Sally Beauty (SBH) 10-K 15 Nov 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2017	Nov. 10, 2017	Mar. 31, 2017
Document and Entity Information
Entity Registrant Name	Sally Beauty Holdings, Inc.
Entity Central Index Key	1,368,458
Document Type	10-K
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,826,367,000
Entity Common Stock, Shares Outstanding		128,434,982
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 63,759	$ 86,622
Trade accounts receivable, net	46,986	46,942
Accounts receivable, other	45,255	37,041
Inventory	930,855	907,337
Other current assets	55,223	54,861
Deferred income tax assets	28,425	40,024
Total current assets	1,170,503	1,172,827
Property and equipment, net	313,717	319,558
Goodwill	537,791	532,714
Intangible assets, excluding goodwill, net	80,305	92,963
Other assets	20,777	14,001
Total assets	2,123,093	2,132,063
Current liabilities:
Current maturities of long-term debt	96,082	716
Accounts payable	307,752	271,376
Accrued liabilities	168,498	214,584
Income taxes payable	2,233	1,989
Total current liabilities	574,565	488,665
Long-term debt	1,771,853	1,783,294
Other liabilities	20,140	21,614
Deferred income tax liabilities	120,151	114,656
Total liabilities	2,486,709	2,408,229
Stockholders' deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 129,710 and 144,842 shares issued and 129,585 and 144,571 shares outstanding at September 30, 2017 and 2016, respectively	1,296	1,446
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Accumulated deficit	(283,076)	(177,561)
Accumulated other comprehensive loss, net of tax	(81,836)	(100,051)
Total stockholders' deficit	(363,616)	(276,166)
Total liabilities and stockholders' deficit	$ 2,123,093	$ 2,132,063

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2017	Sep. 30, 2016
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	500,000	500,000
Common stock, shares issued	129,710	144,842
Common stock, shares outstanding	129,585	144,571
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, Authorized shares	50,000	50,000
Preferred stock, shares issued	0	0

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Consolidated Statements of Earnings
Net sales	$ 974,195	$ 998,043	$ 966,470	$ 999,609	$ 976,358	$ 998,161	$ 980,067	$ 998,032	$ 3,938,317	$ 3,952,618	$ 3,834,343
Cost of products sold									1,973,422	1,988,678	1,936,492
Gross profit	482,442	502,639	488,106	491,708	483,441	498,976	487,474	494,049	1,964,895	1,963,940	1,897,851
Selling, general and administrative expenses									1,351,296	1,365,986	1,313,134
Depreciation and amortization									112,323	99,657	89,391
Restructuring charges									22,679
Operating earnings									478,597	498,297	495,326
Interest expense									132,899	144,237	116,842
Earnings before provision for income taxes									345,698	354,060	378,484
Provision for income taxes									130,622	131,118	143,397
Net earnings	$ 35,719	$ 66,539	$ 56,992	$ 55,826	$ 52,621	$ 67,919	$ 60,159	$ 42,243	$ 215,076	$ 222,942	$ 235,087
Basic earnings per share (in dollars per share)	$ 0.27	$ 0.49	$ 0.41	$ 0.39	$ 0.36	$ 0.47	$ 0.41	$ 0.28	$ 1.56	$ 1.51	$ 1.50
Diluted earnings per share (in dollars per share)	$ 0.27	$ 0.49	$ 0.40	$ 0.39	$ 0.36	$ 0.46	$ 0.41	$ 0.28	$ 1.56	$ 1.50	$ 1.49
Weighted average shares:
Basic (in shares)									137,533	147,179	156,353
Diluted (in shares)									138,176	148,803	158,226

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Consolidated Statements of Comprehensive Income
Net earnings	$ 215,076	$ 222,942	$ 235,087
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	19,299	(22,346)	(49,157)
Interest rate caps:
Changes in fair value	(1,772)
Income taxes related to changes in fair value	688
Other comprehensive income ( loss), net of tax	18,215	(22,346)	(49,157)
Total comprehensive income	$ 233,291	$ 200,596	$ 185,930

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net earnings	$ 215,076	$ 222,942	$ 235,087
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	112,323	99,657	89,391
Share-based compensation expense	10,507	12,580	16,778
Amortization of deferred financing costs	3,264	3,255	3,789
Excess tax (benefit) shortfall from share-based compensation	1,914	(1,347)	(22,084)
Net loss on disposal and impairment of assets	8,464	495	2,570
Net loss on extinguishment of debt	27,981	33,296
Deferred income taxes	14,122	21,460	7,121
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	702	936	774
Accounts receivable, other	(7,520)	4,697	3,255
Inventory	(16,343)	(31,397)	(80,321)
Other current assets	1,480	(17,194)	2,516
Other assets	(6,700)	(1,964)	(744)
Accounts payable and accrued liabilities	(19,601)	13,621	19,575
Income taxes payable	323	(4,331)	22,924
Other liabilities	(1,614)	(5,701)	156
Net cash provided by operating activities	344,378	351,005	300,787
Cash Flows from Investing Activities:
Payments for property and equipment	(89,666)	(151,220)	(106,532)
Proceeds from sales of property and equipment	41	2,531	182
Acquisitions, net of cash acquired		(26,141)	(6,468)
Net cash used by investing activities	(89,625)	(174,830)	(112,818)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	1,277,250	912,000	983
Repayments of long-term debt	(1,216,643)	(938,537)	(1,814)
Payments for common stock repurchased	(346,051)	(207,312)	(227,559)
Debt issuance costs	(8,376)	(12,748)
Proceeds from exercises of stock options	17,339	16,220	54,351
Excess tax benefit (shortfall) from share-based compensation	(1,914)	1,347	22,084
Net cash used by financing activities	(278,395)	(229,030)	(151,955)
Effect of foreign exchange rate changes on cash and cash equivalents	779	(561)	(2,551)
Net increase (decrease) in cash and cash equivalents	(22,863)	(53,416)	33,463
Cash and cash equivalents, beginning of year	86,622	140,038	106,575
Cash and cash equivalents, end of year	63,759	86,622	140,038
Supplemental Cash Flow Information:
Interest paid	141,883	138,956	113,041
Income taxes paid	114,553	123,738	107,589
Capital expenditures incurred but not paid	$ 8,367	$ 3,757	$ 11,568

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Loss	Total
Balance at Sep. 30, 2014	$ 1,547		$ (320,052)		$ (28,548)	$ (347,053)
Balance (in shares) at Sep. 30, 2014	154,668
Increase (Decrease) in Stockholders' Equity
Net earnings			235,087			235,087
Other comprehensive income (loss), net of tax					(49,157)	(49,157)
Repurchases and cancellations of common stock	$ (80)	$ (90,813)	(133,705)	$ (2,961)		(227,559)
Repurchase and cancellations of common stock (in shares)	(7,977)
Share-based compensation	$ 2	16,776				16,778
Share-based compensation (in shares)	184
Stock issued for stock options	$ 46	74,037				74,083
Stock issued for stock options (in shares)	4,577
Balance at Sep. 30, 2015	$ 1,515		(218,670)	(2,961)	(77,705)	(297,821)
Balance (in shares) at Sep. 30, 2015	151,452
Increase (Decrease) in Stockholders' Equity
Net earnings			222,942			222,942
Other comprehensive income (loss), net of tax					(22,346)	(22,346)
Repurchases and cancellations of common stock	$ (79)	(28,361)	(181,833)	$ 2,961		(207,312)
Repurchase and cancellations of common stock (in shares)	(7,950)
Share-based compensation	$ 1	12,579				12,580
Share-based compensation (in shares)	131
Stock issued for stock options	$ 9	15,782				15,791
Stock issued for stock options (in shares)	938
Balance at Sep. 30, 2016	$ 1,446		(177,561)		(100,051)	$ (276,166)
Balance (in shares) at Sep. 30, 2016	144,571					144,571
Increase (Decrease) in Stockholders' Equity
Net earnings			215,076			$ 215,076
Other comprehensive income (loss), net of tax					18,215	18,215
Repurchases and cancellations of common stock	$ (161)	(25,299)	(320,591)			(346,051)
Repurchase and cancellations of common stock (in shares)	(16,072)
Share-based compensation	$ 1	10,506				10,507
Share-based compensation (in shares)	122
Stock issued for stock options	$ 10	$ 14,793				14,803
Stock issued for stock options (in shares)	964
Balance at Sep. 30, 2017	$ 1,296		$ (283,076)		$ (81,836)	$ (363,616)
Balance (in shares) at Sep. 30, 2017	129,585					129,585

Description of Business and Bas

Description of Business and Basis of Presentation	12 Months Ended
	Sep. 30, 2017
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation	1. Description of Business and Basis of Presentation Description of Business Sally Beauty Holdings, Inc. and its consolidated subsidiaries ("Sally Beauty" or "the Company" or "we") sell professional beauty supplies through its Sally Beauty Supply ("SBS") retail stores located in the U.S., Puerto Rico, Canada, Mexico, the United Kingdom, Ireland, Belgium, France, Germany, the Netherlands, Spain, Chile and Peru. Additionally, we distribute professional beauty products to salons and salon professionals through our Beauty Systems Group ("BSG") store operations and a commissioned direct sales force that calls on salons primarily in the U.S. and Canada, and to franchises in the southern and southwestern regions of the U.S. and in Mexico through the operations of its subsidiary Armstrong McCall. A significant number of our products are also available through a number of SBS and BSG-operated websites. Certain beauty products sold by BSG and Armstrong McCall are sold under exclusive territory agreements with the manufacturers of the products. Basis of Presentation The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements included herein have been prepared on a going concern basis of accounting. Each quarter, management evaluates, based on relevant conditions and events, our ability to continue as a going concern for at least one year after the financial statements are issued. Based on management's assessment, we have concluded that substantial doubt about our ability to continue as a going concern does not exist as of September 30, 2017. Certain segment amounts for prior fiscal years have been reclassified to conform to the current fiscal year's presentation, in connection with realignment of a business component from our BSG segment to our SBS segment.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Sep. 30, 2017
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies The preparation of financial statements in conformity with GAAP requires us to interpret and apply accounting standards and to develop and follow accounting policies consistent with such standards. The following is a summary of the significant accounting policies used in preparing our consolidated financial statements. Use of Estimates In accordance with GAAP, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosures of contingent liabilities in the consolidated financial statements. Our most significant estimates relate to: the valuation of inventory, vendor rebates and concessions, retention of risk, income taxes, the assessment of long-lived assets and intangible assets for impairment, loss contingencies and share-based payments. Actual results may differ from these estimates in amounts that may be material to our consolidated financial statements. We believe that the estimates and assumptions used in the preparation of our consolidated financial statements are reasonable. Cash and Cash Equivalents Cash equivalents generally represent highly liquid investments purchased from time to time which have an original maturity of three months or less. These investments are stated at cost, which approximates fair value. In addition, cash equivalents include proceeds due from customer credit and debit cards and third-party online payment systems transactions, which generally settle within one to three days, and were $20.5 million and $15.1 million at September 30, 2017 and 2016, respectively. Concentration of Credit Risk Financial instruments that potentially expose us to concentration of credit risk consist primarily of investments, if any, in cash equivalents, accounts receivable and derivative instruments, including foreign exchange contracts and interest rate caps. We invest from time to time in securities of financial institutions we deem to be of high creditworthiness. We believe our accounts receivable are highly diversified due to the large number of individual customers comprising our customer base and their dispersion across diverse geographic regions. The counterparties to our derivative instruments are deemed by us to be of substantial resources and strong creditworthiness. We believe that no significant concentration of credit risk exists with respect to our investments, if any, in cash equivalents, our accounts receivable and our derivative instruments at September 30, 2017 and 2016. Trade Accounts Receivable and Accounts Receivable, Other Trade accounts receivable are recorded at the values invoiced to customers and are stated net of the allowance for doubtful accounts. The allowance for doubtful accounts requires us to estimate the future collectability of amounts receivable at the balance sheet date. We record allowances for doubtful accounts on the basis of our historical collection data and current customer information. Customer account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. In our consolidated statements of earnings, bad debt expense is included in selling, general and administrative expenses. The allowance for doubtful accounts was $1.0 million and $1.4 million at September 30, 2017 and 2016, respectively. Other accounts receivable consist primarily of amounts earned from vendors under various contractual agreements and are recorded at the amounts that we estimate will be collected. Inventory and Cost of Products Sold Inventory consists primarily of beauty supplies and related accessories, and salon equipment for sale in the normal course of our business. Inventory is stated at the lower of cost, determined using the first-in, first-out ("FIFO") method, or net realizable value. Inventory cost reflects actual product costs, the cost of transportation to our distribution centers and certain shipping and handling costs, such as freight from the distribution centers to the stores and handling costs incurred at the distribution centers. When assessing the net realizable value of inventory, we consider several factors including estimates of future demand for our products, historical turn-over rates, the age and sales history of the inventory, and historic and anticipated changes in stock keeping units ("SKUs"). Physical inventory counts are performed at substantially all stores and significant distribution centers at least annually. Upon completion of physical inventory counts, our consolidated financial statements are adjusted to reflect actual quantities on hand. Between physical counts, we estimate inventory shrinkage based on our historical experience. We have policies and processes in place that are intended to minimize inventory shrinkage. Cost of products sold include actual product costs, the cost of transportation to our distribution centers, operating cost associated with our distribution centers (including employee compensation expense, depreciation and amortization, rent and other occupancy-related expenses), vendor rebates and allowances, inventory shrinkage and certain shipping and handling costs, such as freight from the distribution centers to the stores. All other shipping and handling costs are included in selling, general and administrative expenses when incurred. We deem cash consideration received from a supplier to be a reduction of the cost of products sold, unless it is in exchange for an asset or service or a reimbursement of a specific, incremental, identifiable cost incurred by us in selling the vendor's products. The majority of cash consideration we receive from vendors is considered to be a reduction of the cost of the related products and is reflected in cost of products sold in our consolidated statements of earnings as the related products are sold. Any portion of cash consideration received that is attributable to inventory on hand is reflected as a reduction of inventory. Lease Accounting The majority of our lease agreements are for office space, company-operated stores and warehouse/distribution facilities and are accounted for as operating leases, consistent with Accounting Standards Codification ("ASC") Topic 840, Leases . Rent expense (including any rent abatements or escalation charges) is recognized on a straight-line basis from the date we take possession of the property to begin preparation of the site for occupancy to the end of the lease term, including renewal options that are considered reasonably assured. Certain lease agreements to which we are a party provide for contingent rents that are determined as a percentage of revenues in excess of specified levels. We record a contingent rent liability, along with the corresponding rent expense, when the specified levels of revenue have been achieved or when we determine that achieving the specified levels of revenue during the fiscal year is probable. Certain lease agreements to which we are a party provide for tenant improvement allowances. Tenant improvement allowances are recorded as deferred lease credits, included in accrued liabilities and other liabilities, as appropriate, on our consolidated balance sheets, and amortized on a straight-line basis over the lease term (including renewal options that are determined reasonably assured) as a reduction of rent expense. The amortization period used for deferred lease credits is generally consistent with the amortization period used for the constructed leasehold improvement asset for a given office, store or warehouse facility. Valuation of Long-Lived Assets and Intangible Assets with Definite Lives Long-lived assets, such as property and equipment, including store equipment, and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The recoverability of long-lived assets and intangible assets subject to amortization is assessed by comparing the net carrying amount of each asset to the total estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. Goodwill and Intangible Assets with Indefinite Lives Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Our intangible assets with indefinite lives consist of trade names acquired in business combinations. Goodwill and intangible assets with indefinite lives are reviewed for impairment at least annually, usually during our second fiscal quarter, and whenever events or changes in circumstances indicate it is more-likely-than-not that the value of the asset may be impaired. When assessing goodwill and intangible assets with indefinite lives for potential impairment, we consider whether the value of the asset has been impaired by evaluating if various factors (including current operating results, anticipated future results and cash flows, and relevant market and economic conditions) indicate a possible impairment and, if appropriate, compare the carrying amount of the asset to its fair value. Based on our assessments, after taking into account potential triggering events there was no material impairment of goodwill or intangible assets with indefinite lives recognized in our consolidated financial statements in the current or prior fiscal years presented. Self-Insurance Programs We retain a substantial portion of the risk related to certain of its workers' compensation, general and auto liability, and property damage insurable loss exposure. Predetermined loss limits have been arranged with insurance companies to limit our exposure per occurrence and aggregate cash outlay. In addition, certain of our employees and their dependents are covered by a self-insurance program for healthcare benefit purposes (the "healthcare plan"). We maintain an annual stop-loss insurance policy for the healthcare plan. We record an estimated liability for the ultimate cost of claims incurred and unpaid as of the balance sheet date, which includes claims filed and estimated losses incurred but not yet reported. We estimate the ultimate cost based on an analysis of our historical data and actuarial estimates. These estimates are reviewed on a regular basis to ensure that the recorded liability is adequate. The long-term portions of these liabilities are recorded at their present value. Revenue Recognition We recognize sales revenue, net of estimated sales returns and cash discounts, when a customer consummates a point-of-sale transaction at a store or, in connection with merchandise shipped to a customer, when title and risk of loss pass to the customer (generally upon shipment). The cost of sales incentive programs, including customer and consumer coupons, is recognized as a reduction of revenue at the time of sale. Taxes collected from customers and remitted to governmental authorities are recorded on a net basis and are excluded from revenue. Sales returns are estimated based on historical return rates. Advertising Costs Advertising costs relate mainly to print advertisements, digital marketing, trade shows and product education for salon professionals. Advertising costs incurred in connection with print advertisements are expensed the first time the advertisement is run. Other advertising costs are expensed when incurred. Advertising costs were $82.0 million, $93.0 million and $95.3 million for the fiscal years 2017, 2016 and 2015, respectively, and are included in selling, general and administrative expenses in our consolidated statements of earnings. Share-based Compensation From time to time we may grant, subject to approval by our Board of Directors (the "Board"), performance-based awards and service-based awards to our employees under the Sally Beauty Holdings, Inc. Amended and Restated 2010 Omnibus Incentive Plan (the "2010 Plan"), a stockholder-approved share-based compensation plan which allows for the issuance of up to 29.8 million shares of our common stock. We measure the cost of services received from our employees and directors in exchange for an award of equity instruments based on the fair value of the award on the date of grant. Service-based stock option awards are valued using the Black-Scholes option pricing model to estimate the fair value of each stock option award on the date of grant. Performance-based restricted stock units ("performance units"), and service-based restricted stock awards ("RSA" or "RSAs") and restricted stock units ("RSU" or "RSUs") are valued using the closing market price of our common stock on the date of grant. Stock options have a maximum term of ten years. The fair value of the service-based awards is expensed on a straight-line basis over the vesting period (generally three or four years for stock options, generally three to five years for RSAs and generally one year for RSUs) or, for stock options and RSAs, to the date a participant becomes eligible for retirement, if earlier. The fair value of the performance units are expensed over the requisite performance period (generally three years). For performance units, the number of shares, if any, which will be issued, is contingent upon both (a) employee service conditions and (b) our level of achievement with respect to specified performance targets. Periodic expense for performance unit awards, which is estimated quarterly, is based on our projected performance during the performance period compared to the performance targets contained in the award. As such, we estimate and recognize compensation expense for each award based on the percentage of the performance targets that we deem probable of achievement. Our assessment of the compensation expense, if any, to be ultimately recognized in connection with performance unit awards is based on currently available information. Depreciation and Amortization Depreciation of property and equipment is calculated using the straight-line method based on the estimated useful lives of the respective classes of assets. Building and building improvements are depreciated over periods ranging from five to 40 years. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or the term of the related lease, including renewals considered reasonably assured. Furniture, fixtures and equipment are depreciated over periods ranging from two to ten years. Expenditures for maintenance and repairs are included in selling, general and administrative expenses when incurred, while expenditures for major renewals and improvements are capitalized. Our intangible assets subject to amortization include customer relationships, certain distribution rights and non-competition agreements, and are amortized, on a straight-line basis, over periods of two to 13 years. Such amortization periods are based on the estimated useful lives of the assets and take into account the terms of any underlying agreements, but do not generally reflect all renewal terms contractually available to us. Income Taxes We recognize deferred income taxes for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are anticipated to be recovered or settled. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of earnings in the period of enactment. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets to the amount expected to be realized unless it is more-likely-than-not that such assets will be realized in full. The estimated tax benefit of an uncertain tax position is recorded in our financial statements only after determining a more-likely-than-not probability that the uncertain tax position will withstand challenge, if any, from applicable taxing authorities. Foreign Currency The functional currency of each of our foreign operations is generally the respective local currency. Balance sheet accounts are translated into U.S. dollars (our reporting currency) at the rates of exchange in effect at the balance sheet date, while the results of operations and cash flows are generally translated using average exchange rates for the periods presented. Individually material transactions, if any, are translated using the actual rate of exchange on the transaction date. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in our consolidated balance sheets. Foreign currency transaction gains or losses, including changes in the fair value (i.e., marked-to-market adjustments) of certain foreign exchange contracts we hold, are included in selling, general and administrative expenses in our consolidated statements of earnings when incurred and were not significant in any of the periods presented in the accompanying consolidated financial statements.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	12 Months Ended
	Sep. 30, 2017
Recent Accounting Pronouncements
Recent Accounting Pronouncements	3. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, Revenue from Contracts with Customers which will supersede ASC Topic 605, Revenue Recognition . A core principle of the new guidance is that an entity should measure revenue in connection with its sale of goods and services to a customer based on the consideration to which the entity expects to be entitled in exchange for each of those goods and services. The new standard must be adopted using either the retrospective or cumulative effect transition method. For public companies, this amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We have not yet selected a transition method. We have not yet adopted this accounting pronouncement and we do not believe, based on our preliminary assessment, that adoption will have a material effect on our consolidated results of operations and consolidated financial position. We are currently assessing the disclosure requirements contained in the new standard and anticipate making the additional disclosures about our revenue recognition practices as required by the new standard. In November 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Income Taxes ("ASU 2015-17") which aims to simplify the classification of deferred taxes on the balance sheet. More specifically, ASU 2015-17 will require that all deferred tax assets and liabilities, and any related valuation allowance, be reported as noncurrent in a classified balance sheet. The new guidance will replace the existing practice of reporting deferred taxes for each tax jurisdiction (or taxing component of a jurisdiction) as (a) a net current asset or liability and (b) a net noncurrent asset or liability. The new guidance does not change the existing requirement that only permits offsetting assets and liabilities within the same jurisdiction. We will adopt this accounting pronouncement in the first quarter of our fiscal year 2018. We have completed a preliminary assessment of the potential impact of adopting ASU 2015-17 on our consolidated financial statements. At September 30, 2017, the adoption of ASU 2015-17 would have resulted in a decrease in current assets of $28.4 million and a decrease in current liabilities of $2.0 million. In addition, the adoption would have resulted in an increase in noncurrent assets of $4.3 million and a decrease in noncurrent liabilities of $22.1 million. The actual impact of adopting this new standard on our consolidated financial statements may materially differ from these preliminary estimates, including as a result of changes in tax rates resulting from the potential enactment of tax legislation in the future. In February 2016, the FASB issued ASU No. 2016-02, Leases , which will require lessees to report on their balance sheets a right-of-use asset and a lease liability in connection with most lease agreements classified as operating leases under the prior guidance. Under the new guidance, the lease liability must be measured initially based on the present value of future lease payments, subject to certain conditions. The right-of-use asset must be measured initially based on the amount of the liability, plus certain initial direct costs. The new guidance further requires that leases be classified at inception as either (a) operating leases or (b) finance leases. For operating leases, periodic expense will generally be flat (straight-line) throughout the life of the lease. For finance leases, periodic expense will decline (similar to capital leases under prior rules) over the life of the lease. The new standard must be adopted using a modified retrospective transition method. For public companies, this amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We have not yet adopted this accounting pronouncement. We have completed a preliminary assessment of the potential impact of adopting ASU 2016-02 on our consolidated financial statements. At September 30, 2017, adoption of ASU 2016-02 would result in recognition of a right-of-use asset in the estimated amount of approximately $600.0 million and a lease liability for a similar amount in our consolidated balance sheet. We do not believe adoption of ASU 2016-02 will have a material impact on our earnings or cash flows. The amount of the right-of-use asset and the lease liability we ultimately recognize may materially differ from this preliminary estimate, including as a result of future organic growth in our business and potential acquisitions. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting , intended to simplify various aspects of how share-based payments are recorded and presented on the financial statements. For example, the new guidance will require that all the income tax effect related to share-based payments be recorded in income tax expense. The new guidance further removes the current requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable. In addition, the new standard will require that excess tax benefits and shortfalls from share-based compensation awards be reported in operating activities in the statement of cash flows. We will adopt this accounting pronouncement in the first quarter of our fiscal year 2018. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12") which is intended to better align an entity's risk management activities and its financial reporting for hedging relationships. ASU 2017-12 will change both the designation and measurement guidance for a qualifying hedging relationship and the presentation of the impact of the hedging relationship on the entity's financial statements. In addition, ASU 2017-12 contains targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness and eliminates the requirement for an entity to separately measure and report hedge ineffectiveness. For public companies, these amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We have not yet adopted and are currently assessing the potential effect of this accounting pronouncement on our consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Sep. 30, 2017
Fair Value Measurements
Fair Value Measurements	4. Fair Value Measurements Our financial instruments consist of cash equivalents, trade and other accounts receivable, accounts payable, derivative instruments, including foreign exchange contracts and interest rate caps, and debt. The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these financial instruments. We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement , as amended ("ASC 820"). We define "fair value" as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for measuring fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels of that hierarchy are defined as follows: Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2— Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data; and Level 3— Unobservable inputs for the asset or liability. Consistent with this hierarchy, we categorized our financial assets and liabilities as follows (in thousands): September 30, 2017 Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts $ $ — $ $ — Interest rate caps — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Long-term debt $ $ $ $ — Foreign exchange contracts — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2016 Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts $ — $ — $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ — $ — $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Long-term debt $ $ $ $ — Foreign exchange contracts — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign exchange contracts (including foreign currency forwards and options) are valued for purposes of the disclosure above using widely accepted valuation techniques, such as discounted cash flow analyses, and observable inputs, such as market foreign currency exchange rates. Interest rate caps are valued for purposes of the disclosure above using widely accepted valuation techniques, such as discounted cash flow analyses, using observable inputs, such as market interest rates. See Note 13 for more information about our foreign exchange contracts and interest rate caps. At September 30, 2017 and 2016, long-term debt (including current maturities and borrowings under our five-year asset-based senior secured loan facility, if any) is reported in our consolidated financial statements at amortized cost of $1,887.4 million and $1,807.7 million, respectively, less unamortized debt issuance costs of $19.4 million and $23.7 million, respectively. Our senior notes are valued for purposes of the disclosure above using unadjusted quoted market prices for such debt securities. Our term loan B is generally valued for purposes of this discourse using quoted market prices for similar debt securities in active markets. Other long-term debt (consisting primarily of the borrowings under the ABL facility, if any, and capital lease obligations) is generally valued for purposes of this disclosure using widely accepted valuation techniques, such as discounted cash flow analyses, using observable inputs, such as market interest rates. See Note 12 for more information about our debt.

