Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements (Tables)

9 Months Ended

Jun. 30, 2018

Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

June 30, 2018

(In thousands)

	Parent			Sally HoldingsLLC and Sally Capital Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			SallyBeauty Holdings, Inc. and Subsidiaries
Assets
Cash and cash equivalents	$	—		$	10	$	27,386		$	49,459		$	—		$	76,855
Trade and other accounts receivable, net		—			—		59,773			34,812			—			94,585
Due from affiliates		—			—		2,542,180			—			(2,542,180	)		—
Inventory		—			—		720,360			230,618			—			950,978
Other current assets		2,755			267		24,741			14,326			—			42,089
Property and equipment, net		9			—		221,685			74,920			—			296,614
Investment in subsidiaries		1,309,860			3,968,488		371,610			—			(5,649,958	)		—
Goodwill and other intangible assets, net		—			—		461,468			150,381			—			611,849
Other assets		1,050			10,683		(7,850	)		18,859			—			22,742
Total assets	$	1,313,674		$	3,979,448	$	4,421,353		$	573,375		$	(8,192,138	)	$	2,095,712
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	$	85		$	—	$	242,602		$	67,801		$	—		$	310,488
Due to affiliates		1,627,792			823,046		—			91,342			(2,542,180	)		—
Accrued liabilities		256			6,188		126,664			33,397			—			166,505
Income taxes payable		1,578			1,850		—			(280	)		—			3,148
Long-term debt		—			1,837,416		2			888			—			1,838,306
Other liabilities		10,371			—		19,347			4,056			—			33,774
Deferred income tax liabilities, net		(199	)		1,088		64,250			4,561			—			69,700
Total liabilities		1,639,883			2,669,588		452,865			201,765			(2,542,180	)		2,421,921
Total stockholders’ (deficit) equity		(326,209	)		1,309,860		3,968,488			371,610			(5,649,958	)		(326,209	)
Total liabilities and stockholders’ (deficit) equity	$	1,313,674		$	3,979,448	$	4,421,353		$	573,375		$	(8,192,138	)	$	2,095,712

Condensed Consolidating Balance Sheet

September 30, 2017

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Assets
Cash and cash equivalents	$	—		$	10	$	22,090		$	41,659	$	—		$	63,759
Trade and other accounts receivable, net		200			—		59,992			32,049		—			92,241
Due from affiliates		—			—		2,289,371			—		(2,289,371	)		—
Inventory		—			—		709,890			220,965		—			930,855
Other current assets		11,763			813		26,144			16,503		—			55,223
Property and equipment, net		12			—		230,069			83,636		—			313,717
Investment in subsidiaries		1,110,891			3,717,999		386,681			—		(5,215,571	)		—
Goodwill and other intangible assets, net		—			—		468,118			149,978		—			618,096
Other assets		1,538			8,116		(7,837	)		23,299		—			25,116
Total assets	$	1,124,404		$	3,726,938	$	4,184,518		$	568,089	$	(7,504,942	)	$	2,099,007
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	$	251		$	4	$	243,818		$	63,679	$	—		$	307,752
Due to affiliates		1,487,484			727,856		—			74,031		(2,289,371	)		—
Accrued liabilities		285			20,108		113,628			32,506		—			166,527
Income taxes payable		—			1,624		—			609		—			2,233
Long-term debt		—			1,866,455		1			1,479		—			1,867,935
Other liabilities		—			—		16,008			4,132		—			20,140
Deferred income tax liabilities, net		—			—		93,064			4,972		—			98,036
Total liabilities		1,488,020			2,616,047		466,519			181,408		(2,289,371	)		2,462,623
Total stockholders’ (deficit) equity		(363,616	)		1,110,891		3,717,999			386,681		(5,215,571	)		(363,616	)
Total liabilities and stockholders’ (deficit) equity	$	1,124,404		$	3,726,938	$	4,184,518		$	568,089	$	(7,504,942	)	$	2,099,007

Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income

Condensed Consolidating Statement of Earnings and Comprehensive Income

Three Months Ended June 30, 2018

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net sales	$	—		$	—		$	798,185	$	198,098		$	—		$	996,283
Related party sales		—			—			639		—			(639	)		—
Cost of products sold and distribution expenses		—			—			399,482		104,070			(639	)		502,913
Gross profit		—			—			399,342		94,028			—			493,370
Selling, general and administrative expenses		2,777			367			292,178		83,276			—			378,598
Restructuring charges		—			—			12,544		—			—			12,544
Operating earnings (loss)		(2,777	)		(367	)		94,620		10,752			—			102,228
Interest expense (income)		—			24,510			2		(11	)		—			24,501
Earnings (loss) before provision for income taxes		(2,777	)		(24,877	)		94,618		10,763			—			77,727
Provision (benefit) for income taxes		(804	)		(7,206	)		23,823		3,688			—			19,501
Equity in earnings of subsidiaries, net of tax		60,199			77,870			7,075		—			(145,144	)		—
Net earnings		58,226			60,199			77,870		7,075			(145,144	)		58,226
Other comprehensive income (loss), net of tax		—			308			—		(22,168	)		—			(21,860	)
Total comprehensive income (loss)	$	58,226		$	60,507		$	77,870	$	(15,093	)	$	(145,144	)	$	36,366

Condensed Consolidating Statement of Earnings and Comprehensive Income

Three Months Ended June 30, 2017

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net sales	$	—		$	—		$	814,423		$	183,620	$	—		$	998,043
Related party sales		—			—			648					(648	)		—
Cost of products sold and distribution expenses		—			—			398,707			97,345		(648	)		495,404
Gross profit		—			—			416,364			86,275		—			502,639
Selling, general and administrative expenses		2,726			81			285,433			79,007		—			367,247
Restructuring charges		—			—			5,054			—		—			5,054
Operating earnings (loss)		(2,726	)		(81	)		125,877			7,268		—			130,338
Interest expense (income)		—			26,952			(1	)		18		—			26,969
Earnings (loss) before provision for income taxes		(2,726	)		(27,033	)		125,878			7,250		—			103,369
Provision (benefit) for income taxes		(1,058	)		(10,500	)		44,929			3,459					36,830
Equity in earnings of subsidiaries, net of tax		68,207			84,740			3,791			—		(156,738	)		—
Net earnings		66,539			68,207			84,740			3,791		(156,738	)		66,539
Other comprehensive income, net of tax		—			—			—			17,686					17,686
Total comprehensive income	$	66,539		$	68,207		$	84,740		$	21,477	$	(156,738	)	$	84,225

Condensed Consolidating Statement of Earnings and Comprehensive Income

Nine Months Ended June 30, 2018

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net sales	$	—		$	—		$	2,381,460		$	585,108		$	—		$	2,966,568
Related party sales		—			—			1,716			—			(1,716	)		—
Cost of products sold and distribution expenses		—			—			1,194,183			307,780			(1,716	)		1,500,247
Gross profit		—			—			1,188,993			277,328			—			1,466,321
Selling, general and administrative expenses		8,242			1,148			856,080			252,875			—			1,118,345
Restructuring charges		—			—			24,513			—			—			24,513
Operating earnings (loss)		(8,242	)		(1,148	)		308,400			24,453			—			323,463
Interest expense (income)		—			73,817			(1	)		(37	)		—			73,779
Earnings (loss) before provision for income taxes		(8,242	)		(74,965	)		308,401			24,490			—			249,684
Provision (benefit) for income taxes		(1,883	)		(21,630	)		46,666			23,670			—			46,823
Equity in earnings of subsidiaries, net of tax		209,220			262,555			820			—			(472,595	)		—
Net earnings		202,861			209,220			262,555			820			(472,595	)		202,861
Other comprehensive income (loss), net of tax		—			1,815			—			(11,986	)		—			(10,171	)
Total comprehensive income (loss)	$	202,861		$	211,035		$	262,555		$	(11,166	)	$	(472,595	)	$	192,690

