XML 38 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
SEGMENT INFORMATION:
 9 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION:
 
Segment information is prepared on the same basis the chief operating decision maker reviews financial information for operational decision-making purposes. During the second quarter of fiscal year 2014, the Company redefined its operating segments to reflect how the chief operating decision maker evaluates the business as a result of the restructuring of the Company's North American field organization. The field reorganization, which impacted all North American salons except for salons in the mass premium category, was announced in the fourth quarter of fiscal year 2013 and completed in the second quarter of fiscal year 2014. The Company now reports its operations in three operating segments: North American Value, North American Premium and International. The Company's operating segments are its reportable operating segments. Prior to this change in organizational structure, the Company had two reportable operating segments: North American salons and International salons. The Company did not completely operate under the realigned operating segments structure prior to the second quarter of fiscal year 2014.

The North American Value reportable operating segment is comprised of 8,289 company-owned and franchised salons located mainly in strip center locations and Walmart Supercenters. North American Value salons offer high quality, convenient and value priced hair care and beauty services and retail products. SmartStyle, Supercuts, MasterCuts, Cost Cutters, and other regional trade names operating in the United States, Canada and Puerto Rico are generally within the North American Value segment.

The North American Premium reportable operating segment is comprised of 813 company-owned salons primarily in mall-based locations. North American Premium salons offer upscale hair care and beauty services and retail products at reasonable prices. This segment operates in the United States, Canada and Puerto Rico and primarily includes the Regis salons concept, among other trade names.

The International reportable operating segment is comprised of 358 company-owned salons located in malls, department stores, and high-traffic locations. International salons offer a full range of custom hair care and beauty services and retail products. This segment operates in the United Kingdom primarily under the Supercuts, Regis and Sassoon concepts.

Concurrent with the change in reportable operating segments, the Company revised its prior period financial information to reflect comparable financial information for the new segment structure. Historical financial information shown in the following table and elsewhere in this filing reflects this change. 
 
 
For the Three Months 
 Ended March 31,
 
For the Nine Months 
 Ended March 31,
 
 
2014
 
2013
 
2014
 
2013
 
 
(Dollars in thousands)
Revenues (1):
 
 

 
 

 
 

 
 

North American Value
 
$
358,788

 
$
382,666

 
$
1,066,116

 
$
1,139,586

North American Premium
 
82,878

 
93,145

 
251,862

 
283,509

International
 
29,895

 
29,126

 
90,533

 
93,367

 
 
$
471,561


$
504,937


$
1,408,511


$
1,516,462

Operating (loss) income (1):
 
 
 
 

 
 
 
 

North American Value
 
$
29,989

 
$
36,440

 
$
86,826

 
$
110,457

North American Premium (2)
 
(3,853
)
 
(4,428
)
 
(44,001
)
 
(9,265
)
International
 
(3,109
)
 
(213
)
 
(2,871
)
 
442

Total segment operating (loss) income
 
23,027


31,799


39,954


101,634

Unallocated Corporate
 
(26,248
)
 
(28,491
)
 
(76,406
)
 
(80,330
)
Operating (loss) income (1)
 
$
(3,221
)

$
3,308


$
(36,452
)

$
21,304

_____________________________
(1)
See Note 2 to the unaudited Condensed Consolidated Financial Statements for discussion of the classification of the results of operations of Hair Club as a discontinued operation.
(2)
The nine months ended March 31, 2014 includes a non-cash goodwill impairment charge of $34.9 million for the Regis salon concept reporting unit. See Notes 1 and 8 to the unaudited Condensed Consolidated Financial Statements.