Sally Beauty (SBH) 10-Q 1 May 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2019	Apr. 26, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	Sally Beauty Holdings, Inc.
Entity Central Index Key	0001368458
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Trading Symbol	SBH
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		120,580,929
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 89,777	$ 77,295
Trade accounts receivable, net	41,976	48,417
Accounts receivable, other	49,451	42,073
Inventory	953,043	944,338
Other current assets	39,895	42,960
Total current assets	1,174,142	1,155,083
Property and equipment, net of accumulated depreciation of $636,099 at March 31, 2019 and $611,021 at September 30, 2018	297,124	308,357
Goodwill	533,566	535,925
Intangible assets, excluding goodwill, net of accumulated amortization of $137,767 at March 31, 2019 and $132,724 at September 30, 2018	68,370	72,698
Other assets	19,412	25,351
Total assets	2,092,614	2,097,414
Current liabilities:
Current maturities of long-term debt	5,503	5,501
Accounts payable	252,470	303,241
Accrued liabilities	156,490	180,287
Income taxes payable	6,280	2,144
Total current liabilities	420,743	491,173
Long-term debt	1,708,421	1,768,808
Other liabilities	25,917	30,022
Deferred income tax liabilities, net	82,608	75,967
Total liabilities	2,237,689	2,365,970
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 120,566 and 120,145 shares issued and 120,107 and 119,926 shares outstanding at March 31, 2019 and September 30, 2018, respectively	1,201	1,199
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Additional paid-in capital	7,590
Accumulated deficit	(48,312)	(179,764)
Accumulated other comprehensive loss, net of tax	(105,554)	(89,991)
Total stockholders’ deficit	(145,075)	(268,556)
Total liabilities and stockholders’ (deficit) equity	$ 2,092,614	$ 2,097,414

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 636,099	$ 611,021
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 137,767	$ 132,724
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	120,566,000	120,145,000
Common stock, shares outstanding	120,107,000	119,926,000
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		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net sales	$ 945,852	$ 975,321	$ 1,935,305	$ 1,970,286
Cost of goods sold	477,528	488,999	986,275	997,335
Gross profit	468,324	486,322	949,030	972,951
Selling, general and administrative expenses	361,626	368,461	728,614	739,748
Restructuring	(5,814)	6,759	(1,834)	11,969
Operating earnings	112,512	111,102	222,250	221,234
Interest expense	23,821	25,262	48,310	49,277
Earnings before provision for income taxes	88,691	85,840	173,940	171,957
Provision for income taxes	22,966	24,469	42,488	27,322
Net earnings	$ 65,725	$ 61,371	$ 131,452	$ 144,635
Earnings per share:
Basic	$ 0.55	$ 0.49	$ 1.10	$ 1.15
Diluted	$ 0.54	$ 0.49	$ 1.09	$ 1.14
Weighted average shares:
Basic	120,077	124,270	120,033	126,046
Diluted	120,991	125,057	120,949	126,834

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 65,725	$ 61,371	$ 131,452	$ 144,635
Other comprehensive loss:
Foreign currency translation adjustments	3,040	10,437	(10,425)	10,182
Interest rate caps, net of tax	(2,140)	2,310	(4,970)	1,507
Foreign exchange contracts, net of tax	242		(168)
Other comprehensive income (loss), net of tax	1,142	12,747	(15,563)	11,689
Total comprehensive income	$ 66,867	$ 74,118	$ 115,889	$ 156,324

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash Flows from Operating Activities:
Net earnings	$ 131,452	$ 144,635
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	53,275	54,009
Share-based compensation expense	5,871	5,850
Amortization of deferred financing costs	1,979	1,851
(Gain) loss on extinguishment of debt	(473)	876
(Gain) loss on disposal of equipment and other property	(6,548)	42
Deferred income taxes	8,530	(29,379)
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	5,950	(1,506)
Accounts receivable, other	(7,554)	(3,990)
Inventory	(14,213)	3,266
Other current assets	2,754	3,508
Other assets	(1,293)	143
Accounts payable and accrued liabilities	(69,704)	(12,175)
Income taxes payable	4,150	(762)
Other liabilities	(4,066)	13,082
Net cash provided by operating activities	110,110	179,450
Cash Flows from Investing Activities:
Payments for property and equipment	(46,398)	(38,693)
Proceeds from sale of property and equipment	12,010	14
Acquisitions, net of cash acquired	(2,848)	(9,175)
Net cash used by investing activities	(37,236)	(47,854)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	242,504	246,819
Repayments of long-term debt	(304,157)	(260,142)
Debt issuance costs		(1,151)
Payments for common stock repurchased		(114,699)
Proceeds from exercises of stock options	1,721	1,112
Net cash used by financing activities	(59,932)	(128,061)
Effect of foreign exchange rate changes on cash and cash equivalents	(460)	762
Net increase in cash and cash equivalents	12,482	4,297
Cash and cash equivalents, beginning of period	77,295	63,759
Cash and cash equivalents, end of period	89,777	68,056
Supplemental Cash Flow Information:
Interest paid	48,378	46,574
Income taxes paid	37,518	45,089
Capital expenditures incurred but not paid	$ 3,763	$ 1,426

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance at Sep. 30, 2017	$ (363,616)	$ 1,296		$ (283,076)	$ (81,836)
Balance (in shares) at Sep. 30, 2017		129,585
Increase (Decrease) in Stockholders' Equity
Net earnings	83,264			83,264
Other comprehensive income (loss)	(1,058)				(1,058)
Repurchases and cancellations of common stock	(64,612)	$ (39)	$ (3,386)	(61,187)
Repurchases and cancellations of common stock (in shares)		(3,848)
Share-based compensation	3,111		3,111
Stock issued for stock options	276	$ 1	275
Stock issued for stock options (in shares)		62
Balance at Dec. 31, 2017	(342,635)	$ 1,258		(260,999)	(82,894)
Balance (in shares) at Dec. 31, 2017		125,799
Balance at Sep. 30, 2017	(363,616)	$ 1,296		(283,076)	(81,836)
Balance (in shares) at Sep. 30, 2017		129,585
Increase (Decrease) in Stockholders' Equity
Net earnings	144,635
Other comprehensive income (loss)	11,689
Balance at Mar. 31, 2018	(315,029)	$ 1,230		(246,112)	(70,147)
Balance (in shares) at Mar. 31, 2018		123,002
Balance at Dec. 31, 2017	(342,635)	$ 1,258		(260,999)	(82,894)
Balance (in shares) at Dec. 31, 2017		125,799
Increase (Decrease) in Stockholders' Equity
Net earnings	61,371			61,371
Other comprehensive income (loss)	12,747				12,747
Repurchases and cancellations of common stock	(50,086)	$ (29)	(3,573)	(46,484)
Repurchases and cancellations of common stock (in shares)		(2,899)
Share-based compensation	2,738		2,738
Stock issued for stock options	836	$ 1	835
Stock issued for stock options (in shares)		102
Balance at Mar. 31, 2018	(315,029)	$ 1,230		(246,112)	(70,147)
Balance (in shares) at Mar. 31, 2018		123,002
Balance at Sep. 30, 2018	$ (268,556)	$ 1,199		(179,764)	(89,991)
Balance (in shares) at Sep. 30, 2018	119,926	119,926
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 65,727			65,727
Other comprehensive income (loss)	(16,705)				(16,705)
Share-based compensation	3,354		3,354
Stock issued for stock options	1,449	$ 1	1,448
Stock issued for stock options (in shares)		115
Balance at Dec. 31, 2018	(214,731)	$ 1,200	4,802	(114,037)	(106,696)
Balance (in shares) at Dec. 31, 2018		120,041
Balance at Sep. 30, 2018	$ (268,556)	$ 1,199		(179,764)	(89,991)
Balance (in shares) at Sep. 30, 2018	119,926	119,926
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 131,452
Other comprehensive income (loss)	(15,563)
Balance at Mar. 31, 2019	$ (145,075)	$ 1,201	7,590	(48,312)	(105,554)
Balance (in shares) at Mar. 31, 2019	120,107	120,107
Balance at Dec. 31, 2018	$ (214,731)	$ 1,200	4,802	(114,037)	(106,696)
Balance (in shares) at Dec. 31, 2018		120,041
Increase (Decrease) in Stockholders' Equity
Net earnings	65,725			65,725
Other comprehensive income (loss)	1,142				1,142
Share-based compensation	2,517		2,517
Stock issued for stock options	272	$ 1	271
Stock issued for stock options (in shares)		66
Balance at Mar. 31, 2019	$ (145,075)	$ 1,201	$ 7,590	$ (48,312)	$ (105,554)
Balance (in shares) at Mar. 31, 2019	120,107	120,107

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2019
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. Accordingly, 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 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 our Annual Report on Form 10-K for the fiscal year ended September 30, 2018. 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 March 31, 2019 and September 30, 2018, our consolidated results of operations and consolidated comprehensive income for the three and six months ended March 31, 2019 and 2018, and our consolidated cash flows for six months ended March 31, 2019 and 2018. Certain amounts for the prior year have been conformed to the current year’s presentation.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Mar. 31, 2019
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	6 Months Ended
	Mar. 31, 2019
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 May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In connection with the adoption of ASU No. 2014-09, we now present our sales returns allowance on a gross basis rather than a net liability basis. As such, we recognize a return asset from the right to recover merchandise from customers (included in other current assets) and a return liability from the amount to be returned to the customer (included in accrued liabilities) within our consolidated balance sheets. Additionally, we now recognize revenue for our gift cards not expected to be redeemed (“gift card breakage”) within revenue in our consolidated statements of earnings. The following tables set forth the impact of adopting this standard on our condensed consolidated balance sheets as of March 31, 2019 and our condensed consolidated statements of earnings for the three and six months ended March 31, 2019 (in thousands): Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Other current assets $ 39,895 $ 37,256 $ 2,639 Accrued liabilities $ 156,490 $ 153,851 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings For the three months ended March 31, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 945,852 $ 945,752 $ 100 Gross Profit 468,324 468,224 100 Selling, general and administrative expenses $ 361,626 $ 361,526 $ 100 For the six months ended March 31, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 1,935,305 $ 1,935,130 $ 175 Gross Profit 949,030 948,855 175 Selling, general and administrative expenses $ 728,614 $ 728,439 $ 175 See note 4, Revenue Recognition Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases

