Sally Beauty (SBH) 10-Q 31 Jul 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2020	Jul. 24, 2020
Cover [Abstract]
Entity Registrant Name	SALLY BEAUTY HOLDINGS, INC.
Entity Central Index Key	0001368458
Document Type	10-Q
Document Period End Date	Jun. 30, 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		112,852,369
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 838,811	$ 71,495
Trade accounts receivable, net	42,818	43,136
Accounts receivable, other	17,485	61,403
Inventory	815,632	952,907
Other current assets	48,596	34,612
Total current assets	1,763,342	1,163,553
Property and equipment, net of accumulated depreciation of $688,798 at June 30, 2020, and $659,285 at September 30, 2019	311,063	319,628
Operating lease assets	514,415
Goodwill	530,681	530,786
Intangible assets, excluding goodwill, net of accumulated amortization of $65,791 at June 30, 2020, and $64,615 at September 30, 2019	56,859	62,051
Other assets	21,734	22,428
Total assets	3,198,094	2,098,446
Current liabilities:
Current maturities of long-term debt	395,673	1
Accounts payable	239,905	278,688
Accrued liabilities	148,197	169,054
Current operating lease liabilities	152,650
Income taxes payable	1,307	8,336
Total current liabilities	937,732	456,079
Long-term debt	1,845,594	1,594,542
Long-term operating lease liabilities	377,930
Other liabilities	26,433	27,757
Deferred income tax liabilities, net	79,538	80,391
Total liabilities	3,267,227	2,158,769
Stockholders’ deficit:
Common stock, $0.01 par value. Authorized 500,000 shares; 112,848 and 116,986 shares issued and 112,280 and 116,725 shares outstanding at June 30, 2020, and September 30, 2019, respectively	1,123	1,167
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Additional paid-in capital	2,513
Accumulated earnings	46,399	55,797
Accumulated other comprehensive loss, net of tax	(119,168)	(117,287)
Total stockholders’ deficit	(69,133)	(60,323)
Total liabilities and stockholders’ deficit	$ 3,198,094	$ 2,098,446

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in dollars)	$ 688,798	$ 659,285
Intangible assets, excluding goodwill, accumulated amortization (in dollars)	$ 65,791	$ 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	112,280,000	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 (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 705,287	$ 975,169	$ 2,556,518	$ 2,910,474
Cost of goods sold	383,441	492,947	1,330,067	1,479,222
Gross profit	321,846	482,222	1,226,451	1,431,252
Selling, general and administrative expenses	314,599	360,183	1,075,827	1,088,797
Restructuring	5,816	1,908	11,541	74
Operating earnings	1,431	120,131	139,083	342,381
Interest expense	27,298	25,781	70,483	74,092
Earnings (loss) before provision for income taxes	(25,867)	94,350	68,600	268,289
Provision (benefit) for income taxes	(2,341)	23,186	25,543	65,673
Net earnings (loss)	$ (23,526)	$ 71,164	$ 43,057	$ 202,616
Earnings (loss) per share:
Basic	$ (0.21)	$ 0.59	$ 0.38	$ 1.69
Diluted	$ (0.21)	$ 0.59	$ 0.37	$ 1.68
Weighted-average shares:
Basic	112,271	120,119	114,413	120,062
Diluted	112,271	120,977	115,370	120,928

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings (loss)	$ (23,526)	$ 71,164	$ 43,057	$ 202,616
Other comprehensive income (loss):
Foreign currency translation adjustments	5,116	834	(3,707)	(9,591)
Interest rate caps, net of tax	245	586	274	(4,384)
Foreign exchange contracts, net of tax	(286)	103	1,552	(65)
Other comprehensive income (loss), net of tax	5,075	1,523	(1,881)	(14,040)
Total comprehensive income (loss)	$ (18,451)	$ 72,687	$ 41,176	$ 188,576

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash Flows from Operating Activities:
Net earnings	$ 43,057	$ 202,616
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	80,829	80,425
Share-based compensation expense	9,094	7,728
Amortization of deferred financing costs	2,965	2,894
Loss (gain) on early extinguishment of debt	(357)	951
Loss (gain) on disposal of equipment and other property	2,910	(6,557)
Deferred income taxes	600	12,095
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	495	3,361
Accounts receivable, other	45,888	(10,641)
Inventory	134,824	(28,283)
Other current assets	(15,840)	4,687
Other assets	(691)	(1,195)
Accounts payable and accrued liabilities	(35,572)	(59,105)
Income taxes payable	(7,154)	(926)
Other liabilities	13,336	(4,227)
Net cash provided by operating activities	274,384	203,823
Cash Flows from Investing Activities:
Payments for property and equipment	(89,740)	(66,763)
Proceeds from sale of property and equipment	38	12,021
Acquisitions, net of cash acquired	(1,944)	(2,763)
Net cash used by investing activities	(91,646)	(57,505)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	1,087,504	394,004
Repayments of long-term debt	(437,391)	(561,162)
Debt issuance costs	(6,257)
Payments for common stock repurchased	(61,357)
Proceeds from exercises of stock options	2,722	1,787
Net cash provided (used) by financing activities	585,221	(165,371)
Effect of foreign exchange rate changes on cash and cash equivalents	(643)	(387)
Net increase (decrease) in cash and cash equivalents	767,316	(19,440)
Cash and cash equivalents, beginning of period	71,495	77,295
Cash and cash equivalents, end of period	838,811	57,855
Supplemental Cash Flow Information:
Interest paid	74,046	82,903
Income taxes paid	45,292	62,852
Capital expenditures incurred but not paid	$ 4,469	$ 3,116

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect Period of Adoption Adjustment	Common Stock	Common StockCumulative Effect Period of Adoption Adjustment	Additional Paid-in Capital	Additional Paid-in CapitalCumulative Effect Period of Adoption Adjustment	Accumulated Earnings (Deficit)	Accumulated Earnings (Deficit)Cumulative Effect Period of Adoption Adjustment	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive LossCumulative Effect Period of Adoption Adjustment
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 (loss)	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 (loss)	202,616
Other comprehensive income (loss)	(14,040)
Balance at Jun. 30, 2019	(70,465)		$ 1,201		9,513		22,852		(104,031)
Balance (in shares) at Jun. 30, 2019			120,130
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 (loss)	65,725						65,725
Other comprehensive income (loss)	1,142								1,142
Share-based compensation	2,517				2,517
Stock issued for stock options	272		$ 1		271
Stock issued for stock options (in shares)			66
Balance at Mar. 31, 2019	(145,075)		$ 1,201		7,590		(48,312)		(105,554)
Balance (in shares) at Mar. 31, 2019			120,107
Increase (Decrease) in Stockholders' Equity
Net earnings (loss)	71,164						71,164
Other comprehensive income (loss)	1,523								1,523
Share-based compensation	1,857				1,857
Stock issued for stock options	66				66
Stock issued for stock options (in shares)			23
Balance at Jun. 30, 2019	(70,465)		$ 1,201		9,513		22,852		(104,031)
Balance (in shares) at Jun. 30, 2019			120,130
Balance at Sep. 30, 2019	$ (60,323)	$ (445)	$ 1,167				55,797	$ (445)	(117,287)
Balance (in shares) at Sep. 30, 2019	116,725		116,725
Accounting Standards Update [Extensible List]		us-gaap:AccountingStandardsUpdate201602Member		us-gaap:AccountingStandardsUpdate201602Member		us-gaap:AccountingStandardsUpdate201602Member		us-gaap:AccountingStandardsUpdate201602Member		us-gaap:AccountingStandardsUpdate201602Member
Increase (Decrease) in Stockholders' Equity
Net earnings (loss)	$ 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)	$ (445)	$ 1,167				55,797	$ (445)	(117,287)
Balance (in shares) at Sep. 30, 2019	116,725		116,725
Increase (Decrease) in Stockholders' Equity
Net earnings (loss)	$ 43,057
Other comprehensive income (loss)	(1,881)
Balance at Jun. 30, 2020	$ (69,133)		$ 1,123		2,513		46,399		(119,168)
Balance (in shares) at Jun. 30, 2020	112,280		112,280
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 (loss)	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
Increase (Decrease) in Stockholders' Equity
Net earnings (loss)	(23,526)						(23,526)
Other comprehensive income (loss)	5,075								5,075
Share-based compensation	2,562				2,562
Stock issued for stock options	(49)				(49)
Stock issued for stock options (in shares)			16
Balance at Jun. 30, 2020	$ (69,133)		$ 1,123		$ 2,513		$ 46,399		$ (119,168)
Balance (in shares) at Jun. 30, 2020	112,280		112,280

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 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 June 30, 2020, and September 30, 2019, our consolidated results of operations, consolidated comprehensive income (loss), and consolidated statements of stockholders’ deficit for the three and nine months ended June 30, 2020 and 2019, and our consolidated cash flows for the nine months ended June 30, 2020 and 2019. Our operating results for the three months ended June 30, 2020, may not be indicative of the results that may be expected for the full fiscal year ending September 30, 2020, in particular as a result of the effects of the COVID-19 pandemic. As a result of COVID-19, we temporarily shut down virtually all global customer-facing store operations at the end of our second fiscal quarter and the start of our third fiscal quarter, followed by a rapid re-opening process over the course of the third quarter, although there is no certainty that we will not have to reclose certain, even a significant number, of our stores in the future. As of June 30, 2020, we have re-opened substantially all of our customer-facing store operations, except for parts of our operations in Mexico and South America. Due to the uncertainty over the duration and severity of the economic and operational impacts of COVID-19, the material adverse impact of this pandemic will likely continue for the remainder of our fiscal year 2020, and may continue into our fiscal year 2021 and possibly beyond.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 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.

