Sally Beauty (SBH) 10-Q 2 Aug 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Sally Beauty Holdings, Inc.
Entity Central Index Key	1,368,458
Document Type	10-Q
Trading Symbol	SBH
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		120,140,854
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 76,855	$ 63,759
Trade accounts receivable, net	48,682	46,986
Accounts receivable, other	45,903	45,255
Inventory	950,978	930,855
Other current assets	42,089	55,223
Total current assets	1,164,507	1,142,078
Property and equipment, net of accumulated depreciation of $593,545 at June 30, 2018 and $546,061 at September 30, 2017	296,614	313,717
Goodwill	536,111	537,791
Intangible assets, excluding goodwill, net of accumulated amortization of $130,057 at June 30, 2018 and $121,550 at September 30, 2017	75,738	80,305
Other assets	22,742	25,116
Total assets	2,095,712	2,099,007
Current liabilities:
Current maturities of long-term debt	68,992	96,082
Accounts payable	310,488	307,752
Accrued liabilities	166,505	166,527
Income taxes payable	3,148	2,233
Total current liabilities	549,133	572,594
Long-term debt	1,769,314	1,771,853
Other liabilities	33,774	20,140
Deferred income tax liabilities, net	69,700	98,036
Total liabilities	2,421,921	2,462,623
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 120,226 and 129,710 shares issued and 119,882 and 129,585 shares outstanding at June 30, 2018 and September 30, 2017, respectively	1,199	1,296
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Accumulated deficit	(235,401)	(283,076)
Accumulated other comprehensive loss, net of tax	(92,007)	(81,836)
Total stockholders’ deficit	(326,209)	(363,616)
Total liabilities and stockholders’ deficit	$ 2,095,712	$ 2,099,007

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 593,545	$ 546,061
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 130,057	$ 121,550
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	500,000,000	500,000,000
Common stock, shares issued	120,226,000	129,710,000
Common stock, shares outstanding	119,882,000	129,585,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, Authorized shares	50,000,000	50,000,000
Preferred stock, shares issued	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net sales	$ 996,283	$ 998,043	$ 2,966,568	$ 2,964,122
Cost of goods sold	502,913	495,404	1,500,247	1,481,669
Gross profit	493,370	502,639	1,466,321	1,482,453
Selling, general and administrative expenses	378,598	367,247	1,118,345	1,101,355
Restructuring charges	12,544	5,054	24,513	14,265
Operating earnings	102,228	130,338	323,463	366,833
Interest expense	24,501	26,969	73,779	80,616
Earnings before provision for income taxes	77,727	103,369	249,684	286,217
Provision for income taxes	19,501	36,830	46,823	106,860
Net earnings	$ 58,226	$ 66,539	$ 202,861	$ 179,357
Earnings per share:
Basic	$ 0.48	$ 0.49	$ 1.63	$ 1.28
Diluted	$ 0.48	$ 0.49	$ 1.62	$ 1.28
Weighted average shares:
Basic	120,901	135,450	124,331	139,888
Diluted	121,673	136,159	125,111	140,634

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 58,226	$ 66,539	$ 202,861	$ 179,357
Other comprehensive income (loss):
Foreign currency translation adjustments	(22,168)	17,686	(11,986)	7,044
Interest rate caps:
Changes in fair value	434		2,555
Income taxes related to changes in fair value	(126)		(740)
Other comprehensive income (loss), net of tax	(21,860)	17,686	(10,171)	7,044
Total comprehensive income	$ 36,366	$ 84,225	$ 192,690	$ 186,401

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities:
Net earnings	$ 202,861	$ 179,357
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	81,428	83,972
Share-based compensation expense	8,237	8,590
Amortization of deferred financing costs	2,842	2,364
Loss on extinguishment of debt	876
Deferred income taxes	(25,132)	11,325
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	(2,171)	90
Accounts receivable, other	(914)	(4,185)
Inventory	(24,119)	(36,221)
Other current assets	12,973	5,355
Other assets	341	622
Accounts payable and accrued liabilities	10,180	(26,685)
Income taxes payable	801	886
Other liabilities	13,727	(2,623)
Net cash provided by operating activities	281,930	222,847
Cash Flows from Investing Activities:
Payments for property and equipment, net	(62,171)	(66,529)
Acquisitions, net of cash acquired	(9,175)
Net cash used by investing activities	(71,346)	(66,529)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	369,319	296,500
Repayments of long-term debt	(401,222)	(215,519)
Debt issuance costs	(1,151)
Payments for common stock repurchased	(164,838)	(286,995)
Proceeds from exercises of stock options	1,317	16,941
Net cash used by financing activities	(196,575)	(189,073)
Effect of foreign exchange rate changes on cash and cash equivalents	(913)	233
Net increase (decrease) in cash and cash equivalents	13,096	(32,522)
Cash and cash equivalents, beginning of period	63,759	86,622
Cash and cash equivalents, end of period	76,855	54,100
Supplemental Cash Flow Information:
Interest paid	83,344	103,493
Income taxes paid	53,559	84,319
Capital expenditures incurred but not paid	$ 3,264	$ 1,200

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The condensed consolidated interim financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures made are adequate to make the information not misleading. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Sally Beauty Holdings, Inc. and its consolidated subsidiaries’ (“Sally Beauty” or the “Company” or “we”) Annual Report on Form 10-K for the fiscal year ended September 30, 2017. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, these condensed consolidated interim financial statements reflect all adjustments that are of a normal recurring nature and which are necessary to present fairly our consolidated financial position as of June 30, 2018 and September 30, 2017, our consolidated results of operations and consolidated comprehensive income for the three and nine months ended June 30, 2018 and 2017, and our consolidated cash flows for the nine months ended June 30, 2018 and 2017. The condensed consolidated interim 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 from the date our financial statements are issued. Based on management’s assessment, we have concluded that there does not exist substantial doubt about our ability to continue as a going concern as of the date the condensed consolidated interim financial statements included herein were issued. Certain amounts for the prior fiscal periods have been reclassified to conform to the current fiscal period presentation, in connection with the retroactive adoption of two new accounting pronouncements in the current fiscal year. See Note 3 below for additional information.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies We adhere to the same accounting policies in the preparation of our condensed consolidated interim financial statements as we do in the preparation of our full-year consolidated financial statements. As permitted under GAAP, interim accounting for certain expenses, including income taxes, is based on full-year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual effective income tax rates.

Accounting Changes and Recent A

Accounting Changes and Recent Accounting Pronouncements	9 Months Ended
	Jun. 30, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes and Recent Accounting Pronouncements	3. Accounting Changes and Recent Accounting Pronouncements Accounting Changes In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Income Taxes Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements Fair value on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement As of June 30, 2018 As of September 30, 2017 Assets Foreign exchange contracts Level 2 $ 183 $ 779 Interest rate caps Level 2 7,734 5,178 Total assets $ 7,917 $ 5,957 Liabilities Foreign exchange contracts Level 2 $ — $ 207 Other fair value disclosures As of June 30, 2018 As of September 30, 2017 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 950,000 $ 889,115 $ 950,000 $ 973,750 Other long-term debt Level 2 910,265 894,924 941,480 946,180 Total debt $ 1,860,265 $ 1,784,039 $ 1,891,480 $ 1,919,930

Accumulated Stockholders' Defic

Accumulated Stockholders' Deficit	9 Months Ended
	Jun. 30, 2018
Stockholders Equity Note [Abstract]
Accumulated Stockholders' Deficit	5. Accumulated Stockholders’ Deficit In August 2017, we announced that our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $1.0 billion of its common stock over an approximate four-year period expiring on September 30, 2021 (the “2017 Share Repurchase Program”) and terminated our similar share repurchase program approved by our Board in 2014 (the “2014 Share Repurchase Program”). During the nine months ended June 30, 2018 and 2017, we repurchased and subsequently retired approximately 9.9 million and 13.1 million shares of our common stock at an aggregate cost of $164.6 million and $286.5 million, excluding common stock surrendered by grantees to satisfy tax withholding obligations, under the 2017 Share Repurchase Program and the 2014 Share Repurchase Program, respectively. 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 our recording of such repurchases, we recorded the excess in accumulated deficit. The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Total Balance at September 30, 2017 $ (80,752 ) $ (1,084 ) $ (81,836 ) Other comprehensive (loss) income before reclassification, net of tax (11,986 ) 1,815 (10,171 ) Balance at June 30, 2018 $ (92,738 ) $ 731 $ (92,007 )

Earnings Per Share

Earnings Per Share	9 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
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): Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net earnings $ 58,226 $ 66,539 $ 202,861 $ 179,357 Weighted average basic shares 120,901 135,450 124,331 139,888 Dilutive securities: Stock option and stock award programs 772 709 780 746 Weighted average diluted shares 121,673 136,159 125,111 140,634 Earnings per share: Basic $ 0.48 $ 0.49 $ 1.63 $ 1.28 Diluted $ 0.48 $ 0.49 $ 1.62 $ 1.28 For the three and nine months ended June 30, 2018, options to purchase 5.2 million shares of our common stock were outstanding but not included in our computations of diluted earnings per share, since these options were anti-dilutive. For the three and nine months ended June 30, 2017, options to purchase 4.8 million shares of our common stock were outstanding but not included in the computations of diluted earnings per share, since these options were anti-dilutive.

