Sally Beauty (SBH) 10-K 19 Nov 21 2021 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2021	Nov. 12, 2021	Mar. 31, 2021
Cover [Abstract]
Entity Registrant Name	SALLY BEAUTY HOLDINGS, INC.
Entity Central Index Key	0001368458
Document Type	10-K
Document Period End Date	Sep. 30, 2021
Trading Symbol	SBH
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Public Float			$ 2,273,796,000
Entity Common Stock, Shares Outstanding		113,046,139
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock, par value $.01 per share
Entity Interactive Data Current	Yes
Entity File Number	1-33145
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2257936
Entity Address, Address Line One	3001 Colorado Boulevard
Entity Address, City or Town	Denton
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76210
City Area Code	940
Local Phone Number	898-7500
Document Annual Report	true
Document Transition Report	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	true
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement relating to the registrant’s 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 400,959	$ 514,151
Trade accounts receivable, net	32,623	35,590
Accounts receivable, other	33,958	20,839
Inventory	871,349	814,503
Other current assets	44,686	48,014
Total current assets	1,383,575	1,433,097
Property and equipment, net	307,377	315,029
Operating lease assets	537,673	525,634
Goodwill	541,209	540,038
Intangible assets, excluding goodwill, net	55,532	58,283
Other assets	21,766	23,066
Total assets	2,847,132	2,895,147
Current liabilities:
Current maturities of long-term debt	194	180
Accounts payable	291,632	236,333
Accrued liabilities	206,155	170,665
Current operating lease liabilities	156,234	153,267
Income taxes payable	10,666	2,917
Total current liabilities	664,881	563,362
Long-term debt	1,382,530	1,796,897
Long-term operating lease liabilities	404,147	394,375
Other liabilities	29,056	32,976
Deferred income tax liabilities, net	85,777	92,094
Total liabilities	2,566,391	2,879,704
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 500,000 shares; 113,138 and 116,986 shares issued and 112,913 and 116,725 shares outstanding at September 30, 2021 and 2020, respectively	1,129	1,124
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued
Additional paid-in capital	17,286	1,913
Accumulated earnings	356,967	117,109
Accumulated other comprehensive loss, net of tax	(94,641)	(104,703)
Total stockholders’ equity	280,741	15,443
Total liabilities and stockholders’ equity	$ 2,847,132	$ 2,895,147

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Sep. 30, 2020
Statement Of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	500,000,000	500,000,000
Common stock, shares issued	113,138,000	116,986,000
Common stock, shares outstanding	112,913,000	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

Consolidated Statements of Earn

Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net sales	$ 3,874,997	$ 3,514,330	$ 3,876,411
Cost of goods sold	1,921,663	1,798,736	1,965,869
Gross profit	1,953,334	1,715,594	1,910,542
Selling, general and administrative expenses	1,530,280	1,442,809	1,452,751
Restructuring	4,611	14,025	(682)
Operating earnings	418,443	258,760	458,473
Interest expense	93,509	98,793	96,309
Earnings before provision for income taxes	324,934	159,967	362,164
Provision for income taxes	85,076	46,722	90,541
Net earnings	$ 239,858	$ 113,245	$ 271,623
Earnings per share:
Basic	$ 2.13	$ 0.99	$ 2.27
Diluted	$ 2.10	$ 0.99	$ 2.26
Weighted average shares:
Basic	112,653	113,881	119,636
Diluted	114,212	114,680	120,283

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net earnings	$ 239,858	$ 113,245	$ 271,623
Other comprehensive income (loss):
Foreign currency translation adjustments	9,957	11,821	(22,576)
Interest rate caps, net of tax	918	198	(4,566)
Foreign exchange contracts, net of tax	(813)	565	(154)
Other comprehensive income (loss), net of tax	10,062	12,584	(27,296)
Total comprehensive income	$ 249,920	$ 125,829	$ 244,327

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net earnings	$ 239,858	$ 113,245	$ 271,623
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	102,201	106,779	107,658
Share-based compensation expense	11,656	8,426	9,180
Amortization of deferred financing costs	4,212	4,118	3,786
Net loss/(gain) on disposal and impairment of assets	290	3,562	(7,544)
Net loss on extinguishment of debt	4,260	38	951
Deferred income taxes	(7,336)	13,691	5,532
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable	2,923	10,031	4,399
Accounts receivable, other	(13,972)	41,463	(20,432)
Inventory	(52,277)	149,845	(20,272)
Other current assets	976	(15,654)	7,418
Other assets	4,360	(2,007)	(3,225)
Accounts payable and accrued liabilities	79,851	(26,876)	(42,719)
Income taxes payable	8,041	(5,489)	6,144
Operating lease assets and liabilities	730	10,339
Other liabilities	(3,913)	15,378	(2,084)
Net cash provided by operating activities	381,860	426,889	320,415
Cash Flows from Investing Activities:
Payments for property and equipment	(73,904)	(110,858)	(107,755)
Proceeds from sales of property and equipment	235	53	15,312
Acquisitions, net of cash acquired	(2,350)	(12,970)	(3,424)
Net cash used by investing activities	(76,019)	(123,775)	(95,867)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	22	1,087,504	593,504
Repayments of long-term debt	(422,258)	(882,921)	(777,538)
Debt issuance costs	(1,300)	(6,257)
Payments for common stock repurchased		(61,357)	(47,434)
Proceeds from exercises of stock options	3,568	2,792	2,160
Net cash (used) provided by financing activities	(419,968)	139,761	(229,308)
Effect of foreign exchange rate changes on cash and cash equivalents	935	(219)	(1,040)
Net (decrease) increase in cash and cash equivalents	(113,192)	442,656	(5,800)
Cash and cash equivalents, beginning of period	514,151	71,495	77,295
Cash and cash equivalents, end of period	400,959	514,151	71,495
Supplemental Cash Flow Information:
Interest paid	88,982	83,123	95,171
Income taxes paid	79,765	49,869	83,783
Capital expenditures incurred but not paid	$ 19,932	$ 9,772	$ 26,233

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (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 Income (Loss)	Accumulated Other Comprehensive Income (Loss)Cumulative 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	271,623						271,623
Other comprehensive income (loss), net of tax	(27,296)								(27,296)
Repurchases of common stock	$ (47,434)		$ (36)		$ (11,336)		(36,062)
Repurchases of common stock (in shares)	(3,562)		(3,562)
Share-based compensation	$ 9,180		$ 2		9,178
Share-based compensation (in shares)			209
Stock issued for equity awards	2,160		$ 2		2,158
Stock issued for equity awards (in shares)			152
Balance at Sep. 30, 2019	(60,323)	$ 76	$ 1,167				55,797	$ 76	(117,287)
Balance (in shares) at Sep. 30, 2019			116,725
Increase (Decrease) in Stockholders' Equity
Net earnings	113,245						113,245
Other comprehensive income (loss), net of tax	12,584								12,584
Repurchases of common stock	$ (61,357)		$ (46)		(9,302)		(52,009)
Repurchases of common stock (in shares)	(4,702)		(4,702)
Share-based compensation	$ 8,426		$ 1		8,425
Share-based compensation (in shares)			159
Stock issued for equity awards	2,792		$ 2		2,790
Stock issued for equity awards (in shares)			223
Balance at Sep. 30, 2020	$ 15,443		$ 1,124		1,913		117,109		(104,703)
Balance (in shares) at Sep. 30, 2020	116,725		112,405
Accounting Standards Update [Extensible List]		ASU 16-02		ASU 16-02		ASU 16-02		ASU 16-02		ASU 16-02
Increase (Decrease) in Stockholders' Equity
Net earnings	$ 239,858						239,858
Other comprehensive income (loss), net of tax	10,062								10,062
Share-based compensation	11,656				11,656
Stock issued for equity awards	3,722		$ 5		3,717
Stock issued for equity awards (in shares)			508
Balance at Sep. 30, 2021	$ 280,741		$ 1,129		$ 17,286		$ 356,967		$ (94,641)
Balance (in shares) at Sep. 30, 2021	112,913		112,913

