Sally Beauty (SBH) 10-Q 31 Jul 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2019	Jul. 26, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	SBH
Entity Registrant Name	Sally Beauty Holdings, Inc.
Entity Central Index Key	0001368458
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		120,543,133
Entity File Number	1-33145
Entity Current Reporting Status	Yes
Entity Tax Identification Number	362257936
Entity Address, Address Line One	3001 Colorado Boulevard
Entity Address, City or Town	Denton
Entity Address, State or Province	Texas
Entity Address, Postal Zip Code	76210
City Area Code	940
Local Phone Number	898-7500

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 57,855	$ 77,295
Trade accounts receivable, net	44,680	48,417
Accounts receivable, other	52,316	42,073
Inventory	967,744	944,338
Other current assets	37,853	42,960
Total current assets	1,160,448	1,155,083
Property and equipment, net of accumulated depreciation of $652,839 at June 30, 2019 and $611,021 at September 30, 2018	292,371	308,357
Goodwill	533,963	535,925
Intangible assets, excluding goodwill, net of accumulated amortization of $140,739 at June 30, 2019 and $132,724 at September 30, 2018	65,442	72,698
Other assets	20,047	25,351
Total assets	2,072,271	2,097,414
Current liabilities:
Current maturities of long-term debt	21,002	5,501
Accounts payable	272,629	303,241
Accrued liabilities	146,209	180,287
Income taxes payable	1,214	2,144
Total current liabilities	441,054	491,173
Long-term debt	1,589,663	1,768,808
Other liabilities	25,709	30,022
Deferred income tax liabilities, net	86,310	75,967
Total liabilities	2,142,736	2,365,970
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 120,565 and 120,145 shares issued and 120,130 and 119,926 shares outstanding at June 30, 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	9,513
Accumulated earnings (deficit)	22,852	(179,764)
Accumulated other comprehensive loss, net of tax	(104,031)	(89,991)
Total stockholders’ deficit	(70,465)	(268,556)
Total liabilities and stockholders’ (deficit) equity	$ 2,072,271	$ 2,097,414

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 652,839	$ 611,021
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 140,739	$ 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	120,565,000	120,145,000
Common stock, shares outstanding	120,130,000	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		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net sales	$ 975,169	$ 996,283	$ 2,910,474	$ 2,966,568
Cost of goods sold	492,947	502,913	1,479,222	1,500,247
Gross profit	482,222	493,370	1,431,252	1,466,321
Selling, general and administrative expenses	360,183	378,598	1,088,797	1,118,345
Restructuring	1,908	12,544	74	24,513
Operating earnings	120,131	102,228	342,381	323,463
Interest expense	25,781	24,501	74,092	73,779
Earnings before provision for income taxes	94,350	77,727	268,289	249,684
Provision for income taxes	23,186	19,501	65,673	46,823
Net earnings	$ 71,164	$ 58,226	$ 202,616	$ 202,861
Earnings per share:
Basic	$ 0.59	$ 0.48	$ 1.69	$ 1.63
Diluted	$ 0.59	$ 0.48	$ 1.68	$ 1.62
Weighted average shares:
Basic	120,119	120,901	120,062	124,331
Diluted	120,977	121,673	120,928	125,111

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 71,164	$ 58,226	$ 202,616	$ 202,861
Other comprehensive income (loss):
Foreign currency translation adjustments	834	(22,168)	(9,591)	(11,986)
Interest rate caps, net of tax	586	308	(4,384)	1,815
Foreign exchange contracts, net of tax	103		(65)
Other comprehensive income (loss), net of tax	1,523	(21,860)	(14,040)	(10,171)
Total comprehensive income	$ 72,687	$ 36,366	$ 188,576	$ 192,690

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities:
Net earnings	$ 202,616	$ 202,861
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	80,425	81,428
Share-based compensation expense	7,728	8,237
Amortization of deferred financing costs	2,894	2,842
Loss on extinguishment of debt	951	876
Gain on disposal of equipment and other property	(6,557)
Deferred income taxes	12,095	(25,132)
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	3,361	(2,171)
Accounts receivable, other	(10,641)	(914)
Inventory	(28,283)	(24,119)
Other current assets	4,687	12,973
Other assets	(1,195)	341
Accounts payable and accrued liabilities	(59,105)	10,180
Income taxes payable	(926)	801
Other liabilities	(4,227)	13,727
Net cash provided by operating activities	203,823	281,930
Cash Flows from Investing Activities:
Payments for property and equipment	(66,763)	(62,190)
Proceeds from sale of property and equipment	12,021	19
Acquisitions, net of cash acquired	(2,763)	(9,175)
Net cash used by investing activities	(57,505)	(71,346)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	394,004	369,319
Repayments of long-term debt	(561,162)	(401,222)
Debt issuance costs		(1,151)
Payments for common stock repurchased		(164,838)
Proceeds from exercises of stock options	1,787	1,317
Net cash used by financing activities	(165,371)	(196,575)
Effect of foreign exchange rate changes on cash and cash equivalents	(387)	(913)
Net (decrease) increase in cash and cash equivalents	(19,440)	13,096
Cash and cash equivalents, beginning of period	77,295	63,759
Cash and cash equivalents, end of period	57,855	76,855
Supplemental Cash Flow Information:
Interest paid	82,903	83,344
Income taxes paid	62,852	53,559
Capital expenditures incurred but not paid	$ 3,116	$ 3,264

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Earnings (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	202,861
Other comprehensive income (loss)	(10,171)
Balance at Jun. 30, 2018	(326,209)	$ 1,199		(235,401)	(92,007)
Balance (in shares) at Jun. 30, 2018		119,882
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
Increase (Decrease) in Stockholders' Equity
Net earnings	58,226			58,226
Other comprehensive income (loss)	(21,860)				(21,860)
Repurchases and cancellations of common stock	(50,140)	$ (32)	(2,593)	(47,515)
Repurchases and cancellations of common stock (in shares)		(3,157)
Share-based compensation	2,387		2,387
Stock issued for stock options	207	$ 1	206
Stock issued for stock options (in shares)		37
Balance at Jun. 30, 2018	(326,209)	$ 1,199		(235,401)	(92,007)
Balance (in shares) at Jun. 30, 2018		119,882
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	$ 202,616
Other comprehensive income (loss)	(14,040)
Balance at Jun. 30, 2019	$ (70,465)	$ 1,201	9,513	22,852	(104,031)
Balance (in shares) at Jun. 30, 2019	120,130	120,130
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
Increase (Decrease) in Stockholders' Equity
Net earnings	71,164			71,164
Other comprehensive income (loss)	1,523				1,523
Share-based compensation	1,857		1,857
Stock issued for stock options	66		66
Stock issued for stock options (in shares)		23
Balance at Jun. 30, 2019	$ (70,465)	$ 1,201	$ 9,513	$ 22,852	$ (104,031)
Balance (in shares) at Jun. 30, 2019	120,130	120,130

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 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 June 30, 2019 and September 30, 2018, our consolidated results of operations, consolidated comprehensive income and consolidated statements of stockholders’ deficit for the three and nine months ended June 30, 2019 and 2018, and our consolidated cash flows for nine months ended June 30, 2019 and 2018. Certain amounts for the prior year have been conformed to the current year’s presentation.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 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	9 Months Ended
	Jun. 30, 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 June 30, 2019 and our condensed consolidated statements of earnings for the three and nine months ended June 30, 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 $ 37,853 $ 35,214 $ 2,639 Accrued liabilities $ 146,209 $ 143,570 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings For the three months ended June 30, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 975,169 $ 975,099 $ 70 Gross Profit 482,222 482,152 70 Selling, general and administrative expenses $ 360,183 $ 360,113 $ 70 For the nine months ended June 30, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 2,910,474 $ 2,910,229 $ 245 Gross Profit 1,431,252 1,431,007 245 Selling, general and administrative expenses $ 1,088,797 $ 1,088,552 $ 245 See note 4, Revenue Recognition Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases We have completed a preliminary assessment of the potential impact of adopting ASU No. 2016-02 on our consolidated financial statements. At June 30, 2019, adoption of ASU No. 2016-02 would have resulted in recognition of a right-of-use asset in the estimated amount of approximately $525.0

Revenue Recognition

Revenue Recognition	9 Months Ended
	Jun. 30, 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. However, 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 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 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 on our condensed consolidated balance sheets as of June 30, 2019 and September 30, 2018 (in thousands): June 30, 2019 September 30, 2018 Gift cards $ 4,354 $ 4,144 Rewards loyalty program 8,646 1,165 Total liability $ 13,000 $ 5,309

