Sally Beauty (SBH) 10-Q 7 May 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Entity Registrant Name	SALLY BEAUTY HOLDINGS, INC.
Entity Central Index Key	0001368458
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Trading Symbol	SBH
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	1-33145
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
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock, $0.01 par value
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		112,870,685
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 364,414	$ 71,495
Trade accounts receivable, net	42,802	43,136
Accounts receivable, other	44,531	61,403
Inventory	946,189	952,907
Other current assets	51,103	34,612
Total current assets	1,449,039	1,163,553
Property and equipment, net of accumulated depreciation of $680,238 at March 31, 2020 and $659,285 at September 30, 2019	320,220	319,628
Operating lease assets	544,471
Goodwill	529,037	530,786
Intangible assets, excluding goodwill, net of accumulated amortization of $59,495 at March 31, 2020 and $64,615 at September 30, 2019	58,893	62,051
Other assets	19,506	22,428
Total assets	2,921,166	2,098,446
Current liabilities:
Current maturities of long-term debt	395,671	1
Accounts payable	221,760	278,688
Accrued liabilities	145,920	169,054
Current operating lease liabilities	151,162
Income taxes payable	1,323	8,336
Total current liabilities	915,836	456,079
Long-term debt	1,550,195	1,594,542
Long-term operating lease liabilities	405,593
Other liabilities	18,310	27,757
Deferred income tax liabilities, net	84,427	80,391
Total liabilities	2,974,361	2,158,769
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 112,848 and 116,986 shares issued and 112,264 and 116,725 shares outstanding at March 31, 2020 and September 30, 2019, respectively	1,123	1,167
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Accumulated earnings	69,925	55,797
Accumulated other comprehensive loss, net of tax	(124,243)	(117,287)
Total stockholders’ deficit	(53,195)	(60,323)
Total liabilities and stockholders’ deficit	$ 2,921,166	$ 2,098,446

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 680,238	$ 659,285
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 59,495	$ 64,615
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	112,848,000	116,986,000
Common stock, shares outstanding	112,264,000	116,725,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, Authorized shares	50,000,000	50,000,000
Preferred stock, shares issued	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net sales	$ 871,023	$ 945,852	$ 1,851,231	$ 1,935,305
Cost of goods sold	441,266	477,528	946,626	986,275
Gross profit	429,757	468,324	904,605	949,030
Selling, general and administrative expenses	383,299	361,626	761,228	728,614
Restructuring	3,193	(5,814)	5,725	(1,834)
Operating earnings	43,265	112,512	137,652	222,250
Interest expense	21,644	23,821	43,185	48,310
Earnings before provision for income taxes	21,621	88,691	94,467	173,940
Provision for income taxes	8,253	22,966	27,884	42,488
Net earnings	$ 13,368	$ 65,725	$ 66,583	$ 131,452
Earnings per share:
Basic	$ 0.12	$ 0.55	$ 0.58	$ 1.10
Diluted	$ 0.12	$ 0.54	$ 0.57	$ 1.09
Weighted-average shares:
Basic	114,823	120,077	115,478	120,033
Diluted	115,795	120,991	116,462	120,949

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 13,368	$ 65,725	$ 66,583	$ 131,452
Other comprehensive income (loss):
Foreign currency translation adjustments	(23,784)	3,040	(8,823)	(10,425)
Interest rate caps, net of tax	(80)	(2,140)	29	(4,970)
Foreign exchange contracts, net of tax	2,038	242	1,838	(168)
Other comprehensive income (loss), net of tax	(21,826)	1,142	(6,956)	(15,563)
Total comprehensive income (loss)	$ (8,458)	$ 66,867	$ 59,627	$ 115,889

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows from Operating Activities:
Net earnings	$ 66,583	$ 131,452
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	53,997	53,275
Share-based compensation expense	6,532	5,871
Amortization of deferred financing costs	1,767	1,979
Gain on early extinguishment of debt	(357)	(473)
Gain on disposal of equipment and other property	(18)	(6,548)
Deferred income taxes	5,547	8,530
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	158	5,950
Accounts receivable, other	19,199	(7,554)
Inventory	1,365	(14,213)
Other current assets	(17,692)	2,754
Other assets	575	(1,293)
Accounts payable and accrued liabilities	(55,679)	(69,704)
Income taxes payable	(7,199)	4,150
Other liabilities	1,353	(4,066)
Net cash provided by operating activities	76,131	110,110
Cash Flows from Investing Activities:
Payments for property and equipment	(71,983)	(46,398)
Proceeds from sale of property and equipment	23	12,010
Acquisitions, net of cash acquired	(1,944)	(2,848)
Net cash used by investing activities	(73,904)	(37,236)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	787,500	242,504
Repayments of long-term debt	(437,385)	(304,157)
Payments for common stock repurchased	(61,357)
Proceeds from exercises of stock options	2,771	1,721
Net cash (used) provided by financing activities	291,529	(59,932)
Effect of foreign exchange rate changes on cash and cash equivalents	(837)	(460)
Net increase in cash and cash equivalents	292,919	12,482
Cash and cash equivalents, beginning of period	71,495	77,295
Cash and cash equivalents, end of period	364,414	89,777
Supplemental Cash Flow Information:
Interest paid	41,366	48,378
Income taxes paid	45,521	37,518
Capital expenditures incurred but not paid	$ 5,090	$ 3,763

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Earnings (Deficit)	Accumulated Other Comprehensive Loss
Balance at Sep. 30, 2018	$ (268,556)	$ 1,199		$ (179,764)	$ (89,991)
Balance (in shares) at Sep. 30, 2018		119,926
Increase (Decrease) in Stockholders' Equity
Net earnings	65,727			65,727
Other comprehensive income (loss)	(16,705)				(16,705)
Share-based compensation	3,354		$ 3,354
Stock issued for stock options	1,449	$ 1	1,448
Stock issued for stock options (in shares)		115
Balance at Dec. 31, 2018	(214,731)	$ 1,200	4,802	(114,037)	(106,696)
Balance (in shares) at Dec. 31, 2018		120,041
Balance at Sep. 30, 2018	(268,556)	$ 1,199		(179,764)	(89,991)
Balance (in shares) at Sep. 30, 2018		119,926
Increase (Decrease) in Stockholders' Equity
Net earnings	131,452
Other comprehensive income (loss)	(15,563)
Balance at Mar. 31, 2019	(145,075)	$ 1,201	7,590	(48,312)	(105,554)
Balance (in shares) at Mar. 31, 2019		120,107
Balance at Dec. 31, 2018	(214,731)	$ 1,200	4,802	(114,037)	(106,696)
Balance (in shares) at Dec. 31, 2018		120,041
Increase (Decrease) in Stockholders' Equity
Net earnings	65,725			65,725
Other comprehensive income (loss)	1,142				1,142
Share-based compensation	2,517		2,517
Stock issued for stock options	272	$ 1	271
Stock issued for stock options (in shares)		66
Balance at Mar. 31, 2019	(145,075)	$ 1,201	7,590	(48,312)	(105,554)
Balance (in shares) at Mar. 31, 2019		120,107
Balance at Sep. 30, 2019	$ (60,323)	$ 1,167		55,797	(117,287)
Balance (in shares) at Sep. 30, 2019	116,725	116,725
Increase (Decrease) in Stockholders' Equity
Cumulative effect of ASC 842 adoption | ASC 842	$ (445)			(445)
Net earnings	53,215			53,215
Other comprehensive income (loss)	14,870				14,870
Repurchases and cancellations of common stock	(11,357)	$ (7)	(6,237)	(5,113)
Repurchases and cancellations of common stock (in shares)		(766)
Share-based compensation	3,473		3,473
Stock issued for stock options	2,766	$ 2	2,764
Stock issued for stock options (in shares)		206
Balance at Dec. 31, 2019	2,199	$ 1,162		103,454	(102,417)
Balance (in shares) at Dec. 31, 2019		116,165
Balance at Sep. 30, 2019	$ (60,323)	$ 1,167		55,797	(117,287)
Balance (in shares) at Sep. 30, 2019	116,725	116,725
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 66,583
Other comprehensive income (loss)	(6,956)
Balance at Mar. 31, 2020	$ (53,195)	$ 1,123		69,925	(124,243)
Balance (in shares) at Mar. 31, 2020	112,264	112,264
Balance at Dec. 31, 2019	$ 2,199	$ 1,162		103,454	(102,417)
Balance (in shares) at Dec. 31, 2019		116,165
Increase (Decrease) in Stockholders' Equity
Net earnings	13,368			13,368
Other comprehensive income (loss)	(21,826)				(21,826)
Repurchases and cancellations of common stock	(50,000)	$ (39)	(3,064)	(46,897)
Repurchases and cancellations of common stock (in shares)		(3,936)
Share-based compensation	3,059		3,059
Stock issued for stock options	5		$ 5
Stock issued for stock options (in shares)		35
Balance at Mar. 31, 2020	$ (53,195)	$ 1,123		$ 69,925	$ (124,243)
Balance (in shares) at Mar. 31, 2020	112,264	112,264

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The condensed consolidated interim financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures are adequate to make the information not misleading. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019. In the opinion of management, these condensed consolidated interim financial statements reflect all adjustments that are of a normal recurring nature and which are necessary to present fairly our consolidated financial position as of March 31, 2020, and September 30, 2019, our consolidated results of operations, consolidated comprehensive income (loss), and consolidated statements of stockholders’ deficit for the three and six months ended March 31, 2020 and 2019, and our consolidated cash flows for the six months ended March 31, 2020 and 2019. Our operating results for the three months ended March 31, 2020, may not be indicative of the results that may be expected for the full fiscal year ending September 30, 2020, because of the novel coronavirus ("COVID-19") pandemic. As a result of COVID-19, we temporarily shut down virtually all global customer-facing store operations. Due to the uncertainty over the duration and severity of the economic and operational impacts of COVID-19, this material adverse impact may continue for the remainder of our fiscal 2020 year and beyond.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies We adhere to the same accounting policies in the preparation of our condensed consolidated interim financial statements as we do in the preparation of our full-year consolidated financial statements. See Note 3 for more information about the adoption of the new lease accounting standard. As permitted under GAAP, interim accounting for certain expenses, including income taxes, is based on full-year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual effective income tax rates; however, for the current period the provision for income taxes has been determined on the basis of year to date results, as COVID-19 related closures impacted our ability to reasonably forecast full year results by jurisdiction.