Basis of Presentation

Basis of Presentation	12 Months Ended
	Sep. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. The consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant intercompany accounts and transactions have been eliminated in consolidation.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Significant Accounting Policies	2. The preparation of financial statements in conformity with GAAP requires us to interpret and apply accounting standards and to develop and follow accounting policies consistent with such standards. The following is a summary of the significant accounting policies used in preparing our consolidated financial statements. Use of Estimates In accordance with GAAP, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities in the consolidated financial statements. Actual results may differ from these estimates in amounts that may be material to our consolidated financial statements. Cash and Cash Equivalents Cash represents currency on hand, debit and credit card receivable and third-party online payment systems transactions, while cash equivalents consist of highly liquid investments which have an original maturity of three months or less. Trade Accounts Receivable and Accounts Receivable, Other Trade accounts receivable consist of credit extended directly to certain customers who meet our credit requirements in the ordinary course of business and are stated at their carrying values, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is regularly reviewed on the basis of our historical collection data and current customer information. Customer account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. At September 30, 2021 and 2020, our allowance for doubtful accounts was $1.1 million and $1.9 million, respectively. Other accounts receivable consist primarily of amounts due from vendors under various contractual agreements and include volume rebates and other promotional considerations. Inventory and Cost of Goods Sold Effective August 1, 2020, we changed how we value our inventory. See Note 3 for more information related to the change in our costing method. At September 30, 2020, inventory is stated at the lower of weighted average cost or net realizable value. Inventory is stated at the lower of weighted average cost or net realizable value. Inventory cost reflects actual product costs, the cost of transportation to our distribution centers and certain shipping and handling costs, such as freight from the distribution centers to the stores and handling costs incurred at the distribution centers. When assessing the net realizable value of inventory, we consider several factors including estimates of future demand for our products, historical turn-over rates, the age and sales history of the inventory, and historic and anticipated changes in stock keeping units. Physical inventory counts are performed at substantially all stores and significant distribution centers at least annually. Upon completion of physical inventory counts, our consolidated financial statements are adjusted to reflect actual quantities on hand. Between physical counts, we estimate inventory shrinkage based on our historical experience. We have policies and processes in place that are intended to minimize inventory shrinkage. Cost of goods sold includes actual product costs, the cost of transportation to our distribution centers, operating cost associated with our distribution centers (including employee compensation expense, depreciation and amortization, rent and other occupancy-related expenses), vendor rebates and allowances, inventory shrinkage and certain shipping and handling costs, such as freight from the distribution centers to the stores. All other shipping and handling costs are included in selling, general and administrative expenses when incurred. We deem cash consideration received from a supplier to be a reduction of the cost of inventory purchased, unless it is in exchange for an asset or service or a reimbursement of a specific, incremental, identifiable cost incurred by us in selling the vendor’s products. The majority of cash consideration we receive is considered to be a reduction of inventory and a subsequent reduction in cost of goods sold as the related products are sold. Lease Accounting 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 typically do not assume renewals unless 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 fiscal year 2020, we impaired approximately $1.9 million, respectively in operating lease assets and leasehold improvements, primarily as a result of the impact of COVID-19, within selling, general and administrative expenses. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated or amortized over the lesser of the estimated useful lives of the assets or the term of the related lease, including renewals considered reasonably assured. Expenditures for maintenance and repairs are included in selling, general and administrative expenses when incurred, while expenditures for major renewals and improvements that substantially extend the useful life of an asset are capitalized. The following table summarizes our property and equipment balances and their estimated useful lives (dollars in thousands): Life September 30, (in years) 2021 2020 Land N/A $ 10,119 $ 10,120 Buildings and building improvements 5 – 57,049 54,521 Leasehold improvements 2 – 10 326,595 304,404 Furniture, fixtures and equipment 2 – 10 681,017 640,693 Total property and equipment, gross 1,074,780 1,009,738 Accumulated depreciation and amortization (767,403 ) (694,709 ) Total property and equipment, net $ 307,377 $ 315,029 Depreciation expense for the fiscal years 2021, 2020 and 2019 was $93.2 million, $95.5 million and $96.1 million, respectively, and is included in selling, general and administrative expenses in our consolidated statements of earnings. Valuation of Long-Lived Assets and Definite-lived Intangible Assets Long-lived assets and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The recoverability of long-lived assets and intangible assets subject to amortization is assessed by comparing the net carrying amount of each asset to the total estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. Goodwill and Indefinite-lived Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. G st Components within the same operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of September 30, 2021 and 2020, our reporting units consisted of Sally Beauty Supply (“SBS”) and Beauty Systems Group (“BSG”). We assign goodwill to the reporting unit which consolidates the acquisition. When assessing goodwill for impairment, we may perform a qualitative assessment which evaluates macro-economic conditions, current and projected cash flows, and other events or changes in circumstances to determine if a quantitative assessment is necessary. For fiscal year 2021, we completed a qualitative assessment and determined that while COVID-19 had a macro-economic impact, there were no material impacts to the reporting units to require a quantitative assessment. We have not recorded any impairment charges related to goodwill in the current or prior fiscal years presented. Indefinite-lived Intangible Assets Our intangible assets with indefinite lives consist of trade names acquired in business combinations st whenever events or changes in circumstances indicate the asset’s carrying amount may be less than its recoverable amount, to determine whether or not it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. When assessing intangible assets with indefinite lives for impairment, we compare the fair value of each asset against its carrying value. Fair value is based on the relief-from-royalty method. Based Self-Insurance Programs We self-insure the risks related to workers’ compensation, general and auto liability, property and certain employee-related healthcare benefits. We have obtained third-party excess insurance coverage to limit our exposure per occurrence and aggregate cash outlay. We record an estimated liability for the ultimate cost of claims incurred and unpaid as of the balance sheet date, which includes claims filed and estimated losses incurred but not yet reported. We estimate the ultimate cost based on an analysis of our historical data and actuarial estimates. These estimates are reviewed on a regular basis to ensure the recorded liability is adequate. The current and long-term portions of these liabilities are recorded at their present value and included in accrued liabilities and other liabilities in our consolidated balance sheets, respectively. Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data. Additionally, we have assessed all revenue streams for principal versus agent considerations and have concluded we are the principal for all transactions. See Note 17 for additional information regarding the disaggregation of our revenue. Merchandise Revenues The majority of our revenue comes from the sale of products in our company-operated stores. These sales generally have one single performance obligation and the revenue is recognized at the point of sale. However, discounts and incentives issued at the point of sale to entice a customer to a future purchase are treated as a separate performance obligation. As such, we allocate a portion of the revenue generated from the point of sale to each of the additional performance obligations separately using explicitly stated amounts or our best estimate using historical data. We also sell merchandise on our online platforms, to our franchisees and by using distributor sales consultants. These sales generally have one single performance obligation and revenue is recognized upon the shipment of the merchandise. Any shipping and handling fees charged to the customer are recognized as revenue, while any shipping and handling costs to get the merchandise shipped is recognized in cost of goods sold. We extend credit to certain customers, primarily salon professionals, which generally have 30 day payment terms. Based on the nature of theses receivables, no significant financing component exists. Gift Cards The revenue from the sale of our gift cards is recognized at the time the gift card is used to purchase merchandise, which is generally within one year from the date of purchase. Our gift cards do not carry expiration dates or impose post-sale fees. Based on historical experience, a certain amount of our gift cards will not be redeemed, also referred to as “gift card breakage.” We recognize revenue related to gift card breakage within revenue in our consolidated statements of earnings over time proportionately to historical redemption patterns. The gift cards are issued and represent liabilities of either of our operating entities, Sally Beauty Supply LLC or Beauty Systems Group LLC, which are both limited liability companies formed in the state of Virginia. Private Label Rewards Credit Card In September 2019, we signed a multi-year agreement with a third-party bank (the “Bank”) to launch a private label rewards credit card. Under the agreement, the Bank will manage and extend credit to our SBS and BSG customers and we will provide licensing to our brand, marketing services and facilitate credit applications. The Bank will be the sole owner of the private label rewards credit card accounts and takes on the risk of default by the private label rewards card holders. In connection with signing the agreement, we received a refundable payment from the Bank that we recorded as deferred revenue within other liabilities on our consolidated balance sheets and will recognize on a straight-line basis over the initial term of the agreement into net sales in our consolidated statements of earnings. Pursuant to the agreement, the Bank will reimburse us for certain expenses we incur for the launch and marketing of the Program. Amounts reimbursed are recognized in net sales in our consolidated statements of earnings. In addition, we can earn other amounts from the Bank, including incentive payments for achieving performance targets and the activation of credit cards. During the fiscal year ended September 30, 2020, we commenced operations and started to roll out our first SBS and BSG branded credit cards. Customer Loyalty Rewards Our Sally Beauty Rewards Loyalty Program in the U.S. and Canada, enables customers to earn points based on their status for every dollar spent on merchandise purchased in our SBS stores and through our sallybeauty.com sallybeauty.com The following table shows the amount of contract liabilities on our consolidated balance sheets as of September 30, 2021 and 2020 (in thousands): September 30, Contracts Balance Sheet Classification 2021 2020 Gift cards Accrued liabilities $ 5,299 $ 5,066 Rewards loyalty program Accrued liabilities 11,445 8,881 Total liability $ 16,744 $ 13,947 Changes to our contract liabilities for fiscal year 2021 were as follows (in thousands): September 30, 2020 $ 13,947 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 15,226 Revenue recognized from beginning liability (12,429 ) September 30, 2021 $ 16,744 Advertising Costs Advertising costs relate mainly to print advertisements, digital marketing, trade shows and product education for salon professionals. Advertising costs incurred in connection with print advertisements are expensed the first time the advertisement is run. Other advertising costs are expensed when incurred. Advertising costs were $70.9 million, $72.7 million and $73.3 million for the fiscal years 2021, 2020 and 2019, respectively, and are included in selling, general and administrative expenses in our consolidated statements of earnings. Share-based Compensation We measure the cost of services received from our employees and directors in exchange for an award of equity instruments based on the fair value of the award on the date of grant which are expensed ratably over the vesting period, except for awards issued to retirement eligible participants, which are expensed on an accelerated basis. We recognize the impact of forfeitures as they occur. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of earnings. Income Taxes We recognize deferred income taxes for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are anticipated to be recovered or settled. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of earnings in the period of enactment. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets to the amount expected to be realized unless it is more-likely-than-not that such assets will be realized in full. The estimated tax benefit of an uncertain tax position is recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax position will withstand challenge, if any, from applicable taxing authorities. Foreign Currency The functional currency of each of our foreign operations is generally the respective local currency. Balance sheet accounts are translated into U.S. dollars (our reporting currency) at the rates of exchange in effect at the balance sheet date, while the results of operations and cash flows are generally translated using average exchange rates for the periods presented. Individually material transactions, if any, are translated using the actual rate of exchange on the transaction date. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in our consolidated balance sheets. Foreign currency transaction gains or losses, including changes in the fair value (i.e., marked-to-market adjustments) of certain foreign exchange contracts we hold, are included in selling, general and administrative expenses in our consolidated statements of earnings when incurred and were not significant in any of the periods presented in the accompanying consolidated financial statements.

