LEASES (Tables)

12 Months Ended

Jun. 30, 2024

Schedule of Total Rent from Continuing Operations

Total rent from continuing operations includes the following:


	Fiscal Years
	2024		2023		2022

	(Dollars in thousands)
Office and warehouse rent	$	3,075	$	3,594	$	4,575
Lease termination expense (1)	101		1,627		1,835
Lease liability benefit (2)	(326)		(1,773)		(3,620)
Franchise salon rent	596		2,109		1,695
Company-owned salon rent	2,079		3,639		4,872
Total	$	5,525	$	9,196	$	9,357

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(1)During fiscal years 2024 and 2023, the Company incurred costs of $0.1 million and $1.6 million, respectively, to exit salons before the lease end date in order to relieve the company of future lease obligations. During fiscal year 2022, lease termination expense includes $0.9 million to exit the Company's distribution centers before the lease end dates and $0.9 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.

Schedule of Future Operating Lease Commitments, Lessor

As of June 30, 2024, 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 Commitments		Sublease Income to be Received from Franchisees		Net Rent Commitments

2025	$	80,426	$	671	$	1,334	$	82,431	$	(80,426)	$	2,005
2026	67,589		498		1,367		69,454		(67,589)		1,865
2027	57,706		295		1,401		59,402		(57,706)		1,696
2028	48,295		286		1,436		50,017		(48,295)		1,722
2029	37,723		126		1,472		39,321		(37,723)		1,598
Thereafter	37,537		12		1,509		39,058		(37,537)		1,522
Total future obligations	$	329,276	$	1,888	$	8,519	$	339,683	$	(329,276)	$	10,408
Less amounts representing interest	38,764		199		986		39,949
Present value of lease liabilities	$	290,512	$	1,689	$	7,533	$	299,734
Less current lease liabilities	67,494		588		1,045		69,127
Long-term lease liabilities	$	223,018	$	1,101	$	6,488	$	230,607

Schedule of Future Operating Lease Commitments, Lessee

As of June 30, 2024, 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 Commitments		Sublease Income to be Received from Franchisees		Net Rent Commitments

2025	$	80,426	$	671	$	1,334	$	82,431	$	(80,426)	$	2,005
2026	67,589		498		1,367		69,454		(67,589)		1,865
2027	57,706		295		1,401		59,402		(57,706)		1,696
2028	48,295		286		1,436		50,017		(48,295)		1,722
2029	37,723		126		1,472		39,321		(37,723)		1,598
Thereafter	37,537		12		1,509		39,058		(37,537)		1,522
Total future obligations	$	329,276	$	1,888	$	8,519	$	339,683	$	(329,276)	$	10,408
Less amounts representing interest	38,764		199		986		39,949
Present value of lease liabilities	$	290,512	$	1,689	$	7,533	$	299,734
Less current lease liabilities	67,494		588		1,045		69,127
Long-term lease liabilities	$	223,018	$	1,101	$	6,488	$	230,607

Schedule of Supplemental Operating Cash Flow Information and Non-Cash Activity Related to Operating Leases

Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows:


	Fiscal Years
	2024		2023		2022

	(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities (1)	$	48,747	$	57,598	$	74,507
Right of use assets obtained in exchange for new lease liabilities	235		458		2,011

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(1)Cash paid for amounts included in the measurement of lease liabilities includes rent, termination fees, settlements and legal fees, and commission payments. Other than Walmart, franchisees pay landlords directly.