Accumulated Stockholders' Defic

Accumulated Stockholders' Deficit	12 Months Ended
	Sep. 30, 2017
Accumulated Stockholders' Deficit
Accumulated Stockholders' Deficit	5. Accumulated Stockholders' Deficit In August 2017, we announced that the Board approved a share repurchase program authorizing us to repurchase up to $1.0 billion of our common stock over an approximate four-year period expiring on September 30, 2021 (the "2017 Share Repurchase Program") and terminated the 2014 Share Repurchase Program. During the fiscal years ended September 30, 2017, 2016 and 2015, we repurchased and subsequently retired approximately 16.1 million shares, 7.8 million shares and 8.1 million shares of our common stock at a cost of approximately $346.1 million, $207.3 million and $227.6 million, respectively, under the 2014 Share Repurchase Program. As of September 30, 2017, no repurchases have been made under the 2017 Share Repurchase Program. We reduced common stock and additional paid-in capital, in the aggregate, by these amounts. However, as required by GAAP, to the extent that share repurchase amounts exceeded the balance of additional paid-in capital prior to such repurchases, we recorded the excess in accumulated deficit. We funded these share repurchases with cash from operations and borrowings under the ABL facility or the predecessor ABL facility, as appropriate. The change in accumulated other comprehensive income (loss) ("AOCL") was as follows (in thousands): Foreign Interest Total Balance at September 30, 2015 $ ) $ — $ ) Other comprehensive loss before reclassifications, net of tax ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current-period other comprehensive loss ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2016 $ ) $ — $ ) Other comprehensive income (loss) before reclassifications, net of tax ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current-period other comprehensive income (loss) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2017 $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Earnings Per Share

Earnings Per Share	12 Months Ended
	Sep. 30, 2017
Earnings Per Share
Earnings Per Share	6. Earnings Per Share The following table sets forth the computations of basic and diluted earnings per share (in thousands, except per share data): Year ended September 30, 2017 2016 2015 Net earnings $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total weighted average basic shares Dilutive securities: Stock options and stock awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total weighted average diluted shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: Basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2017, 2016 and 2015, options to purchase 4,531,081, 1,061,068 and 1,090,459 shares, respectively, of our common stock were outstanding but not included in the computation of diluted earnings per share, because these options were anti-dilutive. An anti-dilutive option is an option that is: (a) out-of-the-money (an option with an exercise price which is greater than the average price per share of our common stock during the period), and (b) in-the-money (an option with an exercise price which is less than the average price per share of our common stock during the period) for which the sum of assumed proceeds, including any unrecognized compensation expense related to such option, exceeds the average price per share for the period.

Share-Based Payments

Share-Based Payments	12 Months Ended
	Sep. 30, 2017
Share-Based Payments
Share-Based Payments	7. Share-Based Payments The following table presents total compensation cost included in selling, general and administrative expenses for all share-based compensation arrangements, and the related income tax benefits recognized in our consolidated statement of earnings (in thousands): Year ended September 30, 2017 2016 2015 Share-based compensation expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax benefit related to share-based compensation expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Performance-Based Awards During the fiscal year ended September 30, 2017 and 2016, we granted approximately 146,000 and 152,000 performance units ("target units") with a weighted average fair value per unit at the date of grant of $25.53 and $23.45, respectively. Performance units represent our unsecured obligations to issue shares of our common stock. Under the terms of these awards, a grantee may earn from 0% to 200% of his or her target units, with the ultimate number of units earned upon settlement (and expense recognized) dependent on the our level of achievement with respect to certain specified cumulative performance targets during the three-year period specified in each award (the "performance period") and satisfaction of the employee service condition. The following table presents a summary of the activity for our performance unit awards assuming 100% payout: Performance Unit Awards Number of Weighted Weighted Unvested at September 30, 2016 $ Granted Vested — — Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at September 30, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The maximum compensation expense to be potentially recognized in connection with all outstanding performance unit awards is approximately $9.6 million, including $1.7 million of cumulative expense recognized on or prior to September 30, 2017. Service-Based Awards Stock Option Awards During the fiscal years ended September 30, 2017, 2016 and 2015, we granted approximately 1.5 million, 1.5 million and 1.2 million stock options, respectively. The following table presents a summary of the activity for our stock option awards: Number of Weighted Weighted Aggregate Outstanding at September 30, 2016 $ $ Granted Exercised ) Forfeited or expired ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at September 30, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 30, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes additional information about stock options outstanding at September 30, 2017 under our share-based compensation plans: Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted Weighted Number of Weighted $5.24 - 19.99 $ $ $20.00 - 24.99 $25.00 - 31.58 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average assumptions used in the Black-Scholes model relating to the valuation of our stock options are as follows: Year Ended 2017 2016 2015 Expected life (in years) Expected volatility for the Company's stock % % % Risk-free interest rate % % % Dividend yield % % % The expected life of options awarded represents the period of time that such options are expected to be outstanding and is based on our historical experience. The risk-free interest rate is based on the zero-coupon U.S. Treasury notes with a term comparable to the expected life of an award at the date of the grant. Since we do not currently expect to pay dividends, the dividend yield used for this purpose is 0%. The weighted average fair value per share at the date of grant of the stock options awarded during the fiscal years 2017, 2016 and 2015 was $6.37, $6.32 and $8.78, respectively. The aggregate fair value of stock options that vested during the fiscal years 2017, 2016 and 2015 was $13.1 million, $16.5 million and $10.0 million, respectively. The aggregate intrinsic value of options exercised during the fiscal years 2017, 2016 and 2015 was $7.7 million, $11.0 million and $86.7 million, respectively. The total cash received during the fiscal years 2017, 2016 and 2015 from these option exercises was $17.3 million, $16.2 million and $54.4 million, respectively, and the tax benefit realized for the tax deductions from these option exercises was $2.9 million, $3.7 million and $31.7 million, respectively. At September 30, 2017, approximately $7.0 million of total unrecognized compensation costs related to unvested stock option awards are expected to be recognized over the weighted average period of 1.6 years. RSAs During the fiscal years ended September 30, 2017, 2016 and 2015, we granted approximately 35,000, 40,000 and 222,000 RSAs with a weighted average fair value per share at the date of grant of $23.79, $25.35 and $29.23, respectively. A RSA is an award of shares of our common stock that have full voting and dividend rights but are restricted with regard to sale or transfer. These restrictions lapse ratably over a specified period of time (generally three to five years). RSAs are independent of stock option grants and are generally subject to forfeiture if employment terminates prior to these restrictions lapsing, subject to certain retirement provisions contained in the 2010 Plan. The following table presents a summary of the activity for our RSAs: Restricted Stock Awards Number of Weighted Weighted Unvested at September 30, 2016 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at September 30, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2017, approximately $1.5 million of total unrecognized compensation costs related to unvested RSAs are expected to be recognized over the weighted average period of 1.3 years. RSUs As of September 30, 2017, we have granted RSU awards only to our non-employee directors. During the fiscal years ended September 30, 2017, 2016 and 2015, we granted approximately 42,000, 28,000 and 20,000 RSUs with a weighted average fair value per unit at the date of grant of $25.09, $24.10 and $29.20, respectively. RSUs represent our unsecured promise to issue shares of our common stock. Unless forfeited prior to the vesting date, RSUs are converted into shares of our common stock generally on the vesting date. An independent director who receives an RSU award may elect, upon receipt of such award, to defer until a later date delivery of the shares of our common stock that would otherwise be issued on the vesting date. RSUs granted prior to the fiscal year 2012, are generally retained by the Company as deferred stock units that are not distributed until six months after the independent director's service as a director terminates. RSUs are independent of stock option grants and are generally subject to forfeiture if service terminates prior to the vesting of the units. Participants have no voting rights with respect to unvested RSUs. Under the 2010 Plan, we may settle the vested deferred stock units with shares of our common stock or in cash. The following table presents a summary of the activity for our RSUs for the fiscal year ended September 30, 2017: Restricted Stock Units Number of Weighted Weighted Unvested at September 30, 2016 — $ — — Granted Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at September 30, 2017 — $ — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2017, all RSUs previously awarded have vested and there are no unrecognized compensation costs in connection therewith.

Property and Equipment

Property and Equipment	12 Months Ended
	Sep. 30, 2017
Property and Equipment
Property and Equipment	8. Property and Equipment Property and equipment, net consists of the following (in thousands): September 30, 2017 2016 Land $ $ Buildings and building improvements Leasehold improvements Furniture, fixtures and equipment ​ ​ ​ ​ ​ ​ ​ ​ Total property and equipment, gross Less accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total property and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation expense for the fiscal years 2017, 2016 and 2015 was $99.2 million, $86.3 million and $75.1 million, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets The changes in the carrying amounts of goodwill during the fiscal years 2017 and 2016 are as follows (in thousands): Sally Beauty Beauty Systems Total Balance at September 30, 2015 $ $ $ Acquisitions — Foreign currency translation ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2016 $ $ $ Foreign currency translation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2017 $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We completed the annual assessment of goodwill and other intangible assets for impairment during the fiscal quarter ended March 31, 2017. No material impairment losses were recognized in the current or prior periods presented in connection with our goodwill and other intangible assets. In connection with our assessment of goodwill for impairment, we performed a quantitative test of each of our reporting units and each passed by a significant margin in the periods presented. The following table provides the carrying value for intangible assets with indefinite lives, excluding goodwill, and the gross carrying value and accumulated amortization for intangible assets subject to amortization by operating segment at September 30, 2017 and 2016 (in thousands): September 30, 2017 September 30, 2016 Sally Beauty Beauty Systems Total Sally Beauty Beauty Systems Total Intangible assets with indefinite lives: Trade names $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible assets subject to amortization: Gross carrying amount Accumulated amortization ) ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net book value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets, excluding goodwill, net $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization expense totaled $13.1 million, $13.3 million and $14.3 million for the fiscal years ended September 30, 2017, 2016 and 2015, respectively. During the fiscal year ended September 30, 2016, intangible assets subject to amortization in the amount of $10.1 million were recorded by BSG in connection with two individually immaterial acquisitions. As of September 30, 2017, future amortization expense related to intangible assets subject to amortization is estimated as follows (in thousands): Fiscal Year: 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average remaining amortization period for intangible assets subject to amortization is approximately four years.