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 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 June 30, 2019 As of September 30, 2018 Financial assets Interest rate caps Level 2 $ 697 $ 8,367 Foreign exchange contracts Level 2 423 — Total financial assets $ 1,120 $ 8,367 Financial liabilities Foreign exchange contracts Level 2 $ 121 $ — Other fair value disclosures As of June 30, 2019 As of September 30, 2018 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 885,296 $ 873,513 $ 950,000 $ 911,490 Other long-term debt Level 2 741,741 713,353 845,383 824,951 Total debt $ 1,627,037 $ 1,586,866 $ 1,795,383 $ 1,736,441

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Jun. 30, 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 (9,591 ) (5,904 ) (478 ) (15,973 ) Reclassification to net earnings, net of tax — 1,520 413 1,933 Balance at June 30, 2019 $ (100,947 ) $ (3,019 ) $ (65 ) $ (104,031 ) 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	9 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Weighted-Average Shares	7. Weighted-Average Shares The following table sets forth the computations of basic and diluted weighted-average shares (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Weighted-average basic shares 120,119 120,901 120,062 124,331 Dilutive securities: Stock option and stock award programs 858 772 866 780 Weighted-average diluted shares 120,977 121,673 120,928 125,111 For the three and nine months ended June 30, 2019, options to purchase 5.0 million shares of our common stock were outstanding but not included in our computations of diluted earnings per share, since these options were anti-dilutive. For the three and nine months ended June 30, 2018, options to purchase 5.2 million shares of our common stock were outstanding but not included in the computations of diluted earnings per share, since these options were anti-dilutive.

Share-Based Payments

Share-Based Payments	9 Months Ended
	Jun. 30, 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 (113 ) 21.29 Unvested at June 30, 2019 443 $ 18.75 1.6 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 (137 ) 15.02 Forfeited or expired (989 ) 24.77 Outstanding at June 30, 2019 5,227 $ 22.03 6.0 $ 486 Exercisable at June 30, 2019 3,402 $ 23.62 4.6 $ 486 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 (28 ) 16.85 Forfeited (43 ) 17.73 Unvested at June 30, 2019 435 $ 17.71 1.9 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 (8 ) 18.14 Unvested at June 30, 2019 80 $ 18.14 0.3

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Jun. 30, 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 June 30, 2019 and 2018, amortization expense related to other intangible assets was $2.8 million and $3.2 million, respectively, and, for the nine months ended June 30, 2019 and 2018, amortization expense was $8.5 million and $8.8 million, respectively. During the nine months ended June 30, 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 $2.2 million and $0.7 million, respectively.

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	9 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	10. Short-term Borrowings and Long-term Debt At June 30, 2019, we had $[466.5] million available for borrowing under our asset-based senior secured loan facility (the “ABL facility”), including the Canadian sub-facility. At June 30, 2019, we were in compliance with the agreements and instruments governing our debt, including our financial covenants. During the three months ended June 30, 2019, we paid down $115.0 million aggregate principal amount of our term loan B. Additionally, we repurchased approximately $4.7 million aggregate principal amount of our 5.625% Senior Notes due 2025 (the “2025 Notes”) at a weighted-average price of 99.3% of face value, excluding accrued interest. In connection with debt repayment, we recognized a $1.4 million loss on the extinguishment of debt from the write-off of unamortized deferred financing costs. During the three months ended March 31, 2019, we commenced a tender offer for up to $100.0 million in aggregate purchase price of our 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	9 Months Ended
	Jun. 30, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	11. Derivative Instruments and Hedging Activities During the nine months ended June 30, 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 June 30, 2019, the notional amount we held through these forwards, based upon exchange rates at June 30, 2019, was as follows (in thousands): Notional Currency Notional Amount MXP $ 7,337 EUR 5,561 CAD 3,824 GBP 2,086 Total $ 18,808 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 June 30, 2019 valuations and exchange rates, we expect to reclassify approximately $0.7 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 variable tranche. The interest rate caps are comprised of individual caplets that expire ratably through June 30, 2023 and are designated as cash flow hedges. During the three months ended June 30, 2019, concurrent with the repayment of $115.0 million of the term loan B variable tranche, we dedesignated one interest rate cap and terminated $115.0 million in notional amount. Subsequently, we redesignated the remaining notional amounts of the interest rate cap. Once we determined the hedge transaction related to $115.0 million of the term loan B variable tranche principal would not occur, we reclassified a loss of $1.2 million from AOCL into interest expense. Furthermore, changes in fair value of the remaining hedged 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 June 30, 2019 September 30, 2018 Classification June 30, 2019 September 30, 2018 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 697 $ 8,367 N/A $ — $ — Foreign exchange contracts Other current assets 423 — Accrued liabilities 121 — $ 1,120 $ 8,367 $ 121 $ — The effects of our derivative financial instruments on our condensed consolidated statements of earnings were not material for the three and nine months ended June 30, 2019 and 2018, except for the loss recorded related to the interest rate cap as a described above.

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes Our effective tax rate for the three months ended June 30, 2019 and 2018 was 24.6% and 25.1%, respectively. For the three months ended June 30, 2019, our effective tax rate was favorably impacted by a lower federal statutory rate when compared to the prior year as a result of the Tax Cut and Jobs Act (“U.S. Tax Reform”), as well as improving operations in companies for which a valuation allowance is recorded. 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 nine months ended June 30, 2019 and 2018 was 24.5% and 18.8%, respectively. For the nine months ended June 30, 2018, our effective tax rate was favorably impacted by a net income tax benefit of $22.0 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 nine months ended June 30, 2019, we identified certain immaterial adjustments to our provisional calculations, including a benefit of $3.0 million related to the The U.S. Treasury Department has issued final regulations covering the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of U.S Tax Reform. Certain guidance included in these final regulations is inconsistent with our interpretation of the enacted tax law that led to the recognition of a $2.5 million benefit in the first quarter of the current fiscal year. Notwithstanding this inconsistency, we remain confident in our interpretation of the Internal Revenue Code and intend to defend this position through litigation, if necessary. However, if we are ultimately unsuccessful in defending our position, we may be required to reverse the benefit. 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 nine months ended June 30, 2019 and is expected to be immaterial for the full fiscal year 2019.

Business Segments

Business Segments	9 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Business Segments	13. Business Segments Segment data for the three and nine months ended June 30, 2019 and 2018 is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Net sales: SBS $ 575,025 $ 591,583 $ 1,721,238 $ 1,757,272 Beauty Systems Group ("BSG") 400,144 404,700 1,189,236 1,209,296 Total $ 975,169 $ 996,283 $ 2,910,474 $ 2,966,568 Earnings before provision for income taxes: Segment operating earnings: SBS $ 95,763 $ 94,912 $ 272,470 $ 271,834 BSG 61,552 62,039 180,401 186,553 Segment operating earnings 157,315 156,951 452,871 458,387 Unallocated expenses (35,276 ) (42,179 ) (110,416 ) (110,411 ) Restructuring (1,908 ) (12,544 ) (74 ) (24,513 ) Consolidated operating earnings 120,131 102,228 342,381 323,463 Interest expense (25,781 ) (24,501 ) (74,092 ) (73,779 ) Earnings before provision for income taxes $ 94,350 $ 77,727 $ 268,289 $ 249,684 Sales between segments, which are eliminated in consolidation, were not material during the three and nine months ended June 30, 2019 and 2018. Disaggregation of net sales by segment SBS Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Hair color 30.2 % 27.3 % 28.9 % 26.8 % Hair care 20.3 % 21.7 % 20.5 % 21.4 % Skin and nail care 15.5 % 16.3 % 14.9 % 15.2 % Styling tools 12.4 % 12.9 % 13.9 % 14.1 % Salon supplies and accessories 7.1 % 7.3 % 7.2 % 7.3 % Multicultural products 6.6 % 6.7 % 6.5 % 6.8 % Other Beauty items 7.9 % 7.8 % 8.1 % 8.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % BSG Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Hair color 40.5 % 39.2 % 39.5 % 38.2 % Hair care 36.1 % 34.9 % 34.6 % 34.2 % Skin and nail care 8.1 % 8.5 % 8.2 % 8.7 % Styling tools 3.4 % 3.5 % 3.5 % 4.0 % Other beauty items 6.6 % 6.4 % 6.3 % 6.2 % Promotional items 5.3 % 7.5 % 7.9 % 8.7 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Parent, Issuers, Guarantor and

