Sally Beauty (SBH) 10-K 25 Nov 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2019	Nov. 15, 2019	Mar. 31, 2019
Cover [Abstract]
Entity Registrant Name	Sally Beauty Holdings, Inc.
Entity Central Index Key	0001368458
Document Type	10-K
Document Period End Date	Sep. 30, 2019
Trading Symbol	SBH
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Public Float			$ 2,202,239,000
Entity Common Stock, Shares Outstanding		116,326,372
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock
Entity Interactive Data Current	Yes
Entity File Number	1-33145
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2257936
Entity Address, Address Line One	3001 Colorado Boulevard
Entity Address, City or Town	Denton
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76210
City Area Code	940
Local Phone Number	898-7500
Document Annual Report	true
Document Transition Report	false
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 71,495	$ 77,295
Trade accounts receivable, net	43,136	48,417
Accounts receivable, other	61,403	42,073
Inventory	952,907	944,338
Other current assets	34,612	42,960
Total current assets	1,163,553	1,155,083
Property and equipment, net	319,628	308,357
Goodwill	530,786	535,925
Intangible assets, excluding goodwill, net	62,051	72,698
Other assets	22,428	25,351
Total assets	2,098,446	2,097,414
Current liabilities:
Current maturities of long-term debt	1	5,501
Accounts payable	278,688	303,241
Accrued liabilities	169,054	180,287
Income taxes payable	8,336	2,144
Total current liabilities	456,079	491,173
Long-term debt	1,594,542	1,768,808
Other liabilities	27,757	30,022
Deferred income tax liabilities, net	80,391	75,967
Total liabilities	2,158,769	2,365,970
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 116,986 and 120,145 shares issued and 116,725 and 119,926 shares outstanding at September 30, 2019 and 2018, respectively	1,167	1,199
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Accumulated earnings (deficit)	55,797	(179,764)
Accumulated other comprehensive loss, net of tax	(117,287)	(89,991)
Total stockholders’ deficit	(60,323)	(268,556)
Total liabilities and stockholders’ deficit	$ 2,098,446	$ 2,097,414

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Statement Of Financial Position [Abstract]
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	116,986,000	120,145,000
Common stock, shares outstanding	116,725,000	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

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net sales	$ 3,876,411	$ 3,932,565	$ 3,938,317
Cost of goods sold	1,965,869	1,988,152	1,973,422
Gross profit	1,910,542	1,944,413	1,964,895
Selling, general and administrative expenses	1,452,751	1,484,209	1,463,619
Restructuring	(682)	33,615	22,679
Operating earnings	458,473	426,589	478,597
Interest expense	96,309	98,162	132,899
Earnings before provision for income taxes	362,164	328,427	345,698
Provision for income taxes	90,541	70,380	130,622
Net earnings	$ 271,623	$ 258,047	$ 215,076
Earnings per share:
Basic	$ 2.27	$ 2.09	$ 1.56
Diluted	$ 2.26	$ 2.08	$ 1.56
Weighted average shares:
Basic	119,636	123,190	137,533
Diluted	120,283	123,832	138,176

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 271,623	$ 258,047	$ 215,076
Other comprehensive income (loss):
Foreign currency translation adjustments	(22,576)	(10,604)	19,299
Interest rate caps, net of tax	(4,566)	2,449	(1,084)
Foreign exchange contracts, net of tax	(154)
Other comprehensive income (loss), net of tax	(27,296)	(8,155)	18,215
Total comprehensive income	$ 244,327	$ 249,892	$ 233,291

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Cash Flows from Operating Activities:
Net earnings	$ 271,623	$ 258,047	$ 215,076
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	107,658	108,829	112,323
Share-based compensation expense	9,180	10,519	10,507
Amortization of deferred financing costs	3,786	3,832	3,264
Net loss/(gain) on disposal and impairment of assets	(7,544)	181	8,464
Net loss on extinguishment of debt	951	876	27,981
Deferred income taxes	5,532	(20,538)	14,122
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	4,399	(1,949)	702
Accounts receivable, other	(20,432)	2,743	(7,520)
Inventory	(20,272)	(16,450)	(16,343)
Other current assets	7,418	12,164	1,480
Other assets	(3,225)	48	(6,700)
Accounts payable and accrued liabilities	(42,719)	4,592	(18,779)
Income taxes payable	6,144	(221)	323
Other liabilities	(2,084)	9,988	(1,614)
Net cash provided by operating activities	320,415	372,661	343,286
Cash Flows from Investing Activities:
Payments for property and equipment	(107,755)	(86,507)	(89,666)
Proceeds from sales of property and equipment	15,312	369	41
Acquisitions, net of cash acquired	(3,424)	(9,175)
Net cash used by investing activities	(95,867)	(95,313)	(89,625)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	593,504	461,819	1,277,250
Repayments of long-term debt	(777,538)	(558,599)	(1,216,643)
Debt issuance costs		(1,151)	(8,376)
Payments for common stock repurchased	(47,434)	(166,701)	(346,873)
Proceeds from exercises of stock options	2,160	1,350	17,339
Net cash used by financing activities	(229,308)	(263,282)	(277,303)
Effect of foreign exchange rate changes on cash and cash equivalents	(1,040)	(530)	779
Net increase (decrease) in cash and cash equivalents	(5,800)	13,536	(22,863)
Cash and cash equivalents, beginning of period	77,295	63,759	86,622
Cash and cash equivalents, end of period	71,495	77,295	63,759
Supplemental Cash Flow Information:
Interest paid	95,171	90,077	141,883
Income taxes paid	83,783	70,253	114,553
Capital expenditures incurred but not paid	$ 26,233	$ 15,315	$ 8,367

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Earnings (Deficit)	Accumulated Other Comprehensive Income (Loss)
Balance at Sep. 30, 2016	$ (276,166)	$ 1,446		$ (177,561)	$ (100,051)
Balance (in shares) at Sep. 30, 2016		144,571
Increase (Decrease) in Stockholders' Equity
Net earnings	215,076			215,076
Other comprehensive income (loss), net of tax	18,215				18,215
Repurchases of common stock	(346,051)	$ (161)	$ (25,299)	(320,591)
Repurchases of common stock (in shares)		(16,072)
Share-based compensation	10,507	$ 1	10,506
Share-based compensation (in shares)		122
Stock issued for stock options	14,803	$ 10	14,793
Stock issued for stock options (in shares)		964
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	258,047			258,047
Other comprehensive income (loss), net of tax	(8,155)				(8,155)
Repurchases of common stock	(166,701)	$ (100)	(11,866)	(154,735)
Repurchases of common stock (in shares)		(9,987)
Share-based compensation	10,519	$ 2	10,517
Share-based compensation (in shares)		178
Stock issued for stock options	1,350	$ 1	1,349
Stock issued for stock options (in shares)		150
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	$ 271,623			271,623
Other comprehensive income (loss), net of tax	(27,296)				(27,296)
Repurchases of common stock	(47,434)	$ (36)	(11,336)	(36,062)
Repurchases of common stock (in shares)		(3,562)
Share-based compensation	9,180	$ 2	9,178
Share-based compensation (in shares)		209
Stock issued for stock options	2,160	$ 2	$ 2,158
Stock issued for stock options (in shares)		152
Balance at Sep. 30, 2019	$ (60,323)	$ 1,167		$ 55,797	$ (117,287)
Balance (in shares) at Sep. 30, 2019	116,725	116,725

Basis of Presentation

Basis of Presentation	12 Months Ended
	Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	2. The preparation of financial statements in conformity with GAAP requires us to interpret and apply accounting standards and to develop and follow accounting policies consistent with such standards. The following is a summary of the significant accounting policies used in preparing our consolidated financial statements. Use of Estimates In accordance with GAAP, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities in the consolidated financial statements. Actual results may differ from these estimates in amounts that may be material to our consolidated financial statements. Cash and Cash Equivalents Cash represents currency on hand, debt and credit card receivable and third-party online payment systems transactions, while cash equivalents consist of highly liquid investments which have an original maturity of three months or less. Cash and cash equivalents are stated at cost, which approximates fair value. Trade Accounts Receivable and Accounts Receivable, Other Trade accounts receivable consist of credit extended directly to certain customers who meet our credit requirements in the ordinary course of business and are stated at their carrying values, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is regularly reviewed on the basis of our historical collection data and current customer information. Customer account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. At September 30, 2019 and 2018, our allowance for doubtful accounts was $1.7 million and $1.8 million, respectively. Other accounts receivable consist primarily of amounts due from vendors under various contractual agreements and include volume rebates and other promotional considerations. Inventory and Cost of Goods Sold Inventory is stated at the lower of cost (FIFO) or net realizable value. Inventory cost reflects actual product costs, the cost of transportation to our distribution centers and certain shipping and handling costs, such as freight from the distribution centers to the stores and handling costs incurred at the distribution centers. When assessing the net realizable value of inventory, we consider several factors including estimates of future demand for our products, historical turn-over rates, the age and sales history of the inventory, and historic and anticipated changes in stock keeping units. Physical inventory counts are performed at substantially all stores and significant distribution centers at least annually. Upon completion of physical inventory counts, our consolidated financial statements are adjusted to reflect actual quantities on hand. Between physical counts, we estimate inventory shrinkage based on our historical experience. We have policies and processes in place that are intended to minimize inventory shrinkage. Cost of goods sold includes actual product costs, the cost of transportation to our distribution centers, operating cost associated with our distribution centers (including employee compensation expense, depreciation and amortization, rent and other occupancy-related expenses), vendor rebates and allowances, inventory shrinkage and certain shipping and handling costs, such as freight from the distribution centers to the stores. All other shipping and handling costs are included in selling, general and administrative expenses when incurred. We deem cash consideration received from a supplier to be a reduction of the cost of inventory purchased, unless it is in exchange for an asset or service or a reimbursement of a specific, incremental, identifiable cost incurred by us in selling the vendor’s products. The majority of cash consideration we receive is considered to be a reduction of inventory and a subsequent reduction in cost of goods sold as the related products are sold. Lease Accounting The majority of our lease agreements are for company-operated stores, warehouse/distribution facilities and office space and are accounted for as operating leases. Rent expense (including any rent abatements or escalation charges) is recognized on a straight-line basis from the date we take possession of the property to begin preparation of the site for occupancy to the end of the lease term, including renewal options that are considered reasonably assured. Certain lease agreements to which we are a party provide for contingent rents that are determined as a percentage of revenues in excess of specified levels. We record a contingent rent liability, along with the corresponding rent expense, when the specified levels of revenue have been achieved or when we determine that achieving the specified levels of revenue during the fiscal year is probable. Certain lease agreements to which we are a party provide for tenant improvement allowances. Tenant improvement allowances are recorded as deferred lease credits, included in accrued liabilities and other liabilities, as appropriate, on our consolidated balance sheets, and amortized on a straight-line basis over the lease term (including renewal options that are determined reasonably assured) as a reduction of rent expense. The amortization period used for deferred lease credits is generally consistent with the amortization period used for the constructed leasehold improvement asset for a given office, store or warehouse facility. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated or amortized over the lesser of the estimated useful lives of the assets or the term of the related lease, including renewals considered reasonably assured. Expenditures for maintenance and repairs are included in selling, general and administrative expenses when incurred, while expenditures for major renewals and improvements that substantially extend the useful life of an asset are capitalized. The following table summarizes our property and equipment balances and their estimated useful lives (dollars in thousands): Life September 30, (in years) 2019 2018 Land N/A $ 10,061 $ 11,130 Buildings and building improvements 5 – 53,132 64,251 Leasehold improvements 2 – 10 281,195 274,848 Furniture, fixtures and equipment 2 – 10 634,525 569,149 Total property and equipment, gross 978,913 919,378 Accumulated depreciation and amortization (659,285 ) (611,021 ) Total property and equipment, net $ 319,628 $ 308,357 Depreciation expense for the fiscal years 2019, 2018 and 2017 was $96.1 million, $97.2 million and $99.2 million, respectively, and is included in selling, general and administrative expenses in our consolidated statements of earnings. Valuation of Long-Lived Assets and Definite-lived Intangible Assets Long-lived assets, such as property and equipment, including store equipment, and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The recoverability of long-lived assets and intangible assets subject to amortization is assessed by comparing the net carrying amount of each asset to the total estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. Goodwill and Indefinite-lived Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. G st Components within the same reportable segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of September 30, 2019, our reporting units consisted of Sally Beauty Supply (“SBS”) and Beauty Systems Group (“BSG”). We assign goodwill to the reporting unit which consolidates the acquisition. When assessing goodwill for impairment, we perform a quantitative assessment to compare the fair value of each reporting unit to its carrying value, including goodwill. Fair value is measured based on the discounted cash flow method. Based on our assessments, the fair value of each reporting unit exceeded its carrying value, and accordingly, we have not recorded any impairment charges related to goodwill in the current or prior fiscal years presented. Indefinite-lived Intangible Assets Our intangible assets with indefinite lives consist of trade names acquired in business combinations whenever indications of potential impairment exist. When assessing intangible assets with indefinite lives for impairment, we compare the fair value of each asset against its carrying value. Fair value is based on the relief from royalty method. Based Self-Insurance Programs We self-insure the risks related to workers’ compensation, general and auto liability, property and certain employee-related healthcare benefits. We have obtained third-party excess insurance coverage to limit our exposure per occurrence and aggregate cash outlay. We record an estimated liability for the ultimate cost of claims incurred and unpaid as of the balance sheet date, which includes claims filed and estimated losses incurred but not yet reported. We estimate the ultimate cost based on an analysis of our historical data and actuarial estimates. These estimates are reviewed on a regular basis to ensure that the recorded liability is adequate. The current and long-term portions of these liabilities are recorded at their present value and included in accrued liabilities and other liabilities in our consolidated balance sheets, respectively. 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 16 for additional information regarding the disaggregation of our sales revenue. 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 SBS stores and through our sallybeauty.com sallybeauty.com Private Label Credit Card In September 2019, we signed a multi-year agreement with a third-party bank (the “Bank”) to launch a private label credit card (the “Program”). Under the agreement, the Bank will manage and extend credit to our SBS and BSG customers and we will provide licensing to our brand, marketing services and facilitate credit applications. The Bank will be the sole owner of the private label credit card accounts and takes on the risk of default by the private label card holders. As of September 30, 2019, Program operations have not yet commenced. In connection with signing the agreement, we received a refundable payment from the Bank that we recorded as deferred revenue within other liabilities on our consolidated balance sheets and will recognize on a straight-line basis over the initial term of the agreement into net sales in our consolidated statements of earnings. Pursuant to the agreement, the Bank will reimburse us for certain expenses we incur for the launch and marketing of the Program. Amounts reimbursed are recognized in net sales in our consolidated statements of earnings. In addition, we can earn other amounts from the Bank, including incentive payments for achieving performance targets and the activation of credit cards. The following table shows the amount of contract liabilities on our consolidated balance sheets as of September 30, 2019 and 2018 (in thousands): September 30, Contracts Balance Sheet Classification 2019 2018 Gift cards Accrued liabilities $ 4,558 $ 4,144 Rewards loyalty program Accrued liabilities 8,308 1,165 Total liability $ 12,866 $ 5,309 Advertising Costs Advertising costs relate mainly to print advertisements, digital marketing, trade shows and product education for salon professionals. Advertising costs incurred in connection with print advertisements are expensed the first time the advertisement is run. Other advertising costs are expensed when incurred. Advertising costs were $73.3 million, $83.4 million and $82.0 million for the fiscal years 2019, 2018 and 2017, respectively, and are included in selling, general and administrative expenses in our consolidated statements of earnings. Share-based Compensation We measure the cost of services received from our employees and directors in exchange for an award of equity instruments based on the fair value of the award on the date of grant which are expensed ratably over the vesting period. We recognize the impact of forfeitures as they occur. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of earnings. Income Taxes We recognize deferred income taxes for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are anticipated to be recovered or settled. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of earnings in the period of enactment. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets to the amount expected to be realized unless it is more-likely-than-not that such assets will be realized in full. The estimated tax benefit of an uncertain tax position is recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax position will withstand challenge, if any, from applicable taxing authorities. Foreign Currency The functional currency of each of our foreign operations is generally the respective local currency. Balance sheet accounts are translated into U.S. dollars (our reporting currency) at the rates of exchange in effect at the balance sheet date, while the results of operations and cash flows are generally translated using average exchange rates for the periods presented. Individually material transactions, if any, are translated using the actual rate of exchange on the transaction date. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in our consolidated balance sheets. Foreign currency transaction gains or losses, including changes in the fair value (i.e., marked-to-market adjustments) of certain foreign exchange contracts we hold, are included in selling, general and administrative expenses in our consolidated statements of earnings when incurred and were not significant in any of the periods presented in the accompanying consolidated financial statements.

Accounting Changes and Recent A

Accounting Changes and Recent Accounting Pronouncements	12 Months Ended
	Sep. 30, 2019
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes and Recent Accounting Pronouncements	3. 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 consolidated balance sheets as of September 30, 2019 and our consolidated statements of earnings for the fiscal year ended September 30, 2019 (in thousands): Effect of ASU No. 2014-09 Adoption on Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Accounts receivable, other $ 61,403 $ 58,968 $ 2,435 Accrued liabilities $ 169,054 $ 166,619 $ 2,435 Effect of ASU No. 2014-09 Adoption on Consolidated Statement of Earnings Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 3,876,411 $ 3,876,136 $ 275 Gross Profit 1,910,542 1,910,267 275 Selling, general and administrative expenses $ 1,452,751 $ 1,452,476 $ 275 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 September 30, 2019, we estimate that the adoption of ASU No. 2016-02 would have resulted in recognition of a lease liability in the estimated amount of approximately $500.0 million and a right-of-use asset for a similar amount, which will be adjusted by reclassifications of existing lease assets and liability, on our consolidated balance sheet. We are currently in the final stages of implementing changes to our processes, controls and systems and expect to be compliant upon required adoption of the new standard. We do not believe adoption of ASU No. 2016-02 will have a material impact on our consolidated results of operations or consolidated cash flows. The amount of the right-of-use asset and the lease liability we ultimately recognize may materially differ from this preliminary estimate, including as a result of future organic growth in our business, changes in interest rates, and potential acquisitions.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements Our financial instruments consist of cash equivalents, trade and other accounts receivable, accounts payable, derivative instruments, including foreign exchange contracts and interest rate caps, and debt. The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these financial instruments. We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data; and Level 3 - Unobservable inputs for the asset or liability. Fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows (in thousands): As of September 30, Classification Pricing Category 2019 2018 Financial Assets Interest rate caps Other assets Level 2 344 8,367 Financial Liabilities None The fair value for interest rate caps were measured using widely accepted valuation techniques, such as discounted cash flow analyses, and observable inputs, such as market interest rates. Other fair value disclosures Carrying amounts and the related estimated fair value of our long-term debt, excluding capital lease obligations, are as follows: As of September 30, 2019 2018 Pricing Category Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 885,296 898,814 $ 950,000 $ 911,490 Other long-term debt Level 2 724,000 709,830 844,500 824,068 Total debt $ 1,609,296 $ 1,608,644 $ 1,794,500 $ 1,735,558 The fair value of the senior notes was measured using unadjusted quoted market prices. The fair value of other long-term debt was measured using quoted market prices for similar debt securities in active markets or widely accepted valuation techniques, such as discounted cash flow analyses, using observable inputs, such as market interest rates.

