INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2011

INCOME TAXES

Components of (loss) income before income taxes

		2011			2010		2009
		(Dollars in thousands)
(Loss) income before income taxes:
	U.S.	$	(31,963	)	$	35,289	$	112,524
	International		6,334			17,925		(33,758	)
		$	(25,629	)	$	53,214	$	78,766

(Benefit) provision for income taxes

		2011			2010		2009
		(Dollars in thousands)
Current:
	U.S.	$	3,658		$	5,580	$	48,935
	International		1,557			14,882		(3,142	)
Deferred:
	U.S.		(17,882	)		4,007		568
	International		3,171			1,108		(4,411	)
		$	(9,496	)	$	25,577	$	41,950

Provision for income taxes, reconciliation to applicable U.S. statutory rate

	2011			2010			2009
U.S. statutory rate		(35.0	)%		35.0	%		35.0	%
State income taxes, net of federal income tax benefit		(0.1	)		3.4			3.4
Tax effect of goodwill impairment		10.8			11.4			14.5
Foreign income taxes at other than U.S. rates		7.9			(0.8	)		(1.6	)
Work Opportunity and Welfare-to-Work Tax Credits		(15.3	)		(6.4	)		(4.9	)
Adjustment of prior year income tax balances		—			3.9			4.8
Other, net		(5.4	)		1.6			2.1
		(37.1	)%		48.1	%		53.3	%

Components of the net deferred tax assets and liabilities

	2011			2010
	(Dollars in thousands)
Deferred tax assets:
Deferred rent	$	15,233		$	15,677
Payroll and payroll related costs		37,852			34,294
Net operating loss carryforwards		1,210			2,106
Salon asset impairment		5,176			4,154
Inventories		2,968			3,136
Derivatives		229			311
Deferred gift card revenue		1,536			1,581
Federal and state benefit on uncertain tax positions		8,549			10,178
Allowance for doubtful accounts/notes		9,855			575
Insurance		5,669			6,301
Other		6,167			5,481
Total deferred tax assets	$	94,444		$	83,794
Deferred tax liabilities:
Depreciation	$	(29,348	)	$	(17,603	)
Amortization of intangibles		(94,257	)		(107,392	)
Accrued property taxes		(1,942	)		(2,029	)
Deferred debt issuance costs		(6,215	)		(7,937	)
Other		(3	)		—
Total deferred tax liabilities	$	(131,765	)	$	(134,961	)
Net deferred tax liabilities	$	(37,321	)	$	(51,167	)

Unrecognized tax benefits

	2011			2010			2009
Balance at beginning of period	$	16,856		$	14,787		$	20,400
Additions based on tax positions related to the current year		796			5,549			2,765
(Reductions) additions based on tax positions of prior years		(759	)		(185	)		121
Reductions on tax positions related to the expiration of the statue of limitations		(2,718	)		(2,993	)		(8,167	)
Settlements		(682	)		(302	)		(332	)
Balance at end of period	$	13,493		$	16,856		$	14,787