Accounting Changes and Recent A

Accounting Changes and Recent Accounting Pronouncements	9 Months Ended
	Jun. 30, 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 Financial Accounting Standards Board (“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 periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, but all amendments must be adopted at once. The amendm ents 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	9 Months Ended
	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Revenue Recognition	4. Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise at 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 9,161 Revenue recognized from beginning liability (8,703 ) June 30, 2020 $ 13,324 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 June 30, 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	9 Months Ended
	Jun. 30, 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 June 30, 2020 September 30, 2019 Financial Assets: Foreign exchange contracts Other current assets Level 2 $ 1,367 $ — Interest rate caps Other assets Level 2 308 344 Total assets $ 1,675 $ 344 Other fair value disclosures June 30, 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 $ 1,177,380 $ 1,177,726 $ 885,296 $ 898,814 Term loan B Level 2 685,788 651,498 724,000 709,830 Total long-term debt $ 1,863,168 $ 1,829,224 $ 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.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	9 Months Ended
	Jun. 30, 2020
Stockholders Equity Note [Abstract]
Stockholders' Equity (Deficit)	6. Stockholders’ 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 June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Number of shares repurchased — — 4,702 — Total cost of share repurchased $ — $ — $ 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 (income) before reclassification, net of tax (3,707 ) (131 ) (1,115 ) (4,953 ) Reclassification to net earnings (loss), net of tax — 405 2,667 3,072 Balance at June 30, 2020 $ (117,639 ) $ (2,927 ) $ 1,398 $ (119,168 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings (loss) were not material.

Weighted-Average Shares

Weighted-Average Shares	9 Months Ended
	Jun. 30, 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 June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Weighted-average basic shares 112,271 120,119 114,413 120,062 Dilutive securities: Stock option and stock award programs — 858 957 866 Weighted-average diluted shares 112,271 120,977 115,370 120,928 Anti-dilutive options excluded from our computation of diluted shares 4,976 5,044 4,887 5,044 Potentially dilutive stock option and stock award programs excluded from our computation of diluted shares 941 — — —

Leases

Leases	9 Months Ended
	Jun. 30, 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. During the three months ended June 30, 2020, we recognized impairment on our certain operating lease asset and immaterial amounts for lease hold improvements of $0.9 million within selling, general and administrative expenses. See Note 15 for additional information related to impairments in connection with our restructuring activity. Our operating and finance leases consisted of the following (in thousands): Balance Sheet Classification June 30, 2020 Assets: Operating lease Operating lease assets $ 514,415 Finance lease Property and equipment, net 2,839 Total lease assets $ 517,254 Liabilities: Current: Operating lease Current operating lease liabilities $ 152,650 Finance lease Current maturities of long-term debt 173 Long-term: Operating lease Long-term operating lease liabilities 377,930 Finance lease Long-term debt 683 Total lease liabilities $ 531,436 Our lease costs, net of immaterial sublease income, consisted of the following (in thousands): Statement of Earnings (Loss) Classification Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Operating lease costs (a) Cost of goods sold and selling, general and administrative expenses (b) $ 48,785 $ 143,472 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 74 224 Interest on lease liabilities Interest expense 11 33 Variable lease costs (c) Selling, general and administrative expenses 5,276 34,240 Total lease costs $ 54,146 $ 177,969 (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. In response to COVID-19, the FASB issued interpretive guidance that provides an option for entities to make a policy election for lease concessions as a result of COVID-19, provided that the modified contracts result in total cash flows that are substantially the same or less than the original contracts. This policy election allows for lease concessions to be treated as though enforceable rights and obligations for those concessions existed (regardless of whether those enforceable rights and obligations for the concessions explicitly exist in the contracts). We have elected to apply this policy election and have included rent abatements related to COVID-19 into variable lease costs. For the three and nine months ended June 30, 2020, we have recognized a benefit of $8.1 million for rent abatements. As of June 30, 2020, the approximate future lease payments under our leases are as follows (in thousands): Fiscal Year Operating leases Finance leases Remainder of 2020 $ 45,867 $ 45 2021 161,902 171 2022 122,267 171 2023 86,973 171 2024 58,007 171 Thereafter 101,561 127 Total undiscounted lease payments 576,577 856 Less: imputed interest 45,997 — Present value of lease liabilities $ 530,580 $ 856 The table above does not include operating leases we have entered into of approximately $11.6 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): Nine Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 147,959 Operating cash flows – finance leases 33 Financing cash flows – finance leases 3 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 151,528 Lease assets obtained in exchange for new finance lease liabilities 4 June 30, 2020 Weighted-average remaining lease term (in years): Operating leases 4.9 Finance leases 4.0 Weighted-average discount rate: Operating leases 4.3 % Finance leases 5.0 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets We performed our annual assessment for impairment of goodwill and other intangible assets during our fiscal second quarter prior to the impacts of COVID-19. As a result of COVID-19, we performed an interim 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. Furthermore, we considered potential triggering events and determined there were none during the three months ended June 30, 2020, as our assumptions relative to future cash flows had improved during the quarter, and our market capitalization had increased significantly since March 31, 2020. No material impairment losses were recognized in the current or prior periods presented in connection with our goodwill and other intangible assets. For the three months ended June 30, 2020 and 2019, amortization expense related to other intangible assets was $2.2 million and $2.8 million, respectively, and, for the nine months ended June 30, 2020 and 2019, amortization expense was $6.8 million and $8.5 million, respectively. During the nine months ended June 30, 2020, we recorded approximately $1.4 million in other intangible assets related to immaterial acquisitions. Additionally, goodwill was negatively impacted by approximately $0.1 million from changes in foreign currency exchange rates during the nine months ended June 30, 2020.

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	9 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	10. Short-term Borrowings and Long-term Debt During the nine months ended June 30, 2020, we preemptively drew on our ABL facility as a result of COVID-19. At June 30, 2020, we had $395.5 million outstanding, including the FILO (first-in, last-out) tranche, 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 nine months ended June 30, 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. On April 15, 2020, we entered into an amendment to our ABL facility to, among other things, increased the revolving commitment thereunder from $500.0 million to $600.0 million, established a FILO (first-in, last-out) tranche of indebtedness in the amount of $20.0 million, increased pricing on the revolving loans and modified certain covenant and reporting terms. The ABL facility continues 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 is also secured by a second-priority lien in and upon the remaining assets of the Company and its guarantor subsidiaries. On April 24, 2020, we completed a private offering of $300.0 million aggregate principal amount of senior secured second lien notes due 2025 (the “Senior Secured Notes”) and received $295.5 million in net proceeds from the Senior Secured Notes offering. The Notes bear interest at a rate of 8.75% and were issued at par. The Senior Secured Notes are guaranteed on a senior secured basis by the guarantors who have guaranteed obligations under our senior secured credit facilities and our existing notes. We currently intend to hold the net proceeds from this offering to maintain cash reserves on our balance sheet. If necessary, we will use the cash for working capital and general corporate purposes. Covenants The agreements governing our ABL facility, term loan B and the senior notes 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 with customary events of default, including customary cross-default and/or cross-acceleration provisions. As of June 30, 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	9 Months Ended
	Jun. 30, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	11. Derivative Instruments and Hedging Activities During the nine months ended June 30, 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 June 30, 2020, the notional amount we held through these forwards, based upon exchange rates at June 30, 2020, was as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 6,529 Canadian Dollar 2,340 Total $ 8,869 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. For the nine months ended June 30, 2020, we recognized $1.4 million into cost of goods sold on our condensed consolidated statements of earnings (loss). Based on June 30, 2020, valuations and exchange rates, we expect to reclassify gains of approximately $1.8 million into cost of goods sold over the next 12 months. Additionally during the nine months ended June 30, 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 COVID-19 pandemic. As a result, we reclassified $1.3 million in gains from AOCL into selling, general and administration expenses. These contracts expired ratably through June 30, 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 $1.0 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 (loss) were not material for the nine months ended June 30, 2020.

