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LEASE TERMINATION COSTS

12 Months Ended

Jun. 30, 2011

11. LEASE TERMINATION COSTS

The Company approved plans in June 2009 and July 2008 to close approximately 80 and 160, respectively, underperforming company-owned salons. As lease settlements were negotiated, the Company found that some lessors were willing to negotiate rent reductions which allowed the Company to keep operating certain salons. As a result, the number of salons closed was less than the amount of salons per the approved plans. For salons that did not receive rent reductions, the Company ceased using the right to use the leased property or negotiated a lease termination agreement with the lessors. Lease termination costs represents either the lease settlement or the net present value of remaining contractual lease payments related to closed salons, reduced by estimated sublease rentals. Lease termination costs from continuing operations are presented as a separate line item in the Consolidated Statement of Operations. The plans are substantially complete.

The activity reflected in the accrual for lease termination costs is as follows:

			For the Twelve Months Ended June 30,

Accrual for Lease Terminations			2011			2010
			(Dollars in thousands)
Balance at July 1,			$	1,386		$	2,760
	Provision for lease termination costs:
		Provisions associated with store closings		—			2,145
		Cash payments		(1,059	)		(3,519	)

Balance at June 30,			$	327		$	1,386

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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