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Sep. 30, 2017
Accrued Liabilities
Accrued Liabilities	10. Accrued Liabilities Accrued liabilities consist of the following (in thousands): September 30, 2017 2016 Compensation and benefits $ $ Deferred revenue Interest payable Rental obligations Loss contingency obligation Insurance reserves Property and other taxes Operating accruals and other ​ ​ ​ ​ ​ ​ ​ ​ Total accrued liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Sep. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Lease Commitments Our leases relate primarily to retail stores and warehousing properties. At September 30, 2017, future minimum payments under non-cancelable operating leases, net of sublease income, are as follows (in thousands): Fiscal Year: 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Certain of our leases require us to pay a portion of real estate taxes, insurance, maintenance and special assessments assessed by the lessor. Also, certain of our leases include renewal options and escalation clauses. Aggregate rental expense for all operating leases amounted to $242.0 million, $231.0 million and $223.2 million for the fiscal years 2017, 2016 and 2015, respectively, and is included in selling, general and administrative expenses in our consolidated statements of earnings. Contingencies Legal Proceedings The Company is, from time to time, involved in various claims and lawsuits incidental to the conduct of its business in the ordinary course. We do not believe that the ultimate resolution of these matters will have a material adverse impact on our consolidated financial position, results of operations or cash flows. Other Contingencies During the fiscal year 2014, we disclosed that we had experienced a data security incident (the "2014 data security incident"). During the fiscal year 2015, we disclosed that we had experienced a second data security incident (the "2015 data security incident" and, together with the 2014 data security incident, the "data security incidents"). The data security incidents involved the unauthorized installation of malicious software ("malware") on our information technology systems, including our point-of-sale systems that we believe may have placed at risk certain payment card data for some transactions. The costs that we have incurred to date in connection with the data security incidents include assessments by payment card networks, professional advisory fees and legal fees relating to investigating and remediating the data security incidents. In April 2017, we entered into agreements pursuant to which all existing claims and assessments by certain payment card networks were settled. We cannot provide any assurances regarding whether additional assessments by payment card networks will be received. For the fiscal years 2016 and 2015, selling, general and administrative expenses reflect expenses of $14.6 million and $5.6 million (net of related insurance recovery of $0.6 million), respectively, related to the data security incidents. We expect to incur additional costs and expenses related to the data security incidents in the future. These costs and expenses may result from potential additional liabilities to other payment card networks, governmental or third party investigations, proceedings or litigation and legal and other fees necessary to defend against any potential liabilities or claims, and further investigatory and remediation costs. While we do not anticipate these additional costs and expenses or liabilities would have a material adverse impact on our business, financial condition and operating results, these additional costs and expenses could be significant. We provide healthcare benefits to most of our full-time employees. We are largely self-funded for the cost of the healthcare plan (including healthcare claims) primarily in the U.S., other than certain fees and out-of-pocket expenses paid by our employees. In addition, we retain a substantial portion of the risk related to certain workers' compensation, general liability, and automobile and property insurance. We record an estimated liability for the ultimate cost of claims incurred and unpaid as of the balance sheet date. The discounted estimated liability is included in accrued liabilities (current portion) and other liabilities (long-term portion) in our consolidated balance sheets. We carry insurance coverage in such amounts in excess of our self-insured retention that we believe to be reasonable. Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, penalties, the data security incidents and other sources, are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. We have no significant liabilities for loss contingencies at September 30, 2017 and 2016, except as disclosed above.

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	12 Months Ended
	Sep. 30, 2017
Short-term Borrowings and Long-term Debt
Short-term Borrowings and Long-term Debt	12. Short-term Borrowings and Long-Term Debt Details of long-term debt (which is reported at amortized cost) are as follows (dollars in thousands): September 30, 2017 2016 Interest Rates ABL facility $ $ — (i) Prime plus (0.25% to 0.50%) or; (ii) LIBOR plus (1.25% to 1.50%) Term loan B: Variable-rate tranche — LIBOR plus 2.50% Fixed-rate tranche — 4.500% Senior notes due Jun. 2022 — 5.750% Senior notes due Nov. 2023 5.500% Senior notes due Dec. 2025 5.625% ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ Plus: capital lease obligations Less: unamortized debt issuance costs, discount and premium, net ​ ​ ​ ​ ​ ​ ​ ​ ​ Total debt $ $ Less: current maturities ​ ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ When used in this Annual Report, LIBOR means the London Interbank Offered Rate. Maturities of our long-term debt, excluding capital leases, are as follows at September 30, 2017 (in thousands): Twelve months ending September 30: 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In the fiscal year 2012, Sally Holdings and Sally Capital Inc. (collectively, the "Issuers" or "Borrowers"), both indirectly wholly-owned subsidiaries of the Company, issued $850.0 million aggregate principal amount of their senior notes due 2022, including $150.0 million of the aggregate principal amount issued at par plus a premium. Such premium was being amortized over the term of the notes using the effective interest method. The net proceeds from these debt issuances were used to retire outstanding indebtedness in the aggregate principal amount of approximately $1,391.9 million and for general corporate purposes. In July 2017, we redeemed in full the senior notes due 2022 at a redemption premium equal to 102.875% primarily with the net proceeds from the borrowings from the term loan B, as further discussed below. In the fiscal year 2014, the Issuers issued $200.0 million aggregate principal amount of their 5.5% Senior Notes due 2023 (the "senior notes due 2023") at par. The net proceeds from this debt issuance, approximately $196.3 million, were used to repay borrowings outstanding under the predecessor ABL facility, as defined below, of $88.5 million (which borrowings were primarily used to fund share repurchases) and for general corporate purposes, including share repurchases. In the fiscal year 2016, the Issuers issued $750.0 million aggregate principal amount of their senior notes due 2025 at par. We used the net proceeds from this debt issuance (approximately $737.3 million) as well as cash from operations and borrowings under the predecessor ABL facility, to redeem in full our senior notes due 2019 at a total redemption cost of $775.8 million, including the redemption premium but excluding accrued interest paid upon redemption of such notes. In connection with our redemption of the senior notes due 2019, we recorded a loss on extinguishment of debt in the amount of approximately $33.3 million, including a redemption premium in the amount of approximately $25.8 million and unamortized deferred financing costs of approximately $7.5 million. In connection with the issuance of the senior notes due 2025, we incurred and capitalized financing costs of approximately $12.7 million. This amount is reported as a deduction from the senior notes due 2025 on our consolidated balance sheets and is being amortized over the term of the senior notes due 2025 using the effective interest method. On July 6, 2017, the Borrowers entered into a seven-year term loan pursuant to which they borrowed $850 million (the "term loan B"). We used the net proceeds from the term loan B (approximately $845.8 million), as well as existing cash balances and borrowings under the ABL facility in the amount of $33.5 million, to (i) redeem $850.0 million aggregate outstanding principal amount of our senior notes due 2022 at a premium, plus accrued and unpaid interest up to, but not including, July 6, 2017 and (ii) pay fees and expenses incurred in connection with the origination of the term loan B and redemption of the senior notes due 2022. In connection with our redemption of our senior notes due 2022, we recorded a loss on extinguishment of debt in the amount of approximately $27.6 million, including a redemption premium in the amount of approximately $24.4 million and unamortized deferred financing costs of approximately $8.0 million, partially offset by the write-off of unamortized premium of $4.8 million. In connection with the term loan B, we incurred and capitalized financing costs of approximately $6.9 million. The term loan B consists of a variable-rate tranche in the amount of $550 million which bears interest at LIBOR plus 2.50% or, at the option of the Borrowers, at an alternate base rate plus 1.50%, and a fixed-rate tranche in the amount of $300 million which bears interest at 4.50%. The agreement governing the term loan B contains a customary covenant package substantially consistent with the indentures governing our senior notes. Borrowings under the term loan B are secured by a first-priority lien in and upon substantially all of the assets of the Company and its domestic subsidiaries other than the accounts, inventory (and the proceeds thereof) and other assets that secure the ABL facility on a first priority basis. In addition, the variable-rate tranche contains provisions requiring quarterly repayments of principal in an amount equal to 0.25% of the original amount for the variable-rate tranche. The term loan B matures on July 5, 2024. Interest on the term loan B is payable monthly. Furthermore, on July 6, 2017, we entered into an amended and restated $500 million, five-year asset-based senior secured loan facility (the "ABL facility"). In connection with our modification of the ABL facility, we recorded a loss on extinguishment of debt in the amount of approximately $0.4 million, and incurred and capitalized additional financing costs of approximately $1.5 million. The availability of funds under the ABL facility is subject to a customary borrowing base comprised of: (i) a specified percentage of our eligible credit card and trade accounts receivable (as defined therein) and (ii) a specified percentage of our eligible inventory (as defined therein), and reduced by (iii) certain customary reserves and adjustments and by certain outstanding letters of credit. The ABL facility includes a $25.0 million Canadian sub-facility for our Canadian operations. The terms of the new ABL facility are substantially the same as those of the predecessor ABL facility, except for an extension of the maturity to July 6, 2022, improved pricing, a relaxation of the restrictions on Sally Holdings' ability to make Restricted Payments, as defined in the ABL facility, and certain other improved terms. Borrowings under the ABL facility are secured by the accounts, inventory and credit card receivables (and related general intangibles and other property) of our domestic subsidiaries (and, in the case of borrowings under the Canadian sub-facility, such assets of our Canadian subsidiaries and, solely with respect to borrowings by SBH Finance B.V., intercompany notes owed to SBH Finance B.V. by our foreign subsidiaries). In addition, the terms of the ABL facility contain a commitment fee of 0.20% on the unused portion of the facility. The ABL facility is pre-payable, and the commitments thereunder may be terminated, in whole or in part at any time without penalty or premium. At September 30, 2017, we had $389.6 million available for borrowing under the ABL facility, including the Canadian sub-facility. At September 30, 2017 and 2016, unamortized debt issuance costs of $19.4 million and $23.7 million, respectively, related to our senior notes and term loan B, are reported as a deduction from the related long-term debt obligations on our consolidated balance sheets. In addition, unamortized debt issuance costs related to the ABL facility of $2.0 million and $1.6 million, at September 30, 2017 and 2016, respectively, are reported in other assets in our consolidated balance sheets. The senior notes due 2023 and the senior notes due 2025, which we refer to collectively as "the Notes" or "the senior notes due 2023 and 2025," are unsecured obligations of the Issuers and are jointly and severally guaranteed by Sally Beauty Holdings, Inc. and Sally Investment, and by each material domestic subsidiary of the Company. Interest on the senior notes due 2023 and 2025 is payable semi-annually, during the Company's first and third fiscal quarters. Please see Note 18 for certain condensed financial statement data pertaining to Sally Beauty, the Issuers, the guarantor subsidiaries and the non-guarantor subsidiaries. The senior notes due 2023 carry optional redemption features whereby we have the option to redeem the notes, in whole or in part, on or after November 1, 2021 at par, plus accrued and unpaid interest, if any, and on or after November 1, 2018 at par plus a premium declining ratably to par, plus accrued and unpaid interest, if any. Prior to November 1, 2018, we may redeem the notes, in whole or in part, at a redemption price equal to par plus a make-whole premium as provided in the indenture, plus accrued and unpaid interest, if any. The senior notes due 2025 carry optional redemption features whereby we have the option to redeem the notes, in whole or in part, on or after December 1, 2023 at par, plus accrued and unpaid interest, if any, and on or after December 1, 2020 at par plus a premium declining ratably to par, plus accrued and unpaid interest, if any. Prior to December 1, 2020, we may redeem the notes, in whole or in part, at a redemption price equal to par plus a make-whole premium as provided in the indenture, plus accrued and unpaid interest, if any. In addition, on or prior to December 1, 2018, we have the right to redeem the notes at par plus a specified premium, plus accrued and unpaid interest, if any, up to 35% of the aggregate principal amount of notes originally issued, subject to certain limitations, with the proceeds from certain kinds of equity offerings, as defined in the indenture. The agreements and instruments governing the debt of Sally Holdings and its subsidiaries contain material limitations on our ability to pay dividends and other restricted payments. The ABL facility and the indentures governing the senior notes due 2023 and 2025 contain other covenants regarding restrictions on the disposition of assets, the granting of liens and security interests, the prepayment of certain indebtedness, and other matters and customary events of default, including customary cross-default and/or cross-acceleration provisions. As of September 30, 2017, all the net assets of our consolidated subsidiaries were unrestricted from transfer under our credit arrangements. At September 30, 2017 and 2016, we had no off-balance sheet financing arrangements other than obligations under operating leases and letters of credit (related to inventory purchases and self-insurance programs) in the aggregate amount of $20.4 million and $21.6 million, respectively.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	12 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	13. Derivative Instruments and Hedging Activities Risk Management Objectives of Using Derivative Instruments From time to time we use foreign exchange contracts (including foreign currency forwards and options), as part of our overall risk management strategy, to fix the amount of certain foreign assets and obligations relative to our functional and reporting currency (the U.S. dollar) or relative to the functional currency of certain of our consolidated subsidiaries, or to add stability to cash flows resulting from our net investments (including intercompany notes not permanently invested) and earnings denominated in foreign currencies. Our foreign currency exposures at times offset each other, sometimes providing a natural hedge against our foreign currency risk. In connection with the remaining foreign currency risk, we use foreign exchange contracts to effectively fix the foreign currency exchange rate applicable to specific anticipated foreign currency-denominated cash flows thus limiting the potential fluctuations in such cash flows as a result of foreign currency market movements. In addition, from time to time we use interest rate derivatives (including interest rate caps and swaps) as part of our overall risk management strategy to add stability to the interest payments due in connection with our debt obligations. At September 30, 2017, our exposure to interest rate fluctuations relates to interest payments, if any, under the ABL facility and the variable-rate tranche of the term loan B. In connection with the variable-rate tranche of its term loan B, we use interest rate caps to partially mitigate our exposure to significant interest rate fluctuations. As of September 30, 2017, we did not purchase or hold any derivative instruments for trading or speculative purposes. Designated Cash Flow Hedges In July 2017, we purchased two interest rate caps with an initial aggregate notional amount of $550 million (the "interest rate caps"). The interest rate caps expire on June 30, 2023 and are designated and qualify as effective cash flow hedges, in accordance with ASC Topic 815, Derivatives and Hedging . Accordingly, changes in the fair value of the interest rate caps are recorded quarterly, net of income tax, and are included in AOCL. Any hedge ineffectiveness is recognized in interest expense in our consolidated statements of earnings. No ineffectiveness was recognized in the fiscal year ending September 30, 2017. We did not hold derivative instruments designated and qualifying as cash flow hedges at September 30, 2016 or during the fiscal year then ended. Non-designated Hedges We may use derivative instruments not designated as hedges or that do not meet the requirements for hedge accounting in order to manage our exposure to foreign currency exchange rate or interest rate movements, as appropriate. The changes in the fair value (i.e., marked-to-market adjustments) of these derivative instruments are adjusted quarterly and are recorded in selling, general and administrative expenses in our consolidated statements of earnings. As such, at September 30, 2017, we held foreign currency forward contracts with an aggregate notional amount of $99.6 million based upon exchange rates at September 30, 2017. These derivative instruments, which are note designated and qualifying, expire at various dates through September 30, 2018. The table below presents the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets (in thousands): Asset Derivatives Liability Derivatives September 30, September 30, Classification 2017 2016 Classification 2017 2016 Derivatives designated as hedging instruments: Interest Rate Caps Other current assets $ $ — N/A $ — $ — Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets — Accrued liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The table below presents the effect of our derivative financial instruments on our consolidated statements of earnings and consolidated statements of comprehensive income, as appropriate, for the fiscal years ended September 30, 2017, 2016 and 2015 (in thousands): Amount of Gain or Amount of Gain or (Loss) Reclassified Fiscal Year Ended Fiscal Year Ended Derivatives Designated as 2017 2016 2015 Classification 2017 2016 2015 Interest Rate Caps $ ) $ — $ — Interest Expense $ — $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Fiscal Year Ended Classification of Gain or (Loss) Derivatives Not Designated as 2017 2016 2015 Foreign Exchange Contracts Selling, general and administrative expenses $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit-risk-related Contingent Features At September 30, 2017, the aggregate fair value of all foreign exchange contracts held which consisted of derivative instruments in a liability position was approximately $0.2 million. We were under no obligation to post and had not posted any collateral related to the derivative instruments in a liability position. We believe the counterparties to our derivative instruments are of substantial resources and strong creditworthiness. However, these transactions result in exposure to credit risk in the event of default by a counterparty. However, at September 30, 2017, no credit risk losses are deemed probable.

401(k) and Profit Sharing Plan

401(k) and Profit Sharing Plan	12 Months Ended
	Sep. 30, 2017
401(k) and Profit Sharing Plan
401(k) and Profit Sharing Plan	14. 401(k) and Profit Sharing Plan We sponsor the Sally Beauty 401(k) and Profit Sharing Plan (the "401(k) Plan"), which is a qualified defined contribution plan. The 401(k) Plan covers our U.S.-based employees who meet certain eligibility requirements and who are not members of a collective bargaining unit. Under the terms of the 401(k) Plan, employees may contribute a percentage of their annual compensation up to certain maximums, as defined by the 401(k) Plan and by the U.S. Internal Revenue Code. We currently match a portion of employee contributions to the plan. We recognized expense of $7.1 million, $7.1 million and $6.8 million in the fiscal years ended September 30, 2017, 2016 and 2015, respectively, related to such matching contributions and these amounts are included in selling, general and administrative expenses in our consolidated statements of earnings. In addition, pursuant to the 401(k) Plan, we may elect to make voluntary profit sharing contributions to the accounts of eligible employees. Our profit sharing contributions to the 401(k) Plan have been determined by the Compensation Committee of the Board. We recognized expense of $2.6 million and $3.3 million in the fiscal years ended September 30, 2016 and 2015, respectively, related to such profit sharing contributions to the 401(k) Plan and these amounts are included in selling, general and administrative expenses in our consolidated statements of earnings. During the fiscal year ended September 30, 2017, we did not make a profit sharing contribution to the 401(k) Plan.