Share-Based Payments

Share-Based Payments	9 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Payments	7. Share-Based Payments Performance-Based Awards The following table presents a summary of the activity for our performance unit awards assuming 100% payout: Performance Unit Awards Number of Shares (in Weighted Average Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2017 197 $ 24.50 1.5 Granted 215 17.42 Vested — — Forfeited (61 ) 20.60 Unvested at June 30, 2018 351 $ 20.86 1.5 Service-Based Awards The following table presents a summary of the activity for our stock option awards: Number of Outstanding Options (in Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at September 30, 2017 5,211 $ 24.12 5.6 $ 3,867 Granted 1,220 17.23 Exercised (144 ) 9.14 Forfeited or expired (819 ) 23.78 Outstanding at June 30, 2018 5,468 $ 23.03 5.7 $ 1,487 Exercisable at June 30, 2018 3,202 $ 24.06 4.0 $ 1,395 The following table presents a summary of the activity for our Restricted Stock Awards: Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2017 125 $ 26.00 1.3 Granted 326 16.98 Vested (50 ) 24.44 Forfeited (56 ) 19.79 Unvested at June 30, 2018 345 $ 18.74 2.4 The following table presents a summary of the activity for our Restricted Stock Units: Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2017 — $ — — Granted 74 17.34 Vested — — Forfeited (7 ) 17.42 Unvested at June 30, 2018 67 $ 17.34 0.2

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	8. Goodwill and Intangible Assets In December 2017, During the three months ended March 31, 2018, we completed our annual assessment for impairment of goodwill and other intangible assets. No material impairment losses were recognized in the current or prior periods presented in connection with goodwill and other intangible assets. For the three months ended June 30, 2018 and 2017, amortization expense related to other intangible assets was $3.2 million, and, for the nine months ended June 30, 2018 and 2017, amortization expense was $8.8 million and $9.9 million, respectively.

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	9 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	9. Short-term Borrowings and Long-term Debt At June 30, 2018, we had $417.8 million available for borrowing under the ABL facility, including the Canadian sub-facility. At June 30, 2018, we were in compliance with the agreements and instruments governing our debt, including our financial covenants. On March 27, 2018, we entered into an Amendment No. 1 with respect to our term loan B pursuant to which the interest rate spread on the variable-rate tranche of approximately $548.6 million was reduced by 25 basis points to 2.25%. In connection with this amendment, we incurred and capitalized financing costs of approximately $1.0 million. This amount is reported as a deduction from the term loan B and is being amortized over the term of the term loan B using the effective interest method. Additionally, we recorded a loss on extinguishment of debt in the amount of approximately $0.9 million, including cost resulting from certain creditors exiting the loan syndication.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	10. Derivative Instruments and Hedging Activities During the nine months ended June 30, 2018, 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”) to mitigate the exposure to higher interest rates in connection with our term loan B. The interest rate caps expire on June 30, 2023 and are designated as cash flow hedges. Non-designated Cash Flow Hedges At June 30, 2018, we held foreign currency forward contracts with an aggregate notional amount of $50.2 million based upon exchange rates at June 30, 2018. These derivative instruments expire at various dates through September 30, 2018. The table below presents the fair value of our derivative financial instruments (in thousands): Asset Derivatives Liability Derivatives Classification June 30, 2018 September 30, 2017 Classification June 30, 2018 September 30, 2017 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 7,734 $ 5,178 N/A $ — $ — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 183 779 Accrued liabilities — 207 $ 7,917 $ 5,957 $ — $ 207 The effects of our derivative financial instruments on our condensed consolidated statements of earnings were not material for the three and nine months ended June 30, 2018 and 2017.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes On December 22, 2017, the U.S. enacted comprehensive amendments to the Internal Revenue Code of 1986 (“U.S. Tax Reform”). Among other things, U.S. Tax Reform (a) reduces the federal statutory tax rate for corporate taxpayers, (b) provides for a deemed repatriation of undistributed foreign earnings by U.S. taxpayers and makes other fundamental changes on how foreign earnings will be taxed by the U.S. and (c) otherwise modifies corporate tax rules in significant ways. In accordance with ASC Topic 740, Income Taxes In December 2017, the SEC provided guidance allowing registrants to record provisional amounts, during a specified measurement period, when the necessary information is not available, prepared or analyzed in reasonable detail to account for the impact of U.S. Tax Reform. Accordingly, we have reported the revaluation of deferred income taxes and the impact of the deemed repatriation on our consolidated interim financial statements based on provisional amounts. Specifically, in the nine months ended June 30, 2018, we recognized a provisional income tax benefit of $36.4 million in connection with the revaluation and income tax accounting method changes related to our deferred income tax assets and liabilities, and a provisional income tax charge of $11.4 million for federal and state income taxes, including $10.4 million payable beyond one year, related to accumulated but undistributed earnings of our foreign operations. In the three months ended June 30, 2018, we recognized a deferred income tax benefit of $2.7 million primarily in connection with income tax accounting method changes adopted for our federal income tax return for the fiscal year ended September 30, 2017. For the fiscal year ending September 30, 2018, our U.S. federal statutory tax rate is 24.5% and, for fiscal years after that, 21.0%. Among the factors that could affect the accuracy of our provisional amounts is uncertainty about the statutory tax rate applicable to our deferred income tax assets and liabilities, since the actual rate will be dependent on the timing of realization or settlement of such assets and liabilities. At June 30, 2018, we estimated the dates when such realization or settlement would occur. The actual dates when such realization or settlement occurs may be significantly different from our estimates, which could result in the ultimate revaluation of our deferred income taxes to be different from our provisional amounts. In addition, there is uncertainty about the impact of expected Internal Revenue Service (“IRS”) guidance intended to interpret the most complex provisions of U.S. Tax Reform. Our liability for federal and state income taxes applicable to undistributed earnings of our foreign operations may be materially different from our provisional amount as a result of such future IRS guidance and interpretation and in connection with estimates related to the amount of undistributed foreign earnings and cash balances. Effective for fiscal years beginning after December 31, 2017, U.S. Tax Reform subjects taxpayers to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. In January 2018, FASB Staff provided guidance that an entity can make an accounting policy election to either recognize deferred taxes related to items giving rise to GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. Given the uncertainty about the impact of expected IRS guidance related to the GILTI provisions, we are still evaluating the effects of the GILTI provisions and have not yet determined our accounting policy. We are currently assessing the potential additional impact of U.S. Tax Reform on our business and consolidated financial statements, and expect to complete such assessment on or before September 30, 2018. The difference between our U.S. federal statutory income tax rate and our effective income tax rate is summarized below: Three Months Ended June 30, 2018 Nine Months Ended June 30, 2018 U.S. federal statutory income tax rate 24.5 % 24.5 % State income taxes, net of federal tax benefit 2.9 3.1 Effect of foreign operations 1.0 1.0 Deferred tax revaluation, including adoption of income tax method changes (3.5) (14.6) Deemed repatriation tax — 4.6 Other, net 0.2 0.2 Effective tax rate 25.1 % 18.8 %

Business Segments

Business Segments	9 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Business Segments	12. Business Segments Segment data for the three and nine months ended June 30, 2018 and 2017 is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net sales: Sally Beauty Supply ("SBS") $ 591,583 $ 594,880 $ 1,757,272 $ 1,760,732 Beauty Systems Group ("BSG") 404,700 403,163 1,209,296 1,203,390 Total $ 996,283 $ 998,043 $ 2,966,568 $ 2,964,122 Earnings before provision for income taxes: Segment operating earnings: SBS $ 94,912 $ 104,880 $ 271,834 $ 294,245 BSG 62,039 67,327 186,553 193,630 Segment operating earnings 156,951 172,207 458,387 487,875 Unallocated expenses (42,179 ) (36,815 ) (110,411 ) (106,777 ) Restructuring charges (12,544 ) (5,054 ) (24,513 ) (14,265 ) Consolidated operating earnings 102,228 130,338 323,463 366,833 Interest expense (24,501 ) (26,969 ) (73,779 ) (80,616 ) Earnings before provision for income taxes $ 77,727 $ 103,369 $ 249,684 $ 286,217 Sales between segments, which are eliminated in consolidation, were not material during the three and nine months ended June 30, 2018 and 2017.