Accumulated Stockholders' Defic

Accumulated Stockholders' Deficit	12 Months Ended
	Sep. 30, 2019
Stockholders Equity Note [Abstract]
Accumulated Stockholders' Deficit	5. Accumulated Stockholders’ Deficit Share Repurchases In August 2017, we announced that the Board approved a share repurchase program authorizing us to repurchase up to $1.0 billion of our common stock over an approximate four-year 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, 2017 $ (80,752 ) $ (1,084 ) $ — $ (81,836 ) Other comprehensive income (loss) before reclassifications, net of tax (10,604 ) 2,449 — (8,155 ) Balance at September 30, 2018 (91,356 ) 1,365 — (89,991 ) Other comprehensive loss before reclassifications, net of tax (22,576 ) (6,167 ) (869 ) (29,612 ) Reclassification to net earnings, net of tax — 1,601 715 2,316 Balance at September 30, 2019 $ (113,932 ) $ (3,201 ) $ (154 ) $ (117,287 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings was not material.

Weighted-Average Shares

Weighted-Average Shares	12 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Weighted-Average Shares	6. Weighted The following table sets forth the computations of basic and diluted earnings per share (in thousands): Fiscal Year Ended September 30, 2019 2018 2017 Weighted average basic shares 119,636 123,190 137,533 Dilutive securities: Stock option and stock award programs 647 642 643 Weighted average diluted shares 120,283 123,832 138,176 At September 30, 2019, 2018 and 2017, options to purchase approximately 4.7 million, 5.2 million and 4.5 million shares, respectively, of our common stock were outstanding but not included in the computation of diluted earnings per share, because these options were anti-dilutive.

Share-Based Payments

Share-Based Payments	12 Months Ended
	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Payments	7. Our Sally Beauty Holdings, Inc. 2019 Omnibus Incentive Plan and the 2010 Omnibus Incentive Plan as amended (the "Omnibus Plans") allows us to grant performance-based awards and service-based awards to its employees up to 8.0 million shares of our common stock. Currently, we have awarded grants to employees and non-employee directors under the terms of the Omnibus Plans. The following table presents total compensation cost for all share-based compensation arrangements, and the related income tax benefits recognized in our consolidated statement of earnings (in thousands): Fiscal Year Ended September 30, 2019 2018 2017 Share-based compensation expense $ 9,180 $ 10,519 $ 10,507 Income tax benefit related to share-based compensation expense $ 2,357 $ 3,013 $ 3,918 The Omnibus Plan award types are as follows: Performance awards: Performance awards vest on the satisfaction of the employee service condition and our level of achievement with respect to certain specified cumulative performance targets, including sales growth and return on invested capital, during the three-year 0% 200% Stock options: Stock option awards are valued using the Black-Scholes option pricing model to estimate the fair value of each stock option award on the date of grant and expense ratably over the vesting period, generally three years. Stock options have a ten year life. Restricted Stock: Restricted stock awards (“RSA”) and restricted stock units (“RSU”) are valued using the closing market price of our common stock on the date of grant. Expense is recognized ratably over the vesting period, generally three years for RSAs and one year for RSUs. An RSA award is an award of our shares that have full voting rights and dividend rights, but are restricted with regard to sale or transfer. These restrictions lapse over the vesting period. RSUs are awarded to our independent directors who may elect, upon receipt of such award, to defer until a later date delivery of the shares of our common stock that would otherwise be issued on the vesting date. RSUs granted prior to the fiscal year 2012, are generally retained by the Company as deferred stock units that are not distributed until six months after the independent director’s service as a director terminates. Performance-Based Awards The following table presents a summary of the activity for our performance awards assuming 100% payout: Performance Awards Number of Shares (in Weighted Average Fair Value Per Share Unvested at September 30, 2018 349 $ 20.88 Granted 230 17.22 Vested (28 ) 22.26 Forfeited (140 ) 20.63 Unvested at September 30, 2019 411 $ 18.83 As of September 30, 2019, the maximum compensation expense that could be potentially recognized in connection with unvested performance awards is approximately $11.6 million, which is expected to be recognized over the weighted average period of 1.9 years. Service-Based Awards Stock Option 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 (152 ) 14.34 Forfeited or expired (1,299 ) 24.09 Outstanding at September 30, 2019 4,902 $ 22.08 5.8 $ 670 Exercisable at September 30, 2019 4,054 $ 23.00 5.1 $ 670 The weighted average assumptions used in the Black-Scholes model relating to the valuation of our stock options are as follows: Fiscal Year Ended September 30, 2019 2018 2017 Expected life (in years) 5.0 5.0 5.0 Expected volatility for the Company’s common stock 30.5 % 27.4 % 25.3 % Risk-free interest rate 3.0 % 2.1 % 1.3 % Dividend yield 0.0 % 0.0 % 0.0 % The expected life of options awarded represents the period of time that such options are expected to be outstanding and is based on our historical experience. The risk-free interest rate is based on the zero-coupon U.S. Treasury notes with a term comparable to the expected life of an award at the date of the grant. Since we do not currently expect to pay dividends, the dividend yield used for this purpose is 0% The weighted average fair value per share at the date of grant of the stock options awarded during the fiscal years 2019, 2018 and 2017 was $5.86, $4.84 and $6.37, respectively. The aggregate fair value of stock options that vested during the fiscal years 2019, 2018 and 2017 was $5.1 million, $7.7 million and $13.1 million, respectively. The aggregate intrinsic value of options exercised during the fiscal years 2019, 2018 and 2017 was $0.9 million, $1.3 million and $7.7 million, respectively. The total cash received during the fiscal years 2019, 2018 and 2017 from these option exercises was $2.2 million, $1.4 million and $17.3 million, respectively, and the tax benefit realized for the tax deductions from these option exercises was $0.2 million, $0.3 million and $2.9 million, respectively. At September 30, 2019, approximately $4.4 million of total unrecognized compensation costs related to unvested stock option awards are expected to be recognized over the weighted average period of 1.7 years. R SAs The following table presents a summary of the activity for our RSAs: Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2018 219 $ 16.98 Granted 287 18.14 Vested (169 ) 17.77 Forfeited (75 ) 17.84 Unvested at September 30, 2019 262 $ 17.53 At September 30, 2019, approximately $4.0 million of total unrecognized compensation costs related to unvested RSAs are expected to be recognized over the weighted average period of 1.7 years. RSUs The following table presents a summary of the activity for our RSUs: Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2018 — $ — Granted 88 18.14 Vested (80 ) 18.14 Forfeited (8 ) 18.14 Unvested at September 30, 2019 — $ — At September 30, 2019, all RSUs previously awarded have vested and there are no unrecognized compensation costs in connection therewith.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	8. The changes in the carrying amounts of goodwill during the fiscal years 2019 and 2018 are as follows (in thousands): SBS BSG Total Balance at September 30, 2017 $ 82,670 $ 455,121 $ 537,791 Acquisitions 329 716 1,045 Foreign currency translation (1,782 ) (1,129 ) (2,911 ) Balance at September 30, 2018 $ 81,217 $ 454,708 $ 535,925 Acquisitions 284 — 284 Foreign currency translation (4,596 ) (827 ) (5,423 ) Balance at September 30, 2019 $ 76,905 $ 453,881 $ 530,786 The following table reflects our other intangible assets, excluding goodwill, on our consolidated balance sheets. Once an intangible becomes fully amortized, the original cost and accumulated amortization is removed in the subsequent period. In the table below, prior year amounts for definite-lived intangible assets have been conformed to the current year’s presentation. As of September 30, 2019 and 2018, we had the following (in thousands): September 30, 2019 September 30, 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Definite-lived Intangible assets: Customer relationships $ 43,752 $ (33,192 ) $ 10,560 $ 58,133 $ (41,055 ) $ 17,078 Distribution rights 33,364 (27,477 ) 5,887 40,280 (32,080 ) 8,200 Other intangible assets 6,457 (3,946 ) 2,511 8,956 (5,779 ) 3,177 Total definite-lived intangible assets 83,573 (64,615 ) 18,958 107,369 (78,914 ) 28,455 Indefinite-lived Intangible assets: Trade names 43,093 — 43,093 44,243 — 44,243 Total intangible assets, excluding goodwill, net $ 126,666 $ (64,615 ) $ 62,051 $ 151,612 $ (78,914 ) $ 72,698 Our definite-lived intangible assets are amortized on a straight-line basis over the period that we expected an economic benefit, typically over periods of three to ten years. For the fiscal years ended September 30, 2019, 2018 and 2017, amortization expense related to intangible assets totaled $11.3 million, $11.7 million and $13.1 million, respectively. As of September 30, 2019, the expected future amortization expense related to definite-lived intangible assets is as follows (in thousands): Fiscal Year: 2020 $ 8,669 2021 5,028 2022 2,569 2023 1,472 2024 555 Thereafter 665 $ 18,958

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Sep. 30, 2019
Payables And Accruals [Abstract]
Accrued Liabilities	9. Accrued liabilities consist of the following (in thousands): September 30, 2019 2018 Compensation and benefits $ 63,005 $ 61,182 Deferred revenue 18,165 18,450 Interest payable 17,951 23,008 Rental obligations 11,670 12,129 Insurance reserves 4,567 4,816 Property and other taxes 3,869 4,607 Loss contingency obligation — 14,294 Operating accruals and other 49,827 41,801 Total accrued liabilities $ 169,054 $ 180,287

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments Leases Our leases relate primarily to retail stores and warehousing properties. At September 30, 2019, future minimum payments, excluding amounts related taxes, insurance, maintenance and special assessments, under non-cancelable operating leases are as follows (in thousands): Fiscal Year: 2020 $ 174,578 2021 136,900 2022 95,918 2023 61,944 2024 33,803 Thereafter 40,545 $ 543,688 Certain of our leases include payments of contingent rent based on a percentage of sales, renewal options and escalation clauses. Contingent rentals were not material for any fiscal years presented. Aggregate rental expense for all operating leases amounted to $250.4 million, $249.8 million and $242.0 million for the fiscal years 2019, 2018 and 2017, respectively. Letters of Credit We had $18.0 million and $18.7 million of outstanding letters of credit as of September 30, 2019 and 2018, respectively. Contingencies Legal Proceedings The Company is, from time to time, involved in various claims and lawsuits incidental to the conduct of its business in the ordinary course. We do not believe that the ultimate resolution of these matters will have a material adverse impact on our consolidated financial position, results of operations or cash flows. 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 2017, we entered into agreement pursuant to which all existing claims and assessments by certain payment card networks were settled. We received an assessment from another payment card network during fiscal year 2018 in connection with the data security incidents and recognized $7.9 million of expenses. The assessment was based on the network’s claims against our acquiring banks for costs that it asserts its issuing banks incurred in connection with the data security incidents, including incremental counterfeit fraud losses and non-ordinary course operating expenses, such as card reissuance costs. As of September 30, 2018, we had a $14.3 million loss contingency liability related to the data security incidents. During the fiscal year 2019, we paid the full amount of the assessment, and, we believe that, we have no remaining liability related to the data security incidents. Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, penalties, the data security incidents and other sources, are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. We have no significant liabilities for loss contingencies at September 30, 2019 and 2018, except as disclosed above.

Debt

Debt	12 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Debt	11. Short-term Debt In July 2017, we entered into an amended and restated $500 million, five-year At September 30, 2019 and 2018, we did not have any outstanding borrowing under the ABL facility. At September 30, 2019, we had $482.0 million available for borrowing under the ABL facility. Long-term Debt Long-term debt consists of the following (dollars in thousands): September 30, 2019 2018 Interest Rates Term loan B: Variable-rate tranche 424,000 544,500 LIBOR plus 2.25% Fixed-rate tranche 300,000 300,000 4.500% Senior notes due Nov. 2023 197,419 200,000 5.500% Senior notes due Dec. 2025 687,877 750,000 5.625% Total $ 1,609,296 $ 1,794,500 Plus: capital lease obligations 832 883 Less: unamortized debt issuance costs and discount, net 15,585 21,074 Total debt $ 1,594,543 $ 1,774,309 Less: current maturities 1 5,501 Total long-term debt $ 1,594,542 $ 1,768,808 Maturities of our debt, excluding capital leases, are as follows at September 30, 2019 (in thousands): Fiscal Year: 2020-2023 $ — 2024 921,419 Thereafter 687,877 Total $ 1,609,296 Term Loan B In July 2017, we entered into a seven-year During the fiscal year ended September 30, 2019, we paid down $115.0 million aggregate principal amount of our term loan B, in addition to the previously required quarterly payments. 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. In March 2018, the Borrowers entered into an Amendment No. 1 with respect to our term loan B pursuant to which the interest rate spread on the variable-rate tranche was reduced by 25 basis points to LIBOR plus 2.25%. Senior Notes The senior notes due 2023 and the senior notes due 2025, which we refer to collectively as “the senior notes due 2023 and 2025,” are unsecured obligations that are jointly and severally guaranteed by Sally Beauty Holdings, Inc. and Sally Investment, and by each material domestic subsidiary. Interest on the senior notes due 2023 and 2025 is payable semi-annually, during our first and third fiscal quarters. Please see Note 17 for certain condensed financial statement data pertaining to Sally Beauty Holdings, Inc., the Issuers, the guarantor subsidiaries and the non-guarantor subsidiaries. During the fiscal year ended September 30, 2019, we repurchased $62.2 million of our senior notes due 2025 at a weighted-average price of 98.1% and $2.6 million of our senior notes due 2023 at par. As a result, 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. Covenants The agreements governing our ABL facility, term loan B and the senior notes due 2023 and 2025 contain a customary covenant package that places restrictions on the disposition of assets, the granting of liens and security interests, the prepayment of certain indebtedness, and other matters and customary events of default, including customary cross-default and/or cross-acceleration provisions. As of September 30, 2019, we are in compliance with all debt covenants and all the net assets of our consolidated subsidiaries were unrestricted from transfer.

Derivative Instruments

Derivative Instruments	12 Months Ended
	Sep. 30, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments	12. As of September 30, 2019, we did not purchase or hold any derivative instruments for trading or speculative purposes. See note 4 for the classification and fair value of our derivative instruments. Designated Cash Flow Hedges Foreign Currency Forwards During the fiscal year ended September 30, 2019, we entered into foreign currency forwards to mitigate the exposure to exchange rate changes on inventory purchases in USD by our foreign subsidiaries over fiscal year 2019. As of September 30, 2019, all of our foreign currency forward derivatives instruments had settled. We record, net of income tax, the changes in fair value related to the foreign currency forwards into AOCL and recognize realized gain or loss into cost of goods sold based on inventory turns. As of September 30, 2019 exchange rates, we expect to reclassify approximately $0.3 million into cost of goods sold over the next 12 months. During the fiscal year ended September 30, 2019, we reclassified $0.7 million of net losses into cost of goods sold. 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”). The interest rate caps are made up of individual caplets that expire monthly through June 30, 2023 and are designated as cash flow hedges. During the fiscal year ended September 30, 2019, we dedesignated one interest rate cap and terminated $115.0 million in notional amount, concurrent with the repayment of $115.0 million of the term loan B variable tranche. Subsequently, we redesignated the remaining notional amounts of the interest rate cap. Once we determined the hedged transaction related to $115.0 million of the term loan B variable tranche principal was probable not to 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 $0.6 million into interest expense, which represents the original value of the expiring caplets. During the fiscal year ended September 30, 2019, we reclassified $1.6 million, which includes the $1.2 million loss, out of AOCI into interest expense. Non-Designated Cash Flow Hedges During the fiscal years ended September 30, 2018 and 2017, we used foreign currency forwards to mitigate the exposure to exchange rate changes on inventory purchases in USD by our foreign subsidiaries. We did not have any material non-designated foreign currency forwards during fiscal year 2019. During the fiscal years ended

401(k) and Profit Sharing Plan

401(k) and Profit Sharing Plan	12 Months Ended
	Sep. 30, 2019
Compensation And Retirement Disclosure [Abstract]
401(k) and Profit Sharing Plan	13. We offer 401(k) Plans to our U.S. and Puerto Rico employees who meet certain eligibility requirements. The U.S. 401(k) Plan allows employees to contribute immediately upon hire, while the Puerto Rico 401(k) Plan allows employees to contribute after one year of employment. Under the terms of each 401(k) Plan, employees may contribute a percentage of their annual compensation up to certain maximums, as defined by each 401(k) Plan and by statutory limitations. We currently match a portion of employee contributions, as defined by each 401(k) Plan. We recognized expense of $6.2 million, $6.5 million and $7.1 million in the fiscal years ended September 30, 2019, 2018 and 2017, respectively, related to such matching contributions and these amounts are included in selling, general and administrative expenses in our consolidated statements of earnings. In addition, pursuant to the 401(k) Plans, we may elect to make voluntary profit sharing contributions to the accounts of eligible employees as determined by the Compensation Committee of the Board. During the fiscal years ended September 30, 2019, 2018 and 2017, we did not make a profit sharing contribution to the 401(k) Plans.

