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

6 Months Ended

Mar. 31, 2019

Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

March 31, 2019

(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		$	49,719		$	40,048		$	—		$	89,777
Trade and other accounts receivable, net		—			—			57,983			33,444			—			91,427
Due from affiliates		—			—			2,691,139			—			(2,691,139	)		—
Inventory		—			—			714,757			238,286			—			953,043
Other current assets		2,906			196			23,399			13,394			—			39,895
Property and equipment, net		6			—			230,007			67,111			—			297,124
Investment in subsidiaries		1,489,197			4,206,154			381,353			—			(6,076,704	)		—
Goodwill and other intangible assets, net		—			—			456,574			145,362			—			601,936
Other assets		1,325			3,303			(3,441	)		18,225			—			19,412
Total assets	$	1,493,434		$	4,209,663		$	4,601,490		$	555,870		$	(8,767,843	)	$	2,092,614
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	$	85		$	3,456		$	197,401		$	51,528		$	—		$	252,470
Due to affiliates		1,626,428			982,434			—			82,277			(2,691,139	)		—
Accrued liabilities		359			21,520			103,095			31,516			—			156,490
Income taxes payable		5,093			1,519			—			(332	)		—			6,280
Long-term debt		—			1,713,068			3			853			—			1,713,924
Other liabilities		6,729			—			15,303			3,885			—			25,917
Deferred income tax liabilities, net		(185	)		(1,531	)		79,534			4,790			—			82,608
Total liabilities		1,638,509			2,720,466			395,336			174,517			(2,691,139	)		2,237,689
Total stockholders’ (deficit) equity		(145,075	)		1,489,197			4,206,154			381,353			(6,076,704	)		(145,075	)
Total liabilities and stockholders’ (deficit) equity	$	1,493,434		$	4,209,663		$	4,601,490		$	555,870		$	(8,767,843	)	$	2,092,614

Condensed Consolidating Balance Sheet

September 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
Assets
Cash and cash equivalents	$	—		$	10	$	29,050		$	48,235	$	—		$	77,295
Trade and other accounts receivable, net		4			—		53,295			37,191		—			90,490
Due from affiliates		—			—		2,598,681			—		(2,598,681	)		—
Inventory		—			—		714,000			230,338		—			944,338
Other current assets		2,010			111		27,422			13,417		—			42,960
Property and equipment, net		8			—		232,941			75,408		—			308,357
Investment in subsidiaries		1,368,927			4,044,669		380,166			—		(5,793,762	)		—
Goodwill and other intangible assets, net		—			—		459,348			149,275		—			608,623
Other assets		1,325			10,242		(4,797	)		18,581		—			25,351
Total assets	$	1,372,274		$	4,055,032	$	4,490,106		$	572,445	$	(8,392,443	)	$	2,097,414
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	$	38		$	-	$	233,936		$	69,267	$	—		$	303,241
Due to affiliates		1,629,411			888,141		—			81,129		(2,598,681	)		—
Accrued liabilities		234			23,019		125,179			31,855		—			180,287
Income taxes payable		585			1,519		—			40		—			2,144
Long-term debt		—			1,773,426		1			882		—			1,774,309
Other liabilities		10,562			—		15,250			4,210		—			30,022
Deferred income tax liabilities, net		—			—		71,071			4,896		—			75,967
Total liabilities		1,640,830			2,686,105		445,437			192,279		(2,598,681	)		2,365,970
Total stockholders’ (deficit) equity		(268,556	)		1,368,927		4,044,669			380,166		(5,793,762	)		(268,556	)
Total liabilities and stockholders’ (deficit) equity	$	1,372,274		$	4,055,032	$	4,490,106		$	572,445	$	(8,392,443	)	$	2,097,414

Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income

Condensed Consolidating Statement of Earnings and Comprehensive Income

Three Months Ended March 31, 2019

(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	$	—		$	—		$	769,284		$	176,568		$	—		$	945,852
Related party sales		—			—			480			—			(480	)		—
Cost of products sold and distribution expenses		—			—			383,147			94,861			(480	)		477,528
Gross profit		—			—			386,617			81,707			—			468,324
Selling, general and administrative expenses		3,084			198			281,404			76,940			—			361,626
Restructuring		—			—			(5,814	)		—			—			(5,814	)
Operating earnings (loss)		(3,084	)		(198	)		111,027			4,767			—			112,512
Interest expense (income)		—			23,871			(1	)		(49	)		—			23,821
Earnings (loss) before provision for income taxes		(3,084	)		(24,069	)		111,028			4,816			—			88,691
Provision (benefit) for income taxes		(791	)		(6,179	)		28,795			1,141			—			22,966
Equity in earnings of subsidiaries, net of tax		68,018			85,908			3,675			—			(157,601	)		—
Net earnings		65,725			68,018			85,908			3,675			(157,601	)		65,725
Other comprehensive income (loss), net of tax		—			(2,140	)		—			3,282			—			1,142
Total comprehensive income (loss)	$	65,725		$	65,878		$	85,908		$	6,957		$	(157,601	)	$	66,867

Condensed Consolidating Statement of Earnings and Comprehensive Income

Three Months Ended March 31, 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	$	—		$	—		$	786,743		$	188,578		$	—		$	975,321
Related party sales		—			—			631			—			(631	)		—
Cost of products sold and distribution expenses		—			—			390,891			98,739			(631	)		488,999
Gross profit		—			—			396,483			89,839			—			486,322
Selling, general and administrative expenses		2,859			602			279,435			85,565			—			368,461
Restructuring		—			—			6,759			—			—			6,759
Operating earnings (loss)		(2,859	)		(602	)		110,289			4,274			—			111,102
Interest expense (income)		—			25,293			(3	)		(28	)		—			25,262
Earnings (loss) before provision for income taxes		(2,859	)		(25,895	)		110,292			4,302			—			85,840
Provision (benefit) for income taxes		(828	)		(7,499	)		30,758			2,038						24,469
Equity in earnings of subsidiaries, net of tax		63,402			81,798			2,264			—			(147,464	)		—
Net earnings (loss)		61,371			63,402			81,798			2,264			(147,464	)		61,371
Other comprehensive income, net of tax		—			2,310			—			10,437						12,747
Total comprehensive income (loss)	$	61,371		$	65,712		$	81,798		$	12,701		$	(147,464	)	$	74,118

Condensed Consolidating Statement of Earnings and Comprehensive Income

Six Months Ended March 31, 2019

(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	$	—		$	—		$	1,562,814		$	372,491		$	—		$	1,935,305
Related party sales		—			—			1,149			—			(1,149	)		—
Cost of products sold and distribution expenses		—			—			787,187			200,237			(1,149	)		986,275
Gross profit		—			—			776,776			172,254			—			949,030
Selling, general and administrative expenses		5,893			366			567,620			154,735			—			728,614
Restructuring		—			—			(1,834	)		—			—			(1,834	)
Operating earnings (loss)		(5,893	)		(366	)		210,990			17,519			—			222,250
Interest expense (income)		—			48,423			(2	)		(111	)		—			48,310
Earnings (loss) before provision for income taxes		(5,893	)		(48,789	)		210,992			17,630			—			173,940
Provision (benefit) for income taxes		(1,512	)		(12,524	)		54,478			2,046			—			42,488
Equity in earnings of subsidiaries, net of tax		135,833			172,098			15,584			—			(323,515	)		—
Net earnings		131,452			135,833			172,098			15,584			(323,515	)		131,452
Other comprehensive loss, net of tax		—			(4,949	)		—			(10,614	)		—			(15,563	)
Total comprehensive income (loss)	$	131,452		$	130,884		$	172,098		$	4,970		$	(323,515	)	$	115,889

