SEGMENT INFORMATION

3 Months Ended

Sep. 30, 2011

SEGMENT INFORMATION:

SEGMENT INFORMATION:

11.          SEGMENT INFORMATION:

As of September 30, 2011, the Company owned, franchised, or held ownership interests in approximately 12,770 worldwide locations. The Company’s locations consisted of 9,470 North American salons (located in the United States, Canada and Puerto Rico), 397 international salons, 97 hair restoration centers and approximately 2,800 locations in which the Company maintains an ownership interest.

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 United States 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.

Financial information for the Company’s reporting segments is shown in the following tables:

Total Assets by Segment	September 30, 2011		June 30, 2011
	(Dollars in thousands)
North American salons	$	873,114	$	881,526
International salons	69,541		69,932
Hair restoration centers	305,772		306,005
Unallocated corporate	523,793		548,290
Consolidated	$	1,772,220	$	1,805,753

	For the Three Months Ended September 30, 2011
	Salons				Hair Restoration		Unallocated
	North America		International		Centers		Corporate			Consolidated
	(Dollars in thousands)
Revenues:
Service	$	390,164	$	24,853	$	16,683	$	—		$	431,700
Product	98,137		8,636		20,144		—			126,917
Royalties and fees	9,556		—		576		—			10,132
	497,857		33,489		37,403		—			568,749
Operating expenses:
Cost of service	223,279		12,690		10,042		—			246,011
Cost of product	48,444		4,579		6,956		—			59,979
Site operating expenses	48,296		2,675		1,484		—			52,455
General and administrative	29,706		2,925		9,273		36,775			78,679
Rent	73,215		8,764		2,271		197			84,447
Depreciation and amortization	17,970		1,306		3,309		11,521			34,106
Total operating expenses	440,910		32,939		33,335		48,493			555,677
Operating income (loss)	56,947		550		4,068		(48,493		)	13,072
Other income (expense):
Interest expense	—		—		—		(7,360		)	(7,360		)
Interest income and other, net	—		—		—		1,316			1,316
Income (loss) before income taxes and equity in income of affiliated companies	$	56,947	$	550	$	4,068	$	(54,537	)	$	7,028

	For the Three Months Ended September 30, 2010
	Salons				Hair Restoration		Unallocated
	North America		International		Centers		Corporate			Consolidated
	(Dollars in thousands)
Revenues:
Service	$	397,321	$	25,363	$	16,845	$	—		$	439,529
Product	100,120		9,695		18,790		—			128,605
Royalties and fees	9,492		—		619		—			10,111
	506,933		35,058		36,254		—			578,245
Operating expenses:
Cost of service	227,297		12,728		9,476		—			249,501
Cost of product	49,733		5,245		6,097		—			61,075
Site operating expenses	46,329		2,190		490		—			49,009
General and administrative	29,878		2,952		8,579		32,665			74,074
Rent	73,618		8,670		2,264		556			85,108
Depreciation and amortization	17,232		1,087		3,143		4,582			26,044
Total operating expenses	444,087		32,872		30,049		37,803			544,811
Operating income (loss)	62,846		2,186		6,205		(37,803		)	33,434
Other income (expense):
Interest expense	—		—		—		(8,923		)	(8,923		)
Interest income and other, net	—		—		—		777			777
Income (loss) before income taxes and equity in income of affiliated companies	$	62,846	$	2,186	$	6,205	$	(45,949	)	$	25,288