INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2012

INCOME TAXES

Components of (loss) income before income taxes

	2012			2011			2010
	(Dollars in thousands)
(Loss) income before income taxes:
U.S.	$	(100,792	)	$	(31,963	)	$	35,289
International		10,364			6,334			17,925
	$	(90,428	)	$	(25,629	)	$	53,214

(Benefit) provision for income taxes

	2012			2011			2010
	(Dollars in thousands)
Current:
U.S.	$	6,493		$	3,658		$	5,580
International		2,399			1,557			14,882
Deferred:
U.S.		(13,984	)		(17,882	)		4,007
International		(187	)		3,171			1,108
	$	(5,279	)	$	(9,496	)	$	25,577

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

	2012			2011			2010
U.S. statutory rate (benefit)		(35.0	)%		(35.0	)%		35.0	%
State income taxes, net of federal income tax benefit		0.8			0.7			5.9
Tax effect of goodwill impairment		37.9			10.4			12.1
Foreign income taxes at other than U.S. rates		(0.2	)		7.9			(0.8	)
Work Opportunity and Welfare-to-Work Tax Credits		(5.4	)		(15.7	)		(7.0	)
Adjustment of prior year income tax balances		—			—			3.9
Other, net		(3.9	)		(5.4	)		(1.0	)
		(5.8	)%		(37.1	)%		48.1	%

Components of the net deferred tax assets and liabilities

	2012			2011
	(Dollars in thousands)
Deferred tax assets:
Deferred rent	$	15,226		$	15,233
Payroll and payroll related costs		44,454			37,852
Net operating loss carryforwards		797			1,210
Salon asset impairment		5,038			5,176
Inventories		3,027			2,968
Deferred gift card revenue		745			1,536
Federal and state benefit on uncertain tax positions		2,113			8,549
Allowance for doubtful accounts/notes		5,180			9,855
Insurance		6,439			5,669
Other		6,963			6,396
Total deferred tax assets	$	89,982		$	94,444
Deferred tax liabilities:
Depreciation	$	(17,984	)	$	(29,348	)
Amortization of intangibles		(86,431	)		(94,257	)
Accrued property taxes		(2,079	)		(1,942	)
Deferred debt issuance costs		(4,336	)		(6,215	)
Other		(23	)		(3	)
Total deferred tax liabilities	$	(110,853	)	$	(131,765	)
Net deferred tax liabilities	$	(20,871	)	$	(37,321	)

Unrecognized tax benefits

	2012			2011			2010
Balance at beginning of period	$	13,493		$	16,856		$	14,787
Additions based on tax positions related to the current year		482			796			5,549
(Reductions)/additions based on tax positions of prior years		(7	)		(759	)		(185	)
Reductions on tax positions related to the expiration of the statute of limitations		(1,571	)		(2,718	)		(2,993	)
Settlements		(8,016	)		(682	)		(302	)
Balance at end of period	$	4,381		$	13,493		$	16,856