Condensed Consolidating Statement of Earnings and Comprehensive Income

Six Months Ended March 31, 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	$	—		$	—		$	1,583,275		$	387,011		$	—		$	1,970,286
Related party sales		—			—			1,077			—			(1,077	)		—
Cost of products sold and distribution expenses		—			—			794,701			203,711			(1,077	)		997,335
Gross profit		—			—			789,651			183,300			—			972,951
Selling, general and administrative expenses		5,465			781			563,902			169,600			—			739,748
Restructuring		—			—			11,969			—			—			11,969
Operating earnings (loss)		(5,465	)		(781	)		213,780			13,700			—			221,234
Interest expense (income)		—			49,307			(3	)		(27	)		—			49,277
Earnings (loss) before provision for income taxes		(5,465	)		(50,088	)		213,783			13,727			—			171,957
Provision (benefit) for income taxes		(1,079	)		(14,424	)		22,843			19,982						27,322
Equity in earnings of subsidiaries, net of tax		149,021			184,685			(6,255	)		—			(327,451	)		—
Net earnings (loss)		144,635			149,021			184,685			(6,255	)		(327,451	)		144,635
Other comprehensive income, net of tax		—			1,507			—			10,182			—			11,689
Total comprehensive income (loss)	$	144,635		$	150,528		$	184,685		$	3,927		$	(327,451	)	$	156,324

Schedule of Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Six Months Ended March 31, 2019

(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	$	1,262		$	(32,639	)	$	144,685		$	(3,198	)	$	—		$	110,110
Cash Flows from Investing Activities:
Payments for property and equipment		—			—			(41,559	)		(4,839	)		—			(46,398	)
Proceeds from sale of property and equipment		—			—			12,007			3			—			12,010
Acquisitions, net of cash acquired		—			—			(2,008	)		(840	)		—			(2,848	)
Due from affiliates		—			—			(92,458	)		—			92,458			—
Net cash used by investing activities		—			—			(124,018	)		(5,676	)		92,458			(37,236	)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		—			242,500			4			—			—			242,504
Repayments of long-term debt		—			(304,154	)		(2	)		(1	)		—			(304,157	)
Repurchases of common stock		—			—			—			—			—			—
Proceeds from exercises of stock options		1,721			—			—			—			—			1,721
Due to affiliates		(2,983	)		94,293			—			1,148			(92,458	)		—
Net cash provided (used) by financing activities		(1,262	)		32,639			2			1,147			(92,458	)		(59,932	)
Effect of foreign exchange rate changes on cash and    cash equivalents		—			—			—			(460	)		—			(460	)
Net increase (decrease) in cash and cash equivalents		—			—			20,669			(8,187	)		—			12,482
Cash and cash equivalents, beginning of period		—			10			29,050			48,235			—			77,295
Cash and cash equivalents, end of period	$	—		$	10		$	49,719		$	40,048		$	—		$	89,777

Condensed Consolidating Statement of Cash Flows

Six Months Ended March 31, 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	$	16,313		$	(33,119	)	$	197,800		$	(1,544	)	$	—		$	179,450
Cash Flows from Investing Activities:
Payments for property and equipment		—			—			(32,092	)		(6,601	)		—			(38,693	)
Proceeds from sale of property and equipment		—			—			—			14			—			14
Acquisitions, net of cash acquired		—			—			—			(9,175	)		—			(9,175	)
Due from affiliates		—			—			(159,590	)		—			159,590			—
Net cash used by investing activities		—			—			(191,682	)		(15,762	)		159,590			(47,854	)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		—			246,814			5			—			—			246,819
Repayments of long-term debt		—			(259,750	)		(2	)		(390	)		—			(260,142	)
Debt issuance costs		—			(1,151	)		—			—			—			(1,151	)
Repurchases of common stock		(114,699	)		—			—			—			—			(114,699	)
Proceeds from exercises of stock options		1,112			—			—			—			—			1,112
Due to affiliates		97,274			47,206			—			15,110			(159,590	)		—
Net cash provided (used) by financing activities		(16,313	)		33,119			3			14,720			(159,590	)		(128,061	)
Effect of foreign exchange rate changes on cash and    cash equivalents		—			—			—			762			—			762
Net increase (decrease) in cash and cash equivalents		—			—			6,121			(1,824	)		—			4,297
Cash and cash equivalents, beginning of period		—			10			22,090			41,659			—			63,759
Cash and cash equivalents, end of period	$	—		$	10		$	28,211		$	39,835		$	—		$	68,056