XML 34 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
GOODWILL
 12 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL
GOODWILL
The table below contains details related to the Company's goodwill:
 
 
June 30,
 
 
2018
 
2017
 
 
Gross
Carrying
Value (2)
 
Accumulated
Impairment (1)
 
Net
 
Gross
Carrying
Value (2)
 
Accumulated
Impairment (1)
 
Net
 
 
(Dollars in thousands)
Goodwill
 
$
486,743

 
$
(74,100
)
 
$
412,643

 
$
491,087

 
$
(74,100
)
 
$
416,987

_______________________________________________________________________________

(1)
In fiscal year 2011 the Company realized a $74.1 million goodwill impairment loss associated with the Company-owned reporting unit (the previous North American Value reporting unit).
(2)
The change in the gross carrying value of goodwill relates to foreign currency translation adjustments.
The table below contains details related to the Company's goodwill:
 
 
Company-owned
 
Franchise
 
Consolidated
 
 
(Dollars in thousands)
Goodwill, net at June 30, 2016
 
$
189,218

 
$
228,175

 
$
417,393

Translation rate adjustments
 
(63
)
 
(76
)
 
(139
)
Derecognition related to sale of salon assets to franchisees (1)
 
(267
)
 
—

 
(267
)
Goodwill, net at June 30, 2017
 
188,888

 
228,099

 
416,987

Translation rate adjustments
 
(201
)
 
(244
)
 
(445
)
Derecognition related to sale of salon assets to franchisees (1)
 
(3,899
)
 
—

 
(3,899
)
Goodwill, net at June 30, 2018
 
$
184,788

 
$
227,855

 
$
412,643

_______________________________________________________________________________
(1)
Goodwill is derecognized for salons sold to franchisees with positive cash flows. The amount of goodwill derecognized is determined by a fraction (the numerator of which is the trailing-twelve months EBITDA of the salon being sold and the denominator of which is the estimated annualized EBITDA of the Company-owned reporting unit) that is applied to the total goodwill balance of the Company-owned reporting unit.