Parent, Issuers, Guarantor and

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements	9 Months Ended
	Jun. 30, 2018
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements	13. Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet June 30, 2018 (In thousands) Parent Sally Holdings and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 27,386 $ 49,459 $ — $ 76,855 Trade and other accounts receivable, net — — 59,773 34,812 — 94,585 Due from affiliates — — 2,542,180 — (2,542,180 ) — Inventory — — 720,360 230,618 — 950,978 Other current assets 2,755 267 24,741 14,326 — 42,089 Property and equipment, net 9 — 221,685 74,920 — 296,614 Investment in subsidiaries 1,309,860 3,968,488 371,610 — (5,649,958 ) — Goodwill and other intangible assets, net — — 461,468 150,381 — 611,849 Other assets 1,050 10,683 (7,850 ) 18,859 — 22,742 Total assets $ 1,313,674 $ 3,979,448 $ 4,421,353 $ 573,375 $ (8,192,138 ) $ 2,095,712 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 85 $ — $ 242,602 $ 67,801 $ — $ 310,488 Due to affiliates 1,627,792 823,046 — 91,342 (2,542,180 ) — Accrued liabilities 256 6,188 126,664 33,397 — 166,505 Income taxes payable 1,578 1,850 — (280 ) — 3,148 Long-term debt — 1,837,416 2 888 — 1,838,306 Other liabilities 10,371 — 19,347 4,056 — 33,774 Deferred income tax liabilities, net (199 ) 1,088 64,250 4,561 — 69,700 Total liabilities 1,639,883 2,669,588 452,865 201,765 (2,542,180 ) 2,421,921 Total stockholders’ (deficit) equity (326,209 ) 1,309,860 3,968,488 371,610 (5,649,958 ) (326,209 ) Total liabilities and stockholders’ (deficit) equity $ 1,313,674 $ 3,979,448 $ 4,421,353 $ 573,375 $ (8,192,138 ) $ 2,095,712 Condensed Consolidating Balance Sheet September 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 22,090 $ 41,659 $ — $ 63,759 Trade and other accounts receivable, net 200 — 59,992 32,049 — 92,241 Due from affiliates — — 2,289,371 — (2,289,371 ) — Inventory — — 709,890 220,965 — 930,855 Other current assets 11,763 813 26,144 16,503 — 55,223 Property and equipment, net 12 — 230,069 83,636 — 313,717 Investment in subsidiaries 1,110,891 3,717,999 386,681 — (5,215,571 ) — Goodwill and other intangible assets, net — — 468,118 149,978 — 618,096 Other assets 1,538 8,116 (7,837 ) 23,299 — 25,116 Total assets $ 1,124,404 $ 3,726,938 $ 4,184,518 $ 568,089 $ (7,504,942 ) $ 2,099,007 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 251 $ 4 $ 243,818 $ 63,679 $ — $ 307,752 Due to affiliates 1,487,484 727,856 — 74,031 (2,289,371 ) — Accrued liabilities 285 20,108 113,628 32,506 — 166,527 Income taxes payable — 1,624 — 609 — 2,233 Long-term debt — 1,866,455 1 1,479 — 1,867,935 Other liabilities — — 16,008 4,132 — 20,140 Deferred income tax liabilities, net — — 93,064 4,972 — 98,036 Total liabilities 1,488,020 2,616,047 466,519 181,408 (2,289,371 ) 2,462,623 Total stockholders’ (deficit) equity (363,616 ) 1,110,891 3,717,999 386,681 (5,215,571 ) (363,616 ) Total liabilities and stockholders’ (deficit) equity $ 1,124,404 $ 3,726,938 $ 4,184,518 $ 568,089 $ (7,504,942 ) $ 2,099,007 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 798,185 $ 198,098 $ — $ 996,283 Related party sales — — 639 — (639 ) — Cost of products sold and distribution expenses — — 399,482 104,070 (639 ) 502,913 Gross profit — — 399,342 94,028 — 493,370 Selling, general and administrative expenses 2,777 367 292,178 83,276 — 378,598 Restructuring charges — — 12,544 — — 12,544 Operating earnings (loss) (2,777 ) (367 ) 94,620 10,752 — 102,228 Interest expense (income) — 24,510 2 (11 ) — 24,501 Earnings (loss) before provision for income taxes (2,777 ) (24,877 ) 94,618 10,763 — 77,727 Provision (benefit) for income taxes (804 ) (7,206 ) 23,823 3,688 — 19,501 Equity in earnings of subsidiaries, net of tax 60,199 77,870 7,075 — (145,144 ) — Net earnings 58,226 60,199 77,870 7,075 (145,144 ) 58,226 Other comprehensive income (loss), net of tax — 308 — (22,168 ) — (21,860 ) Total comprehensive income (loss) $ 58,226 $ 60,507 $ 77,870 $ (15,093 ) $ (145,144 ) $ 36,366 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended June 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 814,423 $ 183,620 $ — $ 998,043 Related party sales — — 648 (648 ) — Cost of products sold and distribution expenses — — 398,707 97,345 (648 ) 495,404 Gross profit — — 416,364 86,275 — 502,639 Selling, general and administrative expenses 2,726 81 285,433 79,007 — 367,247 Restructuring charges — — 5,054 — — 5,054 Operating earnings (loss) (2,726 ) (81 ) 125,877 7,268 — 130,338 Interest expense (income) — 26,952 (1 ) 18 — 26,969 Earnings (loss) before provision for income taxes (2,726 ) (27,033 ) 125,878 7,250 — 103,369 Provision (benefit) for income taxes (1,058 ) (10,500 ) 44,929 3,459 36,830 Equity in earnings of subsidiaries, net of tax 68,207 84,740 3,791 — (156,738 ) — Net earnings 66,539 68,207 84,740 3,791 (156,738 ) 66,539 Other comprehensive income, net of tax — — — 17,686 17,686 Total comprehensive income $ 66,539 $ 68,207 $ 84,740 $ 21,477 $ (156,738 ) $ 84,225 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,381,460 $ 585,108 $ — $ 2,966,568 Related party sales — — 1,716 — (1,716 ) — Cost of products sold and distribution expenses — — 1,194,183 307,780 (1,716 ) 1,500,247 Gross profit — — 1,188,993 277,328 — 1,466,321 Selling, general and administrative expenses 8,242 1,148 856,080 252,875 — 1,118,345 Restructuring charges — — 24,513 — — 24,513 Operating earnings (loss) (8,242 ) (1,148 ) 308,400 24,453 — 323,463 Interest expense (income) — 73,817 (1 ) (37 ) — 73,779 Earnings (loss) before provision for income taxes (8,242 ) (74,965 ) 308,401 24,490 — 249,684 Provision (benefit) for income taxes (1,883 ) (21,630 ) 46,666 23,670 — 46,823 Equity in earnings of subsidiaries, net of tax 209,220 262,555 820 — (472,595 ) — Net earnings 202,861 209,220 262,555 820 (472,595 ) 202,861 Other comprehensive income (loss), net of tax — 1,815 — (11,986 ) — (10,171 ) Total comprehensive income (loss) $ 202,861 $ 211,035 $ 262,555 $ (11,166 ) $ (472,595 ) $ 192,690 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,429,104 $ 535,018 $ — $ 2,964,122 Related party sales — — 1,991 (1,991 ) — Cost of products sold and distribution expenses — — 1,201,427 282,233 (1,991 ) 1,481,669 Gross profit — — 1,229,668 252,785 — 1,482,453 Selling, general and administrative expenses 8,098 412 859,791 233,054 — 1,101,355 Restructuring charges — — 14,265 — — 14,265 Operating earnings (loss) (8,098 ) (412 ) 355,612 19,731 — 366,833 Interest expense (income) — 80,560 (1 ) 57 — 80,616 Earnings (loss) before provision for income taxes (8,098 ) (80,972 ) 355,613 19,674 — 286,217 Provision (benefit) for income taxes (3,145 ) (31,451 ) 132,727 8,729 106,860 Equity in earnings of subsidiaries, net of tax 184,310 233,831 10,945 — (429,086 ) — Net earnings 179,357 184,310 233,831 10,945 (429,086 ) 179,357 Other comprehensive income, net of tax — — — 7,044 — 7,044 Total comprehensive income $ 179,357 $ 184,310 $ 233,831 $ 17,989 $ (429,086 ) $ 186,401 Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 23,213 $ (62,729 ) $ 309,242 $ 12,204 $ — $ 281,930 Cash Flows from Investing Activities: Payments for property and equipment, net — — (51,138 ) (11,033 ) — (62,171 ) Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (252,809 ) — 252,809 — Net cash used by investing activities — — (303,947 ) (20,208 ) 252,809 (71,346 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 369,314 5 — — 369,319 Repayments of long-term debt — (400,624 ) (4 ) (594 ) — (401,222 ) Debt issuance costs — (1,151 ) — — — (1,151 ) Repurchases of common stock (164,838 ) — — — — (164,838 ) Proceeds from exercises of stock options 1,317 — — — — 1,317 Due to affiliates 140,308 95,190 — 17,311 (252,809 ) — Net cash (used) provided by financing activities (23,213 ) 62,729 1 16,717 (252,809 ) (196,575 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (913 ) — (913 ) Net increase in cash and cash equivalents — — 5,296 7,800 — 13,096 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 27,386 $ 49,459 $ — $ 76,855 Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 11,920 $ (71,305 ) $ 275,021 $ 7,211 $ — $ 222,847 Cash Flows from Investing Activities: Payments for property and equipment, net — — (50,099 ) (16,430 ) — (66,529 ) Due from affiliates — — (231,591 ) — 231,591 — Net cash used by investing activities — — (281,690 ) (16,430 ) 231,591 (66,529 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 296,500 — — — 296,500 Repayments of long-term debt — (215,000 ) (15 ) (504 ) — (215,519 ) Repurchases of common stock (286,995 ) — — — (286,995 ) Proceeds from exercises of stock options 16,941 — — — 16,941 Due to affiliates 258,134 (38,557 ) — 12,014 (231,591 ) — Net cash (used) provided by financing activities (11,920 ) 42,943 (15 ) 11,510 (231,591 ) (189,073 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 233 — 233 Net increase (decrease) in cash and cash equivalents — (28,362 ) (6,684 ) 2,524 — (32,522 ) Cash and cash equivalents, beginning of period — 28,372 22,368 35,882 — 86,622 Cash and cash equivalents, end of period $ — $ 10 $ 15,684 $ 38,406 $ — $ 54,100