Revenue Recognition

Revenue Recognition	6 Months Ended
	Mar. 31, 2019
Revenue From Contract With Customer [Abstract]
Revenue Recognition	4. Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data. Additionally, we have assessed all revenue streams for principal versus agent considerations and have concluded we are the principal for all transactions. See Note 13, Business Segments Merchandise Revenues The majority of our revenue comes from the sale of products in our company-operated stores. These sales generally have one single performance obligation and the revenue is recognized at the point of sale. Discounts and incentives issued at the point of sale to entice a customer to a future purchase are treated as a separate performance obligation. As such, we allocate a portion of the revenue generated from the point of sale to each of the additional performance obligations separately using explicitly stated amounts or our best estimate using historical data. We also sell merchandise on our online platforms, to our franchisees and by using distributor sales consultants. These sales generally have one single performance obligation and revenue is recognized upon the shipment of the merchandise. Any shipping and handling fees charged to the customer are recognized as revenue, while any shipping and handling costs to get the merchandise shipped is recognized in cost of goods sold. We do extend credit to certain customers, primarily salon professionals, which generally have 30 day payment terms. Based on the nature of theses receivables, no significant financing component exists. Gift Cards The revenue from the sale of our gift cards is recognized at the time the gift card is used to purchase merchandise, which is generally within one year from the date of purchase. Our gift cards do not carry expiration dates or impose post-sale fees. Based on historical experience, a certain amount of our gift cards will not be redeemed, also referred to as “gift card breakage.” We recognize revenue related to gift card breakage within revenue in our consolidated statements of earnings over time proportionately to historical redemption patterns. The gift cards are issued and represent liabilities of either of our operating entities, Sally Beauty Supply LLC or Beauty Systems Group LLC, which are both limited liability companies formed in the state of Virginia. Customer Loyalty Rewards We recently launched our new Sally Beauty Rewards Loyalty Program nationwide during the first quarter of fiscal year 2019 to the U.S. and Canada, which enables customers to earn points based on their status for every dollar spent on merchandise purchased in our Sally Beauty Supply (“SBS”) stores and through our sallybeauty.com sallybeauty.com The following table shows the amount of our gift card and rewards loyalty program liabilities included in accrued liabilities within our condensed consolidated balance sheets as of March 31, 2019 and September 30, 2018 (in thousands): March 31, 2019 September 30, 2018 Gift cards $ 4,528 $ 4,144 Rewards loyalty program 7,032 1,165 Total liability $ 11,560 $ 5,309

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements Fair value on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement As of March 31, 2019 As of September 30, 2018 Assets Foreign exchange contracts Level 2 $ 580 $ — Interest rate caps Level 2 1,636 8,367 Total assets $ 2,216 $ 8,367 Liabilities Foreign exchange contracts Level 2 $ 333 $ — Other fair value disclosures As of March 31, 2019 As of September 30, 2018 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 889,946 $ 888,694 $ 950,000 $ 911,490 Other long-term debt Level 2 842,606 823,421 845,383 824,951 Total debt $ 1,732,552 $ 1,712,115 $ 1,795,383 $ 1,736,441

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Mar. 31, 2019
Stockholders Equity Note [Abstract]
Accumulated Other Comprehensive Loss	6. Accumulated Other Comprehensive Loss The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Foreign Exchange Contracts Total Balance at September 30, 2018 $ (91,356 ) $ 1,365 $ — $ (89,991 ) Other comprehensive loss before reclassification, net of tax (10,425 ) (5,014 ) (253 ) (15,692 ) Reclassification to net earnings, net of tax — 44 85 129 Balance at March 31, 2019 $ (101,781 ) $ (3,605 ) $ (168 ) $ (105,554 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings were not material.

Weighted Average Shares

Weighted Average Shares	6 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Weighted Average Shares	7. Weighted Average Shares The following table sets forth the computations of basic and diluted earnings per share (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Weighted average basic shares 120,077 124,270 120,033 126,046 Dilutive securities: Stock option and stock award programs 914 787 916 788 Weighted average diluted shares 120,991 125,057 120,949 126,834 For the three and six months ended March 31, 2019, 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 six months ended March 31, 2018, options to purchase 5.4 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	6 Months Ended
	Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Payments	8. 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, 2018 349 $ 20.88 1.3 Granted 230 17.22 Vested (23 ) 23.45 Forfeited (99 ) 21.68 Unvested at March 31, 2019 457 $ 18.74 1.8 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, 2018 5,405 $ 23.04 5.4 $ 3,161 Granted 948 18.14 Exercised (127 ) 15.42 Forfeited or expired (849 ) 25.32 Outstanding at March 31, 2019 5,377 $ 21.99 6.3 $ 2,924 Exercisable at March 31, 2019 3,444 $ 23.68 4.9 $ 1,773 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, 2018 219 $ 16.98 2.1 Granted 287 18.14 Vested (6 ) 18.29 Forfeited (31 ) 17.64 Unvested at March 31, 2019 469 $ 17.60 2.1 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, 2018 — $ — — Granted 88 18.14 Vested — — Forfeited — — Unvested at March 31, 2019 88 $ 18.14 0.5

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Mar. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets During the three months ended March 31, 2019 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 our goodwill and other intangible assets. For the three months ended March 31, 2019 and 2018, amortization expense related to other intangible assets was $2.9 million and $2.7 million, respectively, and, for the six months ended March 31, 2019 and 2018, amortization expense was $5.7 million and $5.6 million, respectively. During the six months ended March 31, 2019, we recorded approximately $1.9 million in other intangible assets related to immaterial asset acquisitions. Additionally, goodwill and other intangible assets were negatively impacted from changes in foreign currency exchange rates of approximately $2.6 million and $0.6 million, respectively.

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	6 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	10. Short-term Borrowings and Long-term Debt At March 31, 2019, we had $481.9 million available for borrowing under our five-year asset-based senior secured loan facility (the “ABL facility”), including the Canadian sub-facility. At March 31, 2019, we were in compliance with the agreements and instruments governing our debt, including our financial covenants. During the three months ended March 31, 2019, we commenced tender offer for up to $100.0 million in aggregate purchase price of our 5.625% Senior Notes due 2025 (the “2025 Notes”) with a sublimit of $25.0 million for purchase of our 5.500% Senior Notes due 2023 (the “2023 Notes”), in each case issued by our indirect wholly-owned subsidiaries Sally Holdings LLC and Sally Capital Inc. (“Tender Offer”). As a result of the Tender Offer, we repurchased approximately $57.5 million aggregate principal amount of the 2025 Notes and approximately $2.6 million aggregate principal amount of the 2023 Notes at a total tender offer price of 98.0% and 100.0%, respectively, excluding accrued interest. In connection with the Tender Offer, we recognized a $0.5 million gain on the extinguishment of debt, including a gain of approximately $1.2 million from the discount paid under the face value of the accepted 2025 Notes and the write off of $0.7 million in unamortized deferred financing costs.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Mar. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	11. Derivative Instruments and Hedging Activities During the six months ended March 31, 2019, we did not purchase or hold any derivative instruments for trading or speculative purposes. Designated Cash Flow Hedges Foreign Currency Forwards In December 2018, we entered into foreign currency forwards to mitigate the exposure to exchange rate changes on inventory purchases in USD by our foreign subsidiaries. At March 31, 2019, the notional amount we held through these forwards, based upon exchange rates at March 31, 2019, was as follows (in thousands): Notional Currency Notional Amount MXP $ 15,310 EUR 10,916 CAD 7,507 GBP 4,511 Total $ 38,244 We record quarterly, net of income tax, the changes in fair value related to the foreign currency forwards into AOCL. As the forwards are exercised, the realized value will be recognized into cost of goods sold based on inventory turns. Based on March 31, 2019 valuations and exchange rates, we expect to reclassify approximately $0.5 million into cost of goods sold over the next 12 months. Interest Rate Caps 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 increasing interest rates in connection with our term loan B. The interest rate caps are comprised of individual caplets that expire ratably through June 30, 2023 and are designated as cash flow hedges. Accordingly, changes in fair value of the interest rate caps are recorded quarterly, net of income tax, and are included in AOCL. Over the next 12 months, we expect to reclassify approximately $0.5 million into interest expense, which represents the original value of the expiring caplets. The table below presents the fair value of our derivative financial instruments (in thousands): Asset Derivatives Liability Derivatives Classification March 31, 2019 September 30, 2018 Classification March 31, 2019 September 30, 2018 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 1,636 $ 8,367 N/A $ — $ — Foreign exchange contracts Other current assets 580 — Accrued liabilities 333 — $ 2,216 $ 8,367 $ 333 $ — The effects of our derivative financial instruments on our condensed consolidated statements of earnings were not material for the three and six months ended March 31, 2019 and 2018.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes Our effective tax rate for the three months ended March 31, 2019 and 2018 was 25.9% and 28.5%, respectively. For the three months ended March 31, 2019, our effective tax rate was favorably impacted by a lower federal statutory rate when compared the prior year as a result of the Tax Cut and Jobs Act (“U.S. Tax Reform”). For the fiscal year 2019, our U.S. federal statutory rate will be 21.0% compared to 24.5% for the prior fiscal year. Our effective tax rate for the six months ended March 31, 2019 and 2018 was 24.4% and 15.9%, respectively. For the six months ended March 31, 2018, our effective tax rate was favorably impacted by a net income tax benefit of $22.2 million related to U.S. Tax Reform when compared to the current period. This benefit was partially offset by the lower federal statutory rates recorded in the current period as compared to the prior period. In December 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) which 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. As of December 31, 2018, we have completed our analysis on our provisional calculations within the measurement period provided by SAB 118. As a result, during the six months ended March 31, 2019, we identified certain immaterial adjustments to our provisional calculations, including a benefit of $3.0 million related to the In addition, the U.S. Treasury Department has recently released proposed regulations covering the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of the U.S. Tax Reform. Included within the proposed regulations, certain guidance is inconsistent with our interpretation of the enacted tax law. This proposed regulation is not authoritative and is subject to change in the regulatory review process. However, if the proposed regulation is included in the final regulations as drafted, we may be required to reverse $2.5 million of benefit in the quarter the regulations become final. Beginning in our first quarter of fiscal year 2019, we are subject to taxation on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. We have made the policy election to record this tax as a period cost at the time it is incurred. The impact from GILTI was immaterial for the three months ended March 31, 2019 and is expected to be immaterial for the full fiscal year 2019.