Condensed Consolidating Statement of Earnings and Comprehensive Income

Nine Months Ended June 30, 2017

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net sales	$	—		$	—		$	2,429,104		$	535,018	$	—		$	2,964,122
Related party sales		—			—			1,991					(1,991	)		—
Cost of products sold and distribution expenses		—			—			1,201,427			282,233		(1,991	)		1,481,669
Gross profit		—			—			1,229,668			252,785		—			1,482,453
Selling, general and administrative expenses		8,098			412			859,791			233,054		—			1,101,355
Restructuring charges		—			—			14,265			—		—			14,265
Operating earnings (loss)		(8,098	)		(412	)		355,612			19,731		—			366,833
Interest expense (income)		—			80,560			(1	)		57		—			80,616
Earnings (loss) before provision for income taxes		(8,098	)		(80,972	)		355,613			19,674		—			286,217
Provision (benefit) for income taxes		(3,145	)		(31,451	)		132,727			8,729					106,860
Equity in earnings of subsidiaries, net of tax		184,310			233,831			10,945			—		(429,086	)		—
Net earnings		179,357			184,310			233,831			10,945		(429,086	)		179,357
Other comprehensive income, net of tax		—			—			—			7,044		—			7,044
Total comprehensive income	$	179,357		$	184,310		$	233,831		$	17,989	$	(429,086	)	$	186,401

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Nine Months Ended June 30, 2018

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net cash provided (used) by operating activities	$	23,213		$	(62,729	)	$	309,242		$	12,204		$	—		$	281,930
Cash Flows from Investing Activities:
Payments for property and equipment, net		—			—			(51,138	)		(11,033	)		—			(62,171	)
Acquisitions, net of cash acquired		—			—			—			(9,175	)		—			(9,175	)
Due from affiliates		—			—			(252,809	)		—			252,809			—
Net cash used by investing activities		—			—			(303,947	)		(20,208	)		252,809			(71,346	)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		—			369,314			5			—			—			369,319
Repayments of long-term debt		—			(400,624	)		(4	)		(594	)		—			(401,222	)
Debt issuance costs		—			(1,151	)		—			—			—			(1,151	)
Repurchases of common stock		(164,838	)		—			—			—			—			(164,838	)
Proceeds from exercises of stock options		1,317			—			—			—			—			1,317
Due to affiliates		140,308			95,190			—			17,311			(252,809	)		—
Net cash (used) provided by financing activities		(23,213	)		62,729			1			16,717			(252,809	)		(196,575	)
Effect of foreign exchange rate changes on cash and    cash equivalents		—			—			—			(913	)		—			(913	)
Net increase in cash and cash equivalents		—			—			5,296			7,800			—			13,096
Cash and cash equivalents, beginning of period		—			10			22,090			41,659			—			63,759
Cash and cash equivalents, end of period	$	—		$	10		$	27,386		$	49,459		$	—		$	76,855

Condensed Consolidating Statement of Cash Flows

Nine Months Ended June 30, 2017

(In thousands)

	Parent			Sally Holdings LLC and Sally Capital Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Eliminations			Sally Beauty Holdings, Inc. and Subsidiaries
Net cash provided (used) by operating activities	$	11,920		$	(71,305	)	$	275,021		$	7,211		$	—		$	222,847
Cash Flows from Investing Activities:
Payments for property and equipment, net		—			—			(50,099	)		(16,430	)		—			(66,529	)
Due from affiliates		—			—			(231,591	)		—			231,591			—
Net cash used by investing activities		—			—			(281,690	)		(16,430	)		231,591			(66,529	)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		—			296,500			—			—			—			296,500
Repayments of long-term debt		—			(215,000	)		(15	)		(504	)		—			(215,519	)
Repurchases of common stock		(286,995	)					—			—			—			(286,995	)
Proceeds from exercises of stock options		16,941						—			—			—			16,941
Due to affiliates		258,134			(38,557	)		—			12,014			(231,591	)		—
Net cash (used) provided by financing activities		(11,920	)		42,943			(15	)		11,510			(231,591	)		(189,073	)
Effect of foreign exchange rate changes on cash and    cash equivalents		—			—			—			233			—			233
Net increase (decrease) in cash and cash equivalents		—			(28,362	)		(6,684	)		2,524			—			(32,522	)
Cash and cash equivalents, beginning of period		—			28,372			22,368			35,882			—			86,622
Cash and cash equivalents, end of period	$	—		$	10		$	15,684		$	38,406		$	—		$	54,100