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	9 Months Ended
	Jun. 30, 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 June 30, 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 $ 31,254 $ 26,591 $ — $ 57,855 Trade and other accounts receivable, net — — 60,003 36,993 — 96,996 Due from affiliates — — 2,818,602 — (2,818,602 ) — Inventory — — 721,063 246,681 — 967,744 Other current assets 2,755 88 21,034 13,976 — 37,853 Property and equipment, net 6 — 227,845 64,520 — 292,371 Investment in subsidiaries 1,563,789 4,299,448 390,061 — (6,253,298 ) — Goodwill and other intangible assets, net — — 454,443 144,962 — 599,405 Other assets 1,325 2,258 (1,654 ) 18,118 — 20,047 Total assets $ 1,567,875 $ 4,301,804 $ 4,722,651 $ 551,841 $ (9,071,900 ) $ 2,072,271 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 20 $ — $ 219,508 $ 53,101 $ — $ 272,629 Due to affiliates 1,631,574 1,118,896 — 68,132 (2,818,602 ) — Accrued liabilities 190 9,027 105,554 31,438 — 146,209 Income taxes payable 97 1,519 — (402 ) — 1,214 Long-term debt — 1,609,799 2 864 — 1,610,665 Other liabilities 6,729 — 15,096 3,884 — 25,709 Deferred income tax liabilities, net (270 ) (1,226 ) 83,043 4,763 — 86,310 Total liabilities 1,638,340 2,738,015 423,203 161,780 (2,818,602 ) 2,142,736 Total stockholders’ (deficit) equity (70,465 ) 1,563,789 4,299,448 390,061 (6,253,298 ) (70,465 ) Total liabilities and stockholders’ (deficit) equity $ 1,567,875 $ 4,301,804 $ 4,722,651 $ 551,841 $ (9,071,900 ) $ 2,072,271 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 June 30, 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 $ — $ — $ 789,534 $ 185,635 $ — $ 975,169 Related party sales — — 545 — (545 ) — Cost of products sold and distribution expenses — — 393,875 99,617 (545 ) 492,947 Gross profit — — 396,204 86,018 — 482,222 Selling, general and administrative expenses 2,564 123 281,520 75,976 — 360,183 Restructuring — — 1,908 — — 1,908 Operating earnings (loss) (2,564 ) (123 ) 112,776 10,042 — 120,131 Interest expense (income) — 25,824 (3 ) (40 ) — 25,781 Earnings (loss) before provision for income taxes (2,564 ) (25,947 ) 112,779 10,082 — 94,350 Provision (benefit) for income taxes (659 ) (6,659 ) 28,193 2,311 — 23,186 Equity in earnings of subsidiaries, net of tax 73,069 92,357 7,771 — (173,197 ) — Net earnings 71,164 73,069 92,357 7,771 (173,197 ) 71,164 Other comprehensive income, net of tax — 586 — 937 — 1,523 Total comprehensive income $ 71,164 $ 73,655 $ 92,357 $ 8,708 $ (173,197 ) $ 72,687 Condensed Consolidating Sta tement of Earnings and Comprehensive Income Three Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 798,185 $ 198,098 $ — $ 996,283 Related party sales — — 639 — (639 ) — Cost of products sold and distribution expenses — — 399,482 104,070 (639 ) 502,913 Gross profit — — 399,342 94,028 — 493,370 Selling, general and administrative expenses 2,777 367 292,178 83,276 — 378,598 Restructuring — — 12,544 — — 12,544 Operating earnings (loss) (2,777 ) (367 ) 94,620 10,752 — 102,228 Interest expense (income) — 24,510 2 (11 ) — 24,501 Earnings (loss) before provision for income taxes (2,777 ) (24,877 ) 94,618 10,763 — 77,727 Provision (benefit) for income taxes (804 ) (7,206 ) 23,823 3,688 — 19,501 Equity in earnings of subsidiaries, net of tax 60,199 77,870 7,075 — (145,144 ) — Net earnings 58,226 60,199 77,870 7,075 (145,144 ) 58,226 Other comprehensive income (loss), net of tax — 308 — (22,168 ) — (21,860 ) Total comprehensive income (loss) $ 58,226 $ 60,507 $ 77,870 $ (15,093 ) $ (145,144 ) $ 36,366 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 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 $ — $ — $ 2,352,348 $ 558,126 $ — $ 2,910,474 Related party sales — — 1,694 — (1,694 ) — Cost of products sold and distribution expenses — — 1,181,062 299,854 (1,694 ) 1,479,222 Gross profit — — 1,172,980 258,272 — 1,431,252 Selling, general and administrative expenses 8,457 489 849,140 230,711 — 1,088,797 Restructuring — — 74 — — 74 Operating earnings (loss) (8,457 ) (489 ) 323,766 27,561 — 342,381 Interest expense (income) — 74,248 (5 ) (151 ) — 74,092 Earnings (loss) before provision for income taxes (8,457 ) (74,737 ) 323,771 27,712 — 268,289 Provision (benefit) for income taxes (2,171 ) (19,184 ) 82,671 4,357 — 65,673 Equity in earnings of subsidiaries, net of tax 208,902 264,455 23,355 — (496,712 ) — Net earnings 202,616 208,902 264,455 23,355 (496,712 ) 202,616 Other comprehensive loss, net of tax — (4,384 ) — (9,656 ) — (14,040 ) Total comprehensive income $ 202,616 $ 204,518 $ 264,455 $ 13,699 $ (496,712 ) $ 188,576 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,381,460 $ 585,108 $ — $ 2,966,568 Related party sales — — 1,716 — (1,716 ) — Cost of products sold and distribution expenses — — 1,194,183 307,780 (1,716 ) 1,500,247 Gross profit — — 1,188,993 277,328 — 1,466,321 Selling, general and administrative expenses 8,242 1,148 856,080 252,875 — 1,118,345 Restructuring — — 24,513 — — 24,513 Operating earnings (loss) (8,242 ) (1,148 ) 308,400 24,453 — 323,463 Interest expense (income) — 73,817 (1 ) (37 ) — 73,779 Earnings (loss) before provision for income taxes (8,242 ) (74,965 ) 308,401 24,490 — 249,684 Provision (benefit) for income taxes (1,883 ) (21,630 ) 46,666 23,670 — 46,823 Equity in earnings of subsidiaries, net of tax 209,220 262,555 820 — (472,595 ) — Net earnings 202,861 209,220 262,555 820 (472,595 ) 202,861 Other comprehensive income (loss), net of tax — 1,815 — (11,986 ) — (10,171 ) Total comprehensive income (loss) $ 202,861 $ 211,035 $ 262,555 $ (11,166 ) $ (472,595 ) $ 192,690 Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 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 $ (3,949 ) $ (63,597 ) $ 270,637 $ 732 $ — $ 203,823 Cash Flows from Investing Activities: Payments for property and equipment (1 ) — (58,607 ) (8,155 ) — (66,763 ) Proceeds from sale of property and equipment — — 12,017 4 — 12,021 Acquisitions, net of cash acquired — — (1,923 ) (840 ) — (2,763 ) Due from affiliates — — (219,921 ) — 219,921 — Net cash used by investing activities (1 ) — (268,434 ) (8,991 ) 219,921 (57,505 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 394,000 4 — — 394,004 Repayments of long-term debt — (561,158 ) (3 ) (1 ) — (561,162 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,787 — — — — 1,787 Due to affiliates 2,163 230,755 — (12,997 ) (219,921 ) — Net cash provided (used) by financing activities 3,950 63,597 1 (12,998 ) (219,921 ) (165,371 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (387 ) — (387 ) Net increase (decrease) in cash and cash equivalents — — 2,204 (21,644 ) — (19,440 ) Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 31,254 $ 26,591 $ — $ 57,855 Condensed Consolidating Sta tement of Cash Flows Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 23,213 $ (62,729 ) $ 309,242 $ 12,204 $ — $ 281,930 Cash Flows from Investing Activities: Payments for property and equipment — — (51,138 ) (11,052 ) — (62,190 ) Proceeds from sale of property and equipment — — — 19 — 19 Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (252,809 ) — 252,809 — Net cash used by investing activities — — (303,947 ) (20,208 ) 252,809 (71,346 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 369,314 5 — — 369,319 Repayments of long-term debt — (400,624 ) (4 ) (594 ) — (401,222 ) Debt issuance costs — (1,151 ) — — — (1,151 ) Repurchases of common stock (164,838 ) — — — — (164,838 ) Proceeds from exercises of stock options 1,317 — — — — 1,317 Due to affiliates 140,308 95,190 — 17,311 (252,809 ) — Net cash provided (used) by financing activities (23,213 ) 62,729 1 16,717 (252,809 ) (196,575 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (913 ) — (913 ) Net increase (decrease) in cash and cash equivalents — — 5,296 7,800 — 13,096 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 27,386 $ 49,459 $ — $ 76,855