Restructuring Plans

Restructuring Plans	9 Months Ended
	Jun. 30, 2018
Restructuring And Related Activities [Abstract]
Restructuring Plans	14. Restructuring Plans 2017 Restructuring Plan In January 2017, our Board of Directors 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. At September 30, 2017, the initiatives contemplated by the 2017 Restructuring Plan were substantially completed. The liability related to the 2017 Restructuring Plan, which is included in accrued liabilities in our consolidated balance sheets, is as follows (in thousands): Restructuring Activity Liability at September 30, 2017 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at June 30, 2018 Workforce reductions $ 1,860 $ — $ 1,346 $ 325 $ 189 Facility closures 1,747 — 1,060 194 493 Other 235 — 235 — — Total $ 3,842 $ — $ 2,641 $ 519 $ 682 2018 Restructuring Plan In November 2017, our Board approved a restructuring plan (the “2018 Restructuring Plan”) focused primarily on significantly improving the profitability of our international businesses, with particular focus on our European operations. In April 2018, we announced an expansion of the 2018 Restructuring Plan that contained cost reduction initiatives designed to help fund important long-term growth initiatives. The expansion to the 2018 Restructuring Plan included headcount reductions primarily at our corporate headquarters in Denton, Texas. We estimate that we will incur total charges in connection with the expanded 2018 Restructuring Plan of approximately $28 million to $30 million related primarily to employee separation costs and third-party consulting. We anticipate the remaining costs to be incurred in the second half of fiscal year 2018 and that we will substantially complete the 2018 Restructuring Plan in fiscal year 2018. The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities in our consolidated balance sheets, is as follows (in thousands): Restructuring Activity Liability at September 30, 2017 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at June 30, 2018 Workforce reductions $ — $ 13,784 $ 11,955 $ — $ 1,829 Consulting — 6,430 4,889 — 1,541 Other — 4,299 3,824 — 475 Total $ — $ 24,513 $ 20,668 $ — $ 3,845 Expenses incurred in the nine months ended June 30, 2018 represent costs incurred by SBS ($11.0 million), BSG ($2.2 million) and corporate ($11.3 million).

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. Commitments and Contingencies We are involved, from time to time, in various claims and lawsuits incidental to the conduct of our business in the ordinary course. We carry insurance coverage in such amounts in excess of our self-insured retention as we believe to be reasonable under the circumstances and that may or may not cover any or all of our liabilities in respect of these matters. We do not believe that the ultimate resolution of these matters will have a material adverse impact on our consolidated financial position, cash flows or results of operations. Data Security Incidents In the fiscal year ended September 30, 2014, we disclosed that we had experienced a data security incident (the “2014 data security incident”). In the fiscal year ended September 30, 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 the Company has incurred to date in connection with the data security incidents include professional advisory fees and legal costs and expenses relating to investigating and remediating the data security incidents and the settlement of prior assessments by payment card networks. During the three months ended June 30, 2018, we received an assessment from a payment card network in connection with the 2015 data security incident and recognized $7.9 million of expenses. The assessment is based on the network’s claims against the Company’s acquiring banks for costs that it asserts its issuing banks incurred in connection with the 2015 data security incident, including incremental counterfeit fraud losses and non-ordinary course operating expenses, such as card reissuance costs. The Company’s estimated probable loss related to the claims made by payment card networks in connection with the data security incidents are based on currently available information. The Company disputes the validity of the payment card network’s claims and intends to contest them vigorously. The Company may incur additional costs and expenses related to the data security incidents in future periods. These costs and expenses may result from liabilities related to (i) claims by payment card networks, (ii) governmental or third party investigations, proceedings or litigation, (iii) legal and other fees necessary to defend against any potential liabilities or claims, and (iv) further investigatory and remediation costs. As of June 30, 2018, the scope of these additional costs and expenses, or a range thereof, beyond amounts management has determined to be probable, cannot be reasonably estimated and, while we do not anticipate that 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.

Accounting Changes and Recent22

Accounting Changes and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Jun. 30, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes	Accounting Changes In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Income Taxes
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities by fair value hierarchy	Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement As of June 30, 2018 As of September 30, 2017 Assets Foreign exchange contracts Level 2 $ 183 $ 779 Interest rate caps Level 2 7,734 5,178 Total assets $ 7,917 $ 5,957 Liabilities Foreign exchange contracts Level 2 $ — $ 207
Schedule of other fair value disclosures	Other fair value disclosures As of June 30, 2018 As of September 30, 2017 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 950,000 $ 889,115 $ 950,000 $ 973,750 Other long-term debt Level 2 910,265 894,924 941,480 946,180 Total debt $ 1,860,265 $ 1,784,039 $ 1,891,480 $ 1,919,930

Accumulated Stockholders' Def24

Accumulated Stockholders' Deficit (Tables)	9 Months Ended
	Jun. 30, 2018
Stockholders Equity Note [Abstract]
Schedule of changes in accumulated other comprehensive loss	The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Total Balance at September 30, 2017 $ (80,752 ) $ (1,084 ) $ (81,836 ) Other comprehensive (loss) income before reclassification, net of tax (11,986 ) 1,815 (10,171 ) Balance at June 30, 2018 $ (92,738 ) $ 731 $ (92,007 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
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): Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net earnings $ 58,226 $ 66,539 $ 202,861 $ 179,357 Weighted average basic shares 120,901 135,450 124,331 139,888 Dilutive securities: Stock option and stock award programs 772 709 780 746 Weighted average diluted shares 121,673 136,159 125,111 140,634 Earnings per share: Basic $ 0.48 $ 0.49 $ 1.63 $ 1.28 Diluted $ 0.48 $ 0.49 $ 1.62 $ 1.28

Share-Based Payments (Tables)

Share-Based Payments (Tables)	9 Months Ended
	Jun. 30, 2018
Share-Based Payments
Summary of activity for performance based unit awards assuming 100% payout	Performance Unit Awards Number of Shares (in Weighted Average Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2017 197 $ 24.50 1.5 Granted 215 17.42 Vested — — Forfeited (61 ) 20.60 Unvested at June 30, 2018 351 $ 20.86 1.5
Summary of activity for stock option awards	Number of Outstanding Options (in Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at September 30, 2017 5,211 $ 24.12 5.6 $ 3,867 Granted 1,220 17.23 Exercised (144 ) 9.14 Forfeited or expired (819 ) 23.78 Outstanding at June 30, 2018 5,468 $ 23.03 5.7 $ 1,487 Exercisable at June 30, 2018 3,202 $ 24.06 4.0 $ 1,395
Restricted Stock
Share-Based Payments
Summary of the activity for restricted stock awards/units	Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2017 125 $ 26.00 1.3 Granted 326 16.98 Vested (50 ) 24.44 Forfeited (56 ) 19.79 Unvested at June 30, 2018 345 $ 18.74 2.4
Restricted Stock Units
Share-Based Payments
Summary of the activity for restricted stock awards/units	Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Weighted Average Remaining Vesting Term (in Years) Unvested at September 30, 2017 — $ — — Granted 74 17.34 Vested — — Forfeited (7 ) 17.42 Unvested at June 30, 2018 67 $ 17.34 0.2

Derivative Instruments and He27

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
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 (in thousands): Asset Derivatives Liability Derivatives Classification June 30, 2018 September 30, 2017 Classification June 30, 2018 September 30, 2017 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 7,734 $ 5,178 N/A $ — $ — Derivatives not designated as hedging instruments: Foreign exchange contracts Other current assets 183 779 Accrued liabilities — 207 $ 7,917 $ 5,957 $ — $ 207

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Difference Between US Federal Statutory Income Tax Rate and Effective Income Tax Rate	The difference between our U.S. federal statutory income tax rate and our effective income tax rate is summarized below: Three Months Ended June 30, 2018 Nine Months Ended June 30, 2018 U.S. federal statutory income tax rate 24.5 % 24.5 % State income taxes, net of federal tax benefit 2.9 3.1 Effect of foreign operations 1.0 1.0 Deferred tax revaluation, including adoption of income tax method changes (3.5) (14.6) Deemed repatriation tax — 4.6 Other, net 0.2 0.2 Effective tax rate 25.1 % 18.8 %

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three and nine months ended June 30, 2018 and 2017 is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net sales: Sally Beauty Supply ("SBS") $ 591,583 $ 594,880 $ 1,757,272 $ 1,760,732 Beauty Systems Group ("BSG") 404,700 403,163 1,209,296 1,203,390 Total $ 996,283 $ 998,043 $ 2,966,568 $ 2,964,122 Earnings before provision for income taxes: Segment operating earnings: SBS $ 94,912 $ 104,880 $ 271,834 $ 294,245 BSG 62,039 67,327 186,553 193,630 Segment operating earnings 156,951 172,207 458,387 487,875 Unallocated expenses (42,179 ) (36,815 ) (110,411 ) (106,777 ) Restructuring charges (12,544 ) (5,054 ) (24,513 ) (14,265 ) Consolidated operating earnings 102,228 130,338 323,463 366,833 Interest expense (24,501 ) (26,969 ) (73,779 ) (80,616 ) Earnings before provision for income taxes $ 77,727 $ 103,369 $ 249,684 $ 286,217