Accounting Changes and Recent A

Accounting Changes and Recent Accounting Pronouncements	6 Months Ended
	Mar. 31, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes and Recent Accounting Pronouncements	3. Accounting Changes and Recent Accounting Pronouncements Accounting Change In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Additionally, the adoption of ASU No. 2016-02, as amended, resulted in the recognition of an operating lease asset of $513.9 million and an operating lease liability of $523.5 million. Existing straight-line rent liability, prepaid rent and accrued rent were reclassified from certain other assets and liabilities into the operating lease asset. Furthermore, the cumulative effect of the adoption of ASU No. 2016-02 resulted in a $0.4 million adjustment to accumulated earnings resulting from the impairment of certain operating lease assets. The impact on our condensed consolidated results of operations or condensed consolidated cash flows was not material. See Note 8 for additional information in connection with ASU No. 2016-02. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12 which simplifies the accounting for income taxes by removing an exception related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period with year to date losses and the recognition of deferred tax liabilities for outside basis differences. Additionally, the update clarifies and simplifies other areas of ASC 740, Income Taxes. For public companies, the amendments in the updated are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, but all amendments must be adopted at once. The amendments in this update have different adoption methods including prospective basis, retrospective basis, and a modified retrospective basis dependent on the specific change. We are currently evaluating the impact of this update.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Mar. 31, 2020
Revenue From Contract With Customer [Abstract]
Revenue Recognition	4. Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise through the point-of-sale. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data. Changes to our contract liabilities for the period were as follows (in thousands): September 30, 2019 $ 12,866 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 9,003 Revenue recognized from beginning liability (8,491 ) March 31, 2020 $ 13,378 Private Label Credit Card - In September 2019, we signed a multi-year agreement with a third-party bank to launch a private label credit card (the “Program”). As of March 31, 2020, Program operations had not yet commenced. See Note 13 for additional information regarding the disaggregation of our sales revenue.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	5. Fair Value Measurements Fair value on recurring basis Consistent with the three-level hierarchy defined in ASC Topic 820, Fair Value Measurement Classification Fair Value Hierarchy Level March 31, 2020 September 30, 2019 Financial Assets: Foreign exchange contracts Other current assets Level 2 $ 3,043 $ — Interest rate caps Other assets Level 2 145 344 Total assets $ 3,188 $ 344 Other fair value disclosures March 31, 2020 September 30, 2019 Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 877,380 $ 731,418 $ 885,296 $ 898,814 Term loan B Level 2 685,788 601,101 724,000 709,830 Total long-term debt $ 1,563,168 $ 1,332,519 $ 1,609,296 $ 1,608,644 The table above excludes amounts related to our ABL facility as the balance approximates fair value due to the short-term nature of our borrowings.

Stockholder's Equity (Deficit)

Stockholder's Equity (Deficit)	6 Months Ended
	Mar. 31, 2020
Stockholders Equity Note [Abstract]
Stockholder's Equity (Deficit)	6. Stockholder’s Equity (Deficit) Share Repurchases In August 2017, our Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $1.0 billion of its common stock, subject to certain limitations governed by our debt agreements, over an approximate four-year Information related to our shares repurchased and subsequently retired were as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Number of shares repurchased 3,936 — 4,702 — Total cost of share repurchased $ 50,000 $ — $ 61,357 $ — 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, 2019 $ (113,932 ) $ (3,201 ) $ (154 ) $ (117,287 ) Other comprehensive loss before reclassification, net of tax (8,823 ) (209 ) (399 ) (9,431 ) Reclassification to net earnings, net of tax — 238 2,237 2,475 Balance at March 31, 2020 $ (122,755 ) $ (3,172 ) $ 1,684 $ (124,243 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings were not material.

Weighted-Average Shares

Weighted-Average Shares	6 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Weighted-Average Shares	7. Weighted-Average Shares The following table sets forth the reconciliation of basic and diluted weighted-average shares (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Weighted-average basic shares 114,823 120,077 115,478 120,033 Dilutive securities: Stock option and stock award programs 972 914 984 916 Weighted-average diluted shares 115,795 120,991 116,462 120,949 Anti-dilutive options excluded from our computation of diluted shares 5,076 5,183 5,076 5,183

Leases

Leases	6 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	8. Leases Substantially all of our leases are operating leases and relate primarily to retail stores and warehousing properties with lease terms of five to ten years. Some of our leases include options to extend the agreement by a certain number of years, typically five years. At the lease commencement date, an operating lease liability and related operating lease asset are recognized and include the extended terms to the extent we are reasonably certain that we will exercise the option. The operating lease liabilities are calculated using the present value of lease payments. The discount rate used is either the rate implicit in the lease, when known, or our estimated incremental borrowing rate. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because we do not generally borrow on a collateralized basis, we derive an appropriate incremental borrowing rate using the interest rate we pay on our non-collateralized borrowings, adjusted for the amount of the lease payments, the lease term and the effect of designating specific collateral with a value equal to the unpaid lease payments for that lease. We apply the incremental borrowing rate on a portfolio basis given the impact of applying it on a lease by lease basis would be immaterial. Operating lease assets are valued based on the initial operating lease liabilities plus any prepaid rent and direct costs from executing the leases, reduced by tenant improvement allowances and any rent abatement. Operating lease assets are tested for impairment in the same manner as our long-lived assets. Our operating and finance leases consisted of the following (in thousands): Balance Sheet Classification March 31, 2020 Assets: Operating lease Operating lease assets $ 544,471 Finance lease Property and equipment, net 2,866 Total lease assets $ 547,337 Liabilities: Current: Operating lease Current operating lease liabilities $ 151,162 Finance lease Current maturities of long-term debt 171 Long-term: Operating lease Long-term operating lease liabilities 405,593 Finance lease Long-term debt 672 Total lease liabilities $ 557,598 Our lease costs, net of immaterial sublease income, consisted of the following (in thousands): Statement of Earnings Classification Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease costs (a) Cost of goods sold and selling, general and administrative expenses (b) $ 49,342 $ 94,687 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 75 150 Interest on lease liabilities Interest expense 11 22 Variable lease costs (c) Selling, general and administrative expenses 14,694 28,964 Total lease costs $ 64,122 $ 123,823 (a) Includes costs related to short-term leases, which are immaterial. (b) Certain supply chain-related amounts are included in cost of goods sold. (c) Includes common area maintenance, real estate taxes and insurance related to leases. As of March 31, 2020, the approximate future lease payments under our leases are as follows (in thousands): Fiscal Year Operating leases Finance leases Remainder of 2020 $ 91,911 $ 171 2021 157,568 168 2022 116,804 168 2023 81,479 168 2024 53,297 168 Thereafter 93,793 — Total undiscounted lease payments 594,852 843 Less: imputed interest 38,097 — Present value of lease liabilities $ 556,755 $ 843 The table above does not include operating leases we have entered into of approximately $13.4 million that have not commenced, primarily related to future retail stores. As of September 30, 2019, our future minimum lease payments under non-cancelable operating leases as reported under the previous accounting standard were 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 Other lease information is as follows (dollars in thousands): Six Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 96,734 Operating cash flows – finance leases 22 Financing cash flows – finance leases 2 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 128,536 Lease assets obtained in exchange for new finance lease liabilities 4 March 31, 2020 Weighted-average remaining lease term (in years): Operating leases 4.7 Finance leases 4.3 Weighted-average discount rate: Operating leases 4.3 % Finance leases 5.0 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets During the three months ended March 31, 2020, we completed our annual assessment for impairment of goodwill and other intangible assets. Additionally, due to COVID-19, we performed an additional assessment for impairment of goodwill and other intangibles as of March 31, 2020, which updated our assumptions around the growth, timing and discount rate applied to future cash flows in connection with our business restart. Due to the uncertainty around COVID-19, our projected future cash flows may differ materially from actual results. No material impairment losses were recognized in the current or prior periods presented in connection with our goodwill and other intangible assets. For the three months ended March 31, 2020 and 2019, amortization expense related to other intangible assets was $2.2 million and $2.9 million, respectively, and, for the six months ended March 31, 2020 and 2019, amortization expense was $4.6 million and $5.7 million, respectively. During the six months ended March 31, 2020, we recorded approximately $1.4 million in other intangible assets related to immaterial asset acquisitions. Additionally, goodwill was negatively impacted by approximately $1.7 million from changes in foreign currency exchange rates during the six months ended March 31, 2020.

