INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2013

INCOME TAXES

Components of income (loss) before income taxes

	Fiscal Years
	2013			2012			2011
	(Dollars in thousands)
Income (loss) before income taxes:
U.S.	$	(25,177	)	$	(35,430	)	$	(49,669	)
International		35,275			10,116			5,736
	$	10,098		$	(25,314	)	$	(43,933	)

(Benefit) provision for income taxes

	Fiscal Years
	2013			2012			2011
	(Dollars in thousands)
Current:
U.S.	$	(21,053	)	$	(1,095	)	$	(4,409	)
International		707			2,261			1,106
Deferred:
U.S.		10,405			(5,519	)		(16,283	)
International		(83	)		(77	)		3,253
	$	(10,024	)	$	(4,430	)	$	(16,333	)

Provision for income taxes, reconciliation to applicable U.S. statutory rate

	Fiscal Years
	2013			2012			2011
U.S. statutory rate (benefit)		35.0	%		(35.0	)%		(35.0	)%
State income taxes, net of federal income tax benefit		3.6			3.5			(1.7	)
Tax effect of goodwill impairment		—			47.7			6.5
Foreign income taxes at other than U.S. rates		4.1			(0.5	)		4.7
Tax effect of foreign currency translation gain		(107.0	)		—			—
Work Opportunity and Welfare-to-Work Tax Credits		(42.8	)		(19.4	)		(8.8	)
Other, net		7.8			(13.8	)		(2.9	)
		(99.3	)%		(17.5	)%		(37.2	)%

Components of the net deferred tax assets and liabilities

	June 30,
	2013			2012
	(Dollars in thousands)
Deferred tax assets:
Deferred rent	$	12,953		$	14,725
Payroll and payroll related costs		34,073			43,717
Net operating loss carryforwards		2,484			759
Tax credit carryforwards		4,366			—
Salon asset impairment		720			5,038
Inventories		7,920			2,118
Federal and state benefit on uncertain tax positions		1,888			2,113
Allowance for doubtful accounts/notes		7,004			5,144
Insurance		6,106			6,439
Other		11,745			6,362
Total deferred tax assets	$	89,259		$	86,415
Deferred tax liabilities:
Depreciation	$	(20,684	)	$	(17,831	)
Amortization of intangibles		(72,635	)		(61,139	)
Deferred debt issuance costs		(2,303	)		(4,336	)
Other		(4,903	)		(2,102	)
Total deferred tax liabilities	$	(100,525	)	$	(85,408	)
Net deferred tax (liability) asset	$	(11,266	)	$	1,007

Unrecognized tax benefits

	Fiscal Years
	2013			2012			2011
	(Dollars in thousands)
Balance at beginning of period	$	4,381		$	13,493		$	16,856
Additions based on tax positions related to the current year		44			482			796
(Reductions)/additions based on tax positions of prior years		7,132			(7	)		(759	)
Reductions on tax positions related to the expiration of the statute of limitations		(1,403	)		(1,571	)		(2,718	)
Settlements		(139	)		(8,016	)		(682	)
Balance at end of period	$	10,015		$	4,381		$	13,493