Business Segments

Business Segments	6 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Business Segments	13. Business Segments Segment data for the three and six months ended March 31, 2019 and 2018 is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Net sales: SBS $ 565,604 $ 580,114 $ 1,146,213 $ 1,165,689 Beauty Systems Group ("BSG") 380,248 395,207 789,092 804,597 Total $ 945,852 $ 975,321 $ 1,935,305 $ 1,970,286 Earnings before provision for income taxes: Segment operating earnings: SBS $ 86,715 $ 90,328 $ 176,706 $ 176,922 BSG 56,518 59,949 118,849 124,514 Segment operating earnings 143,233 150,277 295,555 301,436 Unallocated expenses (36,535 ) (32,416 ) (75,139 ) (68,233 ) Restructuring 5,814 (6,759 ) 1,834 (11,969 ) Consolidated operating earnings 112,512 111,102 222,250 221,234 Interest expense (23,821 ) (25,262 ) (48,310 ) (49,277 ) Earnings before provision for income taxes $ 88,691 $ 85,840 $ 173,940 $ 171,957 Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2019 and 2018. Disaggregation of net sales by segment SBS Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Hair color 29.1 % 26.9 % 28.3 % 26.6 % Hair care 20.5 % 21.3 % 20.2 % 20.9 % Skin and nail care 14.6 % 14.8 % 14.8 % 14.9 % Styling tools 13.6 % 14.0 % 14.7 % 14.7 % Salon supplies and accessories 7.5 % 7.5 % 7.3 % 7.3 % Multicultural products 7.0 % 7.2 % 6.7 % 6.9 % Other Beauty items 7.7 % 8.3 % 8.0 % 8.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % BSG Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Hair color 40.3 % 38.7 % 39.1 % 37.8 % Hair care 34.2 % 34.0 % 33.8 % 33.8 % Skin and nail care 8.2 % 8.8 % 8.2 % 8.9 % Styling tools 3.2 % 3.7 % 3.6 % 4.2 % Other beauty items 6.6 % 6.6 % 6.1 % 6.1 % Promotional items 7.5 % 8.2 % 9.2 % 9.2 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Parent, Issuers, Guarantor and

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	6 Months Ended
	Mar. 31, 2019
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	14. Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet March 31, 2019 (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 $ 49,719 $ 40,048 $ — $ 89,777 Trade and other accounts receivable, net — — 57,983 33,444 — 91,427 Due from affiliates — — 2,691,139 — (2,691,139 ) — Inventory — — 714,757 238,286 — 953,043 Other current assets 2,906 196 23,399 13,394 — 39,895 Property and equipment, net 6 — 230,007 67,111 — 297,124 Investment in subsidiaries 1,489,197 4,206,154 381,353 — (6,076,704 ) — Goodwill and other intangible assets, net — — 456,574 145,362 — 601,936 Other assets 1,325 3,303 (3,441 ) 18,225 — 19,412 Total assets $ 1,493,434 $ 4,209,663 $ 4,601,490 $ 555,870 $ (8,767,843 ) $ 2,092,614 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 85 $ 3,456 $ 197,401 $ 51,528 $ — $ 252,470 Due to affiliates 1,626,428 982,434 — 82,277 (2,691,139 ) — Accrued liabilities 359 21,520 103,095 31,516 — 156,490 Income taxes payable 5,093 1,519 — (332 ) — 6,280 Long-term debt — 1,713,068 3 853 — 1,713,924 Other liabilities 6,729 — 15,303 3,885 — 25,917 Deferred income tax liabilities, net (185 ) (1,531 ) 79,534 4,790 — 82,608 Total liabilities 1,638,509 2,720,466 395,336 174,517 (2,691,139 ) 2,237,689 Total stockholders’ (deficit) equity (145,075 ) 1,489,197 4,206,154 381,353 (6,076,704 ) (145,075 ) Total liabilities and stockholders’ (deficit) equity $ 1,493,434 $ 4,209,663 $ 4,601,490 $ 555,870 $ (8,767,843 ) $ 2,092,614 Condensed Consolidating Balance Sheet September 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 Assets Cash and cash equivalents $ — $ 10 $ 29,050 $ 48,235 $ — $ 77,295 Trade and other accounts receivable, net 4 — 53,295 37,191 — 90,490 Due from affiliates — — 2,598,681 — (2,598,681 ) — Inventory — — 714,000 230,338 — 944,338 Other current assets 2,010 111 27,422 13,417 — 42,960 Property and equipment, net 8 — 232,941 75,408 — 308,357 Investment in subsidiaries 1,368,927 4,044,669 380,166 — (5,793,762 ) — Goodwill and other intangible assets, net — — 459,348 149,275 — 608,623 Other assets 1,325 10,242 (4,797 ) 18,581 — 25,351 Total assets $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 38 $ - $ 233,936 $ 69,267 $ — $ 303,241 Due to affiliates 1,629,411 888,141 — 81,129 (2,598,681 ) — Accrued liabilities 234 23,019 125,179 31,855 — 180,287 Income taxes payable 585 1,519 — 40 — 2,144 Long-term debt — 1,773,426 1 882 — 1,774,309 Other liabilities 10,562 — 15,250 4,210 — 30,022 Deferred income tax liabilities, net — — 71,071 4,896 — 75,967 Total liabilities 1,640,830 2,686,105 445,437 192,279 (2,598,681 ) 2,365,970 Total stockholders’ (deficit) equity (268,556 ) 1,368,927 4,044,669 380,166 (5,793,762 ) (268,556 ) Total liabilities and stockholders’ (deficit) equity $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended March 31, 2019 (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 $ — $ — $ 769,284 $ 176,568 $ — $ 945,852 Related party sales — — 480 — (480 ) — Cost of products sold and distribution expenses — — 383,147 94,861 (480 ) 477,528 Gross profit — — 386,617 81,707 — 468,324 Selling, general and administrative expenses 3,084 198 281,404 76,940 — 361,626 Restructuring — — (5,814 ) — — (5,814 ) Operating earnings (loss) (3,084 ) (198 ) 111,027 4,767 — 112,512 Interest expense (income) — 23,871 (1 ) (49 ) — 23,821 Earnings (loss) before provision for income taxes (3,084 ) (24,069 ) 111,028 4,816 — 88,691 Provision (benefit) for income taxes (791 ) (6,179 ) 28,795 1,141 — 22,966 Equity in earnings of subsidiaries, net of tax 68,018 85,908 3,675 — (157,601 ) — Net earnings 65,725 68,018 85,908 3,675 (157,601 ) 65,725 Other comprehensive income (loss), net of tax — (2,140 ) — 3,282 — 1,142 Total comprehensive income (loss) $ 65,725 $ 65,878 $ 85,908 $ 6,957 $ (157,601 ) $ 66,867 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended March 31, 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 $ — $ — $ 786,743 $ 188,578 $ — $ 975,321 Related party sales — — 631 — (631 ) — Cost of products sold and distribution expenses — — 390,891 98,739 (631 ) 488,999 Gross profit — — 396,483 89,839 — 486,322 Selling, general and administrative expenses 2,859 602 279,435 85,565 — 368,461 Restructuring — — 6,759 — — 6,759 Operating earnings (loss) (2,859 ) (602 ) 110,289 4,274 — 111,102 Interest expense (income) — 25,293 (3 ) (28 ) — 25,262 Earnings (loss) before provision for income taxes (2,859 ) (25,895 ) 110,292 4,302 — 85,840 Provision (benefit) for income taxes (828 ) (7,499 ) 30,758 2,038 24,469 Equity in earnings of subsidiaries, net of tax 63,402 81,798 2,264 — (147,464 ) — Net earnings (loss) 61,371 63,402 81,798 2,264 (147,464 ) 61,371 Other comprehensive income, net of tax — 2,310 — 10,437 12,747 Total comprehensive income (loss) $ 61,371 $ 65,712 $ 81,798 $ 12,701 $ (147,464 ) $ 74,118 Condensed Consolidating Statement of Earnings and Comprehensive Income Six Months Ended March 31, 2019 (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 $ — $ — $ 1,562,814 $ 372,491 $ — $ 1,935,305 Related party sales — — 1,149 — (1,149 ) — Cost of products sold and distribution expenses — — 787,187 200,237 (1,149 ) 986,275 Gross profit — — 776,776 172,254 — 949,030 Selling, general and administrative expenses 5,893 366 567,620 154,735 — 728,614 Restructuring — — (1,834 ) — — (1,834 ) Operating earnings (loss) (5,893 ) (366 ) 210,990 17,519 — 222,250 Interest expense (income) — 48,423 (2 ) (111 ) — 48,310 Earnings (loss) before provision for income taxes (5,893 ) (48,789 ) 210,992 17,630 — 173,940 Provision (benefit) for income taxes (1,512 ) (12,524 ) 54,478 2,046 — 42,488 Equity in earnings of subsidiaries, net of tax 135,833 172,098 15,584 — (323,515 ) — Net earnings 131,452 135,833 172,098 15,584 (323,515 ) 131,452 Other comprehensive loss, net of tax — (4,949 ) — (10,614 ) — (15,563 ) Total comprehensive income (loss) $ 131,452 $ 130,884 $ 172,098 $ 4,970 $ (323,515 ) $ 115,889 Condensed Consolidating Statement of Earnings and Comprehensive Income Six Months Ended March 31, 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 $ — $ — $ 1,583,275 $ 387,011 $ — $ 1,970,286 Related party sales — — 1,077 — (1,077 ) — Cost of products sold and distribution expenses — — 794,701 203,711 (1,077 ) 997,335 Gross profit — — 789,651 183,300 — 972,951 Selling, general and administrative expenses 5,465 781 563,902 169,600 — 739,748 Restructuring — — 11,969 — — 11,969 Operating earnings (loss) (5,465 ) (781 ) 213,780 13,700 — 221,234 Interest expense (income) — 49,307 (3 ) (27 ) — 49,277 Earnings (loss) before provision for income taxes (5,465 ) (50,088 ) 213,783 13,727 — 171,957 Provision (benefit) for income taxes (1,079 ) (14,424 ) 22,843 19,982 27,322 Equity in earnings of subsidiaries, net of tax 149,021 184,685 (6,255 ) — (327,451 ) — Net earnings (loss) 144,635 149,021 184,685 (6,255 ) (327,451 ) 144,635 Other comprehensive income, net of tax — 1,507 — 10,182 — 11,689 Total comprehensive income (loss) $ 144,635 $ 150,528 $ 184,685 $ 3,927 $ (327,451 ) $ 156,324 Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 2019 (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 $ 1,262 $ (32,639 ) $ 144,685 $ (3,198 ) $ — $ 110,110 Cash Flows from Investing Activities: Payments for property and equipment — — (41,559 ) (4,839 ) — (46,398 ) Proceeds from sale of property and equipment — — 12,007 3 — 12,010 Acquisitions, net of cash acquired — — (2,008 ) (840 ) — (2,848 ) Due from affiliates — — (92,458 ) — 92,458 — Net cash used by investing activities — — (124,018 ) (5,676 ) 92,458 (37,236 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 242,500 4 — — 242,504 Repayments of long-term debt — (304,154 ) (2 ) (1 ) — (304,157 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,721 — — — — 1,721 Due to affiliates (2,983 ) 94,293 — 1,148 (92,458 ) — Net cash provided (used) by financing activities (1,262 ) 32,639 2 1,147 (92,458 ) (59,932 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (460 ) — (460 ) Net increase (decrease) in cash and cash equivalents — — 20,669 (8,187 ) — 12,482 Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 49,719 $ 40,048 $ — $ 89,777 Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 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 $ 16,313 $ (33,119 ) $ 197,800 $ (1,544 ) $ — $ 179,450 Cash Flows from Investing Activities: Payments for property and equipment — — (32,092 ) (6,601 ) — (38,693 ) Proceeds from sale of property and equipment — — — 14 — 14 Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (159,590 ) — 159,590 — Net cash used by investing activities — — (191,682 ) (15,762 ) 159,590 (47,854 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 246,814 5 — — 246,819 Repayments of long-term debt — (259,750 ) (2 ) (390 ) — (260,142 ) Debt issuance costs — (1,151 ) — — — (1,151 ) Repurchases of common stock (114,699 ) — — — — (114,699 ) Proceeds from exercises of stock options 1,112 — — — — 1,112 Due to affiliates 97,274 47,206 — 15,110 (159,590 ) — Net cash provided (used) by financing activities (16,313 ) 33,119 3 14,720 (159,590 ) (128,061 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 762 — 762 Net increase (decrease) in cash and cash equivalents — — 6,121 (1,824 ) — 4,297 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 28,211 $ 39,835 $ — $ 68,056