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	6 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	10. Short-term Borrowings and Long-term Debt During the three months ended March 31, 2020, we preemptively drew on our ABL facility as a result of COVID-19. At March 31, 2020, we had $395.5 million outstanding and $85.8 million available for borrowing under our ABL facility, including the Canadian sub-facility. Our ABL facility matures on July 6, 2022. During the three months ended December 31, 2019, we paid down $14.8 million aggregate principal amount of our term loan B fixed tranche at a weighted-average price of 97.875% of face value, excluding accrued interest. Additionally, during the three months ended March 31, 2020, we paid down $22.0 million aggregate principal amount of our term loan B fixed tranche at a weighted-average price of 99.0% of face value, excluding accrued interest. In connection with the debt repayment, for the six months ended March 31, 2020, we recognized a $0.4 million gain on the extinguishment of debt, including a gain of approximately $0.4 million from the discount paid under the face value and the write-off of $0.1 million in unamortized deferred financing costs. During the three months ended March, 31, 2020, we paid down $7.9 million aggregate principal amount of our senior notes due 2025 at a weighted-average price of 98.7% of face value, excluding accrued interest. See Note 16 for further information related to the recent issuance of debt and modification of our ABL facility that occurred subsequent to March 31, 2020. 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 March 31, 2020, we were in compliance with all debt covenants and all the net assets of our consolidated subsidiaries were unrestricted from transfer.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Mar. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	11. Derivative Instruments and Hedging Activities During the six months ended March 31, 2020, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 5 for the classification and fair value of our derivative instruments. Designated Cash Flow Hedges Foreign Currency Forwards We regularly enter into foreign currency forwards to mitigate our exposure to exchange rate changes on inventory purchases in U.S. dollars by our foreign subsidiaries. At March 31, 2020, the notional amount we held through these forwards, based upon exchange rates at March 31, 2020, was as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 12,653 Canadian Dollar 4,766 Total $ 17,419 We record quarterly, net of income tax, the changes in fair value related to the foreign currency forwards into AOCL. As the forwards are exercised, the realized value is recognized into cost of goods sold based on inventory turns. Based on March 31, 2020, valuations and exchange rates, we expect to reclassify gains of approximately $2.1 million into cost of goods sold over the next 12 months. During the three months ended March 31, 2020, we de-designated certain foreign currency forwards as it became probable that the forecasted transaction would not occur as a result of the recent coronavirus pandemic. As a result, we reclassified $1.3 million in gains from AOCL into selling, general and administration expenses. These contracts expire ratably through June 30, 2020. Other than the amounts reclassified due to de-designation, the effects of our foreign currency forwards on our condensed consolidated statements of earnings were not material for the six months ended March 31, 2020. Interest Rate Caps In July 2017, we purchased two interest rate caps with an initial aggregate notional amount of $550 million (the “interest rate caps”) to mitigate the exposure to higher interest rates in connection with our term loan B. The interest rate caps are comprised of individual caplets that expire ratably through June 30, 2023 and are designated as cash flow hedges. Accordingly, changes in fair value of the interest rate caps are recorded quarterly, net of income tax, and are included in AOCL. Over the next 12 months, we expect to reclassify approximately $0.9 million into interest expense, which represents the original value of the expiring caplets. The effects of our interest rate caps on our condensed consolidated statements of earnings were not material for the six months ended March 31, 2020.

Income Tax

Income Tax	6 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Tax	12. Income Tax The effective tax rates were 38.2% and 25.9%, for the three months ended March 31, 2020 and 2019, respectively. The increase in the effective tax rate was primarily driven by the establishment of a valuation allowance in a foreign subsidiary and increased foreign losses, as compared to the prior period, the tax benefit of which cannot be recognized. The effective tax rates were 29.5% and 24.4%, for the six months ended March 31, 2020 and 2019, respectively. The increase in the effective tax rate was primarily driven by the establishment of a valuation allowance in a foreign subsidiary and increased foreign losses, as compared to the prior period, the tax benefit of which cannot be recognized. Additionally, for the six months ended March 31, 2019, the provision for income taxes included an income tax benefit due to an adjustment to our previously recorded transition tax on unrepatriated foreign earnings as a result of the Tax Cuts and Jobs Act. Three Months Ended Six Months Ended March 31, March 31, 2020 2019 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 4.4 3.3 3.6 3.4 Effect of foreign operations 0.1 (0.1 ) 0.9 0.1 Foreign valuation allowances 15.9 (0.1 ) 3.9 0.4 Deemed repatriation tax 0.0 0.0 0.0 (1.7 ) Other, net (3.2 ) 1.8 0.1 1.2 Effective tax rate 38.2 % 25.9 % 29.5 % 24.4 % In response to the global pandemic related to COVID-19, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, temporary suspension of certain payment requirements for the employer portion of social security taxes, and the creation of certain refundable employee retention credits. We are currently evaluating the CARES Act, but there was not a material impact on our income tax expense for the three months ended March 31, 2020. We will continue to monitor legislative developments related to COVID-19 and will record the associated income tax impacts in the periods that guidance is finalized or when we are able to reasonably estimate an impact.

Business Segments

Business Segments	6 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Business Segments	13. Business Segments Segment data for the three and six months ended March 31, 2020 and 2019, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Net sales: Sally Beauty Supply ("SBS") $ 519,509 $ 565,604 $ 1,088,657 $ 1,146,213 Beauty Systems Group ("BSG") 351,514 380,248 762,574 789,092 Total $ 871,023 $ 945,852 $ 1,851,231 $ 1,935,305 Earnings before provision for income taxes: Segment operating earnings: SBS $ 56,373 $ 86,715 $ 130,598 $ 176,706 BSG 41,039 56,518 103,473 118,849 Segment operating earnings 97,412 143,233 234,071 295,555 Unallocated expenses 50,954 36,535 90,694 75,139 Restructuring 3,193 (5,814 ) 5,725 (1,834 ) Consolidated operating earnings 43,265 112,512 137,652 222,250 Interest expense 21,644 23,821 43,185 48,310 Earnings before provision for income taxes $ 21,621 $ 88,691 $ 94,467 $ 173,940 Sales between segments, which are eliminated in consolidation, were not material during the three and six months ended March 31, 2020 and 2019. Disaggregation of net sales by segment Three Months Ended March 31, Six Months Ended March 31, SBS 2020 2019 2020 2019 Hair color 32.8 % 29.1 % 31.9 % 28.3 % Hair care 19.5 % 20.5 % 19.7 % 20.2 % Skin and nail care 12.8 % 14.6 % 13.5 % 14.8 % Styling tools 12.7 % 13.6 % 13.4 % 14.7 % Salon supplies and accessories 7.6 % 7.5 % 7.2 % 7.3 % Multicultural products 6.1 % 7.0 % 5.7 % 6.7 % Other beauty items 8.5 % 7.7 % 8.6 % 8.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2020 2019 2020 2019 Hair color 40.1 % 40.3 % 38.8 % 39.1 % Hair care 35.1 % 34.2 % 34.8 % 33.8 % Skin and nail care 8.2 % 8.2 % 8.2 % 8.2 % Styling tools 6.2 % 3.2 % 6.5 % 3.6 % Other beauty items 3.0 % 6.6 % 2.8 % 6.1 % Promotional items 7.4 % 7.5 % 8.9 % 9.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended March 31, Six Months Ended March 31, SBS 2020 2019 2020 2019 Company-operated stores 94.9 % 96.7 % 95.4 % 96.7 % E-commerce 4.9 % 3.0 % 4.4 % 3.0 % Franchise stores 0.2 % 0.3 % 0.2 % 0.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2020 2019 2020 2019 Company-operated stores 70.4 % 70.4 % 69.8 % 69.7 % Distributor sales consultants 16.6 % 17.3 % 17.3 % 18.1 % Franchise stores 7.1 % 7.3 % 7.2 % 7.5 % E-commerce 5.9 % 5.0 % 5.7 % 4.7 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Parent, Issuers, Guarantor and