Restructuring

Restructuring	9 Months Ended
	Jun. 30, 2019
Restructuring And Related Activities [Abstract]
Restructuring	15. Restructuring Restructuring expense and gain for the three and nine months ended June 30, 2019 and 2018, are as follows (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2019 2018 2019 2018 Supply Chain Modernization $ 1,908 $ — $ (3,906 ) $ — 2018 Restructuring Plan — 12,544 3,980 24,513 Total expense (gain) $ 1,908 $ 12,544 $ 74 $ 24,513 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 costs 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 will be closing select distribution centers, including our Marinette, Wisconsin facility, and upgrading our e-commerce capabilities. Additionally, we will be opening 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 on our condensed consolidated balance sheets, is as follows (in thousands): Supply Chain Modernization Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at June 30, 2019 Workforce reductions $ — $ 1,743 $ 661 $ — $ 1,082 Facility closures — 884 551 — 333 Other — 114 114 — — Total $ — $ 2,741 $ 1,326 $ — $ 1,415 Expenses incurred in the nine months ended June 30, 2019, represent costs incurred by SBS of $1.1 million, BSG of $1.0 million and corporate of $0.6 million. The above table does not include a gain from selling our secondary headquarters and fulfillment center in Denton, Texas of $6.6 million. 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 on our condensed consolidated balance sheets, is as follows (in thousands): 2018 Restructuring Plan Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at June 30, 2019 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — $ — Consulting 3,087 2,502 5,589 — — Other 2,266 835 2,977 — 124 Total $ 8,797 $ 3,980 $ 12,653 $ — $ 124 Expenses incurred in the nine months ended June 30, 2019, represent costs incurred by SBS of $1.1 million and corporate of $2.8 million.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 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 ma tters 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. In the second quarter of fiscal year 2019, we paid the full amount of the assessment and have no remaining liability related to the data security incidents at June 30, 2019.

Accounting Changes and Recent_2

Accounting Changes and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Jun. 30, 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 June 30, 2019 and our condensed consolidated statements of earnings for the three and nine months ended June 30, 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 $ 37,853 $ 35,214 $ 2,639 Accrued liabilities $ 146,209 $ 143,570 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings For the three months ended June 30, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 975,169 $ 975,099 $ 70 Gross Profit 482,222 482,152 70 Selling, general and administrative expenses $ 360,183 $ 360,113 $ 70 For the nine months ended June 30, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 2,910,474 $ 2,910,229 $ 245 Gross Profit 1,431,252 1,431,007 245 Selling, general and administrative expenses $ 1,088,797 $ 1,088,552 $ 245 See note 4, Revenue Recognition
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases We have completed a preliminary assessment of the potential impact of adopting ASU No. 2016-02 on our consolidated financial statements. At June 30, 2019, adoption of ASU No. 2016-02 would have resulted in recognition of a right-of-use asset in the estimated amount of approximately $525.0

Accounting Changes and Recent_3

Accounting Changes and Recent Accounting Pronouncements (Tables)	9 Months Ended
	Jun. 30, 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 June 30, 2019 and our condensed consolidated statements of earnings for the three and nine months ended June 30, 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 $ 37,853 $ 35,214 $ 2,639 Accrued liabilities $ 146,209 $ 143,570 $ 2,639 Effect of ASU No. 2014-09 Adoption on Condensed Consolidated Statement of Earnings For the three months ended June 30, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 975,169 $ 975,099 $ 70 Gross Profit 482,222 482,152 70 Selling, general and administrative expenses $ 360,183 $ 360,113 $ 70 For the nine months ended June 30, 2019 Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 2,910,474 $ 2,910,229 $ 245 Gross Profit 1,431,252 1,431,007 245 Selling, general and administrative expenses $ 1,088,797 $ 1,088,552 $ 245

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Jun. 30, 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 on our condensed consolidated balance sheets as of June 30, 2019 and September 30, 2018 (in thousands): June 30, 2019 September 30, 2018 Gift cards $ 4,354 $ 4,144 Rewards loyalty program 8,646 1,165 Total liability $ 13,000 $ 5,309

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 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 June 30, 2019 As of September 30, 2018 Financial assets Interest rate caps Level 2 $ 697 $ 8,367 Foreign exchange contracts Level 2 423 — Total financial assets $ 1,120 $ 8,367 Financial liabilities Foreign exchange contracts Level 2 $ 121 $ — Other fair value disclosures As of June 30, 2019 As of September 30, 2018 Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 885,296 $ 873,513 $ 950,000 $ 911,490 Other long-term debt Level 2 741,741 713,353 845,383 824,951 Total debt $ 1,627,037 $ 1,586,866 $ 1,795,383 $ 1,736,441

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Jun. 30, 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 (9,591 ) (5,904 ) (478 ) (15,973 ) Reclassification to net earnings, net of tax — 1,520 413 1,933 Balance at June 30, 2019 $ (100,947 ) $ (3,019 ) $ (65 ) $ (104,031 )

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	9 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Schedule of computations of basic and diluted weighted-average shares	The following table sets forth the computations of basic and diluted weighted-average shares (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Weighted-average basic shares 120,119 120,901 120,062 124,331 Dilutive securities: Stock option and stock award programs 858 772 866 780 Weighted-average diluted shares 120,977 121,673 120,928 125,111

Share-Based Payments (Tables)

Share-Based Payments (Tables)	9 Months Ended
	Jun. 30, 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 (113 ) 21.29 Unvested at June 30, 2019 443 $ 18.75 1.6
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 (137 ) 15.02 Forfeited or expired (989 ) 24.77 Outstanding at June 30, 2019 5,227 $ 22.03 6.0 $ 486 Exercisable at June 30, 2019 3,402 $ 23.62 4.6 $ 486
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 (28 ) 16.85 Forfeited (43 ) 17.73 Unvested at June 30, 2019 435 $ 17.71 1.9
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 (8 ) 18.14 Unvested at June 30, 2019 80 $ 18.14 0.3

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Jun. 30, 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 June 30, 2019 September 30, 2018 Classification June 30, 2019 September 30, 2018 Derivatives designated as hedging instruments: Interest rate caps Other assets $ 697 $ 8,367 N/A $ — $ — Foreign exchange contracts Other current assets 423 — Accrued liabilities 121 — $ 1,120 $ 8,367 $ 121 $ —
Foreign Currency Forwards
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At June 30, 2019, the notional amount we held through these forwards, based upon exchange rates at June 30, 2019, was as follows (in thousands): Notional Currency Notional Amount MXP $ 7,337 EUR 5,561 CAD 3,824 GBP 2,086 Total $ 18,808