Income Tax

Income Tax	9 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Tax	12. Income Tax The effective tax rates were 9.1% and 24.6%, for the three months ended June 30, 2020 and 2019, respectively. The effective tax rate for the third quarter of the current year was negatively impacted by foreign losses which cannot be tax benefitted. The effective tax rates were 37.2% and 24.5%, for the nine months ended June 30, 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 nine months ended June 30, 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. The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below: Three Months Ended Nine Months Ended June 30, June 30, 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 2.9 3.3 3.9 3.4 Effect of foreign operations (1) 4.6 0.2 (0.5 ) 0.1 Foreign valuation allowances (1) (13.0 ) (0.3 ) 10.2 0.2 Deemed repatriation tax (1) (1.1 ) — 0.4 (1.1 ) Other, net (1) (5.3 ) 0.4 2.2 0.9 Effective tax rate 9.1 % 24.6 % 37.2 % 24.5 % (1) 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. There was not a material impact on our income tax expense for the three or nine months ended June 30, 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	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Business Segments	13. Business Segments Segment data for the three and nine months ended June 30, 2020 and 2019, is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Net sales: Sally Beauty Supply ("SBS") $ 415,468 $ 575,025 $ 1,504,125 $ 1,721,238 Beauty Systems Group ("BSG") 289,819 400,144 1,052,393 1,189,236 Total $ 705,287 $ 975,169 $ 2,556,518 $ 2,910,474 Earnings (loss) before provision for income taxes: Segment operating earnings: SBS $ 3,087 $ 95,763 $ 133,684 $ 272,470 BSG 40,084 61,552 143,557 180,401 Segment operating earnings 43,171 157,315 277,241 452,871 Unallocated expenses 35,924 35,276 126,617 110,416 Restructuring 5,816 1,908 11,541 74 Consolidated operating earnings 1,431 120,131 139,083 342,381 Interest expense 27,298 25,781 70,483 74,092 Earnings (loss) before provision for income taxes $ (25,867 ) $ 94,350 $ 68,600 $ 268,289 Sales between segments, which are eliminated in consolidation, were not material during the three and nine months ended June 30, 2020 and 2019. Disaggregation of net sales by segment Three Months Ended June 30, Nine Months Ended June 30, SBS 2020 2019 2020 2019 Hair color 36.6 % 30.2 % 33.8 % 28.9 % Hair care 16.3 % 20.3 % 19.0 % 20.5 % Styling tools 13.6 % 12.4 % 13.0 % 13.9 % Skin and nail care 13.3 % 15.5 % 13.8 % 14.9 % Salon supplies and accessories 9.1 % 7.1 % 7.5 % 7.2 % Textured hair products 4.7 % 6.6 % 5.1 % 6.5 % Other beauty items 6.4 % 7.9 % 7.8 % 8.1 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended June 30, Nine Months Ended June 30, BSG 2020 2019 2020 2019 Hair color 42.2 % 40.5 % 39.7 % 39.5 % Hair care 32.5 % 36.1 % 34.2 % 34.6 % Skin and nail care 8.2 % 8.1 % 8.2 % 8.2 % Styling tools 6.2 % 3.4 % 6.4 % 3.5 % Other beauty items 7.0 % 6.6 % 3.9 % 6.3 % Promotional items 3.9 % 5.3 % 7.6 % 7.9 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended June 30, Nine Months Ended June 30, SBS 2020 2019 2020 2019 Company-operated stores 79.1 % 96.9 % 90.9 % 96.8 % E-commerce 20.8 % 2.8 % 8.9 % 2.9 % Franchise stores 0.1 % 0.3 % 0.2 % 0.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended June 30, Nine Months Ended June 30, BSG 2020 2019 2020 2019 Company-operated stores 63.9 % 68.8 % 68.2 % 69.4 % Distributor sales consultants 10.8 % 18.3 % 15.5 % 18.2 % E-commerce 17.4 % 4.9 % 8.9 % 4.8 % Franchise stores 7.9 % 8.0 % 7.4 % 7.6 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Parent, Issuers, Guarantor and

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements	9 Months Ended
	Jun. 30, 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 June 30, 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 $ 771,131 $ 67,670 $ — $ 838,811 Trade and other accounts receivable, net — — 33,856 26,447 — 60,303 Due from affiliates — — 2,378,638 — (2,378,638 ) — Inventory — — 608,147 207,485 — 815,632 Other current assets 14,375 206 23,417 10,598 — 48,596 Property and equipment, net 7 — 259,521 51,535 — 311,063 Operating lease assets — — 381,907 132,508 — 514,415 Investment in subsidiaries 1,668,707 4,473,741 361,944 — (6,504,392 ) — Goodwill and other intangible assets, net — — 448,869 138,671 — 587,540 Other assets 1,447 3,701 4,589 11,997 — 21,734 Total assets $ 1,684,536 $ 4,477,658 $ 5,272,019 $ 646,911 $ (8,883,030 ) $ 3,198,094 Liabilities and Stockholders’ Equity (Deficit) Accounts payable $ 15 $ 68 $ 197,442 $ 42,380 $ — $ 239,905 Due to affiliates 1,747,406 554,908 — 76,324 (2,378,638 ) — Accrued liabilities 164 11,567 107,574 28,892 — 148,197 Income taxes payable — 2,162 — (855 ) — 1,307 Long-term debt — 2,240,411 2 854 — 2,241,267 Long-term operating lease liabilities — — 397,477 133,103 — 530,580 Other liabilities 6,441 — 19,930 62 — 26,433 Deferred income tax liabilities, net (357 ) (165 ) 75,853 4,207 — 79,538 Total liabilities 1,753,669 2,808,951 798,278 284,967 (2,378,638 ) 3,267,227 Total stockholders’ equity (deficit) (69,133 ) 1,668,707 4,473,741 361,944 (6,504,392 ) (69,133 ) Total liabilities and stockholders’ equity (deficit) $ 1,684,536 $ 4,477,658 $ 5,272,019 $ 646,911 $ (8,883,030 ) $ 3,198,094 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 (Loss) and Comprehensive Income Three Months Ended June 30, 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 $ — $ — $ 604,881 $ 100,406 $ — $ 705,287 Related party sales — — 236 — (236 ) — Cost of goods sold — — 319,527 64,150 (236 ) 383,441 Gross profit — — 285,590 36,256 — 321,846 Selling, general and administrative expenses 2,763 132 255,841 55,863 — 314,599 Restructuring — — 5,816 — — 5,816 Operating earnings (loss) (2,763 ) (132 ) 23,933 (19,607 ) — 1,431 Interest expense (income) — 27,377 (1 ) (78 ) — 27,298 Earnings (loss) before provision for income taxes (2,763 ) (27,509 ) 23,934 (19,529 ) — (25,867 ) Provision (benefit) for income taxes (709 ) (7,061 ) 7,208 (1,779 ) — (2,341 ) Equity in earnings (loss) of subsidiaries, net of tax (21,472 ) (1,024 ) (17,750 ) — 40,246 — Net earnings (loss) (23,526 ) (21,472 ) (1,024 ) (17,750 ) 40,246 (23,526 ) Other comprehensive income, net of tax — 245 — 4,830 — 5,075 Total comprehensive loss $ (23,526 ) $ (21,227 ) $ (1,024 ) $ (12,920 ) $ 40,246 $ (18,451 ) Condensed Consolidating Sta tement of Earnings and Comprehensive Income Three Months Ended June 30, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 789,534 $ 185,635 $ — $ 975,169 Related party sales — — 545 — (545 ) — Cost of goods sold — — 393,875 99,617 (545 ) 492,947 Gross profit — — 396,204 86,018 — 482,222 Selling, general and administrative expenses 2,564 123 281,520 75,976 — 360,183 Restructuring — — 1,908 — — 1,908 Operating earnings (loss) (2,564 ) (123 ) 112,776 10,042 — 120,131 Interest expense (income) — 25,824 (3 ) (40 ) — 25,781 Earnings (loss) before provision for income taxes (2,564 ) (25,947 ) 112,779 10,082 — 94,350 Provision (benefit) for income taxes (659 ) (6,659 ) 28,193 2,311 23,186 Equity in earnings of subsidiaries, net of tax 73,069 92,357 7,771 — (173,197 ) — Net earnings 71,164 73,069 92,357 7,771 (173,197 ) 71,164 Other comprehensive income, net of tax — 586 — 937 1,523 Total comprehensive income $ 71,164 $ 73,655 $ 92,357 $ 8,708 $ (173,197 ) $ 72,687 Condensed Consolidating State ment of Earnings and Comprehensive Income Nine Months Ended June 30, 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 $ — $ — $ 2,105,368 $ 451,150 $ — $ 2,556,518 Related party sales — — 1,231 — (1,231 ) — Cost of goods sold — — 1,075,180 256,118 (1,231 ) 1,330,067 Gross profit — — 1,031,419 195,032 — 1,226,451 Selling, general and administrative expenses 8,250 467 858,490 208,620 — 1,075,827 Restructuring — — 11,541 — — 11,541 Operating earnings (loss) (8,250 ) (467 ) 161,388 (13,588 ) — 139,083 Interest expense (income) — 70,590 4 (111 ) — 70,483 Earnings (loss) before provision for income taxes (8,250 ) (71,057 ) 161,384 (13,477 ) — 68,600 Provision (benefit) for income taxes (2,117 ) (18,239 ) 41,488 4,411 — 25,543 Equity in earnings (loss) of subsidiaries, net of tax 49,190 102,008 (17,888 ) — (133,310 ) — Net earnings (loss) 43,057 49,190 102,008 (17,888 ) (133,310 ) 43,057 Other comprehensive income (loss), net of tax — 274 — (2,155 ) — (1,881 ) Total comprehensive income (loss) $ 43,057 $ 49,464 $ 102,008 $ (20,043 ) $ (133,310 ) $ 41,176 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,352,348 $ 558,126 $ — $ 2,910,474 Related party sales — — 1,694 (1,694 ) — Cost of goods sold — — 1,181,062 299,854 (1,694 ) 1,479,222 Gross profit — — 1,172,980 258,272 — 1,431,252 Selling, general and administrative expenses 8,457 489 849,140 230,711 — 1,088,797 Restructuring — — 74 — — 74 Operating earnings (loss) (8,457 ) (489 ) 323,766 27,561 — 342,381 Interest expense (income) — 74,248 (5 ) (151 ) — 74,092 Earnings (loss) before provision for income taxes (8,457 ) (74,737 ) 323,771 27,712 — 268,289 Provision (benefit) for income taxes (2,171 ) (19,184 ) 82,671 4,357 65,673 Equity in earnings of subsidiaries, net of tax 208,902 264,455 23,355 — (496,712 ) — Net earnings 202,616 208,902 264,455 23,355 (496,712 ) 202,616 Other comprehensive loss, net of tax — (4,384 ) — (9,656 ) — (14,040 ) Total comprehensive income $ 202,616 $ 204,518 $ 264,455 $ 13,699 $ (496,712 ) $ 188,576 Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 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 $ (16,444 ) $ (56,439 ) $ 313,209 $ 34,058 $ — $ 274,384 Cash Flows from Investing Activities: Payments for property and equipment (5 ) — (80,854 ) (8,881 ) — (89,740 ) Proceeds from sale of property and equipment — — 23 15 38 Acquisitions, net of cash acquired — — (1,691 ) (253 ) — (1,944 ) Due from affiliates — — 499,434 — (499,434 ) — Net cash (used) provided by investing activities (5 ) — 416,912 (9,119 ) (499,434 ) (91,646 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 1,087,500 4 — — 1,087,504 Repayments of long-term debt — (437,388 ) (3 ) — — (437,391 ) Debt issuance costs — (6,257 ) — — — (6,257 ) Repurchases of common stock (61,357 ) — — — — (61,357 ) Proceeds from exercises of stock options 2,722 — — — — 2,722 Due to affiliates 75,084 (587,416 ) — 12,898 499,434 — Net cash provided by financing activities 16,449 56,439 1 12,898 499,434 585,221 Effect of foreign exchange rate changes on cash and cash equivalents — — — (643 ) — (643 ) Net increase in cash and cash equivalents — — 730,122 37,194 — 767,316 Cash and cash equivalents, beginning of period — 10 41,009 30,476 — 71,495 Cash and cash equivalents, end of period $ — $ 10 $ 771,131 $ 67,670 $ — $ 838,811 Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash (used) provided by operating activities $ (3,949 ) $ (63,597 ) $ 270,637 $ 732 $ — $ 203,823 Cash Flows from Investing Activities: Payments for property and equipment (1 ) — (58,607 ) (8,155 ) — (66,763 ) Proceeds from sale of property and equipment — — 12,017 4 — 12,021 Acquisitions, net of cash acquired — — (1,923 ) (840 ) — (2,763 ) Due from affiliates — — (219,921 ) — 219,921 — Net cash used by investing activities (1 ) — (268,434 ) (8,991 ) 219,921 (57,505 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 394,000 4 — — 394,004 Repayments of long-term debt — (561,158 ) (3 ) (1 ) — (561,162 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,787 — — — — 1,787 Due to affiliates 2,163 230,755 — (12,997 ) (219,921 ) — Net cash (used) provided by financing activities 3,950 63,597 1 (12,998 ) (219,921 ) (165,371 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (387 ) — (387 ) Net increase (decrease) in cash and cash equivalents — — 2,204 (21,644 ) — (19,440 ) Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 31,254 $ 26,591 $ — $ 57,855