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	6 Months Ended
	Mar. 31, 2020
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	14. Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements 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 LLC 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 March 31, 2020 (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 $ 335,827 $ 28,577 $ — $ 364,414 Trade and other accounts receivable, net — — 52,788 34,545 — 87,333 Due from affiliates — — 2,638,162 — (2,638,162 ) — Inventory — — 710,623 235,566 — 946,189 Other current assets 15,311 270 23,119 12,403 — 51,103 Property and equipment, net 8 — 264,739 55,473 — 320,220 Operating lease assets — — 401,374 143,097 — 544,471 Investment in subsidiaries 1,685,104 4,469,936 376,173 — (6,531,213 ) — Goodwill and other intangible assets, net — — 450,484 137,446 — 587,930 Other assets 1,446 3,092 3,098 11,870 — 19,506 Total assets $ 1,701,869 $ 4,473,308 $ 5,256,387 $ 658,977 $ (9,169,375 ) $ 2,921,166 Liabilities and Stockholders’ Equity (Deficit) Accounts payable $ 23 $ — $ 180,078 $ 41,659 $ — $ 221,760 Due to affiliates 1,748,579 823,032 — 66,551 (2,638,162 ) — Accrued liabilities 160 18,151 100,226 27,383 — 145,920 Income taxes payable — 2,161 — (838 ) — 1,323 Long-term debt — 1,945,023 4 839 — 1,945,866 Long-term operating lease liabilities — — 413,824 142,931 — 556,755 Other liabilities 6,441 — 11,840 29 — 18,310 Deferred income tax liabilities, net (139 ) (163 ) 80,479 4,250 — 84,427 Total liabilities 1,755,064 2,788,204 786,451 282,804 (2,638,162 ) 2,974,361 Total stockholders’ equity (deficit) (53,195 ) 1,685,104 4,469,936 376,173 (6,531,213 ) (53,195 ) Total liabilities and stockholders’ equity (deficit) $ 1,701,869 $ 4,473,308 $ 5,256,387 $ 658,977 $ (9,169,375 ) $ 2,921,166 Condensed Consolidating Balance Sheet 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 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’ Equity (Deficit) 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’ equity (deficit) (60,323 ) 1,621,843 4,374,334 385,629 (6,381,806 ) (60,323 ) Total liabilities and stockholders’ equity (deficit) $ 1,624,731 $ 4,377,975 $ 4,825,962 $ 529,656 $ (9,259,878 ) $ 2,098,446 Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended March 31, 2020 (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 $ — $ — $ 713,872 $ 157,151 $ — $ 871,023 Related party sales — — 382 — (382 ) — Cost of goods sold — — 355,373 86,275 (382 ) 441,266 Gross profit — — 358,881 70,876 — 429,757 Selling, general and administrative expenses 2,758 179 306,197 74,165 — 383,299 Restructuring — — 3,193 — — 3,193 Operating earnings (loss) (2,758 ) (179 ) 49,491 (3,289 ) — 43,265 Interest expense (income) — 21,652 3 (11 ) — 21,644 Earnings (loss) before provision for income taxes (2,758 ) (21,831 ) 49,488 (3,278 ) — 21,621 Provision (benefit) for income taxes (708 ) (5,604 ) 11,502 3,063 — 8,253 Equity in earnings (loss) of subsidiaries, net of tax 15,418 31,645 (6,341 ) — (40,722 ) — Net earnings (loss) 13,368 15,418 31,645 (6,341 ) (40,722 ) 13,368 Other comprehensive income, net of tax — (80 ) — (21,746 ) — (21,826 ) Total comprehensive income (loss) $ 13,368 $ 15,338 $ 31,645 $ (28,087 ) $ (40,722 ) $ (8,458 ) Condensed Consolidating Sta tement of Earnings and Comprehensive Income Three Months Ended March 31, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 769,284 $ 176,568 $ — $ 945,852 Related party sales — — 480 — (480 ) — Cost of goods sold — — 383,147 94,861 (480 ) 477,528 Gross profit — — 386,617 81,707 — 468,324 Selling, general and administrative expenses 3,084 198 281,404 76,940 — 361,626 Restructuring — — (5,814 ) — — (5,814 ) Operating earnings (loss) (3,084 ) (198 ) 111,027 4,767 — 112,512 Interest expense (income) — 23,871 (1 ) (49 ) — 23,821 Earnings (loss) before provision for income taxes (3,084 ) (24,069 ) 111,028 4,816 — 88,691 Provision (benefit) for income taxes (791 ) (6,179 ) 28,795 1,141 22,966 Equity in earnings of subsidiaries, net of tax 68,018 85,908 3,675 — (157,601 ) — Net earnings 65,725 68,018 85,908 3,675 (157,601 ) 65,725 Other comprehensive income (loss), net of tax — (2,140 ) — 3,282 1,142 Total comprehensive income (loss) $ 65,725 $ 65,878 $ 85,908 $ 6,957 $ (157,601 ) $ 66,867 Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 2020 (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 (used) provided by operating activities $ (17,666 ) $ (30,822 ) $ 122,299 $ 2,320 $ — $ 76,131 Cash Flows from Investing Activities: Payments for property and equipment (5 ) — (65,724 ) (6,254 ) — (71,983 ) Proceeds from sale of property and equipment — — 23 — — 23 Acquisitions, net of cash acquired — — (1,691 ) (253 ) — (1,944 ) Due from affiliates — — 239,910 — (239,910 ) — Net cash (used) provided by investing activities (5 ) — 172,518 (6,507 ) (239,910 ) (73,904 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 787,500 — — — 787,500 Repayments of long-term debt — (437,386 ) 1 — — (437,385 ) Repurchases of common stock (61,357 ) — — — — (61,357 ) Proceeds from exercises of stock options 2,771 — — — — 2,771 Due to affiliates 76,257 (319,292 ) — 3,125 239,910 — Net cash provided by financing activities 17,671 30,822 1 3,125 239,910 291,529 Effect of foreign exchange rate changes on cash and cash equivalents — — — (837 ) — (837 ) Net increase (decrease) in cash and cash equivalents — — 294,818 (1,899 ) — 292,919 Cash and cash equivalents, beginning of period — 10 41,009 30,476 — 71,495 Cash and cash equivalents, end of period $ — $ 10 $ 335,827 $ 28,577 $ — $ 364,414 Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash (used) provided by operating activities $ 1,262 $ (32,639 ) $ 144,685 $ (3,198 ) $ — $ 110,110 Cash Flows from Investing Activities: Payments for property and equipment — — (41,559 ) (4,839 ) — (46,398 ) Proceeds from sale of property and equipment — — 12,007 3 — 12,010 Acquisitions, net of cash acquired — — (2,008 ) (840 ) — (2,848 ) Due from affiliates — — (92,458 ) — 92,458 — Net cash used by investing activities — — (124,018 ) (5,676 ) 92,458 (37,236 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 242,500 4 — — 242,504 Repayments of long-term debt — (304,154 ) (2 ) (1 ) — (304,157 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,721 — — — — 1,721 Due to affiliates (2,983 ) 94,293 — 1,148 (92,458 ) — Net cash (used) provided by financing activities (1,262 ) 32,639 2 1,147 (92,458 ) (59,932 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (460 ) — (460 ) Net increase (decrease) in cash and cash equivalents — — 20,669 (8,187 ) — 12,482 Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 49,719 $ 40,048 $ — $ 89,777

Restructuring

Restructuring	6 Months Ended
	Mar. 31, 2020
Restructuring And Related Activities [Abstract]
Restructuring	15. Restructuring Restructuring expense and gain for the three and six months ended March 31, 2020 and 2019, are as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Project Surge $ 107 $ — $ 1,360 $ — Transformation Plan 3,086 (5,814 ) 4,365 (1,834 ) Total expense (gain) $ 3,193 $ (5,814 ) $ 5,725 $ (1,834 ) Project Surge In November 2019, we announced that we were launching Project Surge, which takes the successful elements of the North American Sally Beauty transformation and integrates them into our European operations, with the support and participation of several key leaders from the corporate headquarters. As part of this plan, we will be focusing on several operating elements, including a review of our talent and operating structure. The liability related to Project Surge, which is included in accrued liabilities on our condensed consolidated balance sheets, is as follows (in thousands): Project Surge Liability at September 30, 2019 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at March 31, 2020 Workforce reductions $ — $ 998 $ 998 $ — $ — Other — 362 362 — — Total $ — $ 1,360 $ 1,360 $ — $ — Expenses incurred during the six months ended March 31, 2020, represent costs incurred by SBS of $1.3 million and corporate of $0.1 million. Transformation Plan We previously disclosed a Transformation Plan focused on certain core business strategies. In addition to optimizing our Supply Chain Network with changes to our transportation model and network of nodes, we are improving our marketing and digital commerce capabilities, and advancing our merchandising transformation efforts. The liability related to the Transformation Plan, which is included in accrued liabilities on our condensed consolidated balance sheets, is as follows (in thousands): Transformation Plan Liability at September 30, 2019 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at March 31, 2020 Workforce reductions $ 654 $ 2,022 $ 1,959 $ — $ 717 Consulting 204 1,426 1,630 — — Other 70 917 987 — — Total $ 928 $ 4,365 $ 4,576 $ — $ 717 Expenses incurred during the six months ended March 31, 2020, represent costs incurred by corporate of $2.4 million, SBS of $1.3 million and BSG of $0.7 million.

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	16. Subsequent Events On April 15, 2020, we entered into an amendment to our ABL facility to, among other things, increase the revolving commitment thereunder from $500.0 million to $600.0 million, establish a FILO (first-in, last-out) tranche of indebtedness in the amount of $20.0 million, increase pricing on the revolving loans and modify certain covenant and reporting terms. The ABL Facility will continue to be secured by a first-priority lien in and upon the accounts and inventory (and the proceeds thereof) of the Company and its guarantor subsidiaries. The ABL Facility will be secured by a second-priority lien in and upon the remaining assets of the Company and its guarantor subsidiaries. The ABL facility will mature on July 6, 2022. On April 24, 2020, we completed a private an offering of $300.0 million aggregate principal amount of senior secured second lien notes

Accounting Changes and Recent_2

Accounting Changes and Recent Accounting Pronouncements (Policies)	6 Months Ended
	Mar. 31, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Change	Accounting Change In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Additionally, the adoption of ASU No. 2016-02, as amended, resulted in the recognition of an operating lease asset of $513.9 million and an operating lease liability of $523.5 million. Existing straight-line rent liability, prepaid rent and accrued rent were reclassified from certain other assets and liabilities into the operating lease asset. Furthermore, the cumulative effect of the adoption of ASU No. 2016-02 resulted in a $0.4 million adjustment to accumulated earnings resulting from the impairment of certain operating lease assets. The impact on our condensed consolidated results of operations or condensed consolidated cash flows was not material. See Note 8 for additional information in connection with ASU No. 2016-02.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12 which simplifies the accounting for income taxes by removing an exception related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period with year to date losses and the recognition of deferred tax liabilities for outside basis differences. Additionally, the update clarifies and simplifies other areas of ASC 740, Income Taxes. For public companies, the amendments in the updated are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, but all amendments must be adopted at once. The amendments in this update have different adoption methods including prospective basis, retrospective basis, and a modified retrospective basis dependent on the specific change. We are currently evaluating the impact of this update.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Mar. 31, 2020
Revenue From Contract With Customer [Abstract]
Schedule of Changes to Contract Liabilities	Changes to our contract liabilities for the period were as follows (in thousands): September 30, 2019 $ 12,866 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 9,003 Revenue recognized from beginning liability (8,491 ) March 31, 2020 $ 13,378

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2020
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 three-level hierarchy defined in ASC Topic 820, Fair Value Measurement Classification Fair Value Hierarchy Level March 31, 2020 September 30, 2019 Financial Assets: Foreign exchange contracts Other current assets Level 2 $ 3,043 $ — Interest rate caps Other assets Level 2 145 344 Total assets $ 3,188 $ 344 Other fair value disclosures March 31, 2020 September 30, 2019 Fair Value Hierarchy Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt, excluding capital leases Senior notes Level 1 $ 877,380 $ 731,418 $ 885,296 $ 898,814 Term loan B Level 2 685,788 601,101 724,000 709,830 Total long-term debt $ 1,563,168 $ 1,332,519 $ 1,609,296 $ 1,608,644

Stockholder's Equity (Deficit)

Stockholder's Equity (Deficit) (Tables)	6 Months Ended
	Mar. 31, 2020
Stockholders Equity Note [Abstract]
Schedule of Shares Repurchased and Subsequently Retired	Information related to our shares repurchased and subsequently retired were as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Number of shares repurchased 3,936 — 4,702 — Total cost of share repurchased $ 50,000 $ — $ 61,357 $ —
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, 2019 $ (113,932 ) $ (3,201 ) $ (154 ) $ (117,287 ) Other comprehensive loss before reclassification, net of tax (8,823 ) (209 ) (399 ) (9,431 ) Reclassification to net earnings, net of tax — 238 2,237 2,475 Balance at March 31, 2020 $ (122,755 ) $ (3,172 ) $ 1,684 $ (124,243 )

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	6 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of reconciliation of basic and diluted weighted-average shares	The following table sets forth the reconciliation of basic and diluted weighted-average shares (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Weighted-average basic shares 114,823 120,077 115,478 120,033 Dilutive securities: Stock option and stock award programs 972 914 984 916 Weighted-average diluted shares 115,795 120,991 116,462 120,949 Anti-dilutive options excluded from our computation of diluted shares 5,076 5,183 5,076 5,183