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three and nine months ended June 30, 2019 and 2018 is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Net sales: SBS $ 575,025 $ 591,583 $ 1,721,238 $ 1,757,272 Beauty Systems Group ("BSG") 400,144 404,700 1,189,236 1,209,296 Total $ 975,169 $ 996,283 $ 2,910,474 $ 2,966,568 Earnings before provision for income taxes: Segment operating earnings: SBS $ 95,763 $ 94,912 $ 272,470 $ 271,834 BSG 61,552 62,039 180,401 186,553 Segment operating earnings 157,315 156,951 452,871 458,387 Unallocated expenses (35,276 ) (42,179 ) (110,416 ) (110,411 ) Restructuring (1,908 ) (12,544 ) (74 ) (24,513 ) Consolidated operating earnings 120,131 102,228 342,381 323,463 Interest expense (25,781 ) (24,501 ) (74,092 ) (73,779 ) Earnings before provision for income taxes $ 94,350 $ 77,727 $ 268,289 $ 249,684
Schedule of disaggregation of net sales by segment	Disaggregation of net sales by segment SBS Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Hair color 30.2 % 27.3 % 28.9 % 26.8 % Hair care 20.3 % 21.7 % 20.5 % 21.4 % Skin and nail care 15.5 % 16.3 % 14.9 % 15.2 % Styling tools 12.4 % 12.9 % 13.9 % 14.1 % Salon supplies and accessories 7.1 % 7.3 % 7.2 % 7.3 % Multicultural products 6.6 % 6.7 % 6.5 % 6.8 % Other Beauty items 7.9 % 7.8 % 8.1 % 8.4 % Total 100.0 % 100.0 % 100.0 % 100.0 % BSG Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Hair color 40.5 % 39.2 % 39.5 % 38.2 % Hair care 36.1 % 34.9 % 34.6 % 34.2 % Skin and nail care 8.1 % 8.5 % 8.2 % 8.7 % Styling tools 3.4 % 3.5 % 3.5 % 4.0 % Other beauty items 6.6 % 6.4 % 6.3 % 6.2 % Promotional items 5.3 % 7.5 % 7.9 % 8.7 % 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)	9 Months Ended
	Jun. 30, 2019
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet June 30, 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 $ 31,254 $ 26,591 $ — $ 57,855 Trade and other accounts receivable, net — — 60,003 36,993 — 96,996 Due from affiliates — — 2,818,602 — (2,818,602 ) — Inventory — — 721,063 246,681 — 967,744 Other current assets 2,755 88 21,034 13,976 — 37,853 Property and equipment, net 6 — 227,845 64,520 — 292,371 Investment in subsidiaries 1,563,789 4,299,448 390,061 — (6,253,298 ) — Goodwill and other intangible assets, net — — 454,443 144,962 — 599,405 Other assets 1,325 2,258 (1,654 ) 18,118 — 20,047 Total assets $ 1,567,875 $ 4,301,804 $ 4,722,651 $ 551,841 $ (9,071,900 ) $ 2,072,271 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 20 $ — $ 219,508 $ 53,101 $ — $ 272,629 Due to affiliates 1,631,574 1,118,896 — 68,132 (2,818,602 ) — Accrued liabilities 190 9,027 105,554 31,438 — 146,209 Income taxes payable 97 1,519 — (402 ) — 1,214 Long-term debt — 1,609,799 2 864 — 1,610,665 Other liabilities 6,729 — 15,096 3,884 — 25,709 Deferred income tax liabilities, net (270 ) (1,226 ) 83,043 4,763 — 86,310 Total liabilities 1,638,340 2,738,015 423,203 161,780 (2,818,602 ) 2,142,736 Total stockholders’ (deficit) equity (70,465 ) 1,563,789 4,299,448 390,061 (6,253,298 ) (70,465 ) Total liabilities and stockholders’ (deficit) equity $ 1,567,875 $ 4,301,804 $ 4,722,651 $ 551,841 $ (9,071,900 ) $ 2,072,271 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 June 30, 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 $ — $ — $ 789,534 $ 185,635 $ — $ 975,169 Related party sales — — 545 — (545 ) — Cost of products sold and distribution expenses — — 393,875 99,617 (545 ) 492,947 Gross profit — — 396,204 86,018 — 482,222 Selling, general and administrative expenses 2,564 123 281,520 75,976 — 360,183 Restructuring — — 1,908 — — 1,908 Operating earnings (loss) (2,564 ) (123 ) 112,776 10,042 — 120,131 Interest expense (income) — 25,824 (3 ) (40 ) — 25,781 Earnings (loss) before provision for income taxes (2,564 ) (25,947 ) 112,779 10,082 — 94,350 Provision (benefit) for income taxes (659 ) (6,659 ) 28,193 2,311 — 23,186 Equity in earnings of subsidiaries, net of tax 73,069 92,357 7,771 — (173,197 ) — Net earnings 71,164 73,069 92,357 7,771 (173,197 ) 71,164 Other comprehensive income, net of tax — 586 — 937 — 1,523 Total comprehensive income $ 71,164 $ 73,655 $ 92,357 $ 8,708 $ (173,197 ) $ 72,687 Condensed Consolidating Sta tement of Earnings and Comprehensive Income Three Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 798,185 $ 198,098 $ — $ 996,283 Related party sales — — 639 — (639 ) — Cost of products sold and distribution expenses — — 399,482 104,070 (639 ) 502,913 Gross profit — — 399,342 94,028 — 493,370 Selling, general and administrative expenses 2,777 367 292,178 83,276 — 378,598 Restructuring — — 12,544 — — 12,544 Operating earnings (loss) (2,777 ) (367 ) 94,620 10,752 — 102,228 Interest expense (income) — 24,510 2 (11 ) — 24,501 Earnings (loss) before provision for income taxes (2,777 ) (24,877 ) 94,618 10,763 — 77,727 Provision (benefit) for income taxes (804 ) (7,206 ) 23,823 3,688 — 19,501 Equity in earnings of subsidiaries, net of tax 60,199 77,870 7,075 — (145,144 ) — Net earnings 58,226 60,199 77,870 7,075 (145,144 ) 58,226 Other comprehensive income (loss), net of tax — 308 — (22,168 ) — (21,860 ) Total comprehensive income (loss) $ 58,226 $ 60,507 $ 77,870 $ (15,093 ) $ (145,144 ) $ 36,366 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 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 $ — $ — $ 2,352,348 $ 558,126 $ — $ 2,910,474 Related party sales — — 1,694 — (1,694 ) — Cost of products sold and distribution expenses — — 1,181,062 299,854 (1,694 ) 1,479,222 Gross profit — — 1,172,980 258,272 — 1,431,252 Selling, general and administrative expenses 8,457 489 849,140 230,711 — 1,088,797 Restructuring — — 74 — — 74 Operating earnings (loss) (8,457 ) (489 ) 323,766 27,561 — 342,381 Interest expense (income) — 74,248 (5 ) (151 ) — 74,092 Earnings (loss) before provision for income taxes (8,457 ) (74,737 ) 323,771 27,712 — 268,289 Provision (benefit) for income taxes (2,171 ) (19,184 ) 82,671 4,357 — 65,673 Equity in earnings of subsidiaries, net of tax 208,902 264,455 23,355 — (496,712 ) — Net earnings 202,616 208,902 264,455 23,355 (496,712 ) 202,616 Other comprehensive loss, net of tax — (4,384 ) — (9,656 ) — (14,040 ) Total comprehensive income $ 202,616 $ 204,518 $ 264,455 $ 13,699 $ (496,712 ) $ 188,576 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,381,460 $ 585,108 $ — $ 2,966,568 Related party sales — — 1,716 — (1,716 ) — Cost of products sold and distribution expenses — — 1,194,183 307,780 (1,716 ) 1,500,247 Gross profit — — 1,188,993 277,328 — 1,466,321 Selling, general and administrative expenses 8,242 1,148 856,080 252,875 — 1,118,345 Restructuring — — 24,513 — — 24,513 Operating earnings (loss) (8,242 ) (1,148 ) 308,400 24,453 — 323,463 Interest expense (income) — 73,817 (1 ) (37 ) — 73,779 Earnings (loss) before provision for income taxes (8,242 ) (74,965 ) 308,401 24,490 — 249,684 Provision (benefit) for income taxes (1,883 ) (21,630 ) 46,666 23,670 — 46,823 Equity in earnings of subsidiaries, net of tax 209,220 262,555 820 — (472,595 ) — Net earnings 202,861 209,220 262,555 820 (472,595 ) 202,861 Other comprehensive income (loss), net of tax — 1,815 — (11,986 ) — (10,171 ) Total comprehensive income (loss) $ 202,861 $ 211,035 $ 262,555 $ (11,166 ) $ (472,595 ) $ 192,690
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 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 $ (3,949 ) $ (63,597 ) $ 270,637 $ 732 $ — $ 203,823 Cash Flows from Investing Activities: Payments for property and equipment (1 ) — (58,607 ) (8,155 ) — (66,763 ) Proceeds from sale of property and equipment — — 12,017 4 — 12,021 Acquisitions, net of cash acquired — — (1,923 ) (840 ) — (2,763 ) Due from affiliates — — (219,921 ) — 219,921 — Net cash used by investing activities (1 ) — (268,434 ) (8,991 ) 219,921 (57,505 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 394,000 4 — — 394,004 Repayments of long-term debt — (561,158 ) (3 ) (1 ) — (561,162 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,787 — — — — 1,787 Due to affiliates 2,163 230,755 — (12,997 ) (219,921 ) — Net cash provided (used) by financing activities 3,950 63,597 1 (12,998 ) (219,921 ) (165,371 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (387 ) — (387 ) Net increase (decrease) in cash and cash equivalents — — 2,204 (21,644 ) — (19,440 ) Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 31,254 $ 26,591 $ — $ 57,855 Condensed Consolidating Sta tement of Cash Flows Nine Months Ended June 30, 2018 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash provided (used) by operating activities $ 23,213 $ (62,729 ) $ 309,242 $ 12,204 $ — $ 281,930 Cash Flows from Investing Activities: Payments for property and equipment — — (51,138 ) (11,052 ) — (62,190 ) Proceeds from sale of property and equipment — — — 19 — 19 Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (252,809 ) — 252,809 — Net cash used by investing activities — — (303,947 ) (20,208 ) 252,809 (71,346 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 369,314 5 — — 369,319 Repayments of long-term debt — (400,624 ) (4 ) (594 ) — (401,222 ) Debt issuance costs — (1,151 ) — — — (1,151 ) Repurchases of common stock (164,838 ) — — — — (164,838 ) Proceeds from exercises of stock options 1,317 — — — — 1,317 Due to affiliates 140,308 95,190 — 17,311 (252,809 ) — Net cash provided (used) by financing activities (23,213 ) 62,729 1 16,717 (252,809 ) (196,575 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (913 ) — (913 ) Net increase (decrease) in cash and cash equivalents — — 5,296 7,800 — 13,096 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 27,386 $ 49,459 $ — $ 76,855