Restructuring

Restructuring	6 Months Ended
	Mar. 31, 2019
Restructuring And Related Activities [Abstract]
Restructuring	15. Restructuring Restructuring gain and expenses for the three and six months ended March 31, 2019 and 2018, are as follows (in thousands): Three Months Ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 Supply Chain Modernization $ (5,814 ) $ — $ (5,814 ) $ — 2018 Restructuring Plan — 6,759 3,980 11,969 Total expenses (gain) $ (5,814 ) $ 6,759 $ (1,834 ) $ 11,969 Supply Chain Modernization In February 2019, we announced that we were assessing our supply chain in an effort to minimize out-of-stocks, optimize inventory levels, reduce cost and explore new replenishment and fulfillment options. As part of our supply chain modernization plans, we sold our secondary headquarters and fulfillment center in Denton, Texas, and anticipate closing select distribution centers and upgrading our e-commerce capabilities. Additionally, we will be opening up a new automated and concentrated distribution center which will service Sally Beauty Supply stores and e-commerce sales as well as Beauty Systems Group stores, full service sales and e-commerce sales. The liability related to the Supply Chain Modernization, which is included in accrued liabilities in our condensed consolidated balance sheets, is as follows (in thousands): Supply Chain Modernization Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at March 31, 2019 Workforce reductions $ — $ 236 $ 83 $ — $ 153 Facility closures — 502 502 — — Other — 95 95 — — Total $ — $ 833 $ 680 $ — $ 153 Expenses incurred in the six months ended March 31, 2019, primarily The above table does not include a gain from selling our secondary headquarters and fulfillment center in Denton, TX of $6.6 million. In connection with the sale, we leased back the facility at current market rates for an insignificant time while we moved personnel to our primary headquarters. 2018 Restructuring Plan In November 2017, our Board of Directors 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. As of December 31, 2018, the 2018 Restructuring Plan was substantially complete and we do not anticipate any additional material costs for the 2018 Restructuring Plan. The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities in our condensed consolidated balance sheets, is as follows (in thousands): 2018 Restructuring Plan Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at March 31, 2019 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — $ — Consulting 3,087 2,502 5,589 — — Other 2,266 835 2,943 — 158 Total $ 8,797 $ 3,980 $ 12,619 $ — $ 158 Expenses incurred in the six months ended March 31, 2019 represent costs incurred by SBS of $1.1 million and corporate of $2.8 million.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	16. 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 As previously disclosed, we experienced data security incidents during the fiscal years 2014 and 2015 (together, 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 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. During the fiscal year ended September 30, 2018, we received an assessment from a payment card network in connection with the data security incidents. 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 data security incidents, including incremental counterfeit fraud losses and non-ordinary course operating expenses, such as card reissuance costs. As of March 31, 2019, we have paid the assessment from the payment card network.

Accounting Changes and Recent_2

Accounting Changes and Recent Accounting Pronouncements (Policies)	6 Months Ended
	Mar. 31, 2019
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes	Accounting Changes In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In connection with the adoption of ASU No. 2014-09, we now present our sales returns allowance on a gross basis rather than a net liability basis. As such, we recognize a return asset from the right to recover merchandise from customers (included in other current assets) and a return liability from the amount to be returned to the customer (included in accrued liabilities) within our consolidated balance sheets. Additionally, we now recognize revenue for our gift cards not expected to be redeemed (“gift card breakage”) within revenue in our consolidated statements of earnings. The following tables set forth the impact of adopting this standard on our condensed consolidated balance sheets as of March 31, 2019 and our condensed consolidated statements of earnings for the three and six months ended March 31, 2019 (in thousands): Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Other current assets $ 39,895 $ 37,256 $ 2,639 Accrued liabilities $ 156,490 $ 153,851 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings For the three months ended March 31, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 945,852 $ 945,752 $ 100 Gross Profit 468,324 468,224 100 Selling, general and administrative expenses $ 361,626 $ 361,526 $ 100 For the six months ended March 31, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 1,935,305 $ 1,935,130 $ 175 Gross Profit 949,030 948,855 175 Selling, general and administrative expenses $ 728,614 $ 728,439 $ 175 See note 4, Revenue Recognition
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases

Accounting Changes and Recent_3

Accounting Changes and Recent Accounting Pronouncements (Tables)	6 Months Ended
	Mar. 31, 2019
ASU 2014-09
Recent Accounting Pronouncements
Schedule of Impact of Adopting ASU No. 2014-09 on Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Earnings	The following tables set forth the impact of adopting this standard on our condensed consolidated balance sheets as of March 31, 2019 and our condensed consolidated statements of earnings for the three and six months ended March 31, 2019 (in thousands): Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Other current assets $ 39,895 $ 37,256 $ 2,639 Accrued liabilities $ 156,490 $ 153,851 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings For the three months ended March 31, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 945,852 $ 945,752 $ 100 Gross Profit 468,324 468,224 100 Selling, general and administrative expenses $ 361,626 $ 361,526 $ 100 For the six months ended March 31, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 1,935,305 $ 1,935,130 $ 175 Gross Profit 949,030 948,855 175 Selling, general and administrative expenses $ 728,614 $ 728,439 $ 175

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Mar. 31, 2019
Revenue From Contract With Customer [Abstract]
Summary of Gift Card and Rewards Loyalty Program Liabilities	The following table shows the amount of our gift card and rewards loyalty program liabilities included in accrued liabilities within our condensed consolidated balance sheets as of March 31, 2019 and September 30, 2018 (in thousands): March 31, 2019 September 30, 2018 Gift cards $ 4,528 $ 4,144 Rewards loyalty program 7,032 1,165 Total liability $ 11,560 $ 5,309

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities by fair value hierarchy	Fair value on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement As of March 31, 2019 As of September 30, 2018 Assets Foreign exchange contracts Level 2 $ 580 $ — Interest rate caps Level 2 1,636 8,367 Total assets $ 2,216 $ 8,367 Liabilities Foreign exchange contracts Level 2 $ 333 $ — Other fair value disclosures As of March 31, 2019 As of September 30, 2018 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 889,946 $ 888,694 $ 950,000 $ 911,490 Other long-term debt Level 2 842,606 823,421 845,383 824,951 Total debt $ 1,732,552 $ 1,712,115 $ 1,795,383 $ 1,736,441

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Mar. 31, 2019
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 Foreign Exchange Contracts Total Balance at September 30, 2018 $ (91,356 ) $ 1,365 $ — $ (89,991 ) Other comprehensive loss before reclassification, net of tax (10,425 ) (5,014 ) (253 ) (15,692 ) Reclassification to net earnings, net of tax — 44 85 129 Balance at March 31, 2019 $ (101,781 ) $ (3,605 ) $ (168 ) $ (105,554 )

Weighted Average Shares (Tables

Weighted Average Shares (Tables)	6 Months Ended
	Mar. 31, 2019
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): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Weighted average basic shares 120,077 124,270 120,033 126,046 Dilutive securities: Stock option and stock award programs 914 787 916 788 Weighted average diluted shares 120,991 125,057 120,949 126,834

Share-Based Payments (Tables)

Share-Based Payments (Tables)	6 Months Ended
	Mar. 31, 2019
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, 2018 349 $ 20.88 1.3 Granted 230 17.22 Vested (23 ) 23.45 Forfeited (99 ) 21.68 Unvested at March 31, 2019 457 $ 18.74 1.8
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, 2018 5,405 $ 23.04 5.4 $ 3,161 Granted 948 18.14 Exercised (127 ) 15.42 Forfeited or expired (849 ) 25.32 Outstanding at March 31, 2019 5,377 $ 21.99 6.3 $ 2,924 Exercisable at March 31, 2019 3,444 $ 23.68 4.9 $ 1,773
Restricted Stock Awards
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, 2018 219 $ 16.98 2.1 Granted 287 18.14 Vested (6 ) 18.29 Forfeited (31 ) 17.64 Unvested at March 31, 2019 469 $ 17.60 2.1
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, 2018 — $ — — Granted 88 18.14 Vested — — Forfeited — — Unvested at March 31, 2019 88 $ 18.14 0.5