Restructuring

Restructuring	9 Months Ended
	Jun. 30, 2020
Restructuring And Related Activities [Abstract]
Restructuring	15. Restructuring Restructuring expense for the three and nine months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Project Surge $ 70 $ — $ 1,430 $ — Transformation Plan 5,746 1,908 10,111 74 Total expense $ 5,816 $ 1,908 $ 11,541 $ 74 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 are 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 June 30, 2020 Workforce reductions $ — $ 1,068 $ 1,068 $ — $ — Other — 362 362 — — Total $ — $ 1,430 $ 1,430 $ — $ — Expenses incurred during the nine months ended June 30, 2020, represent costs incurred by SBS of $1.3 million and corporate of $0.1 million. Transformation Plan We previously disclosed a plan to focus 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. In addition, we expanded our plan and announced a reduction in workforce within our field and headquarters. All these together, make up our Transformation Plan. 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 June 30, 2020 Workforce reductions $ 654 $ 5,562 $ 4,660 $ — $ 1,556 Consulting 204 1,426 1,630 — — Other 70 3,123 3,193 — — Total $ 928 $ 10,111 $ 9,483 $ — $ 1,556 Expenses incurred during the nine months ended June 30, 2020, represent costs incurred by SBS of $5.1 million, BSG of $1.8 million and corporate of $3.2 million. Additionally, other expenses in the table above includes a non-cash asset impairment of $1.8 million related to the re-measurement of certain long-lived assets and operating lease assets. These assets had a carrying value of $5.4 million and were adjusted down to their estimated fair values. The fair value measurements for these purposes were based on unobservable inputs (Level 3).

Accounting Changes and Recent_2

Accounting Changes and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Jun. 30, 2020
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Change	Accounting Change In February 2016, the Financial Accounting Standards Board (“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 periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, but all amendments must be adopted at once. The amendm ents 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)	9 Months Ended
	Jun. 30, 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 9,161 Revenue recognized from beginning liability (8,703 ) June 30, 2020 $ 13,324

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 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 June 30, 2020 September 30, 2019 Financial Assets: Foreign exchange contracts Other current assets Level 2 $ 1,367 $ — Interest rate caps Other assets Level 2 308 344 Total assets $ 1,675 $ 344 Other fair value disclosures June 30, 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 $ 1,177,380 $ 1,177,726 $ 885,296 $ 898,814 Term loan B Level 2 685,788 651,498 724,000 709,830 Total long-term debt $ 1,863,168 $ 1,829,224 $ 1,609,296 $ 1,608,644

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) (Tables)	9 Months Ended
	Jun. 30, 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 June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Number of shares repurchased — — 4,702 — Total cost of share repurchased $ — $ — $ 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 (income) before reclassification, net of tax (3,707 ) (131 ) (1,115 ) (4,953 ) Reclassification to net earnings (loss), net of tax — 405 2,667 3,072 Balance at June 30, 2020 $ (117,639 ) $ (2,927 ) $ 1,398 $ (119,168 )

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	9 Months Ended
	Jun. 30, 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 June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Weighted-average basic shares 112,271 120,119 114,413 120,062 Dilutive securities: Stock option and stock award programs — 858 957 866 Weighted-average diluted shares 112,271 120,977 115,370 120,928 Anti-dilutive options excluded from our computation of diluted shares 4,976 5,044 4,887 5,044 Potentially dilutive stock option and stock award programs excluded from our computation of diluted shares 941 — — —

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Summary of Operating and Finance Leases	Our operating and finance leases consisted of the following (in thousands): Balance Sheet Classification June 30, 2020 Assets: Operating lease Operating lease assets $ 514,415 Finance lease Property and equipment, net 2,839 Total lease assets $ 517,254 Liabilities: Current: Operating lease Current operating lease liabilities $ 152,650 Finance lease Current maturities of long-term debt 173 Long-term: Operating lease Long-term operating lease liabilities 377,930 Finance lease Long-term debt 683 Total lease liabilities $ 531,436
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 (Loss) Classification Three Months Ended June 30, 2020 Nine Months Ended June 30, 2020 Operating lease costs (a) Cost of goods sold and selling, general and administrative expenses (b) $ 48,785 $ 143,472 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 74 224 Interest on lease liabilities Interest expense 11 33 Variable lease costs (c) Selling, general and administrative expenses 5,276 34,240 Total lease costs $ 54,146 $ 177,969 (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 June 30, 2020, the approximate future lease payments under our leases are as follows (in thousands): Fiscal Year Operating leases Finance leases Remainder of 2020 $ 45,867 $ 45 2021 161,902 171 2022 122,267 171 2023 86,973 171 2024 58,007 171 Thereafter 101,561 127 Total undiscounted lease payments 576,577 856 Less: imputed interest 45,997 — Present value of lease liabilities $ 530,580 $ 856
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): Nine Months Ended June 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 147,959 Operating cash flows – finance leases 33 Financing cash flows – finance leases 3 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 151,528 Lease assets obtained in exchange for new finance lease liabilities 4 June 30, 2020 Weighted-average remaining lease term (in years): Operating leases 4.9 Finance leases 4.0 Weighted-average discount rate: Operating leases 4.3 % Finance leases 5.0 %

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Jun. 30, 2020
Foreign Currency Forwards
Schedule of notional amount held through foreign currency forwards, based upon exchange rates	At June 30, 2020, the notional amount we held through these forwards, based upon exchange rates at June 30, 2020, was as follows (in thousands): Notional Currency Notional Amount Mexican Peso $ 6,529 Canadian Dollar 2,340 Total $ 8,869

Income Tax (Tables)

Income Tax (Tables)	9 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of the difference between U.S. statutory federal income tax rate and the effective income tax rate	The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below: Three Months Ended Nine Months Ended June 30, June 30, 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 2.9 3.3 3.9 3.4 Effect of foreign operations (1) 4.6 0.2 (0.5 ) 0.1 Foreign valuation allowances (1) (13.0 ) (0.3 ) 10.2 0.2 Deemed repatriation tax (1) (1.1 ) — 0.4 (1.1 ) Other, net (1) (5.3 ) 0.4 2.2 0.9 Effective tax rate 9.1 % 24.6 % 37.2 % 24.5 % (1)