Restructuring (Tables)

Restructuring (Tables)	9 Months Ended
	Jun. 30, 2019
Summary of restructuring expense and gain	Restructuring expense and gain for the three and nine months ended June 30, 2019 and 2018, are as follows (in thousands): Three Months Ended Nine Months Ended June 30, June 30, 2019 2018 2019 2018 Supply Chain Modernization $ 1,908 $ — $ (3,906 ) $ — 2018 Restructuring Plan — 12,544 3,980 24,513 Total expense (gain) $ 1,908 $ 12,544 $ 74 $ 24,513
Supply Chain Modernization
Schedule of restructuring	The liability related to the supply chain modernization, which is included in accrued liabilities on our condensed consolidated balance sheets, is as follows (in thousands): Supply Chain Modernization Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at June 30, 2019 Workforce reductions $ — $ 1,743 $ 661 $ — $ 1,082 Facility closures — 884 551 — 333 Other — 114 114 — — Total $ — $ 2,741 $ 1,326 $ — $ 1,415
2018 Restructuring Plan
Schedule of restructuring	The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities on our condensed consolidated balance sheets, is as follows (in thousands): 2018 Restructuring Plan Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at June 30, 2019 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — $ — Consulting 3,087 2,502 5,589 — — Other 2,266 835 2,977 — 124 Total $ 8,797 $ 3,980 $ 12,653 $ — $ 124

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	Jun. 30, 2019	Sep. 30, 2018
Recent Accounting Pronouncements
Other current assets	$ 37,853	$ 42,960
Accrued liabilities	146,209	$ 180,287
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Other current assets	35,214
Accrued liabilities	143,570
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		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Recent Accounting Pronouncements
Net sales	$ 975,169	$ 996,283	$ 2,910,474	$ 2,966,568
Gross Profit	482,222	493,370	1,431,252	1,466,321
Selling, general and administrative expenses	360,183	$ 378,598	1,088,797	$ 1,118,345
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales	975,099		2,910,229
Gross Profit	482,152		1,431,007
Selling, general and administrative expenses	360,113		1,088,552
ASU 2014-09 | ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales	70		245
Gross Profit	70		245
Selling, general and administrative expenses	$ 70		$ 245

Accounting Changes and Recent_6

Accounting Changes and Recent Accounting Pronouncements (Details) - ASU 16-02 $ in Millions	Jun. 30, 2019USD ($)
Recent Accounting Pronouncements
Estimated amount of Right of use asset	$ 525
Lease liability	$ 525

Revenue Recognition - (Details)

Revenue Recognition - (Details)	9 Months Ended
	Jun. 30, 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	Jun. 30, 2019	Sep. 30, 2018
Contract With Customer Liability [Line Items]
Total liability	$ 13,000	$ 5,309
Gift Cards
Contract With Customer Liability [Line Items]
Total liability	4,354	4,144
Rewards Loyalty Program
Contract With Customer Liability [Line Items]
Total liability	$ 8,646	$ 1,165

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Long-term debt
Long-term debt, Carrying Value	$ 1,627,037	$ 1,795,383
Long-term debt, Fair Value	1,586,866	1,736,441
Level 2 | Other Long-Term Debt
Long-term debt
Long-term debt, Carrying Value	741,741	845,383
Long-term debt, Fair Value	713,353	824,951
Level 1 | Senior notes
Long-term debt
Long-term debt, Carrying Value	885,296	950,000
Long-term debt, Fair Value	873,513	911,490
Fair value measurement on recurring basis
Financial assets
Total financial assets	1,120	8,367
Fair value measurement on recurring basis | Level 2
Financial assets
Interest rate caps	697	$ 8,367
Foreign exchange contracts	423
Financial liabilities
Foreign exchange contracts	$ 121

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss - Change in AOCL (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2019USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ (268,556)
Balance	(70,465)
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	1,365
Other comprehensive loss before reclassification, net of tax	(5,904)
Reclassification to net earnings, net of tax	1,520
Balance	(3,019)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive loss before reclassification, net of tax	(478)
Reclassification to net earnings, net of tax	413
Balance	(65)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(91,356)
Other comprehensive loss before reclassification, net of tax	(9,591)
Balance	(100,947)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(89,991)
Other comprehensive loss before reclassification, net of tax	(15,973)
Reclassification to net earnings, net of tax	1,933
Balance	$ (104,031)

Weighted-Average Shares (Detail

Weighted-Average Shares (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share Reconciliation:
Weighted-average basic shares	120,119	120,901	120,062	124,331
Dilutive securities:
Stock option and stock award programs	858	772	866	780
Weighted-average diluted shares	120,977	121,673	120,928	125,111

Weighted-Average Shares - Addit

Weighted-Average Shares - Additional Information (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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	5.2	5	5.2

Share-Based Payments - Performa

Share-Based Payments - Performance-Based Awards (Details) - Performance Unit Awards - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 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)	(113)
Unvested at the end of the period (in shares)	443	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)	21.29
Unvested at the end of the period (in dollars per share)	$ 18.75	$ 20.88
Performance Unit Awards (in years)
Weighted Average Remaining Vesting Term (in Years)	1 year 7 months 6 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	9 Months Ended	12 Months Ended
	Jun. 30, 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	(137)
Forfeited or expired (in shares) | shares	(989)
Outstanding at the end of the period (in shares) | shares	5,227	5,405
Exercisable at the end of the period (in shares) | shares	3,402
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	15.02
Forfeited or expired (in dollars per share) | $ / shares	24.77
Outstanding at the end of the period (in dollars per share) | $ / shares	22.03	$ 23.04
Exercisable at the end of the period (in dollars per share) | $ / shares	$ 23.62
Stock Options, Weighted Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	6 years	5 years 4 months 24 days
Exercisable at June 30, 2019	4 years 7 months 6 days
Stock Options, Aggregate Intrinsic Value
Outstanding balance at period end (in dollars) | $	$ 486	$ 3,161
Exercisable at the end of the period (in dollars) | $	$ 486

Share-Based Payments - Restrict

Share-Based Payments - Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 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)	(28,000)
Forfeited (in shares)	(43,000)
Unvested at the end of the period (in shares)	435,000	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)	16.85
Forfeited (in dollars per share)	17.73
Unvested at the end of the period (in dollars per share)	$ 17.71	$ 16.98
Restricted stock (in years)
Weighted Average Remaining Vesting Term (in Years)	1 year 10 months 24 days	2 years 1 month 6 days

Share-Based Payments - Restri_2

Share-Based Payments - Restricted Stock Units (Details) - Restricted Stock Units	9 Months Ended
	Jun. 30, 2019$ / sharesshares
Restricted stock (in shares)
Granted (in shares) | shares	88,000
Forfeited (in shares) | shares	(8,000)
Unvested at the end of the period (in shares) | shares	80,000
Restricted Stock (in dollars per share)
Granted (in dollars per share) | $ / shares	$ 18.14
Forfeited (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)	3 months

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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	$ 2,800,000	$ 3,200,000	8,500,000	$ 8,800,000
Other intangible assets recorded in asset acquisitions			1,900,000
Goodwill, changes in foreign currency exchange rates			2,200,000
Other intangible assets, changes in foreign currency exchange rates			$ 700,000

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		9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2019	Jun. 30, 2018
Debt Instruments
Aggregate principal amount paid down			$ 561,162	$ 401,222
Gain (loss) on extinguishment of debt		$ 500	(951)	$ (876)
Tender offers commenced		100,000
Write off of unamortized debt issuance costs		700
Term loan B
Debt Instruments
Aggregate principal amount paid down	$ 115,000
Senior notes due Dec. 2025
Debt Instruments
Debt instrument repurchased, aggregate principal amount	$ 4,700	$ 57,500	$ 4,700
Interest rate (as a percent)	5.625%		5.625%
Total tender offer price	99.30%	98.00%
Gain (loss) on extinguishment of debt	$ (1,400)
Gain from discount paid under face value		$ 1,200
Senior notes due Nov. 2023
Debt Instruments
Debt instrument repurchased, aggregate principal amount		$ 2,600
Interest rate (as a percent)		5.50%
Total tender offer price		100.00%
Tender offer, sublimit		$ 25,000
Sally Holdings, LLC
Debt Instruments
Revolving credit facility	$ 466,500		$ 466,500