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Mar. 31, 2019
Schedule of fair value of derivative financial instruments	The table below presents the fair value of our derivative financial instruments (in thousands): Asset Derivatives Liability Derivatives Classification March 31, 2019 September 30, 2018 Classification March 31, 2019 September 30, 2018 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 1,636 $ 8,367 N/A $ — $ — Foreign exchange contracts Other current assets 580 — Accrued liabilities 333 — $ 2,216 $ 8,367 $ 333 $ —
Foreign Currency Forwards
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At March 31, 2019, the notional amount we held through these forwards, based upon exchange rates at March 31, 2019, was as follows (in thousands): Notional Currency Notional Amount MXP $ 15,310 EUR 10,916 CAD 7,507 GBP 4,511 Total $ 38,244

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three and six months ended March 31, 2019 and 2018 is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Net sales: SBS $ 565,604 $ 580,114 $ 1,146,213 $ 1,165,689 Beauty Systems Group ("BSG") 380,248 395,207 789,092 804,597 Total $ 945,852 $ 975,321 $ 1,935,305 $ 1,970,286 Earnings before provision for income taxes: Segment operating earnings: SBS $ 86,715 $ 90,328 $ 176,706 $ 176,922 BSG 56,518 59,949 118,849 124,514 Segment operating earnings 143,233 150,277 295,555 301,436 Unallocated expenses (36,535 ) (32,416 ) (75,139 ) (68,233 ) Restructuring 5,814 (6,759 ) 1,834 (11,969 ) Consolidated operating earnings 112,512 111,102 222,250 221,234 Interest expense (23,821 ) (25,262 ) (48,310 ) (49,277 ) Earnings before provision for income taxes $ 88,691 $ 85,840 $ 173,940 $ 171,957
Schedule of disaggregation of net sales by segment	Disaggregation of net sales by segment SBS Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Hair color 29.1 % 26.9 % 28.3 % 26.6 % Hair care 20.5 % 21.3 % 20.2 % 20.9 % Skin and nail care 14.6 % 14.8 % 14.8 % 14.9 % Styling tools 13.6 % 14.0 % 14.7 % 14.7 % Salon supplies and accessories 7.5 % 7.5 % 7.3 % 7.3 % Multicultural products 7.0 % 7.2 % 6.7 % 6.9 % Other Beauty items 7.7 % 8.3 % 8.0 % 8.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % BSG Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Hair color 40.3 % 38.7 % 39.1 % 37.8 % Hair care 34.2 % 34.0 % 33.8 % 33.8 % Skin and nail care 8.2 % 8.8 % 8.2 % 8.9 % Styling tools 3.2 % 3.7 % 3.6 % 4.2 % Other beauty items 6.6 % 6.6 % 6.1 % 6.1 % Promotional items 7.5 % 8.2 % 9.2 % 9.2 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Parent, Issuers, Guarantor an_2

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)	6 Months Ended
	Mar. 31, 2019
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet March 31, 2019 (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 $ 49,719 $ 40,048 $ — $ 89,777 Trade and other accounts receivable, net — — 57,983 33,444 — 91,427 Due from affiliates — — 2,691,139 — (2,691,139 ) — Inventory — — 714,757 238,286 — 953,043 Other current assets 2,906 196 23,399 13,394 — 39,895 Property and equipment, net 6 — 230,007 67,111 — 297,124 Investment in subsidiaries 1,489,197 4,206,154 381,353 — (6,076,704 ) — Goodwill and other intangible assets, net — — 456,574 145,362 — 601,936 Other assets 1,325 3,303 (3,441 ) 18,225 — 19,412 Total assets $ 1,493,434 $ 4,209,663 $ 4,601,490 $ 555,870 $ (8,767,843 ) $ 2,092,614 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 85 $ 3,456 $ 197,401 $ 51,528 $ — $ 252,470 Due to affiliates 1,626,428 982,434 — 82,277 (2,691,139 ) — Accrued liabilities 359 21,520 103,095 31,516 — 156,490 Income taxes payable 5,093 1,519 — (332 ) — 6,280 Long-term debt — 1,713,068 3 853 — 1,713,924 Other liabilities 6,729 — 15,303 3,885 — 25,917 Deferred income tax liabilities, net (185 ) (1,531 ) 79,534 4,790 — 82,608 Total liabilities 1,638,509 2,720,466 395,336 174,517 (2,691,139 ) 2,237,689 Total stockholders’ (deficit) equity (145,075 ) 1,489,197 4,206,154 381,353 (6,076,704 ) (145,075 ) Total liabilities and stockholders’ (deficit) equity $ 1,493,434 $ 4,209,663 $ 4,601,490 $ 555,870 $ (8,767,843 ) $ 2,092,614 Condensed Consolidating Balance Sheet September 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 Assets Cash and cash equivalents $ — $ 10 $ 29,050 $ 48,235 $ — $ 77,295 Trade and other accounts receivable, net 4 — 53,295 37,191 — 90,490 Due from affiliates — — 2,598,681 — (2,598,681 ) — Inventory — — 714,000 230,338 — 944,338 Other current assets 2,010 111 27,422 13,417 — 42,960 Property and equipment, net 8 — 232,941 75,408 — 308,357 Investment in subsidiaries 1,368,927 4,044,669 380,166 — (5,793,762 ) — Goodwill and other intangible assets, net — — 459,348 149,275 — 608,623 Other assets 1,325 10,242 (4,797 ) 18,581 — 25,351 Total assets $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 38 $ - $ 233,936 $ 69,267 $ — $ 303,241 Due to affiliates 1,629,411 888,141 — 81,129 (2,598,681 ) — Accrued liabilities 234 23,019 125,179 31,855 — 180,287 Income taxes payable 585 1,519 — 40 — 2,144 Long-term debt — 1,773,426 1 882 — 1,774,309 Other liabilities 10,562 — 15,250 4,210 — 30,022 Deferred income tax liabilities, net — — 71,071 4,896 — 75,967 Total liabilities 1,640,830 2,686,105 445,437 192,279 (2,598,681 ) 2,365,970 Total stockholders’ (deficit) equity (268,556 ) 1,368,927 4,044,669 380,166 (5,793,762 ) (268,556 ) Total liabilities and stockholders’ (deficit) equity $ 1,372,274 $ 4,055,032 $ 4,490,106 $ 572,445 $ (8,392,443 ) $ 2,097,414
Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income	Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended March 31, 2019 (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 $ — $ — $ 769,284 $ 176,568 $ — $ 945,852 Related party sales — — 480 — (480 ) — Cost of products sold and distribution expenses — — 383,147 94,861 (480 ) 477,528 Gross profit — — 386,617 81,707 — 468,324 Selling, general and administrative expenses 3,084 198 281,404 76,940 — 361,626 Restructuring — — (5,814 ) — — (5,814 ) Operating earnings (loss) (3,084 ) (198 ) 111,027 4,767 — 112,512 Interest expense (income) — 23,871 (1 ) (49 ) — 23,821 Earnings (loss) before provision for income taxes (3,084 ) (24,069 ) 111,028 4,816 — 88,691 Provision (benefit) for income taxes (791 ) (6,179 ) 28,795 1,141 — 22,966 Equity in earnings of subsidiaries, net of tax 68,018 85,908 3,675 — (157,601 ) — Net earnings 65,725 68,018 85,908 3,675 (157,601 ) 65,725 Other comprehensive income (loss), net of tax — (2,140 ) — 3,282 — 1,142 Total comprehensive income (loss) $ 65,725 $ 65,878 $ 85,908 $ 6,957 $ (157,601 ) $ 66,867 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended March 31, 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 $ — $ — $ 786,743 $ 188,578 $ — $ 975,321 Related party sales — — 631 — (631 ) — Cost of products sold and distribution expenses — — 390,891 98,739 (631 ) 488,999 Gross profit — — 396,483 89,839 — 486,322 Selling, general and administrative expenses 2,859 602 279,435 85,565 — 368,461 Restructuring — — 6,759 — — 6,759 Operating earnings (loss) (2,859 ) (602 ) 110,289 4,274 — 111,102 Interest expense (income) — 25,293 (3 ) (28 ) — 25,262 Earnings (loss) before provision for income taxes (2,859 ) (25,895 ) 110,292 4,302 — 85,840 Provision (benefit) for income taxes (828 ) (7,499 ) 30,758 2,038 24,469 Equity in earnings of subsidiaries, net of tax 63,402 81,798 2,264 — (147,464 ) — Net earnings (loss) 61,371 63,402 81,798 2,264 (147,464 ) 61,371 Other comprehensive income, net of tax — 2,310 — 10,437 12,747 Total comprehensive income (loss) $ 61,371 $ 65,712 $ 81,798 $ 12,701 $ (147,464 ) $ 74,118 Condensed Consolidating Statement of Earnings and Comprehensive Income Six Months Ended March 31, 2019 (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 $ — $ — $ 1,562,814 $ 372,491 $ — $ 1,935,305 Related party sales — — 1,149 — (1,149 ) — Cost of products sold and distribution expenses — — 787,187 200,237 (1,149 ) 986,275 Gross profit — — 776,776 172,254 — 949,030 Selling, general and administrative expenses 5,893 366 567,620 154,735 — 728,614 Restructuring — — (1,834 ) — — (1,834 ) Operating earnings (loss) (5,893 ) (366 ) 210,990 17,519 — 222,250 Interest expense (income) — 48,423 (2 ) (111 ) — 48,310 Earnings (loss) before provision for income taxes (5,893 ) (48,789 ) 210,992 17,630 — 173,940 Provision (benefit) for income taxes (1,512 ) (12,524 ) 54,478 2,046 — 42,488 Equity in earnings of subsidiaries, net of tax 135,833 172,098 15,584 — (323,515 ) — Net earnings 131,452 135,833 172,098 15,584 (323,515 ) 131,452 Other comprehensive loss, net of tax — (4,949 ) — (10,614 ) — (15,563 ) Total comprehensive income (loss) $ 131,452 $ 130,884 $ 172,098 $ 4,970 $ (323,515 ) $ 115,889 Condensed Consolidating Statement of Earnings and Comprehensive Income Six Months Ended March 31, 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 $ — $ — $ 1,583,275 $ 387,011 $ — $ 1,970,286 Related party sales — — 1,077 — (1,077 ) — Cost of products sold and distribution expenses — — 794,701 203,711 (1,077 ) 997,335 Gross profit — — 789,651 183,300 — 972,951 Selling, general and administrative expenses 5,465 781 563,902 169,600 — 739,748 Restructuring — — 11,969 — — 11,969 Operating earnings (loss) (5,465 ) (781 ) 213,780 13,700 — 221,234 Interest expense (income) — 49,307 (3 ) (27 ) — 49,277 Earnings (loss) before provision for income taxes (5,465 ) (50,088 ) 213,783 13,727 — 171,957 Provision (benefit) for income taxes (1,079 ) (14,424 ) 22,843 19,982 27,322 Equity in earnings of subsidiaries, net of tax 149,021 184,685 (6,255 ) — (327,451 ) — Net earnings (loss) 144,635 149,021 184,685 (6,255 ) (327,451 ) 144,635 Other comprehensive income, net of tax — 1,507 — 10,182 — 11,689 Total comprehensive income (loss) $ 144,635 $ 150,528 $ 184,685 $ 3,927 $ (327,451 ) $ 156,324
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 2019 (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 $ 1,262 $ (32,639 ) $ 144,685 $ (3,198 ) $ — $ 110,110 Cash Flows from Investing Activities: Payments for property and equipment — — (41,559 ) (4,839 ) — (46,398 ) Proceeds from sale of property and equipment — — 12,007 3 — 12,010 Acquisitions, net of cash acquired — — (2,008 ) (840 ) — (2,848 ) Due from affiliates — — (92,458 ) — 92,458 — Net cash used by investing activities — — (124,018 ) (5,676 ) 92,458 (37,236 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 242,500 4 — — 242,504 Repayments of long-term debt — (304,154 ) (2 ) (1 ) — (304,157 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,721 — — — — 1,721 Due to affiliates (2,983 ) 94,293 — 1,148 (92,458 ) — Net cash provided (used) by financing activities (1,262 ) 32,639 2 1,147 (92,458 ) (59,932 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (460 ) — (460 ) Net increase (decrease) in cash and cash equivalents — — 20,669 (8,187 ) — 12,482 Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 49,719 $ 40,048 $ — $ 89,777 Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 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 $ 16,313 $ (33,119 ) $ 197,800 $ (1,544 ) $ — $ 179,450 Cash Flows from Investing Activities: Payments for property and equipment — — (32,092 ) (6,601 ) — (38,693 ) Proceeds from sale of property and equipment — — — 14 — 14 Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (159,590 ) — 159,590 — Net cash used by investing activities — — (191,682 ) (15,762 ) 159,590 (47,854 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 246,814 5 — — 246,819 Repayments of long-term debt — (259,750 ) (2 ) (390 ) — (260,142 ) Debt issuance costs — (1,151 ) — — — (1,151 ) Repurchases of common stock (114,699 ) — — — — (114,699 ) Proceeds from exercises of stock options 1,112 — — — — 1,112 Due to affiliates 97,274 47,206 — 15,110 (159,590 ) — Net cash provided (used) by financing activities (16,313 ) 33,119 3 14,720 (159,590 ) (128,061 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 762 — 762 Net increase (decrease) in cash and cash equivalents — — 6,121 (1,824 ) — 4,297 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 28,211 $ 39,835 $ — $ 68,056