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2017
Income Taxes
Income Taxes	15. Income Taxes The provision for income taxes for the fiscal years 2017, 2016 and 2015 consists of the following (in thousands): Fiscal Year Ended 2017 2016 2015 Current: Federal $ $ $ Foreign State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current portion ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal Foreign ) ) ) State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred portion ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below: Fiscal Year Ended 2017 2016 2015 Statutory tax rate % % % State income taxes, net of federal tax benefit Effect of foreign operations ) ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands): At September 30, 2017 2016 Deferred tax assets attributable to: Share-based compensation expense $ $ Accrued liabilities Inventory adjustments Foreign loss carryforwards Unrecognized tax benefits Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets, net ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities attributable to: Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liability $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We believe that it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, net of the valuation allowance. We have recorded a valuation allowance to account for uncertainties regarding recoverability of certain deferred tax assets, primarily foreign loss carry-forwards. Domestic earnings before provision for income taxes were $332.5 million, $327.1 million and $362.1 million in the fiscal years 2017, 2016 and 2015, respectively. Foreign operations had earnings before provision for income taxes of $13.2 million, $27.0 million and $16.4 million in the fiscal years 2017, 2016 and 2015, respectively. Tax reserves are evaluated and adjusted as appropriate, while taking into account the progress of audits by various taxing jurisdictions and other changes in relevant facts and circumstances evident at each balance sheet date. We do not expect the outcome of current or future tax audits to have a material adverse effect on our consolidated financial condition, results of operations or cash flow. At September 30, 2017, undistributed earnings of our foreign operations are intended to remain permanently invested to finance anticipated future growth and expansion. Accordingly, federal and state income taxes have not been provided on accumulated but undistributed earnings of $286.8 million and $263.0 million as of September 30, 2017 and 2016, respectively, as such earnings have been permanently reinvested in the foreign operations. A determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings is not practicable. At September 30, 2017 and 2016, we had total operating loss carry-forwards of $135.6 million and $117.9 million, respectively, of which $117.0 million and $104.0 million, respectively, are subject to a valuation allowance. At September 30, 2017, operating loss carry-forwards of $19.2 million expire between 2018 and 2029 and operating loss carry-forwards of $116.4 million have no expiration date. At September 30, 2017 and 2016, the Company had tax credit carry-forwards of $2.8 million and $3.1 million, respectively, including, at September 30, 2017, tax credit carry-forwards of $1.4 million that expire between 2024 and 2027, and tax credit carry-forwards of $1.4 million that have no expiration date. Tax credit carry-forwards of $1.2 million and $0.4 million are subject to a valuation allowance at September 30, 2017 and 2016, respectively. The changes in the amount of unrecognized tax benefits are as follows (in thousands): Fiscal Year 2017 2016 Balance at beginning of the fiscal year $ $ Increases related to prior year tax positions Decreases related to prior year tax positions — ) Increases related to current year tax positions Settlements — ) Lapse of statute ) ) ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of fiscal year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ If recognized, these positions would affect our effective tax rate. We recognize interest and penalties, accrued in connection with unrecognized tax benefits, in provision for income taxes. Accrued interest and penalties, in the aggregate, were $0.2 million at both September 30, 2017 and 2016. Because existing tax positions will continue to generate increased liabilities for unrecognized tax benefits over the next 12 months, and the fact that from time to time our tax returns are routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount of such change, or a range thereof, cannot reasonably be made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial condition or results of operations within the next 12 months. The IRS has concluded the field work associated with its examination of our consolidated federal income tax returns for the fiscal years ended September 30, 2007 through September 30, 2016, and issued its examination reports. The Company is currently seeking relief from double taxation through competent authority on certain cross-border adjustments related to the fiscal years ended September 30, 2007 through September 30, 2012, and it does not anticipate the ultimate resolution of these items to have a material impact on its financial statements. Our consolidated federal income tax return for the fiscal year ended September 30, 2017 is currently under IRS examination. Pending the resolution of the adjustments discussed in the preceding paragraph, our statute remains open for the years ended September 30, 2007 through September 30, 2012, and from the year ended September 30, 2014 forward. Our foreign subsidiaries are impacted by various statutes of limitations, which are generally open from 2012 forward. Generally, states' statutes in the United States are open for tax reviews from 2007 forward.

Acquisitions

Acquisitions	12 Months Ended
	Sep. 30, 2017
Acquisitions
Acquisitions	16. Acquisitions In the fiscal year ended September 30, 2016, we acquired certain assets and business operations of Peerless, a distributor of beauty products with 15 stores operating in the Midwestern region of the U.S. for approximately $23.9 million. The results of operations of Peerless are included in our consolidated financial statements subsequent to the acquisition date. We recorded intangible assets subject to amortization of $7.8 million and goodwill of $13.1 million, which is expected to be deductible for tax purposes, in connection with this acquisition. In addition, we completed several other individually immaterial acquisitions during the fiscal years 2016 and 2015 at the aggregate cost of approximately $2.3 million and $7.1 million, respectively, and recorded intangible assets subject to amortization of $2.3 million and $2.2 million in connection with these acquisitions. Further, we recorded goodwill in the amount of $2.8 million, the majority of which is expected to be deductible for tax purposes, in connection with these individually immaterial acquisitions completed in the fiscal year 2015. We funded these acquisitions with cash from operations and borrowings under the ABL facility.

Business Segments and Geographi

Business Segments and Geographic Area Information	12 Months Ended
	Sep. 30, 2017
Business Segments and Geographic Area Information
Business Segments and Geographic Area Information	17. Business Segments and Geographic Area Information Our business is organized into two reportable segments: (i) Sally Beauty Supply ("SBS"), a domestic and international chain of retail stores and a consumer-facing e-commerce website that offers professional beauty supplies to both salon professionals and retail customers primarily in North America, Puerto Rico, and parts of Europe and South America and (ii) Beauty Systems Group ("BSG"), including its franchise-based business Armstrong McCall, a full service distributor of beauty products and supplies that offers professional beauty products directly to salons and salon professionals through its professional-only stores, e-commerce websites and its own sales force in partially exclusive geographical territories in the U.S. and Canada. The accounting policies of both of our reportable segments are the same as described in the summary of significant accounting policies contained in Note 2. Sales between segments, which were eliminated in consolidation, were not material for the fiscal years ended September 30, 2017, 2016 and 2015. Business Segments Information Segment data for the fiscal years 2017, 2016 and 2015 are as follows (in thousands): 2017 2016 2015 Net sales: SBS $ $ $ BSG Total $ $ $ Earnings before provision for income taxes: Segment operating earnings: SBS(a) $ $ $ BSG Segment operating earnings Unallocated expenses(b) ) ) ) Restructuring charges ) — — Consolidated operating earnings Interest expense(c) ) ) ) Earnings before provision for income taxes $ $ $ Depreciation and amortization: SBS $ $ $ BSG Corporate Total $ $ $ Payments for property and equipment: SBS $ $ $ BSG Corporate Total $ $ $ Total assets (as of September 30): SBS $ $ $ BSG Sub-total Corporate Total $ $ $ (a) For the fiscal year 2015, SBS's operating earnings reflects $5.3 million in expenses related to a restructuring of its operations in Germany. (b) Unallocated expenses consist of corporate and shared costs and are included in selling, general and administrative expenses in our consolidated statements of earnings. For the fiscal years 2016 and 2015, unallocated expenses reflect $14.6 million and $5.6 million (net of related insurance recovery of $0.6 million in 2015), respectively, related to the data security incidents. (c) For the fiscal years 2017 and 2016, interest expense includes a loss on extinguishment of debt of $28.0 million and $33.3 million, respectively, in connection with the Company's redemption of certain senior notes. Geographic Area Information Certain geographic data is as follows (in thousands): 2017 2016 2015 Net sales (for the fiscal year indicated): United States $ $ $ Other countries ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-lived assets (as of September 30): United States $ $ $ United Kingdom Other countries ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales are attributable to individual countries based on the location of the customer. For the fiscal year 2017, 2016 and 2015, net sales outside the U.S. include a net negative impact from changes in foreign currency exchange rates of $30.0 million, $56.4 million and $87.3 million, respectively.

Parent, Issuers, Guarantor and

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements	12 Months Ended
	Sep. 30, 2017
Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements
Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements	18. Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements The following consolidating financial information presents the condensed consolidating balance sheets as of September 30, 2017 and 2016, the related condensed consolidating statements of earnings and comprehensive income, and the condensed consolidating statements of cash flows for each of the three fiscal years in the period ended September 30, 2017 of: (i) Sally Beauty Holdings, Inc., or the "Parent;" (ii) Sally Holdings and Sally Capital Inc.; (iii) the guarantor subsidiaries; (iv) the non-guarantor subsidiaries; (v) elimination entries necessary for consolidation purposes; and (vi) Sally Beauty on a consolidated basis. Investments in subsidiaries are accounted for using the equity method for purposes of the consolidating presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Separate financial statements and other disclosures with respect to the subsidiary guarantors have not been provided since we believe the following information is sufficient, as guarantor subsidiaries are 100% indirectly owned by the Parent and all guarantees are full and unconditional. Condensed Consolidating Balance Sheet Parent Sally Guarantor Non- Consolidating Sally Beauty Assets Cash and cash equivalents $ — $ $ $ $ — $ Trade and other accounts receivable, less allowance for doubtful accounts — — Due from affiliates — — — ) — Inventory — — — Other current assets — Deferred income tax assets — — Property and equipment, net — — Investment in subsidiaries — ) — Goodwill and other intangible assets, net — — — Other assets ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' (Deficit) Equity Accounts payable $ $ $ $ $ — $ Due to affiliates — ) — Accrued liabilities — Income taxes payable — — — Long-term debt — — Other liabilities — — — Deferred income tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) Total stockholders' (deficit) equity ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' (deficit) equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet Parent Sally Guarantor Non- Consolidating Sally Beauty Assets Cash and cash equivalents $ — $ $ $ $ — $ Trade and other accounts receivable, less allowance for doubtful accounts — — Due from affiliates — — — ) — Inventory — — — Other current assets — Deferred income tax assets — — Property and equipment, net — — Investment in subsidiaries — ) — Goodwill and other intangible assets, net — — — Other assets ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' (Deficit) Equity Accounts payable $ $ $ $ $ — $ Due to affiliates — ) — Accrued liabilities — Income taxes payable — — — Long-term debt — — Other liabilities — — — Deferred income tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) Total stockholders' (deficit) equity ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' (deficit) equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Earnings and Comprehensive Income Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net sales $ — $ — $ $ $ — $ Related party sales — — — ) — Cost of products sold — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit — — — Selling, general and administrative expenses — Depreciation and amortization — — Restructuring charges — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating earnings (loss) ) ) — Interest expense — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) before provision for income taxes ) ) — Provision (benefit) for income taxes ) ) — Equity in earnings of subsidiaries, net of tax — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss), net of tax — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total comprehensive income $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Earnings and Comprehensive Income Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net sales $ — $ — $ $ $ — $ Related party sales — — — ) — Cost of products sold — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit — — — Selling, general and administrative expenses — Depreciation and amortization — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating earnings (loss) ) ) — Interest expense (income) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) before provision for income taxes ) ) — Provision (benefit) for income taxes ) ) — Equity in earnings of subsidiaries, net of tax — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss), net of tax — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total comprehensive income $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Earnings and Comprehensive Income Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net sales $ — $ — $ $ $ — $ Related party sales — — — ) — Cost of products sold — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit — — — Selling, general and administrative expenses — Depreciation and amortization — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating earnings (loss) ) ) — Interest expense — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) before provision for income taxes ) ) — Provision (benefit) for income taxes ) ) — Equity in earnings of subsidiaries, net of tax — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss), net of tax — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total comprehensive income (loss) $ $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net cash provided by operating activities $ $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities: Payments for property and equipment, net — — ) ) — ) Due from affiliates — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by investing activities — — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — — — — Repayments of long-term debt — ) ) ) — ) Debt issuance costs — ) — — — ) Repurchases of common stock ) — — — — ) Proceeds from exercises of stock options — — — — Due to affiliates ) — ) — Excess tax shortfall from share-based compensation ) — — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of foreign exchange rate changes on cash and cash equivalents — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents — ) ) — ) Cash and cash equivalents, beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ — $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net cash provided by operating activities $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities: Payments for property and equipment, net ) — ) ) — ) Acquisitions, net of cash acquired — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by investing activities ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — — — — Repayments of long-term debt — ) ) ) — ) Debt issuance costs — ) — — — ) Repurchases of common stock ) — — — — ) Proceeds from exercises of stock options — — — — Excess tax benefit from share-based compensation — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by financing activities ) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of foreign exchange rate changes on cash and cash equivalents — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents — ) ) — ) Cash and cash equivalents, beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ — $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net cash provided by operating activities $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities: Payments for property and equipment, net ) — ) ) — ) Acquisitions, net of cash acquired — — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by investing activities ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — — — Repayments of long-term debt — — ) ) — ) Repurchases of common stock ) — — — — ) Proceeds from exercises of stock options — — — — Excess tax benefit from share-based compensation — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by financing activities ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of foreign exchange rate changes on cash and cash equivalents — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents — ) — Cash and cash equivalents, beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ — $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

2017 Restructuring Plan

2017 Restructuring Plan	12 Months Ended
	Sep. 30, 2017
2017 Restructuring Plan
2017 Restructuring Plan	19. 2017 Restructuring Plan In January 2017, the Board approved a comprehensive restructuring plan (the "2017 Restructuring Plan") for our businesses that included a number of organizational efficiency initiatives and other cost reduction opportunities. The 2017 Restructuring Plan comprised the closure of four administrative offices in the U.S. and Canada, reductions in both salaried and hourly workforce and certain other cost reduction activities. In the quarter ended September 30, 2017, we expanded the restructuring initiatives contemplated by the 2017 Restructuring Plan to encompass some other underperforming international operations. At September 30, 2017, the initiatives contemplated by the 2017 Restructuring Plan have been substantially completed. The liability related to the 2017 Restructuring Plan, which is included in accrued liabilities in our consolidated balance sheet, is as follows at September 30, 2017 (in thousands): Restructuring Activity Liability at Expenses Expenses Paid Adjustments Liability at Workforce reductions $ — $ $ $ — $ Facility closures — — Other — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses include non-cash costs of $4.7 million consisting primarily of asset impairments in connection with the 2017 Restructuring Plan. Expenses represent costs incurred by our SBS ($13.7 million), BSG ($6.6 million) and corporate ($2.4 million) business activities. In connection with the 2017 Restructuring Plan, we re-measured certain long-lived assets and intangible assets with definite lives. These assets had a carrying value of $4.4 million and were adjusted down to their estimated fair values. The fair value measurements for these purpose were based on unobservable inputs (Level 3).

Subsequent Event

Subsequent Event	12 Months Ended
	Sep. 30, 2017
Subsequent Event
Subsequent Event	20. Subsequent Event On November 10, 2017, our Board of Directors approved an international restructuring plan (the "2018 Restructuring Plan") focused on significantly improving the profitability of our international businesses, with particular focus on our European operations. We expect to incur restructuring charges in the range of $12 million to $14 million related primarily to potential employee separation costs. We anticipate substantially completing the 2018 Restructuring Plan and recognizing the majority of the resulting expenses in the fiscal year 2018.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Sep. 30, 2017
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	21. Quarterly Financial Data (Unaudited) Certain unaudited quarterly consolidated statement of earnings information for the fiscal years ended September 30, 2017 and 2016 is summarized below (in thousands, except per share data): Fiscal Year 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2017: Net sales $ $ $ $ Gross profit $ $ $ $ Net earnings $ $ $ $ Earnings per share(a) Basic $ $ $ $ Diluted $ $ $ $ 2016: Net sales $ $ $ $ Gross profit $ $ $ $ Net earnings $ $ $ $ Earnings per share(a) Basic $ $ $ $ Diluted $ $ $ $ (a) The sum of the quarterly earnings per share may not equal the full year amount due to rounding of the calculated amounts.