Accounting Changes and Recent A

Accounting Changes and Recent Accounting Pronouncements	12 Months Ended
	Sep. 30, 2021
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes and Recent Accounting Pronouncements	3. Accounting Changes and Accounting Changes In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02 which requires most leases to be reported on the balance sheet as a right-of-use asset and a lease liability. On October 1, 2019, we adopted ASU No. 2016-02 using a modified retrospective transition method without restating comparative periods. We have elected the package of practical expedients permitted within the transition guidance under the new standard relating to the identification, classification and initial direct costs of leases commencing before the effective date of Topic 842. In addition, we have elected to not recognize a right-of-use asset or lease obligation for short-term leases with an initial term of 12 months or less. 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 $0.1 million adjustment to accumulated earnings resulting from the impairment of certain operating lease assets as well certain deferred tax balances that were written off as a result of the adoption of the new standard. The impact on our consolidated results of operations or consolidated cash flows was not material. See Note 8 for additional information in connection with ASU No. 2016-02. Effective August 1, 2020, we changed our method of accounting for inventory located in the U.S. and Canada at both our distribution centers and store fronts. Prior to August 2020, we valued inventory at the lower of cost or net realizable value on a FIFO basis. Effective August 1, 2020, all company-wide inventories have been valued at the lower of cost or net realizable value using the weighted average cost method. These changes were made in connection with the implementation of a new perpetual inventory system, which provides us with better information to manage inventory. We believe the weighted average cost method is preferable to the FIFO cost method because it results in greater precision in the determination of cost of goods sold and inventories at the SKU level and results in a consistent inventory valuation method for all of the Company’s inventories. We recorded the cumulative effect of this change in accounting principle as of August 1, 2020. The effects of this change in accounting principle as of August 1, 2020 were not material to our consolidated financial statements. Prior to implementation of the new perpetual inventory system, we were not able to determine the impact of the change to the weighted average cost method. Therefore, we did not retroactively apply the change to prior periods. Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes Income Taxes

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements Our financial instruments consist of cash equivalents, trade and other accounts receivable, accounts payable, derivative instruments, including foreign exchange contracts and interest rate caps, and debt. The carrying amounts of cash equivalents, trade and other accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these financial instruments. We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, Fair Value Measurement Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability; or inputs that are derived principally from or corroborated by observable market data; and Level 3 - Unobservable inputs for the asset or liability. Fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows (in thousands): As of September 30, Classification Pricing Category 2021 2020 Financial Assets Cash equivalents Cash and cash equivalents Level 1 $ — $ 194,612 Interest rate caps Other assets Level 2 35 27 Total assets $ 35 $ 194,639 Financial Liabilities None Cash equivalents, at September 30, 2021, consist of highly liquid investments which mature daily and are valued using unadjusted quoted market prices for such securities. The fair value for interest rate caps were measured using widely accepted valuation techniques, such as discounted cash flow analyses, and observable inputs, such as market interest rates. Other fair value disclosures Carrying amounts and the related estimated fair value of our long-term debt, excluding capital lease obligations, are as follows: As of September 30, 2021 2020 Pricing Category Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 979,961 1,019,635 $ 1,177,380 $ 1,217,707 Other long-term debt Level 2 413,000 411,451 635,788 619,397 Total debt $ 1,392,961 $ 1,431,086 $ 1,813,168 $ 1,837,104 The fair value of the senior notes was measured using unadjusted quoted market prices. The fair value of other long-term debt was measured using quoted market prices for similar debt securities in active markets or widely accepted valuation techniques, such as discounted cash flow analyses, using observable inputs, such as market interest rates.

Accumulated Stockholders' Equit

Accumulated Stockholders' Equity	12 Months Ended
	Sep. 30, 2021
Stockholders Equity Note [Abstract]
Accumulated Stockholders' Equity	5. Accumulated Stockholders’ Equity Share Repurchases In August 2017, our Board of Directors (the “Board”) approved a share repurchase program authorizing us to repurchase up to $1.0 billion of our common stock over an approximate four-year Information related to our shares repurchased and subsequently retired were as follows (in thousands): Fiscal Year Ended September 30, 2021 2020 2019 Number of shares repurchased — 4,702 3,562 Total cost of share repurchased $ — $ 61,357 $ 46,621 The amounts above do not include approximately 71,000, 159,000 and 209,000 shares surrendered by grantees to satisfy personal income tax withholdings obligations upon vesting of equity-based awards valued at approximately $1.0 million, $0.3 million and $0.8 million during the fiscal years 2021, 2020 and 2019, respectively. We reduced common stock and additional paid-in capital, in the aggregate, by these amounts. However, as required by GAAP, to the extent share repurchase amounts exceeded the balance of additional paid-in capital prior to such repurchases, we recorded the excess in accumulated stockholders’ equity on our consolidated balance sheets. We funded these share repurchases with cash from operations and borrowings under the ABL facility, as appropriate. 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 income (loss) before reclassifications, net of tax 11,821 (411 ) (531 ) 10,879 Reclassification to net earnings, net of tax — 609 1,096 1,705 Balance at September 30, 2020 (102,111 ) (3,003 ) 411 (104,703 ) Other comprehensive income (loss) before reclassifications, net of tax 9,957 (282 ) (1,070 ) 8,605 Reclassification to net earnings, net of tax — 1,200 257 1,457 Balance at September 30, 2021 $ (92,154 ) $ (2,085 ) $ (402 ) $ (94,641 ) The tax impact for the changes in other comprehensive loss and the reclassifications to net earnings was not material.