Leases (Tables)

Leases (Tables)	6 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Summary of Operating and Finance Leases	Our operating and finance leases consisted of the following (in thousands): Balance Sheet Classification March 31, 2020 Assets: Operating lease Operating lease assets $ 544,471 Finance lease Property and equipment, net 2,866 Total lease assets $ 547,337 Liabilities: Current: Operating lease Current operating lease liabilities $ 151,162 Finance lease Current maturities of long-term debt 171 Long-term: Operating lease Long-term operating lease liabilities 405,593 Finance lease Long-term debt 672 Total lease liabilities $ 557,598
Summary of Lease Costs, Net of Immaterial Sublease Income	Our lease costs, net of immaterial sublease income, consisted of the following (in thousands): Statement of Earnings Classification Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease costs (a) Cost of goods sold and selling, general and administrative expenses (b) $ 49,342 $ 94,687 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 75 150 Interest on lease liabilities Interest expense 11 22 Variable lease costs (c) Selling, general and administrative expenses 14,694 28,964 Total lease costs $ 64,122 $ 123,823 (a) Includes costs related to short-term leases, which are immaterial. (b) Certain supply chain-related amounts are included in cost of goods sold. (c) Includes common area maintenance, real estate taxes and insurance related to leases.
Summary of Future Lease Payments	As of March 31, 2020, the approximate future lease payments under our leases are as follows (in thousands): Fiscal Year Operating leases Finance leases Remainder of 2020 $ 91,911 $ 171 2021 157,568 168 2022 116,804 168 2023 81,479 168 2024 53,297 168 Thereafter 93,793 — Total undiscounted lease payments 594,852 843 Less: imputed interest 38,097 — Present value of lease liabilities $ 556,755 $ 843
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases	As of September 30, 2019, our future minimum lease payments under non-cancelable operating leases as reported under the previous accounting standard were 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
Summary of Other Lease Information	Other lease information is as follows (dollars in thousands): Six Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 96,734 Operating cash flows – finance leases 22 Financing cash flows – finance leases 2 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 128,536 Lease assets obtained in exchange for new finance lease liabilities 4 March 31, 2020 Weighted-average remaining lease term (in years): Operating leases 4.7 Finance leases 4.3 Weighted-average discount rate: Operating leases 4.3 % Finance leases 5.0 %

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Mar. 31, 2020
Foreign Currency Forwards
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At March 31, 2020, the notional amount we held through these forwards, based upon exchange rates at March 31, 2020, was as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 12,653 Canadian Dollar 4,766 Total $ 17,419

Income Tax (Tables)

Income Tax (Tables)	6 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of the difference between U.S. statutory federal income tax rate and the effective income tax rate	Three Months Ended Six Months Ended March 31, March 31, 2020 2019 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 4.4 3.3 3.6 3.4 Effect of foreign operations 0.1 (0.1 ) 0.9 0.1 Foreign valuation allowances 15.9 (0.1 ) 3.9 0.4 Deemed repatriation tax 0.0 0.0 0.0 (1.7 ) Other, net (3.2 ) 1.8 0.1 1.2 Effective tax rate 38.2 % 25.9 % 29.5 % 24.4 %

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three and six months ended March 31, 2020 and 2019, is as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Net sales: Sally Beauty Supply ("SBS") $ 519,509 $ 565,604 $ 1,088,657 $ 1,146,213 Beauty Systems Group ("BSG") 351,514 380,248 762,574 789,092 Total $ 871,023 $ 945,852 $ 1,851,231 $ 1,935,305 Earnings before provision for income taxes: Segment operating earnings: SBS $ 56,373 $ 86,715 $ 130,598 $ 176,706 BSG 41,039 56,518 103,473 118,849 Segment operating earnings 97,412 143,233 234,071 295,555 Unallocated expenses 50,954 36,535 90,694 75,139 Restructuring 3,193 (5,814 ) 5,725 (1,834 ) Consolidated operating earnings 43,265 112,512 137,652 222,250 Interest expense 21,644 23,821 43,185 48,310 Earnings before provision for income taxes $ 21,621 $ 88,691 $ 94,467 $ 173,940
Schedule of disaggregation of net sales by segment	Disaggregation of net sales by segment Three Months Ended March 31, Six Months Ended March 31, SBS 2020 2019 2020 2019 Hair color 32.8 % 29.1 % 31.9 % 28.3 % Hair care 19.5 % 20.5 % 19.7 % 20.2 % Skin and nail care 12.8 % 14.6 % 13.5 % 14.8 % Styling tools 12.7 % 13.6 % 13.4 % 14.7 % Salon supplies and accessories 7.6 % 7.5 % 7.2 % 7.3 % Multicultural products 6.1 % 7.0 % 5.7 % 6.7 % Other beauty items 8.5 % 7.7 % 8.6 % 8.0 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2020 2019 2020 2019 Hair color 40.1 % 40.3 % 38.8 % 39.1 % Hair care 35.1 % 34.2 % 34.8 % 33.8 % Skin and nail care 8.2 % 8.2 % 8.2 % 8.2 % Styling tools 6.2 % 3.2 % 6.5 % 3.6 % Other beauty items 3.0 % 6.6 % 2.8 % 6.1 % Promotional items 7.4 % 7.5 % 8.9 % 9.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended March 31, Six Months Ended March 31, SBS 2020 2019 2020 2019 Company-operated stores 94.9 % 96.7 % 95.4 % 96.7 % E-commerce 4.9 % 3.0 % 4.4 % 3.0 % Franchise stores 0.2 % 0.3 % 0.2 % 0.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended March 31, Six Months Ended March 31, BSG 2020 2019 2020 2019 Company-operated stores 70.4 % 70.4 % 69.8 % 69.7 % Distributor sales consultants 16.6 % 17.3 % 17.3 % 18.1 % Franchise stores 7.1 % 7.3 % 7.2 % 7.5 % E-commerce 5.9 % 5.0 % 5.7 % 4.7 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Parent, Issuers, Guarantor an_2

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)	6 Months Ended
	Mar. 31, 2020
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet March 31, 2020 (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 $ 335,827 $ 28,577 $ — $ 364,414 Trade and other accounts receivable, net — — 52,788 34,545 — 87,333 Due from affiliates — — 2,638,162 — (2,638,162 ) — Inventory — — 710,623 235,566 — 946,189 Other current assets 15,311 270 23,119 12,403 — 51,103 Property and equipment, net 8 — 264,739 55,473 — 320,220 Operating lease assets — — 401,374 143,097 — 544,471 Investment in subsidiaries 1,685,104 4,469,936 376,173 — (6,531,213 ) — Goodwill and other intangible assets, net — — 450,484 137,446 — 587,930 Other assets 1,446 3,092 3,098 11,870 — 19,506 Total assets $ 1,701,869 $ 4,473,308 $ 5,256,387 $ 658,977 $ (9,169,375 ) $ 2,921,166 Liabilities and Stockholders’ Equity (Deficit) Accounts payable $ 23 $ — $ 180,078 $ 41,659 $ — $ 221,760 Due to affiliates 1,748,579 823,032 — 66,551 (2,638,162 ) — Accrued liabilities 160 18,151 100,226 27,383 — 145,920 Income taxes payable — 2,161 — (838 ) — 1,323 Long-term debt — 1,945,023 4 839 — 1,945,866 Long-term operating lease liabilities — — 413,824 142,931 — 556,755 Other liabilities 6,441 — 11,840 29 — 18,310 Deferred income tax liabilities, net (139 ) (163 ) 80,479 4,250 — 84,427 Total liabilities 1,755,064 2,788,204 786,451 282,804 (2,638,162 ) 2,974,361 Total stockholders’ equity (deficit) (53,195 ) 1,685,104 4,469,936 376,173 (6,531,213 ) (53,195 ) Total liabilities and stockholders’ equity (deficit) $ 1,701,869 $ 4,473,308 $ 5,256,387 $ 658,977 $ (9,169,375 ) $ 2,921,166 Condensed Consolidating Balance Sheet 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 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’ Equity (Deficit) 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’ equity (deficit) (60,323 ) 1,621,843 4,374,334 385,629 (6,381,806 ) (60,323 ) Total liabilities and stockholders’ equity (deficit) $ 1,624,731 $ 4,377,975 $ 4,825,962 $ 529,656 $ (9,259,878 ) $ 2,098,446
Schedule of Condensed Consolidating Statement of Earnings and Comprehensive Income	Condensed Consolidating Statement of Earnings and Comprehensive Income Three Months Ended March 31, 2020 (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 $ — $ — $ 713,872 $ 157,151 $ — $ 871,023 Related party sales — — 382 — (382 ) — Cost of goods sold — — 355,373 86,275 (382 ) 441,266 Gross profit — — 358,881 70,876 — 429,757 Selling, general and administrative expenses 2,758 179 306,197 74,165 — 383,299 Restructuring — — 3,193 — — 3,193 Operating earnings (loss) (2,758 ) (179 ) 49,491 (3,289 ) — 43,265 Interest expense (income) — 21,652 3 (11 ) — 21,644 Earnings (loss) before provision for income taxes (2,758 ) (21,831 ) 49,488 (3,278 ) — 21,621 Provision (benefit) for income taxes (708 ) (5,604 ) 11,502 3,063 — 8,253 Equity in earnings (loss) of subsidiaries, net of tax 15,418 31,645 (6,341 ) — (40,722 ) — Net earnings (loss) 13,368 15,418 31,645 (6,341 ) (40,722 ) 13,368 Other comprehensive income, net of tax — (80 ) — (21,746 ) — (21,826 ) Total comprehensive income (loss) $ 13,368 $ 15,338 $ 31,645 $ (28,087 ) $ (40,722 ) $ (8,458 ) Condensed Consolidating Sta tement of Earnings and Comprehensive Income Three Months Ended March 31, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 769,284 $ 176,568 $ — $ 945,852 Related party sales — — 480 — (480 ) — Cost of goods sold — — 383,147 94,861 (480 ) 477,528 Gross profit — — 386,617 81,707 — 468,324 Selling, general and administrative expenses 3,084 198 281,404 76,940 — 361,626 Restructuring — — (5,814 ) — — (5,814 ) Operating earnings (loss) (3,084 ) (198 ) 111,027 4,767 — 112,512 Interest expense (income) — 23,871 (1 ) (49 ) — 23,821 Earnings (loss) before provision for income taxes (3,084 ) (24,069 ) 111,028 4,816 — 88,691 Provision (benefit) for income taxes (791 ) (6,179 ) 28,795 1,141 22,966 Equity in earnings of subsidiaries, net of tax 68,018 85,908 3,675 — (157,601 ) — Net earnings 65,725 68,018 85,908 3,675 (157,601 ) 65,725 Other comprehensive income (loss), net of tax — (2,140 ) — 3,282 1,142 Total comprehensive income (loss) $ 65,725 $ 65,878 $ 85,908 $ 6,957 $ (157,601 ) $ 66,867
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 2020 (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 (used) provided by operating activities $ (17,666 ) $ (30,822 ) $ 122,299 $ 2,320 $ — $ 76,131 Cash Flows from Investing Activities: Payments for property and equipment (5 ) — (65,724 ) (6,254 ) — (71,983 ) Proceeds from sale of property and equipment — — 23 — — 23 Acquisitions, net of cash acquired — — (1,691 ) (253 ) — (1,944 ) Due from affiliates — — 239,910 — (239,910 ) — Net cash (used) provided by investing activities (5 ) — 172,518 (6,507 ) (239,910 ) (73,904 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 787,500 — — — 787,500 Repayments of long-term debt — (437,386 ) 1 — — (437,385 ) Repurchases of common stock (61,357 ) — — — — (61,357 ) Proceeds from exercises of stock options 2,771 — — — — 2,771 Due to affiliates 76,257 (319,292 ) — 3,125 239,910 — Net cash provided by financing activities 17,671 30,822 1 3,125 239,910 291,529 Effect of foreign exchange rate changes on cash and cash equivalents — — — (837 ) — (837 ) Net increase (decrease) in cash and cash equivalents — — 294,818 (1,899 ) — 292,919 Cash and cash equivalents, beginning of period — 10 41,009 30,476 — 71,495 Cash and cash equivalents, end of period $ — $ 10 $ 335,827 $ 28,577 $ — $ 364,414 Condensed Consolidating Statement of Cash Flows Six Months Ended March 31, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash (used) provided by operating activities $ 1,262 $ (32,639 ) $ 144,685 $ (3,198 ) $ — $ 110,110 Cash Flows from Investing Activities: Payments for property and equipment — — (41,559 ) (4,839 ) — (46,398 ) Proceeds from sale of property and equipment — — 12,007 3 — 12,010 Acquisitions, net of cash acquired — — (2,008 ) (840 ) — (2,848 ) Due from affiliates — — (92,458 ) — 92,458 — Net cash used by investing activities — — (124,018 ) (5,676 ) 92,458 (37,236 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 242,500 4 — — 242,504 Repayments of long-term debt — (304,154 ) (2 ) (1 ) — (304,157 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,721 — — — — 1,721 Due to affiliates (2,983 ) 94,293 — 1,148 (92,458 ) — Net cash (used) provided by financing activities (1,262 ) 32,639 2 1,147 (92,458 ) (59,932 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (460 ) — (460 ) Net increase (decrease) in cash and cash equivalents — — 20,669 (8,187 ) — 12,482 Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 49,719 $ 40,048 $ — $ 89,777