Significant Accounting Polici29

Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2017
Significant Accounting Policies
Use of Estimates	Use of Estimates In accordance with GAAP, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosures of contingent liabilities in the consolidated financial statements. Our most significant estimates relate to: the valuation of inventory, vendor rebates and concessions, retention of risk, income taxes, the assessment of long-lived assets and intangible assets for impairment, loss contingencies and share-based payments. Actual results may differ from these estimates in amounts that may be material to our consolidated financial statements. We believe that the estimates and assumptions used in the preparation of our consolidated financial statements are reasonable.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents generally represent highly liquid investments purchased from time to time which have an original maturity of three months or less. These investments are stated at cost, which approximates fair value. In addition, cash equivalents include proceeds due from customer credit and debit cards and third-party online payment systems transactions, which generally settle within one to three days, and were $20.5 million and $15.1 million at September 30, 2017 and 2016, respectively.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially expose us to concentration of credit risk consist primarily of investments, if any, in cash equivalents, accounts receivable and derivative instruments, including foreign exchange contracts and interest rate caps. We invest from time to time in securities of financial institutions we deem to be of high creditworthiness. We believe our accounts receivable are highly diversified due to the large number of individual customers comprising our customer base and their dispersion across diverse geographic regions. The counterparties to our derivative instruments are deemed by us to be of substantial resources and strong creditworthiness. We believe that no significant concentration of credit risk exists with respect to our investments, if any, in cash equivalents, our accounts receivable and our derivative instruments at September 30, 2017 and 2016.
Trade Accounts Receivable and Accounts Receivable, Other	Trade Accounts Receivable and Accounts Receivable, Other Trade accounts receivable are recorded at the values invoiced to customers and are stated net of the allowance for doubtful accounts. The allowance for doubtful accounts requires us to estimate the future collectability of amounts receivable at the balance sheet date. We record allowances for doubtful accounts on the basis of our historical collection data and current customer information. Customer account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. In our consolidated statements of earnings, bad debt expense is included in selling, general and administrative expenses. The allowance for doubtful accounts was $1.0 million and $1.4 million at September 30, 2017 and 2016, respectively. Other accounts receivable consist primarily of amounts earned from vendors under various contractual agreements and are recorded at the amounts that we estimate will be collected.
Inventory and Costs of Products Sold	Inventory and Cost of Products Sold Inventory consists primarily of beauty supplies and related accessories, and salon equipment for sale in the normal course of our business. Inventory is stated at the lower of cost, determined using the first-in, first-out ("FIFO") method, or net realizable value. Inventory cost reflects actual product costs, the cost of transportation to our distribution centers and certain shipping and handling costs, such as freight from the distribution centers to the stores and handling costs incurred at the distribution centers. When assessing the net realizable value of inventory, we consider several factors including estimates of future demand for our products, historical turn-over rates, the age and sales history of the inventory, and historic and anticipated changes in stock keeping units ("SKUs"). Physical inventory counts are performed at substantially all stores and significant distribution centers at least annually. Upon completion of physical inventory counts, our consolidated financial statements are adjusted to reflect actual quantities on hand. Between physical counts, we estimate inventory shrinkage based on our historical experience. We have policies and processes in place that are intended to minimize inventory shrinkage. Cost of products sold include actual product costs, the cost of transportation to our distribution centers, operating cost associated with our distribution centers (including employee compensation expense, depreciation and amortization, rent and other occupancy-related expenses), vendor rebates and allowances, inventory shrinkage and certain shipping and handling costs, such as freight from the distribution centers to the stores. All other shipping and handling costs are included in selling, general and administrative expenses when incurred. We deem cash consideration received from a supplier to be a reduction of the cost of products sold, unless it is in exchange for an asset or service or a reimbursement of a specific, incremental, identifiable cost incurred by us in selling the vendor's products. The majority of cash consideration we receive from vendors is considered to be a reduction of the cost of the related products and is reflected in cost of products sold in our consolidated statements of earnings as the related products are sold. Any portion of cash consideration received that is attributable to inventory on hand is reflected as a reduction of inventory.
Lease Accounting	Lease Accounting The majority of our lease agreements are for office space, company-operated stores and warehouse/distribution facilities and are accounted for as operating leases, consistent with Accounting Standards Codification ("ASC") Topic 840, Leases . Rent expense (including any rent abatements or escalation charges) is recognized on a straight-line basis from the date we take possession of the property to begin preparation of the site for occupancy to the end of the lease term, including renewal options that are considered reasonably assured. Certain lease agreements to which we are a party provide for contingent rents that are determined as a percentage of revenues in excess of specified levels. We record a contingent rent liability, along with the corresponding rent expense, when the specified levels of revenue have been achieved or when we determine that achieving the specified levels of revenue during the fiscal year is probable. Certain lease agreements to which we are a party provide for tenant improvement allowances. Tenant improvement allowances are recorded as deferred lease credits, included in accrued liabilities and other liabilities, as appropriate, on our consolidated balance sheets, and amortized on a straight-line basis over the lease term (including renewal options that are determined reasonably assured) as a reduction of rent expense. The amortization period used for deferred lease credits is generally consistent with the amortization period used for the constructed leasehold improvement asset for a given office, store or warehouse facility.
Valuation of Long-Lived Assets and Intangible Assets with Definite Lives	Valuation of Long-Lived Assets and Intangible Assets with Definite Lives Long-lived assets, such as property and equipment, including store equipment, and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The recoverability of long-lived assets and intangible assets subject to amortization is assessed by comparing the net carrying amount of each asset to the total estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.
Goodwill and Intangible Assets with Indefinite Lives	Goodwill and Intangible Assets with Indefinite Lives Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Our intangible assets with indefinite lives consist of trade names acquired in business combinations. Goodwill and intangible assets with indefinite lives are reviewed for impairment at least annually, usually during our second fiscal quarter, and whenever events or changes in circumstances indicate it is more-likely-than-not that the value of the asset may be impaired. When assessing goodwill and intangible assets with indefinite lives for potential impairment, we consider whether the value of the asset has been impaired by evaluating if various factors (including current operating results, anticipated future results and cash flows, and relevant market and economic conditions) indicate a possible impairment and, if appropriate, compare the carrying amount of the asset to its fair value. Based on our assessments, after taking into account potential triggering events there was no material impairment of goodwill or intangible assets with indefinite lives recognized in our consolidated financial statements in the current or prior fiscal years presented.
Self-Insurance Programs	Self-Insurance Programs We retain a substantial portion of the risk related to certain of its workers' compensation, general and auto liability, and property damage insurable loss exposure. Predetermined loss limits have been arranged with insurance companies to limit our exposure per occurrence and aggregate cash outlay. In addition, certain of our employees and their dependents are covered by a self-insurance program for healthcare benefit purposes (the "healthcare plan"). We maintain an annual stop-loss insurance policy for the healthcare plan. We record an estimated liability for the ultimate cost of claims incurred and unpaid as of the balance sheet date, which includes claims filed and estimated losses incurred but not yet reported. We estimate the ultimate cost based on an analysis of our historical data and actuarial estimates. These estimates are reviewed on a regular basis to ensure that the recorded liability is adequate. The long-term portions of these liabilities are recorded at their present value.
Revenue Recognition	Revenue Recognition We recognize sales revenue, net of estimated sales returns and cash discounts, when a customer consummates a point-of-sale transaction at a store or, in connection with merchandise shipped to a customer, when title and risk of loss pass to the customer (generally upon shipment). The cost of sales incentive programs, including customer and consumer coupons, is recognized as a reduction of revenue at the time of sale. Taxes collected from customers and remitted to governmental authorities are recorded on a net basis and are excluded from revenue. Sales returns are estimated based on historical return rates.
Advertising Costs	Advertising Costs Advertising costs relate mainly to print advertisements, digital marketing, trade shows and product education for salon professionals. Advertising costs incurred in connection with print advertisements are expensed the first time the advertisement is run. Other advertising costs are expensed when incurred. Advertising costs were $82.0 million, $93.0 million and $95.3 million for the fiscal years 2017, 2016 and 2015, respectively, and are included in selling, general and administrative expenses in our consolidated statements of earnings.
Share-based Compensation	Share-based Compensation From time to time we may grant, subject to approval by our Board of Directors (the "Board"), performance-based awards and service-based awards to our employees under the Sally Beauty Holdings, Inc. Amended and Restated 2010 Omnibus Incentive Plan (the "2010 Plan"), a stockholder-approved share-based compensation plan which allows for the issuance of up to 29.8 million shares of our common stock. We measure the cost of services received from our employees and directors in exchange for an award of equity instruments based on the fair value of the award on the date of grant. Service-based stock option awards are valued using the Black-Scholes option pricing model to estimate the fair value of each stock option award on the date of grant. Performance-based restricted stock units ("performance units"), and service-based restricted stock awards ("RSA" or "RSAs") and restricted stock units ("RSU" or "RSUs") are valued using the closing market price of our common stock on the date of grant. Stock options have a maximum term of ten years. The fair value of the service-based awards is expensed on a straight-line basis over the vesting period (generally three or four years for stock options, generally three to five years for RSAs and generally one year for RSUs) or, for stock options and RSAs, to the date a participant becomes eligible for retirement, if earlier. The fair value of the performance units are expensed over the requisite performance period (generally three years). For performance units, the number of shares, if any, which will be issued, is contingent upon both (a) employee service conditions and (b) our level of achievement with respect to specified performance targets. Periodic expense for performance unit awards, which is estimated quarterly, is based on our projected performance during the performance period compared to the performance targets contained in the award. As such, we estimate and recognize compensation expense for each award based on the percentage of the performance targets that we deem probable of achievement. Our assessment of the compensation expense, if any, to be ultimately recognized in connection with performance unit awards is based on currently available information.
Depreciation and Amortization	Depreciation and Amortization Depreciation of property and equipment is calculated using the straight-line method based on the estimated useful lives of the respective classes of assets. Building and building improvements are depreciated over periods ranging from five to 40 years. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or the term of the related lease, including renewals considered reasonably assured. Furniture, fixtures and equipment are depreciated over periods ranging from two to ten years. Expenditures for maintenance and repairs are included in selling, general and administrative expenses when incurred, while expenditures for major renewals and improvements are capitalized. Our intangible assets subject to amortization include customer relationships, certain distribution rights and non-competition agreements, and are amortized, on a straight-line basis, over periods of two to 13 years. Such amortization periods are based on the estimated useful lives of the assets and take into account the terms of any underlying agreements, but do not generally reflect all renewal terms contractually available to us.
Income Taxes	Income Taxes We recognize deferred income taxes for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are anticipated to be recovered or settled. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of earnings in the period of enactment. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets to the amount expected to be realized unless it is more-likely-than-not that such assets will be realized in full. The estimated tax benefit of an uncertain tax position is recorded in our financial statements only after determining a more-likely-than-not probability that the uncertain tax position will withstand challenge, if any, from applicable taxing authorities.
Foreign Currency	Foreign Currency The functional currency of each of our foreign operations is generally the respective local currency. Balance sheet accounts are translated into U.S. dollars (our reporting currency) at the rates of exchange in effect at the balance sheet date, while the results of operations and cash flows are generally translated using average exchange rates for the periods presented. Individually material transactions, if any, are translated using the actual rate of exchange on the transaction date. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in our consolidated balance sheets. Foreign currency transaction gains or losses, including changes in the fair value (i.e., marked-to-market adjustments) of certain foreign exchange contracts we hold, are included in selling, general and administrative expenses in our consolidated statements of earnings when incurred and were not significant in any of the periods presented in the accompanying consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Sep. 30, 2017
Fair Value Measurements
Schedule of financial assets and liabilities by fair value hierarchy	Consistent with this hierarchy, we categorized our financial assets and liabilities as follows (in thousands): September 30, 2017 Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts $ $ — $ $ — Interest rate caps — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Long-term debt $ $ $ $ — Foreign exchange contracts — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2016 Total Level 1 Level 2 Level 3 Assets Foreign exchange contracts $ — $ — $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ — $ — $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Long-term debt $ $ $ $ — Foreign exchange contracts — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities $ $ $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accumulated Stockholders' Def31

Accumulated Stockholders' Deficit (Tables)	12 Months Ended
	Sep. 30, 2017
Accumulated Stockholders' Deficit
Schedule of changes in accumulated other comprehensive income (loss)	The change in accumulated other comprehensive income (loss) ("AOCL") was as follows (in thousands): Foreign Interest Total Balance at September 30, 2015 $ ) $ — $ ) Other comprehensive loss before reclassifications, net of tax ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current-period other comprehensive loss ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2016 $ ) $ — $ ) Other comprehensive income (loss) before reclassifications, net of tax ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current-period other comprehensive income (loss) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2017 $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Sep. 30, 2017
Earnings Per Share
Schedule of computations of basic and diluted earnings per share	The following table sets forth the computations of basic and diluted earnings per share (in thousands, except per share data): Year ended September 30, 2017 2016 2015 Net earnings $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total weighted average basic shares Dilutive securities: Stock options and stock awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total weighted average diluted shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings per share: Basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Share-Based Payments (Tables)

Share-Based Payments (Tables)	12 Months Ended
	Sep. 30, 2017
Share-Based Payments
Schedule of total compensation cost charged against income	The following table presents total compensation cost included in selling, general and administrative expenses for all share-based compensation arrangements, and the related income tax benefits recognized in our consolidated statement of earnings (in thousands): Year ended September 30, 2017 2016 2015 Share-based compensation expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax benefit related to share-based compensation expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of activity for performance based unit awards assuming 100% payout	Performance Unit Awards Number of Weighted Weighted Unvested at September 30, 2016 $ Granted Vested — — Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at September 30, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of activity for stock option awards	Number of Weighted Weighted Aggregate Outstanding at September 30, 2016 $ $ Granted Exercised ) Forfeited or expired ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at September 30, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at September 30, 2017 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of stock options by range of exercise prices	Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted Weighted Number of Weighted $5.24 - 19.99 $ $ $20.00 - 24.99 $25.00 - 31.58 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of weighted average assumptions for valuation of stock options using the Black-Scholes option pricing model	Year Ended 2017 2016 2015 Expected life (in years) Expected volatility for the Company's stock % % % Risk-free interest rate % % % Dividend yield % % %
Restricted Stock Awards
Share-Based Payments
Summary of the activity for restricted stock awards/units	Restricted Stock Awards Number of Weighted Weighted Unvested at September 30, 2016 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at September 30, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Restricted Stock Units
Share-Based Payments
Summary of the activity for restricted stock awards/units	Restricted Stock Units Number of Weighted Weighted Unvested at September 30, 2016 — $ — — Granted Vested ) Forfeited — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unvested at September 30, 2017 — $ — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Sep. 30, 2017
Property and Equipment
Schedule of property and equipment	Property and equipment, net consists of the following (in thousands): September 30, 2017 2016 Land $ $ Buildings and building improvements Leasehold improvements Furniture, fixtures and equipment ​ ​ ​ ​ ​ ​ ​ ​ Total property and equipment, gross Less accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total property and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets
Schedule of changes in carrying amounts of goodwill	The changes in the carrying amounts of goodwill during the fiscal years 2017 and 2016 are as follows (in thousands): Sally Beauty Beauty Systems Total Balance at September 30, 2015 $ $ $ Acquisitions — Foreign currency translation ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2016 $ $ $ Foreign currency translation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at September 30, 2017 $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of carrying value for intangible assets by operating segment	The following table provides the carrying value for intangible assets with indefinite lives, excluding goodwill, and the gross carrying value and accumulated amortization for intangible assets subject to amortization by operating segment at September 30, 2017 and 2016 (in thousands): September 30, 2017 September 30, 2016 Sally Beauty Beauty Systems Total Sally Beauty Beauty Systems Total Intangible assets with indefinite lives: Trade names $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible assets subject to amortization: Gross carrying amount Accumulated amortization ) ) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net book value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets, excluding goodwill, net $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of estimated future amortization expense related to intangible assets subject to amortization	As of September 30, 2017, future amortization expense related to intangible assets subject to amortization is estimated as follows (in thousands): Fiscal Year: 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Sep. 30, 2017
Accrued Liabilities
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): September 30, 2017 2016 Compensation and benefits $ $ Deferred revenue Interest payable Rental obligations Loss contingency obligation Insurance reserves Property and other taxes Operating accruals and other ​ ​ ​ ​ ​ ​ ​ ​ Total accrued liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Sep. 30, 2017
Commitments and Contingencies
Schedule of future minimum payments under non-cancelable operating leases, net of sublease income	At September 30, 2017, future minimum payments under non-cancelable operating leases, net of sublease income, are as follows (in thousands): Fiscal Year: 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Short-term Borrowings and Lon38

Short-term Borrowings and Long-term Debt (Tables)	12 Months Ended
	Sep. 30, 2017
Short-term Borrowings and Long-term Debt
Summary of long-term debt	Details of long-term debt (which is reported at amortized cost) are as follows (dollars in thousands): September 30, 2017 2016 Interest Rates ABL facility $ $ — (i) Prime plus (0.25% to 0.50%) or; (ii) LIBOR plus (1.25% to 1.50%) Term loan B: Variable-rate tranche — LIBOR plus 2.50% Fixed-rate tranche — 4.500% Senior notes due Jun. 2022 — 5.750% Senior notes due Nov. 2023 5.500% Senior notes due Dec. 2025 5.625% ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ Plus: capital lease obligations Less: unamortized debt issuance costs, discount and premium, net ​ ​ ​ ​ ​ ​ ​ ​ ​ Total debt $ $ Less: current maturities ​ ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of maturities of long-term debt	Maturities of our long-term debt, excluding capital leases, are as follows at September 30, 2017 (in thousands): Twelve months ending September 30: 2018 $ 2019 2020 2021 2022 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Derivative Instruments and He39

Derivative Instruments and Hedging Activities (Tables)	12 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities
Schedule of fair value of derivative financial instruments and their classification on consolidated balance sheets	The table below presents the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets (in thousands): Asset Derivatives Liability Derivatives September 30, September 30, Classification 2017 2016 Classification 2017 2016 Derivatives designated as hedging instruments: Interest Rate Caps Other current assets $ $ — N/A $ — $ — Derivatives not designated as hedging instruments: Foreign Exchange Contracts Other current assets — Accrued liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ — $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of derivative financial instruments on our consolidated statements of earnings and consolidated statements of comprehensive income	The table below presents the effect of our derivative financial instruments on our consolidated statements of earnings and consolidated statements of comprehensive income, as appropriate, for the fiscal years ended September 30, 2017, 2016 and 2015 (in thousands): Amount of Gain or Amount of Gain or (Loss) Reclassified Fiscal Year Ended Fiscal Year Ended Derivatives Designated as 2017 2016 2015 Classification 2017 2016 2015 Interest Rate Caps $ ) $ — $ — Interest Expense $ — $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount of Gain or (Loss) Fiscal Year Ended Classification of Gain or (Loss) Derivatives Not Designated as 2017 2016 2015 Foreign Exchange Contracts Selling, general and administrative expenses $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2017
Income Taxes
Schedule of provision for income taxes	The provision for income taxes for the fiscal years 2017, 2016 and 2015 consists of the following (in thousands): Fiscal Year Ended 2017 2016 2015 Current: Federal $ $ $ Foreign State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current portion ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal Foreign ) ) ) State ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred portion ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of the difference between U.S. statutory federal income tax rate and the effective income tax rate	Fiscal Year Ended 2017 2016 2015 Statutory tax rate % % % State income taxes, net of federal tax benefit Effect of foreign operations ) ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of the tax effects of temporary differences that give rise to the Company's deferred tax assets and liabilities	The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands): At September 30, 2017 2016 Deferred tax assets attributable to: Share-based compensation expense $ $ Accrued liabilities Inventory adjustments Foreign loss carryforwards Unrecognized tax benefits Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets, net ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities attributable to: Depreciation and amortization ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liability $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of changes in the amount of unrecognized tax benefits	The changes in the amount of unrecognized tax benefits are as follows (in thousands): Fiscal Year 2017 2016 Balance at beginning of the fiscal year $ $ Increases related to prior year tax positions Decreases related to prior year tax positions — ) Increases related to current year tax positions Settlements — ) Lapse of statute ) ) ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of fiscal year $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Business Segments and Geograp41

Business Segments and Geographic Area Information (Tables)	12 Months Ended
	Sep. 30, 2017
Business Segments and Geographic Area Information
Schedule of segment data	Segment data for the fiscal years 2017, 2016 and 2015 are as follows (in thousands): 2017 2016 2015 Net sales: SBS $ $ $ BSG Total $ $ $ Earnings before provision for income taxes: Segment operating earnings: SBS(a) $ $ $ BSG Segment operating earnings Unallocated expenses(b) ) ) ) Restructuring charges ) — — Consolidated operating earnings Interest expense(c) ) ) ) Earnings before provision for income taxes $ $ $ Depreciation and amortization: SBS $ $ $ BSG Corporate Total $ $ $ Payments for property and equipment: SBS $ $ $ BSG Corporate Total $ $ $ Total assets (as of September 30): SBS $ $ $ BSG Sub-total Corporate Total $ $ $ (a) For the fiscal year 2015, SBS's operating earnings reflects $5.3 million in expenses related to a restructuring of its operations in Germany. (b) Unallocated expenses consist of corporate and shared costs and are included in selling, general and administrative expenses in our consolidated statements of earnings. For the fiscal years 2016 and 2015, unallocated expenses reflect $14.6 million and $5.6 million (net of related insurance recovery of $0.6 million in 2015), respectively, related to the data security incidents. (c) For the fiscal years 2017 and 2016, interest expense includes a loss on extinguishment of debt of $28.0 million and $33.3 million, respectively, in connection with the Company's redemption of certain senior notes.
Schedule of geographic area information	Certain geographic data is as follows (in thousands): 2017 2016 2015 Net sales (for the fiscal year indicated): United States $ $ $ Other countries ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-lived assets (as of September 30): United States $ $ $ United Kingdom Other countries ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Parent, Issuers, Guarantor an42