Weighted-Average Shares

Weighted-Average Shares	12 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Weighted-Average Shares	6. Weighted Average Shares The following table sets forth the computations of basic and diluted earnings per share (in thousands): Fiscal Year Ended September 30, 2021 2020 2019 Weighted-average basic shares 112,653 113,881 119,636 Dilutive securities: Stock option and stock award programs 1,559 799 647 Weighted-average diluted shares 114,212 114,680 120,283 At September 30, 2021, 2020 and 2019, options to purchase approximately 3.9 million, 4.7 million and 4.7 million shares, respectively, of our common stock were outstanding but not included in the computation of diluted earnings per share, because these options were anti-dilutive.

Share-Based Payments

Share-Based Payments	12 Months Ended
	Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Payments	7. Our Sally Beauty Holdings, Inc. 2019 Omnibus Incentive Plan (the "Omnibus Plan") allows us to grant awards to its employees up to 8.0 million shares of our common stock, plus an additional number of shares based on the number of shares outstanding as of the beginning of the current plan that have subsequently been terminated, expired unexercised, cash-settled, cancelled, forfeited or lapsed for any reason. Currently, we have awarded grants to employees and non-employee directors under the terms of the Omnibus Plan. The following table presents total compensation cost for all share-based compensation arrangements, and the related income tax benefits recognized in our consolidated statement of earnings (in thousands): Fiscal Year Ended September 30, 2021 2020 2019 Share-based compensation expense $ 11,656 $ 8,426 $ 9,180 Income tax benefit related to share-based compensation expense $ 2,834 $ 2,059 $ 2,357 The Omnibus Plan award types are as follows: Performance-based awards: Our performance awards vest over three years three-year For each performance award, a grantee may earn from 0% 200% Market-based awards: In fiscal year 2021, we issued market-based awards that vest over three years and are dependent on the level of achievement of relative total shareholder return (“rTSR”) against a group of peer companies measured over a three-year Stock options: Stock option awards are valued using the Black-Scholes option pricing model to estimate the fair value of each stock option award on the date of grant and expense ratably over the vesting period, generally three years. Stock options have a ten year life. Restricted stock: Restricted stock awards (“RSA”) and restricted stock units (“RSU”) are valued using the closing market price of our common stock on the date of grant. Expense is recognized ratably over the vesting period, generally three years for RSAs and RSUs issued to employees and one year for RSUs issued to our independent directors. An RSA award is an award of our shares that have full voting rights and dividend rights, but are restricted with regard to sale or transfer. These restrictions lapse over the vesting period. RSUs awarded to our independent directors may elect, upon receipt of such award, to defer until a later date delivery of the shares of our common stock that would otherwise be issued on the vesting date. RSUs granted to independent directors prior to the fiscal year 2012, are generally retained by the Company as deferred stock units that are not distributed until six months after the independent director’s service as a director terminates. Performance-Based Awards The following table presents a summary of the activity for our performance awards assuming 100% payout: Performance Awards Number of Shares (in Weighted Average Fair Value Per Share Unvested at September 30, 2020 542 $ 17.06 Granted 142 15.33 Vested — — Forfeited (382 ) 17.16 Unvested at September 30, 2021 302 $ 16.59 As of September 30, 2021, approximately $1.2 million of total unrecognized compensation costs related to unvested performance awards are expected to be recognized over the weighted average period of Market-Based Awards The following table presents a summary of the activity for our market awards: Market Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2020 — $ — Granted 142 20.96 Vested — — Forfeited (52 ) 20.96 Unvested at September 30, 2021 90 $ 20.96 As of September 30, 2021, approximately $1.4 million of total unrecognized compensation costs related to unvested market awards are expected to be recognized over the weighted average period of The weighted average assumptions used in the Monte Carlo model relating to the valuation of our rTSR issued in fiscal year 2021 were as follows: Expected term (in years) 2.7 Expected volatility 59.4 % Risk-free interest rate 0.2 % Dividend yield 0.0 % Service-Based Awards Stock Option Awards The following table presents a summary of the activity for our stock option awards: Number of Outstanding Options (in Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at September 30, 2020 4,738 $ 20.92 6.2 $ — Granted 1,638 9.13 Exercised (268 ) 17.20 Forfeited or expired (943 ) 14.96 Outstanding at September 30, 2021 5,165 $ 18.46 4.6 $ 9,627 Exercisable at September 30, 2021 3,653 $ 21.49 2.9 $ 983 The weighted average assumptions used in the Black-Scholes model relating to the valuation of our stock options are as follows: Fiscal Year Ended September 30, 2021 2020 2019 Expected life (in years) 6.0 5.0 5.0 Expected volatility 44.5 % 35.8 % 30.5 % Risk-free interest rate 0.4 % 1.7 % 3.0 % Dividend yield 0.0 % 0.0 % 0.0 % The expected life of options awarded represents the period of time such options are expected to be outstanding and is based on our historical experience. The risk-free interest rate is based on the zero-coupon U.S. Treasury notes with a term comparable to the expected life of an award at the date of the grant. Since we do not currently expect to pay dividends, the dividend yield used for this purpose is 0% The weighted average fair value per share at the date of grant of the stock options awarded during the fiscal years 2021, 2020 and 2019 was $3.85, $5.66 and $5.86, respectively. The aggregate fair value of stock options vested during the fiscal years 2021, 2020 and 2019 was $3.4 million, $2.7 million and $5.1 million, respectively. The aggregate intrinsic value of options exercised during the fiscal years 2021, 2020 and 2019 was $0.7 million, $0.5 million and $0.9 million, respectively. The total cash received during the fiscal years 2021, 2020 and 2019 from these option exercises was $4.6 million, $3.0 million and $2.2 million, respectively, and the tax benefit realized for the tax deductions from these option exercises was $0.1 million, $0.1 million and $0.2 million, respectively. At September 30, 2021, approximately $3.8 million of total unrecognized compensation costs related to unvested stock option awards are expected to be recognized over the weighted average period of 1.8 years. RSAs The following table presents a summary of the activity for our RSAs: Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2020 419 $ 16.32 Granted — — Vested (107 ) 15.99 Forfeited (87 ) 16.45 Unvested at September 30, 2021 225 $ 16.44 At September 30, 2021, approximately $1.0 million of total unrecognized compensation costs related to unvested RSAs are expected to be recognized over the weighted average period of 1.1 years. RSUs The following table presents a summary of the activity for our RSUs: Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2020 91 $ 16.47 Granted 819 9.32 Vested (140 ) 13.90 Forfeited (202 ) 9.09 Unvested at September 30, 2021 568 $ 9.41 At September 30, 2021, approximately $2.6 million of total unrecognized compensation costs related to unvested RSUs are expected to be recognized over the weighted average period of