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	14. On December 22, 2017, the U.S. enacted comprehensive amendments to the Internal Revenue Code of 1986 (“U.S. Tax Reform”). Among other things, U.S. Tax Reform (a) reduced the federal statutory tax rate for corporate taxpayers, (b) provided for a deemed repatriation of undistributed foreign earnings by U.S. taxpayers and made other fundamental changes on how foreign earnings will be taxed by the U.S. and (c) otherwise modified corporate tax rules in significant ways. Also 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. We have completed our analysis on our provisional calculations within the measurement period provided by SAB 118. As a result, we identified certain immaterial adjustments to our provisional calculations, including a benefit of $3 million related to the transition tax on unremitted earnings of our foreign operations. 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 with 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 fiscal year 2019. The provision for income taxes for the fiscal years 2019, 2018 and 2017 consists of the following (in thousands): Fiscal Year Ended September 30, 2019 2018 2017 Current: Federal $ 59,855 $ 68,608 $ 97,332 Foreign 10,132 11,039 10,394 State 15,339 11,344 8,700 Total current portion 85,326 90,991 116,426 Deferred: Federal 4,905 (26,001 ) 14,559 Foreign (1,498 ) 1,868 (2,314 ) State 1,808 3,522 1,951 Total deferred portion 5,215 (20,611 ) 14,196 Total provision for income taxes $ 90,541 $ 70,380 $ 130,622 The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below: Fiscal Year Ended September 30, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 24.5 % 35.0 % State income taxes, net of federal tax benefit 3.4 3.2 2.2 Effect of foreign operations — 0.6 0.3 Deferred tax revaluation, including adoption of income tax method changes — (11.5 ) — Deemed repatriation tax (0.3 ) 3.6 — Other, net 0.9 1.0 0.3 Effective tax rate 25.0 % 21.4 % 37.8 % The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands): September 30, 2019 2018 Deferred tax assets attributable to: Foreign loss carryforwards $ 27,097 $ 28,612 Accrued liabilities 12,248 15,676 Share-based compensation expense 9,494 10,762 U.S. foreign tax credits 8,807 8,807 Unrecognized tax benefits 320 322 Inventory adjustments 1,242 — Other 651 442 Total deferred tax assets 59,859 64,621 Valuation allowance (38,287 ) (40,906 ) Total deferred tax assets, net 21,572 23,715 Deferred tax liabilities attributable to: Depreciation and amortization 94,920 92,531 Inventory adjustments — 673 Total deferred tax liabilities 94,920 93,204 Net deferred tax liability $ 73,348 $ 69,489 We believe that it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, net of the valuation allowance. We have recorded a valuation allowance to account for uncertainties regarding recoverability of certain deferred tax assets, primarily foreign loss carry-forwards. Domestic earnings before provision for income taxes were $328.3 million, $300.4 million and $332.5 million in the fiscal years 2019, 2018 and 2017, respectively. Foreign operations had earnings before provision for income taxes of $33.9 million, $28.0 million and $13.2 million in the fiscal years 2019, 2018 and 2017, respectively. Tax reserves are evaluated and adjusted as appropriate, while taking into account the progress of audits by various taxing jurisdictions and other changes in relevant facts and circumstances evident at each balance sheet date. We do not expect the outcome of current or future tax audits to have a material adverse effect on our consolidated financial condition, results of operations or cash flow. As of September 30, 2019, no deferred taxes have been provided on the accumulated undistributed earnings of our foreign operations beyond the amounts recorded for deemed repatriation of such earnings, as required by U.S. Tax Reform. An actual repatriation of earnings from our foreign operations could still be subject to additional foreign withholding taxes and U.S. state taxes. Based upon evaluation of our foreign operations, undistributed earnings are intended to remain permanently reinvested to finance anticipated future growth and expansion, and accordingly, deferred taxes have not been provided. If undistributed earnings of our foreign operations were not considered permanently reinvested as of September 30, 2019, an immaterial amount of additional deferred taxes would have been provided. At September 30, 2019 and 2018, we had total operating loss carry-forwards of $97.3 million and $103.0 million, respectively, of which $79.0 million and $88.6 million, respectively, are subject to a valuation allowance. At September 30, 2019, operating loss carry-forwards of $7.7 million expire between 2020 and 2031 and operating loss carry-forwards of $89.5 million have no expiration date. At September 30, 2019 and 2018, we had tax credit carry-forwards of $11.2 million and $11.6 million, respectively, This includes a U.S. foreign tax credit carry-forward of $8.8 million as a result of the deemed repatriation tax under U.S. Tax Reform. This credit expires in 2028. We do not believe the realization of the U.S. foreign tax credit is more likely than not, so a valuation allowance has been recorded against its full value. Of the remaining tax credit carry-forwards, at September 30, 2019, $1.1 million expire between 2025 and 2028, and $1.3 million have no expiration date. Total tax credit carry-forwards of $10.1 million and $10.2 million are subject to a valuation allowance at September 30, 2019 and 2018, respectively. The changes in the amount of unrecognized tax benefits are as follows (in thousands): Fiscal Year Ended September 30, 2019 2018 Balance at beginning of the fiscal year $ 1,368 $ 1,467 Increases related to prior year tax positions — — Decreases related to prior year tax positions (4 ) (3 ) Increases related to current year tax positions 954 309 Lapse of statute (318 ) (405 ) Balance at end of fiscal year $ 2,000 $ 1,368 If recognized, these positions would affect our effective tax rate. We recognize interest and penalties, accrued in connection with unrecognized tax benefits, in provision for income taxes. Accrued interest and penalties, in the aggregate, were $0.2 million at September 30, 2019 and 2018. Because existing tax positions will continue to generate increased liabilities for unrecognized tax benefits over the next 12 months, and the fact that from time to time our tax returns are routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount of such change, or a range thereof, cannot reasonably be made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial condition or results of operations within the next 12 months. Our consolidated federal income tax return for the fiscal year ended September 30, 2018 is currently under IRS examination. Our statute remains open for the fiscal year ended September 30, 2015 forward. Our U.S. state and foreign income tax returns are impacted by various statutes of limitations, which are generally open from 2014 forward.

Acquisitions

Acquisitions	12 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Acquisitions	15. In the fiscal year ended September 30, 2018, we acquired certain assets and business operations of H. Chalut, Ltee. (“Chalut”), a distributor of beauty products with 21 stores operating in the province of Quebec, Canada, for approximately $8.8 million. This acquisition was accounted for using the acquisition method of accounting for business combinations and funded by cash from operations and borrowing under the ABL facility. The results of operations of Chalut are included in our BSG reportable segment subsequent to the acquisition date. We recorded intangible assets subject to amortization of $4.7 million and goodwill of $0.7 million, which is expected to be deductible for tax purposes, in connection with this acquisition. The goodwill in connection with the acquisition was assigned to our BSG reportable segment. The acquisition of Chalut was not material to the results of operations. For the fiscal years ended September 30, 2019 and 2017, we did not acquire any substantial businesses.

Segments and Disaggregated Reve

Segments and Disaggregated Revenue	12 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segments and Disaggregated Revenue	16. Our segments are defined on how our chief operating decision maker, which we consider the Chief Executive Officer and Chief Financial Officer together, regularly reviews performance and allocates resources to our operating segments, which relies on internal management reporting. We then aggregate operating segments based on the nature of the customer base and method used to distribute products into reportable segments. Our business is organized into two reportable segments: (i) SBS, a domestic and international chain of retail stores and a consumer-facing e-commerce website that offers professional beauty supplies to both salon professionals and retail customers primarily in North America, Puerto Rico, and parts of Europe and South America and (ii) BSG, including its franchise-based business Armstrong McCall, a full service distributor of beauty products and supplies that offers professional beauty products directly to salons and salon professionals through its professional-only stores, e-commerce platforms and its own sales force in partially exclusive geographical territories in the U.S. and Canada. The accounting policies of both of our reportable segments are the same as described in the summary of significant accounting policies contained in Note 2. Sales between segments, which were eliminated in consolidation, were not material for the fiscal years ended September 30, 2019, 2018 and 2017. Business Segments Information Segment data for the fiscal years 2019, 2018 and 2017 are as follows (in thousands): 2019 2018 2017 Net sales (for the fiscal year indicated): SBS $ 2,293,094 $ 2,333,838 $ 2,345,116 BSG 1,583,317 1,598,727 1,593,201 Total $ 3,876,411 $ 3,932,565 $ 3,938,317 Earnings before provision for income taxes: Segment operating earnings: SBS $ 366,412 $ 362,853 $ 385,407 BSG 239,572 240,225 254,691 Segment operating earnings 605,984 603,078 640,098 Unallocated expenses (148,193 ) (142,874 ) (138,822 ) Restructuring 682 (33,615 ) (22,679 ) Consolidated operating earnings 458,473 426,589 478,597 Interest expense (96,309 ) (98,162 ) (132,899 ) Earnings before provision for income taxes $ 362,164 $ 328,427 $ 345,698 Depreciation and amortization: SBS $ 65,561 $ 64,017 $ 63,427 BSG 28,568 29,733 31,755 Corporate 13,529 15,079 17,141 Total $ 107,658 $ 108,829 $ 112,323 Payments for property and equipment: SBS $ 69,802 $ 46,289 $ 52,178 BSG 18,997 16,598 19,335 Corporate 18,956 23,620 18,153 Total $ 107,755 $ 86,507 $ 89,666 Total assets (as of September 30): SBS $ 973,304 $ 995,546 $ 1,025,545 BSG 1,012,336 993,122 964,984 Sub-total 1,985,640 1,988,668 1,990,529 Corporate 112,806 108,746 108,478 Total $ 2,098,446 $ 2,097,414 $ 2,099,007 Unallocated expenses consist of corporate and shared costs and are included in selling, general and administrative expenses in our consolidated statements of earnings. In the fiscal years 2019, 2018, and 2017, no single customer accounted for 10% or more of revenue. Geographic Area Information Certain geographic data is as follows (in thousands): 2019 2018 2017 Net sales (for the fiscal year indicated): United States $ 3,169,821 $ 3,188,993 $ 3,248,662 Other countries 706,590 743,572 689,655 Total $ 3,876,411 $ 3,932,565 $ 3,938,317 Long-lived assets (as of September 30): United States $ 259,815 $ 234,475 $ 230,698 United Kingdom 24,476 29,493 32,771 Other countries 35,337 44,389 50,248 Total $ 319,628 $ 308,357 $ 313,717 Disaggregated Revenues The following tables disaggregate our segment revenues by merchandise category: Fiscal Year Ended September 30, SBS 2019 2018 2017 Hair color 29.4 % 26.9 % 26.0 % Hair care 20.4 % 20.9 % 21.1 % Skin and nail care 14.8 % 15.7 % 15.7 % Styling tools 13.5 % 13.9 % 14.1 % Multicultural products 7.1 % 7.5 % 7.9 % Salon supplies and accessories 6.6 % 7.1 % 7.3 % Other beauty items 8.2 % 8.0 % 7.9 % Total 100.0 % 100.0 % 100.0 % Fiscal Year Ended September 30, BSG 2019 2018 2017 Hair color 39.5 % 38.4 % 37.0 % Hair care 35.1 % 33.7 % 34.4 % Skin and nail care 8.1 % 8.7 % 9.0 % Styling tools 3.4 % 3.9 % 4.2 % Other beauty items 6.3 % 6.7 % 6.9 % Promotional items 7.6 % 8.6 % 8.5 % Total 100.0 % 100.0 % 100.0 % The following table disaggregates our segment revenue by sales channels: SBS BSG Fiscal Year Ended September 30, Fiscal Year Ended September 30, 2019 2018 2017 2019 2018 2017 Company-operated stores 96.9 % 97.5 % 98.1 % 69.4 % 68.7 % 68.4 % E-commerce 2.8 % 2.2 % 1.6 % 4.8 % 3.7 % 3.3 % Franchise stores 0.3 % 0.3 % 0.3 % 7.6 % 7.7 % 7.7 % Distributor sales consultants — — — 18.2 % 19.9 % 20.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

Separate Financial Information

Separate Financial Information of Guarantor Subsidiaries	12 Months Ended
	Sep. 30, 2019
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Separate Financial Information of Guarantor Subsidiaries	17. Separate Financial Information of Certain 100% wholly owned domestic subsidiaries (“guarantor subsidiaries”), as defined in our credit agreements, of Sally Beauty serve as guarantors to the ABL facility, term loan B and senior notes due 2023 and 2025. The guarantees related to these debt instruments are full and unconditional, joint and several and have certain restrictions on the ability to pay restricted payments to Sally Beauty Holdings, Inc. (“parent”). Certain other subsidiaries, including our foreign subsidiaries, do not serve as guarantors (“non-guarantor subsidiaries”). The following condensed consolidating financial information represents financial information for (i) parent, (ii) Sally Holdings and Sally Capital Inc., (iii) the guarantor subsidiaries; (iv) the non-guarantor subsidiaries, (v) elimination entries necessary for consolidation purposes, and (vi) Sally Beauty on a consolidated basis. Condensed Consolidating Balance Sheet September 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 $ 41,009 $ 30,476 $ — $ 71,495 Trade and other accounts receivable, net — — 65,746 38,793 — 104,539 Due from affiliates — — 2,878,072 — (2,878,072 ) — Inventory — — 722,830 230,077 — 952,907 Other current assets 1,436 132 22,480 10,564 — 34,612 Property and equipment, net 6 — 258,132 61,490 — 319,628 Investment in subsidiaries 1,621,843 4,374,334 385,629 — (6,381,806 ) — Goodwill and other intangible assets, net — — 452,645 140,192 — 592,837 Other assets 1,446 3,499 (581 ) 18,064 — 22,428 Total assets $ 1,624,731 $ 4,377,975 $ 4,825,962 $ 529,656 $ (9,259,878 ) $ 2,098,446 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 48 $ — $ 235,940 $ 42,700 $ — $ 278,688 Due to affiliates 1,672,322 1,142,324 — 63,426 (2,878,072 ) — Accrued liabilities 188 17,937 121,375 29,554 — 169,054 Income taxes payable 6,055 2,161 1 119 — 8,336 Long-term debt — 1,593,710 1 832 — 1,594,543 Other liabilities 6,441 — 17,639 3,677 — 27,757 Deferred income tax liabilities, net — — 76,672 3,719 — 80,391 Total liabilities 1,685,054 2,756,132 451,628 144,027 (2,878,072 ) 2,158,769 Total stockholders’ (deficit) equity (60,323 ) 1,621,843 4,374,334 385,629 (6,381,806 ) (60,323 ) Total liabilities and stockholders’ (deficit) equity $ 1,624,731 $ 4,377,975 $ 4,825,962 $ 529,656 $ (9,259,878 ) $ 2,098,446 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 Fiscal Year Ended September 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 $ — $ — $ 3,131,360 $ 745,051 $ — $ 3,876,411 Related party sales — — 2,201 — (2,201 ) — Cost of goods sold — — 1,568,663 399,407 (2,201 ) 1,965,869 Gross profit — — 1,564,898 345,644 — 1,910,542 Selling, general and administrative expenses 11,331 607 1,135,926 304,887 — 1,452,751 Restructuring — — (682 ) — — (682 ) Operating earnings (loss) (11,331 ) (607 ) 429,654 40,757 — 458,473 Interest expense (income) — 96,464 5 (160 ) — 96,309 Earnings (loss) before provision for income taxes (11,331 ) (97,071 ) 429,649 40,917 — 362,164 Provision (benefit) for income taxes (2,742 ) (24,888 ) 109,230 8,941 — 90,541 Equity in earnings of subsidiaries, net of tax 280,212 352,395 31,976 — (664,583 ) — Net earnings 271,623 280,212 352,395 31,976 (664,583 ) 271,623 Other comprehensive loss, net of tax — (4,566 ) — (22,730 ) — (27,296 ) Total comprehensive income (loss) $ 271,623 $ 275,646 $ 352,395 $ 9,246 $ (664,583 ) $ 244,327 Condensed Consolidating Statement of Earnings and Comprehensive Income Fiscal Year Ended 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 Net sales $ — $ — $ 3,152,120 $ 780,445 $ — $ 3,932,565 Related party sales — — 2,294 — (2,294 ) — Cost of goods sold — — 1,581,385 409,061 (2,294 ) 1,988,152 Gross profit — — 1,573,029 371,384 — 1,944,413 Selling, general and administrative expenses 10,957 1,538 1,136,312 335,402 — 1,484,209 Restructuring — — 33,615 — — 33,615 Operating earnings (loss) (10,957 ) (1,538 ) 403,102 35,982 — 426,589 Interest expense (income) — 98,332 (3 ) (167 ) — 98,162 Earnings (loss) before provision for income taxes (10,957 ) (99,870 ) 403,105 36,149 — 328,427 Provision (benefit) for income taxes (2,734 ) (28,787 ) 73,747 28,154 — 70,380 Equity in earnings of subsidiaries, net of tax 266,270 337,353 7,995 — (611,618 ) — Net earnings 258,047 266,270 337,353 7,995 (611,618 ) 258,047 Other comprehensive income (loss), net of tax — 2,449 — (10,604 ) — (8,155 ) Total comprehensive income (loss) $ 258,047 $ 268,719 $ 337,353 $ (2,609 ) $ (611,618 ) $ 249,892 Condensed Consolidating Statement of Earnings and Comprehensive Income Fiscal Year Ended September 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 3,209,039 $ 729,278 $ — $ 3,938,317 Related party sales — — 2,501 — (2,501 ) — Cost of goods sold — — 1,590,184 385,739 (2,501 ) 1,973,422 Gross profit — — 1,621,356 343,539 — 1,964,895 Selling, general and administrative expenses 10,939 526 1,130,615 321,539 — 1,463,619 Restructuring — — 22,679 — — 22,679 Operating earnings (loss) (10,939 ) (526 ) 468,062 22,000 — 478,597 Interest expense — 132,696 6 197 — 132,899 Earnings (loss) before provision for income taxes (10,939 ) (133,222 ) 468,056 21,803 — 345,698 Provision (benefit) for income taxes (4,246 ) (51,726 ) 177,383 9,211 — 130,622 Equity in earnings of subsidiaries, net of tax 221,769 303,265 12,592 — (537,626 ) — Net earnings 215,076 221,769 303,265 12,592 (537,626 ) 215,076 Other comprehensive income (loss), net of tax — (1,084 ) — 19,299 — 18,215 Total comprehensive income $ 215,076 $ 220,685 $ 303,265 $ 31,891 $ (537,626 ) $ 233,291 Condensed Consolidating Statement of Cash Flows (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 $ 2,364 $ (70,150 ) $ 373,313 $ 14,888 $ — $ 320,415 Cash Flows from Investing Activities: Payments for property and equipment, net (1 ) — (79,379 ) (13,063 ) — (92,443 ) Acquisitions, net of cash acquired — — (2,584 ) (840 ) — (3,424 ) Due from affiliates — — (279,391 ) — 279,391 — Net cash used by investing activities (1 ) — (361,354 ) (13,903 ) 279,391 (95,867 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 593,500 4 — — 593,504 Repayments of long-term debt — (777,533 ) (4 ) (1 ) — (777,538 ) Payments for common stock repurchased (47,434 ) — — — — (47,434 ) Proceeds from exercises of stock options 2,160 — — — — 2,160 Due to affiliates 42,911 254,183 — (17,703 ) (279,391 ) — Net cash provided (used) by financing activities (2,363 ) 70,150 — (17,704 ) (279,391 ) (229,308 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (1,040 ) — (1,040 ) Net increase (decrease) in cash and cash equivalents — — 11,959 (17,759 ) — (5,800 ) Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 41,009 $ 30,476 $ — $ 71,495 Condensed Consolidating Statement of Cash Flows 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 Net cash provided (used) by operating activities $ 23,424 $ (62,948 ) $ 384,958 $ 27,227 $ — $ 372,661 Cash Flows from Investing Activities: Payments for property and equipment, net — — (68,689 ) (17,449 ) — (86,138 ) Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (309,310 ) — 309,310 — Net cash used by investing activities — — (377,999 ) (26,624 ) 309,310 (95,313 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 461,814 5 — — 461,819 Repayments of long-term debt — (558,000 ) (4 ) (595 ) — (558,599 ) Debt issuance cost — (1,151 ) — — — (1,151 ) Payments for common stock repurchased (166,701 ) — — — — (166,701 ) Proceeds from exercises of stock options 1,350 — — — — 1,350 Due to affiliates 141,927 160,285 — 7,098 (309,310 ) — Net cash provided (used) by financing activities (23,424 ) 62,948 1 6,503 (309,310 ) (263,282 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (530 ) — (530 ) Net increase in cash and cash equivalents — — 6,960 6,576 — 13,536 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 29,050 $ 48,235 $ — $ 77,295 Condensed Consolidating Statement of Cash Flows (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 $ 4,095 $ (72,779 ) $ 386,604 $ 25,366 $ — $ 343,286 Cash Flows from Investing Activities: Payments for property and equipment, net — — (64,000 ) (25,625 ) — (89,625 ) Due from affiliates — — (322,866 ) — 322,866 — Net cash used by investing activities — — (386,866 ) (25,625 ) 322,866 (89,625 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 1,277,250 — — — 1,277,250 Repayments of long-term debt — (1,215,940 ) (16 ) (687 ) — (1,216,643 ) Debt issuance costs — (8,376 ) — — — (8,376 ) Payments for common stock repurchased (346,873 ) — — — — (346,873 ) Proceeds from exercises of stock options 17,339 — — — — 17,339 Due to affiliates 325,439 (8,517 ) — 5,944 (322,866 ) — Net cash provided (used) by financing activities (4,095 ) 44,417 (16 ) 5,257 (322,866 ) (277,303 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 779 — 779 Net increase (decrease) in cash and cash equivalents — (28,362 ) (278 ) 5,777 — (22,863 ) Cash and cash equivalents, beginning of period — 28,372 22,368 35,882 — 86,622 Cash and cash equivalents, end of period $ — $ 10 $ 22,090 $ 41,659 $ — $ 63,759