Parent, Issuers, Guarantor an30

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements (Tables)	9 Months Ended
	Jun. 30, 2018
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet June 30, 2018 (In thousands) Parent Sally Holdings and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 27,386 $ 49,459 $ — $ 76,855 Trade and other accounts receivable, net — — 59,773 34,812 — 94,585 Due from affiliates — — 2,542,180 — (2,542,180 ) — Inventory — — 720,360 230,618 — 950,978 Other current assets 2,755 267 24,741 14,326 — 42,089 Property and equipment, net 9 — 221,685 74,920 — 296,614 Investment in subsidiaries 1,309,860 3,968,488 371,610 — (5,649,958 ) — Goodwill and other intangible assets, net — — 461,468 150,381 — 611,849 Other assets 1,050 10,683 (7,850 ) 18,859 — 22,742 Total assets $ 1,313,674 $ 3,979,448 $ 4,421,353 $ 573,375 $ (8,192,138 ) $ 2,095,712 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 85 $ — $ 242,602 $ 67,801 $ — $ 310,488 Due to affiliates 1,627,792 823,046 — 91,342 (2,542,180 ) — Accrued liabilities 256 6,188 126,664 33,397 — 166,505 Income taxes payable 1,578 1,850 — (280 ) — 3,148 Long-term debt — 1,837,416 2 888 — 1,838,306 Other liabilities 10,371 — 19,347 4,056 — 33,774 Deferred income tax liabilities, net (199 ) 1,088 64,250 4,561 — 69,700 Total liabilities 1,639,883 2,669,588 452,865 201,765 (2,542,180 ) 2,421,921 Total stockholders’ (deficit) equity (326,209 ) 1,309,860 3,968,488 371,610 (5,649,958 ) (326,209 ) Total liabilities and stockholders’ (deficit) equity $ 1,313,674 $ 3,979,448 $ 4,421,353 $ 573,375 $ (8,192,138 ) $ 2,095,712 Condensed Consolidating Balance Sheet September 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Assets Cash and cash equivalents $ — $ 10 $ 22,090 $ 41,659 $ — $ 63,759 Trade and other accounts receivable, net 200 — 59,992 32,049 — 92,241 Due from affiliates — — 2,289,371 — (2,289,371 ) — Inventory — — 709,890 220,965 — 930,855 Other current assets 11,763 813 26,144 16,503 — 55,223 Property and equipment, net 12 — 230,069 83,636 — 313,717 Investment in subsidiaries 1,110,891 3,717,999 386,681 — (5,215,571 ) — Goodwill and other intangible assets, net — — 468,118 149,978 — 618,096 Other assets 1,538 8,116 (7,837 ) 23,299 — 25,116 Total assets $ 1,124,404 $ 3,726,938 $ 4,184,518 $ 568,089 $ (7,504,942 ) $ 2,099,007 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 251 $ 4 $ 243,818 $ 63,679 $ — $ 307,752 Due to affiliates 1,487,484 727,856 — 74,031 (2,289,371 ) — Accrued liabilities 285 20,108 113,628 32,506 — 166,527 Income taxes payable — 1,624 — 609 — 2,233 Long-term debt — 1,866,455 1 1,479 — 1,867,935 Other liabilities — — 16,008 4,132 — 20,140 Deferred income tax liabilities, net — — 93,064 4,972 — 98,036 Total liabilities 1,488,020 2,616,047 466,519 181,408 (2,289,371 ) 2,462,623 Total stockholders’ (deficit) equity (363,616 ) 1,110,891 3,717,999 386,681 (5,215,571 ) (363,616 ) Total liabilities and stockholders’ (deficit) equity $ 1,124,404 $ 3,726,938 $ 4,184,518 $ 568,089 $ (7,504,942 ) $ 2,099,007
Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income	Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 798,185 $ 198,098 $ — $ 996,283 Related party sales — — 639 — (639 ) — Cost of products sold and distribution expenses — — 399,482 104,070 (639 ) 502,913 Gross profit — — 399,342 94,028 — 493,370 Selling, general and administrative expenses 2,777 367 292,178 83,276 — 378,598 Restructuring charges — — 12,544 — — 12,544 Operating earnings (loss) (2,777 ) (367 ) 94,620 10,752 — 102,228 Interest expense (income) — 24,510 2 (11 ) — 24,501 Earnings (loss) before provision for income taxes (2,777 ) (24,877 ) 94,618 10,763 — 77,727 Provision (benefit) for income taxes (804 ) (7,206 ) 23,823 3,688 — 19,501 Equity in earnings of subsidiaries, net of tax 60,199 77,870 7,075 — (145,144 ) — Net earnings 58,226 60,199 77,870 7,075 (145,144 ) 58,226 Other comprehensive income (loss), net of tax — 308 — (22,168 ) — (21,860 ) Total comprehensive income (loss) $ 58,226 $ 60,507 $ 77,870 $ (15,093 ) $ (145,144 ) $ 36,366 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended June 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 814,423 $ 183,620 $ — $ 998,043 Related party sales — — 648 (648 ) — Cost of products sold and distribution expenses — — 398,707 97,345 (648 ) 495,404 Gross profit — — 416,364 86,275 — 502,639 Selling, general and administrative expenses 2,726 81 285,433 79,007 — 367,247 Restructuring charges — — 5,054 — — 5,054 Operating earnings (loss) (2,726 ) (81 ) 125,877 7,268 — 130,338 Interest expense (income) — 26,952 (1 ) 18 — 26,969 Earnings (loss) before provision for income taxes (2,726 ) (27,033 ) 125,878 7,250 — 103,369 Provision (benefit) for income taxes (1,058 ) (10,500 ) 44,929 3,459 36,830 Equity in earnings of subsidiaries, net of tax 68,207 84,740 3,791 — (156,738 ) — Net earnings 66,539 68,207 84,740 3,791 (156,738 ) 66,539 Other comprehensive income, net of tax — — — 17,686 17,686 Total comprehensive income $ 66,539 $ 68,207 $ 84,740 $ 21,477 $ (156,738 ) $ 84,225 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,381,460 $ 585,108 $ — $ 2,966,568 Related party sales — — 1,716 — (1,716 ) — Cost of products sold and distribution expenses — — 1,194,183 307,780 (1,716 ) 1,500,247 Gross profit — — 1,188,993 277,328 — 1,466,321 Selling, general and administrative expenses 8,242 1,148 856,080 252,875 — 1,118,345 Restructuring charges — — 24,513 — — 24,513 Operating earnings (loss) (8,242 ) (1,148 ) 308,400 24,453 — 323,463 Interest expense (income) — 73,817 (1 ) (37 ) — 73,779 Earnings (loss) before provision for income taxes (8,242 ) (74,965 ) 308,401 24,490 — 249,684 Provision (benefit) for income taxes (1,883 ) (21,630 ) 46,666 23,670 — 46,823 Equity in earnings of subsidiaries, net of tax 209,220 262,555 820 — (472,595 ) — Net earnings 202,861 209,220 262,555 820 (472,595 ) 202,861 Other comprehensive income (loss), net of tax — 1,815 — (11,986 ) — (10,171 ) Total comprehensive income (loss) $ 202,861 $ 211,035 $ 262,555 $ (11,166 ) $ (472,595 ) $ 192,690 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,429,104 $ 535,018 $ — $ 2,964,122 Related party sales — — 1,991 (1,991 ) — Cost of products sold and distribution expenses — — 1,201,427 282,233 (1,991 ) 1,481,669 Gross profit — — 1,229,668 252,785 — 1,482,453 Selling, general and administrative expenses 8,098 412 859,791 233,054 — 1,101,355 Restructuring charges — — 14,265 — — 14,265 Operating earnings (loss) (8,098 ) (412 ) 355,612 19,731 — 366,833 Interest expense (income) — 80,560 (1 ) 57 — 80,616 Earnings (loss) before provision for income taxes (8,098 ) (80,972 ) 355,613 19,674 — 286,217 Provision (benefit) for income taxes (3,145 ) (31,451 ) 132,727 8,729 106,860 Equity in earnings of subsidiaries, net of tax 184,310 233,831 10,945 — (429,086 ) — Net earnings 179,357 184,310 233,831 10,945 (429,086 ) 179,357 Other comprehensive income, net of tax — — — 7,044 — 7,044 Total comprehensive income $ 179,357 $ 184,310 $ 233,831 $ 17,989 $ (429,086 ) $ 186,401
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 23,213 $ (62,729 ) $ 309,242 $ 12,204 $ — $ 281,930 Cash Flows from Investing Activities: Payments for property and equipment, net — — (51,138 ) (11,033 ) — (62,171 ) Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (252,809 ) — 252,809 — Net cash used by investing activities — — (303,947 ) (20,208 ) 252,809 (71,346 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 369,314 5 — — 369,319 Repayments of long-term debt — (400,624 ) (4 ) (594 ) — (401,222 ) Debt issuance costs — (1,151 ) — — — (1,151 ) Repurchases of common stock (164,838 ) — — — — (164,838 ) Proceeds from exercises of stock options 1,317 — — — — 1,317 Due to affiliates 140,308 95,190 — 17,311 (252,809 ) — Net cash (used) provided by financing activities (23,213 ) 62,729 1 16,717 (252,809 ) (196,575 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (913 ) — (913 ) Net increase in cash and cash equivalents — — 5,296 7,800 — 13,096 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 27,386 $ 49,459 $ — $ 76,855 Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 11,920 $ (71,305 ) $ 275,021 $ 7,211 $ — $ 222,847 Cash Flows from Investing Activities: Payments for property and equipment, net — — (50,099 ) (16,430 ) — (66,529 ) Due from affiliates — — (231,591 ) — 231,591 — Net cash used by investing activities — — (281,690 ) (16,430 ) 231,591 (66,529 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 296,500 — — — 296,500 Repayments of long-term debt — (215,000 ) (15 ) (504 ) — (215,519 ) Repurchases of common stock (286,995 ) — — — (286,995 ) Proceeds from exercises of stock options 16,941 — — — 16,941 Due to affiliates 258,134 (38,557 ) — 12,014 (231,591 ) — Net cash (used) provided by financing activities (11,920 ) 42,943 (15 ) 11,510 (231,591 ) (189,073 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 233 — 233 Net increase (decrease) in cash and cash equivalents — (28,362 ) (6,684 ) 2,524 — (32,522 ) Cash and cash equivalents, beginning of period — 28,372 22,368 35,882 — 86,622 Cash and cash equivalents, end of period $ — $ 10 $ 15,684 $ 38,406 $ — $ 54,100