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the three and nine months ended June 30, 2020 and 2019, is as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Net sales: Sally Beauty Supply ("SBS") $ 415,468 $ 575,025 $ 1,504,125 $ 1,721,238 Beauty Systems Group ("BSG") 289,819 400,144 1,052,393 1,189,236 Total $ 705,287 $ 975,169 $ 2,556,518 $ 2,910,474 Earnings (loss) before provision for income taxes: Segment operating earnings: SBS $ 3,087 $ 95,763 $ 133,684 $ 272,470 BSG 40,084 61,552 143,557 180,401 Segment operating earnings 43,171 157,315 277,241 452,871 Unallocated expenses 35,924 35,276 126,617 110,416 Restructuring 5,816 1,908 11,541 74 Consolidated operating earnings 1,431 120,131 139,083 342,381 Interest expense 27,298 25,781 70,483 74,092 Earnings (loss) before provision for income taxes $ (25,867 ) $ 94,350 $ 68,600 $ 268,289
Schedule of disaggregation of net sales by segment	Disaggregation of net sales by segment Three Months Ended June 30, Nine Months Ended June 30, SBS 2020 2019 2020 2019 Hair color 36.6 % 30.2 % 33.8 % 28.9 % Hair care 16.3 % 20.3 % 19.0 % 20.5 % Styling tools 13.6 % 12.4 % 13.0 % 13.9 % Skin and nail care 13.3 % 15.5 % 13.8 % 14.9 % Salon supplies and accessories 9.1 % 7.1 % 7.5 % 7.2 % Textured hair products 4.7 % 6.6 % 5.1 % 6.5 % Other beauty items 6.4 % 7.9 % 7.8 % 8.1 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended June 30, Nine Months Ended June 30, BSG 2020 2019 2020 2019 Hair color 42.2 % 40.5 % 39.7 % 39.5 % Hair care 32.5 % 36.1 % 34.2 % 34.6 % Skin and nail care 8.2 % 8.1 % 8.2 % 8.2 % Styling tools 6.2 % 3.4 % 6.4 % 3.5 % Other beauty items 7.0 % 6.6 % 3.9 % 6.3 % Promotional items 3.9 % 5.3 % 7.6 % 7.9 % Total 100.0 % 100.0 % 100.0 % 100.0 % The following tables disaggregate our segment revenue by sales channels: Three Months Ended June 30, Nine Months Ended June 30, SBS 2020 2019 2020 2019 Company-operated stores 79.1 % 96.9 % 90.9 % 96.8 % E-commerce 20.8 % 2.8 % 8.9 % 2.9 % Franchise stores 0.1 % 0.3 % 0.2 % 0.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % Three Months Ended June 30, Nine Months Ended June 30, BSG 2020 2019 2020 2019 Company-operated stores 63.9 % 68.8 % 68.2 % 69.4 % Distributor sales consultants 10.8 % 18.3 % 15.5 % 18.2 % E-commerce 17.4 % 4.9 % 8.9 % 4.8 % Franchise stores 7.9 % 8.0 % 7.4 % 7.6 % Total 100.0 % 100.0 % 100.0 % 100.0 %

Parent, Issuers, Guarantor an_2

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements (Tables)	9 Months Ended
	Jun. 30, 2020
Guarantor And Non Guarantor Condensed Consolidated Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheet	Condensed Consolidating Balance Sheet June 30, 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 $ 771,131 $ 67,670 $ — $ 838,811 Trade and other accounts receivable, net — — 33,856 26,447 — 60,303 Due from affiliates — — 2,378,638 — (2,378,638 ) — Inventory — — 608,147 207,485 — 815,632 Other current assets 14,375 206 23,417 10,598 — 48,596 Property and equipment, net 7 — 259,521 51,535 — 311,063 Operating lease assets — — 381,907 132,508 — 514,415 Investment in subsidiaries 1,668,707 4,473,741 361,944 — (6,504,392 ) — Goodwill and other intangible assets, net — — 448,869 138,671 — 587,540 Other assets 1,447 3,701 4,589 11,997 — 21,734 Total assets $ 1,684,536 $ 4,477,658 $ 5,272,019 $ 646,911 $ (8,883,030 ) $ 3,198,094 Liabilities and Stockholders’ Equity (Deficit) Accounts payable $ 15 $ 68 $ 197,442 $ 42,380 $ — $ 239,905 Due to affiliates 1,747,406 554,908 — 76,324 (2,378,638 ) — Accrued liabilities 164 11,567 107,574 28,892 — 148,197 Income taxes payable — 2,162 — (855 ) — 1,307 Long-term debt — 2,240,411 2 854 — 2,241,267 Long-term operating lease liabilities — — 397,477 133,103 — 530,580 Other liabilities 6,441 — 19,930 62 — 26,433 Deferred income tax liabilities, net (357 ) (165 ) 75,853 4,207 — 79,538 Total liabilities 1,753,669 2,808,951 798,278 284,967 (2,378,638 ) 3,267,227 Total stockholders’ equity (deficit) (69,133 ) 1,668,707 4,473,741 361,944 (6,504,392 ) (69,133 ) Total liabilities and stockholders’ equity (deficit) $ 1,684,536 $ 4,477,658 $ 5,272,019 $ 646,911 $ (8,883,030 ) $ 3,198,094 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 (Loss) and Comprehensive Income	Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income Three Months Ended June 30, 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 $ — $ — $ 604,881 $ 100,406 $ — $ 705,287 Related party sales — — 236 — (236 ) — Cost of goods sold — — 319,527 64,150 (236 ) 383,441 Gross profit — — 285,590 36,256 — 321,846 Selling, general and administrative expenses 2,763 132 255,841 55,863 — 314,599 Restructuring — — 5,816 — — 5,816 Operating earnings (loss) (2,763 ) (132 ) 23,933 (19,607 ) — 1,431 Interest expense (income) — 27,377 (1 ) (78 ) — 27,298 Earnings (loss) before provision for income taxes (2,763 ) (27,509 ) 23,934 (19,529 ) — (25,867 ) Provision (benefit) for income taxes (709 ) (7,061 ) 7,208 (1,779 ) — (2,341 ) Equity in earnings (loss) of subsidiaries, net of tax (21,472 ) (1,024 ) (17,750 ) — 40,246 — Net earnings (loss) (23,526 ) (21,472 ) (1,024 ) (17,750 ) 40,246 (23,526 ) Other comprehensive income, net of tax — 245 — 4,830 — 5,075 Total comprehensive loss $ (23,526 ) $ (21,227 ) $ (1,024 ) $ (12,920 ) $ 40,246 $ (18,451 ) Condensed Consolidating Sta tement of Earnings and Comprehensive Income Three Months Ended June 30, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 789,534 $ 185,635 $ — $ 975,169 Related party sales — — 545 — (545 ) — Cost of goods sold — — 393,875 99,617 (545 ) 492,947 Gross profit — — 396,204 86,018 — 482,222 Selling, general and administrative expenses 2,564 123 281,520 75,976 — 360,183 Restructuring — — 1,908 — — 1,908 Operating earnings (loss) (2,564 ) (123 ) 112,776 10,042 — 120,131 Interest expense (income) — 25,824 (3 ) (40 ) — 25,781 Earnings (loss) before provision for income taxes (2,564 ) (25,947 ) 112,779 10,082 — 94,350 Provision (benefit) for income taxes (659 ) (6,659 ) 28,193 2,311 23,186 Equity in earnings of subsidiaries, net of tax 73,069 92,357 7,771 — (173,197 ) — Net earnings 71,164 73,069 92,357 7,771 (173,197 ) 71,164 Other comprehensive income, net of tax — 586 — 937 1,523 Total comprehensive income $ 71,164 $ 73,655 $ 92,357 $ 8,708 $ (173,197 ) $ 72,687 Condensed Consolidating State ment of Earnings and Comprehensive Income Nine Months Ended June 30, 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 $ — $ — $ 2,105,368 $ 451,150 $ — $ 2,556,518 Related party sales — — 1,231 — (1,231 ) — Cost of goods sold — — 1,075,180 256,118 (1,231 ) 1,330,067 Gross profit — — 1,031,419 195,032 — 1,226,451 Selling, general and administrative expenses 8,250 467 858,490 208,620 — 1,075,827 Restructuring — — 11,541 — — 11,541 Operating earnings (loss) (8,250 ) (467 ) 161,388 (13,588 ) — 139,083 Interest expense (income) — 70,590 4 (111 ) — 70,483 Earnings (loss) before provision for income taxes (8,250 ) (71,057 ) 161,384 (13,477 ) — 68,600 Provision (benefit) for income taxes (2,117 ) (18,239 ) 41,488 4,411 — 25,543 Equity in earnings (loss) of subsidiaries, net of tax 49,190 102,008 (17,888 ) — (133,310 ) — Net earnings (loss) 43,057 49,190 102,008 (17,888 ) (133,310 ) 43,057 Other comprehensive income (loss), net of tax — 274 — (2,155 ) — (1,881 ) Total comprehensive income (loss) $ 43,057 $ 49,464 $ 102,008 $ (20,043 ) $ (133,310 ) $ 41,176 Condensed Consolidating Statement of Earnings and Comprehensive Income Nine Months Ended June 30, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net sales $ — $ — $ 2,352,348 $ 558,126 $ — $ 2,910,474 Related party sales — — 1,694 (1,694 ) — Cost of goods sold — — 1,181,062 299,854 (1,694 ) 1,479,222 Gross profit — — 1,172,980 258,272 — 1,431,252 Selling, general and administrative expenses 8,457 489 849,140 230,711 — 1,088,797 Restructuring — — 74 — — 74 Operating earnings (loss) (8,457 ) (489 ) 323,766 27,561 — 342,381 Interest expense (income) — 74,248 (5 ) (151 ) — 74,092 Earnings (loss) before provision for income taxes (8,457 ) (74,737 ) 323,771 27,712 — 268,289 Provision (benefit) for income taxes (2,171 ) (19,184 ) 82,671 4,357 65,673 Equity in earnings of subsidiaries, net of tax 208,902 264,455 23,355 — (496,712 ) — Net earnings 202,616 208,902 264,455 23,355 (496,712 ) 202,616 Other comprehensive loss, net of tax — (4,384 ) — (9,656 ) — (14,040 ) Total comprehensive income $ 202,616 $ 204,518 $ 264,455 $ 13,699 $ (496,712 ) $ 188,576
Schedule of Condensed Consolidating Statement of Cash Flows	Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 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 $ (16,444 ) $ (56,439 ) $ 313,209 $ 34,058 $ — $ 274,384 Cash Flows from Investing Activities: Payments for property and equipment (5 ) — (80,854 ) (8,881 ) — (89,740 ) Proceeds from sale of property and equipment — — 23 15 38 Acquisitions, net of cash acquired — — (1,691 ) (253 ) — (1,944 ) Due from affiliates — — 499,434 — (499,434 ) — Net cash (used) provided by investing activities (5 ) — 416,912 (9,119 ) (499,434 ) (91,646 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 1,087,500 4 — — 1,087,504 Repayments of long-term debt — (437,388 ) (3 ) — — (437,391 ) Debt issuance costs — (6,257 ) — — — (6,257 ) Repurchases of common stock (61,357 ) — — — — (61,357 ) Proceeds from exercises of stock options 2,722 — — — — 2,722 Due to affiliates 75,084 (587,416 ) — 12,898 499,434 — Net cash provided by financing activities 16,449 56,439 1 12,898 499,434 585,221 Effect of foreign exchange rate changes on cash and cash equivalents — — — (643 ) — (643 ) Net increase in cash and cash equivalents — — 730,122 37,194 — 767,316 Cash and cash equivalents, beginning of period — 10 41,009 30,476 — 71,495 Cash and cash equivalents, end of period $ — $ 10 $ 771,131 $ 67,670 $ — $ 838,811 Condensed Consolidating Statement of Cash Flows Nine Months Ended June 30, 2019 (In thousands) Parent Sally Holdings LLC and Sally Capital Inc. Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Sally Beauty Holdings, Inc. and Subsidiaries Net cash (used) provided by operating activities $ (3,949 ) $ (63,597 ) $ 270,637 $ 732 $ — $ 203,823 Cash Flows from Investing Activities: Payments for property and equipment (1 ) — (58,607 ) (8,155 ) — (66,763 ) Proceeds from sale of property and equipment — — 12,017 4 — 12,021 Acquisitions, net of cash acquired — — (1,923 ) (840 ) — (2,763 ) Due from affiliates — — (219,921 ) — 219,921 — Net cash used by investing activities (1 ) — (268,434 ) (8,991 ) 219,921 (57,505 ) Cash Flows from Financing Activities: Proceeds from issuance of long-term debt — 394,000 4 — — 394,004 Repayments of long-term debt — (561,158 ) (3 ) (1 ) — (561,162 ) Repurchases of common stock — — — — — — Proceeds from exercises of stock options 1,787 — — — — 1,787 Due to affiliates 2,163 230,755 — (12,997 ) (219,921 ) — Net cash (used) provided by financing activities 3,950 63,597 1 (12,998 ) (219,921 ) (165,371 ) Effect of foreign exchange rate changes on cash and cash equivalents — — — (387 ) — (387 ) Net increase (decrease) in cash and cash equivalents — — 2,204 (21,644 ) — (19,440 ) Cash and cash equivalents, beginning of period — 10 29,050 48,235 — 77,295 Cash and cash equivalents, end of period $ — $ 10 $ 31,254 $ 26,591 $ — $ 57,855