Restructuring

Restructuring	12 Months Ended
	Sep. 30, 2019
Restructuring And Related Activities [Abstract]
Restructuring	18. Restructuring expense and gains for the fiscal years ended September 30, 2019, 2018 and 2017, are as follows (in thousands): 2019 2018 2017 Supply Chain Modernization $ (4,662 ) $ — $ — 2018 Restructuring Plan 3,980 33,615 — 2017 Restructuring Plan — — 22,679 Total expense (gain) $ (682 ) $ 33,615 $ 22,679 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 our Marinette, Wisconsin, fulfillment facility, anticipate closing other select distribution centers and upgrading our e-commerce capabilities. Additionally, we will be opening a new automated and concentrated distribution center which will service SBS stores and e-commerce sales, as well as BSG stores, full service sales and e-commerce sales in fiscal year 2020. The liability related to the supply chain modernization, which is included in accrued liabilities on our consolidated balance sheets, is as follows (in thousands): Supply Chain Modernization Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at September 30, 2019 Workforce reductions $ — $ 2,502 $ 1,848 $ — $ 654 Facility closures — 1,021 817 — 204 Other — 224 224 — — Total $ — $ 3,747 $ 2,889 $ — $ 858 Expenses incurred during the fiscal year ended September 30, 2019, represent costs incurred by SBS of $1.5 million, BSG of $1.5 million and corporate of $0.7 million. The above table does not include an $8.4 million gain from selling our secondary headquarters and fulfillment center in Denton, Texas, and our fulfillment center in Marinette, Wisconsin. 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 consolidated balance sheets, is as follows (in thousands): 2018 Restructuring Plan Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at September 30, 2019 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — $ — Consulting 3,087 2,502 5,589 — — Other 2,266 835 3,031 — 70 Total $ 8,797 $ 3,980 $ 12,707 $ — $ 70 Expenses incurred during the fiscal year ended September 30, 2019, represent costs incurred by SBS of $1.1 million and corporate of $2.8 million. 2017 Restructuring Plan In January 2017, the Board approved a restructuring plan (the “2017 Restructuring Plan”) for our businesses that included the closure of four administrative offices in the U.S. and Canada, reductions in both salaried and hourly workforce and certain other cost reduction activities. In addition, we expanded the 2017 Restructuring Plan to encompass some other underperforming international operations. There was no material liability for the 2017 Restructuring Plan as of September 30, 2019.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Sep. 30, 2019
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	19. Certain unaudited quarterly consolidated statement of earnings information for the fiscal years ended September 30, 2019 and 2018 is summarized below (in thousands, except per share data): 1 st 2 nd 3 rd 4 th Fiscal Year Quarter Quarter Quarter Quarter 2019: Net sales $ 989,453 $ 945,852 $ 975,169 $ 965,937 Gross profit $ 480,705 $ 468,324 $ 482,222 $ 479,291 Net earnings $ 65,727 $ 65,725 $ 71,164 $ 69,007 Earnings per share (a) Basic $ 0.55 $ 0.55 $ 0.59 $ 0.58 Diluted $ 0.54 $ 0.54 $ 0.59 $ 0.58 2018: Net sales $ 994,964 $ 975,321 $ 996,283 $ 965,997 Gross profit $ 486,629 $ 486,322 $ 493,370 $ 478,092 Net earnings $ 83,264 $ 61,371 $ 58,226 $ 55,186 Earnings per share (a) Basic $ 0.65 $ 0.49 $ 0.48 $ 0.46 Diluted $ 0.65 $ 0.49 $ 0.48 $ 0.46 (a) The sum of the quarterly earnings per share may not equal the full year amount due to rounding of the calculated amounts.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates In accordance with GAAP, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities in the consolidated financial statements. Actual results may differ from these estimates in amounts that may be material to our consolidated financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash represents currency on hand, debt and credit card receivable and third-party online payment systems transactions, while cash equivalents consist of highly liquid investments which have an original maturity of three months or less. Cash and cash equivalents are stated at cost, which approximates fair value.
Trade Accounts Receivable and Accounts Receivable, Other	Trade Accounts Receivable and Accounts Receivable, Other Trade accounts receivable consist of credit extended directly to certain customers who meet our credit requirements in the ordinary course of business and are stated at their carrying values, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is regularly reviewed on the basis of our historical collection data and current customer information. Customer account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. At September 30, 2019 and 2018, our allowance for doubtful accounts was $1.7 million and $1.8 million, respectively. Other accounts receivable consist primarily of amounts due from vendors under various contractual agreements and include volume rebates and other promotional considerations.
Inventory and Cost of Goods Sold	Inventory and Cost of Goods Sold Inventory is stated at the lower of cost (FIFO) or net realizable value. Inventory cost reflects actual product costs, the cost of transportation to our distribution centers and certain shipping and handling costs, such as freight from the distribution centers to the stores and handling costs incurred at the distribution centers. When assessing the net realizable value of inventory, we consider several factors including estimates of future demand for our products, historical turn-over rates, the age and sales history of the inventory, and historic and anticipated changes in stock keeping units. Physical inventory counts are performed at substantially all stores and significant distribution centers at least annually. Upon completion of physical inventory counts, our consolidated financial statements are adjusted to reflect actual quantities on hand. Between physical counts, we estimate inventory shrinkage based on our historical experience. We have policies and processes in place that are intended to minimize inventory shrinkage. Cost of goods sold includes actual product costs, the cost of transportation to our distribution centers, operating cost associated with our distribution centers (including employee compensation expense, depreciation and amortization, rent and other occupancy-related expenses), vendor rebates and allowances, inventory shrinkage and certain shipping and handling costs, such as freight from the distribution centers to the stores. All other shipping and handling costs are included in selling, general and administrative expenses when incurred. We deem cash consideration received from a supplier to be a reduction of the cost of inventory purchased, unless it is in exchange for an asset or service or a reimbursement of a specific, incremental, identifiable cost incurred by us in selling the vendor’s products. The majority of cash consideration we receive is considered to be a reduction of inventory and a subsequent reduction in cost of goods sold as the related products are sold.
Lease Accounting	Lease Accounting The majority of our lease agreements are for company-operated stores, warehouse/distribution facilities and office space and are accounted for as operating leases. Rent expense (including any rent abatements or escalation charges) is recognized on a straight-line basis from the date we take possession of the property to begin preparation of the site for occupancy to the end of the lease term, including renewal options that are considered reasonably assured. Certain lease agreements to which we are a party provide for contingent rents that are determined as a percentage of revenues in excess of specified levels. We record a contingent rent liability, along with the corresponding rent expense, when the specified levels of revenue have been achieved or when we determine that achieving the specified levels of revenue during the fiscal year is probable. Certain lease agreements to which we are a party provide for tenant improvement allowances. Tenant improvement allowances are recorded as deferred lease credits, included in accrued liabilities and other liabilities, as appropriate, on our consolidated balance sheets, and amortized on a straight-line basis over the lease term (including renewal options that are determined reasonably assured) as a reduction of rent expense. The amortization period used for deferred lease credits is generally consistent with the amortization period used for the constructed leasehold improvement asset for a given office, store or warehouse facility.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated or amortized over the lesser of the estimated useful lives of the assets or the term of the related lease, including renewals considered reasonably assured. Expenditures for maintenance and repairs are included in selling, general and administrative expenses when incurred, while expenditures for major renewals and improvements that substantially extend the useful life of an asset are capitalized. The following table summarizes our property and equipment balances and their estimated useful lives (dollars in thousands): Life September 30, (in years) 2019 2018 Land N/A $ 10,061 $ 11,130 Buildings and building improvements 5 – 53,132 64,251 Leasehold improvements 2 – 10 281,195 274,848 Furniture, fixtures and equipment 2 – 10 634,525 569,149 Total property and equipment, gross 978,913 919,378 Accumulated depreciation and amortization (659,285 ) (611,021 ) Total property and equipment, net $ 319,628 $ 308,357 Depreciation expense for the fiscal years 2019, 2018 and 2017 was $96.1 million, $97.2 million and $99.2 million, respectively, and is included in selling, general and administrative expenses in our consolidated statements of earnings.
Valuation of Long-Lived Assets and Definite-lived Intangible Assets	Valuation of Long-Lived Assets and Definite-lived Intangible Assets Long-lived assets, such as property and equipment, including store equipment, and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The recoverability of long-lived assets and intangible assets subject to amortization is assessed by comparing the net carrying amount of each asset to the total estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.
Goodwill and Indefinite-lived Intangible Assets	Goodwill and Indefinite-lived Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. G st Components within the same reportable segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of September 30, 2019, our reporting units consisted of Sally Beauty Supply (“SBS”) and Beauty Systems Group (“BSG”). We assign goodwill to the reporting unit which consolidates the acquisition. When assessing goodwill for impairment, we perform a quantitative assessment to compare the fair value of each reporting unit to its carrying value, including goodwill. Fair value is measured based on the discounted cash flow method. Based on our assessments, the fair value of each reporting unit exceeded its carrying value, and accordingly, we have not recorded any impairment charges related to goodwill in the current or prior fiscal years presented. Indefinite-lived Intangible Assets Our intangible assets with indefinite lives consist of trade names acquired in business combinations whenever indications of potential impairment exist. When assessing intangible assets with indefinite lives for impairment, we compare the fair value of each asset against its carrying value. Fair value is based on the relief from royalty method. Based
Self-Insurance Programs	Self-Insurance Programs We self-insure the risks related to workers’ compensation, general and auto liability, property and certain employee-related healthcare benefits. We have obtained third-party excess insurance coverage to limit our exposure per occurrence and aggregate cash outlay. We record an estimated liability for the ultimate cost of claims incurred and unpaid as of the balance sheet date, which includes claims filed and estimated losses incurred but not yet reported. We estimate the ultimate cost based on an analysis of our historical data and actuarial estimates. These estimates are reviewed on a regular basis to ensure that the recorded liability is adequate. The current and long-term portions of these liabilities are recorded at their present value and included in accrued liabilities and other liabilities in our consolidated balance sheets, respectively.
Revenue Recognition	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 16 for additional information regarding the disaggregation of our sales revenue. 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 SBS stores and through our sallybeauty.com sallybeauty.com Private Label Credit Card In September 2019, we signed a multi-year agreement with a third-party bank (the “Bank”) to launch a private label credit card (the “Program”). Under the agreement, the Bank will manage and extend credit to our SBS and BSG customers and we will provide licensing to our brand, marketing services and facilitate credit applications. The Bank will be the sole owner of the private label credit card accounts and takes on the risk of default by the private label card holders. As of September 30, 2019, Program operations have not yet commenced. In connection with signing the agreement, we received a refundable payment from the Bank that we recorded as deferred revenue within other liabilities on our consolidated balance sheets and will recognize on a straight-line basis over the initial term of the agreement into net sales in our consolidated statements of earnings. Pursuant to the agreement, the Bank will reimburse us for certain expenses we incur for the launch and marketing of the Program. Amounts reimbursed are recognized in net sales in our consolidated statements of earnings. In addition, we can earn other amounts from the Bank, including incentive payments for achieving performance targets and the activation of credit cards. The following table shows the amount of contract liabilities on our consolidated balance sheets as of September 30, 2019 and 2018 (in thousands): September 30, Contracts Balance Sheet Classification 2019 2018 Gift cards Accrued liabilities $ 4,558 $ 4,144 Rewards loyalty program Accrued liabilities 8,308 1,165 Total liability $ 12,866 $ 5,309
Advertising Costs	Advertising Costs Advertising costs relate mainly to print advertisements, digital marketing, trade shows and product education for salon professionals. Advertising costs incurred in connection with print advertisements are expensed the first time the advertisement is run. Other advertising costs are expensed when incurred. Advertising costs were $73.3 million, $83.4 million and $82.0 million for the fiscal years 2019, 2018 and 2017, respectively, and are included in selling, general and administrative expenses in our consolidated statements of earnings.
Share-based Compensation	Share-based Compensation We measure the cost of services received from our employees and directors in exchange for an award of equity instruments based on the fair value of the award on the date of grant which are expensed ratably over the vesting period. We recognize the impact of forfeitures as they occur. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of earnings.
Income Taxes	Income Taxes We recognize deferred income taxes for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are anticipated to be recovered or settled. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of earnings in the period of enactment. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets to the amount expected to be realized unless it is more-likely-than-not that such assets will be realized in full. The estimated tax benefit of an uncertain tax position is recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax position will withstand challenge, if any, from applicable taxing authorities.
Foreign Currency	Foreign Currency The functional currency of each of our foreign operations is generally the respective local currency. Balance sheet accounts are translated into U.S. dollars (our reporting currency) at the rates of exchange in effect at the balance sheet date, while the results of operations and cash flows are generally translated using average exchange rates for the periods presented. Individually material transactions, if any, are translated using the actual rate of exchange on the transaction date. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in our consolidated balance sheets. Foreign currency transaction gains or losses, including changes in the fair value (i.e., marked-to-market adjustments) of certain foreign exchange contracts we hold, are included in selling, general and administrative expenses in our consolidated statements of earnings when incurred and were not significant in any of the periods presented in the accompanying consolidated financial statements.