Leases

Leases	12 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Leases	8. Leases Our operating and finance leases consisted of the following (in thousands): September 30, Balance Sheet Classification 2021 2020 Assets: Operating lease Operating lease assets $ 537,673 $ 525,634 Finance lease Property and equipment, net 2,556 2,888 Total lease assets $ 540,229 $ 528,522 Liabilities: Current: Operating lease Current operating lease liabilities $ 156,234 $ 153,267 Finance lease Current maturities of long-term debt 194 180 Long-term: Operating lease Long-term operating lease liabilities 404,147 394,375 Finance lease Long-term debt 485 684 Total lease liabilities $ 561,060 $ 548,506 Our lease costs, net of immaterial sublease income, consisted of the following (in thousands): For the Year Ended September 30, Statement of Earnings Classification 2021 2020 Operating lease costs (a) Cost of goods sold and selling, general and administrative expenses (b) $ 193,583 $ 192,484 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 328 303 Interest on lease liabilities Interest expense 14 36 Variable lease costs (c) Selling, general and administrative expenses 53,698 45,191 Total lease costs $ 247,623 $ 238,014 (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 year ended September 30, 2021 and 2020, we recognized benefits of $3.1 million and $11.7 million for rent abatements related to COVID-19, respectively. As of September 30, 2021, the approximate future lease payments under our leases under ASC 842, Leases Fiscal Year Operating leases Finance leases 2022 $ 173,990 $ 197 2023 135,971 197 2024 98,874 191 2025 69,565 158 2026 48,331 — Thereafter 100,415 — Total undiscounted lease payments 627,146 743 Less: imputed interest 66,765 64 Present value of lease liabilities $ 560,381 $ 679 The table above does not include operating leases we have entered into of approximately $27.8 million that have not commenced, primarily related to future retail stores. Other lease information is as follows (dollars in thousands): For the Year Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 189,012 $ 183,808 Operating cash flows – finance leases 14 36 Financing cash flows – finance leases 202 34 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 180,945 $ 204,245 Lease assets obtained in exchange for new finance lease liabilities 22 4 September 30, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 5.1 5.1 Finance leases 3.7 3.8 Weighted-average discount rate: Operating leases 4.5 % 4.4 % Finance leases 0.3 % 0.3 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	9. The changes in the carrying amounts of goodwill during the fiscal years 2021 and 2020 are as follows (in thousands): SBS BSG Total Balance at September 30, 2019 $ 76,905 $ 453,881 530,786 Acquisitions — 5,342 5,342 Foreign currency translation 4,281 (371 ) 3,910 Balance at September 30, 2020 $ 81,186 $ 458,852 $ 540,038 Acquisitions 231 (1,582 ) (1,351 ) Foreign currency translation 743 1,779 2,522 Balance at September 30, 2021 $ 82,160 $ 459,049 $ 541,209 The following table reflects our other intangible assets, excluding goodwill, on our consolidated balance sheets. Once an intangible becomes fully amortized, the original cost and accumulated amortization is removed in the subsequent period. In the table below, prior year amounts for definite-lived intangible assets have been conformed to the current year’s presentation. As of September 30, 2021 and 2020, we had the following (in thousands): September 30, 2021 September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Definite-lived Intangible assets: Customer relationships $ 32,621 $ (26,246 ) $ 6,375 $ 47,787 $ (38,876 ) $ 8,911 Distribution rights 11,660 (9,251 ) 2,409 24,509 (21,570 ) 2,939 Other intangible assets 5,238 (3,460 ) 1,778 5,300 (3,045 ) 2,255 Total definite-lived intangible assets 49,519 (38,957 ) 10,562 77,596 (63,491 ) 14,105 Indefinite-lived Intangible assets: Trade names 44,970 — 44,970 44,178 — 44,178 Total intangible assets, excluding goodwill, net $ 94,489 $ (38,957 ) $ 55,532 $ 121,774 $ (63,491 ) $ 58,283 Our definite-lived intangible assets are amortized on a straight-line basis over the period that we expected an economic benefit, typically over periods of three to ten years. For the fiscal years ended September 30, 2021, 2020 and 2019, amortization expense related to intangible assets totaled $6.6 million, $9.0 million and $11.3 million, respectively. As of September 30, 2021, the expected future amortization expense related to definite-lived intangible assets is as follows (in thousands): Fiscal Year: 2022 $ 4,017 2023 2,867 2024 1,894 2025 1,439 2026 345 Thereafter — $ 10,562

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Sep. 30, 2021
Payables And Accruals [Abstract]
Accrued Liabilities	10. Accrued liabilities consist of the following (in thousands): September 30, 2021 2020 Compensation and benefits $ 73,344 $ 54,749 Interest payable 24,101 29,048 Deferred revenue 18,543 16,728 Rental obligations 10,501 8,964 Insurance reserves 5,934 4,796 Property and other taxes 3,853 4,109 Operating accruals and other 69,879 52,271 Total accrued liabilities $ 206,155 $ 170,665

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Sep. 30, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments Letters of Credit We had $18.3 million and $18.6 million of outstanding letters of credit as of September 30, 2021 and 2020, respectively. Contingencies Legal Proceedings The Company is, from time to time, involved in various claims and lawsuits incidental to the conduct of its business in the ordinary course. We do not believe that the ultimate resolution of these matters will have a material adverse impact on our consolidated financial position, results of operations or cash flows. Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, penalties, the data security incidents and other sources, are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. We have no significant liabilities for loss contingencies at September 30, 2021 and 2020.

Debt

Debt	12 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Debt	12. Short-term Debt In May 2021, we entered into a third amendment to our five-year The interest rate on the ABL facility is variable and determined at our option as (i) prime plus 0.25% or 0.50% or (ii) London Interbank Offered Rate plus 1.25% or 1.50%. In addition, the terms of the ABL facility contain a commitment fee of 0.20% on the unused portion of the facility. Borrowings under the ABL facility are secured by a first-priority lien in and upon the accounts and inventory (and the proceeds thereof) of the Company and its guarantor subsidiaries. Furthermore, the ABL facility is also secured by a second-priority lien in and upon the remaining assets of the Company and its guarantor subsidiaries. At September 30, 2021 and 2020, there were no outstanding borrowings under our ABL facility. At September 30, 2021, we had $468.5 million available for borrowing, thereunder, including our Canadian sub-facility, subject to borrowing base limitations, as reduced by outstanding letters of credit Long-term Debt Long-term debt consists of the following (dollars in thousands): September 30, 2021 2020 Interest Rates Term loan B: Variable-rate tranche $ 413,000 $ 422,625 LIBOR plus 2.25% Fixed-rate tranche — 213,163 4.500% Senior notes due Nov. 2023 — 197,419 5.500% Senior notes due Apr. 2025 300,000 300,000 8.750% Senior notes due Dec. 2025 679,961 679,961 5.625% Total $ 1,392,961 $ 1,813,168 Plus: capital lease obligations 679 864 Less: unamortized debt issuance costs and discount, net 10,916 16,955 Total debt $ 1,382,724 $ 1,797,077 Less: current maturities 194 180 Total long-term debt $ 1,382,530 $ 1,796,897 Maturities of our debt, excluding capital leases, are as follows at September 30, 2021 (in thousands): Fiscal Year: 2022-2023 $ — 2024 413,000 2025 300,000 2026 679,961 Thereafter — Total $ 1,392,961 Term Loan B In July 2017, we entered into a seven-year In January 2021, we paid the remaining $213.2 million aggregate principal amount of our term loan B fixed tranche at par, excluding accrued interest. In connection with the repayment, we recognized a $1.4 million loss on the extinguishment of debt from the write-off of unamortized deferred financing costs. Additionally in June 2021, we elected to repay $8.3 million aggregate principal amount of our term loan B variable tranche. Furthermore in September 2021, we elected to repay an additional $1.4 million aggregate principal amount. These optional prepayments did not have any early prepayment penalties. In connection with the prepayments, we recognized a loss on extinguishment of debt of $0.1 million from the write-off of unamortized deferred financing costs. Senior Notes The senior notes due 2023 and the senior notes due December 2025, which we refer to collectively as “the senior notes due 2023 and 2025,” are unsecured obligations that are jointly and severally guaranteed by Sally Beauty Holdings, Inc. and Sally Investment, and by each material domestic subsidiary. Interest on the senior notes due 2023 and 2025 is payable semi-annually, during our first and third fiscal quarters. On April 1, 2021, we called the entire outstanding balance of $197.4 million of our 5.50% senior notes due 2023 at par plus a premium. In connection with the repayment, we recognized losses on extinguishment of debt in the aggregate amount of $2.8 million, which included a $1.8 million call premium and the write-off of $1.0 million in unamortized deferred financing costs. On April 24, 2020, we closed on $300.0 million of our 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. Covenants The agreements governing our debt contain a customary covenant package that places restrictions on the disposition of assets, the granting of liens and security interests, the prepayment of certain indebtedness, and other matters and customary events of default, including customary cross-default and/or cross-acceleration provisions. As of September 30, 2021, we are in compliance with all debt covenants and all the net assets of our consolidated subsidiaries were unrestricted from transfer.