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements (Tables)	12 Months Ended
	Sep. 30, 2017
Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet Parent Sally Guarantor Non- Consolidating Sally Beauty Assets Cash and cash equivalents $ — $ $ $ $ — $ Trade and other accounts receivable, less allowance for doubtful accounts — — Due from affiliates — — — ) — Inventory — — — Other current assets — Deferred income tax assets — — Property and equipment, net — — Investment in subsidiaries — ) — Goodwill and other intangible assets, net — — — Other assets ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' (Deficit) Equity Accounts payable $ $ $ $ $ — $ Due to affiliates — ) — Accrued liabilities — Income taxes payable — — — Long-term debt — — Other liabilities — — — Deferred income tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) Total stockholders' (deficit) equity ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' (deficit) equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Balance Sheet Parent Sally Guarantor Non- Consolidating Sally Beauty Assets Cash and cash equivalents $ — $ $ $ $ — $ Trade and other accounts receivable, less allowance for doubtful accounts — — Due from affiliates — — — ) — Inventory — — — Other current assets — Deferred income tax assets — — Property and equipment, net — — Investment in subsidiaries — ) — Goodwill and other intangible assets, net — — — Other assets ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders' (Deficit) Equity Accounts payable $ $ $ $ $ — $ Due to affiliates — ) — Accrued liabilities — Income taxes payable — — — Long-term debt — — Other liabilities — — — Deferred income tax liabilities — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities ) Total stockholders' (deficit) equity ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' (deficit) equity $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income	Condensed Consolidating Statement of Earnings and Comprehensive Income Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net sales $ — $ — $ $ $ — $ Related party sales — — — ) — Cost of products sold — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit — — — Selling, general and administrative expenses — Depreciation and amortization — — Restructuring charges — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating earnings (loss) ) ) — Interest expense — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) before provision for income taxes ) ) — Provision (benefit) for income taxes ) ) — Equity in earnings of subsidiaries, net of tax — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss), net of tax — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total comprehensive income $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Earnings and Comprehensive Income Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net sales $ — $ — $ $ $ — $ Related party sales — — — ) — Cost of products sold — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit — — — Selling, general and administrative expenses — Depreciation and amortization — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating earnings (loss) ) ) — Interest expense (income) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) before provision for income taxes ) ) — Provision (benefit) for income taxes ) ) — Equity in earnings of subsidiaries, net of tax — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss), net of tax — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total comprehensive income $ $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Earnings and Comprehensive Income Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net sales $ — $ — $ $ $ — $ Related party sales — — — ) — Cost of products sold — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit — — — Selling, general and administrative expenses — Depreciation and amortization — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating earnings (loss) ) ) — Interest expense — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) before provision for income taxes ) ) — Provision (benefit) for income taxes ) ) — Equity in earnings of subsidiaries, net of tax — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss), net of tax — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total comprehensive income (loss) $ $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net cash provided by operating activities $ $ ) $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities: Payments for property and equipment, net — — ) ) — ) Due from affiliates — — ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by investing activities — — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — — — — Repayments of long-term debt — ) ) ) — ) Debt issuance costs — ) — — — ) Repurchases of common stock ) — — — — ) Proceeds from exercises of stock options — — — — Due to affiliates ) — ) — Excess tax shortfall from share-based compensation ) — — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of foreign exchange rate changes on cash and cash equivalents — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents — ) ) — ) Cash and cash equivalents, beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ — $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net cash provided by operating activities $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities: Payments for property and equipment, net ) — ) ) — ) Acquisitions, net of cash acquired — — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by investing activities ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — — — — Repayments of long-term debt — ) ) ) — ) Debt issuance costs — ) — — — ) Repurchases of common stock ) — — — — ) Proceeds from exercises of stock options — — — — Excess tax benefit from share-based compensation — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by financing activities ) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of foreign exchange rate changes on cash and cash equivalents — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents — ) ) — ) Cash and cash equivalents, beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ — $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statement of Cash Flows Parent Sally Holdings Guarantor Non- Consolidating Sally Beauty Net cash provided by operating activities $ $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Investing Activities: Payments for property and equipment, net ) — ) ) — ) Acquisitions, net of cash acquired — — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by investing activities ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — — — Repayments of long-term debt — — ) ) — ) Repurchases of common stock ) — — — — ) Proceeds from exercises of stock options — — — — Excess tax benefit from share-based compensation — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash used by financing activities ) — ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effect of foreign exchange rate changes on cash and cash equivalents — — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents — ) — Cash and cash equivalents, beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents, end of period $ — $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

2017 Restructuring Plan (Tables

2017 Restructuring Plan (Tables)	12 Months Ended
	Sep. 30, 2017
2017 Restructuring Plan
Schedule of restructuring plan	The liability related to the 2017 Restructuring Plan, which is included in accrued liabilities in our consolidated balance sheet, is as follows at September 30, 2017 (in thousands): Restructuring Activity Liability at Expenses Expenses Paid Adjustments Liability at Workforce reductions $ — $ $ $ — $ Facility closures — — Other — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Quarterly Financial Data (Una44

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Sep. 30, 2017
Quarterly Financial Data (Unaudited)
Schedule of selected unaudited quarterly consolidated statement of earnings data	Certain unaudited quarterly consolidated statement of earnings information for the fiscal years ended September 30, 2017 and 2016 is summarized below (in thousands, except per share data): Fiscal Year 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2017: Net sales $ $ $ $ Gross profit $ $ $ $ Net earnings $ $ $ $ Earnings per share(a) Basic $ $ $ $ Diluted $ $ $ $ 2016: Net sales $ $ $ $ Gross profit $ $ $ $ Net earnings $ $ $ $ Earnings per share(a) Basic $ $ $ $ Diluted $ $ $ $ (a) The sum of the quarterly earnings per share may not equal the full year amount due to rounding of the calculated amounts.

Significant Accounting Polici45

Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash and Cash Equivalents
Minimum period in which customer credit and debit card transactions are settled	1 day
Maximum period in which customer credit and debit card transactions are settled	3 days
Proceeds due from customers of credit and debit card and third-party online payment systems transactions	$ 20.5	$ 15.1
Trade Accounts Receivable and Accounts Receivable, Other
Allowance for Doubtful Accounts	$ 1	$ 1.4

Significant Accounting Polici46

Significant Accounting Policies - Valuation of Long Lived Assets and Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets with Indefinite Lives
Impairment losses in connection with the goodwill	$ 0	$ 0	$ 0
Impairment of intangible assets with indefinite lives	$ 0	$ 0	$ 0

Significant Accounting Polici47

Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Advertising Costs
Advertising costs	$ 82	$ 93	$ 95.3

Significant Accounting Polici48

Significant Accounting Policies (Share based compensation and Depreciation) (Details) shares in Millions	12 Months Ended
	Sep. 30, 2017shares
Share-Based Payments
Common stock approved for issuance under share-based compensation plan (in shares)	29.8
Minimum
Depreciation and amortization:
Intangible assets amortization period	2 years
Minimum | Buildings and building improvements
Depreciation and amortization:
Property, Plant and Equipment, Useful Life	5 years
Minimum | Furniture, fixtures and equipment
Depreciation and amortization:
Property, Plant and Equipment, Useful Life	2 years
Minimum | Stock Option Awards
Share-Based Payments
Vesting period	3 years
Minimum | Restricted Stock Awards
Share-Based Payments
Vesting period	3 years
Maximum
Share-Based Payments
Term of stock options	10 years
Depreciation and amortization:
Intangible assets amortization period	13 years
Maximum | Buildings and building improvements
Depreciation and amortization:
Property, Plant and Equipment, Useful Life	40 years
Maximum | Furniture, fixtures and equipment
Depreciation and amortization:
Property, Plant and Equipment, Useful Life	10 years
Maximum | Stock Option Awards
Share-Based Payments
Vesting period	4 years
Maximum | Restricted Stock Awards
Share-Based Payments
Vesting period	5 years
Maximum | Restricted Stock Units
Share-Based Payments
Vesting period	1 year
Maximum | Performance Unit Awards
Share-Based Payments
Vesting period	3 years

Recent Accounting Pronounceme49

Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Recent Accounting Pronouncements
Decrease in current assets	$ 1,170,503	$ 1,172,827
Decrease in current liabilities	574,565	$ 488,665
ASU 2015-17
Recent Accounting Pronouncements
Decrease in current assets	(28,400)
Decrease in current liabilities	(2,000)
Increase in Non-current assets	4,300
Decrease in Non-current liabilities	(22,100)
ASU 16-02
Recent Accounting Pronouncements
Estimated amount of Right of use asset	600,000
Lease liability	$ 600,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Liabilities
Unamortized debt issuance costs	$ 23,545	$ 18,113
Fair value measurement on recurring basis | Total
Assets
Total assets	5,957
Liabilities
Long-term debt (b)	1,919,930	1,899,749
Total liabilities	1,920,137	1,900,021
Foreign exchange contracts | Fair value measurement on recurring basis | Total
Assets
Foreign exchange contracts (a)	779
Liabilities
Foreign exchange contracts (a)	207	272
Interest rate caps | Fair value measurement on recurring basis | Total
Assets
Interest rate caps	5,178
Level 1 | Fair value measurement on recurring basis
Liabilities
Long-term debt (b)	973,750	1,897,625
Total liabilities	973,750	1,897,625
Level 2 | Fair value measurement on recurring basis
Assets
Total assets	5,957
Liabilities
Long-term debt (b)	946,180	2,124
Total liabilities	946,387	2,396
Level 2 | Foreign exchange contracts | Fair value measurement on recurring basis
Assets
Foreign exchange contracts (a)	779
Liabilities
Foreign exchange contracts (a)	207	272
Level 2 | Interest rate caps | Fair value measurement on recurring basis
Assets
Interest rate caps	5,178
ABL facility
Liabilities
Long-term debt (b)	1,887,400	1,807,700
Unamortized debt issuance costs	$ 19,400	$ 23,700

Accumulated Stockholders' Def51

Accumulated Stockholders' Deficit - Share Repurchase Program (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Share Repurchase Program
Cost of repurchase and retirement of common stock		$ 346,051	$ 207,312	$ 227,559
2014 Share Repurchase Program
Share Repurchase Program
Common stock shares repurchased and retired (in shares)		16,100,000	7,800,000	8,100,000
Cost of repurchase and retirement of common stock		$ 346,100	$ 207,300	$ 227,600
2017 Share Repurchase program
Share Repurchase Program
Amount of shares authorized to be repurchased	$ 1,000,000
Term of share repurchase program	4 years
Share repurchase program		0

Accumulated stock holders' Defi

Accumulated stock holders' Deficit - Change in AOCL (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Accumulated Stockholders' Deficit
Accumulated other comprehensive income (loss), Beginning Balance	$ (100,051)	$ (77,705)
Other comprehensive income (loss) before reclassifications, net of tax	18,215	(22,346)
Net current-period other comprehensive income (loss)	18,215	(22,346)
Accumulated other comprehensive income (loss), Ending Balance	(81,836)	(100,051)
Interest rate caps
Accumulated Stockholders' Deficit
Other comprehensive income (loss) before reclassifications, net of tax	(1,084)
Net current-period other comprehensive income (loss)	(1,084)
Accumulated other comprehensive income (loss), Ending Balance	(1,084)
Foreign currency translation adjustments
Accumulated Stockholders' Deficit
Accumulated other comprehensive income (loss), Beginning Balance	(100,051)	(77,705)
Other comprehensive income (loss) before reclassifications, net of tax	19,299	(22,346)
Net current-period other comprehensive income (loss)	19,299	(22,346)
Accumulated other comprehensive income (loss), Ending Balance	$ (80,752)	$ (100,051)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share Reconciliation:
Net earnings	$ 35,719	$ 66,539	$ 56,992	$ 55,826	$ 52,621	$ 67,919	$ 60,159	$ 42,243	$ 215,076	$ 222,942	$ 235,087
Total weighted average basic shares									137,533,000	147,179,000	156,353,000
Dilutive securities:
Stock option and stock awards (in shares)									643,000	1,624,000	1,873,000
Total weighted average diluted shares									138,176,000	148,803,000	158,226,000
Earnings per share:
Basic (in dollars per share)	$ 0.27	$ 0.49	$ 0.41	$ 0.39	$ 0.36	$ 0.47	$ 0.41	$ 0.28	$ 1.56	$ 1.51	$ 1.50
Diluted (in dollars per share)	$ 0.27	$ 0.49	$ 0.40	$ 0.39	$ 0.36	$ 0.46	$ 0.41	$ 0.28	$ 1.56	$ 1.50	$ 1.49
Common stock potentially outstanding but not included in the computation of diluted earnings per share
Options to purchase shares not included in the computation of diluted earnings per share since the options were anti-dilutive (in shares)									4,531,081	1,061,068	1,090,459

Share-Based Payments (Details)

Share-Based Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Share-Based Payments
Share-based compensation expense (in dollars)	$ 10,507	$ 12,580	$ 16,778
Income tax benefit related to share-based compensation expense	$ 3,918	$ 4,816	$ 6,309

Share-Based Payments - Performa

Share-Based Payments - Performance-Based Awards (Details) - Performance Unit Awards - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-Based Payments
Payout percentage (in percentage)		100.00%
Performance Unit Awards (in shares)
Unvested at the beginning of the period (in shares)		132,000
Granted (in shares)		146,000	152,000
Forfeited (in shares)		(81,000)
Unvested at the end of the period (in shares)	132,000	197,000	132,000
Performance Unit Awards (in dollars per share)
Unvested at the beginning of the period (in dollars per share)		$ 23.45
Granted (in dollars per share)		25.53	$ 23.45
Forfeited (in dollars per share)		24.64
Unvested at the end of the period (in dollars per share)	$ 23.45	$ 24.50	$ 23.45
Performance Unit Awards (in years)
Weighted Average Remaining Vesting Term (in Years)	2 years	1 year 6 months
Performance period (in years)		3 years
Compensation expense Potentially recognized		$ 9.6
Cumulative compensation expense recognized prior to period		$ 1.7
Minimum
Share-Based Payments
Percentage of target shares		0.00%	0.00%
Maximum
Share-Based Payments
Percentage of target shares		200.00%	200.00%

Share-Based Payments - Service-

Share-Based Payments - Service-Based Awards and Stock Option Awards (Details) - Stock Option Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Stock Options, Number of Outstanding Options
Outstanding at the beginning of the period (in shares)	5,584
Granted (in shares)	1,457	1,500	1,200
Exercised (in shares)	(964)
Forfeited or expired (in shares)	(866)
Outstanding at the end of the period (in shares)	5,211	5,584
Exercisable at the end of the period (in shares)	3,795
Stock Options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 22.95
Granted (in dollars per share)	25.60
Exercised (in dollars per share)	18.19
Forfeited or expired (in dollars per share)	25.68
Outstanding at the end of the period (in dollars per share)	24.12	$ 22.95
Exercisable at the end of the period (in dollars per share)	$ 23.54
Stock Options, Weighted Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	5 years 7 months 6 days	6 years 1 month 6 days
Exercisable at the end of the period (in years)	4 years 9 months 18 days
Stock Options, Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 19,615
Outstanding at the end of the period (in dollars)	3,867	$ 19,615
Exercisable at the end of the period (in dollars)	$ 3,867

Share-Based Payments - Summary

Share-Based Payments - Summary of stock options by range of exercise prices (Details) shares in Thousands	12 Months Ended
	Sep. 30, 2017$ / sharesshares
Options Outstanding
Range of Exercise Prices, Number of Options Outstanding (in shares) | shares	5,211
Range of Exercise Prices, Weighted Average Remaining Contractual Term	5 years 7 months 6 days
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 24.12
Options Exercisable
Range of Exercise Prices, Number of Options Exercisable (in shares) | shares	3,795
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 23.54
Range of Exercise Prices $5.24 - 19.99
Information about stock options under option plans
Lower Range of Exercise Prices (in dollars per share)	5.24
Upper Range of Exercise Prices (in dollars per share)	$ 19.99
Options Outstanding
Range of Exercise Prices, Number of Options Outstanding (in shares) | shares	680
Range of Exercise Prices, Weighted Average Remaining Contractual Term	2 years 6 months
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 13.89
Options Exercisable
Range of Exercise Prices, Number of Options Exercisable (in shares) | shares	680
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 13.89
Range of Exercise Prices $20.00 - 24.99
Information about stock options under option plans
Lower Range of Exercise Prices (in dollars per share)	20
Upper Range of Exercise Prices (in dollars per share)	$ 24.99
Options Outstanding
Range of Exercise Prices, Number of Options Outstanding (in shares) | shares	1,579
Range of Exercise Prices, Weighted Average Remaining Contractual Term	5 years 10 months 24 days
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 23.46
Options Exercisable
Range of Exercise Prices, Number of Options Exercisable (in shares) | shares	1,234
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 23.47
Range of Exercise Prices $25.00 - 31.58
Information about stock options under option plans
Lower Range of Exercise Prices (in dollars per share)	25
Upper Range of Exercise Prices (in dollars per share)	$ 31.58
Options Outstanding
Range of Exercise Prices, Number of Options Outstanding (in shares) | shares	2,952
Range of Exercise Prices, Weighted Average Remaining Contractual Term	6 years 1 month 6 days
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 26.82
Options Exercisable
Range of Exercise Prices, Number of Options Exercisable (in shares) | shares	1,881
Range of Exercise Prices, Weighted Average Exercise Price (in dollars per share)	$ 27.08

Share-Based Payments - Schedule

Share-Based Payments - Schedule of weighted average assumptions for valuation of stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Stock option disclosures
Proceeds from exercises of stock options	$ 17,339	$ 16,220	$ 54,351
Stock Option Awards
Weighted average assumptions relating to the valuation of stock options
Expected life (in years)	5 years	5 years	5 years
Expected volatility for the Company's stock (as a percent)	25.30%	27.20%	30.90%
Risk-free interest rate (as a percent)	1.30%	1.50%	1.60%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Stock option disclosures
Weighted average fair value of the stock options issued (in dollars per share)	$ 6.37	$ 6.32	$ 8.78
Aggregate fair value of stock options	$ 13,100	$ 16,500	$ 10,000
Aggregate intrinsic value of options exercised	7,700	11,000	86,700
Proceeds from exercises of stock options	17,300	16,200	54,400
Tax benefit realized for the tax deductions of stock option exercises	2,900	$ 3,700	$ 31,700
Total unrecognized compensation expenses related to unvested awards	$ 7,000
Weighted average period for recognition of unvested awards	1 year 7 months 6 days

Share-Based Payments - Restrict

Share-Based Payments - Restricted Stock Awards (Details) - Restricted Stock Awards - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Restricted stock (in shares)
Unvested at the beginning of the period (in shares)	271,000
Granted (in shares)	35,000	40,000	222,000
Vested (in shares)	(151,000)
Forfeited (in shares)	(30,000)
Unvested at the end of the period (in shares)	125,000	271,000
Restricted Stock (in dollars per share)
Unvested at the beginning of the period (in dollars per share)		$ 26.80
Granted (in dollars per share)	$ 23.79	$ 25.35	$ 29.23
Vested (in dollars per share)	26.59
Forfeited (in dollars per share)	27.64
Unvested at the end of the period (in dollars per share)	$ 26		$ 26.80
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	1 year 3 months 18 days		1 year 10 months 24 days
Total unrecognized compensation expenses related to unvested awards	$ 1.5
Weighted average period for recognition of unvested awards	1 year 3 months 18 days
Minimum
Stock Awards
Vesting period	3 years
Maximum
Stock Awards
Vesting period	5 years