Accounting Changes and Recent_2

Accounting Changes and Recent Accounting Pronouncements (Policies)	12 Months Ended
	Sep. 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 consolidated balance sheets as of September 30, 2019 and our consolidated statements of earnings for the fiscal year ended September 30, 2019 (in thousands): Effect of ASU No. 2014-09 Adoption on Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Accounts receivable, other $ 61,403 $ 58,968 $ 2,435 Accrued liabilities $ 169,054 $ 166,619 $ 2,435 Effect of ASU No. 2014-09 Adoption on Consolidated Statement of Earnings Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 3,876,411 $ 3,876,136 $ 275 Gross Profit 1,910,542 1,910,267 275 Selling, general and administrative expenses $ 1,452,751 $ 1,452,476 $ 275
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 September 30, 2019, we estimate that the adoption of ASU No. 2016-02 would have resulted in recognition of a lease liability in the estimated amount of approximately $500.0 million and a right-of-use asset for a similar amount, which will be adjusted by reclassifications of existing lease assets and liability, on our consolidated balance sheet. We are currently in the final stages of implementing changes to our processes, controls and systems and expect to be compliant upon required adoption of the new standard. We do not believe adoption of ASU No. 2016-02 will have a material impact on our consolidated results of operations or consolidated cash flows. The amount of the right-of-use asset and the lease liability we ultimately recognize may materially differ from this preliminary estimate, including as a result of future organic growth in our business, changes in interest rates, and potential acquisitions.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Property and Equipment Balances and Estimated Useful Lives	The following table summarizes our property and equipment balances and their estimated useful lives (dollars in thousands): Life September 30, (in years) 2019 2018 Land N/A $ 10,061 $ 11,130 Buildings and building improvements 5 – 53,132 64,251 Leasehold improvements 2 – 10 281,195 274,848 Furniture, fixtures and equipment 2 – 10 634,525 569,149 Total property and equipment, gross 978,913 919,378 Accumulated depreciation and amortization (659,285 ) (611,021 ) Total property and equipment, net $ 319,628 $ 308,357
Summary of Contract Liabilities	The following table shows the amount of contract liabilities on our consolidated balance sheets as of September 30, 2019 and 2018 (in thousands): September 30, Contracts Balance Sheet Classification 2019 2018 Gift cards Accrued liabilities $ 4,558 $ 4,144 Rewards loyalty program Accrued liabilities 8,308 1,165 Total liability $ 12,866 $ 5,309

Accounting Changes and Recent_3

Accounting Changes and Recent Accounting Pronouncements (Tables)	12 Months Ended
	Sep. 30, 2019
ASU 2014-09
Recent Accounting Pronouncements
Schedule of Impact of Adopting ASU No. 2014-09 on Consolidated Balance Sheets and Consolidated Statements of Earnings	The following tables set forth the impact of adopting this standard on our consolidated balance sheets as of September 30, 2019 and our consolidated statements of earnings for the fiscal year ended September 30, 2019 (in thousands): Effect of ASU No. 2014-09 Adoption on Consolidated Balance Sheet Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Accounts receivable, other $ 61,403 $ 58,968 $ 2,435 Accrued liabilities $ 169,054 $ 166,619 $ 2,435 Effect of ASU No. 2014-09 Adoption on Consolidated Statement of Earnings Excluding ASU No. 2014-09 ASU No. 2014-09 As reported Effect Effect Net Sales $ 3,876,411 $ 3,876,136 $ 275 Gross Profit 1,910,542 1,910,267 275 Selling, general and administrative expenses $ 1,452,751 $ 1,452,476 $ 275

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities and other fair value disclosures by fair value hierarchy	Fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows (in thousands): As of September 30, Classification Pricing Category 2019 2018 Financial Assets Interest rate caps Other assets Level 2 344 8,367 Financial Liabilities None The fair value for interest rate caps were measured using widely accepted valuation techniques, such as discounted cash flow analyses, and observable inputs, such as market interest rates. Other fair value disclosures Carrying amounts and the related estimated fair value of our long-term debt, excluding capital lease obligations, are as follows: As of September 30, 2019 2018 Pricing Category Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 885,296 898,814 $ 950,000 $ 911,490 Other long-term debt Level 2 724,000 709,830 844,500 824,068 Total debt $ 1,609,296 $ 1,608,644 $ 1,794,500 $ 1,735,558

Accumulated Stockholders' Def_2

Accumulated Stockholders' Deficit (Tables)	12 Months Ended
	Sep. 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, 2017 $ (80,752 ) $ (1,084 ) $ — $ (81,836 ) Other comprehensive income (loss) before reclassifications, net of tax (10,604 ) 2,449 — (8,155 ) Balance at September 30, 2018 (91,356 ) 1,365 — (89,991 ) Other comprehensive loss before reclassifications, net of tax (22,576 ) (6,167 ) (869 ) (29,612 ) Reclassification to net earnings, net of tax — 1,601 715 2,316 Balance at September 30, 2019 $ (113,932 ) $ (3,201 ) $ (154 ) $ (117,287 )

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	12 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of computations of basic and diluted earnings per share	The following table sets forth the computations of basic and diluted earnings per share (in thousands): Fiscal Year Ended September 30, 2019 2018 2017 Weighted average basic shares 119,636 123,190 137,533 Dilutive securities: Stock option and stock award programs 647 642 643 Weighted average diluted shares 120,283 123,832 138,176

Share-Based Payments (Tables)

Share-Based Payments (Tables)	12 Months Ended
	Sep. 30, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Schedule of total compensation cost charged against income	The following table presents total compensation cost for all share-based compensation arrangements, and the related income tax benefits recognized in our consolidated statement of earnings (in thousands): Fiscal Year Ended September 30, 2019 2018 2017 Share-based compensation expense $ 9,180 $ 10,519 $ 10,507 Income tax benefit related to share-based compensation expense $ 2,357 $ 3,013 $ 3,918
Summary of activity for performance based unit awards assuming 100% payout	Performance Awards Number of Shares (in Weighted Average Fair Value Per Share Unvested at September 30, 2018 349 $ 20.88 Granted 230 17.22 Vested (28 ) 22.26 Forfeited (140 ) 20.63 Unvested at September 30, 2019 411 $ 18.83
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 (152 ) 14.34 Forfeited or expired (1,299 ) 24.09 Outstanding at September 30, 2019 4,902 $ 22.08 5.8 $ 670 Exercisable at September 30, 2019 4,054 $ 23.00 5.1 $ 670
Schedule of weighted average assumptions for valuation of stock options using the Black-Scholes option pricing model	Fiscal Year Ended September 30, 2019 2018 2017 Expected life (in years) 5.0 5.0 5.0 Expected volatility for the Company’s common stock 30.5 % 27.4 % 25.3 % Risk-free interest rate 3.0 % 2.1 % 1.3 % Dividend yield 0.0 % 0.0 % 0.0 %
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of the activity for restricted stock awards/units	Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2018 219 $ 16.98 Granted 287 18.14 Vested (169 ) 17.77 Forfeited (75 ) 17.84 Unvested at September 30, 2019 262 $ 17.53
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of the activity for restricted stock awards/units	Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2018 — $ — Granted 88 18.14 Vested (80 ) 18.14 Forfeited (8 ) 18.14 Unvested at September 30, 2019 — $ —

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of changes in carrying amounts of goodwill	The changes in the carrying amounts of goodwill during the fiscal years 2019 and 2018 are as follows (in thousands): SBS BSG Total Balance at September 30, 2017 $ 82,670 $ 455,121 $ 537,791 Acquisitions 329 716 1,045 Foreign currency translation (1,782 ) (1,129 ) (2,911 ) Balance at September 30, 2018 $ 81,217 $ 454,708 $ 535,925 Acquisitions 284 — 284 Foreign currency translation (4,596 ) (827 ) (5,423 ) Balance at September 30, 2019 $ 76,905 $ 453,881 $ 530,786
Schedule of other intangible assets, excluding goodwill	The following table reflects our other intangible assets, excluding goodwill, on our consolidated balance sheets. Once an intangible becomes fully amortized, the original cost and accumulated amortization is removed in the subsequent period. In the table below, prior year amounts for definite-lived intangible assets have been conformed to the current year’s presentation. As of September 30, 2019 and 2018, we had the following (in thousands): September 30, 2019 September 30, 2018 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Definite-lived Intangible assets: Customer relationships $ 43,752 $ (33,192 ) $ 10,560 $ 58,133 $ (41,055 ) $ 17,078 Distribution rights 33,364 (27,477 ) 5,887 40,280 (32,080 ) 8,200 Other intangible assets 6,457 (3,946 ) 2,511 8,956 (5,779 ) 3,177 Total definite-lived intangible assets 83,573 (64,615 ) 18,958 107,369 (78,914 ) 28,455 Indefinite-lived Intangible assets: Trade names 43,093 — 43,093 44,243 — 44,243 Total intangible assets, excluding goodwill, net $ 126,666 $ (64,615 ) $ 62,051 $ 151,612 $ (78,914 ) $ 72,698
Schedule of expected future amortization expense related to definite-lived intangible assets	As of September 30, 2019, the expected future amortization expense related to definite-lived intangible assets is as follows (in thousands): Fiscal Year: 2020 $ 8,669 2021 5,028 2022 2,569 2023 1,472 2024 555 Thereafter 665 $ 18,958

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Sep. 30, 2019
Payables And Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): September 30, 2019 2018 Compensation and benefits $ 63,005 $ 61,182 Deferred revenue 18,165 18,450 Interest payable 17,951 23,008 Rental obligations 11,670 12,129 Insurance reserves 4,567 4,816 Property and other taxes 3,869 4,607 Loss contingency obligation — 14,294 Operating accruals and other 49,827 41,801 Total accrued liabilities $ 169,054 $ 180,287

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Schedule of future minimum payments, excluding amounts related taxes, insurance, maintenance and special assessments, under non-cancelable operating leases	At September 30, 2019, future minimum payments, excluding amounts related taxes, insurance, maintenance and special assessments, under non-cancelable operating leases are as follows (in thousands): Fiscal Year: 2020 $ 174,578 2021 136,900 2022 95,918 2023 61,944 2024 33,803 Thereafter 40,545 $ 543,688

Debt (Tables)

Debt (Tables)	12 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Summary of long-term debt	Short-term Debt In July 2017, we entered into an amended and restated $500 million, five-year At September 30, 2019 and 2018, we did not have any outstanding borrowing under the ABL facility. At September 30, 2019, we had $482.0 million available for borrowing under the ABL facility. Long-term Debt Long-term debt consists of the following (dollars in thousands): September 30, 2019 2018 Interest Rates Term loan B: Variable-rate tranche 424,000 544,500 LIBOR plus 2.25% Fixed-rate tranche 300,000 300,000 4.500% Senior notes due Nov. 2023 197,419 200,000 5.500% Senior notes due Dec. 2025 687,877 750,000 5.625% Total $ 1,609,296 $ 1,794,500 Plus: capital lease obligations 832 883 Less: unamortized debt issuance costs and discount, net 15,585 21,074 Total debt $ 1,594,543 $ 1,774,309 Less: current maturities 1 5,501 Total long-term debt $ 1,594,542 $ 1,768,808
Schedule of maturities of debt	Maturities of our debt, excluding capital leases, are as follows at September 30, 2019 (in thousands): Fiscal Year: 2020-2023 $ — 2024 921,419 Thereafter 687,877 Total $ 1,609,296

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of provision for income taxes	The provision for income taxes for the fiscal years 2019, 2018 and 2017 consists of the following (in thousands): Fiscal Year Ended September 30, 2019 2018 2017 Current: Federal $ 59,855 $ 68,608 $ 97,332 Foreign 10,132 11,039 10,394 State 15,339 11,344 8,700 Total current portion 85,326 90,991 116,426 Deferred: Federal 4,905 (26,001 ) 14,559 Foreign (1,498 ) 1,868 (2,314 ) State 1,808 3,522 1,951 Total deferred portion 5,215 (20,611 ) 14,196 Total provision for income taxes $ 90,541 $ 70,380 $ 130,622
Schedule of the difference between U.S. statutory federal income tax rate and the effective income tax rate	The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below: Fiscal Year Ended September 30, 2019 2018 2017 U.S. federal statutory income tax rate 21.0 % 24.5 % 35.0 % State income taxes, net of federal tax benefit 3.4 3.2 2.2 Effect of foreign operations — 0.6 0.3 Deferred tax revaluation, including adoption of income tax method changes — (11.5 ) — Deemed repatriation tax (0.3 ) 3.6 — Other, net 0.9 1.0 0.3 Effective tax rate 25.0 % 21.4 % 37.8 %
Schedule of the tax effects of temporary differences that give rise to the Company's deferred tax assets and liabilities	The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands): September 30, 2019 2018 Deferred tax assets attributable to: Foreign loss carryforwards $ 27,097 $ 28,612 Accrued liabilities 12,248 15,676 Share-based compensation expense 9,494 10,762 U.S. foreign tax credits 8,807 8,807 Unrecognized tax benefits 320 322 Inventory adjustments 1,242 — Other 651 442 Total deferred tax assets 59,859 64,621 Valuation allowance (38,287 ) (40,906 ) Total deferred tax assets, net 21,572 23,715 Deferred tax liabilities attributable to: Depreciation and amortization 94,920 92,531 Inventory adjustments — 673 Total deferred tax liabilities 94,920 93,204 Net deferred tax liability $ 73,348 $ 69,489
Schedule of changes in the amount of unrecognized tax benefits	The changes in the amount of unrecognized tax benefits are as follows (in thousands): Fiscal Year Ended September 30, 2019 2018 Balance at beginning of the fiscal year $ 1,368 $ 1,467 Increases related to prior year tax positions — — Decreases related to prior year tax positions (4 ) (3 ) Increases related to current year tax positions 954 309 Lapse of statute (318 ) (405 ) Balance at end of fiscal year $ 2,000 $ 1,368

Segments and Disaggregated Re_2

Segments and Disaggregated Revenue (Tables)	12 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the fiscal years 2019, 2018 and 2017 are as follows (in thousands): 2019 2018 2017 Net sales (for the fiscal year indicated): SBS $ 2,293,094 $ 2,333,838 $ 2,345,116 BSG 1,583,317 1,598,727 1,593,201 Total $ 3,876,411 $ 3,932,565 $ 3,938,317 Earnings before provision for income taxes: Segment operating earnings: SBS $ 366,412 $ 362,853 $ 385,407 BSG 239,572 240,225 254,691 Segment operating earnings 605,984 603,078 640,098 Unallocated expenses (148,193 ) (142,874 ) (138,822 ) Restructuring 682 (33,615 ) (22,679 ) Consolidated operating earnings 458,473 426,589 478,597 Interest expense (96,309 ) (98,162 ) (132,899 ) Earnings before provision for income taxes $ 362,164 $ 328,427 $ 345,698 Depreciation and amortization: SBS $ 65,561 $ 64,017 $ 63,427 BSG 28,568 29,733 31,755 Corporate 13,529 15,079 17,141 Total $ 107,658 $ 108,829 $ 112,323 Payments for property and equipment: SBS $ 69,802 $ 46,289 $ 52,178 BSG 18,997 16,598 19,335 Corporate 18,956 23,620 18,153 Total $ 107,755 $ 86,507 $ 89,666 Total assets (as of September 30): SBS $ 973,304 $ 995,546 $ 1,025,545 BSG 1,012,336 993,122 964,984 Sub-total 1,985,640 1,988,668 1,990,529 Corporate 112,806 108,746 108,478 Total $ 2,098,446 $ 2,097,414 $ 2,099,007
Schedule of geographic area information	Certain geographic data is as follows (in thousands): 2019 2018 2017 Net sales (for the fiscal year indicated): United States $ 3,169,821 $ 3,188,993 $ 3,248,662 Other countries 706,590 743,572 689,655 Total $ 3,876,411 $ 3,932,565 $ 3,938,317 Long-lived assets (as of September 30): United States $ 259,815 $ 234,475 $ 230,698 United Kingdom 24,476 29,493 32,771 Other countries 35,337 44,389 50,248 Total $ 319,628 $ 308,357 $ 313,717
Schedule of disaggregation of segment revenues by merchandise category and sales channels	The following tables disaggregate our segment revenues by merchandise category: Fiscal Year Ended September 30, SBS 2019 2018 2017 Hair color 29.4 % 26.9 % 26.0 % Hair care 20.4 % 20.9 % 21.1 % Skin and nail care 14.8 % 15.7 % 15.7 % Styling tools 13.5 % 13.9 % 14.1 % Multicultural products 7.1 % 7.5 % 7.9 % Salon supplies and accessories 6.6 % 7.1 % 7.3 % Other beauty items 8.2 % 8.0 % 7.9 % Total 100.0 % 100.0 % 100.0 % Fiscal Year Ended September 30, BSG 2019 2018 2017 Hair color 39.5 % 38.4 % 37.0 % Hair care 35.1 % 33.7 % 34.4 % Skin and nail care 8.1 % 8.7 % 9.0 % Styling tools 3.4 % 3.9 % 4.2 % Other beauty items 6.3 % 6.7 % 6.9 % Promotional items 7.6 % 8.6 % 8.5 % Total 100.0 % 100.0 % 100.0 % The following table disaggregates our segment revenue by sales channels: SBS BSG Fiscal Year Ended September 30, Fiscal Year Ended September 30, 2019 2018 2017 2019 2018 2017 Company-operated stores 96.9 % 97.5 % 98.1 % 69.4 % 68.7 % 68.4 % E-commerce 2.8 % 2.2 % 1.6 % 4.8 % 3.7 % 3.3 % Franchise stores 0.3 % 0.3 % 0.3 % 7.6 % 7.7 % 7.7 % Distributor sales consultants — — — 18.2 % 19.9 % 20.6 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