Restructuring Plans (Tables)

Restructuring Plans (Tables)	9 Months Ended
	Jun. 30, 2018
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 sheets, is as follows (in thousands): Restructuring Activity Liability at September 30, 2017 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at June 30, 2018 Workforce reductions $ 1,860 $ — $ 1,346 $ 325 $ 189 Facility closures 1,747 — 1,060 194 493 Other 235 — 235 — — Total $ 3,842 $ — $ 2,641 $ 519 $ 682
2018 Restructuring Plan
Schedule of restructuring plan	The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities in our consolidated balance sheets, is as follows (in thousands): Restructuring Activity Liability at September 30, 2017 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at June 30, 2018 Workforce reductions $ — $ 13,784 $ 11,955 $ — $ 1,829 Consulting — 6,430 4,889 — 1,541 Other — 4,299 3,824 — 475 Total $ — $ 24,513 $ 20,668 $ — $ 3,845

Accounting Changes and Recent32

Accounting Changes and Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Net decrease in noncurrent deferred income tax liabilities	$ (69,700)	$ (98,036)
ASU 2015-17
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Decrease in current deferred income tax assets		(28,400)
Net decrease in noncurrent deferred income tax liabilities		(22,100)
ASU 2015-17 | Other Assets
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Net increase in noncurrent deferred income tax assets		4,300
ASU 2015-17 | Accrued Liabilities
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Decrease in current deferred income tax liabilities		$ (2,000)
ASU 16-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Estimated amount of Right of use asset	600,000
Lease liability	$ 600,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair value measurement on recurring basis - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Assets
Total assets	$ 7,917	$ 5,957
Level 2
Assets
Foreign exchange contracts	183	779
Interest rate caps	$ 7,734	5,178
Liabilities
Foreign exchange contracts		$ 207

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Other Fair Value Disclosures (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Carrying Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 1,860,265	$ 1,891,480
Carrying Value | Senior Notes | Level 1
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	950,000	950,000
Carrying Value | Other Long-Term Debt | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	910,265	941,480
Fair Value
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	1,784,039	1,919,930
Fair Value | Senior Notes | Level 1
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	889,115	973,750
Fair Value | Other Long-Term Debt | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 894,924	$ 946,180

Accumulated Stockholders' Def35

Accumulated Stockholders' Deficit - Share Repurchase Program (Details) - USD ($) shares in Millions	1 Months Ended	9 Months Ended
	Aug. 31, 2017	Jun. 30, 2018	Jun. 30, 2017
2017 Share Repurchase program
Share Repurchase Program
Amount of shares authorized to be repurchased	$ 1,000,000,000
Term of share repurchase program	4 years
Common stock shares repurchased and retired (in shares)		9.9
Cost of repurchase and retirement of common stock		$ 164,600,000
2014 Share Repurchase Program
Share Repurchase Program
Common stock shares repurchased and retired (in shares)			13.1
Cost of repurchase and retirement of common stock			$ 286,500,000

Accumulated stock holders' Defi

Accumulated stock holders' Deficit - Change in AOCL (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2018USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss, Beginning Balance	$ (363,616)
Accumulated other comprehensive loss, Ending Balance	(326,209)
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss, Beginning Balance	(1,084)
Other comprehensive (loss) income before reclassification, net of tax	1,815
Accumulated other comprehensive loss, Ending Balance	731
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss, Beginning Balance	(80,752)
Other comprehensive (loss) income before reclassification, net of tax	(11,986)
Accumulated other comprehensive loss, Ending Balance	(92,738)
AOCI attributable to parent
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss, Beginning Balance	(81,836)
Other comprehensive (loss) income before reclassification, net of tax	(10,171)
Accumulated other comprehensive loss, Ending Balance	$ (92,007)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share Reconciliation:
Net earnings	$ 58,226	$ 66,539	$ 202,861	$ 179,357
Weighted average basic shares	120,901	135,450	124,331	139,888
Dilutive securities:
Stock option and stock award programs (in shares)	772	709	780	746
Weighted average diluted shares	121,673	136,159	125,111	140,634
Earnings per share:
Basic	$ 0.48	$ 0.49	$ 1.63	$ 1.28
Diluted	$ 0.48	$ 0.49	$ 1.62	$ 1.28
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)	5,200	4,800	5,200	4,800

Share-Based Payments - Performa

Share-Based Payments - Performance-Based Awards (Details) - Performance Unit Awards - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Share-Based Payments
Payout percentage (in percentage)	100.00%
Performance Unit Awards (in shares)
Unvested at the beginning of the period (in shares)	197
Granted (in shares)	215
Forfeited (in shares)	(61)
Unvested at the end of the period (in shares)	351	197
Performance Unit Awards (in dollars per share)
Unvested at the beginning of the period (in dollars per share)	$ 24.50
Granted (in dollars per share)	17.42
Forfeited (in dollars per share)	20.60
Unvested at the end of the period (in dollars per share)	$ 20.86	$ 24.50
Performance Unit Awards (in years)
Weighted Average Remaining Vesting Term (in Years)	1 year 6 months	1 year 6 months

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	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Stock Options, Number of Outstanding Options
Outstanding at the beginning of the period (in shares)	5,211
Granted (in shares)	1,220
Exercised (in shares)	(144)
Forfeited or expired (in shares)	(819)
Outstanding at the end of the period (in shares)	5,468	5,211
Exercisable at the end of the period (in shares)	3,202
Stock Options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 24.12
Granted (in dollars per share)	17.23
Exercised (in dollars per share)	9.14
Forfeited or expired (in dollars per share)	23.78
Outstanding at the end of the period (in dollars per share)	23.03	$ 24.12
Exercisable at the end of the period (in dollars per share)	$ 24.06
Stock Options, Weighted Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	5 years 8 months 12 days	5 years 7 months 6 days
Exercisable at June 30, 2018	4 years
Stock Options, Aggregate Intrinsic Value
Outstanding balance at period end (in dollars)	$ 1,487	$ 3,867
Exercisable at the end of the period (in dollars)	$ 1,395

Share-Based Payments - Restrict

Share-Based Payments - Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Restricted stock (in shares)
Unvested at the beginning of the period (in shares)	125,000
Granted (in shares)	326,000
Vested (in shares)	(50,000)
Forfeited (in shares)	(56,000)
Unvested at the end of the period (in shares)	345,000	125,000
Restricted Stock (in dollars per share)
Unvested at the beginning of the period (in dollars per share)	$ 26
Granted (in dollars per share)	16.98
Vested (in dollar per share)	24.44
Forfeited (in dollars per share)	19.79
Unvested at the end of the period (in dollars per share)	$ 18.74	$ 26
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	2 years 4 months 24 days	1 year 3 months 18 days

Share-Based Payments - Restri41

Share-Based Payments - Restricted Stock Units (Details) - Restricted Stock Units - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017
Restricted stock (in shares)
Granted (in shares)	74,000
Forfeited (in shares)	(7,000)
Unvested at the end of the period (in shares)	67,000
Restricted Stock (in dollars per share)
Granted (in dollars per share)	$ 17.34
Forfeited (in dollars per share)	17.42
Unvested at the end of the period (in dollars per share)	$ 17.34
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	2 months 12 days	0 years

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Details)	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2017USD ($)store	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Sep. 30, 2017USD ($)
Goodwill [Line Items]
Goodwill related to acquisition		$ 536,111,000		$ 536,111,000		$ 537,791,000
Impairment losses in connection with the goodwill				0
Impairment losses in connection with the intangible assets				0
Amortization expense related to other intangible assets		3,200,000	$ 3,200,000	$ 8,800,000	$ 9,900,000
Chalut | Canada
Goodwill [Line Items]
Number of professional-only beauty supply stores | store	21
Cost of acquisition	$ 8,800,000
Goodwill related to acquisition	$ 5,500,000
Amount recognized a decrease in goodwill with a corresponding increase in intangible assets		$ 4,700,000