Restructuring (Tables)

Restructuring (Tables)	9 Months Ended
	Jun. 30, 2020
Summary of restructuring expense and gain	Restructuring expense for the three and nine months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 Project Surge $ 70 $ — $ 1,430 $ — Transformation Plan 5,746 1,908 10,111 74 Total expense $ 5,816 $ 1,908 $ 11,541 $ 74
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 June 30, 2020 Workforce reductions $ — $ 1,068 $ 1,068 $ — $ — Other — 362 362 — — Total $ — $ 1,430 $ 1,430 $ — $ —
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 June 30, 2020 Workforce reductions $ 654 $ 5,562 $ 4,660 $ — $ 1,556 Consulting 204 1,426 1,630 — — Other 70 3,123 3,193 — — Total $ 928 $ 10,111 $ 9,483 $ — $ 1,556

Accounting Changes and Recent_3

Accounting Changes and Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Accounting Changes
Operating lease asset	$ 514,415
Operating lease liability	530,580
Accumulated earnings	46,399	$ 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	9 Months Ended
	Jun. 30, 2020USD ($)
Contract With Customer Liability [Abstract]
Beginning balance	$ 12,866
Loyalty points and gift cards issued but not redeemed, net of estimated breakage	9,161
Revenue recognized from beginning liability	(8,703)
Ending balance	$ 13,324

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	$ 1,863,168	$ 1,609,296
Long-term debt, excluding capital leases, Fair Value	1,829,224	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	651,498	709,830
Level 1 | Senior notes
Long-term debt, excluding capital leases
Long-term debt, excluding capital leases, Carrying Value	1,177,380	885,296
Long-term debt, excluding capital leases, Fair Value	1,177,726	898,814
Fair value measurement on recurring basis
Financial Assets:
Total assets	1,675	344
Fair value measurement on recurring basis | Level 2 | Other current assets
Financial Assets:
Foreign exchange contracts	1,367
Fair value measurement on recurring basis | Level 2 | Other assets
Financial Assets:
Interest rate caps	$ 308	$ 344

Stockholders' Equity (Deficit_2

Stockholders' 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

Stockholders' Equity (Deficit_3

Stockholders' Equity (Deficit) - Schedule of Shares Repurchased and Subsequently Retired (Details) shares in Thousands, $ in Thousands	9 Months Ended
	Jun. 30, 2020USD ($)shares
Stockholders Equity Note [Abstract]
Number of shares repurchased | shares	4,702
Total cost of share repurchased | $	$ 61,357

Stockholders' Equity (Deficit_4

Stockholders' Equity (Deficit) - Change in AOCL (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2020USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ (60,323)
Balance	(69,133)
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(3,201)
Other comprehensive loss (income) before reclassification, net of tax	(131)
Reclassification to net earnings (loss), net of tax	405
Balance	(2,927)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(154)
Other comprehensive loss (income) before reclassification, net of tax	(1,115)
Reclassification to net earnings (loss), net of tax	2,667
Balance	1,398
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(113,932)
Other comprehensive loss (income) before reclassification, net of tax	(3,707)
Balance	(117,639)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(117,287)
Other comprehensive loss (income) before reclassification, net of tax	(4,953)
Reclassification to net earnings (loss), net of tax	3,072
Balance	$ (119,168)

Weighted-Average Shares (Detail

Weighted-Average Shares (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share Reconciliation:
Weighted-average basic shares	112,271	120,119	114,413	120,062
Dilutive securities:
Stock option and stock award programs		858	957	866
Weighted-average diluted shares	112,271	120,977	115,370	120,928
Anti-dilutive options excluded from our computation of diluted shares	4,976	5,044	4,887	5,044
Potentially dilutive stock option and stock award programs excluded from our computation of diluted shares	941

Leases - Additional Information

Leases - Additional Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)
Leases [Line Items]
Lease extended term		five years
Operating lease liability	$ 530,580	$ 530,580
Retail Stores
Leases [Line Items]
Operating lease liability	11,600	11,600
COVID-19
Leases [Line Items]
Benefit for rent abatements	$ 8,100	8,100
Selling, General and Administrative Expenses
Leases [Line Items]
Impairment on operating lease asset and lease hold improvements		$ 900
Minimum
Leases [Line Items]
Lease term	5 years	5 years
Maximum
Leases [Line Items]
Lease term	10 years	10 years

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases (Details) $ in Thousands	Jun. 30, 2020USD ($)
Assets:
Operating lease assets	$ 514,415
Finance lease	$ 2,839
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet
Total lease assets	$ 517,254
Current:
Current operating lease liabilities	152,650
Finance lease	$ 173
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtCurrent
Long-term:
Long-term operating lease liabilities	$ 377,930
Finance lease	$ 683
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtNoncurrent
Total lease liabilities	$ 531,436

Leases - Summary of Lease Costs

Leases - Summary of Lease Costs, Net of Immaterial Sublease Income (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Lessee Lease Description [Line Items]
Total lease costs	$ 54,146	$ 177,969
Cost of Goods Sold and Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Operating lease costs	48,785	143,472
Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Amortization of leased assets	74	224
Variable lease costs	5,276	34,240
Interest Expense
Lessee Lease Description [Line Items]
Interest on lease liabilities	$ 11	$ 33

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) $ in Thousands	Jun. 30, 2020USD ($)
Operating leases
Remainder of 2020	$ 45,867
2021	161,902
2022	122,267
2023	86,973
2024	58,007
Thereafter	101,561
Total undiscounted lease payments	576,577
Less: imputed interest	45,997
Present value of lease liabilities	530,580
Finance leases
Remainder of 2020	45
2021	171
2022	171
2023	171
2024	171
Thereafter	127
Total undiscounted lease payments	856
Present value of lease liabilities	$ 856

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	9 Months Ended
	Jun. 30, 2020USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$ 147,959
Operating cash flows – finance leases	33
Financing cash flows – finance leases	3
Supplemental non-cash information on lease liabilities:
Lease assets obtained in exchange for new operating lease liabilities	151,528
Lease assets obtained in exchange for new finance lease liabilities	$ 4
Weighted-average remaining lease term (in years):
Operating leases	4 years 10 months 24 days
Finance leases	4 years
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		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 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
Effect on future cash flows, amount			$ 0
Effect on future cash flows, Description			Due to the uncertainty around COVID-19, our projected future cash flows may differ materially from actual results. Furthermore, we considered potential triggering events and determined there were none during the three months ended June 30, 2020, as our assumptions relative to future cash flows had improved during the quarter, and our market capitalization had increased significantly since March 31, 2020.
Amortization expense related to other intangible assets	$ 2,200,000	$ 2,800,000	$ 6,800,000	$ 8,500,000
Other intangible assets recorded in asset acquisitions			1,400,000
Goodwill, changes in foreign currency exchange rates			$ 100,000

