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CONSOLIDATED STATEMENT OF CASH FLOWS
$ in Thousands
12 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2016
USD ($)
Cash flows from operating activities:      
Net income (loss) $ 8,701 $ (16,140) $ (11,316)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Non-cash impairment related to discontinued operations 38,826 0 0
Depreciation and amortization 39,433 40,722 42,411
Depreciation related to discontinued operations 3,738 14,239 14,581
Equity in loss of affiliated companies 0 81 14,783
Deferred income taxes (75,863) 7,962 7,023
Gain on life insurance proceeds (7,986) 0 0
Gain from sale of salon assets to franchisees, net (241) [1] (492) [1] (1,000) [1]
Loss on write down of inventories 0 5,905 0
Salon asset impairments 11,092 11,366 10,478
Accumulated other comprehensive income reclassification adjustments (Note 2) 6,152 0 0
Stock-based compensation 8,269 13,142 9,797
Amortization of debt discount and financing costs 4,080 1,403 1,514
Other non-cash items affecting earnings (294) 935 310
Changes in operating assets and liabilities:      
Receivables (12,081) [2] 724 [2] (577) [2]
Inventories 13,940 [2] 4,010 [2] (7,109) [2]
Income tax receivable 527 [2] (535) [2] 501 [2]
Other current assets (23) [2] 820 [2] (460) [2]
Other assets (11,229) [2] (2,586) [2] (1,133) [2]
Accounts payable (1,103) [2] (684) [2] (4,624) [2]
Accrued expenses (12,526) [2] (13,667) [2] (14,280) [2]
Other noncurrent liabilities (11,084) [2] (7,150) [2] (5,113) [2]
Net cash provided by operating activities 2,328 60,055 55,786
Cash flows from investing activities:      
Capital expenditures (29,571) (26,572) (23,151)
Capital expenditures related to discontinued operations (1,171) (7,271) (7,966)
Proceeds from sale of salon assets to franchisees 11,582 [1] 2,253 [1] 1,740 [1]
Change in restricted cash (524) 1,123 9,042
Proceeds from company-owned life insurance policies 18,108 876 2,948
Proceeds from sale of investment 0 500 0
Net cash used in investing activities (1,576) (29,091) (17,387)
Cash flows from financing activities:      
Borrowings on revolving credit facilities 90,000 0 0
Repayments of long-term debt and capital lease obligations (124,230) 0 (2)
Repurchase of common stock (24,798) 0 (101,035)
Purchase of noncontrolling interest 0 0 (760)
Employee taxes paid for shares withheld (2,413) (3,698) (754)
Settlement of equity awards (794) (3,151) 0
Net cash used in financing activities (62,235) (6,849) (102,551)
Effect of exchange rate changes on cash and cash equivalents (514) 935 (781)
(Decrease) increase in cash and cash equivalents (61,997) 25,050 (64,933)
Cash and cash equivalents:      
Beginning of year 110,399 171,044 147,346
Cash and cash equivalents included in current assets held for sale   1,352 0
Beginning of year, total cash and cash equivalents 172,396 147,346 212,279
End of year $ 110,399 $ 172,396 $ 147,346
[1] Excludes transaction with The Beautiful Group.
[2] Changes in operating assets and liabilities exclude assets and liabilities sold or acquired.