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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:      
Net income (loss) $ (14,226) $ 6,436 $ (18,539)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:      
Non-cash impairment related to discontinued operations 306 38,826 0
Depreciation and amortization 33,261 39,433 40,722
Depreciation related to discontinued operations 0 3,738 14,239
Equity in loss of affiliated companies 0 0 81
Deferred income taxes (9,812) (80,241) 7,962
Gain on life insurance proceeds 0 (7,986) 0
Gain from sale of salon assets to franchisees, net (2,918) (241) (492)
Non-cash TBG restructuring charge (Note 3) 21,008 0 0
Loss on write down of inventories 0 0 5,905
Salon asset impairments [1] 4,587 11,092 11,366
Accumulated other comprehensive income reclassification adjustments (Note 3) 0 6,152 0
Stock-based compensation 9,003 8,269 13,142
Amortization of debt discount and financing costs 275 4,080 1,403
Other non-cash items affecting earnings (903) (294) 935
Changes in operating assets and liabilities:      
Receivables [2] (17,304) (12,081) 724
Inventories [2] (8,492) 13,940 4,010
Income tax receivable [2] (703) 527 (535)
Other current assets [2] (783) 239 (899)
Other assets [2] (5,546) (11,229) (2,586)
Accounts payable [2] (5,836) (1,103) (684)
Accrued expenses [2] (20,158) (10,940) (13,056)
Other noncurrent liabilities [2] 717 (6,027) (5,362)
Net cash (used in) provided by operating activities (17,524) 2,590 58,336
Cash flows from investing activities:      
Capital expenditures (31,616) (29,571) (26,572)
Capital expenditures related to discontinued operations 0 (1,171) (7,271)
Proceeds from sale of salon assets to franchisees 94,787 11,582 2,253
Proceeds from company-owned life insurance policies 24,617 18,108 876
Proceeds from sale of investment 0 0 500
Net cash (used in) provided by investing activities 87,788 (1,052) (30,214)
Cash flows from financing activities:      
Borrowings on revolving credit facilities 0 90,000 0
Repayments of long-term debt 0 (124,230) 0
Repurchase of common stock (152,661) (24,798) 0
Proceeds from sale and lease back transactions 28,821 0 0
Sale and lease back transaction payments (378) 0 0
Employee taxes paid for shares withheld (2,477) (2,413) (3,698)
Settlement of equity awards 0 (794) (3,151)
Net cash used in financing activities (126,695) (62,235) (6,849)
Effect of exchange rate changes on cash and cash equivalents 35 (514) 935
(Decrease) increase in cash and cash equivalents (56,396) (61,211) 22,208
Cash and cash equivalents:      
Beginning of year   148,775 208,634
Cash and cash equivalents included in current assets held for sale   0 1,352
Beginning of year, total cash and cash equivalents 148,775 209,986 187,778
End of year $ 92,379 $ 148,775 $ 209,986
[1]
In fiscal year 2017, $3.4 million of salon asset impairments were classified as discontinued operations. There were no other significant non-cash activities related to discontinued operations in the years presented.
[2]
Changes in operating assets and liabilities exclude assets and liabilities sold or acquired.