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Mar. 31, 2019
Summary of restructuring gain and expenses	Restructuring gain and expenses for the three and six months ended March 31, 2019 and 2018, are as follows (in thousands): Three Months Ended Six Months Ended March 31, March 31, 2019 2018 2019 2018 Supply Chain Modernization $ (5,814 ) $ — $ (5,814 ) $ — 2018 Restructuring Plan — 6,759 3,980 11,969 Total expenses (gain) $ (5,814 ) $ 6,759 $ (1,834 ) $ 11,969
Supply Chain Modernization
Schedule of restructuring	The liability related to the Supply Chain Modernization, which is included in accrued liabilities in our condensed consolidated balance sheets, is as follows (in thousands): Supply Chain Modernization Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at March 31, 2019 Workforce reductions $ — $ 236 $ 83 $ — $ 153 Facility closures — 502 502 — — Other — 95 95 — — Total $ — $ 833 $ 680 $ — $ 153
2018 Restructuring Plan
Schedule of restructuring	The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities in our condensed consolidated balance sheets, is as follows (in thousands): 2018 Restructuring Plan Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at March 31, 2019 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — $ — Consulting 3,087 2,502 5,589 — — Other 2,266 835 2,943 — 158 Total $ 8,797 $ 3,980 $ 12,619 $ — $ 158

Accounting Changes and Recent_4

Accounting Changes and Recent Accounting Pronouncements - Schedule of Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Recent Accounting Pronouncements
Other current assets	$ 39,895	$ 42,960
Accrued liabilities	156,490	$ 180,287
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Other current assets	37,256
Accrued liabilities	153,851
ASU 2014-09 | ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Other current assets	2,639
Accrued liabilities	$ 2,639

Accounting Changes and Recent_5

Accounting Changes and Recent Accounting Pronouncements - Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Recent Accounting Pronouncements
Net sales	$ 945,852	$ 975,321	$ 1,935,305	$ 1,970,286
Gross Profit	468,324	486,322	949,030	972,951
Selling, general and administrative expenses	361,626	$ 368,461	728,614	$ 739,748
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales	945,752		1,935,130
Gross Profit	468,224		948,855
Selling, general and administrative expenses	361,526		728,439
ASU 2014-09 | ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales	100		175
Gross Profit	100		175
Selling, general and administrative expenses	$ 100		$ 175

Accounting Changes and Recent_6

Accounting Changes and Recent Accounting Pronouncements (Details) - ASU 16-02 $ in Millions	Mar. 31, 2019USD ($)
Recent Accounting Pronouncements
Estimated amount of Right of use asset	$ 525
Lease liability	$ 525

Revenue Recognition - (Details)

Revenue Recognition - (Details)	6 Months Ended
	Mar. 31, 2019
Revenue From Contract With Customer [Abstract]
Revenue recognition payment terms	30 days

Revenue Recognition - Summary o

Revenue Recognition - Summary of Gift Card and Rewards Loyalty Program Liabilities (Details) - Accrued Liabilities - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Contract With Customer Liability [Line Items]
Total liability	$ 11,560	$ 5,309
Gift Cards
Contract With Customer Liability [Line Items]
Total liability	4,528	4,144
Rewards Loyalty Program
Contract With Customer Liability [Line Items]
Total liability	$ 7,032	$ 1,165

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Long-term debt
Long-term debt, Carrying Value	$ 1,732,552	$ 1,795,383
Long-term debt, Fair Value	1,712,115	1,736,441
Level 2 | Other Long-Term Debt
Long-term debt
Long-term debt, Carrying Value	842,606	845,383
Long-term debt, Fair Value	823,421	824,951
Level 1 | Senior notes
Long-term debt
Long-term debt, Carrying Value	889,946	950,000
Long-term debt, Fair Value	888,694	911,490
Fair value measurement on recurring basis
Assets
Total assets	2,216	8,367
Fair value measurement on recurring basis | Level 2
Assets
Foreign exchange contracts	580
Interest rate caps	1,636	$ 8,367
Liabilities
Foreign exchange contracts	$ 333

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Change in AOCL (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2019USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ (268,556)
Balance	(145,075)
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	1,365
Other comprehensive loss before reclassification, net of tax	(5,014)
Reclassification to net earnings, net of tax	44
Balance	(3,605)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive loss before reclassification, net of tax	(253)
Reclassification to net earnings, net of tax	85
Balance	(168)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(91,356)
Other comprehensive loss before reclassification, net of tax	(10,425)
Balance	(101,781)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(89,991)
Other comprehensive loss before reclassification, net of tax	(15,692)
Reclassification to net earnings, net of tax	129
Balance	$ (105,554)

Weighted Average Shares (Detail

Weighted Average Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share Reconciliation:
Weighted average basic shares	120,077	124,270	120,033	126,046
Dilutive securities:
Stock option and stock award programs	914	787	916	788
Weighted average diluted shares	120,991	125,057	120,949	126,834

Weighted Average Shares - Addit

Weighted Average Shares - Additional Information (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
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)	5.2	5.4	5.2	5.4

Share-Based Payments - Performa

Share-Based Payments - Performance-Based Awards (Details) - Performance Unit Awards - $ / shares shares in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2019	Sep. 30, 2018
Share-Based Payments
Payout percentage (in percentage)	100.00%
Performance Unit Awards (in shares)
Unvested at the beginning of the period (in shares)	349
Granted (in shares)	230
Vested (in shares)	(23)
Forfeited (in shares)	(99)
Unvested at the end of the period (in shares)	457	349
Performance Unit Awards (in dollars per share)
Unvested at the beginning of the period (in dollars per share)	$ 20.88
Granted (in dollars per share)	17.22
Vested (in dollar per share)	23.45
Forfeited (in dollars per share)	21.68
Unvested at the end of the period (in dollars per share)	$ 18.74	$ 20.88
Performance Unit Awards (in years)
Weighted Average Remaining Vesting Term (in Years)	1 year 9 months 18 days	1 year 3 months 18 days

Share-Based Payments - Service-

Share-Based Payments - Service-Based Awards and Stock Option Awards (Details) - Stock Option Awards $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares	Sep. 30, 2018USD ($)$ / sharesshares
Stock Options, Number of Outstanding Options
Outstanding at the beginning of the period (in shares) | shares	5,405
Granted (in shares) | shares	948
Exercised (in shares) | shares	(127)
Forfeited or expired (in shares) | shares	(849)
Outstanding at the end of the period (in shares) | shares	5,377	5,405
Exercisable at the end of the period (in shares) | shares	3,444
Stock Options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 23.04
Granted (in dollars per share) | $ / shares	18.14
Exercised (in dollars per share) | $ / shares	15.42
Forfeited or expired (in dollars per share) | $ / shares	25.32
Outstanding at the end of the period (in dollars per share) | $ / shares	21.99	$ 23.04
Exercisable at the end of the period (in dollars per share) | $ / shares	$ 23.68
Stock Options, Weighted Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	6 years 3 months 18 days	5 years 4 months 24 days
Exercisable at March 31, 2019	4 years 10 months 24 days
Stock Options, Aggregate Intrinsic Value
Outstanding balance at period end (in dollars) | $	$ 2,924	$ 3,161
Exercisable at the end of the period (in dollars) | $	$ 1,773