Separate Financial Informatio_2

Separate Financial Information of Guarantor Subsidiaries (Tables)	12 Months Ended
	Sep. 30, 2019
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet September 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 $ 41,009 $ 30,476 $ — $ 71,495 Trade and other accounts receivable, net — — 65,746 38,793 — 104,539 Due from affiliates — — 2,878,072 — (2,878,072 ) — Inventory — — 722,830 230,077 — 952,907 Other current assets 1,436 132 22,480 10,564 — 34,612 Property and equipment, net 6 — 258,132 61,490 — 319,628 Investment in subsidiaries 1,621,843 4,374,334 385,629 — (6,381,806 ) — Goodwill and other intangible assets, net — — 452,645 140,192 — 592,837 Other assets 1,446 3,499 (581 ) 18,064 — 22,428 Total assets $ 1,624,731 $ 4,377,975 $ 4,825,962 $ 529,656 $ (9,259,878 ) $ 2,098,446 Liabilities and Stockholders’ (Deficit) Equity Accounts payable $ 48 $ — $ 235,940 $ 42,700 $ — $ 278,688 Due to affiliates 1,672,322 1,142,324 — 63,426 (2,878,072 ) — Accrued liabilities 188 17,937 121,375 29,554 — 169,054 Income taxes payable 6,055 2,161 1 119 — 8,336 Long-term debt — 1,593,710 1 832 — 1,594,543 Other liabilities 6,441 — 17,639 3,677 — 27,757 Deferred income tax liabilities, net — — 76,672 3,719 — 80,391 Total liabilities 1,685,054 2,756,132 451,628 144,027 (2,878,072 ) 2,158,769 Total stockholders’ (deficit) equity (60,323 ) 1,621,843 4,374,334 385,629 (6,381,806 ) (60,323 ) Total liabilities and stockholders’ (deficit) equity $ 1,624,731 $ 4,377,975 $ 4,825,962 $ 529,656 $ (9,259,878 ) $ 2,098,446 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 Fiscal Year Ended September 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 $ — $ — $ 3,131,360 $ 745,051 $ — $ 3,876,411 Related party sales — — 2,201 — (2,201 ) — Cost of goods sold — — 1,568,663 399,407 (2,201 ) 1,965,869 Gross profit — — 1,564,898 345,644 — 1,910,542 Selling, general and administrative expenses 11,331 607 1,135,926 304,887 — 1,452,751 Restructuring — — (682 ) — — (682 ) Operating earnings (loss) (11,331 ) (607 ) 429,654 40,757 — 458,473 Interest expense (income) — 96,464 5 (160 ) — 96,309 Earnings (loss) before provision for income taxes (11,331 ) (97,071 ) 429,649 40,917 — 362,164 Provision (benefit) for income taxes (2,742 ) (24,888 ) 109,230 8,941 — 90,541 Equity in earnings of subsidiaries, net of tax 280,212 352,395 31,976 — (664,583 ) — Net earnings 271,623 280,212 352,395 31,976 (664,583 ) 271,623 Other comprehensive loss, net of tax — (4,566 ) — (22,730 ) — (27,296 ) Total comprehensive income (loss) $ 271,623 $ 275,646 $ 352,395 $ 9,246 $ (664,583 ) $ 244,327 Condensed Consolidating Statement of Earnings and Comprehensive Income Fiscal Year Ended 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 Net sales $ — $ — $ 3,152,120 $ 780,445 $ — $ 3,932,565 Related party sales — — 2,294 — (2,294 ) — Cost of goods sold — — 1,581,385 409,061 (2,294 ) 1,988,152 Gross profit — — 1,573,029 371,384 — 1,944,413 Selling, general and administrative expenses 10,957 1,538 1,136,312 335,402 — 1,484,209 Restructuring — — 33,615 — — 33,615 Operating earnings (loss) (10,957 ) (1,538 ) 403,102 35,982 — 426,589 Interest expense (income) — 98,332 (3 ) (167 ) — 98,162 Earnings (loss) before provision for income taxes (10,957 ) (99,870 ) 403,105 36,149 — 328,427 Provision (benefit) for income taxes (2,734 ) (28,787 ) 73,747 28,154 — 70,380 Equity in earnings of subsidiaries, net of tax 266,270 337,353 7,995 — (611,618 ) — Net earnings 258,047 266,270 337,353 7,995 (611,618 ) 258,047 Other comprehensive income (loss), net of tax — 2,449 — (10,604 ) — (8,155 ) Total comprehensive income (loss) $ 258,047 $ 268,719 $ 337,353 $ (2,609 ) $ (611,618 ) $ 249,892 Condensed Consolidating Statement of Earnings and Comprehensive Income Fiscal Year Ended September 30, 2017 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 3,209,039 $ 729,278 $ — $ 3,938,317 Related party sales — — 2,501 — (2,501 ) — Cost of goods sold — — 1,590,184 385,739 (2,501 ) 1,973,422 Gross profit — — 1,621,356 343,539 — 1,964,895 Selling, general and administrative expenses 10,939 526 1,130,615 321,539 — 1,463,619 Restructuring — — 22,679 — — 22,679 Operating earnings (loss) (10,939 ) (526 ) 468,062 22,000 — 478,597 Interest expense — 132,696 6 197 — 132,899 Earnings (loss) before provision for income taxes (10,939 ) (133,222 ) 468,056 21,803 — 345,698 Provision (benefit) for income taxes (4,246 ) (51,726 ) 177,383 9,211 — 130,622 Equity in earnings of subsidiaries, net of tax 221,769 303,265 12,592 — (537,626 ) — Net earnings 215,076 221,769 303,265 12,592 (537,626 ) 215,076 Other comprehensive income (loss), net of tax — (1,084 ) — 19,299 — 18,215 Total comprehensive income $ 215,076 $ 220,685 $ 303,265 $ 31,891 $ (537,626 ) $ 233,291
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows (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 $ 2,364 $ (70,150 ) $ 373,313 $ 14,888 $ — $ 320,415 Cash Flows from Investing Activities: Payments for property and equipment, net (1 ) — (79,379 ) (13,063 ) — (92,443 ) Acquisitions, net of cash acquired — — (2,584 ) (840 ) — (3,424 ) Due from affiliates — — (279,391 ) — 279,391 — Net cash used by investing activities (1 ) — (361,354 ) (13,903 ) 279,391 (95,867 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 593,500 4 — — 593,504 Repayments of long-term debt — (777,533 ) (4 ) (1 ) — (777,538 ) Payments for common stock repurchased (47,434 ) — — — — (47,434 ) Proceeds from exercises of stock options 2,160 — — — — 2,160 Due to affiliates 42,911 254,183 — (17,703 ) (279,391 ) — Net cash provided (used) by financing activities (2,363 ) 70,150 — (17,704 ) (279,391 ) (229,308 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (1,040 ) — (1,040 ) Net increase (decrease) in cash and cash equivalents — — 11,959 (17,759 ) — (5,800 ) Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 41,009 $ 30,476 $ — $ 71,495 Condensed Consolidating Statement of Cash Flows 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 Net cash provided (used) by operating activities $ 23,424 $ (62,948 ) $ 384,958 $ 27,227 $ — $ 372,661 Cash Flows from Investing Activities: Payments for property and equipment, net — — (68,689 ) (17,449 ) — (86,138 ) Acquisitions, net of cash acquired — — — (9,175 ) — (9,175 ) Due from affiliates — — (309,310 ) — 309,310 — Net cash used by investing activities — — (377,999 ) (26,624 ) 309,310 (95,313 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 461,814 5 — — 461,819 Repayments of long-term debt — (558,000 ) (4 ) (595 ) — (558,599 ) Debt issuance cost — (1,151 ) — — — (1,151 ) Payments for common stock repurchased (166,701 ) — — — — (166,701 ) Proceeds from exercises of stock options 1,350 — — — — 1,350 Due to affiliates 141,927 160,285 — 7,098 (309,310 ) — Net cash provided (used) by financing activities (23,424 ) 62,948 1 6,503 (309,310 ) (263,282 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (530 ) — (530 ) Net increase in cash and cash equivalents — — 6,960 6,576 — 13,536 Cash and cash equivalents, beginning of period — 10 22,090 41,659 — 63,759 Cash and cash equivalents, end of period $ — $ 10 $ 29,050 $ 48,235 $ — $ 77,295 Condensed Consolidating Statement of Cash Flows (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 $ 4,095 $ (72,779 ) $ 386,604 $ 25,366 $ — $ 343,286 Cash Flows from Investing Activities: Payments for property and equipment, net — — (64,000 ) (25,625 ) — (89,625 ) Due from affiliates — — (322,866 ) — 322,866 — Net cash used by investing activities — — (386,866 ) (25,625 ) 322,866 (89,625 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 1,277,250 — — — 1,277,250 Repayments of long-term debt — (1,215,940 ) (16 ) (687 ) — (1,216,643 ) Debt issuance costs — (8,376 ) — — — (8,376 ) Payments for common stock repurchased (346,873 ) — — — — (346,873 ) Proceeds from exercises of stock options 17,339 — — — — 17,339 Due to affiliates 325,439 (8,517 ) — 5,944 (322,866 ) — Net cash provided (used) by financing activities (4,095 ) 44,417 (16 ) 5,257 (322,866 ) (277,303 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — 779 — 779 Net increase (decrease) in cash and cash equivalents — (28,362 ) (278 ) 5,777 — (22,863 ) Cash and cash equivalents, beginning of period — 28,372 22,368 35,882 — 86,622 Cash and cash equivalents, end of period $ — $ 10 $ 22,090 $ 41,659 $ — $ 63,759

Restructuring (Tables)

Restructuring (Tables)	12 Months Ended
	Sep. 30, 2019
Summary of restructuring expense and gains	Restructuring expense and gains for the fiscal years ended September 30, 2019, 2018 and 2017, are as follows (in thousands): 2019 2018 2017 Supply Chain Modernization $ (4,662 ) $ — $ — 2018 Restructuring Plan 3,980 33,615 — 2017 Restructuring Plan — — 22,679 Total expense (gain) $ (682 ) $ 33,615 $ 22,679
Supply Chain Modernization
Schedule of restructuring	The liability related to the supply chain modernization, which is included in accrued liabilities on our consolidated balance sheets, is as follows (in thousands): Supply Chain Modernization Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at September 30, 2019 Workforce reductions $ — $ 2,502 $ 1,848 $ — $ 654 Facility closures — 1,021 817 — 204 Other — 224 224 — — Total $ — $ 3,747 $ 2,889 $ — $ 858
2018 Restructuring Plan
Schedule of restructuring	The liability related to the 2018 Restructuring Plan, which is included in accrued liabilities on our consolidated balance sheets, is as follows (in thousands): 2018 Restructuring Plan Liability at September 30, 2018 Expenses Cash Payments Adjustments Liability at September 30, 2019 Workforce reductions $ 3,444 $ 643 $ 4,087 $ — $ — Consulting 3,087 2,502 5,589 — — Other 2,266 835 3,031 — 70 Total $ 8,797 $ 3,980 $ 12,707 $ — $ 70

Quarterly Financial Data (Una_2

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Sep. 30, 2019
Quarterly Financial Information Disclosure [Abstract]
Schedule of selected unaudited quarterly consolidated statement of earnings data	Certain unaudited quarterly consolidated statement of earnings information for the fiscal years ended September 30, 2019 and 2018 is summarized below (in thousands, except per share data): 1 st 2 nd 3 rd 4 th Fiscal Year Quarter Quarter Quarter Quarter 2019: Net sales $ 989,453 $ 945,852 $ 975,169 $ 965,937 Gross profit $ 480,705 $ 468,324 $ 482,222 $ 479,291 Net earnings $ 65,727 $ 65,725 $ 71,164 $ 69,007 Earnings per share (a) Basic $ 0.55 $ 0.55 $ 0.59 $ 0.58 Diluted $ 0.54 $ 0.54 $ 0.59 $ 0.58 2018: Net sales $ 994,964 $ 975,321 $ 996,283 $ 965,997 Gross profit $ 486,629 $ 486,322 $ 493,370 $ 478,092 Net earnings $ 83,264 $ 61,371 $ 58,226 $ 55,186 Earnings per share (a) Basic $ 0.65 $ 0.49 $ 0.48 $ 0.46 Diluted $ 0.65 $ 0.49 $ 0.48 $ 0.46 (a) The sum of the quarterly earnings per share may not equal the full year amount due to rounding of the calculated amounts.

Significant Accounting Polici_4

Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Trade Accounts Receivable and Accounts Receivable, Other
Allowance for Doubtful Accounts	$ 1.7	$ 1.8
Selling, general and administrative expenses
Property Plant and Equipment
Depreciation expense	$ 96.1	$ 97.2	$ 99.2

Significant Accounting Polici_5

Significant Accounting Policies - Summary of Property and Equipment Balances and Estimated Useful Lives (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 978,913	$ 919,378
Accumulated depreciation and amortization	(659,285)	(611,021)
Total property and equipment, net	319,628	308,357	$ 313,717
Land
Property Plant And Equipment [Line Items]
Total property and equipment, gross	10,061	11,130
Buildings and building improvements
Property Plant And Equipment [Line Items]
Total property and equipment, gross	53,132	64,251
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment, gross	281,195	274,848
Furniture, fixtures and equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 634,525	$ 569,149
Minimum | Buildings and building improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Minimum | Leasehold improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	2 years
Minimum | Furniture, fixtures and equipment
Property Plant And Equipment [Line Items]
Estimated useful lives	2 years
Maximum | Buildings and building improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	40 years
Maximum | Leasehold improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	10 years
Maximum | Furniture, fixtures and equipment
Property Plant And Equipment [Line Items]
Estimated useful lives	10 years

Significant Accounting Polici_6

Significant Accounting Policies - Goodwill and Indefinite-lived Intangible Assets (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Indefinite-lived Intangible Assets
Impairment losses in connection with the goodwill	$ 0	$ 0	$ 0
Impairment of intangible assets with indefinite lives	$ 0	$ 0	$ 0

Significant Accounting Polici_7

Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Revenue recognition payment terms	30 days

Significant Accounting Polici_8

Significant Accounting Policies - Summary of Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Contract With Customer Liability [Line Items]
Total liability	$ 12,866	$ 5,309
Gift Cards | Accrued Liabilities
Contract With Customer Liability [Line Items]
Total liability	4,558	4,144
Rewards Loyalty Program | Accrued Liabilities
Contract With Customer Liability [Line Items]
Total liability	$ 8,308	$ 1,165

Significant Accounting Polici_9

Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Advertising Costs
Advertising costs	$ 73.3	$ 83.4	$ 82

Accounting Changes and Recent_4

Accounting Changes and Recent Accounting Pronouncements - Schedule of Effect of ASU No. 2014-09 Adoption on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Recent Accounting Pronouncements
Accounts receivable, other	$ 61,403	$ 42,073
Accrued liabilities	169,054	$ 180,287
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Accounts receivable, other	58,968
Accrued liabilities	166,619
ASU 2014-09 | ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Accounts receivable, other	2,435
Accrued liabilities	$ 2,435

Accounting Changes and Recent_5

Accounting Changes and Recent Accounting Pronouncements - Effect of ASU No. 2014-09 Adoption on Consolidated Statement of Earnings (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Recent Accounting Pronouncements
Net sales	$ 965,937	$ 975,169	$ 945,852	$ 989,453	$ 965,997	$ 996,283	$ 975,321	$ 994,964	$ 3,876,411	$ 3,932,565	$ 3,938,317
Gross Profit	$ 479,291	$ 482,222	$ 468,324	$ 480,705	$ 478,092	$ 493,370	$ 486,322	$ 486,629	1,910,542	1,944,413	1,964,895
Selling, general and administrative expenses									1,452,751	$ 1,484,209	$ 1,463,619
ASU 2014-09 | Excluding ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales									3,876,136
Gross Profit									1,910,267
Selling, general and administrative expenses									1,452,476
ASU 2014-09 | ASU No. 2014-09 Effect
Recent Accounting Pronouncements
Net sales									275
Gross Profit									275
Selling, general and administrative expenses									$ 275

Accounting Changes and Recent_6

Accounting Changes and Recent Accounting Pronouncements (Details) - ASU 16-02 $ in Millions	Sep. 30, 2019USD ($)
Recent Accounting Pronouncements
Estimated amount of Lease liability	$ 500
Right of use asset	$ 500

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Long-term debt
Long-term debt, Carrying Value	$ 1,609,296	$ 1,794,500
Long-term debt, Fair Value	1,608,644	1,735,558
Level 2 | Other Long-Term Debt
Long-term debt
Long-term debt, Carrying Value	724,000	844,500
Long-term debt, Fair Value	709,830	824,068
Level 1 | Senior notes
Long-term debt
Long-term debt, Carrying Value	885,296	950,000
Long-term debt, Fair Value	898,814	911,490
Fair value measurement on recurring basis | Level 2 | Other assets
Financial Assets
Interest rate caps	$ 344	$ 8,367

Accumulated Stockholders' Def_3

Accumulated Stockholders' Deficit - Share Repurchase Program (Details) - USD ($) shares in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
2017 Share Repurchase program
Share Repurchase Program
Amount of shares authorized to be repurchased	$ 1,000,000,000
Term of share repurchase program	4 years
Stock repurchase program, expiration date	Sep. 30, 2021
2017 Share Repurchase Program and 2014 Share Repurchase Program
Share Repurchase Program
Common stock shares repurchased and retired (in shares)		3.6	10	16.1
Cost of repurchase and retirement of common stock		$ 46,600,000	$ 165,900,000	$ 346,100,000

Accumulated stock holders' Defi

Accumulated stock holders' Deficit - Change in AOCL (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ (268,556)	$ (363,616)
Balance	(60,323)	(268,556)
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	1,365	(1,084)
Other comprehensive income (loss) before reclassifications, net of tax	(6,167)	2,449
Reclassification to net earnings, net of tax	1,601
Balance	(3,201)	1,365
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (loss) before reclassifications, net of tax	(869)
Reclassification to net earnings, net of tax	715
Balance	(154)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(91,356)	(80,752)
Other comprehensive income (loss) before reclassifications, net of tax	(22,576)	(10,604)
Balance	(113,932)	(91,356)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(89,991)	(81,836)
Other comprehensive income (loss) before reclassifications, net of tax	(29,612)	(8,155)
Reclassification to net earnings, net of tax	2,316
Balance	$ (117,287)	$ (89,991)

Weighted-Average Shares (Detail

Weighted-Average Shares (Details) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share Reconciliation:
Weighted average basic shares	119,636	123,190	137,533
Dilutive securities:
Stock option and stock award programs	647	642	643
Weighted average diluted shares	120,283	123,832	138,176

Weighted-Average Shares - Addit

Weighted-Average Shares - Additional Information (Details) - shares shares in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
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 because the options were anti-dilutive (in shares)	4.7	5.2	4.5

Share-Based Payments - Addition

Share-Based Payments - Additional Information (Details) - $ / shares shares in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share-based Payment Arrangement, Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of awards	$ 5.86	$ 4.84	$ 6.37
Omnibus Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized to issues under share-based payments	8
Restricted stock units, retention period	6 months
Omnibus Plans | Performance Unit Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of awards	$ 17.22	$ 17.42	$ 25.53
Performance period (in years)	3 years
Vesting period (in years)	3 years
Omnibus Plans | Performance Unit Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of earnings	0.00%	0.00%	0.00%
Omnibus Plans | Performance Unit Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of earnings	200.00%	200.00%	200.00%
Omnibus Plans | Share-based Payment Arrangement, Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	3 years
Expiration period	10 years
Omnibus Plans | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	3 years
Omnibus Plans | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year

Share-Based Payments (Details)

Share-Based Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation expense	$ 9,180	$ 10,519	$ 10,507
Income tax benefit related to share-based compensation expense	$ 2,357	$ 3,013	$ 3,918

Share-Based Payments - Performa

Share-Based Payments - Performance-Based Awards (Details) - Performance Unit Awards $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Share-Based Payments
Payout percentage (in percentage)	100.00%
Performance Unit Awards (in shares)
Unvested at the beginning of the period (in shares) | shares	349
Granted (in shares) | shares	230
Vested (in shares) | shares	(28)
Forfeited (in shares) | shares	(140)
Unvested at the end of the period (in shares) | shares	411
Performance Unit Awards (in dollars per share)
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 20.88
Granted (in dollars per share) | $ / shares	17.22
Vested (in dollar per share) | $ / shares	22.26
Forfeited (in dollars per share) | $ / shares	20.63
Unvested at the end of the period (in dollars per share) | $ / shares	$ 18.83
Compensation expense Potentially recognized | $	$ 11.6
Weighted average period	1 year 10 months 24 days