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Mar. 31, 2020
Summary of restructuring expense and gain	Restructuring expense and gain for the three and six months ended March 31, 2020 and 2019, are as follows (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Project Surge $ 107 $ — $ 1,360 $ — Transformation Plan 3,086 (5,814 ) 4,365 (1,834 ) Total expense (gain) $ 3,193 $ (5,814 ) $ 5,725 $ (1,834 )
Project Surge
Schedule of restructuring	The liability related to Project Surge, which is included in accrued liabilities on our condensed consolidated balance sheets, is as follows (in thousands): Project Surge Liability at September 30, 2019 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at March 31, 2020 Workforce reductions $ — $ 998 $ 998 $ — $ — Other — 362 362 — — Total $ — $ 1,360 $ 1,360 $ — $ —
Supply Chain Modernization
Schedule of restructuring	The liability related to the Transformation Plan, which is included in accrued liabilities on our condensed consolidated balance sheets, is as follows (in thousands): Transformation Plan Liability at September 30, 2019 Expenses Expenses Paid or Otherwise Settled Adjustments Liability at March 31, 2020 Workforce reductions $ 654 $ 2,022 $ 1,959 $ — $ 717 Consulting 204 1,426 1,630 — — Other 70 917 987 — — Total $ 928 $ 4,365 $ 4,576 $ — $ 717

Accounting Changes and Recent_3

Accounting Changes and Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
Accounting Changes
Operating lease asset	$ 544,471
Operating lease liability	556,755
Accumulated earnings	69,925	$ 55,797
ASU 16-02
Accounting Changes
Operating lease asset	513,900
Operating lease liability	523,500
Accumulated earnings	$ 400

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Changes to Contract Liabilities (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2020USD ($)
Contract With Customer Liability [Abstract]
Beginning balance	$ 12,866
Loyalty points and gift cards issued but not redeemed, net of estimated breakage	9,003
Revenue recognized from beginning liability	(8,491)
Ending balance	$ 13,378

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	$ 1,563,168	$ 1,609,296
Long-term debt, excluding capital leases, Fair Value	1,332,519	1,608,644
Level 2 | Term loan B
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	685,788	724,000
Long-term debt, excluding capital leases, Fair Value	601,101	709,830
Level 1 | Senior notes
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	877,380	885,296
Long-term debt, excluding capital leases, Fair Value	731,418	898,814
Fair value measurement on recurring basis
Financial Assets:
Total assets	3,188	344
Fair value measurement on recurring basis | Level 2 | Other current assets
Financial Assets:
Foreign exchange contracts	3,043
Fair value measurement on recurring basis | Level 2 | Other assets
Financial Assets:
Interest rate caps	$ 145	$ 344

Stockholder's Equity (Deficit_2

Stockholder's Equity (Deficit) - Share Repurchase Program (Details) - 2017 Share Repurchase program	1 Months Ended
	Aug. 31, 2017USD ($)
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

Stockholder's Equity (Deficit_3

Stockholder's Equity (Deficit) - Schedule of Shares Repurchased and Subsequently Retired (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Stockholders Equity Note [Abstract]
Number of shares repurchased	3,936	4,702
Total cost of share repurchased	$ 50,000	$ 61,357

Stockholder's Equity (Deficit_4

Stockholder's Equity (Deficit) - Change in AOCL (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2020USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ (60,323)
Balance	(53,195)
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(3,201)
Other comprehensive loss before reclassification, net of tax	(209)
Reclassification to net earnings, net of tax	238
Balance	(3,172)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(154)
Other comprehensive loss before reclassification, net of tax	(399)
Reclassification to net earnings, net of tax	2,237
Balance	1,684
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(113,932)
Other comprehensive loss before reclassification, net of tax	(8,823)
Balance	(122,755)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(117,287)
Other comprehensive loss before reclassification, net of tax	(9,431)
Reclassification to net earnings, net of tax	2,475
Balance	$ (124,243)

Weighted-Average Shares (Detail

Weighted-Average Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share Reconciliation:
Weighted-average basic shares	114,823	120,077	115,478	120,033
Dilutive securities:
Stock option and stock award programs	972	914	984	916
Weighted-average diluted shares	115,795	120,991	116,462	120,949
Anti-dilutive options excluded from our computation of diluted shares	5,076	5,183	5,076	5,183

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2020USD ($)
Leases [Line Items]
Lease extended term	five years
Operating lease liability	$ 556,755
Retail Stores
Leases [Line Items]
Operating lease liability	$ 13,400
Minimum
Leases [Line Items]
Lease term	5 years
Maximum
Leases [Line Items]
Lease term	10 years

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases (Details) $ in Thousands	Mar. 31, 2020USD ($)
Assets:
Operating lease assets	$ 544,471
Finance lease	$ 2,866
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet
Total lease assets	$ 547,337
Current:
Current operating lease liabilities	151,162
Finance lease	$ 171
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtCurrent
Long-term:
Long-term operating lease liabilities	$ 405,593
Finance lease	$ 672
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtNoncurrent
Total lease liabilities	$ 557,598

Leases - Summary of Lease Costs

Leases - Summary of Lease Costs, Net of Immaterial Sublease Income (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Lessee Lease Description [Line Items]
Total lease costs	$ 64,122	$ 123,823
Cost of Goods Sold and Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Operating lease costs	49,342	94,687
Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Amortization of leased assets	75	150
Variable lease costs	14,694	28,964
Interest Expense
Lessee Lease Description [Line Items]
Interest on lease liabilities	$ 11	$ 22

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) $ in Thousands	Mar. 31, 2020USD ($)
Operating leases
Remainder of 2020	$ 91,911
2021	157,568
2022	116,804
2023	81,479
2024	53,297
Thereafter	93,793
Total undiscounted lease payments	594,852
Less: imputed interest	38,097
Present value of lease liabilities	556,755
Finance leases
Remainder of 2020	171
2021	168
2022	168
2023	168
2024	168
Total undiscounted lease payments	843
Present value of lease liabilities	$ 843

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases (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

Leases - Summary of Other Lease

Leases - Summary of Other Lease Information (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2020USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$ 96,734
Operating cash flows – finance leases	22
Financing cash flows – finance leases	2
Supplemental non-cash information on lease liabilities:
Lease assets obtained in exchange for new operating lease liabilities	128,536
Lease assets obtained in exchange for new finance lease liabilities	$ 4
Weighted-average remaining lease term (in years):
Operating leases	4 years 8 months 12 days
Finance leases	4 years 3 months 18 days
Weighted-average discount rate:
Operating leases	4.30%
Finance leases	5.00%