Derivative Instruments

Derivative Instruments	12 Months Ended
	Sep. 30, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative Instruments	13. As of September 30, 2021, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 4 for the classification and fair value of our derivative instruments. Designated Cash Flow Hedges Foreign Currency Forwards During the fiscal year ended September 30, 2021, we entered into foreign currency forwards to mitigate the exposure to exchange rate changes on inventory purchases in USD by our foreign subsidiaries over fiscal year 2021. As of September 30, 2021, all of our foreign currency forward derivatives instruments had settled. We record, net of income tax, the changes in fair value related to the foreign currency forwards into AOCL and recognize realized gain or loss into cost of goods sold based on inventory turns. As of September 30, 2021, we expect to reclassify approximately $0.5 million in net losses into cost of goods sold over the next 12 months. During the fiscal year ended September 30, 2021, we reclassified $0.3 million of net losses into cost of goods sold. Interest Rate Caps In July 2017, we purchased two interest rate caps with an initial aggregate notional amount of $550 million (the “interest rate caps”). The interest rate caps are made up of individual caplets that expire monthly through June 30, 2023 and are designated as cash flow hedges. Over the next 12 months, we expect to reclassify approximately $1.7 million into interest expense, which represents the original value of the expiring caplets. During the fiscal year ended September 30, 2021, we reclassified $1.2 million into interest expense.

401(k) and Profit Sharing Plan

401(k) and Profit Sharing Plan	12 Months Ended
	Sep. 30, 2021
Compensation And Retirement Disclosure [Abstract]
401(k) and Profit Sharing Plan	14. We offer 401(k) Plans to our U.S. and Puerto Rico employees who meet certain eligibility requirements. The U.S. 401(k) Plan allows employees to contribute immediately upon hire, while the Puerto Rico 401(k) Plan allows employees to contribute after one year of employment. Under the terms of each 401(k) Plan, employees may contribute a percentage of their annual compensation up to certain maximums, as defined by each 401(k) Plan and by statutory limitations. We currently match a portion of employee contributions, as defined by each 401(k) Plan. We recognized expense of $6.2 million, $5.8 million and $6.2 million in the fiscal years ended September 30, 2021, 2020 and 2019, respectively, related to such matching contributions and these amounts are included in selling, general and administrative expenses in our consolidated statements of earnings. In addition, pursuant to the 401(k) Plans, we may elect to make voluntary profit sharing contributions to the accounts of eligible employees as determined by the Compensation Committee of the Board. During the fiscal years ended September 30, 2021, 2020 and 2019, we did not make a profit sharing contribution to the 401(k) Plans.

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	15. U.S. Tax Law Changes In response to the global pandemic related to COVID-19, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted 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 fiscal years ended September 30, 2021 and 2020, related to the CARES Act. 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. On December 22, 2017, the U.S. enacted comprehensive amendments to the Internal Revenue Code of 1986 (“U.S. Tax Reform”). Among other things, U.S. Tax Reform (a) reduced the federal statutory tax rate for corporate taxpayers, (b) provided for a deemed repatriation of undistributed foreign earnings by U.S. taxpayers and made other fundamental changes on how foreign earnings will be taxed by the U.S. and (c) otherwise modified corporate tax rules in significant ways. The U.S. Treasury Department has issued final regulations covering the one-time transition tax on unrepatriated foreign earnings, which was enacted as part of U.S Tax Reform. Certain guidance included in these final regulations is inconsistent with our interpretation of the enacted tax law that led to the recognition of a $2.5 million benefit in the first quarter of fiscal year 2019. Notwithstanding this inconsistency, we remain confident in our interpretation of the Internal Revenue Code and intend to defend this position through litigation, if necessary. However, if we are ultimately unsuccessful in defending our position, we may be required to reverse the benefit. Beginning with our first quarter of fiscal year 2019, we are subject to taxation on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. We have made the policy election to record this tax as a period cost at the time it is incurred. The impact from GILTI was immaterial for fiscal years 2021, 2020, and 2019. For the fiscal year ended September 30, 2020, the provision for income taxes also includes a benefit due to a reduction of prior year tax related to GILTI. The benefit is a result of favorable final Regulations being issued by the Department of Treasury in July 2020, which can be applied retroactively. The provision for income taxes for the fiscal years 2021, 2020 and 2019 consists of the following (in thousands): Fiscal Year Ended September 30, 2021 2020 2019 Current: Federal $ 64,526 $ 22,282 $ 59,855 Foreign 14,869 6,120 10,132 State 14,364 4,730 15,339 Total current portion 93,759 33,132 85,326 Deferred: Federal (6,054 ) 10,177 4,905 Foreign (1,195 ) 1,321 (1,498 ) State (1,434 ) 2,092 1,808 Total deferred portion (8,683 ) 13,590 5,215 Total provision for income taxes $ 85,076 $ 46,722 $ 90,541 The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below: Fiscal Year Ended September 30, 2021 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 3.0 3.4 3.4 Effect of foreign operations 0.8 (0.4 ) 0.2 Foreign valuation allowances 0.6 4.6 (0.2 ) Tax law change - GILTI — (1.0 ) — Deemed repatriation tax — 0.2 (0.3 ) Share-based payment awards 0.6 1.2 0.6 Other, net 0.2 0.2 0.3 Effective tax rate 26.2 % 29.2 % 25.0 % The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands): September 30, 2021 2020 Deferred tax assets attributable to: Foreign loss carryforwards $ 34,007 $ 35,091 Accrued liabilities 18,662 8,871 Share-based compensation expense 8,392 8,988 U.S. foreign tax credits 11,199 11,199 U.S. federal social security tax deferral 3,089 4,038 Inventory adjustments 2,754 2,131 Other 2,984 1,101 Total deferred tax assets 81,087 71,419 Valuation allowance (51,810 ) (50,543 ) Total deferred tax assets, net 29,277 20,876 Deferred tax liabilities attributable to: Depreciation and amortization 109,038 107,672 Net deferred tax liability $ 79,761 $ 86,796 We believe that it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets, net of the valuation allowance. We have recorded a valuation allowance to account for uncertainties regarding recoverability of certain deferred tax assets, primarily foreign loss carry-forwards. Domestic earnings before provision for income taxes were $288.0 million, $168.0 million and $328.3 million in the fiscal years 2021, 2020 and 2019, respectively. Foreign earnings before provision for income taxes of $36.9 million in the fiscal year 2021, a loss before provision for income taxes of $8.0 million in the fiscal year 2020 and earnings before provision for income taxes of $33.9 million in the fiscal year 2019. Tax reserves are evaluated and adjusted as appropriate, while taking into account the progress of audits by various taxing jurisdictions and other changes in relevant facts and circumstances evident at each balance sheet date. We do not expect the outcome of current or future tax audits to have a material adverse effect on our consolidated financial condition, results of operations or cash flow. As of September 30, 2021, applicable deferred tax liabilities have been provided for undistributed foreign earnings in excess of foreign working capital and cash requirements. As a result of U.S. Tax Reform, the repatriation of cash to the U.S. is generally no longer taxable for federal income tax purposes, but could be subject to foreign withholding taxes and state income taxes. If undistributed earnings of our foreign operations were not considered permanently reinvested as of September 30, 2021, an immaterial amount of additional deferred taxes would have been provided. At September 30, 2021 and 2020 , we had total operating loss carry-forwards of $ 125.7 million and $ 128.2 million, respectively, of which $ 109.4 million and $ 111.7 million, respectively, are subject to a valuation allowance. At September 30, 2021 , operating loss carry-forwards of $ 3.0 million expire between 2021 and 2032 and operating loss carry-forwards of $ 122.7 million have no expiration date. At September 30, 2021 and 2020 , we had tax credit carry-forwards of $ 14.1 million and $ 13.8 million, respectively. This includes a U.S. foreign tax credit carry-forward of $ 11.2 million primarily as a result of the deemed repatriation tax under U.S. Tax Reform. This credit expires in 2028. We do not believe the realization of the U.S. foreign tax credit is more-likely-than-not, so a valuation allowance has been recorded against its full value. Of the remaining tax credit carry-forwards, at September 30, 2021 , $ 1.2 million expire between 2024 and 2028, $ 0.3 million expire between 2032 and 2036 and $ 1.4 million have no expiration date. Total tax credit carry-forwards of $ 12.6 million are subject to a valuation allowance at September 30, 2021 and 2020 . The changes in the amount of unrecognized tax benefits are as follows (in thousands): Fiscal Year Ended September 30, 2021 2020 Balance at beginning of the fiscal year $ 2,053 $ 2,000 Increases related to prior year tax positions 5 — Decreases related to prior year tax positions (2 ) (4 ) Increases related to current year tax positions 195 250 Lapse of statute (159 ) (193 ) Balance at end of fiscal year $ 2,092 $ 2,053 If recognized, these positions would affect our effective tax rate. We recognize interest and penalties, accrued in connection with unrecognized tax benefits, in provision for income taxes. Accrued interest and penalties, in the aggregate, were $0.3 million and $0.2 million at September 30, 2021 and 2020, respectively. Because existing tax positions will continue to generate increased liabilities for unrecognized tax benefits over the next 12 months, and the fact that from time to time our tax returns are routinely under audit by various taxing authorities, it is reasonably possible that the amount of unrecognized tax benefits will change during the next 12 months. An estimate of the amount of such change, or a range thereof, cannot reasonably be made at this time. However, we do not expect the change, if any, to have a material effect on our consolidated financial condition or results of operations within the next 12 months. Our consolidated federal income tax return for the fiscal year ended September 30, 2019, is currently under IRS examination. Our consolidated federal income tax return for the fiscal year ended September 30, 2018 is currently under IRS Appeals for the aforementioned issue related to the transition tax on unrepatriated earnings. Our statute remains open for the fiscal year ended September 30, 2018, forward. Our U.S. state income tax returns are impacted by various statutes of limitations and are generally open for the fiscal year ended September 30, 2018 and future years. Our foreign income tax returns are impacted by various statutes of limitations, which are generally open from 2016 forward.