Short-term Borrowings and Lon_2

Short-term Borrowings and Long-term Debt - ABL Facility and Canadian sub-facility (Details) - USD ($)	Apr. 24, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Apr. 15, 2020	Apr. 14, 2020
Debt Instruments
Aggregate principal amount paid down				$ 437,391,000	$ 561,162,000
Gain (loss) on extinguishment of debt				357,000	$ (951,000)
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%
Senior secured second lien notes due 2025
Debt Instruments
Principal amount	$ 300,000,000
Net proceeds from offering	$ 295,500,000
Interest rate	8.75%
Sally Holdings, LLC
Debt Instruments
Revolving credit facility				$ 81,000,000
ABL facility
Debt Instruments
Outstanding borrowing						$ 600,000,000	$ 500,000,000
Debt instrument, maturity date				Jul. 6, 2022
Indebtedness amount						$ 20,000,000
ABL facility | Sally Holdings, LLC
Debt Instruments
Outstanding borrowing				$ 395,500,000

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2020USD ($)instrument	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)instrument	Jun. 30, 2019USD ($)	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0		0
Cost of goods sold	$ 383,441,000	$ 492,947,000	$ 1,330,067,000	$ 1,479,222,000
Foreign Currency Forwards
Derivative Instruments
Derivative instruments, expiration date			Jun. 30, 2020
Notional Amount	8,869,000		$ 8,869,000
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	1,000,000		$ 1,000,000
Reclassification from AOCL | Foreign Currency Forwards
Derivative Instruments
Cost of goods sold			1,400,000
Foreign currency forwards designated as cash flow hedges to be reclassified gains in to cost of goods sold over next 12 months	$ 1,800,000		$ 1,800,000

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	Jun. 30, 2020USD ($)
Foreign Currency Forwards
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 8,869
Mexican Peso
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	6,529
Canadian Dollar
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional Amount	$ 2,340

Income Tax (Details)

Income Tax (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	9.10%	24.60%	37.20%	24.50%

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		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 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	2.90%	3.30%	3.90%	3.40%
Effect of foreign operations	4.60%	0.20%	(0.50%)	0.10%
Foreign valuation allowances	(13.00%)	(0.30%)	10.20%	0.20%
Deemed repatriation tax	(1.10%)		0.40%	(1.10%)
Other, net	(5.30%)	0.40%	2.20%	0.90%
Effective tax rate	9.10%	24.60%	37.20%	24.50%

Business Segments (Details)

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net sales:
Total net sales	$ 705,287	$ 975,169	$ 2,556,518	$ 2,910,474
Segment operating earnings:
Segment operating earnings	1,431	120,131	139,083	342,381
Restructuring	5,816	1,908	11,541	74
Interest expense	27,298	25,781	70,483	74,092
Earnings (loss) before provision for income taxes	(25,867)	94,350	68,600	268,289
Operating segments
Segment operating earnings:
Segment operating earnings	43,171	157,315	277,241	452,871
Corporate
Segment operating earnings:
Unallocated expenses	35,924	35,276	126,617	110,416
Sally Beauty Supply
Net sales:
Total net sales	415,468	575,025	1,504,125	1,721,238
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	3,087	95,763	133,684	272,470
Beauty Systems Group
Net sales:
Total net sales	289,819	400,144	1,052,393	1,189,236
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	$ 40,084	$ 61,552	$ 143,557	$ 180,401

Business Segments - Schedule of

Business Segments - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 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	36.60%	30.20%	33.80%	28.90%
Sally Beauty Supply | Hair care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	16.30%	20.30%	19.00%	20.50%
Sally Beauty Supply | Skin and nail care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	13.30%	15.50%	13.80%	14.90%
Sally Beauty Supply | Styling tools | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	13.60%	12.40%	13.00%	13.90%
Sally Beauty Supply | Salon supplies and accessories | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	9.10%	7.10%	7.50%	7.20%
Sally Beauty Supply | Textured hair products | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	4.70%	6.60%	5.10%	6.50%
Sally Beauty Supply | Other Beauty items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.40%	7.90%	7.80%	8.10%
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	79.10%	96.90%	90.90%	96.80%
Sally Beauty Supply | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	20.80%	2.80%	8.90%	2.90%
Sally Beauty Supply | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	0.10%	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	42.20%	40.50%	39.70%	39.50%
Beauty Systems Group | Hair care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	32.50%	36.10%	34.20%	34.60%
Beauty Systems Group | Skin and nail care | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	8.20%	8.10%	8.20%	8.20%
Beauty Systems Group | Styling tools | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.20%	3.40%	6.40%	3.50%
Beauty Systems Group | Other Beauty items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.00%	6.60%	3.90%	6.30%
Beauty Systems Group | Promotional items | Product Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.90%	5.30%	7.60%	7.90%
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	63.90%	68.80%	68.20%	69.40%
Beauty Systems Group | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	17.40%	4.90%	8.90%	4.80%
Beauty Systems Group | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.90%	8.00%	7.40%	7.60%
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants
Disaggregation Of Revenue [Line Items]
Percentage of net sales	10.80%	18.30%	15.50%	18.20%

Parent, Issuers, Guarantor an_3

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - (Details)	9 Months Ended
	Jun. 30, 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	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets
Cash and cash equivalents	$ 838,811			$ 71,495	$ 57,855			$ 77,295
Trade and other accounts receivable, net	60,303			104,539
Inventory	815,632			952,907
Other current assets	48,596			34,612
Property and equipment, net	311,063			319,628
Operating lease assets	514,415
Goodwill and other intangible assets, net	587,540			592,837
Other assets	21,734			22,428
Total assets	3,198,094			2,098,446
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	239,905			278,688
Accrued liabilities	148,197			169,054
Income taxes payable	1,307			8,336
Long-term debt	2,241,267			1,594,543
Long-term operating lease liabilities	530,580
Other liabilities	26,433			27,757
Deferred income tax liabilities, net	79,538			80,391
Total liabilities	3,267,227			2,158,769
Total stockholders’ equity (deficit)	(69,133)	$ (53,195)	$ 2,199	(60,323)	(70,465)	$ (145,075)	$ (214,731)	(268,556)
Total liabilities and stockholders’ deficit	3,198,094			2,098,446
Parent
Assets
Other current assets	14,375			1,436
Property and equipment, net	7			6
Investment in subsidiaries	1,668,707			1,621,843
Other assets	1,447			1,446
Total assets	1,684,536			1,624,731
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	15			48
Due to affiliates	1,747,406			1,672,322
Accrued liabilities	164			188
Income taxes payable				6,055
Other liabilities	6,441			6,441
Deferred income tax liabilities, net	(357)
Total liabilities	1,753,669			1,685,054
Total stockholders’ equity (deficit)	(69,133)			(60,323)
Total liabilities and stockholders’ deficit	1,684,536			1,624,731
Sally Holdings and Sally Capital
Assets
Cash and cash equivalents	10			10	10			10
Other current assets	206			132
Investment in subsidiaries	4,473,741			4,374,334
Other assets	3,701			3,499
Total assets	4,477,658			4,377,975
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	68
Due to affiliates	554,908			1,142,324
Accrued liabilities	11,567			17,937
Income taxes payable	2,162			2,161
Long-term debt	2,240,411			1,593,710
Deferred income tax liabilities, net	(165)
Total liabilities	2,808,951			2,756,132
Total stockholders’ equity (deficit)	1,668,707			1,621,843
Total liabilities and stockholders’ deficit	4,477,658			4,377,975
Guarantor Subsidiaries
Assets
Cash and cash equivalents	771,131			41,009	31,254			29,050
Trade and other accounts receivable, net	33,856			65,746
Due from affiliates	2,378,638			2,878,072
Inventory	608,147			722,830
Other current assets	23,417			22,480
Property and equipment, net	259,521			258,132
Operating lease assets	381,907
Investment in subsidiaries	361,944			385,629
Goodwill and other intangible assets, net	448,869			452,645
Other assets	4,589			(581)
Total assets	5,272,019			4,825,962
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	197,442			235,940
Accrued liabilities	107,574			121,375
Income taxes payable				1
Long-term debt	2			1
Long-term operating lease liabilities	397,477
Other liabilities	19,930			17,639
Deferred income tax liabilities, net	75,853			76,672
Total liabilities	798,278			451,628
Total stockholders’ equity (deficit)	4,473,741			4,374,334
Total liabilities and stockholders’ deficit	5,272,019			4,825,962
Non-Guarantor Subsidiaries
Assets
Cash and cash equivalents	67,670			30,476	$ 26,591			$ 48,235
Trade and other accounts receivable, net	26,447			38,793
Inventory	207,485			230,077
Other current assets	10,598			10,564
Property and equipment, net	51,535			61,490
Operating lease assets	132,508
Goodwill and other intangible assets, net	138,671			140,192
Other assets	11,997			18,064
Total assets	646,911			529,656
Liabilities and Stockholders’ Equity (Deficit)
Accounts payable	42,380			42,700
Due to affiliates	76,324			63,426
Accrued liabilities	28,892			29,554
Income taxes payable	(855)			119
Long-term debt	854			832
Long-term operating lease liabilities	133,103
Other liabilities	62			3,677
Deferred income tax liabilities, net	4,207			3,719
Total liabilities	284,967			144,027
Total stockholders’ equity (deficit)	361,944			385,629
Total liabilities and stockholders’ deficit	646,911			529,656
Consolidating Eliminations
Assets
Due from affiliates	(2,378,638)			(2,878,072)
Investment in subsidiaries	(6,504,392)			(6,381,806)
Total assets	(8,883,030)			(9,259,878)
Liabilities and Stockholders’ Equity (Deficit)
Due to affiliates	(2,378,638)			(2,878,072)
Total liabilities	(2,378,638)			(2,878,072)
Total stockholders’ equity (deficit)	(6,504,392)			(6,381,806)
Total liabilities and stockholders’ deficit	$ (8,883,030)			$ (9,259,878)