Goodwill and Intangible Assets

Goodwill and Intangible Assets - (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment losses in connection with the goodwill			$ 0	$ 0
Impairment losses in connection with the intangible assets			0	0
Amortization expense related to other intangible assets	$ 2,200,000	$ 2,900,000	4,600,000	$ 5,700,000
Other intangible assets recorded in asset acquisitions			1,400,000
Goodwill, changes in foreign currency exchange rates			$ 1,700,000

Short-term Borrowings and Lon_2

Short-term Borrowings and Long-term Debt - ABL Facility and Canadian sub-facility (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Debt Instruments
Aggregate principal amount paid down			$ 437,385,000	$ 304,157,000
Gain (loss) on extinguishment of debt			357,000	$ 473,000
Write off of unamortized debt issuance costs			100,000
Term loan B
Debt Instruments
Aggregate principal amount paid down	$ 22,000,000	$ 14,800,000
Total tender offer price	99.00%	97.875%
Gain (loss) on extinguishment of debt			400,000
Gain from discount paid under face value			400,000
Senior notes due Dec. 2025
Debt Instruments
Aggregate principal amount paid down	$ 7,900,000
Total tender offer price	98.70%
Sally Holdings, LLC
Debt Instruments
Revolving credit facility	$ 85,800,000		85,800,000
ABL facility
Debt Instruments
Debt instrument, maturity date	Jul. 6, 2022
ABL facility | Sally Holdings, LLC
Debt Instruments
Outstanding borrowing	$ 395,500,000		$ 395,500,000

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - (Details)	3 Months Ended	6 Months Ended
	Mar. 31, 2020USD ($)instrument	Mar. 31, 2020USD ($)instrument	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0	0
Foreign Currency Forwards
Derivative Instruments
Derivative instruments, expiration date		Jun. 30, 2020
Notional Amount	$ 17,419,000	$ 17,419,000
Foreign Currency Forwards | Selling, General and Administrative Expenses
Derivative Instruments
Reclassified gain from AOCL, net	1,300,000
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC
Derivative Instruments
Derivative instruments, expiration date		Jun. 30, 2023
Notional Amount			$ 550,000,000
Number of interest rate caps | derivative			2
Interest rate caps designated as cash flow hedges to be reclassified in to interest expense over next 12 months	900,000	$ 900,000
Reclassification from AOCL | Foreign Currency Forwards
Derivative Instruments
Foreign currency forwards designated as cash flow hedges to be reclassified gains in to cost of goods sold over next 12 months	$ 2,100,000	$ 2,100,000

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Schedule of Notional Amount Held Through Foreign Currency Forwards, Based Upon Exchange Rates (Details) $ in Thousands	Mar. 31, 2020USD ($)
Foreign Currency Forwards
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 17,419
Mexican Peso
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	12,653
Canadian Dollar
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 4,766

Income Tax (Details)

Income Tax (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	38.20%	25.90%	29.50%	24.40%

Income Tax - Schedule of Differ

Income Tax - Schedule of Difference Between US Federal Statutory Income Tax Rate and Effective Income Tax Rate (Details)	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit	4.40%	3.30%	3.60%	3.40%
Effect of foreign operations	0.10%	(0.10%)	0.90%	0.10%
Foreign valuation allowances	15.90%	(0.10%)	3.90%	0.40%
Deemed repatriation tax	0.00%	0.00%	0.00%	(1.70%)
Other, net	(3.20%)	1.80%	0.10%	1.20%
Effective tax rate	38.20%	25.90%	29.50%	24.40%

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Net sales:
Total net sales	$ 871,023	$ 945,852	$ 1,851,231	$ 1,935,305
Segment operating earnings:
Segment operating earnings	43,265	112,512	137,652	222,250
Restructuring	3,193	(5,814)	5,725	(1,834)
Interest expense	21,644	23,821	43,185	48,310
Earnings before provision for income taxes	21,621	88,691	94,467	173,940
Operating segments
Segment operating earnings:
Segment operating earnings	97,412	143,233	234,071	295,555
Corporate
Segment operating earnings:
Unallocated expenses	50,954	36,535	90,694	75,139
Restructuring			2,400
Sally Beauty Supply
Net sales:
Total net sales	519,509	565,604	1,088,657	1,146,213
Segment operating earnings:
Restructuring			1,300
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	56,373	86,715	130,598	176,706
Beauty Systems Group
Net sales:
Total net sales	351,514	380,248	762,574	789,092
Segment operating earnings:
Restructuring			700
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	$ 41,039	$ 56,518	$ 103,473	$ 118,849

Business Segments - Schedule of

Business Segments - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Sally Beauty Supply
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	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%	100.00%
Sally Beauty Supply | Hair color | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	32.80%	29.10%	31.90%	28.30%
Sally Beauty Supply | Hair care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	19.50%	20.50%	19.70%	20.20%
Sally Beauty Supply | Skin and nail care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	12.80%	14.60%	13.50%	14.80%
Sally Beauty Supply | Styling tools | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	12.70%	13.60%	13.40%	14.70%
Sally Beauty Supply | Salon supplies and accessories | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.60%	7.50%	7.20%	7.30%
Sally Beauty Supply | Multicultural products | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.10%	7.00%	5.70%	6.70%
Sally Beauty Supply | Other Beauty items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.50%	7.70%	8.60%	8.00%
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	94.90%	96.70%	95.40%	96.70%
Sally Beauty Supply | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	4.90%	3.00%	4.40%	3.00%
Sally Beauty Supply | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.20%	0.30%	0.20%	0.30%
Beauty Systems Group
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	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%	100.00%
Beauty Systems Group | Hair color | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	40.10%	40.30%	38.80%	39.10%
Beauty Systems Group | Hair care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	35.10%	34.20%	34.80%	33.80%
Beauty Systems Group | Skin and nail care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.20%	8.20%	8.20%	8.20%
Beauty Systems Group | Styling tools | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.20%	3.20%	6.50%	3.60%
Beauty Systems Group | Other Beauty items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.00%	6.60%	2.80%	6.10%
Beauty Systems Group | Promotional items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.40%	7.50%	8.90%	9.20%
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	70.40%	70.40%	69.80%	69.70%
Beauty Systems Group | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	5.90%	5.00%	5.70%	4.70%
Beauty Systems Group | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.10%	7.30%	7.20%	7.50%
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants
Disaggregation Of Revenue [Line Items]
Percentage of net sales	16.60%	17.30%	17.30%	18.10%

Parent, Issuers, Guarantor an_3

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - (Details)	6 Months Ended
	Mar. 31, 2020
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%

Parent, Issuers, Guarantor an_4

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets
Cash and cash equivalents	$ 364,414		$ 71,495	$ 89,777		$ 77,295
Trade and other accounts receivable, net	87,333		104,539
Inventory	946,189		952,907
Other current assets	51,103		34,612
Property and equipment, net	320,220		319,628
Operating lease assets	544,471
Goodwill and other intangible assets, net	587,930		592,837
Other assets	19,506		22,428
Total assets	2,921,166		2,098,446
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	221,760		278,688
Accrued liabilities	145,920		169,054
Income taxes payable	1,323		8,336
Long-term debt	1,945,866		1,594,543
Long-term operating lease liabilities	556,755
Other liabilities	18,310		27,757
Deferred income tax liabilities, net	84,427		80,391
Total liabilities	2,974,361		2,158,769
Total stockholders’ equity (deficit)	(53,195)	$ 2,199	(60,323)	(145,075)	$ (214,731)	(268,556)
Total liabilities and stockholders’ deficit	2,921,166		2,098,446
Parent
Assets
Other current assets	15,311		1,436
Property and equipment, net	8		6
Investment in subsidiaries	1,685,104		1,621,843
Other assets	1,446		1,446
Total assets	1,701,869		1,624,731
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	23		48
Due to affiliates	1,748,579		1,672,322
Accrued liabilities	160		188
Income taxes payable			6,055
Other liabilities	6,441		6,441
Deferred income tax liabilities, net	(139)
Total liabilities	1,755,064		1,685,054
Total stockholders’ equity (deficit)	(53,195)		(60,323)
Total liabilities and stockholders’ deficit	1,701,869		1,624,731
Sally Holdings and Sally Capital
Assets
Cash and cash equivalents	10		10	10		10
Other current assets	270		132
Investment in subsidiaries	4,469,936		4,374,334
Other assets	3,092		3,499
Total assets	4,473,308		4,377,975
Liabilities and Stockholders’ Equity (Deficit)
Due to affiliates	823,032		1,142,324
Accrued liabilities	18,151		17,937
Income taxes payable	2,161		2,161
Long-term debt	1,945,023		1,593,710
Deferred income tax liabilities, net	(163)
Total liabilities	2,788,204		2,756,132
Total stockholders’ equity (deficit)	1,685,104		1,621,843
Total liabilities and stockholders’ deficit	4,473,308		4,377,975
Guarantor Subsidiaries
Assets
Cash and cash equivalents	335,827		41,009	49,719		29,050
Trade and other accounts receivable, net	52,788		65,746
Due from affiliates	2,638,162		2,878,072
Inventory	710,623		722,830
Other current assets	23,119		22,480
Property and equipment, net	264,739		258,132
Operating lease assets	401,374
Investment in subsidiaries	376,173		385,629
Goodwill and other intangible assets, net	450,484		452,645
Other assets	3,098		(581)
Total assets	5,256,387		4,825,962
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	180,078		235,940
Accrued liabilities	100,226		121,375
Income taxes payable			1
Long-term debt	4		1
Long-term operating lease liabilities	413,824
Other liabilities	11,840		17,639
Deferred income tax liabilities, net	80,479		76,672
Total liabilities	786,451		451,628
Total stockholders’ equity (deficit)	4,469,936		4,374,334
Total liabilities and stockholders’ deficit	5,256,387		4,825,962
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	28,577		30,476	$ 40,048		$ 48,235
Trade and other accounts receivable, net	34,545		38,793
Inventory	235,566		230,077
Other current assets	12,403		10,564
Property and equipment, net	55,473		61,490
Operating lease assets	143,097
Goodwill and other intangible assets, net	137,446		140,192
Other assets	11,870		18,064
Total assets	658,977		529,656
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	41,659		42,700
Due to affiliates	66,551		63,426
Accrued liabilities	27,383		29,554
Income taxes payable	(838)		119
Long-term debt	839		832
Long-term operating lease liabilities	142,931
Other liabilities	29		3,677
Deferred income tax liabilities, net	4,250		3,719
Total liabilities	282,804		144,027
Total stockholders’ equity (deficit)	376,173		385,629
Total liabilities and stockholders’ deficit	658,977		529,656
Consolidating Eliminations
Assets
Due from affiliates	(2,638,162)		(2,878,072)
Investment in subsidiaries	(6,531,213)		(6,381,806)
Total assets	(9,169,375)		(9,259,878)
Liabilities and Stockholders’ Equity (Deficit)
Due to affiliates	(2,638,162)		(2,878,072)
Total liabilities	(2,638,162)		(2,878,072)
Total stockholders’ equity (deficit)	(6,531,213)		(6,381,806)
Total liabilities and stockholders’ deficit	$ (9,169,375)		$ (9,259,878)