Acquisitions

Acquisitions	12 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Acquisitions	16. On September 28, 2020, we acquired La Maison Ami-Co (1981) Inc. (“Ami-Co”), a professional beauty products distributor with ten stores in the province of Quebec, Canada, for approximately $8.9 million, pending certain holdbacks. In addition, this acquisition includes exclusive distribution rights in Quebec to premier professional hair color and hair care brands. We accounted for this acquisition using the acquisition method of accounting for business combinations and funded by cash on hand. Upon acquisition, we preliminarily recorded goodwill of $5.3 million, which is not expected to be deductible for tax purposes, in connection with this acquisition. The results of operations of Ami-Co subsequent to the acquisition date and the goodwill recorded in connection with the acquisition was included within our BSG segment. The acquisition of Ami-Co was not material to our results of operations. During fiscal year 2021, we recorded post-acquisition adjustments from our purchase of Ami-Co that reduced goodwill and established $2.5 million in intangible assets subject to amortization. Additionally, we released $1.6 million in holdbacks in connection with the Ami-Co acquisition during the fiscal year. In addition, we completed several other individually immaterial acquisitions during the fiscal years 2021 and 2020 in the aggregate cost of approximately $0.7 million and $5.7 million, respectively. As a result of these acquisitions, we recorded intangible assets subject to amortization in fiscal years 2021 and 2020 of approximately $0.6 million and $3.9 million, respectively.

Segments and Disaggregated Reve

Segments and Disaggregated Revenue	12 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Segments and Disaggregated Revenue	17. Our segments are defined on how our chief operating decision maker, which we consider the Chief Executive Officer and Chief Financial Officer together, regularly reviews performance and allocates resources to our operating segments. Our business is organized into two reportable segments: (i) SBS, a domestic and international chain of retail stores and a consumer-facing e-commerce website that offers professional beauty supplies to both salon professionals and retail customers primarily in North America, Puerto Rico, and parts of Europe and South America and (ii) BSG, including its franchise-based business Armstrong McCall, a full service distributor of beauty products and supplies that offers professional beauty products directly to salons and salon professionals through its professional-only stores, e-commerce platforms and its own sales force in partially exclusive geographical territories in the U.S. and Canada. The accounting policies of both of our reportable segments are the same as described in the summary of significant accounting policies contained in Note 2. Sales between segments, which were eliminated in consolidation, were not material for the fiscal years ended September 30, 2021, 2020 and 2019. Business Segments Information Segment data for the fiscal years 2021, 2020 and 2019 are as follows (in thousands): 2021 2020 2019 Net sales (for the fiscal year indicated): SBS $ 2,278,382 $ 2,080,703 $ 2,293,094 BSG 1,596,615 1,433,627 1,583,317 Total $ 3,874,997 $ 3,514,330 $ 3,876,411 Earnings before provision for income taxes: Segment operating earnings: SBS $ 417,658 $ 237,588 $ 366,412 BSG 205,078 194,206 239,572 Segment operating earnings 622,736 431,794 605,984 Unallocated expenses 199,682 159,009 148,193 Restructuring 4,611 14,025 (682 ) Consolidated operating earnings 418,443 258,760 458,473 Interest expense 93,509 98,793 96,309 Earnings before provision for income taxes $ 324,934 $ 159,967 $ 362,164 Depreciation and amortization: SBS $ 61,887 $ 65,207 $ 65,561 BSG 28,597 29,324 28,568 Corporate 11,717 12,248 13,529 Total $ 102,201 $ 106,779 $ 107,658 Payments for property and equipment: SBS $ 43,165 $ 73,130 $ 69,802 BSG 24,880 27,338 18,997 Corporate 5,859 10,390 18,956 Total $ 73,904 $ 110,858 $ 107,755 Total assets (as of September 30): SBS $ 1,235,427 $ 1,370,745 $ 973,304 BSG 1,179,263 1,106,801 1,012,336 Sub-total 2,414,690 2,477,546 1,985,640 Corporate 432,442 417,601 112,806 Total $ 2,847,132 $ 2,895,147 $ 2,098,446 Unallocated expenses consist of corporate and shared costs and are included in selling, general and administrative expenses in our consolidated statements of earnings. In the fiscal years 2021, 2020 and 2019, no single customer accounted for 10% or more of revenue. Geographic Area Information Certain geographic data is as follows (in thousands): 2021 2020 2019 Net sales (for the fiscal year indicated): United States $ 3,228,091 $ 2,914,171 $ 3,169,821 Other countries 646,906 600,159 706,590 Total $ 3,874,997 $ 3,514,330 $ 3,876,411 Long-lived assets (as of September 30): United States $ 267,839 $ 264,936 $ 259,815 United Kingdom 15,089 20,183 24,476 Other countries 24,449 29,910 35,337 Total $ 307,377 $ 315,029 $ 319,628 Disaggregated Revenues The following tables disaggregate our segment revenues by merchandise category: Fiscal Year Ended September 30, SBS 2021 2020 2019 Hair color 35.6 % 33.0 % 29.4 % Hair care 18.9 % 18.9 % 20.4 % Skin and nail care 13.9 % 14.3 % 14.8 % Styling tools 12.3 % 12.8 % 13.5 % Salon supplies and accessories 7.6 % 8.1 % 6.6 % Textured hair 5.9 % 5.8 % 7.1 % Other beauty items 5.8 % 7.1 % 8.2 % Total 100.0 % 100.0 % 100.0 % Fiscal Year Ended September 30, BSG 2021 2020 2019 Hair color 43.7 % 40.6 % 39.5 % Hair care 36.8 % 35.0 % 35.1 % Skin and nail care 7.0 % 8.0 % 8.1 % Styling tools 6.4 % 6.2 % 3.4 % Other beauty items 2.3 % 3.4 % 6.3 % Promotional items 3.8 % 6.8 % 7.6 % Total 100.0 % 100.0 % 100.0 % The following table disaggregates our segment revenue by sales channels: SBS BSG Fiscal Year Ended September 30, Fiscal Year Ended September 30, 2021 2020 2019 2021 2020 2019 Company-operated stores 94.1 % 91.8 % 96.9 % 69.1 % 68.9 % 69.4 % E-commerce 5.9 % 8.0 % 2.8 % 9.2 % 8.7 % 4.8 % Franchise stores — 0.2 % 0.3 % 7.5 % 7.1 % 7.6 % Distributor sales consultants — — — 14.2 % 15.3 % 18.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