Share-Based Payments - Restri60

Share-Based Payments - Restricted Stock Units (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Stock Awards
Restricted stock units, retention period	6 months
Restricted stock (in shares)
Granted (in shares)	42,000	28,000	20,000
Vested (in shares)	(42,000)
Restricted Stock (in dollars per share)
Granted (in dollars per share)	$ 25.09	$ 24.10	$ 29.20
Vested (in dollars per share)	$ 25.09
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	0 years	0 years
Total unrecognized compensation expenses related to unvested awards	$ 0

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Property and Equipment, Net
Total property and equipment, gross	$ 859,778	$ 787,423
Less accumulated depreciation and amortization	(546,061)	(467,865)
Total property and equipment, net	313,717	319,558	$ 270,847
Depreciation expense	99,200	86,300	$ 75,100
Land
Property and Equipment, Net
Total property and equipment, gross	11,196	11,113
Buildings and building improvements
Property and Equipment, Net
Total property and equipment, gross	64,191	62,087
Leasehold improvements
Property and Equipment, Net
Total property and equipment, gross	259,618	238,173
Furniture, fixtures and equipment
Property and Equipment, Net
Total property and equipment, gross	$ 524,773	$ 476,050

Goodwill and Intangible Asset62

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Change in the carrying amounts of goodwill
Balance at the beginning of the period	$ 532,714	$ 524,369
Acquisitions		12,797
Foreign currency translation	5,077	(4,452)
Balance at the end of the period	537,791	532,714	$ 524,369
Impairment losses in connection with the goodwill	0	0	0
Impairment losses in connection with the intangible assets	0	0	0
Sally Beauty Supply
Change in the carrying amounts of goodwill
Balance at the beginning of the period	79,542	83,216
Foreign currency translation	3,128	(3,674)
Balance at the end of the period	82,670	79,542	83,216
Beauty Systems Group
Change in the carrying amounts of goodwill
Balance at the beginning of the period	453,172	441,153
Acquisitions		12,797
Foreign currency translation	1,949	(778)
Balance at the end of the period	$ 455,121	$ 453,172	$ 441,153

Goodwill and Intangible Asset63

Goodwill and Intangible Assets - Intangible assets with indefinite lives (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)item	Sep. 30, 2015USD ($)
Indefinite and Finite Lived Intangible Assets by Major Class
Trade names	$ 44,735	$ 43,926
Intangible assets subject to amortization:
Gross carrying amount	157,120	159,750
Accumulated amortization	(121,550)	(110,713)
Net book value	35,570	49,037
Total intangible assets, excluding goodwill, net	80,305	92,963
Amortization expense	13,100	13,300	$ 14,300
Sally Beauty Supply
Indefinite and Finite Lived Intangible Assets by Major Class
Trade names	18,455	17,732
Intangible assets subject to amortization:
Gross carrying amount	28,544	27,271
Accumulated amortization	(20,190)	(17,127)
Net book value	8,354	10,144
Total intangible assets, excluding goodwill, net	26,809	27,876
Beauty Systems Group
Indefinite and Finite Lived Intangible Assets by Major Class
Trade names	26,280	26,194
Intangible assets subject to amortization:
Gross carrying amount	128,576	132,479
Accumulated amortization	(101,360)	(93,586)
Net book value	27,216	38,893
Total intangible assets, excluding goodwill, net	$ 53,496	65,087
Intangible assets subject to amortization recorded in connection with acquisitions		$ 10,100
Number of individually immaterial acquisitions | item		2

Goodwill and Intangible Asset64

Goodwill and Intangible Assets - Estimated future amortization expense related to intangible assets subject to amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Estimated future amortization expense related to intangible assets subject to amortization:
2,018	$ 10,881
2,019	10,228
2,020	7,420
2,021	3,765
2,022	1,247
Thereafter	2,029
Net book value	$ 35,570	$ 49,037
Weighted average remaining amortization period (in years)	4 years

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Accrued Liabilities
Compensation and benefits	$ 59,838	$ 75,675
Deferred revenue	19,623	35,624
Interest payable	20,588	23,220
Rental obligations	6,359	15,644
Loss contingency obligation	15,283	12,942
Insurance reserves	4,787	4,870
Property and other taxes	5,322	6,472
Operating accruals and other	36,698	40,137
Total accrued liabilities	$ 168,498	$ 214,584

Commitments and Contingencies66

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Fiscal Year:
2,018	$ 183,638
2,019	152,054
2,020	116,324
2,021	85,065
2,022	52,063
Thereafter	82,212
Total operating lease, future minimum payments due	671,356
Total rental expense for operating leases	$ 242,000	$ 231,000	$ 223,200

Commitments and Contingencies -

Commitments and Contingencies - Other Contingencies (Details) - Selling, general and administrative expenses - Data security incidents - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Commitments and contingencies
Data security incident expenses	$ 14.6	$ 5.6
Insurance recovery		$ 0.6

Short-term Borrowings and Lon68

Short-term Borrowings and Long-term Debt - Details of Long-term Debt Table (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Debt Instruments
Total	$ 1,890,000	$ 1,800,000
Fixed-rate tranche
Debt Instruments
Total	$ 300,000
Interest rate (as a percent)	4.50%
Variable-rate tranche
Debt Instruments
Total	$ 550,000
ABL facility
Debt Instruments
Total	$ 90,000
ABL facility | Prime | Minimum
Debt Instruments
Percentage points added to the reference rate	0.25%
ABL facility | Prime | Maximum
Debt Instruments
Percentage points added to the reference rate	0.50%
ABL facility | LIBOR | Variable-rate tranche
Debt Instruments
Percentage points added to the reference rate	2.50%
ABL facility | LIBOR | Minimum
Debt Instruments
Percentage points added to the reference rate	1.25%
ABL facility | LIBOR | Maximum
Debt Instruments
Percentage points added to the reference rate	1.50%
Senior notes due Jun. 2022
Debt Instruments
Total		$ 850,000
Interest rate (as a percent)		5.75%
Senior notes due Nov. 2023
Debt Instruments
Total	$ 200,000	$ 200,000
Interest rate (as a percent)	5.50%	5.50%
Senior notes due Dec. 2025
Debt Instruments
Total	$ 750,000	$ 750,000
Interest rate (as a percent)	5.625%	5.625%

Short-term Borrowings and Lon69

Short-term Borrowings and Long-term Debt - Details of Long-term Debt Table - Total debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Short-term Borrowings and Long-term Debt
Total	$ 1,890,000	$ 1,800,000
Plus: capital lease obligations	1,480	2,123
Less: unamortized debt issuance costs, discount and premium, net	23,545	18,113
Total debt	$ 1,867,935	$ 1,784,010

Short-term Borrowings and Lon70

Short-term Borrowings and Long-term Debt - Details of Long-term Debt Table - Total long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Short-term Borrowings and Long-term Debt
Total debt	$ 1,867,935	$ 1,784,010
Less: current maturities	96,082	716
Total long-term debt	$ 1,771,853	$ 1,783,294

Short-term Borrowings and Lon71

Short-term Borrowings and Long-term Debt - Maturities of the Company's long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Fiscal Year
2,018	$ 95,500
2,019	5,500
2,020	5,500
2,021	5,500
2,022	5,500
Thereafter	1,772,500
Total	$ 1,890,000	$ 1,800,000

Short-term Borrowings and Lon72

Short-term Borrowings and Long-term Debt - ABL Facility and Canadian sub-facility (Details) - USD ($) $ in Thousands	Jul. 06, 2017	Jul. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2014	Sep. 30, 2012
Debt Instruments
Capitalized financing costs			$ 8,376	$ 12,748
Aggregate principal amount of debt retired						$ 1,391,900
ABL facility
Debt Instruments
Long-term Debt					$ 88,500
ABL facility | Sally Holdings, LLC
Debt Instruments
Capitalized financing costs	$ 1,500
Revolving credit facility	$ 500,000		$ 389,600
Debt instrument term	5 years
Canadian sub-facility | Sally Holdings, LLC
Debt Instruments
Revolving credit facility	$ 25,000
Senior notes due Nov. 2019
Debt Instruments
Redemption premium of debt				25,800
Unamortized deferred financing costs				7,500
Redemption premium (as a percent)		102.875%
Total redemption cost				$ 775,800
Senior notes due Jun. 2022
Debt Instruments
Debt instrument, face amount						850,000
Interest rate (as a percent)				5.75%
Senior notes due Jun. 2022 | Sally Holdings, LLC
Debt Instruments
Redemption premium of debt	24,400
Unamortized deferred financing costs	$ 8,000
Senior notes due Nov. 2023
Debt Instruments
Debt instrument, face amount					200,000
Interest rate (as a percent)			5.50%	5.50%
Proceeds used to repay borrowings					$ 196,300
Senior notes due Dec. 2025
Debt Instruments
Debt instrument, face amount				$ 750,000
Capitalized financing costs				$ 12,700
Interest rate (as a percent)			5.625%	5.625%
Proceeds used to repay borrowings				$ 737,300
Senior notes due 2022 issued for $150 million
Debt Instruments
Debt instrument, face amount						$ 150,000

Short-term Borrowings and Lon73

Short-term Borrowings and Long-Term Debt - Term loan (Details) $ in Thousands	Jul. 06, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2012USD ($)
Debt Instruments
Loss on extinguishment of debt		$ (27,981)	$ (33,296)
Capitalized financing costs		8,376	12,748
Unamortized debt issuance costs		23,545	18,113
Letter of credit		$ 20,400	21,600
Fixed-rate tranche
Debt Instruments
Debt instrument, stated percentage		4.50%
ABL facility
Debt Instruments
Unamortized debt issuance costs		$ 19,400	23,700
ABL facility | Other assets
Debt Instruments
Unamortized deferred financing costs		$ 2,000	$ 1,600
ABL facility | Variable-rate tranche | LIBOR
Debt Instruments
Debt instrument, variable percentage		2.50%
Senior notes due Jun. 2022
Debt Instruments
Debt instrument, face amount				$ 850,000
Debt instrument, stated percentage			5.75%
Senior notes due Dec. 2025
Debt Instruments
Debt instrument, face amount			$ 750,000
Capitalized financing costs			$ 12,700
Debt instrument, stated percentage		5.625%	5.625%
Maximum percentage of original principal amount that can be redeemed from specified proceeds		35.00%
Sally Holdings, LLC | Term Loan B
Debt Instruments
Debt instrument term	7 years
Debt instrument, face amount	$ 850,000
Proceeds from term loan B	845,800
Capitalized financing costs	6,900
Sally Holdings, LLC | Fixed-rate tranche
Debt Instruments
Debt instrument, face amount	$ 300,000
Debt instrument, stated percentage	4.50%
Sally Holdings, LLC | Variable-rate tranche
Debt Instruments
Debt instrument, face amount	$ 550,000
Debt instrument, annual rate on original amount	0.25
Sally Holdings, LLC | Variable-rate tranche | LIBOR
Debt Instruments
Debt instrument, variable percentage	2.50%
Sally Holdings, LLC | Variable-rate tranche | Alternate base rate
Debt Instruments
Debt instrument, variable percentage	1.50%
Sally Holdings, LLC | ABL facility
Debt Instruments
Debt instrument term	5 years
Revolving credit facility	$ 500,000	$ 389,600
Proceeds from revolving credit facility	33,500
Loss on extinguishment of debt	400
Capitalized financing costs	$ 1,500
Line of Credit Facility, Commitment Fee Percentage	0.20%
Sally Holdings, LLC | Canadian sub-facility
Debt Instruments
Revolving credit facility	$ 25,000
Sally Holdings, LLC | Senior notes due Jun. 2022
Debt Instruments
Loss on extinguishment of debt	27,600
Redemption premium of debt	24,400
Unamortized deferred financing costs	8,000
Unamortized premium	4,800
Sally Holdings, LLC | Senior notes due Jun. 2022 | Term Loan B
Debt Instruments
Debt instrument, face amount	$ 850,000
Sally Holdings, LLC | Senior notes | Term Loan B
Debt Instruments
Unamortized debt issuance costs		$ 19,400	$ 23,700

Derivative Instruments and He74

Derivative Instruments and Hedging Activities - (Details) $ in Millions	Sep. 30, 2017USD ($)instrument	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0
Foreign exchange contracts
Derivative Instruments
Notional Amount	$ 99.6
Variable-rate tranche | Interest rate caps | Sally Holdings, LLC
Derivative Instruments
Notional Amount		$ 550
Designated Cash Flow Hedges
Number of interest rate caps | derivative		2

Derivative Instruments and He75

Derivative Instruments and Hedging Activities - Non-designated Cash Flow Hedges (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Derivatives Not Designated as Hedging Instruments
Total derivatives not designated as hedging instruments, Asset	$ 5,957
Total derivatives not designated as hedging instruments, Liability	207	$ 272
Derivatives designated as hedging instruments | Other current assets
Derivatives Not Designated as Hedging Instruments
Interest rate Caps, Asset	5,178
Derivatives not designated as hedging instruments | Other current assets
Derivatives Not Designated as Hedging Instruments
Foreign Exchange Contracts, Asset	779
Derivatives not designated as hedging instruments | Accrued liabilities
Credit-risk-related Contingent Features
Foreign Exchange Contracts, Liability	$ 207	$ 272

Derivative Instruments and He76

Derivative Instruments and Hedging Activities - Derivatives Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Credit-risk-related Contingent Features
Probable loss on counterparty defaults	$ 0
Foreign exchange contracts
Credit-risk-related Contingent Features
Aggregate fair value of all foreign exchange contracts held in a liability position	200
Derivatives designated as hedging instruments | Interest rate caps
Derivatives Designated as Hedging Instruments
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion), net of tax	(1,084)
Derivatives not designated as hedging instruments | Foreign exchange contracts | Selling, general and administrative expenses
Derivative Instruments Not Designated as Hedging Instruments [Abstract]
Amount of Gain or (Loss) Recognized in Income on Derivatives, Foreign Exchange Contracts	$ (2,791)	$ (1,051)	$ 2,731

401(k) and Profit Sharing Plan

401(k) and Profit Sharing Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
401(k) and Profit Sharing Plan
Defined contribution plan, expense recognized	$ 7.1	$ 7.1	$ 6.8
Profit sharing plan, expense recognized		$ 2.6	$ 3.3

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Current:
Federal	$ 97,332	$ 87,088	$ 113,023
Foreign	10,394	8,795	9,531
State	8,700	13,816	13,686
Total current portion	116,426	109,699	136,240
Deferred:
Federal	14,559	20,915	7,963
Foreign	(2,314)	(932)	(1,461)
State	1,951	1,436	655
Total deferred portion	14,196	21,419	7,157
Total provision for income taxes	$ 130,622	$ 131,118	$ 143,397
Reconciliation between the U.S. statutory federal income tax rate and the effective income tax rate
Statutory tax rate (as a percent)	35.00%	35.00%	35.00%
State income taxes, net of federal tax benefit (as a percent)	2.20%	2.90%	2.70%
Effect of foreign operations (as a percent)	0.30%	(0.40%)	(0.10%)
Other, net (as a percent)	0.30%	(0.50%)	0.30%
Effective tax rate (as a percent)	37.80%	37.00%	37.90%

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Deferred tax assets attributable to:
Share-based compensation expense	$ 16,057	$ 18,425
Accrued liabilities	19,695	32,145
Inventory adjustments	6,602	4,492
Foreign loss carryforwards	41,267	36,419
Unrecognized tax benefits	571	532
Other	2,214	3,225
Total deferred tax assets	86,406	95,238
Valuation allowance	(42,379)	(36,571)
Total deferred tax assets, net	44,027	58,667
Deferred tax liabilities attributable to:
Depreciation and amortization	133,264	131,201
Total deferred tax liabilities	133,264	131,201
Net deferred tax liability	89,237	72,534
Domestic earnings before provision for income taxes	332,500	327,100	$ 362,100
Foreign earnings before provision for income taxes	13,200	27,000	$ 16,400
Accumulated undistributed earnings of the Company's foreign operations	286,800	263,000
Total operating loss carry-forward	135,600	117,900
Operating loss carry-forward, subject to valuation allowance	117,000	104,000
Amount of operating loss carry-forwards with an expiration date	19,200
Amount of operating loss carry-forwards without an expiration date	116,400
Total tax credit carryforwards	2,800	3,100
Expiring tax credit carryforwards	1,400
Non-expiring tax credit carryforwards	1,400
Tax credit carryforwards, subject to a valuation allowance	$ 1,200	$ 400

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the changes in the amount of unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Reconciliation of the changes in the amount of unrecognized tax benefits
Balance at beginning of the fiscal year	$ 1,295	$ 2,982
Increases related to prior year tax positions	182	447
Decreases related to prior year tax positions		(18)
Increases related to current year tax positions	254	275
Settlements		(2,261)
Lapse of statute	(264)	(130)
Balance at end of fiscal year	1,467	1,295
Total unrecognized tax benefits of accrued interest and penalties	$ 200	$ 200

Acquisitions (Details)

Acquisitions (Details) $ in Millions	12 Months Ended
	Sep. 30, 2017USD ($)store	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Peerless
Acquisitions
Number of beauty supply stores | store	15
Cost of acquisition	$ 23.9
Intangible assets subject to amortization	7.8
Goodwill expected to be deducted for tax purposes	$ 13.1
Not individually material acquisitions
Acquisitions
Cost of acquisition		$ 2.3	$ 7.1
Intangible assets subject to amortization		$ 2.3	2.2
Goodwill expected to be deducted for tax purposes			$ 2.8

