LEASES (Tables)

12 Months Ended

Jun. 30, 2021


	June 30,
	2021		2020		2019

	(Dollars in thousands)
Minimum rent	$	33,596	$	57,819	$	108,892
Percentage rent based on sales	8		2,043		4,754
Real estate taxes and other expenses	8,644		12,868		16,445
Lease termination expense (1)	13,606		191		123
Lease liability benefit (2)	(20,022)		—		—
Corporate segment rent	2,703		2,589		862
Franchise segment non-reimbursable rent	2,395		872		740
Total	$	40,930	$	76,382	$	131,816

_______________________________________________________________________________

(1)During fiscal year 2021, the Company terminated the leases for 402 company-owned salons before the lease end dates. For the fiscal year ended June 30, 2021, lease termination fees include $8.3 million of early termination payments to close salons before the lease end date to relieve the Company of future lease obligations. For the fiscal year ended June 30, 2021, lease termination fees also include $5.3 million of adjustments to accrue future lease payments for salons that are no longer operating. The early termination payments made during the fiscal year ended June 30, 2021 decreased the future minimum rent liability by $15.7 million plus saved the Company from the associated real estate taxes, other lease expenses and loss incurred operating the salons.

(2)For the fiscal year ended June 30, 2021, upon termination of previously impaired leases, the Company derecognized ROU assets of $18.3 million and lease liabilities of $31.1 million that resulted in a net gain of $12.8 million. In addition, the Company recognized a benefit of $7.1 million from lease liabilities decreasing in excess of previously impaired ROU assets for the fiscal year ended June 30, 2021.

Lessor, Future Operating Lease Commitments

As of June 30, 2021, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (in thousands):


Fiscal Year	Leases For Franchise Salons		Leases For Company-Owned Salons		Corporate Leases		Total Operating Lease Payments		Sublease Income To Be Received From Franchisees		Net Rent Commitments

2022	$	127,656	$	8,997	$	3,566	$	140,219	$	(127,656)	$	12,563
2023	112,604		7,268		3,550		123,422		(112,604)		10,818
2024	98,764		4,738		3,616		107,118		(98,764)		8,354
2025	83,259		1,881		3,683		88,823		(83,259)		5,564
2026	70,393		938		3,681		75,012		(70,393)		4,619
Thereafter	168,279		780		23,657		192,716		(168,279)		24,437
Total future obligations	$	660,955	$	24,602	$	41,753	$	727,310	$	(660,955)	$	66,355
Less amounts representing interest	81,713		448		9,812		91,973
Present value of lease liabilities	$	579,242	$	24,154	$	31,941	$	635,337
Less current lease liabilities	105,946		8,430		2,095		116,471
Long-term lease liabilities	$	473,296	$	15,724	$	29,846	$	518,866

Lessee, Future Operating Lease Commitments

As of June 30, 2021, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (in thousands):


Fiscal Year	Leases For Franchise Salons		Leases For Company-Owned Salons		Corporate Leases		Total Operating Lease Payments		Sublease Income To Be Received From Franchisees		Net Rent Commitments

2022	$	127,656	$	8,997	$	3,566	$	140,219	$	(127,656)	$	12,563
2023	112,604		7,268		3,550		123,422		(112,604)		10,818
2024	98,764		4,738		3,616		107,118		(98,764)		8,354
2025	83,259		1,881		3,683		88,823		(83,259)		5,564
2026	70,393		938		3,681		75,012		(70,393)		4,619
Thereafter	168,279		780		23,657		192,716		(168,279)		24,437
Total future obligations	$	660,955	$	24,602	$	41,753	$	727,310	$	(660,955)	$	66,355
Less amounts representing interest	81,713		448		9,812		91,973
Present value of lease liabilities	$	579,242	$	24,154	$	31,941	$	635,337
Less current lease liabilities	105,946		8,430		2,095		116,471
Long-term lease liabilities	$	473,296	$	15,724	$	29,846	$	518,866