XML 35 R23.htm IDEA: XBRL DOCUMENT v3.21.2
LEASES (Tables)
 3 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Schedule of Real Estate Taxes and Other Occupancy Expenses Total rent includes the following:
Three Months Ended September 30,
20212020
(Dollars in thousands)
Office and warehouse rent $1,669 $1,203 
Lease termination expense (1)1,340 5,554 
Lease liability benefit (2)(2,431)(6,061)
Franchise salon rent329 718 
Company-owned salon rent896 11,811 
Total$1,803 $13,225 
_______________________________________________________________________________
(1)During the three months ended September 30, 2021, the Company paid $0.9 million to exit its distribution centers before the lease end dates and incurred costs of $0.4 million to exit salons before the lease end date in order to relieve the Company of future lease obligations. For the three months ended September 30, 2020, lease termination fees includes $2.5 million of early termination payments to close salons before the lease end date to relieve the Company of future lease obligations and $3.1 million to accrue future lease payments for salons that are no longer operating.
(2)Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired.
Lessor, Future Operating Lease Commitments
As of September 30, 2021, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (in thousands):
Fiscal YearLeases for Franchise SalonsLeases for Company-owned SalonsCorporate LeasesTotal Operating Lease PaymentsSublease Income To Be Received From FranchiseesNet Rent Commitments
Remainder of 2022$96,767 $4,460 $2,071 $103,298 $(96,767)$6,531 
2023115,343 4,944 2,365 122,652 (115,343)7,309 
2024100,818 3,005 1,486 105,309 (100,818)4,491 
202584,740 1,013 1,525 87,278 (84,740)2,538 
202671,674 566 1,563 73,803 (71,674)2,129 
Thereafter177,274 904 6,498 184,676 (177,274)7,402 
Total future obligations$646,616 $14,892 $15,508 $677,016 $(646,616)$30,400 
Less amounts representing interest79,466 925 2,271 82,662 
Present value of lease liabilities$567,150 $13,967 $13,237 $594,354 
Less current lease liabilities106,010 5,407 2,168 113,585 
Long-term lease liabilities$461,140 $8,560 $11,069 $480,769 
Lessee, Future Operating Lease Commitments
As of September 30, 2021, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (in thousands):
Fiscal YearLeases for Franchise SalonsLeases for Company-owned SalonsCorporate LeasesTotal Operating Lease PaymentsSublease Income To Be Received From FranchiseesNet Rent Commitments
Remainder of 2022$96,767 $4,460 $2,071 $103,298 $(96,767)$6,531 
2023115,343 4,944 2,365 122,652 (115,343)7,309 
2024100,818 3,005 1,486 105,309 (100,818)4,491 
202584,740 1,013 1,525 87,278 (84,740)2,538 
202671,674 566 1,563 73,803 (71,674)2,129 
Thereafter177,274 904 6,498 184,676 (177,274)7,402 
Total future obligations$646,616 $14,892 $15,508 $677,016 $(646,616)$30,400 
Less amounts representing interest79,466 925 2,271 82,662 
Present value of lease liabilities$567,150 $13,967 $13,237 $594,354 
Less current lease liabilities106,010 5,407 2,168 113,585 
Long-term lease liabilities$461,140 $8,560 $11,069 $480,769