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - (Details)	3 Months Ended	9 Months Ended
	Jun. 30, 2019USD ($)instrument	Jun. 30, 2019USD ($)instrument	Jun. 30, 2018USD ($)	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0	0
Repayment of debt		$ 561,162,000	$ 401,222,000
Foreign Currency Forwards
Derivative Instruments
Notional Amount	$ 18,808,000	18,808,000
Interest rate caps | Term loan B variable tranche | Sally Holdings, LLC
Derivative Instruments
Notional Amount	115,000,000	$ 115,000,000		$ 550,000,000
Derivative instruments, expiration date		Jun. 30, 2023
Repayment of debt	115,000,000
Debt principal amount	115,000,000	$ 115,000,000
Reclassified loss from AOCL	1,200,000
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	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	$ 700,000	$ 700,000

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	Jun. 30, 2019USD ($)
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 18,808
MXP
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	7,337
EUR
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	5,561
CAD
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	3,824
GBP
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 2,086

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Sep. 30, 2018
Derivatives Designated as Hedging Instruments
Total derivatives designated as hedging instruments, Asset	$ 1,120	$ 8,367
Credit-risk-related Contingent Features
Total derivatives designated as hedging instruments, Liability	121
Other Assets
Derivatives Designated as Hedging Instruments
Interest rate caps	697	$ 8,367
Other current assets
Derivatives Designated as Hedging Instruments
Foreign exchange contracts	423
Accrued Liabilities
Credit-risk-related Contingent Features
Foreign exchange contracts	$ 121

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate	24.60%	25.10%	24.50%	18.80%
Federal statutory rate			21.00%		24.50%
Net benefit recorded as a result of the U.S. tax reform				$ (22)
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		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net sales:
Total net sales	$ 975,169	$ 996,283	$ 2,910,474	$ 2,966,568
Segment operating earnings:
Segment operating earnings	120,131	102,228	342,381	323,463
Restructuring	(1,908)	(12,544)	(74)	(24,513)
Interest expense	(25,781)	(24,501)	(74,092)	(73,779)
Earnings before provision for income taxes	94,350	77,727	268,289	249,684
Operating segments
Segment operating earnings:
Segment operating earnings	157,315	156,951	452,871	458,387
Corporate
Segment operating earnings:
Unallocated expenses	(35,276)	(42,179)	(110,416)	(110,411)
Sally Beauty Supply
Net sales:
Total net sales	575,025	591,583	1,721,238	1,757,272
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	95,763	94,912	272,470	271,834
Beauty Systems Group
Net sales:
Total net sales	400,144	404,700	1,189,236	1,209,296
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	$ 61,552	$ 62,039	$ 180,401	$ 186,553

Business Segments - Schedule of

Business Segments - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net - Product Concentration Risk	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 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	30.20%	27.30%	28.90%	26.80%
Sally Beauty Supply | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	20.30%	21.70%	20.50%	21.40%
Sally Beauty Supply | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	12.40%	12.90%	13.90%	14.10%
Sally Beauty Supply | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	15.50%	16.30%	14.90%	15.20%
Sally Beauty Supply | Salon supplies and accessories
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.10%	7.30%	7.20%	7.30%
Sally Beauty Supply | Multicultural products
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.60%	6.70%	6.50%	6.80%
Sally Beauty Supply | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.90%	7.80%	8.10%	8.40%
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	40.50%	39.20%	39.50%	38.20%
Beauty Systems Group | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	36.10%	34.90%	34.60%	34.20%
Beauty Systems Group | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.40%	3.50%	3.50%	4.00%
Beauty Systems Group | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.10%	8.50%	8.20%	8.70%
Beauty Systems Group | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.60%	6.40%	6.30%	6.20%
Beauty Systems Group | Promotional items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	5.30%	7.50%	7.90%	8.70%

Parent, Issuers, Guarantor an_3

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Assets
Cash and cash equivalents	$ 57,855			$ 77,295	$ 76,855			$ 63,759
Trade and other accounts receivable, net	96,996			90,490
Inventory	967,744			944,338
Other current assets	37,853			42,960
Property and equipment, net	292,371			308,357
Goodwill and other intangible assets, net	599,405			608,623
Other assets	20,047			25,351
Total assets	2,072,271			2,097,414
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	272,629			303,241
Accrued liabilities	146,209			180,287
Income taxes payable	1,214			2,144
Long-term debt	1,610,665			1,774,309
Other liabilities	25,709			30,022
Deferred income tax liabilities, net	86,310			75,967
Total liabilities	2,142,736			2,365,970
Total stockholders’ (deficit) equity	(70,465)	$ (145,075)	$ (214,731)	(268,556)	(326,209)	$ (315,029)	$ (342,635)	(363,616)
Total liabilities and stockholders’ (deficit) equity	2,072,271			2,097,414
Parent
Assets
Trade and other accounts receivable, net				4
Other current assets	2,755			2,010
Property and equipment, net	6			8
Investment in subsidiaries	1,563,789			1,368,927
Other assets	1,325			1,325
Total assets	1,567,875			1,372,274
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	20			38
Due to affiliates	1,631,574			1,629,411
Accrued liabilities	190			234
Income taxes payable	97			585
Other liabilities	6,729			10,562
Deferred income tax liabilities, net	(270)
Total liabilities	1,638,340			1,640,830
Total stockholders’ (deficit) equity	(70,465)			(268,556)
Total liabilities and stockholders’ (deficit) equity	1,567,875			1,372,274
Sally Holdings and Sally Capital
Assets
Cash and cash equivalents	10			10	10			10
Other current assets	88			111
Investment in subsidiaries	4,299,448			4,044,669
Other assets	2,258			10,242
Total assets	4,301,804			4,055,032
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	1,118,896			888,141
Accrued liabilities	9,027			23,019
Income taxes payable	1,519			1,519
Long-term debt	1,609,799			1,773,426
Deferred income tax liabilities, net	(1,226)
Total liabilities	2,738,015			2,686,105
Total stockholders’ (deficit) equity	1,563,789			1,368,927
Total liabilities and stockholders’ (deficit) equity	4,301,804			4,055,032
Guarantor Subsidiaries
Assets
Cash and cash equivalents	31,254			29,050	27,386			22,090
Trade and other accounts receivable, net	60,003			53,295
Due from affiliates	2,818,602			2,598,681
Inventory	721,063			714,000
Other current assets	21,034			27,422
Property and equipment, net	227,845			232,941
Investment in subsidiaries	390,061			380,166
Goodwill and other intangible assets, net	454,443			459,348
Other assets	(1,654)			(4,797)
Total assets	4,722,651			4,490,106
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	219,508			233,936
Accrued liabilities	105,554			125,179
Long-term debt	2			1
Other liabilities	15,096			15,250
Deferred income tax liabilities, net	83,043			71,071
Total liabilities	423,203			445,437
Total stockholders’ (deficit) equity	4,299,448			4,044,669
Total liabilities and stockholders’ (deficit) equity	4,722,651			4,490,106
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	26,591			48,235	$ 49,459			$ 41,659
Trade and other accounts receivable, net	36,993			37,191
Inventory	246,681			230,338
Other current assets	13,976			13,417
Property and equipment, net	64,520			75,408
Goodwill and other intangible assets, net	144,962			149,275
Other assets	18,118			18,581
Total assets	551,841			572,445
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	53,101			69,267
Due to affiliates	68,132			81,129
Accrued liabilities	31,438			31,855
Income taxes payable	(402)			40
Long-term debt	864			882
Other liabilities	3,884			4,210
Deferred income tax liabilities, net	4,763			4,896
Total liabilities	161,780			192,279
Total stockholders’ (deficit) equity	390,061			380,166
Total liabilities and stockholders’ (deficit) equity	551,841			572,445
Consolidating Eliminations
Assets
Due from affiliates	(2,818,602)			(2,598,681)
Investment in subsidiaries	(6,253,298)			(5,793,762)
Total assets	(9,071,900)			(8,392,443)
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	(2,818,602)			(2,598,681)
Total liabilities	(2,818,602)			(2,598,681)
Total stockholders’ (deficit) equity	(6,253,298)			(5,793,762)
Total liabilities and stockholders’ (deficit) equity	$ (9,071,900)			$ (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						9 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018
Condensed Income Statements Captions [Line Items]
Net sales	$ 975,169			$ 996,283			$ 2,910,474	$ 2,966,568
Cost of products sold and distribution expenses	492,947			502,913			1,479,222	1,500,247
Gross profit	482,222			493,370			1,431,252	1,466,321
Selling, general and administrative expenses	360,183			378,598			1,088,797	1,118,345
Restructuring	1,908			12,544			74	24,513
Operating earnings	120,131			102,228			342,381	323,463
Interest expense (income)	25,781			24,501			74,092	73,779
Earnings before provision for income taxes	94,350			77,727			268,289	249,684
Provision (benefit) for income taxes	23,186			19,501			65,673	46,823
Net earnings	71,164	$ 65,725	$ 65,727	58,226	$ 61,371	$ 83,264	202,616	202,861
Other comprehensive income (loss), net of tax	1,523	$ 1,142	$ (16,705)	(21,860)	$ 12,747	$ (1,058)	(14,040)	(10,171)
Total comprehensive income	72,687			36,366			188,576	192,690
Parent
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	2,564			2,777			8,457	8,242
Operating earnings	(2,564)			(2,777)			(8,457)	(8,242)
Earnings before provision for income taxes	(2,564)			(2,777)			(8,457)	(8,242)
Provision (benefit) for income taxes	(659)			(804)			(2,171)	(1,883)
Equity in earnings of subsidiaries, net of tax	73,069			60,199			208,902	209,220
Net earnings	71,164			58,226			202,616	202,861
Total comprehensive income	71,164			58,226			202,616	202,861
Sally Holdings and Sally Capital
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	123			367			489	1,148
Operating earnings	(123)			(367)			(489)	(1,148)
Interest expense (income)	25,824			24,510			74,248	73,817
Earnings before provision for income taxes	(25,947)			(24,877)			(74,737)	(74,965)
Provision (benefit) for income taxes	(6,659)			(7,206)			(19,184)	(21,630)
Equity in earnings of subsidiaries, net of tax	92,357			77,870			264,455	262,555
Net earnings	73,069			60,199			208,902	209,220
Other comprehensive income (loss), net of tax	586			308			(4,384)	1,815
Total comprehensive income	73,655			60,507			204,518	211,035
Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	789,534			798,185			2,352,348	2,381,460
Related party sales	545			639			1,694	1,716
Cost of products sold and distribution expenses	393,875			399,482			1,181,062	1,194,183
Gross profit	396,204			399,342			1,172,980	1,188,993
Selling, general and administrative expenses	281,520			292,178			849,140	856,080
Restructuring	1,908			12,544			74	24,513
Operating earnings	112,776			94,620			323,766	308,400
Interest expense (income)	(3)			2			(5)	(1)
Earnings before provision for income taxes	112,779			94,618			323,771	308,401
Provision (benefit) for income taxes	28,193			23,823			82,671	46,666
Equity in earnings of subsidiaries, net of tax	7,771			7,075			23,355	820
Net earnings	92,357			77,870			264,455	262,555
Total comprehensive income	92,357			77,870			264,455	262,555
Non-Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	185,635			198,098			558,126	585,108
Cost of products sold and distribution expenses	99,617			104,070			299,854	307,780
Gross profit	86,018			94,028			258,272	277,328
Selling, general and administrative expenses	75,976			83,276			230,711	252,875
Operating earnings	10,042			10,752			27,561	24,453
Interest expense (income)	(40)			(11)			(151)	(37)
Earnings before provision for income taxes	10,082			10,763			27,712	24,490
Provision (benefit) for income taxes	2,311			3,688			4,357	23,670
Net earnings	7,771			7,075			23,355	820
Other comprehensive income (loss), net of tax	937			(22,168)			(9,656)	(11,986)
Total comprehensive income	8,708			(15,093)			13,699	(11,166)
Consolidating Eliminations
Condensed Income Statements Captions [Line Items]
Related party sales	(545)			(639)			(1,694)	(1,716)
Cost of products sold and distribution expenses	(545)			(639)			(1,694)	(1,716)
Equity in earnings of subsidiaries, net of tax	(173,197)			(145,144)			(496,712)	(472,595)
Net earnings	(173,197)			(145,144)			(496,712)	(472,595)
Total comprehensive income	$ (173,197)			$ (145,144)			$ (496,712)	$ (472,595)