Parent, Issuers, Guarantor an_5

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Earnings and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2020	Mar. 31, 2019
Condensed Income Statements Captions [Line Items]
Net sales	$ 871,023		$ 945,852		$ 1,851,231	$ 1,935,305
Cost of goods sold	441,266		477,528		946,626	986,275
Gross profit	429,757		468,324		904,605	949,030
Selling, general and administrative expenses	383,299		361,626		761,228	728,614
Restructuring	3,193		(5,814)		5,725	(1,834)
Operating earnings	43,265		112,512		137,652	222,250
Interest expense (income)	21,644		23,821
Earnings before provision for income taxes	21,621		88,691		94,467	173,940
Provision (benefit) for income taxes	8,253		22,966		27,884	42,488
Net earnings	13,368	$ 53,215	65,725	$ 65,727	66,583	131,452
Other comprehensive income (loss), net of tax	(21,826)	$ 14,870	1,142	$ (16,705)	(6,956)	(15,563)
Total comprehensive income (loss)	(8,458)		66,867		$ 59,627	$ 115,889
Parent
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	2,758		3,084
Operating earnings	(2,758)		(3,084)
Earnings before provision for income taxes	(2,758)		(3,084)
Provision (benefit) for income taxes	(708)		(791)
Equity in earnings (loss) of subsidiaries, net of tax	15,418		68,018
Net earnings	13,368		65,725
Total comprehensive income (loss)	13,368		65,725
Sally Holdings and Sally Capital
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	179		198
Operating earnings	(179)		(198)
Interest expense (income)	21,652		23,871
Earnings before provision for income taxes	(21,831)		(24,069)
Provision (benefit) for income taxes	(5,604)		(6,179)
Equity in earnings (loss) of subsidiaries, net of tax	31,645		85,908
Net earnings	15,418		68,018
Other comprehensive income (loss), net of tax	(80)		(2,140)
Total comprehensive income (loss)	15,338		65,878
Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	713,872		769,284
Related party sales	382		480
Cost of goods sold	355,373		383,147
Gross profit	358,881		386,617
Selling, general and administrative expenses	306,197		281,404
Restructuring	3,193		(5,814)
Operating earnings	49,491		111,027
Interest expense (income)	3		(1)
Earnings before provision for income taxes	49,488		111,028
Provision (benefit) for income taxes	11,502		28,795
Equity in earnings (loss) of subsidiaries, net of tax	(6,341)		3,675
Net earnings	31,645		85,908
Total comprehensive income (loss)	31,645		85,908
Non-Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	157,151		176,568
Cost of goods sold	86,275		94,861
Gross profit	70,876		81,707
Selling, general and administrative expenses	74,165		76,940
Operating earnings	(3,289)		4,767
Interest expense (income)	(11)		(49)
Earnings before provision for income taxes	(3,278)		4,816
Provision (benefit) for income taxes	3,063		1,141
Net earnings	(6,341)		3,675
Other comprehensive income (loss), net of tax	(21,746)		3,282
Total comprehensive income (loss)	(28,087)		6,957
Consolidating Eliminations
Condensed Income Statements Captions [Line Items]
Related party sales	(382)		(480)
Cost of goods sold	(382)		(480)
Equity in earnings (loss) of subsidiaries, net of tax	(40,722)		(157,601)
Net earnings	(40,722)		(157,601)
Total comprehensive income (loss)	$ (40,722)		$ (157,601)

Parent, Issuers, Guarantor an_6

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	$ 76,131	$ 110,110
Cash Flows from Investing Activities:
Payments for property and equipment	(71,983)	(46,398)
Proceeds from sale of property and equipment	23	12,010
Acquisitions, net of cash acquired	(1,944)	(2,848)
Net cash used by investing activities	(73,904)	(37,236)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	787,500	242,504
Repayments of long-term debt	(437,385)	(304,157)
Repurchases of common stock	(61,357)
Proceeds from exercises of stock options	2,771	1,721
Net cash (used) provided by financing activities	291,529	(59,932)
Effect of foreign exchange rate changes on cash and cash equivalents	(837)	(460)
Net increase (decrease) in cash and cash equivalents	292,919	12,482
Cash and cash equivalents, beginning of period	71,495	77,295
Cash and cash equivalents, end of period	364,414	89,777
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	(17,666)	1,262
Cash Flows from Investing Activities:
Payments for property and equipment	(5)
Net cash used by investing activities	(5)
Cash Flows from Financing Activities:
Repurchases of common stock	(61,357)
Proceeds from exercises of stock options	2,771	1,721
Due to affiliates	76,257	(2,983)
Net cash (used) provided by financing activities	17,671	(1,262)
Sally Holdings and Sally Capital
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	(30,822)	(32,639)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	787,500	242,500
Repayments of long-term debt	(437,386)	(304,154)
Due to affiliates	(319,292)	94,293
Net cash (used) provided by financing activities	30,822	32,639
Cash and cash equivalents, beginning of period	10	10
Cash and cash equivalents, end of period	10	10
Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	122,299	144,685
Cash Flows from Investing Activities:
Payments for property and equipment	(65,724)	(41,559)
Proceeds from sale of property and equipment	23	12,007
Acquisitions, net of cash acquired	(1,691)	(2,008)
Due from affiliates	239,910	(92,458)
Net cash used by investing activities	172,518	(124,018)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt		4
Repayments of long-term debt	1	(2)
Net cash (used) provided by financing activities	1	2
Net increase (decrease) in cash and cash equivalents	294,818	20,669
Cash and cash equivalents, beginning of period	41,009	29,050
Cash and cash equivalents, end of period	335,827	49,719
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	2,320	(3,198)
Cash Flows from Investing Activities:
Payments for property and equipment	(6,254)	(4,839)
Proceeds from sale of property and equipment		3
Acquisitions, net of cash acquired	(253)	(840)
Net cash used by investing activities	(6,507)	(5,676)
Cash Flows from Financing Activities:
Repayments of long-term debt		(1)
Due to affiliates	3,125	1,148
Net cash (used) provided by financing activities	3,125	1,147
Effect of foreign exchange rate changes on cash and cash equivalents	(837)	(460)
Net increase (decrease) in cash and cash equivalents	(1,899)	(8,187)
Cash and cash equivalents, beginning of period	30,476	48,235
Cash and cash equivalents, end of period	28,577	40,048
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	(239,910)	92,458
Net cash used by investing activities	(239,910)	92,458
Cash Flows from Financing Activities:
Due to affiliates	239,910	(92,458)
Net cash (used) provided by financing activities	$ 239,910	$ (92,458)

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Expense and Gain (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 3,193	$ (5,814)	$ 5,725	$ (1,834)
Total expense (gain)	3,193	(5,814)	5,725	(1,834)
Project Surge
Restructuring Cost And Reserve [Line Items]
Restructuring expense	107		1,360
Restructuring charges			1,360
Transformation Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 3,086	$ (5,814)	$ 4,365	$ (1,834)

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Changes in restructuring reserve
Restructuring charges	$ 3,193	$ (5,814)	$ 5,725	$ (1,834)
Corporate
Changes in restructuring reserve
Restructuring charges			2,400
Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges			1,300
Beauty Systems Group
Changes in restructuring reserve
Restructuring charges			700
Project Surge
Changes in restructuring reserve
Restructuring charges			1,360
Expenses Paid or Otherwise Settled			1,360
Project Surge | Corporate
Changes in restructuring reserve
Restructuring charges			100
Project Surge | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges			1,300
Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance			928
Restructuring charges	3,086	$ (5,814)	4,365	$ (1,834)
Expenses Paid or Otherwise Settled			4,576
Restructuring reserve, ending balance	717		717
Workforce reductions | Project Surge
Changes in restructuring reserve
Restructuring charges			998
Expenses Paid or Otherwise Settled			998
Workforce reductions | Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance			654
Restructuring charges			2,022
Expenses Paid or Otherwise Settled			1,959
Restructuring reserve, ending balance	$ 717		717
Other | Project Surge
Changes in restructuring reserve
Restructuring charges			362
Expenses Paid or Otherwise Settled			362
Other | Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance			70
Restructuring charges			917
Expenses Paid or Otherwise Settled			987
Consulting | Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance			204
Restructuring charges			1,426
Expenses Paid or Otherwise Settled			$ 1,630

Subsequent Event - Additional I

Subsequent Event - Additional Information (Details) - USD ($) $ in Millions	Apr. 24, 2020	Apr. 15, 2020	Mar. 31, 2020	Apr. 14, 2020
ABL facility
Subsequent Event [Line Items]
Debt instrument, maturity date			Jul. 6, 2022
Subsequent Event | Senior secured second lien notes due 2025
Subsequent Event [Line Items]
Principal amount	$ 300
Net proceeds from offering	$ 295.5
Interest rate	8.75%
Subsequent Event | ABL facility
Subsequent Event [Line Items]
Outstanding borrowing		$ 600		$ 500
Indebtedness amount		$ 20
Debt instrument, maturity date		Jul. 6, 2022