Business Segments and Geograp82

Business Segments and Geographic Area Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Segments
Number of reportable segments | segment									2
Net sales:
Total net sales	$ 974,195	$ 998,043	$ 966,470	$ 999,609	$ 976,358	$ 998,161	$ 980,067	$ 998,032	$ 3,938,317	$ 3,952,618	$ 3,834,343
Segment operating earnings:
Segment operating earnings									478,597	498,297	495,326
Restructuring charges									(22,679)
Operating earnings									478,597	498,297	495,326
Interest expense (c)									(132,899)	(144,237)	(116,842)
Earnings before provision for income taxes									345,698	354,060	378,484
Depreciation and amortization:
Depreciation and amortization									112,323	99,657	89,391
Payments for property and equipment:
Payments for property and equipment									89,666	151,220	106,532
Total assets:
Assets	2,123,093				2,132,063				2,123,093	2,132,063	2,094,351
Long-lived assets:
Long-lived assets	313,717				319,558				313,717	319,558	270,847
Changes in foreign currency exchange rates
Loss on foreign currency exchange									30,000	(56,400)	87,300
Loss on extinguishment of debt
Net loss on extinguishment of debt									27,981	33,296
Capital expenditures exclude amounts incurred but not paid									8,367	3,757	11,568
Senior notes due Nov. 2019
Loss on extinguishment of debt
Net loss on extinguishment of debt									28,000	33,300
Operating segments
Segment operating earnings:
Segment operating earnings									640,098	664,266	643,544
Operating earnings									640,098	664,266	643,544
Total assets:
Assets	2,012,336				1,993,428				2,012,336	1,993,428	1,952,321
Corporate
Segment operating earnings:
Unallocated expenses (b)									(138,822)	(165,969)	(148,218)
Depreciation and amortization:
Depreciation and amortization									17,141	14,226	15,141
Payments for property and equipment:
Payments for property and equipment									18,153	31,607	23,794
Total assets:
Assets	110,757				138,635				110,757	138,635	142,030
Sally Beauty Supply
Net sales:
Total net sales									2,345,116	2,386,337	2,351,614
Segment operating earnings:
Restructuring charges									(13,700)
Depreciation and amortization:
Depreciation and amortization									63,427	55,833	45,905
Payments for property and equipment:
Payments for property and equipment									52,178	95,706	66,117
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings									385,407	411,824	414,664
Operating earnings									385,407	411,824	414,664
Total assets:
Assets	1,043,261				1,018,609				1,043,261	1,018,609	1,032,149
Beauty Systems Group
Net sales:
Total net sales									1,593,201	1,566,281	1,482,729
Segment operating earnings:
Restructuring charges									(6,600)
Depreciation and amortization:
Depreciation and amortization									31,755	29,598	28,345
Payments for property and equipment:
Payments for property and equipment									19,335	23,907	16,621
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings									254,691	252,442	228,880
Operating earnings									254,691	252,442	228,880
Total assets:
Assets	969,075				974,819				969,075	974,819	920,172
Germany | Restructuring charges | Sally Beauty Supply
Segment operating earnings:
Segment operating earnings											5,300
Operating earnings											5,300
United States
Net sales:
Total net sales									3,248,662	3,261,648	3,145,894
Long-lived assets:
Long-lived assets	230,698				240,803				230,698	240,803	196,320
United Kingdom
Long-lived assets:
Long-lived assets	32,771				29,764				32,771	29,764	31,455
Foreign
Net sales:
Total net sales									689,655	690,970	688,449
Other countries
Long-lived assets:
Long-lived assets	$ 50,248				$ 48,991				$ 50,248	48,991	43,072
Data security incidents | Selling, general and administrative expenses
Segment operating earnings:
Unallocated expenses (b)										$ (14,600)	(5,600)
Insurance recovery											$ 600

Parent, Issuers, Guarantor an83

Parent, Issuers, Guarantor and Non Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidating Balance Sheet
Percentage of guarantor subsidiaries owned by parent	100.00%
Assets
Cash and cash equivalents	$ 63,759	$ 86,622	$ 140,038	$ 106,575
Trade and other accounts receivable, less allowance for doubtful accounts	92,241	83,983
Inventory	930,855	907,337
Other current assets	55,223	54,861
Deferred income tax assets	28,425	40,024
Property and equipment, net	313,717	319,558	270,847
Goodwill and other intangible assets, net	618,096	625,677
Other assets	20,777	14,001
Total assets	2,123,093	2,132,063	2,094,351
Liabilities and Stockholders' (Deficit) Equity
Accounts payable	307,752	271,376
Accrued liabilities	168,498	214,584
Income taxes payable	2,233	1,989
Long-term debt	1,867,935	1,784,010
Other liabilities	20,140	21,614
Deferred income tax liabilities	120,151	114,656
Total liabilities	2,486,709	2,408,229
Total stockholders' (deficit) equity	(363,616)	(276,166)	(297,821)	(347,053)
Total liabilities and stockholders' deficit	2,123,093	2,132,063
Reportable Legal Entities | Sally Holdings LLC and Sally Capital Inc.
Assets
Cash and cash equivalents	10	28,372	46,003	27,000
Other current assets	813	30
Deferred income tax assets	1
Investment in subsidiaries	3,717,999	3,395,436
Other assets	8,115	2,158
Total assets	3,726,938	3,425,996
Liabilities and Stockholders' (Deficit) Equity
Accounts payable	4	1
Due to affiliates	727,856	736,373
Accrued liabilities	20,108	35,320
Income taxes payable	1,624	1,508
Long-term debt	1,866,455	1,781,887
Total liabilities	2,616,047	2,555,089
Total stockholders' (deficit) equity	1,110,891	870,907
Total liabilities and stockholders' deficit	3,726,938	3,425,996
Reportable Legal Entities | Parent
Assets
Trade and other accounts receivable, less allowance for doubtful accounts	200	16
Other current assets	11,763	14,816
Deferred income tax assets		50
Property and equipment, net	12	15
Investment in subsidiaries	1,110,891	870,907
Other assets	1,869	1,515
Total assets	1,124,735	887,319
Liabilities and Stockholders' (Deficit) Equity
Accounts payable	251	116
Due to affiliates	1,487,484	1,162,045
Accrued liabilities	616	1,324
Total liabilities	1,488,351	1,163,485
Total stockholders' (deficit) equity	(363,616)	(276,166)
Total liabilities and stockholders' deficit	1,124,735	887,319
Reportable Legal Entities | Guarantor Subsidiaries
Assets
Cash and cash equivalents	22,090	22,368	58,851	40,042
Trade and other accounts receivable, less allowance for doubtful accounts	59,992	55,989
Due from affiliates	2,289,371	1,966,505
Inventory	709,890	709,523
Other current assets	26,144	23,864
Deferred income tax assets	22,602	35,740
Property and equipment, net	230,069	239,791
Investment in subsidiaries	386,681	359,193
Goodwill and other intangible assets, net	468,118	479,682
Other assets	(9,451)	(8,090)
Total assets	4,205,506	3,884,565
Liabilities and Stockholders' (Deficit) Equity
Accounts payable	243,818	215,552
Accrued liabilities	111,888	145,661
Long-term debt	1	17
Other liabilities	16,008	17,852
Deferred income tax liabilities	115,792	110,047
Total liabilities	487,507	489,129
Total stockholders' (deficit) equity	3,717,999	3,395,436
Total liabilities and stockholders' deficit	4,205,506	3,884,565
Reportable Legal Entities | Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	41,659	35,882	$ 35,184	$ 39,533
Trade and other accounts receivable, less allowance for doubtful accounts	32,049	27,978
Inventory	220,965	197,814
Other current assets	16,503	16,151
Deferred income tax assets	5,822	4,234
Property and equipment, net	83,636	79,752
Goodwill and other intangible assets, net	149,978	145,995
Other assets	20,244	18,418
Total assets	570,856	526,224
Liabilities and Stockholders' (Deficit) Equity
Accounts payable	63,679	55,707
Due to affiliates	74,031	68,087
Accrued liabilities	35,886	32,279
Income taxes payable	609	481
Long-term debt	1,479	2,106
Other liabilities	4,132	3,762
Deferred income tax liabilities	4,359	4,609
Total liabilities	184,175	167,031
Total stockholders' (deficit) equity	386,681	359,193
Total liabilities and stockholders' deficit	570,856	526,224
Consolidating Eliminations
Assets
Due from affiliates	(2,289,371)	(1,966,505)
Investment in subsidiaries	(5,215,571)	(4,625,536)
Total assets	(7,504,942)	(6,592,041)
Liabilities and Stockholders' (Deficit) Equity
Due to affiliates	(2,289,371)	(1,966,505)
Total liabilities	(2,289,371)	(1,966,505)
Total stockholders' (deficit) equity	(5,215,571)	(4,625,536)
Total liabilities and stockholders' deficit	$ (7,504,942)	$ (6,592,041)

Parent, Issuers, Guarantor an84

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Earnings and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidating Statement of Earnings and Comprehensive Income
Net sales	$ 974,195	$ 998,043	$ 966,470	$ 999,609	$ 976,358	$ 998,161	$ 980,067	$ 998,032	$ 3,938,317	$ 3,952,618	$ 3,834,343
Cost of products sold									1,973,422	1,988,678	1,936,492
Gross profit	482,442	502,639	488,106	491,708	483,441	498,976	487,474	494,049	1,964,895	1,963,940	1,897,851
Selling, general and administrative expenses									1,351,296	1,365,986	1,313,134
Depreciation and amortization									112,323	99,657	89,391
Restructuring charges									22,679
Operating earnings									478,597	498,297	495,326
Interest expense (income)									132,899	144,237	116,842
Earnings before provision for income taxes									345,698	354,060	378,484
Provision (benefit) for income taxes									130,622	131,118	143,397
Net earnings	$ 35,719	$ 66,539	$ 56,992	$ 55,826	$ 52,621	$ 67,919	$ 60,159	$ 42,243	215,076	222,942	235,087
Other comprehensive income (loss), net of tax									18,215	(22,346)	(49,157)
Total comprehensive income									233,291	200,596	185,930
Reportable Legal Entities | Sally Holdings LLC and Sally Capital Inc.
Condensed Consolidating Statement of Earnings and Comprehensive Income
Selling, general and administrative expenses									526	364	475
Operating earnings									(526)	(364)	(475)
Interest expense (income)									132,696	144,229	116,753
Earnings before provision for income taxes									(133,222)	(144,593)	(117,228)
Provision (benefit) for income taxes									(51,726)	(56,161)	(45,532)
Equity in earnings of subsidiaries, net of tax									303,265	318,641	312,578
Net earnings									221,769	230,209	240,882
Other comprehensive income (loss), net of tax									(1,084)
Total comprehensive income									220,685	230,209	240,882
Reportable Legal Entities | Parent
Condensed Consolidating Statement of Earnings and Comprehensive Income
Selling, general and administrative expenses									10,935	11,902	9,473
Depreciation and amortization									4	3	1
Operating earnings									(10,939)	(11,905)	(9,474)
Earnings before provision for income taxes									(10,939)	(11,905)	(9,474)
Provision (benefit) for income taxes									(4,246)	(4,638)	(3,679)
Equity in earnings of subsidiaries, net of tax									221,769	230,209	240,882
Net earnings									215,076	222,942	235,087
Total comprehensive income									215,076	222,942	235,087
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Consolidating Statement of Earnings and Comprehensive Income
Net sales									3,209,039	3,219,812	3,102,406
Related party sales									2,501	2,666	2,733
Cost of products sold									1,590,184	1,595,187	1,545,873
Gross profit									1,621,356	1,627,291	1,559,266
Selling, general and administrative expenses									1,043,764	1,074,821	1,012,810
Depreciation and amortization									86,851	76,250	66,093
Restructuring charges									22,679
Operating earnings									468,062	476,220	480,363
Interest expense (income)									6	(6)	2
Earnings before provision for income taxes									468,056	476,226	480,361
Provision (benefit) for income taxes									177,383	181,932	185,388
Equity in earnings of subsidiaries, net of tax									12,592	24,347	17,605
Net earnings									303,265	318,641	312,578
Total comprehensive income									303,265	318,641	312,578
Reportable Legal Entities | Non-Guarantor Subsidiaries
Condensed Consolidating Statement of Earnings and Comprehensive Income
Net sales									729,278	732,806	731,937
Cost of products sold									385,739	396,157	393,352
Gross profit									343,539	336,649	338,585
Selling, general and administrative expenses									296,071	278,899	290,376
Depreciation and amortization									25,468	23,404	23,297
Operating earnings									22,000	34,346	24,912
Interest expense (income)									197	14	87
Earnings before provision for income taxes									21,803	34,332	24,825
Provision (benefit) for income taxes									9,211	9,985	7,220
Net earnings									12,592	24,347	17,605
Other comprehensive income (loss), net of tax									19,299	(22,346)	(49,157)
Total comprehensive income									31,891	2,001	(31,552)
Consolidating Eliminations
Condensed Consolidating Statement of Earnings and Comprehensive Income
Related party sales									(2,501)	(2,666)	(2,733)
Cost of products sold									(2,501)	(2,666)	(2,733)
Equity in earnings of subsidiaries, net of tax									(537,626)	(573,197)	(571,065)
Net earnings									(537,626)	(573,197)	(571,065)
Total comprehensive income									$ (537,626)	$ (573,197)	$ (571,065)

Parent, Issuers, Guarantor an85

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidating Statement of Cash Flows
Net cash provided by operating activities	$ 344,378	$ 351,005	$ 300,787
Cash Flows from Investing Activities:
Payments for property and equipment, net	(89,625)	(148,689)	(106,350)
Acquisitions, net of cash acquired		(26,141)	(6,468)
Net cash used by investing activities	(89,625)	(174,830)	(112,818)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	1,277,250	912,000	983
Repayments of long-term debt	(1,216,643)	(938,537)	(1,814)
Debt issuance costs	(8,376)	(12,748)
Repurchases of common stock	(346,051)	(207,312)	(227,559)
Proceeds from exercises of stock options	17,339	16,220	54,351
Excess tax benefit (shortfall) from share-based compensation	(1,914)	1,347	22,084
Net cash used by financing activities	(278,395)	(229,030)	(151,955)
Effect of foreign exchange rate changes on cash and cash equivalents	779	(561)	(2,551)
Net increase (decrease) in cash and cash equivalents	(22,863)	(53,416)	33,463
Cash and cash equivalents, beginning of year	86,622	140,038	106,575
Cash and cash equivalents, end of year	63,759	86,622	140,038
Reportable Legal Entities | Sally Holdings LLC and Sally Capital Inc.
Condensed Consolidating Statement of Cash Flows
Net cash provided by operating activities	(72,779)	20,902	19,003
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	1,277,250	912,000
Repayments of long-term debt	(1,215,940)	(937,785)
Debt issuance costs	(8,376)	(12,748)
Due to affiliates	(8,517)
Net cash used by financing activities	44,417	(38,533)
Net increase (decrease) in cash and cash equivalents	(28,362)	(17,631)	19,003
Cash and cash equivalents, beginning of year	28,372	46,003	27,000
Cash and cash equivalents, end of year	10	28,372	46,003
Reportable Legal Entities | Parent
Condensed Consolidating Statement of Cash Flows
Net cash provided by operating activities	5,187	189,761	151,126
Cash Flows from Investing Activities:
Payments for property and equipment, net		(16)	(2)
Net cash used by investing activities		(16)	(2)
Cash Flows from Financing Activities:
Repurchases of common stock	(346,051)	(207,312)	(227,559)
Proceeds from exercises of stock options	17,339	16,220	54,351
Due to affiliates	325,439
Excess tax benefit (shortfall) from share-based compensation	(1,914)	1,347	22,084
Net cash used by financing activities	(5,187)	(189,745)	(151,124)
Reportable Legal Entities | Guarantor Subsidiaries
Condensed Consolidating Statement of Cash Flows
Net cash provided by operating activities	386,604	107,289	104,239
Cash Flows from Investing Activities:
Payments for property and equipment, net	(64,000)	(117,539)	(79,541)
Acquisitions, net of cash acquired		(26,141)	(5,731)
Due from affiliates	(322,866)
Net cash used by investing activities	(386,866)	(143,680)	(85,272)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt			14
Repayments of long-term debt	(16)	(92)	(172)
Net cash used by financing activities	(16)	(92)	(158)
Net increase (decrease) in cash and cash equivalents	(278)	(36,483)	18,809
Cash and cash equivalents, beginning of year	22,368	58,851	40,042
Cash and cash equivalents, end of year	22,090	22,368	58,851
Reportable Legal Entities | Non-Guarantor Subsidiaries
Condensed Consolidating Statement of Cash Flows
Net cash provided by operating activities	25,366	33,053	26,419
Cash Flows from Investing Activities:
Payments for property and equipment, net	(25,625)	(31,134)	(26,807)
Acquisitions, net of cash acquired			(737)
Net cash used by investing activities	(25,625)	(31,134)	(27,544)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt			969
Repayments of long-term debt	(687)	(660)	(1,642)
Due to affiliates	5,944
Net cash used by financing activities	5,257	(660)	(673)
Effect of foreign exchange rate changes on cash and cash equivalents	779	(561)	(2,551)
Net increase (decrease) in cash and cash equivalents	5,777	698	(4,349)
Cash and cash equivalents, beginning of year	35,882	35,184	39,533
Cash and cash equivalents, end of year	41,659	$ 35,882	$ 35,184
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	322,866
Net cash used by investing activities	322,866
Cash Flows from Financing Activities:
Due to affiliates	(322,866)
Net cash used by financing activities	$ (322,866)

2017 Restructuring Plan (Detail

2017 Restructuring Plan (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2017Office	Sep. 30, 2017USD ($)
Changes in restructuring reserve
Expenses		$ 22,679
2017 Restructuring Plan
Restructuring Plan
Number of administrative offices closed | Office	4
Asset impairment expenses		4,700
Carrying value of an asset		4,400
Changes in restructuring reserve
Restructuring reserve, beginning balance
Expenses		22,679
Expenses Paid or Otherwise Settled		18,837
Restructuring reserve, ending balance		3,842
2017 Restructuring Plan | Workforce reductions
Changes in restructuring reserve
Restructuring reserve, beginning balance
Expenses		12,059
Expenses Paid or Otherwise Settled		10,199
Restructuring reserve, ending balance		1,860
2017 Restructuring Plan | Facility closures
Changes in restructuring reserve
Restructuring reserve, beginning balance
Expenses		6,746
Expenses Paid or Otherwise Settled		4,999
Restructuring reserve, ending balance		1,747
2017 Restructuring Plan | Other
Changes in restructuring reserve
Restructuring reserve, beginning balance
Expenses		3,874
Expenses Paid or Otherwise Settled		3,639
Restructuring reserve, ending balance		235
Sally Beauty Supply
Changes in restructuring reserve
Expenses		13,700
Beauty Systems Group
Changes in restructuring reserve
Expenses		6,600
Corporate
Changes in restructuring reserve
Expenses		$ 2,400

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Subsequent Event [Line Items]
Restructuring charges		$ 22,679
Subsequent Event | 2018 Restructuring Plan | Minimum | Scenario Forecast
Subsequent Event [Line Items]
Restructuring charges	$ 12,000
Subsequent Event | 2018 Restructuring Plan | Maximum | Scenario Forecast
Subsequent Event [Line Items]
Restructuring charges	$ 14,000

Quarterly Financial Data (Una88

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Quarterly Financial Data (Unaudited)
Net sales	$ 974,195	$ 998,043	$ 966,470	$ 999,609	$ 976,358	$ 998,161	$ 980,067	$ 998,032	$ 3,938,317	$ 3,952,618	$ 3,834,343
Gross profit	482,442	502,639	488,106	491,708	483,441	498,976	487,474	494,049	1,964,895	1,963,940	1,897,851
Net earnings	$ 35,719	$ 66,539	$ 56,992	$ 55,826	$ 52,621	$ 67,919	$ 60,159	$ 42,243	$ 215,076	$ 222,942	$ 235,087
Earnings per share
Basic (in dollars per share)	$ 0.27	$ 0.49	$ 0.41	$ 0.39	$ 0.36	$ 0.47	$ 0.41	$ 0.28	$ 1.56	$ 1.51	$ 1.50
Diluted (in dollars per share)	$ 0.27	$ 0.49	$ 0.40	$ 0.39	$ 0.36	$ 0.46	$ 0.41	$ 0.28	$ 1.56	$ 1.50	$ 1.49