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	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	$ 203,823	$ 281,930
Cash Flows from Investing Activities:
Payments for property and equipment	(66,763)	(62,190)
Proceeds from sale of property and equipment	12,021	19
Acquisitions, net of cash acquired	(2,763)	(9,175)
Net cash used by investing activities	(57,505)	(71,346)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	394,004	369,319
Repayments of long-term debt	(561,162)	(401,222)
Debt issuance costs		(1,151)
Repurchases of common stock		(164,838)
Proceeds from exercises of stock options	1,787	1,317
Net cash used by financing activities	(165,371)	(196,575)
Effect of foreign exchange rate changes on cash and cash equivalents	(387)	(913)
Net increase (decrease) in cash and cash equivalents	(19,440)	13,096
Cash and cash equivalents, beginning of period	77,295	63,759
Cash and cash equivalents, end of period	57,855	76,855
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	(3,949)	23,213
Cash Flows from Investing Activities:
Payments for property and equipment	(1)
Net cash used by investing activities	(1)
Cash Flows from Financing Activities:
Repurchases of common stock		(164,838)
Proceeds from exercises of stock options	1,787	1,317
Due to affiliates	2,163	140,308
Net cash used by financing activities	3,950	(23,213)
Sally Holdings and Sally Capital
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	(63,597)	(62,729)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	394,000	369,314
Repayments of long-term debt	(561,158)	(400,624)
Debt issuance costs		(1,151)
Due to affiliates	230,755	95,190
Net cash used by financing activities	63,597	62,729
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	270,637	309,242
Cash Flows from Investing Activities:
Payments for property and equipment	(58,607)	(51,138)
Proceeds from sale of property and equipment	12,017
Acquisitions, net of cash acquired	(1,923)
Due from affiliates	(219,921)	(252,809)
Net cash used by investing activities	(268,434)	(303,947)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	4	5
Repayments of long-term debt	(3)	(4)
Net cash used by financing activities	1	1
Net increase (decrease) in cash and cash equivalents	2,204	5,296
Cash and cash equivalents, beginning of period	29,050	22,090
Cash and cash equivalents, end of period	31,254	27,386
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	732	12,204
Cash Flows from Investing Activities:
Payments for property and equipment	(8,155)	(11,052)
Proceeds from sale of property and equipment	4	19
Acquisitions, net of cash acquired	(840)	(9,175)
Net cash used by investing activities	(8,991)	(20,208)
Cash Flows from Financing Activities:
Repayments of long-term debt	(1)	(594)
Due to affiliates	(12,997)	17,311
Net cash used by financing activities	(12,998)	16,717
Effect of foreign exchange rate changes on cash and cash equivalents	(387)	(913)
Net increase (decrease) in cash and cash equivalents	(21,644)	7,800
Cash and cash equivalents, beginning of period	48,235	41,659
Cash and cash equivalents, end of period	26,591	49,459
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	219,921	252,809
Net cash used by investing activities	219,921	252,809
Cash Flows from Financing Activities:
Due to affiliates	(219,921)	(252,809)
Net cash used by financing activities	$ (219,921)	$ (252,809)

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Expense and Gain (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Restructuring Cost And Reserve [Line Items]
Restructuring expense and gain	$ 1,908	$ 12,544	$ 74	$ 24,513
Supply Chain Modernization
Restructuring Cost And Reserve [Line Items]
Restructuring expense and gain	$ 1,908		(3,906)
Restructuring charges			2,741
2018 Restructuring Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges		$ 12,544	$ 3,980	$ 24,513

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Changes in restructuring reserve
Gain on sale of properties		$ 6,557
Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		2,741
Cash Payments		1,326
Restructuring reserve, ending balance		1,415
Supply Chain Modernization | Secondary Headquarters and Fulfillment Center
Changes in restructuring reserve
Gain on sale of properties		6,600
Supply Chain Modernization | Corporate
Changes in restructuring reserve
Restructuring charges		600
Supply Chain Modernization | Beauty Systems Group
Changes in restructuring reserve
Restructuring charges		1,000
Supply Chain Modernization | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges		1,100
2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		8,797
Restructuring charges	$ 12,544	3,980	$ 24,513
Cash Payments		12,653
Restructuring reserve, ending balance		124
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		1,743
Cash Payments		661
Restructuring reserve, ending balance		1,082
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		884
Cash Payments		551
Restructuring reserve, ending balance		333
Other | Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		114
Cash Payments		114
Other | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		2,266
Restructuring charges		835
Cash Payments		2,977
Restructuring reserve, ending balance		124
Consulting | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		3,087
Restructuring charges		2,502
Cash Payments		$ 5,589

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	Jun. 30, 2019USD ($)
Commitments And Contingencies Disclosure [Abstract]
Data security incidents, remaining liability	$ 0