SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

15. SEGMENT INFORMATION

        As of June 30, 2012, the Company owned, franchised or held ownership interests in approximately 12,600 worldwide locations. The Company's locations consisted of 9,340 North American salons (located in the U.S., Canada and Puerto Rico), 398 international salons, 98 hair restoration centers, and 2,811 locations in which the Company maintains a non-controlling ownership interest through its investments in affiliates.

        The Company operates its North American salon operations through five primary concepts: Regis Salons, MasterCuts, SmartStyle, Supercuts and Promenade salons. The concepts offer similar products and services, concentrate on the mass market consumer marketplace and have consistent distribution channels. All of the company-owned and franchise salons within the North American salon concepts are located in high traffic, retail shopping locations that attract mass market consumers, and the individual salons display similar long-term economic characteristics. The salons share interdependencies and a common support base.

        The Company operates its International salon operations, primarily in the United Kingdom, through three primary concepts: Regis, Supercuts, and Sassoon salons. Consistent with the North American concepts, the international concepts offer similar products and services, concentrate on the mass market consumer marketplace and have consistent distribution channels. All of the international salon concepts are company-owned and are located in malls, leading department stores, and high-street locations. Individual salons display similar long-term economic characteristics. The salons share interdependencies and a common support base.

        The Company's company-owned and franchise hair restoration centers are located in the U.S. and Canada. The Company's hair restoration centers offer three hair restoration solutions; hair systems, hair transplants, and hair therapy, which are targeted at the mass market consumer. Hair restoration centers are located primarily in office and professional buildings within larger metropolitan areas.

        Based on the way the Company manages its business, it has reported its North American salons, International salons, and Hair Restoration Centers as three separate reportable segments.

        The accounting policies of the reportable operating segments are the same as those described in Note 1 to the Consolidated Financial Statements. Intersegment sales and transfers are not significant. Summarized financial information concerning the Company's reportable operating segments is shown in the following table as of June 30, 2012, 2011, and 2010:

	For the Year Ended June 30, 2012
	Salons
					Hair Restoration Centers			Unallocated Corporate
	North America		International								Consolidated
	(Dollars in thousands)
Revenues:
Service	$	1,541,491	$	102,400	$	68,812		$	—		$	1,712,703
Product		401,326		38,722		80,419			—			520,467
Royalties and fees		38,288		—		2,321			—			40,609
		1,981,105		141,122		151,552			—			2,273,779
Operating expenses:
Cost of service		888,777		53,684		42,693			—			985,154
Cost of product		201,625		20,010		28,020			—			249,655
Site operating expenses		182,524		9,722		6,479			—			198,725
General and administrative		113,952		12,024		36,436			140,160			302,572
Rent		292,192		37,880		9,036			1,697			340,805
Depreciation and amortization		68,983		5,297		13,101			30,690			118,071
Goodwill impairment		67,684		—		78,426			—			146,110
Total operating expenses		1,815,737		138,617		214,191			172,547			2,341,092
Operating income (loss)		165,368		2,505		(62,639	)		(172,547	)		(67,313	)
Other income (expense):
Interest expense		—		—		—			(28,245	)		(28,245	)
Interest income and other, net		—		—		—			5,130			5,130
Income (loss) from continuing operations before income taxes and equity in (loss) income of affiliated companies	$	165,368	$	2,505	$	(62,639	)	$	(195,662	)	$	(90,428	)

	For the Year Ended June 30, 2011
	Salons
					Hair Restoration Centers		Unallocated Corporate
	North America		International							Consolidated
	(Dollars in thousands)
Revenues:
Service	$	1,588,690	$	106,734	$	67,550	$	—		$	1,762,974
Product		403,962		43,503		75,729		—			523,194
Royalties and fees		37,292		—		2,409		—			39,701
		2,029,944		150,237		145,688		—			2,325,869
Operating expenses:
Cost of service		919,526		54,213		39,129		—			1,012,868
Cost of product		201,560		23,631		24,788		—			249,979
Site operating expenses		183,552		9,852		4,318		—			197,722
General and administrative		122,281		12,630		37,038		167,908			339,857
Rent		292,479		38,423		9,227		2,157			342,286
Depreciation and amortization		69,763		4,750		12,958		17,638			105,109
Goodwill impairment		74,100		—		—		—			74,100
Lease termination costs		—		—		—		—			—
Total operating expenses		1,863,261		143,499		127,458		187,703			2,321,921
Operating income (loss)		166,683		6,738		18,230		(187,703	)		3,948
Other income (expense):
Interest expense		—		—		—		(34,388	)		(34,388	)
Interest income and other, net		—		—		—		4,811			4,811
Income (loss) from continuing operations before income taxes and equity in (loss) income of affiliated companies	$	166,683	$	6,738	$	18,230	$	(217,280	)	$	(25,629	)

	For the Year Ended June 30, 2010
	Salons
					Hair Restoration Centers		Unallocated Corporate
	North America		International							Consolidated
	(Dollars in thousands)
Revenues:
Service	$	1,605,979	$	111,833	$	66,325	$	—		$	1,784,137
Product		417,363		44,252		72,978		—			534,593
Royalties and fees		37,221		—		2,483		—			39,704
		2,060,563		156,085		141,786		—			2,358,434
Operating expenses:
Cost of service		920,905		57,657		37,158		—			1,015,720
Cost of product		219,745		22,570		21,568		—			263,883
Site operating expenses		183,881		10,152		5,305		—			199,338
General and administrative		113,956		13,115		36,207		128,713			291,991
Rent		294,263		38,681		9,013		2,141			344,098
Depreciation and amortization		72,681		4,986		12,198		18,899			108,764
Goodwill impairment		35,277		—		—		—			35,277
Lease termination costs		—		2,145		—		—			2,145
Total operating expenses		1,840,708		149,306		121,449		149,753			2,261,216
Operating income (loss)		219,855		6,779		20,337		(149,753	)		97,218
Other income (expense):
Interest expense		—		—		—		(54,414	)		(54,414	)
Interest income and other, net		—		—		—		10,410			10,410
Income (loss) from continuing operations before income taxes and equity in (loss) income of affiliated companies	$	219,855	$	6,779	$	20,337	$	(193,757	)	$	53,214

        Total revenues and long-lived assets associated with business operations in the U.S. and all other countries in aggregate were as follows:

	Year Ended June 30,
	2012				2011				2010
	Total Revenues		Long-lived Assets		Total Revenues		Long-lived Assets		Total Revenues		Long-lived Assets
	(Dollars in thousands)
U.S.	$	1,967,349	$	291,972	$	2,007,042	$	314,406	$	2,055,059	$	327,753
Other countries		306,430		31,088		318,827		33,405		303,375		31,497
Total	$	2,273,779	$	323,060	$	2,325,869	$	347,811	$	2,358,434	$	359,250