SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2013

SEGMENT INFORMATION

SEGMENT INFORMATION

14. SEGMENT INFORMATION

        As of June 30, 2013, the Company owned, franchised, or held ownership interests in 9,763 locations worldwide. The Company's locations consisted of 9,166 North American salons, including 2,082 franchised salons (located in the United States, Canada and Puerto Rico), 351 international salons (located primarily in the United Kingdom), and approximately 246 locations in which the Company maintains an ownership interest through the Company's investment in affiliates. See Note 5 to the Consolidated Financial Statements for discussion of the Company's investment in affiliates.

        Based on the way the Company manages its business, it has reported its North American salons and international salons as two separate reportable segments. The accounting policies of the reportable segments are the same as those described in Note 1 to the Consolidated Financial Statements.

        The Company operates its North American salon operations through five primary concepts: SmartStyle, Supercuts, MasterCuts, Regis Salons, and Promenade salons. The concepts offer similar products and services, concentrate on the mass market and have consistent distribution channels. All of the company-owned and franchise salons within the North American salon concepts are located in high traffic, retail shopping locations that attract mass market consumers, and the individual salons display similar long-term economic characteristics. The salons share interdependencies and a common support base.

        The Company operates its International salon operations, primarily in the United Kingdom, through three primary concepts: Regis, Supercuts, and Sassoon salons. Consistent with the North American concepts, the international concepts offer similar products and services, concentrate on the mass market and have consistent distribution channels. All of the international salon concepts are company-owned and are located in malls, leading department stores, and high-traffic locations. Individual salons display similar long-term economic characteristics. The salons share interdependencies and a common support base.

        Financial information concerning the Company's reportable operating segments is shown in the following table:

	Fiscal Years
	2013			2012			2011
	(Dollars in thousands)
Revenues(1):
North American Salons	$	1,889,401		$	1,981,105		$	2,029,944
International Salons		129,312			141,122			150,237
	$	2,018,713		$	2,122,227		$	2,180,181
Depreciation and amortization expense(1):
North American Salons	$	72,257		$	71,253		$	72,207
International Salons		5,222			5,297			4,750
Total segment depreciation and amortization expense		77,479			76,550			76,957
Unallocated Corporate		14,276			28,420			15,194
	$	91,755		$	104,970		$	92,151
Operating income (loss)(1):
North American Salons(2)	$	127,253		$	139,974		$	139,957
International Salons		(1,380	)		2,505			6,738
Total segment operating income		125,873			142,479			146,695
Unallocated Corporate		(113,547	)		(144,646	)		(160,977	)
Operating income (loss)(1)	$	12,326		$	(2,167	)	$	(14,282	)
Interest expense		(37,594	)		(28,245	)		(34,374	)
Interest income and other, net		35,366			5,098			4,723
Income (loss) from continuing operations before income taxes and equity in income (loss) of affiliated companies	$	10,098		$	(25,314	)	$	(43,933	)

(1)

See Note 2 to the Consolidated Financial Statements for discussion of the classification of the results of operations of Hair Club as discontinued operations.

(2)

Included in the North American salons segments operating income for fiscal years 2012 and 2011 are goodwill impairment charges of $67.7 and $74.1 million, respectively.

        Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows:

	June 30,
	2013				2012				2011
	Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net		Total Revenues		Property and Equipment, Net
	(Dollars in thousands)
U.S.	$	1,737,517	$	285,111	$	1,815,797	$	274,711	$	1,861,354	$	296,622
Other countries		281,196		28,349		306,430		31,088		318,827		33,405
Total	$	2,018,713	$	313,460	$	2,122,227	$	305,799	$	2,180,181	$	330,027