,657		)	(1,204		)
Other (expense) income:
Interest expense	—		—		—			—			(8,703		)	(8,703		)
Interest income and other, net	—		—		—			—			3,072			3,072
Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies	$	83,555	$	34,161	$	(18,341	)	$	(1,922	)	$	(104,288	)	$	(6,835	)

	For the Year Ended June 30, 2016
	North American Value		North American Franchise		North American Premium			International			Corporate			Consolidated
	(Dollars in thousands)
Revenues:
Service	$	1,064,109	$	—	$	233,520		$	86,034		$	—		$	1,383,663
Product	252,301		31,406		49,918			26,058			—			359,683
Royalties and fees	—		47,523		—			—			—			47,523
	1,316,410		78,929		283,438			112,092			—			1,790,869
Operating expenses:
Cost of service	659,140		—		161,466			47,582			—			868,188
Cost of product	117,464		23,086		24,573			14,218			—			179,341
Site operating expenses	145,494		—		29,751			7,707			—			182,952
General and administrative	44,881		21,472		14,408			10,663			86,609			178,033
Rent	206,948		162		58,144			30,961			1,056			297,271
Depreciation and amortization	46,313		363		7,892			2,843			10,059			67,470
Total operating expenses	1,220,240		45,083		296,234			113,974			97,724			1,773,255
Operating income (loss)	96,170		33,846		(12,796		)	(1,882		)	(97,724		)	17,614
Other (expense) income:
Interest expense	—		—		—			—			(9,317		)	(9,317		)
Interest income and other, net	—		—		—			—			4,219			4,219
Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies	$	96,170	$	33,846	$	(12,796	)	$	(1,882	)	$	(102,822	)	$	12,516

	For the Year Ended June 30, 2015
	North American Value		North American Franchise		North American Premium			International		Corporate			Consolidated
	(Dollars in thousands)
Revenues:
Service	$	1,081,704	$	—	$	253,520		$	94,184	$	—		$	1,429,408
Product	247,316		29,756		56,080			30,084		—			363,236
Royalties and fees	—		44,643		—			—		—			44,643
	1,329,020		74,399		309,600			124,268		—			1,837,287
Operating expenses:
Cost of service	656,069		—		174,733			51,915		—			882,717
Cost of product	115,116		22,031		28,095			15,316		—			180,558
Site operating expenses	152,739		—		30,769			8,934		—			192,442
General and administrative	44,562		21,296		15,431			11,533		93,229			186,051
Rent	211,885		292		61,716			33,109		2,123			309,125
Depreciation and amortization	56,407		425		13,094			3,148		9,789			82,863
Total operating expenses	1,236,778		44,044		323,838			123,955		105,141			1,833,756
Operating income (loss)	92,242		30,355		(14,238		)	313		(105,141		)	3,531
Other (expense) income:
Interest expense	—		—		—			—		(10,206		)	(10,206		)
Interest income and other, net	—		—		—			—		1,697			1,697
Income (loss) from continuing operations before income taxes and equity in loss of affiliated companies	$	92,242	$	30,355	$	(14,238	)	$	313	$	(113,650	)	$	(4,978	)

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,
	2017				2016				2015
	Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net
	(Dollars in thousands)
U.S.	$	1,486,502	$	132,554	$	1,563,023	$	167,613	$	1,585,672	$	198,471
Other countries	205,386		14,440		227,846		15,708		251,615		19,686
Total	$	1,691,888	$	146,994	$	1,790,869	$	183,321	$	1,837,287	$	218,157