Share-Based Payments - Restrict

Share-Based Payments - Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares	6 Months Ended	12 Months Ended
	Mar. 31, 2019	Sep. 30, 2018
Restricted stock (in shares)
Unvested at the beginning of the period (in shares)	219,000
Granted (in shares)	287,000
Vested (in shares)	(6,000)
Forfeited (in shares)	(31,000)
Unvested at the end of the period (in shares)	469,000	219,000
Restricted Stock (in dollars per share)
Unvested at the beginning of the period (in dollars per share)	$ 16.98
Granted (in dollars per share)	18.14
Vested (in dollar per share)	18.29
Forfeited (in dollars per share)	17.64
Unvested at the end of the period (in dollars per share)	$ 17.60	$ 16.98
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	2 years 1 month 6 days	2 years 1 month 6 days

Share-Based Payments - Restri_2

Share-Based Payments - Restricted Stock Units (Details) - Restricted Stock Units	6 Months Ended
	Mar. 31, 2019$ / sharesshares
Restricted stock (in shares)
Granted (in shares) | shares	88,000
Unvested at the end of the period (in shares) | shares	88,000
Restricted Stock (in dollars per share)
Granted (in dollars per share) | $ / shares	$ 18.14
Unvested at the end of the period (in dollars per share) | $ / shares	$ 18.14
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	6 months

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment losses in connection with the goodwill	$ 0	$ 0
Impairment losses in connection with the intangible assets	0	0
Amortization expense related to other intangible assets	$ 2,900,000	$ 2,700,000	$ 5,700,000	$ 5,600,000
Other intangible assets recorded in asset acquisitions			1,900,000
Goodwill, changes in foreign currency exchange rates			2,600,000
Other intangible assets, changes in foreign currency exchange rates			$ 600,000

Short-term Borrowings and Lon_2

Short-term Borrowings and Long-term Debt - ABL Facility and Canadian sub-facility (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2019	Mar. 31, 2018
Debt Instruments
Tender offers commenced	$ 100,000
Gain on extinguishment of debt	500	$ 473	$ (876)
Write off of unamortized debt issuance costs	$ 700
Senior notes due Dec. 2025
Debt Instruments
Interest rate (as a percent)	5.625%	5.625%
Debt instrument repurchased, aggregate principal amount	$ 57,500	$ 57,500
Total tender offer price	98.00%
Gain from discount paid under face value	$ 1,200
Senior notes due Nov. 2023
Debt Instruments
Interest rate (as a percent)	5.50%	5.50%
Tender offer, sublimit	$ 25,000
Debt instrument repurchased, aggregate principal amount	$ 2,600	$ 2,600
Total tender offer price	100.00%
Sally Holdings, LLC
Debt Instruments
Revolving credit facility	$ 481,900	$ 481,900
Sally Holdings, LLC | ABL facility
Debt Instruments
Debt instrument term		5 years

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - (Details)	6 Months Ended
	Mar. 31, 2019USD ($)instrument	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0
Foreign Currency Forwards
Derivative Instruments
Notional Amount	$ 38,244,000
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC
Derivative Instruments
Notional Amount		$ 550,000,000
Derivative instruments, expiration date	Jun. 30, 2023
Number of interest rate caps | derivative		2
Interest rate caps designated as cash flow hedges to be reclassified in to interest expense over next 12 months	$ 500,000
Reclassification from AOCL | Foreign Currency Forwards
Derivative Instruments
Foreign currency forwards designated as cash flow hedges to be reclassified in to cost of goods sold over next 12 months	$ 500,000

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Schedule of Notional Amount Held Through Foreign Currency Forwards, Based Upon Exchange Rates (Details) - Foreign Currency Forwards $ in Thousands	Mar. 31, 2019USD ($)
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 38,244
MXP
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	15,310
EUR
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	10,916
CAD
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	7,507
GBP
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 4,511

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Derivatives Designated as Hedging Instruments
Total derivatives designated as hedging instruments, Asset	$ 2,216	$ 8,367
Credit-risk-related Contingent Features
Total derivatives designated as hedging instruments, Liability	333
Other Assets
Derivatives Designated as Hedging Instruments
Interest rate caps	1,636	$ 8,367
Other current assets
Derivatives Designated as Hedging Instruments
Foreign exchange contracts	580
Accrued Liabilities
Credit-risk-related Contingent Features
Foreign exchange contracts	$ 333

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate	25.90%	28.50%	24.40%	15.90%
Federal statutory rate			21.00%		24.50%
Net benefit recorded as a result of the U.S. tax reform				$ 22.2
Unremitted earnings of foreign operations	$ 3		$ 3
Reversal amount of tax benefit as a result of change in the regulations			$ 2.5

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Net sales:
Total net sales	$ 945,852	$ 975,321	$ 1,935,305	$ 1,970,286
Segment operating earnings:
Segment operating earnings	112,512	111,102	222,250	221,234
Restructuring	5,814	(6,759)	1,834	(11,969)
Interest expense	(23,821)	(25,262)	(48,310)	(49,277)
Earnings before provision for income taxes	88,691	85,840	173,940	171,957
Operating segments
Segment operating earnings:
Segment operating earnings	143,233	150,277	295,555	301,436
Corporate
Segment operating earnings:
Unallocated expenses	(36,535)	(32,416)	(75,139)	(68,233)
Sally Beauty Supply
Net sales:
Total net sales	565,604	580,114	1,146,213	1,165,689
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	86,715	90,328	176,706	176,922
Beauty Systems Group
Net sales:
Total net sales	380,248	395,207	789,092	804,597
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	$ 56,518	$ 59,949	$ 118,849	$ 124,514

Business Segments - Schedule of

Business Segments - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net - Product Concentration Risk	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Sally Beauty Supply
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Sally Beauty Supply | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	29.10%	26.90%	28.30%	26.60%
Sally Beauty Supply | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	20.50%	21.30%	20.20%	20.90%
Sally Beauty Supply | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	13.60%	14.00%	14.70%	14.70%
Sally Beauty Supply | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	14.60%	14.80%	14.80%	14.90%
Sally Beauty Supply | Salon supplies and accessories
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.50%	7.50%	7.30%	7.30%
Sally Beauty Supply | Multicultural products
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.00%	7.20%	6.70%	6.90%
Sally Beauty Supply | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.70%	8.30%	8.00%	8.60%
Beauty Systems Group
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%	100.00%
Beauty Systems Group | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	40.30%	38.70%	39.10%	37.80%
Beauty Systems Group | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	34.20%	34.00%	33.80%	33.80%
Beauty Systems Group | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.20%	3.70%	3.60%	4.20%
Beauty Systems Group | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.20%	8.80%	8.20%	8.90%
Beauty Systems Group | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.60%	6.60%	6.10%	6.10%
Beauty Systems Group | Promotional items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.50%	8.20%	9.20%	9.20%

Parent, Issuers, Guarantor an_3

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Assets
Cash and cash equivalents	$ 89,777		$ 77,295	$ 68,056		$ 63,759
Trade and other accounts receivable, net	91,427		90,490
Inventory	953,043		944,338
Other current assets	39,895		42,960
Property and equipment, net	297,124		308,357
Goodwill and other intangible assets, net	601,936		608,623
Other assets	19,412		25,351
Total assets	2,092,614		2,097,414
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	252,470		303,241
Accrued liabilities	156,490		180,287
Income taxes payable	6,280		2,144
Long-term debt	1,713,924		1,774,309
Other liabilities	25,917		30,022
Deferred income tax liabilities, net	82,608		75,967
Total liabilities	2,237,689		2,365,970
Total stockholders’ (deficit) equity	(145,075)	$ (214,731)	(268,556)	(315,029)	$ (342,635)	(363,616)
Total liabilities and stockholders’ (deficit) equity	2,092,614		2,097,414
Parent
Assets
Trade and other accounts receivable, net			4
Other current assets	2,906		2,010
Property and equipment, net	6		8
Investment in subsidiaries	1,489,197		1,368,927
Other assets	1,325		1,325
Total assets	1,493,434		1,372,274
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	85		38
Due to affiliates	1,626,428		1,629,411
Accrued liabilities	359		234
Income taxes payable	5,093		585
Other liabilities	6,729		10,562
Deferred income tax liabilities, net	(185)
Total liabilities	1,638,509		1,640,830
Total stockholders’ (deficit) equity	(145,075)		(268,556)
Total liabilities and stockholders’ (deficit) equity	1,493,434		1,372,274
Sally Holdings and Sally Capital
Assets
Cash and cash equivalents	10		10	10		10
Other current assets	196		111
Investment in subsidiaries	4,206,154		4,044,669
Other assets	3,303		10,242
Total assets	4,209,663		4,055,032
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	3,456
Due to affiliates	982,434		888,141
Accrued liabilities	21,520		23,019
Income taxes payable	1,519		1,519
Long-term debt	1,713,068		1,773,426
Deferred income tax liabilities, net	(1,531)
Total liabilities	2,720,466		2,686,105
Total stockholders’ (deficit) equity	1,489,197		1,368,927
Total liabilities and stockholders’ (deficit) equity	4,209,663		4,055,032
Guarantor Subsidiaries
Assets
Cash and cash equivalents	49,719		29,050	28,211		22,090
Trade and other accounts receivable, net	57,983		53,295
Due from affiliates	2,691,139		2,598,681
Inventory	714,757		714,000
Other current assets	23,399		27,422
Property and equipment, net	230,007		232,941
Investment in subsidiaries	381,353		380,166
Goodwill and other intangible assets, net	456,574		459,348
Other assets	(3,441)		(4,797)
Total assets	4,601,490		4,490,106
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	197,401		233,936
Accrued liabilities	103,095		125,179
Long-term debt	3		1
Other liabilities	15,303		15,250
Deferred income tax liabilities, net	79,534		71,071
Total liabilities	395,336		445,437
Total stockholders’ (deficit) equity	4,206,154		4,044,669
Total liabilities and stockholders’ (deficit) equity	4,601,490		4,490,106
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	40,048		48,235	$ 39,835		$ 41,659
Trade and other accounts receivable, net	33,444		37,191
Inventory	238,286		230,338
Other current assets	13,394		13,417
Property and equipment, net	67,111		75,408
Goodwill and other intangible assets, net	145,362		149,275
Other assets	18,225		18,581
Total assets	555,870		572,445
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	51,528		69,267
Due to affiliates	82,277		81,129
Accrued liabilities	31,516		31,855
Income taxes payable	(332)		40
Long-term debt	853		882
Other liabilities	3,885		4,210
Deferred income tax liabilities, net	4,790		4,896
Total liabilities	174,517		192,279
Total stockholders’ (deficit) equity	381,353		380,166
Total liabilities and stockholders’ (deficit) equity	555,870		572,445
Consolidating Eliminations
Assets
Due from affiliates	(2,691,139)		(2,598,681)
Investment in subsidiaries	(6,076,704)		(5,793,762)
Total assets	(8,767,843)		(8,392,443)
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	(2,691,139)		(2,598,681)
Total liabilities	(2,691,139)		(2,598,681)
Total stockholders’ (deficit) equity	(6,076,704)		(5,793,762)
Total liabilities and stockholders’ (deficit) equity	$ (8,767,843)		$ (8,392,443)

