GOODWILL

12 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

The table below contains details related to the Company's goodwill:

	June 30,
	2019							2018
	Gross Carrying Value (2)		Accumulated Impairment (1)			Net		Gross Carrying Value (2)		Accumulated Impairment (1)			Net
	(Dollars in thousands)
Goodwill	$	419,818	$	(74,100	)	$	345,718	$	486,743	$	(74,100	)	$	412,643

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(1) In fiscal year 2011, the Company realized a $74.1 million goodwill impairment loss associated with the Company-owned reporting unit (the previous North American Value reporting unit).

(2) The change in the gross carrying value of goodwill relates to goodwill derecognized for salons sold to franchisees and foreign currency translation adjustments.

The table below contains details related to the Company's goodwill

	Company-owned			Franchise			Consolidated
	(Dollars in thousands)
Goodwill, net at June 30, 2017	$	188,888		$	228,099		$	416,987
Translation rate adjustments	(201		)	(244		)	(445		)
Derecognition related to sale of salon assets to franchisees (1)	(3,899		)	—			(3,899		)
Goodwill, net at June 30, 2018	184,788			227,855			412,643
Translation rate adjustments	57			73			130
Derecognition related to sale of salon assets to franchisees (1)	(67,055		)	—			(67,055		)
Goodwill, net at June 30, 2019	$	117,790		$	227,928		$	345,718

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(1)

Goodwill is derecognized for salons sold to franchisees with positive cash flows. The amount of goodwill derecognized is determined by a fraction (the numerator of which is the trailing-twelve months EBITDA of the salon being sold and the denominator of which is the estimated annualized EBITDA of the Company-owned reporting unit) that is applied to the total goodwill balance of the Company-owned reporting unit.