Short-term Borrowings and Lon43

Short-term Borrowings and Long-term Debt - ABL Facility and Canadian sub-facility (Details) - USD ($) $ in Thousands	Mar. 27, 2018	Jun. 30, 2018
Debt Instruments
Revolving credit facility		$ 417,800
Loss on extinguishment of debt		$ (876)
Term Loan B
Debt Instruments
Interest rate spread on variable-rate tranche	$ 548,600
Basis points	0.25%
Variable Interest rate	2.25%
Capitalized financing costs	$ 1,000
Loss on extinguishment of debt	$ (900)

Derivative Instruments and He44

Derivative Instruments and Hedging Activities - (Details)	9 Months Ended
	Jun. 30, 2018USD ($)instrument	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0
Foreign exchange contracts
Derivative Instruments
Notional Amount	$ 50,200,000
Foreign exchange contracts | Maximum
Derivative Instruments
Derivative instruments, expiration date	Sep. 30, 2018
Variable-rate tranche | Interest rate caps | Sally Holdings, LLC
Derivative Instruments
Notional Amount		$ 550,000,000
Derivative instruments, expiration date	Jun. 30, 2023
Designated Cash Flow Hedges
Number of interest rate caps | derivative		2

Derivative Instruments and He45

Derivative Instruments and Hedging Activities - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017
Derivatives not designated as hedging instruments:
Asset Derivatives	$ 7,917	$ 5,957
Credit-risk-related Contingent Features
Liability Derivatives		207
Other Assets
Derivatives designated as hedging instruments:
Interest rate caps	7,734	5,178
Other current assets
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$ 183	779
Accrued Liabilities
Credit-risk-related Contingent Features
Foreign exchange contracts		$ 207

Income Taxes (Details)

Income Taxes (Details) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)
Income Tax Disclosure [Abstract]
Provisional income tax benefit recognized related to revaluation of deferred income tax assets and liabilities		$ 36.4
Provisional income tax charge recognized for federal and state income taxes		11.4
Undistributed earnings of foreign operations	$ 10.4	$ 10.4
Deferred income tax benefit	$ 2.7
Federal statutory tax rate for fiscal year September 30, 2018	24.50%	24.50%
Federal statutory tax rate thereafter		21.00%

Income Taxes - Schedule of Diff

Income Taxes - Schedule of Difference Between US Federal Statutory Income Tax Rate and Effective Income Tax Rate (Details)	3 Months Ended	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	24.50%	24.50%
State income taxes, net of federal tax benefit	2.90%	3.10%
Effect of foreign operations	1.00%	1.00%
Deferred tax revaluation, including adoption of income tax method changes	(3.50%)	(14.60%)
Deemed repatriation tax		4.60%
Other, net	0.20%	0.20%
Effective tax rate	25.10%	18.80%

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net sales:
Total net sales	$ 996,283	$ 998,043	$ 2,966,568	$ 2,964,122
Segment operating earnings:
Segment operating earnings	102,228	130,338	323,463	366,833
Restructuring charges	(12,544)	(5,054)	(24,513)	(14,265)
Interest expense	(24,501)	(26,969)	(73,779)	(80,616)
Earnings before provision for income taxes	77,727	103,369	249,684	286,217
Operating segments
Segment operating earnings:
Segment operating earnings	156,951	172,207	458,387	487,875
Corporate
Segment operating earnings:
Unallocated expenses	(42,179)	(36,815)	(110,411)	(106,777)
Restructuring charges			(11,300)
Sally Beauty Supply ("SBS")
Net sales:
Total net sales	591,583	594,880	1,757,272	1,760,732
Segment operating earnings:
Restructuring charges			(11,000)
Sally Beauty Supply ("SBS") | Operating segments
Segment operating earnings:
Segment operating earnings	94,912	104,880	271,834	294,245
Beauty Systems Group ("BSG")
Net sales:
Total net sales	404,700	403,163	1,209,296	1,203,390
Segment operating earnings:
Restructuring charges			(2,200)
Beauty Systems Group ("BSG") | Operating segments
Segment operating earnings:
Segment operating earnings	$ 62,039	$ 67,327	$ 186,553	$ 193,630

Parent, Issuers, Guarantor an49

Parent, Issuers, Guarantor and Non Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2016
Assets
Cash and cash equivalents	$ 76,855	$ 63,759	$ 54,100	$ 86,622
Trade and other accounts receivable, net	94,585	92,241
Inventory	950,978	930,855
Other current assets	42,089	55,223
Property and equipment, net	296,614	313,717
Goodwill and other intangible assets, net	611,849	618,096
Other assets	22,742	25,116
Total assets	2,095,712	2,099,007
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	310,488	307,752
Accrued liabilities	166,505	166,527
Income taxes payable	3,148	2,233
Long-term debt	1,838,306	1,867,935
Other liabilities	33,774	20,140
Deferred income tax liabilities, net	69,700	98,036
Total liabilities	2,421,921	2,462,623
Total stockholders’ (deficit) equity	(326,209)	(363,616)
Total liabilities and stockholders’ deficit	2,095,712	2,099,007
Parent
Assets
Trade and other accounts receivable, net		200
Other current assets	2,755	11,763
Property and equipment, net	9	12
Investment in subsidiaries	1,309,860	1,110,891
Other assets	1,050	1,538
Total assets	1,313,674	1,124,404
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	85	251
Due to affiliates	1,627,792	1,487,484
Accrued liabilities	256	285
Income taxes payable	1,578
Other liabilities	10,371
Deferred income tax liabilities, net	(199)
Total liabilities	1,639,883	1,488,020
Total stockholders’ (deficit) equity	(326,209)	(363,616)
Total liabilities and stockholders’ deficit	1,313,674	1,124,404
Sally Holdings And Sally Capital
Assets
Cash and cash equivalents	10	10	10	28,372
Other current assets	267	813
Investment in subsidiaries	3,968,488	3,717,999
Other assets	10,683	8,116
Total assets	3,979,448	3,726,938
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable		4
Due to affiliates	823,046	727,856
Accrued liabilities	6,188	20,108
Income taxes payable	1,850	1,624
Long-term debt	1,837,416	1,866,455
Deferred income tax liabilities, net	1,088
Total liabilities	2,669,588	2,616,047
Total stockholders’ (deficit) equity	1,309,860	1,110,891
Total liabilities and stockholders’ deficit	3,979,448	3,726,938
Guarantor Subsidiaries
Assets
Cash and cash equivalents	27,386	22,090	15,684	22,368
Trade and other accounts receivable, net	59,773	59,992
Due from affiliates	2,542,180	2,289,371
Inventory	720,360	709,890
Other current assets	24,741	26,144
Property and equipment, net	221,685	230,069
Investment in subsidiaries	371,610	386,681
Goodwill and other intangible assets, net	461,468	468,118
Other assets	(7,850)	(7,837)
Total assets	4,421,353	4,184,518
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	242,602	243,818
Accrued liabilities	126,664	113,628
Long-term debt	2	1
Other liabilities	19,347	16,008
Deferred income tax liabilities, net	64,250	93,064
Total liabilities	452,865	466,519
Total stockholders’ (deficit) equity	3,968,488	3,717,999
Total liabilities and stockholders’ deficit	4,421,353	4,184,518
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	49,459	41,659	$ 38,406	$ 35,882
Trade and other accounts receivable, net	34,812	32,049
Inventory	230,618	220,965
Other current assets	14,326	16,503
Property and equipment, net	74,920	83,636
Goodwill and other intangible assets, net	150,381	149,978
Other assets	18,859	23,299
Total assets	573,375	568,089
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	67,801	63,679
Due to affiliates	91,342	74,031
Accrued liabilities	33,397	32,506
Income taxes payable	(280)	609
Long-term debt	888	1,479
Other liabilities	4,056	4,132
Deferred income tax liabilities, net	4,561	4,972
Total liabilities	201,765	181,408
Total stockholders’ (deficit) equity	371,610	386,681
Total liabilities and stockholders’ deficit	573,375	568,089
Consolidating Eliminations
Assets
Due from affiliates	(2,542,180)	(2,289,371)
Investment in subsidiaries	(5,649,958)	(5,215,571)
Total assets	(8,192,138)	(7,504,942)
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	(2,542,180)	(2,289,371)
Total liabilities	(2,542,180)	(2,289,371)
Total stockholders’ (deficit) equity	(5,649,958)	(5,215,571)
Total liabilities and stockholders’ deficit	$ (8,192,138)	$ (7,504,942)