Share-Based Payments - Service-

Share-Based Payments - Service-Based Awards and Stock Option Awards (Details) - Stock Option Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Stock Options, Number of Outstanding Options
Outstanding at the beginning of the period (in shares)	5,405
Granted (in shares)	948
Exercised (in shares)	(152)
Forfeited or expired (in shares)	(1,299)
Outstanding at the end of the period (in shares)	4,902	5,405
Exercisable at the end of the period (in shares)	4,054
Stock Options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 23.04
Granted (in dollars per share)	18.14
Exercised (in dollars per share)	14.34
Forfeited or expired (in dollars per share)	24.09
Outstanding at the end of the period (in dollars per share)	22.08	$ 23.04
Exercisable at the end of the period (in dollars per share)	$ 23
Stock Options, Weighted Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	5 years 9 months 18 days	5 years 4 months 24 days
Exercisable at September 30, 2019	5 years 1 month 6 days
Stock Options, Aggregate Intrinsic Value
Outstanding balance at period end (in dollars)	$ 670	$ 3,161
Exercisable at the end of the period (in dollars)	$ 670

Share-Based Payments - Schedule

Share-Based Payments - Schedule of weighted average assumptions for valuation of stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Weighted average assumptions relating to the valuation of stock options
Proceeds from exercises of stock options	$ 2,160	$ 1,350	$ 17,339
Stock Option Awards
Weighted average assumptions relating to the valuation of stock options
Expected life (in years)	5 years	5 years	5 years
Expected volatility for the Company’s common stock	30.50%	27.40%	25.30%
Risk-free interest rate	3.00%	2.10%	1.30%
Dividend yield	0.00%	0.00%	0.00%
Weighted average fair value of the stock options issued (in dollars per share)	$ 5.86	$ 4.84	$ 6.37
Aggregate fair value of stock options	$ 5,100	$ 7,700	$ 13,100
Aggregate intrinsic value of options exercised	900	1,300	7,700
Proceeds from exercises of stock options	2,200	1,400	17,300
Tax benefit realized for the tax deductions of stock option exercises	200	$ 300	$ 2,900
Total unrecognized compensation expenses related to unvested awards	$ 4,400
Weighted average period for recognition of unvested awards	1 year 8 months 12 days

Share-Based Payments - Restrict

Share-Based Payments - Restricted Stock Awards (Details) - Restricted Stock Awards $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Restricted stock (in shares)
Unvested at the beginning of the period (in shares) | shares	219
Granted (in shares) | shares	287
Vested (in shares) | shares	(169)
Forfeited (in shares) | shares	(75)
Unvested at the end of the period (in shares) | shares	262
Restricted Stock (in dollars per share)
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 16.98
Granted (in dollars per share) | $ / shares	18.14
Vested (in dollar per share) | $ / shares	17.77
Forfeited (in dollars per share) | $ / shares	17.84
Unvested at the end of the period (in dollars per share) | $ / shares	$ 17.53
Total unrecognized compensation expenses related to unvested awards | $	$ 4
Weighted average period for recognition of unvested awards	1 year 8 months 12 days

Share-Based Payments - Restri_2

Share-Based Payments - Restricted Stock Units (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands	12 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Restricted stock (in shares)
Granted (in shares) | shares	88
Vested (in shares) | shares	(80)
Forfeited (in shares) | shares	(8)
Restricted Stock (in dollars per share)
Granted (in dollars per share) | $ / shares	$ 18.14
Vested (in dollar per share) | $ / shares	18.14
Forfeited (in dollars per share) | $ / shares	$ 18.14
Total unrecognized compensation expenses related to unvested awards | $	$ 0

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of changes in carrying amounts of goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Change in the carrying amounts of goodwill
Balance at the beginning of the period	$ 535,925	$ 537,791
Acquisitions	284	1,045
Foreign currency translation	(5,423)	(2,911)
Balance at the end of the period	530,786	535,925
Sally Beauty Supply
Change in the carrying amounts of goodwill
Balance at the beginning of the period	81,217	82,670
Acquisitions	284	329
Foreign currency translation	(4,596)	(1,782)
Balance at the end of the period	76,905	81,217
Beauty Systems Group
Change in the carrying amounts of goodwill
Balance at the beginning of the period	454,708	455,121
Acquisitions		716
Foreign currency translation	(827)	(1,129)
Balance at the end of the period	$ 453,881	$ 454,708

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of other intangible assets, excluding goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	$ 83,573	$ 107,369
Definite-lived Intangible assets, Accumulated Amortization	(64,615)	(78,914)
Definite-lived Intangible assets, Net	18,958	28,455
Total intangible assets, excluding goodwill,Gross Carrying Amount	126,666	151,612
Total intangible assets, excluding goodwill, Net	62,051	72,698
Trade Names
Indefinite and Finite Lived Intangible Assets by Major Class
Indefinite-lived Intangible assets, Net	43,093	44,243
Customer Relationships
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	43,752	58,133
Definite-lived Intangible assets, Accumulated Amortization	(33,192)	(41,055)
Definite-lived Intangible assets, Net	10,560	17,078
Distribution Rights
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	33,364	40,280
Definite-lived Intangible assets, Accumulated Amortization	(27,477)	(32,080)
Definite-lived Intangible assets, Net	5,887	8,200
Other Intangible Assets
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	6,457	8,956
Definite-lived Intangible assets, Accumulated Amortization	(3,946)	(5,779)
Definite-lived Intangible assets, Net	$ 2,511	$ 3,177

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Indefinite and Finite Lived Intangible Assets by Major Class
Amortization expense	$ 11.3	$ 11.7	$ 13.1
Minimum
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived intangible assets, useful life	3 years
Maximum
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived intangible assets, useful life	10 years

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Expected future amortization expense related to definite-lived intangible assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Estimated future amortization expense related to intangible assets subject to amortization:
2020	$ 8,669
2021	5,028
2022	2,569
2023	1,472
2024	555
Thereafter	665
Definite-lived Intangible assets, Net	$ 18,958	$ 28,455

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018
Accrued Liabilities
Compensation and benefits	$ 63,005,000	$ 61,182,000
Deferred revenue	18,165,000	18,450,000
Interest payable	17,951,000	23,008,000
Rental obligations	11,670,000	12,129,000
Insurance reserves	4,567,000	4,816,000
Property and other taxes	3,869,000	4,607,000
Loss contingency obligation	0	14,294,000
Operating accruals and other	49,827,000	41,801,000
Total accrued liabilities	$ 169,054,000	$ 180,287,000

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2019USD ($)
Fiscal Year:
2020	$ 174,578
2021	136,900
2022	95,918
2023	61,944
2024	33,803
Thereafter	40,545
Total operating lease, future minimum payments due	$ 543,688

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Loss Contingencies [Line Items]
Total rental expense for operating leases	$ 250,400,000	$ 249,800,000	$ 242,000,000
Outstanding letters of credit	18,000,000	18,700,000
Data security incidents, remaining liability	$ 0	14,294,000
Data security incidents
Loss Contingencies [Line Items]
Data security incident expenses		$ 7,900,000

Debt - Short-term Debt (Details

Debt - Short-term Debt (Details) - ABL facility - USD ($)	1 Months Ended
	Jul. 31, 2017	Sep. 30, 2019	Sep. 30, 2018
Debt Instruments
Revolving credit facility	$ 500,000,000	$ 0	$ 0
Debt instrument term	5 years
Debt instrument, maturity date	Jul. 6, 2022
Line of credit facility, commitment fee percentage	0.20%
Revolving credit facility		$ 482,000,000
Prime | Minimum
Debt Instruments
Percentage points added to the reference rate	0.25%
Prime | Maximum
Debt Instruments
Percentage points added to the reference rate	0.50%
LIBOR | Minimum
Debt Instruments
Percentage points added to the reference rate	1.25%
LIBOR | Maximum
Debt Instruments
Percentage points added to the reference rate	1.50%

Debt - Details of Long-term Deb

Debt - Details of Long-term Debt Table (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Debt Instruments
Total	$ 1,609,296	$ 1,794,500
Variable-rate tranche
Debt Instruments
Total	$ 424,000	544,500
Variable-rate tranche | LIBOR
Debt Instruments
Percentage points added to the reference rate	2.25%
Fixed-rate tranche
Debt Instruments
Total	$ 300,000	300,000
Interest rate (as a percent)	4.50%
Senior notes due Nov. 2023
Debt Instruments
Total	$ 197,419	200,000
Interest rate (as a percent)	5.50%
Senior notes due Dec. 2025
Debt Instruments
Total	$ 687,877	$ 750,000
Interest rate (as a percent)	5.625%

Debt - Details of Long-term D_2

Debt - Details of Long-term Debt Table - Total debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Debt Disclosure [Abstract]
Total	$ 1,609,296	$ 1,794,500
Plus: capital lease obligations	832	883
Less: unamortized debt issuance costs and discount, net	15,585	21,074
Total debt	$ 1,594,543	$ 1,774,309

Debt - Details of Long-term D_3

Debt - Details of Long-term Debt Table - Total long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Debt Disclosure [Abstract]
Total debt	$ 1,594,543	$ 1,774,309
Less: current maturities	1	5,501
Total long-term debt	$ 1,594,542	$ 1,768,808

Debt - Maturities of the Compan

Debt - Maturities of the Company's debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Fiscal Year:
2024	$ 921,419
Thereafter	687,877
Total	$ 1,609,296	$ 1,794,500

Debt - Term loan (Details)

Debt - Term loan (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Mar. 31, 2018	Jul. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Debt Instruments
Aggregate principal amount paid down			$ 777,538	$ 558,599	$ 1,216,643
Gain (loss) on extinguishment of debt			(951)	$ (876)	$ (27,981)
Term loan B
Debt Instruments
Aggregate principal amount paid down			115,000
Gain (loss) on extinguishment of debt			$ (1,400)
Variable-rate tranche | LIBOR
Debt Instruments
Debt instrument, variable percentage			2.25%
Sally Holdings, LLC | Term Loan B
Debt Instruments
Debt instrument term		7 years
Debt instrument, face amount		$ 850,000
Debt instrument, maturity date		Jul. 5, 2024
Sally Holdings, LLC | Variable-rate tranche
Debt Instruments
Debt instrument, annual rate on original amount		0.25%
Sally Holdings, LLC | Term Loan B
Debt Instruments
Basis Points	0.25%
Sally Holdings, LLC | Term Loan B | LIBOR
Debt Instruments
Debt instrument, variable percentage	2.25%

Debt - Senior Notes (Details)

Debt - Senior Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Debt Instruments
Gain (loss) on extinguishment of debt	$ (951)	$ (876)	$ (27,981)
Write off of unamortized debt issuance costs	700
Senior notes due Nov. 2023
Debt Instruments
Debt instrument repurchased, aggregate principal amount	2,600
Senior notes due Dec. 2025
Debt Instruments
Debt instrument repurchased, aggregate principal amount	$ 62,200
Total tender offer price	98.10%
Gain (loss) on extinguishment of debt	$ 500
Gain from discount paid under face value	$ 1,200

Derivative Instruments - (Detai

Derivative Instruments - (Details)	12 Months Ended
	Sep. 30, 2019USD ($)instrumentderivative	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0
Repayment of debt	$ 777,538,000	$ 558,599,000	$ 1,216,643,000
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC
Derivative Instruments
Notional Amount				$ 550,000,000
Derivative instruments, expiration date	Jun. 30, 2023
Number of interest rate caps | derivative				2
Interest rate caps | Term loan B variable tranche | Sally Holdings, LLC
Derivative Instruments
Notional Amount	$ 115,000,000
Number of interest rate caps | derivative	1
Repayment of debt	$ 115,000,000
Debt principal amount	115,000,000
Reclassified loss from AOCL	1,200,000
Interest rate caps designated as cash flow hedges to be reclassified in to interest expense over next 12 months	600,000
Reclassified loss from AOCL, net	1,600,000
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract
Derivative Instruments
Foreign currency forwards designated as cash flow hedges to be reclassified in to cost of goods sold over next 12 months	300,000
Foreign currency forwards designated as cash flow hedges to be reclassified in to cost of goods sold	$ 700,000
Selling, General and Administrative Expenses | Non-Designated | Foreign Exchange Contract
Derivative Instruments
Gain (loss) on derivative instrument		$ 1,600,000	$ (2,800,000)

401(k) and Profit Sharing Plan

401(k) and Profit Sharing Plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, expense recognized	$ 6,200,000	$ 6,500,000	$ 7,100,000
Defined contributionplan, plan name	401(k) Plans
Profit sharing plan, expense recognized	$ 0	$ 0	$ 0
U.S. 401(k) Plan
Defined Benefit Plan Disclosure [Line Items]
Defined contributionplan, plan name	U.S. 401(k) Plan
Puerto Rico 401(k) Plan
Defined Benefit Plan Disclosure [Line Items]
Defined contributionplan, plan name	Puerto Rico 401(k) Plan
Defined Contribution Plan, minimum employment period for contribution to plan	1 year

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Unremitted earnings of foreign operations		$ 3,000
Reversal amount of tax benefit as a result of change in the regulations	$ 2,500
Current:
Federal		59,855	$ 68,608	$ 97,332
Foreign		10,132	11,039	10,394
State		15,339	11,344	8,700
Total current portion		85,326	90,991	116,426
Deferred:
Federal		4,905	(26,001)	14,559
Foreign		(1,498)	1,868	(2,314)
State		1,808	3,522	1,951
Total deferred portion		5,215	(20,611)	14,196
Total provision for income taxes		$ 90,541	$ 70,380	$ 130,622

Income Taxes - Schedule of Diff

Income Taxes - Schedule of Difference Between US Federal Statutory Income Tax Rate and Effective Income Tax Rate (Details)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	24.50%	35.00%
State income taxes, net of federal tax benefit	3.40%	3.20%	2.20%
Effect of foreign operations		0.60%	0.30%
Deferred tax revaluation, including adoption of income tax method changes		(11.50%)
Deemed repatriation tax	(0.30%)	3.60%
Other, net	0.90%	1.00%	0.30%
Effective tax rate	25.00%	21.40%	37.80%

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets (Details) - USD ($)	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Deferred tax assets attributable to:
Foreign loss carryforwards	$ 27,097,000	$ 28,612,000
Accrued liabilities	12,248,000	15,676,000
Share-based compensation expense	9,494,000	10,762,000
U.S. foreign tax credits	8,807,000	8,807,000
Unrecognized tax benefits	320,000	322,000
Inventory adjustments	1,242,000
Other	651,000	442,000
Total deferred tax assets	59,859,000	64,621,000
Valuation allowance	(38,287,000)	(40,906,000)
Total deferred tax assets, net	21,572,000	23,715,000
Deferred tax liabilities attributable to:
Depreciation and amortization	94,920,000	92,531,000
Inventory adjustments		673,000
Total deferred tax liabilities	94,920,000	93,204,000
Net deferred tax liability	73,348,000	69,489,000
Domestic earnings before provision for income taxes	328,300,000	300,400,000	$ 332,500,000
Foreign earnings before provision for income taxes	33,900,000	28,000,000	$ 13,200,000
Deferred taxes on accumulated undistributed earnings of our foreign operations	0
Total operating loss carry-forward	97,300,000	103,000,000
Operating loss carry-forward, subject to valuation allowance	79,000,000	88,600,000
Amount of operating loss carry-forwards with an expiration date	7,700,000
Amount of operating loss carry-forwards without an expiration date	89,500,000
Total tax credit carryforwards	11,200,000	11,600,000
Expiring tax credit carryforwards	1,100,000
Non-expiring tax credit carryforwards	1,300,000
Total Tax credit carryforwards, subject to a valuation allowance	10,100,000	$ 10,200,000
U.S. foreign
Deferred tax liabilities attributable to:
Expiring tax credit carryforwards	$ 8,800,000

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the changes in the amount of unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Reconciliation of the changes in the amount of unrecognized tax benefits
Balance at beginning of the fiscal year	$ 1,368	$ 1,467
Decreases related to prior year tax positions	(4)	(3)
Increases related to current year tax positions	954	309
Lapse of statute	(318)	(405)
Balance at end of fiscal year	2,000	1,368
Total unrecognized tax benefits of accrued interest and penalties	$ 200	$ 200

Acquisitions (Details)

Acquisitions (Details) $ in Millions	12 Months Ended
	Sep. 30, 2019Business	Sep. 30, 2018USD ($)store	Sep. 30, 2017Business
Acquisitions
Number of businesses acquired | Business	0		0
Chalut
Acquisitions
Number of beauty supply stores | store		21
Cost of acquisition		$ 8.8
Intangible assets subject to amortization		4.7
Goodwill expected to be deducted for tax purposes		$ 0.7

Segments and Disaggregated Re_3

Segments and Disaggregated Revenue (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Segments
Number of reportable segments | segment									2
Net sales:
Total net sales	$ 965,937	$ 975,169	$ 945,852	$ 989,453	$ 965,997	$ 996,283	$ 975,321	$ 994,964	$ 3,876,411	$ 3,932,565	$ 3,938,317
Segment operating earnings:
Segment operating earnings									458,473	426,589	478,597
Restructuring									682	(33,615)	(22,679)
Interest expense									(96,309)	(98,162)	(132,899)
Earnings before provision for income taxes									362,164	328,427	345,698
Depreciation and amortization:
Depreciation and amortization									107,658	108,829	112,323
Payments for property and equipment:
Payments for property and equipment									107,755	86,507	89,666
Total assets:
Assets	2,098,446				2,097,414				$ 2,098,446	$ 2,097,414	$ 2,099,007
Number of single customer accounted for ten percent or more of revenue									10.00%	10.00%	10.00%
Long-lived assets:
Long-lived assets	319,628				308,357				$ 319,628	$ 308,357	$ 313,717
United States
Net sales:
Total net sales									3,169,821	3,188,993	3,248,662
Long-lived assets:
Long-lived assets	259,815				234,475				259,815	234,475	230,698
Foreign
Net sales:
Total net sales									706,590	743,572	689,655
United Kingdom
Long-lived assets:
Long-lived assets	24,476				29,493				24,476	29,493	32,771
Other countries
Long-lived assets:
Long-lived assets	35,337				44,389				35,337	44,389	50,248
Operating segments
Segment operating earnings:
Segment operating earnings									605,984	603,078	640,098
Total assets:
Assets	1,985,640				1,988,668				1,985,640	1,988,668	1,990,529
Corporate
Segment operating earnings:
Unallocated expenses									(148,193)	(142,874)	(138,822)
Depreciation and amortization:
Depreciation and amortization									13,529	15,079	17,141
Payments for property and equipment:
Payments for property and equipment									18,956	23,620	18,153
Total assets:
Assets	112,806				108,746				112,806	108,746	108,478
Sally Beauty Supply
Net sales:
Total net sales									2,293,094	2,333,838	2,345,116
Depreciation and amortization:
Depreciation and amortization									65,561	64,017	63,427
Payments for property and equipment:
Payments for property and equipment									69,802	46,289	52,178
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings									366,412	362,853	385,407
Total assets:
Assets	973,304				995,546				973,304	995,546	1,025,545
Beauty Systems Group
Net sales:
Total net sales									1,583,317	1,598,727	1,593,201
Depreciation and amortization:
Depreciation and amortization									28,568	29,733	31,755
Payments for property and equipment:
Payments for property and equipment									18,997	16,598	19,335
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings									239,572	240,225	254,691
Total assets:
Assets	$ 1,012,336				$ 993,122				$ 1,012,336	$ 993,122	$ 964,984

