SEGMENT INFORMATION

12 Months Ended

Jun. 30, 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 8,295 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 801 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 360 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.

Financial information concerning the Company's reportable operating segments is shown in the following table:

	Fiscal Years
	2014			2013			2012
	(Dollars in thousands)
Revenues(1):
North American Value salons	$	1,430,083		$	1,515,581		$	1,570,542
North American Premium salons	333,858			373,820			410,563
International salons	128,496			129,312			141,122
	$	1,892,437		$	2,018,713		$	2,122,227
Depreciation and amortization expense(1):
North American Value salons	$	66,038		$	56,364		$	55,317
North American Premium salons	15,859			15,893			15,936
International salons	5,227			5,222			5,297
Total segment depreciation and amortization expense	87,124			77,479			76,550
Unallocated Corporate	12,609			14,276			28,420
	$	99,733		$	91,755		$	104,970
Operating (loss) income(1):
North American Value salons	$	118,935		$	141,103		$	197,478
North American Premium salons(2)	(46,274		)	(13,850		)	(57,504		)
International salons	(3,356		)	(1,380		)	2,505
Total segment operating income	69,305			125,873			142,479
Unallocated Corporate	(103,295		)	(113,547		)	(144,646		)
Operating (loss) income(1)	$	(33,990	)	$	12,326		$	(2,167	)
Interest expense	(22,290		)	(37,594		)	(28,245		)
Interest income and other, net	1,952			35,366			5,098
(Loss) income from continuing operations before income taxes and equity in loss of affiliated companies	$	(54,328	)	$	10,098		$	(25,314	)

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(1) See Note 2 to the Consolidated Financial Statements for discussion of the classification of the results of operations of Hair Club as discontinued operations.

(2) Included in the North American Premium salons segment's operating loss for fiscal years 2014 and 2012 are goodwill impairment charges of $34.9 and $67.7 million, respectively.

The Company's chief operating decision maker does not evaluate reportable segments using assets and capital expenditure information.

Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows:

	June 30,
	2014				2013				2012
	Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net
	(Dollars in thousands)
U.S.	$	1,626,794	$	240,460	$	1,737,517	$	285,111	$	1,815,797	$	274,711
Other countries	265,643		26,078		281,196		28,349		306,430		31,088
Total	$	1,892,437	$	266,538	$	2,018,713	$	313,460	$	2,122,227	$	305,799