LEASES (Tables)

6 Months Ended

Dec. 31, 2022

Schedule of Real Estate Taxes and Other Occupancy Expenses

Total rent includes the following:


	Three Months Ended December 31,				Six Months Ended December 31,
	2022		2021		2022		2021

	(Dollars in thousands)

Office and warehouse rent	$	834	$	1,202	$	1,706	$	2,815
Lease termination expense (1)	848		238		1,306		1,578
Lease liability benefit (2)	(615)		(496)		(1,217)		(2,927)
Franchise salon rent (3)	9		246		(44)		575
Company-owned salon rent	1,014		1,852		2,092		2,748
Total	$	2,090	$	3,042	$	3,843	$	4,789

_______________________________________________________________________________

(1)During the three and six months ended December 31, 2022, the Company incurred costs of $0.8 and $1.3 million, respectively, to exit salons before the lease end date in order to relieve the Company of future lease obligations. During the three months ended December 31, 2021, the Company incurred costs of $0.2 million to exit salons before the lease end date to relieve the Company of future lease obligations. During the six months ended December 31, 2021, the Company paid $0.9 million to exit its distribution centers before the lease end dates and incurred costs of $0.7 million to exit salons before the lease end dates in order to relieve the Company of future lease obligations.

(2)Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities, which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired.

(3)Franchise salon rent in fiscal year 2023 includes the benefit of incurring less cost to terminate a lease than estimated.

Lessor, Future Operating Lease Commitments

As of December 31, 2022, 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

Remainder of 2023	$	54,914	$	1,292	$	1,061	$	57,267	$	(54,914)	$	2,353
2024	99,860		1,617		1,301		102,778		(99,860)		2,918
2025	83,570		536		1,334		85,440		(83,570)		1,870
2026	69,825		290		1,367		71,482		(69,825)		1,657
2027	59,363		63		1,401		60,827		(59,363)		1,464
Thereafter	122,479		36		4,417		126,932		(122,479)		4,453
Total future obligations	$	490,011	$	3,834	$	10,881	$	504,726	$	(490,011)	$	14,715
Less amounts representing interest	56,953		121		1,500		58,574
Present value of lease liability	$	433,058	$	3,713	$	9,381	$	446,152
Less short-term lease liability	90,342		2,246		1,352		93,940
Long-term lease liability	$	342,716	$	1,467	$	8,029	$	352,212

Lessee, Future Operating Lease Commitments

As of December 31, 2022, 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

Remainder of 2023	$	54,914	$	1,292	$	1,061	$	57,267	$	(54,914)	$	2,353
2024	99,860		1,617		1,301		102,778		(99,860)		2,918
2025	83,570		536		1,334		85,440		(83,570)		1,870
2026	69,825		290		1,367		71,482		(69,825)		1,657
2027	59,363		63		1,401		60,827		(59,363)		1,464
Thereafter	122,479		36		4,417		126,932		(122,479)		4,453
Total future obligations	$	490,011	$	3,834	$	10,881	$	504,726	$	(490,011)	$	14,715
Less amounts representing interest	56,953		121		1,500		58,574
Present value of lease liability	$	433,058	$	3,713	$	9,381	$	446,152
Less short-term lease liability	90,342		2,246		1,352		93,940
Long-term lease liability	$	342,716	$	1,467	$	8,029	$	352,212