Segments and Disaggregated Re_4

Segments and Disaggregated Revenue - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Sally Beauty Supply
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Sally Beauty Supply | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Sally Beauty Supply | Hair color | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	29.40%	26.90%	26.00%
Sally Beauty Supply | Hair care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	20.40%	20.90%	21.10%
Sally Beauty Supply | Skin and nail care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	14.80%	15.70%	15.70%
Sally Beauty Supply | Styling tools | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	13.50%	13.90%	14.10%
Sally Beauty Supply | Multicultural products | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.10%	7.50%	7.90%
Sally Beauty Supply | Salon supplies and accessories | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.60%	7.10%	7.30%
Sally Beauty Supply | Other Beauty items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.20%	8.00%	7.90%
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	96.90%	97.50%	98.10%
Sally Beauty Supply | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	2.80%	2.20%	1.60%
Sally Beauty Supply | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.30%	0.30%	0.30%
Beauty Systems Group
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Beauty Systems Group | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Beauty Systems Group | Hair color | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	39.50%	38.40%	37.00%
Beauty Systems Group | Hair care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	35.10%	33.70%	34.40%
Beauty Systems Group | Skin and nail care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.10%	8.70%	9.00%
Beauty Systems Group | Styling tools | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.40%	3.90%	4.20%
Beauty Systems Group | Other Beauty items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.30%	6.70%	6.90%
Beauty Systems Group | Promotional items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.60%	8.60%	8.50%
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	69.40%	68.70%	68.40%
Beauty Systems Group | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	4.80%	3.70%	3.30%
Beauty Systems Group | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.60%	7.70%	7.70%
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants
Disaggregation Of Revenue [Line Items]
Percentage of net sales	18.20%	19.90%	20.60%

Separate Financial Informatio_3

Separate Financial Information of Guarantor Subsidiaries - (Details)	12 Months Ended
	Sep. 30, 2019
Senior notes due Nov. 2023
Condensed Balance Sheet Statements Captions [Line Items]
Debt maturity year	2023
Senior notes due Dec. 2025
Condensed Balance Sheet Statements Captions [Line Items]
Debt maturity year	2025
Guarantor Subsidiaries | ABL Facility
Condensed Balance Sheet Statements Captions [Line Items]
Percentage of guarantor subsidiaries owned by parent	100.00%

Separate Financial Informatio_4

Separate Financial Information of Guarantor Subsidiaries - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Assets
Cash and cash equivalents	$ 71,495	$ 77,295	$ 63,759	$ 86,622
Trade and other accounts receivable, net	104,539	90,490
Inventory	952,907	944,338
Other current assets	34,612	42,960
Property and equipment, net	319,628	308,357	313,717
Goodwill and other intangible assets, net	592,837	608,623
Other assets	22,428	25,351
Total assets	2,098,446	2,097,414	2,099,007
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	278,688	303,241
Accrued liabilities	169,054	180,287
Income taxes payable	8,336	2,144
Long-term debt	1,594,543	1,774,309
Other liabilities	27,757	30,022
Deferred income tax liabilities, net	80,391	75,967
Total liabilities	2,158,769	2,365,970
Total stockholders’ (deficit) equity	(60,323)	(268,556)	(363,616)	(276,166)
Total liabilities and stockholders’ deficit	2,098,446	2,097,414
Parent
Assets
Trade and other accounts receivable, net		4
Other current assets	1,436	2,010
Property and equipment, net	6	8
Investment in subsidiaries	1,621,843	1,368,927
Other assets	1,446	1,325
Total assets	1,624,731	1,372,274
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	48	38
Due to affiliates	1,672,322	1,629,411
Accrued liabilities	188	234
Income taxes payable	6,055	585
Other liabilities	6,441	10,562
Total liabilities	1,685,054	1,640,830
Total stockholders’ (deficit) equity	(60,323)	(268,556)
Total liabilities and stockholders’ deficit	1,624,731	1,372,274
Sally Holdings and Sally Capital
Assets
Cash and cash equivalents	10	10	10	28,372
Other current assets	132	111
Investment in subsidiaries	4,374,334	4,044,669
Other assets	3,499	10,242
Total assets	4,377,975	4,055,032
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	1,142,324	888,141
Accrued liabilities	17,937	23,019
Income taxes payable	2,161	1,519
Long-term debt	1,593,710	1,773,426
Total liabilities	2,756,132	2,686,105
Total stockholders’ (deficit) equity	1,621,843	1,368,927
Total liabilities and stockholders’ deficit	4,377,975	4,055,032
Guarantor Subsidiaries
Assets
Cash and cash equivalents	41,009	29,050	22,090	22,368
Trade and other accounts receivable, net	65,746	53,295
Due from affiliates	2,878,072	2,598,681
Inventory	722,830	714,000
Other current assets	22,480	27,422
Property and equipment, net	258,132	232,941
Investment in subsidiaries	385,629	380,166
Goodwill and other intangible assets, net	452,645	459,348
Other assets	(581)	(4,797)
Total assets	4,825,962	4,490,106
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	235,940	233,936
Accrued liabilities	121,375	125,179
Income taxes payable	1
Long-term debt	1	1
Other liabilities	17,639	15,250
Deferred income tax liabilities, net	76,672	71,071
Total liabilities	451,628	445,437
Total stockholders’ (deficit) equity	4,374,334	4,044,669
Total liabilities and stockholders’ deficit	4,825,962	4,490,106
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	30,476	48,235	$ 41,659	$ 35,882
Trade and other accounts receivable, net	38,793	37,191
Inventory	230,077	230,338
Other current assets	10,564	13,417
Property and equipment, net	61,490	75,408
Goodwill and other intangible assets, net	140,192	149,275
Other assets	18,064	18,581
Total assets	529,656	572,445
Liabilities and Stockholders’ (Deficit) Equity
Accounts payable	42,700	69,267
Due to affiliates	63,426	81,129
Accrued liabilities	29,554	31,855
Income taxes payable	119	40
Long-term debt	832	882
Other liabilities	3,677	4,210
Deferred income tax liabilities, net	3,719	4,896
Total liabilities	144,027	192,279
Total stockholders’ (deficit) equity	385,629	380,166
Total liabilities and stockholders’ deficit	529,656	572,445
Consolidating Eliminations
Assets
Due from affiliates	(2,878,072)	(2,598,681)
Investment in subsidiaries	(6,381,806)	(5,793,762)
Total assets	(9,259,878)	(8,392,443)
Liabilities and Stockholders’ (Deficit) Equity
Due to affiliates	(2,878,072)	(2,598,681)
Total liabilities	(2,878,072)	(2,598,681)
Total stockholders’ (deficit) equity	(6,381,806)	(5,793,762)
Total liabilities and stockholders’ deficit	$ (9,259,878)	$ (8,392,443)

Separate Financial Informatio_5

Separate Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Earnings and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Condensed Income Statements Captions [Line Items]
Net sales	$ 965,937	$ 975,169	$ 945,852	$ 989,453	$ 965,997	$ 996,283	$ 975,321	$ 994,964	$ 3,876,411	$ 3,932,565	$ 3,938,317
Cost of goods sold									1,965,869	1,988,152	1,973,422
Gross profit	479,291	482,222	468,324	480,705	478,092	493,370	486,322	486,629	1,910,542	1,944,413	1,964,895
Selling, general and administrative expenses									1,452,751	1,484,209	1,463,619
Restructuring									(682)	33,615	22,679
Operating earnings									458,473	426,589	478,597
Interest expense (income)									96,309	98,162	132,899
Earnings before provision for income taxes									362,164	328,427	345,698
Provision (benefit) for income taxes									90,541	70,380	130,622
Net earnings	$ 69,007	$ 71,164	$ 65,725	$ 65,727	$ 55,186	$ 58,226	$ 61,371	$ 83,264	271,623	258,047	215,076
Other comprehensive income (loss), net of tax									(27,296)	(8,155)	18,215
Total comprehensive income									244,327	249,892	233,291
Parent
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses									11,331	10,957	10,939
Operating earnings									(11,331)	(10,957)	(10,939)
Earnings before provision for income taxes									(11,331)	(10,957)	(10,939)
Provision (benefit) for income taxes									(2,742)	(2,734)	(4,246)
Equity in earnings of subsidiaries, net of tax									280,212	266,270	221,769
Net earnings									271,623	258,047	215,076
Total comprehensive income									271,623	258,047	215,076
Sally Holdings and Sally Capital
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses									607	1,538	526
Operating earnings									(607)	(1,538)	(526)
Interest expense (income)									96,464	98,332	132,696
Earnings before provision for income taxes									(97,071)	(99,870)	(133,222)
Provision (benefit) for income taxes									(24,888)	(28,787)	(51,726)
Equity in earnings of subsidiaries, net of tax									352,395	337,353	303,265
Net earnings									280,212	266,270	221,769
Other comprehensive income (loss), net of tax									(4,566)	2,449	(1,084)
Total comprehensive income									275,646	268,719	220,685
Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales									3,131,360	3,152,120	3,209,039
Related party sales									2,201	2,294	2,501
Cost of goods sold									1,568,663	1,581,385	1,590,184
Gross profit									1,564,898	1,573,029	1,621,356
Selling, general and administrative expenses									1,135,926	1,136,312	1,130,615
Restructuring									(682)	33,615	22,679
Operating earnings									429,654	403,102	468,062
Interest expense (income)									5	(3)	6
Earnings before provision for income taxes									429,649	403,105	468,056
Provision (benefit) for income taxes									109,230	73,747	177,383
Equity in earnings of subsidiaries, net of tax									31,976	7,995	12,592
Net earnings									352,395	337,353	303,265
Total comprehensive income									352,395	337,353	303,265
Non-Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales									745,051	780,445	729,278
Cost of goods sold									399,407	409,061	385,739
Gross profit									345,644	371,384	343,539
Selling, general and administrative expenses									304,887	335,402	321,539
Operating earnings									40,757	35,982	22,000
Interest expense (income)									(160)	(167)	197
Earnings before provision for income taxes									40,917	36,149	21,803
Provision (benefit) for income taxes									8,941	28,154	9,211
Net earnings									31,976	7,995	12,592
Other comprehensive income (loss), net of tax									(22,730)	(10,604)	19,299
Total comprehensive income									9,246	(2,609)	31,891
Consolidating Eliminations
Condensed Income Statements Captions [Line Items]
Related party sales									(2,201)	(2,294)	(2,501)
Cost of goods sold									(2,201)	(2,294)	(2,501)
Equity in earnings of subsidiaries, net of tax									(664,583)	(611,618)	(537,626)
Net earnings									(664,583)	(611,618)	(537,626)
Total comprehensive income									$ (664,583)	$ (611,618)	$ (537,626)

Separate Financial Informatio_6

Separate Financial Information of Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	$ 320,415	$ 372,661	$ 343,286
Cash Flows from Investing Activities:
Payments for property and equipment, net	(92,443)	(86,138)	(89,625)
Acquisitions, net of cash acquired	(3,424)	(9,175)
Net cash used by investing activities	(95,867)	(95,313)	(89,625)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	593,504	461,819	1,277,250
Repayments of long-term debt	(777,538)	(558,599)	(1,216,643)
Debt issuance costs		(1,151)	(8,376)
Payments for common stock repurchased	(47,434)	(166,701)	(346,873)
Proceeds from exercises of stock options	2,160	1,350	17,339
Net cash used by financing activities	(229,308)	(263,282)	(277,303)
Effect of foreign exchange rate changes on cash and cash equivalents	(1,040)	(530)	779
Net increase (decrease) in cash and cash equivalents	(5,800)	13,536	(22,863)
Cash and cash equivalents, beginning of period	77,295	63,759	86,622
Cash and cash equivalents, end of period	71,495	77,295	63,759
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	2,364	23,424	4,095
Cash Flows from Investing Activities:
Payments for property and equipment, net	(1)
Net cash used by investing activities	(1)
Cash Flows from Financing Activities:
Payments for common stock repurchased	(47,434)	(166,701)	(346,873)
Proceeds from exercises of stock options	2,160	1,350	17,339
Due to affiliates	42,911	141,927	325,439
Net cash used by financing activities	(2,363)	(23,424)	(4,095)
Sally Holdings and Sally Capital
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	(70,150)	(62,948)	(72,779)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	593,500	461,814	1,277,250
Repayments of long-term debt	(777,533)	(558,000)	(1,215,940)
Debt issuance costs		(1,151)	(8,376)
Due to affiliates	254,183	160,285	(8,517)
Net cash used by financing activities	70,150	62,948	44,417
Net increase (decrease) in cash and cash equivalents			(28,362)
Cash and cash equivalents, beginning of period	10	10	28,372
Cash and cash equivalents, end of period	10	10	10
Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	373,313	384,958	386,604
Cash Flows from Investing Activities:
Payments for property and equipment, net	(79,379)	(68,689)	(64,000)
Acquisitions, net of cash acquired	(2,584)
Due from affiliates	(279,391)	(309,310)	(322,866)
Net cash used by investing activities	(361,354)	(377,999)	(386,866)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	4	5
Repayments of long-term debt	(4)	(4)	(16)
Net cash used by financing activities		1	(16)
Net increase (decrease) in cash and cash equivalents	11,959	6,960	(278)
Cash and cash equivalents, beginning of period	29,050	22,090	22,368
Cash and cash equivalents, end of period	41,009	29,050	22,090
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash provided (used) by operating activities	14,888	27,227	25,366
Cash Flows from Investing Activities:
Payments for property and equipment, net	(13,063)	(17,449)	(25,625)
Acquisitions, net of cash acquired	(840)	(9,175)
Net cash used by investing activities	(13,903)	(26,624)	(25,625)
Cash Flows from Financing Activities:
Repayments of long-term debt	(1)	(595)	(687)
Due to affiliates	(17,703)	7,098	5,944
Net cash used by financing activities	(17,704)	6,503	5,257
Effect of foreign exchange rate changes on cash and cash equivalents	(1,040)	(530)	779
Net increase (decrease) in cash and cash equivalents	(17,759)	6,576	5,777
Cash and cash equivalents, beginning of period	48,235	41,659	35,882
Cash and cash equivalents, end of period	30,476	48,235	41,659
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	279,391	309,310	322,866
Net cash used by investing activities	279,391	309,310	322,866
Cash Flows from Financing Activities:
Due to affiliates	(279,391)	(309,310)	(322,866)
Net cash used by financing activities	$ (279,391)	$ (309,310)	$ (322,866)

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Expense and Gains (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Restructuring Cost And Reserve [Line Items]
Restructuring expense and gain	$ (682)	$ 33,615	$ 22,679
Restructuring charges	(682)	33,615	22,679
Supply Chain Modernization
Restructuring Cost And Reserve [Line Items]
Restructuring expense and gain	(4,662)
Restructuring charges	3,747
2018 Restructuring Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 3,980	$ 33,615
2017 Restructuring Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges			$ 22,679

Restructuring (Details)

Restructuring (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2017Office	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)
Changes in restructuring reserve
Restructuring charges		$ (682)	$ 33,615	$ 22,679
Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		3,747
Cash Payments		2,889
Restructuring reserve, ending balance		858
Supply Chain Modernization | Secondary Headquarters and Fulfillment Center
Changes in restructuring reserve
Gain on sale of properties		8,400
Supply Chain Modernization | Corporate
Changes in restructuring reserve
Restructuring charges		700
Supply Chain Modernization | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges		1,500
Supply Chain Modernization | Beauty Systems Group
Changes in restructuring reserve
Restructuring charges		1,500
2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		8,797
Restructuring charges		3,980	33,615
Cash Payments		12,707
Restructuring reserve, ending balance		70	8,797
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
2017 Restructuring Plan
Changes in restructuring reserve
Restructuring charges				$ 22,679
Number of administrative offices closed | Office	4
Workforce reductions | Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		2,502
Cash Payments		1,848
Restructuring reserve, ending balance		654
Workforce reductions | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		3,444
Restructuring charges		643
Cash Payments		4,087
Restructuring reserve, ending balance			3,444
Facility Closures | Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		1,021
Cash Payments		817
Restructuring reserve, ending balance		204
Other | Supply Chain Modernization
Changes in restructuring reserve
Restructuring charges		224
Cash Payments		224
Other | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		2,266
Restructuring charges		835
Cash Payments		3,031
Restructuring reserve, ending balance		70	2,266
Consulting | 2018 Restructuring Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance		3,087
Restructuring charges		2,502
Cash Payments		$ 5,589
Restructuring reserve, ending balance			$ 3,087

Quarterly Financial Data (Una_3

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 965,937	$ 975,169	$ 945,852	$ 989,453	$ 965,997	$ 996,283	$ 975,321	$ 994,964	$ 3,876,411	$ 3,932,565	$ 3,938,317
Gross profit	479,291	482,222	468,324	480,705	478,092	493,370	486,322	486,629	1,910,542	1,944,413	1,964,895
Net earnings	$ 69,007	$ 71,164	$ 65,725	$ 65,727	$ 55,186	$ 58,226	$ 61,371	$ 83,264	$ 271,623	$ 258,047	$ 215,076
Earnings per share:
Basic	$ 0.58	$ 0.59	$ 0.55	$ 0.55	$ 0.46	$ 0.48	$ 0.49	$ 0.65	$ 2.27	$ 2.09	$ 1.56
Diluted	$ 0.58	$ 0.59	$ 0.54	$ 0.54	$ 0.46	$ 0.48	$ 0.49	$ 0.65	$ 2.26	$ 2.08	$ 1.56