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LEASES (Tables)
 3 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Schedule of Real Estate Taxes and Other Occupancy Expenses For most leases, the Company is required to pay real estate taxes and other occupancy expenses. Total rent expense includes the following:
For the Three Months Ended September 30,
20202019
(Dollars in thousands)
Minimum rent$9,721 $19,184 
Percentage rent based on sales731,298
Real estate taxes and other expenses2,6623,307
Lease termination expense (1)5,551—
Lease liability benefit (2)(6,061)—
Corporate segment rent722285
Franchise segment non-reimbursable rent557190
Total$13,225 $24,264 
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(1)During the three months ended September 30, 2020 and 2019, the Company terminated the leases for 131 and 37 company-owned salons, respectively, before the lease end dates. Lease termination fees include $3.1 million of future lease payments for underperforming salons that management closed without a termination agreement. Lease termination fees also includes $2.5 million of early termination payments to close salons before lease end date and relieve the Company of future lease obligations. The early termination payments will save the Company approximately $2 million in future minimum rent plus associated real estate taxes and other lease expenses.
(2)Upon termination of previously impaired leases, the Company derecognized ROU assets of $7.1 million and lease liabilities of $10.3 million that resulted in a net gain of $3.2 million. In addition, the Company recognized a benefit from lease liabilities decreasing in excess of previously impaired ROU assets. The benefit recognized was $2.9 million and $0 in the three months ended September 30, 2020 and 2019, respectively.
Lessor, Future Operating Lease Commitments
As of September 30, 2020, future operating lease commitments, including one renewal option when leases are expected to be renewed, to be paid and received by the Company were as follows:
Fiscal YearLeases for Franchise SalonsLeases for Company-owned SalonsCorporate LeasesTotal Operating Lease PaymentsSublease Income to be Received from FranchiseesNet Rent Commitments
Remainder of 2021$91,189 $27,006 $1,329 $119,524 $(91,189)$28,335 
2022113,131 29,362 1,410 143,903 (113,131)30,772 
2023102,742 24,084 1,447 128,273 (102,742)25,531 
202492,788 20,019 1,484 114,291 (92,788)21,503 
202581,429 15,795 1,522 98,746 (81,429)17,317 
Thereafter209,092 46,949 7,818 263,859 (209,092)54,767 
Total future obligations$690,371 $163,215 $15,010 $868,596 $(690,371)$178,225 
Less amounts representing interest87,533 19,456 2,636 109,625 
Present value of lease liabilities$602,838 $143,759 $12,374 $758,971 
Less current lease liabilities98,546 29,900 1,197 129,643 
Long-term lease liabilities$504,292 $113,859 $11,177 $629,328 
Lessee, Future Operating Lease Commitments
As of September 30, 2020, future operating lease commitments, including one renewal option when leases are expected to be renewed, to be paid and received by the Company were as follows:
Fiscal YearLeases for Franchise SalonsLeases for Company-owned SalonsCorporate LeasesTotal Operating Lease PaymentsSublease Income to be Received from FranchiseesNet Rent Commitments
Remainder of 2021$91,189 $27,006 $1,329 $119,524 $(91,189)$28,335 
2022113,131 29,362 1,410 143,903 (113,131)30,772 
2023102,742 24,084 1,447 128,273 (102,742)25,531 
202492,788 20,019 1,484 114,291 (92,788)21,503 
202581,429 15,795 1,522 98,746 (81,429)17,317 
Thereafter209,092 46,949 7,818 263,859 (209,092)54,767 
Total future obligations$690,371 $163,215 $15,010 $868,596 $(690,371)$178,225 
Less amounts representing interest87,533 19,456 2,636 109,625 
Present value of lease liabilities$602,838 $143,759 $12,374 $758,971 
Less current lease liabilities98,546 29,900 1,197 129,643 
Long-term lease liabilities$504,292 $113,859 $11,177 $629,328