Parent, Issuers, Guarantor an50

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		9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Income Statements Captions [Line Items]
Net sales	$ 996,283	$ 998,043	$ 2,966,568	$ 2,964,122
Cost of products sold and distribution expenses	502,913	495,404	1,500,247	1,481,669
Gross profit	493,370	502,639	1,466,321	1,482,453
Selling, general and administrative expenses	378,598	367,247	1,118,345	1,101,355
Restructuring charges	12,544	5,054	24,513	14,265
Operating earnings	102,228	130,338	323,463	366,833
Interest expense (income)	24,501	26,969	73,779	80,616
Earnings before provision for income taxes	77,727	103,369	249,684	286,217
Provision (benefit) for income taxes	19,501	36,830	46,823	106,860
Net earnings	58,226	66,539	202,861	179,357
Other comprehensive income (loss), net of tax	(21,860)	17,686	(10,171)	7,044
Total comprehensive income	36,366	84,225	192,690	186,401
Parent
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	2,777	2,726	8,242	8,098
Operating earnings	(2,777)	(2,726)	(8,242)	(8,098)
Earnings before provision for income taxes	(2,777)	(2,726)	(8,242)	(8,098)
Provision (benefit) for income taxes	(804)	(1,058)	(1,883)	(3,145)
Equity in earnings of subsidiaries, net of tax	60,199	68,207	209,220	184,310
Net earnings	58,226	66,539	202,861	179,357
Total comprehensive income	58,226	66,539	202,861	179,357
Sally Holdings And Sally Capital
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	367	81	1,148	412
Operating earnings	(367)	(81)	(1,148)	(412)
Interest expense (income)	24,510	26,952	73,817	80,560
Earnings before provision for income taxes	(24,877)	(27,033)	(74,965)	(80,972)
Provision (benefit) for income taxes	(7,206)	(10,500)	(21,630)	(31,451)
Equity in earnings of subsidiaries, net of tax	77,870	84,740	262,555	233,831
Net earnings	60,199	68,207	209,220	184,310
Other comprehensive income (loss), net of tax	308		1,815
Total comprehensive income	60,507	68,207	211,035	184,310
Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	798,185	814,423	2,381,460	2,429,104
Related party sales	639	648	1,716	1,991
Cost of products sold and distribution expenses	399,482	398,707	1,194,183	1,201,427
Gross profit	399,342	416,364	1,188,993	1,229,668
Selling, general and administrative expenses	292,178	285,433	856,080	859,791
Restructuring charges	12,544	5,054	24,513	14,265
Operating earnings	94,620	125,877	308,400	355,612
Interest expense (income)	2	(1)	(1)	(1)
Earnings before provision for income taxes	94,618	125,878	308,401	355,613
Provision (benefit) for income taxes	23,823	44,929	46,666	132,727
Equity in earnings of subsidiaries, net of tax	7,075	3,791	820	10,945
Net earnings	77,870	84,740	262,555	233,831
Total comprehensive income	77,870	84,740	262,555	233,831
Non-Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	198,098	183,620	585,108	535,018
Cost of products sold and distribution expenses	104,070	97,345	307,780	282,233
Gross profit	94,028	86,275	277,328	252,785
Selling, general and administrative expenses	83,276	79,007	252,875	233,054
Operating earnings	10,752	7,268	24,453	19,731
Interest expense (income)	(11)	18	(37)	57
Earnings before provision for income taxes	10,763	7,250	24,490	19,674
Provision (benefit) for income taxes	3,688	3,459	23,670	8,729
Net earnings	7,075	3,791	820	10,945
Other comprehensive income (loss), net of tax	(22,168)	17,686	(11,986)	7,044
Total comprehensive income	(15,093)	21,477	(11,166)	17,989
Consolidating Eliminations
Condensed Income Statements Captions [Line Items]
Related party sales	(639)	(648)	(1,716)	(1,991)
Cost of products sold and distribution expenses	(639)	(648)	(1,716)	(1,991)
Equity in earnings of subsidiaries, net of tax	(145,144)	(156,738)	(472,595)	(429,086)
Net earnings	(145,144)	(156,738)	(472,595)	(429,086)
Total comprehensive income	$ (145,144)	$ (156,738)	$ (472,595)	$ (429,086)

Parent, Issuers, Guarantor an51

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidated Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	$ 281,930	$ 222,847
Cash Flows from Investing Activities:
Payments for property and equipment, net	(62,171)	(66,529)
Acquisitions, net of cash acquired	(9,175)
Net cash used by investing activities	(71,346)	(66,529)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	369,319	296,500
Repayments of long-term debt	(401,222)	(215,519)
Debt issuance costs	(1,151)
Repurchases of common stock	(164,838)	(286,995)
Proceeds from exercises of stock options	1,317	16,941
Net cash used by financing activities	(196,575)	(189,073)
Effect of foreign exchange rate changes on cash and cash equivalents	(913)	233
Net increase (decrease) in cash and cash equivalents	13,096	(32,522)
Cash and cash equivalents, beginning of period	63,759	86,622
Cash and cash equivalents, end of period	76,855	54,100
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	23,213	11,920
Cash Flows from Financing Activities:
Repurchases of common stock	(164,838)	(286,995)
Proceeds from exercises of stock options	1,317	16,941
Due to affiliates	140,308	258,134
Net cash used by financing activities	(23,213)	(11,920)
Sally Holdings And Sally Capital
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	(62,729)	(71,305)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	369,314	296,500
Repayments of long-term debt	(400,624)	(215,000)
Debt issuance costs	(1,151)
Due to affiliates	95,190	(38,557)
Net cash used by financing activities	62,729	42,943
Net increase (decrease) in cash and cash equivalents		(28,362)
Cash and cash equivalents, beginning of period	10	28,372
Cash and cash equivalents, end of period	10	10
Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	309,242	275,021
Cash Flows from Investing Activities:
Payments for property and equipment, net	(51,138)	(50,099)
Due from affiliates	(252,809)	(231,591)
Net cash used by investing activities	(303,947)	(281,690)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	5
Repayments of long-term debt	(4)	(15)
Net cash used by financing activities	1	(15)
Net increase (decrease) in cash and cash equivalents	5,296	(6,684)
Cash and cash equivalents, beginning of period	22,090	22,368
Cash and cash equivalents, end of period	27,386	15,684
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	12,204	7,211
Cash Flows from Investing Activities:
Payments for property and equipment, net	(11,033)	(16,430)
Acquisitions, net of cash acquired	(9,175)
Net cash used by investing activities	(20,208)	(16,430)
Cash Flows from Financing Activities:
Repayments of long-term debt	(594)	(504)
Due to affiliates	17,311	12,014
Net cash used by financing activities	16,717	11,510
Effect of foreign exchange rate changes on cash and cash equivalents	(913)	233
Net increase (decrease) in cash and cash equivalents	7,800	2,524
Cash and cash equivalents, beginning of period	41,659	35,882
Cash and cash equivalents, end of period	49,459	38,406
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	252,809	231,591
Net cash used by investing activities	252,809	231,591
Cash Flows from Financing Activities:
Due to affiliates	(252,809)	(231,591)
Net cash used by financing activities	$ (252,809)	$ (231,591)

Restructuring Plans (Details)

Restructuring Plans (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2017Office	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Apr. 30, 2018USD ($)
Changes in restructuring reserve
Restructuring charges		$ 12,544	$ 5,054	$ 24,513	$ 14,265
Corporate
Changes in restructuring reserve
Restructuring charges				11,300
Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges				11,000
Beauty Systems Group
Changes in restructuring reserve
Restructuring charges				2,200
2017 Restructuring Plan
Restructuring Plan
Number of administrative offices closed | Office	4
Changes in restructuring reserve
Restructuring reserve, beginning balance				3,842
Expenses Paid or Otherwise Settled				2,641
Adjustments				519
Restructuring reserve, ending balance		682		682
2017 Restructuring Plan | Workforce reductions
Changes in restructuring reserve
Restructuring reserve, beginning balance				1,860
Expenses Paid or Otherwise Settled				1,346
Adjustments				325
Restructuring reserve, ending balance		189		189
2017 Restructuring Plan | Facility closures
Changes in restructuring reserve
Restructuring reserve, beginning balance				1,747
Expenses Paid or Otherwise Settled				1,060
Adjustments				194
Restructuring reserve, ending balance		493		493
2017 Restructuring Plan | Other
Changes in restructuring reserve
Restructuring reserve, beginning balance				235
Expenses Paid or Otherwise Settled				235
2018 Restructuring Plan
Changes in restructuring reserve
Restructuring charges				24,513
Expenses Paid or Otherwise Settled				20,668
Restructuring reserve, ending balance		3,845		3,845
2018 Restructuring Plan | Minimum
Changes in restructuring reserve
Total estimated aggregate charges						$ 28,000
2018 Restructuring Plan | Maximum
Changes in restructuring reserve
Total estimated aggregate charges						$ 30,000
2018 Restructuring Plan | Workforce reductions
Changes in restructuring reserve
Restructuring charges				13,784
Expenses Paid or Otherwise Settled				11,955
Restructuring reserve, ending balance		1,829		1,829
2018 Restructuring Plan | Other
Changes in restructuring reserve
Restructuring charges				4,299
Expenses Paid or Otherwise Settled				3,824
Restructuring reserve, ending balance		475		475
2018 Restructuring Plan | Consulting
Changes in restructuring reserve
Restructuring charges				6,430
Expenses Paid or Otherwise Settled				4,889
Restructuring reserve, ending balance		$ 1,541		$ 1,541

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	3 Months Ended
	Jun. 30, 2018USD ($)
Commitments And Contingencies Disclosure [Abstract]
Data security incident expenses recognized	$ 7.9