Business Segments and Geographic Area Information (Tables)

12 Months Ended

Sep. 30, 2012

Business Segments and Geographic Area Information

Schedule of segment data

	Year Ended September 30,
	2012			2011			2010
Net sales:
Sally Beauty Supply	$	2,198,468		$	2,012,407		$	1,834,631
BSG		1,325,176			1,256,724			1,081,459
Total	$	3,523,644		$	3,269,131		$	2,916,090
Earnings before provision for income taxes:
Segment operating profit:
Sally Beauty Supply(a)	$	429,520		$	380,963		$	320,456
BSG(a)		182,699			164,660			112,495
Segment operating profit		612,219			545,623			432,951
Unallocated expenses(a)(b)		(96,012	)		(81,594	)		(79,203	)
Share-based compensation expense		(16,852	)		(15,560	)		(12,818	)
Interest expense(c)		(138,412	)		(112,530	)		(112,982	)
Total	$	360,943		$	335,939		$	227,948
Identifiable assets:
Sally Beauty Supply	$	864,598		$	766,896		$	729,380
BSG		959,784			908,093			808,842
Sub-total		1,824,382			1,674,989			1,538,222
Shared services		241,418			53,611			51,190
Total	$	2,065,800		$	1,728,600		$	1,589,412
Depreciation and amortization:
Sally Beauty Supply	$	31,397		$	28,763		$	26,426
BSG		25,984			25,099			20,081
Corporate		7,317			5,860			4,616
Total	$	64,698		$	59,722		$	51,123
Capital expenditures:
Sally Beauty Supply	$	42,158		$	34,946		$	30,366
BSG		11,977			14,145			11,252
Corporate		14,951			10,864			7,084
Total	$	69,086		$	59,955		$	48,702

(a)

For the fiscal year 2012, Sally Beauty Supply's operating profit reflects a $10.2 million charge resulting from a loss contingency. For the fiscal year ended September 30, 2011, consolidated operating earnings reflect a net favorable impact of $21.3 million; including a $27.0 million credit from a litigation settlement and certain non-recurring charges of $5.7 million. This net benefit of $21.3 million is reflected in the BSG segment and in unallocated expenses in the amount of $19.0 million and $2.3 million, respectively.

(b)

Unallocated expenses consist of corporate and shared costs.

(c)

For the fiscal year ended September 30, 2012, interest expense includes losses on extinguishment of debt in the aggregate amount of $37.8 million in connection with the Company's redemption of the senior notes due 2014 and senior subordinated notes due 2016, and repayment of the senior term loan B, with the net proceeds of the Company's new senior notes due 2019 and/or the senior notes due 2022.

Schedule of geographic data

	Year Ended September 30,
	2012		2011		2010
Net sales:(a)
United States	$	2,885,958	$	2,688,062	$	2,402,085
Foreign		637,686		581,069		514,005
Total	$	3,523,644	$	3,269,131	$	2,916,090
Identifiable assets:
United States	$	1,325,787	$	1,240,894	$	1,133,652
Foreign		498,595		434,095		404,570
Shared services		241,418		53,611		51,190
Total	$	2,065,800	$	1,728,600	$	1,589,412

(a)

Net sales are attributable to individual countries based on the location of the customer.