Parent, Issuers, Guarantor an_4

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Earnings and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Mar. 31, 2018
Condensed Income Statements Captions [Line Items]
Net sales	$ 945,852		$ 975,321		$ 1,935,305	$ 1,970,286
Cost of products sold and distribution expenses	477,528		488,999		986,275	997,335
Gross profit	468,324		486,322		949,030	972,951
Selling, general and administrative expenses	361,626		368,461		728,614	739,748
Restructuring	(5,814)		6,759		(1,834)	11,969
Operating earnings	112,512		111,102		222,250	221,234
Interest expense (income)	23,821		25,262		48,310	49,277
Earnings before provision for income taxes	88,691		85,840		173,940	171,957
Provision (benefit) for income taxes	22,966		24,469		42,488	27,322
Net earnings	65,725	$ 65,727	61,371	$ 83,264	131,452	144,635
Other comprehensive income (loss), net of tax	1,142	$ (16,705)	12,747	$ (1,058)	(15,563)	11,689
Total comprehensive income	66,867		74,118		115,889	156,324
Parent
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	3,084		2,859		5,893	5,465
Operating earnings	(3,084)		(2,859)		(5,893)	(5,465)
Earnings before provision for income taxes	(3,084)		(2,859)		(5,893)	(5,465)
Provision (benefit) for income taxes	(791)		(828)		(1,512)	(1,079)
Equity in earnings of subsidiaries, net of tax	68,018		63,402		135,833	149,021
Net earnings	65,725		61,371		131,452	144,635
Total comprehensive income	65,725		61,371		131,452	144,635
Sally Holdings and Sally Capital
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	198		602		366	781
Operating earnings	(198)		(602)		(366)	(781)
Interest expense (income)	23,871		25,293		48,423	49,307
Earnings before provision for income taxes	(24,069)		(25,895)		(48,789)	(50,088)
Provision (benefit) for income taxes	(6,179)		(7,499)		(12,524)	(14,424)
Equity in earnings of subsidiaries, net of tax	85,908		81,798		172,098	184,685
Net earnings	68,018		63,402		135,833	149,021
Other comprehensive income (loss), net of tax	(2,140)		2,310		(4,949)	1,507
Total comprehensive income	65,878		65,712		130,884	150,528
Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	769,284		786,743		1,562,814	1,583,275
Related party sales	480		631		1,149	1,077
Cost of products sold and distribution expenses	383,147		390,891		787,187	794,701
Gross profit	386,617		396,483		776,776	789,651
Selling, general and administrative expenses	281,404		279,435		567,620	563,902
Restructuring	(5,814)		6,759		(1,834)	11,969
Operating earnings	111,027		110,289		210,990	213,780
Interest expense (income)	(1)		(3)		(2)	(3)
Earnings before provision for income taxes	111,028		110,292		210,992	213,783
Provision (benefit) for income taxes	28,795		30,758		54,478	22,843
Equity in earnings of subsidiaries, net of tax	3,675		2,264		15,584	(6,255)
Net earnings	85,908		81,798		172,098	184,685
Total comprehensive income	85,908		81,798		172,098	184,685
Non-Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	176,568		188,578		372,491	387,011
Cost of products sold and distribution expenses	94,861		98,739		200,237	203,711
Gross profit	81,707		89,839		172,254	183,300
Selling, general and administrative expenses	76,940		85,565		154,735	169,600
Operating earnings	4,767		4,274		17,519	13,700
Interest expense (income)	(49)		(28)		(111)	(27)
Earnings before provision for income taxes	4,816		4,302		17,630	13,727
Provision (benefit) for income taxes	1,141		2,038		2,046	19,982
Net earnings	3,675		2,264		15,584	(6,255)
Other comprehensive income (loss), net of tax	3,282		10,437		(10,614)	10,182
Total comprehensive income	6,957		12,701		4,970	3,927
Consolidating Eliminations
Condensed Income Statements Captions [Line Items]
Related party sales	(480)		(631)		(1,149)	(1,077)
Cost of products sold and distribution expenses	(480)		(631)		(1,149)	(1,077)
Equity in earnings of subsidiaries, net of tax	(157,601)		(147,464)		(323,515)	(327,451)
Net earnings	(157,601)		(147,464)		(323,515)	(327,451)
Total comprehensive income	$ (157,601)		$ (147,464)		$ (323,515)	$ (327,451)

Parent, Issuers, Guarantor an_5

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	$ 110,110	$ 179,450
Cash Flows from Investing Activities:
Payments for property and equipment	(46,398)	(38,693)
Proceeds from sale of property and equipment	12,010	14
Acquisitions, net of cash acquired	(2,848)	(9,175)
Net cash used by investing activities	(37,236)	(47,854)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	242,504	246,819
Repayments of long-term debt	(304,157)	(260,142)
Debt issuance costs		(1,151)
Repurchases of common stock		(114,699)
Proceeds from exercises of stock options	1,721	1,112
Net cash used by financing activities	(59,932)	(128,061)
Effect of foreign exchange rate changes on cash and cash equivalents	(460)	762
Net increase (decrease) in cash and cash equivalents	12,482	4,297
Cash and cash equivalents, beginning of period	77,295	63,759
Cash and cash equivalents, end of period	89,777	68,056
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	1,262	16,313
Cash Flows from Financing Activities:
Repurchases of common stock		(114,699)
Proceeds from exercises of stock options	1,721	1,112
Due to affiliates	(2,983)	97,274
Net cash used by financing activities	(1,262)	(16,313)
Sally Holdings and Sally Capital
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	(32,639)	(33,119)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	242,500	246,814
Repayments of long-term debt	(304,154)	(259,750)
Debt issuance costs		(1,151)
Due to affiliates	94,293	47,206
Net cash used by financing activities	32,639	33,119
Cash and cash equivalents, beginning of period	10	10
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	144,685	197,800
Cash Flows from Investing Activities:
Payments for property and equipment	(41,559)	(32,092)
Proceeds from sale of property and equipment	12,007
Acquisitions, net of cash acquired	(2,008)
Due from affiliates	(92,458)	(159,590)
Net cash used by investing activities	(124,018)	(191,682)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	4	5
Repayments of long-term debt	(2)	(2)
Net cash used by financing activities	2	3
Net increase (decrease) in cash and cash equivalents	20,669	6,121
Cash and cash equivalents, beginning of period	29,050	22,090
Cash and cash equivalents, end of period	49,719	28,211
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	(3,198)	(1,544)
Cash Flows from Investing Activities:
Payments for property and equipment	(4,839)	(6,601)
Proceeds from sale of property and equipment	3	14
Acquisitions, net of cash acquired	(840)	(9,175)
Net cash used by investing activities	(5,676)	(15,762)
Cash Flows from Financing Activities:
Repayments of long-term debt	(1)	(390)
Due to affiliates	1,148	15,110
Net cash used by financing activities	1,147	14,720
Effect of foreign exchange rate changes on cash and cash equivalents	(460)	762
Net increase (decrease) in cash and cash equivalents	(8,187)	(1,824)
Cash and cash equivalents, beginning of period	48,235	41,659
Cash and cash equivalents, end of period	40,048	39,835
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	92,458	159,590
Net cash used by investing activities	92,458	159,590
Cash Flows from Financing Activities:
Due to affiliates	(92,458)	(159,590)
Net cash used by financing activities	$ (92,458)	$ (159,590)

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Gain and Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Restructuring Cost And Reserve [Line Items]
Restructuring gain and expenses	$ (5,814)	$ 6,759	$ (1,834)	$ 11,969
Supply Chain Modernization
Restructuring Cost And Reserve [Line Items]
Restructuring gain and expenses	$ (5,814)		(5,814)
Restructuring charges			833
2018 Restructuring Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges		$ 6,759	$ 3,980	$ 11,969

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Changes in restructuring reserve
Gain on sale of properties		$ 6,548	$ (42)
Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		833
Cash Payments		680
Restructuring reserve, ending balance		153
Supply Chain Modernization | Secondary Headquarters and Fulfillment Center
Changes in restructuring reserve
Gain on sale of properties		6,600
Supply Chain Modernization | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges		600
2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		8,797
Restructuring charges	$ 6,759	3,980	$ 11,969
Cash Payments		12,619
Restructuring reserve, ending balance		158
2018 Restructuring Plan | Corporate
Changes in restructuring reserve
Restructuring charges		2,800
2018 Restructuring Plan | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges		1,100
Workforce reductions | Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		236
Cash Payments		83
Restructuring reserve, ending balance		153
Workforce reductions | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		3,444
Restructuring charges		643
Cash Payments		4,087
Facility Closures | Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		502
Cash Payments		502
Other | Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		95
Cash Payments		95
Other | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		2,266
Restructuring charges		835
Cash Payments		2,943
Restructuring reserve, ending balance		158
Consulting | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		3,087
Restructuring charges		2,502
Cash Payments		$ 5,589