Parent, Issuers, Guarantor an_5

Parent, Issuers, Guarantor and Non-Guarantor Condensed Consolidating Financial Statements - Condensed Consolidating Statement of Earnings (Loss) and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2020	Jun. 30, 2019
Condensed Income Statements Captions [Line Items]
Net sales	$ 705,287			$ 975,169			$ 2,556,518	$ 2,910,474
Cost of goods sold	383,441			492,947			1,330,067	1,479,222
Gross profit	321,846			482,222			1,226,451	1,431,252
Selling, general and administrative expenses	314,599			360,183			1,075,827	1,088,797
Restructuring	5,816			1,908			11,541	74
Operating earnings	1,431			120,131			139,083	342,381
Interest expense (income)	27,298			25,781			70,483	74,092
Earnings (loss) before provision for income taxes	(25,867)			94,350			68,600	268,289
Provision (benefit) for income taxes	(2,341)			23,186			25,543	65,673
Net earnings (loss)	(23,526)	$ 13,368	$ 53,215	71,164	$ 65,725	$ 65,727	43,057	202,616
Other comprehensive income (loss), net of tax	5,075	$ (21,826)	$ 14,870	1,523	$ 1,142	$ (16,705)	(1,881)	(14,040)
Total comprehensive income (loss)	(18,451)			72,687			41,176	188,576
Parent
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	2,763			2,564			8,250	8,457
Operating earnings	(2,763)			(2,564)			(8,250)	(8,457)
Earnings (loss) before provision for income taxes	(2,763)			(2,564)			(8,250)	(8,457)
Provision (benefit) for income taxes	(709)			(659)			(2,117)	(2,171)
Equity in earnings (loss) of subsidiaries, net of tax	(21,472)			73,069			49,190	208,902
Net earnings (loss)	(23,526)			71,164			43,057	202,616
Total comprehensive income (loss)	(23,526)			71,164			43,057	202,616
Sally Holdings and Sally Capital
Condensed Income Statements Captions [Line Items]
Selling, general and administrative expenses	132			123			467	489
Operating earnings	(132)			(123)			(467)	(489)
Interest expense (income)	27,377			25,824			70,590	74,248
Earnings (loss) before provision for income taxes	(27,509)			(25,947)			(71,057)	(74,737)
Provision (benefit) for income taxes	(7,061)			(6,659)			(18,239)	(19,184)
Equity in earnings (loss) of subsidiaries, net of tax	(1,024)			92,357			102,008	264,455
Net earnings (loss)	(21,472)			73,069			49,190	208,902
Other comprehensive income (loss), net of tax	245			586			274	(4,384)
Total comprehensive income (loss)	(21,227)			73,655			49,464	204,518
Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	604,881			789,534			2,105,368	2,352,348
Related party sales	236			545			1,231	1,694
Cost of goods sold	319,527			393,875			1,075,180	1,181,062
Gross profit	285,590			396,204			1,031,419	1,172,980
Selling, general and administrative expenses	255,841			281,520			858,490	849,140
Restructuring	5,816			1,908			11,541	74
Operating earnings	23,933			112,776			161,388	323,766
Interest expense (income)	(1)			(3)			4	(5)
Earnings (loss) before provision for income taxes	23,934			112,779			161,384	323,771
Provision (benefit) for income taxes	7,208			28,193			41,488	82,671
Equity in earnings (loss) of subsidiaries, net of tax	(17,750)			7,771			(17,888)	23,355
Net earnings (loss)	(1,024)			92,357			102,008	264,455
Total comprehensive income (loss)	(1,024)			92,357			102,008	264,455
Non-Guarantor Subsidiaries
Condensed Income Statements Captions [Line Items]
Net sales	100,406			185,635			451,150	558,126
Cost of goods sold	64,150			99,617			256,118	299,854
Gross profit	36,256			86,018			195,032	258,272
Selling, general and administrative expenses	55,863			75,976			208,620	230,711
Operating earnings	(19,607)			10,042			(13,588)	27,561
Interest expense (income)	(78)			(40)			(111)	(151)
Earnings (loss) before provision for income taxes	(19,529)			10,082			(13,477)	27,712
Provision (benefit) for income taxes	(1,779)			2,311			4,411	4,357
Net earnings (loss)	(17,750)			7,771			(17,888)	23,355
Other comprehensive income (loss), net of tax	4,830			937			(2,155)	(9,656)
Total comprehensive income (loss)	(12,920)			8,708			(20,043)	13,699
Consolidating Eliminations
Condensed Income Statements Captions [Line Items]
Related party sales	(236)			(545)			(1,231)	(1,694)
Cost of goods sold	(236)			(545)			(1,231)	(1,694)
Equity in earnings (loss) of subsidiaries, net of tax	40,246			(173,197)			(133,310)	(496,712)
Net earnings (loss)	40,246			(173,197)			(133,310)	(496,712)
Total comprehensive income (loss)	$ 40,246			$ (173,197)			$ (133,310)	$ (496,712)

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	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	$ 274,384	$ 203,823
Cash Flows from Investing Activities:
Payments for property and equipment	(89,740)	(66,763)
Proceeds from sale of property and equipment	38	12,021
Acquisitions, net of cash acquired	(1,944)	(2,763)
Net cash used by investing activities	(91,646)	(57,505)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	1,087,504	394,004
Repayments of long-term debt	(437,391)	(561,162)
Repurchases of common stock	(61,357)
Proceeds from exercises of stock options	2,722	1,787
Net cash provided (used) by financing activities	585,221	(165,371)
Debt issuance costs	(6,257)
Effect of foreign exchange rate changes on cash and cash equivalents	(643)	(387)
Net increase (decrease) in cash and cash equivalents	767,316	(19,440)
Cash and cash equivalents, beginning of period	71,495	77,295
Cash and cash equivalents, end of period	838,811	57,855
Parent
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	(16,444)	(3,949)
Cash Flows from Investing Activities:
Payments for property and equipment	(5)	(1)
Net cash used by investing activities	(5)	(1)
Cash Flows from Financing Activities:
Repurchases of common stock	(61,357)
Proceeds from exercises of stock options	2,722	1,787
Due to affiliates	75,084	2,163
Net cash provided (used) by financing activities	16,449	3,950
Sally Holdings and Sally Capital
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	(56,439)	(63,597)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	1,087,500	394,000
Repayments of long-term debt	(437,388)	(561,158)
Due to affiliates	(587,416)	230,755
Net cash provided (used) by financing activities	56,439	63,597
Debt issuance costs	(6,257)
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	313,209	270,637
Cash Flows from Investing Activities:
Payments for property and equipment	(80,854)	(58,607)
Proceeds from sale of property and equipment	23	12,017
Acquisitions, net of cash acquired	(1,691)	(1,923)
Due from affiliates	499,434	(219,921)
Net cash used by investing activities	416,912	(268,434)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	4	4
Repayments of long-term debt	(3)	(3)
Net cash provided (used) by financing activities	1	1
Net increase (decrease) in cash and cash equivalents	730,122	2,204
Cash and cash equivalents, beginning of period	41,009	29,050
Cash and cash equivalents, end of period	771,131	31,254
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements Captions [Line Items]
Net cash (used) provided by operating activities	34,058	732
Cash Flows from Investing Activities:
Payments for property and equipment	(8,881)	(8,155)
Proceeds from sale of property and equipment	15	4
Acquisitions, net of cash acquired	(253)	(840)
Net cash used by investing activities	(9,119)	(8,991)
Cash Flows from Financing Activities:
Repayments of long-term debt		(1)
Due to affiliates	12,898	(12,997)
Net cash provided (used) by financing activities	12,898	(12,998)
Effect of foreign exchange rate changes on cash and cash equivalents	(643)	(387)
Net increase (decrease) in cash and cash equivalents	37,194	(21,644)
Cash and cash equivalents, beginning of period	30,476	48,235
Cash and cash equivalents, end of period	67,670	26,591
Consolidating Eliminations
Cash Flows from Investing Activities:
Due from affiliates	(499,434)	219,921
Net cash used by investing activities	(499,434)	219,921
Cash Flows from Financing Activities:
Due to affiliates	499,434	(219,921)
Net cash provided (used) by financing activities	$ 499,434	$ (219,921)

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Expense and Gain (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 5,816	$ 1,908	$ 11,541	$ 74
Total expense	5,816	1,908	11,541	74
Project Surge
Restructuring Cost And Reserve [Line Items]
Restructuring expense	70		1,430
Restructuring charges			1,430
Transformation Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 5,746	$ 1,908	$ 10,111	$ 74

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Changes in restructuring reserve
Restructuring charges	$ 5,816	$ 1,908	$ 11,541	$ 74
Project Surge
Changes in restructuring reserve
Restructuring charges			1,430
Expenses Paid or Otherwise Settled			1,430
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	5,746	$ 1,908	10,111	$ 74
Expenses Paid or Otherwise Settled			9,483
Restructuring reserve, ending balance	1,556		1,556
Impairment of long-lived assets			1,800
Impairment on operating lease asset			1,800
Carrying value assets adjusted down to estimated fair value			5,400
Transformation Plan | Corporate
Changes in restructuring reserve
Restructuring charges			3,200
Transformation Plan | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges			5,100
Transformation Plan | Beauty Systems Group
Changes in restructuring reserve
Restructuring charges			1,800
Workforce reductions | Project Surge
Changes in restructuring reserve
Restructuring charges			1,068
Expenses Paid or Otherwise Settled			1,068
Workforce reductions | Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance			654
Restructuring charges			5,562
Expenses Paid or Otherwise Settled			4,660
Restructuring reserve, ending balance	$ 1,556		1,556
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			3,123
Expenses Paid or Otherwise Settled			3,193
Consulting | Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance			204
Restructuring charges			1,426
Expenses Paid or Otherwise Settled			$ 1,630