Restructuring

Restructuring	12 Months Ended
	Sep. 30, 2021
Restructuring And Related Activities [Abstract]
Restructuring	18. Restructuring expense and gains for the fiscal years ended September 30, 2021, 2020 and 2019, are as follows (in thousands): 2021 2020 2019 Project Surge $ 1,451 $ 1,511 $ — Transformation Plan 3,160 12,514 (682 ) Total expense (gain) $ 4,611 $ 14,025 $ (682 ) 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 consolidated balance sheets, is as follows (in thousands): Project Surge Liability at September 30, 2020 Expenses Cash Payments Adjustments Liability at September 30, 2021 Workforce reductions $ — $ 1,061 $ 981 $ — $ 80 Facility closures — — — — — Other — 390 390 — — Total $ — $ 1,451 $ 1,371 $ — $ 80 Expenses incurred during the fiscal year ended September 30, 2021, represent costs incurred by SBS of $0.7 million, corporate of $0.5 million and BSG of $0.2 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 consolidated balance sheets, is as follows (in thousands): Transformation Plan Liability at September 30, 2020 Expenses Cash Payments Adjustments Liability at September 30, 2021 Workforce reductions $ 65 $ 1,327 $ 674 $ — $ 718 Facility closures — 790 368 — 422 Other — 1,043 1,043 — — Total $ 65 $ 3,160 $ 2,085 $ — $ 1,140 Expenses incurred during the fiscal year ended September 30, 2020, represent costs incurred by SBS of $3.2 million. In addition, SBS recognized $1.4 million in cost related to inventory write-downs in connection with the plan within cost of products sold.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates In accordance with GAAP, management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent liabilities in the consolidated financial statements. Actual results may differ from these estimates in amounts that may be material to our consolidated financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash represents currency on hand, debit and credit card receivable and third-party online payment systems transactions, while cash equivalents consist of highly liquid investments which have an original maturity of three months or less.
Trade Accounts Receivable and Accounts Receivable, Other	Trade Accounts Receivable and Accounts Receivable, Other Trade accounts receivable consist of credit extended directly to certain customers who meet our credit requirements in the ordinary course of business and are stated at their carrying values, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is regularly reviewed on the basis of our historical collection data and current customer information. Customer account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. At September 30, 2021 and 2020, our allowance for doubtful accounts was $1.1 million and $1.9 million, respectively. Other accounts receivable consist primarily of amounts due from vendors under various contractual agreements and include volume rebates and other promotional considerations.
Inventory and Cost of Goods Sold	Inventory and Cost of Goods Sold Effective August 1, 2020, we changed how we value our inventory. See Note 3 for more information related to the change in our costing method. At September 30, 2020, inventory is stated at the lower of weighted average cost or net realizable value. Inventory is stated at the lower of weighted average cost or net realizable value. Inventory cost reflects actual product costs, the cost of transportation to our distribution centers and certain shipping and handling costs, such as freight from the distribution centers to the stores and handling costs incurred at the distribution centers. When assessing the net realizable value of inventory, we consider several factors including estimates of future demand for our products, historical turn-over rates, the age and sales history of the inventory, and historic and anticipated changes in stock keeping units. Physical inventory counts are performed at substantially all stores and significant distribution centers at least annually. Upon completion of physical inventory counts, our consolidated financial statements are adjusted to reflect actual quantities on hand. Between physical counts, we estimate inventory shrinkage based on our historical experience. We have policies and processes in place that are intended to minimize inventory shrinkage. Cost of goods sold includes actual product costs, the cost of transportation to our distribution centers, operating cost associated with our distribution centers (including employee compensation expense, depreciation and amortization, rent and other occupancy-related expenses), vendor rebates and allowances, inventory shrinkage and certain shipping and handling costs, such as freight from the distribution centers to the stores. All other shipping and handling costs are included in selling, general and administrative expenses when incurred. We deem cash consideration received from a supplier to be a reduction of the cost of inventory purchased, unless it is in exchange for an asset or service or a reimbursement of a specific, incremental, identifiable cost incurred by us in selling the vendor’s products. The majority of cash consideration we receive is considered to be a reduction of inventory and a subsequent reduction in cost of goods sold as the related products are sold.
Lease Accounting	Lease Accounting 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 typically do not assume renewals unless 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 fiscal year 2020, we impaired approximately $1.9 million, respectively in operating lease assets and leasehold improvements, primarily as a result of the impact of COVID-19, within selling, general and administrative expenses.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated or amortized over the lesser of the estimated useful lives of the assets or the term of the related lease, including renewals considered reasonably assured. Expenditures for maintenance and repairs are included in selling, general and administrative expenses when incurred, while expenditures for major renewals and improvements that substantially extend the useful life of an asset are capitalized. The following table summarizes our property and equipment balances and their estimated useful lives (dollars in thousands): Life September 30, (in years) 2021 2020 Land N/A $ 10,119 $ 10,120 Buildings and building improvements 5 – 57,049 54,521 Leasehold improvements 2 – 10 326,595 304,404 Furniture, fixtures and equipment 2 – 10 681,017 640,693 Total property and equipment, gross 1,074,780 1,009,738 Accumulated depreciation and amortization (767,403 ) (694,709 ) Total property and equipment, net $ 307,377 $ 315,029 Depreciation expense for the fiscal years 2021, 2020 and 2019 was $93.2 million, $95.5 million and $96.1 million, respectively, and is included in selling, general and administrative expenses in our consolidated statements of earnings.
Valuation of Long-Lived Assets and Definite-lived Intangible Assets	Valuation of Long-Lived Assets and Definite-lived Intangible Assets Long-lived assets and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be fully recoverable. The recoverability of long-lived assets and intangible assets subject to amortization is assessed by comparing the net carrying amount of each asset to the total estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.
Goodwill and Indefinite-lived Intangible Assets	Goodwill and Indefinite-lived Intangible Assets Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. G st Components within the same operating segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. As of September 30, 2021 and 2020, our reporting units consisted of Sally Beauty Supply (“SBS”) and Beauty Systems Group (“BSG”). We assign goodwill to the reporting unit which consolidates the acquisition. When assessing goodwill for impairment, we may perform a qualitative assessment which evaluates macro-economic conditions, current and projected cash flows, and other events or changes in circumstances to determine if a quantitative assessment is necessary. For fiscal year 2021, we completed a qualitative assessment and determined that while COVID-19 had a macro-economic impact, there were no material impacts to the reporting units to require a quantitative assessment. We have not recorded any impairment charges related to goodwill in the current or prior fiscal years presented. Indefinite-lived Intangible Assets Our intangible assets with indefinite lives consist of trade names acquired in business combinations st whenever events or changes in circumstances indicate the asset’s carrying amount may be less than its recoverable amount, to determine whether or not it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. When assessing intangible assets with indefinite lives for impairment, we compare the fair value of each asset against its carrying value. Fair value is based on the relief-from-royalty method. Based
Self-Insurance Programs	Self-Insurance Programs We self-insure the risks related to workers’ compensation, general and auto liability, property and certain employee-related healthcare benefits. We have obtained third-party excess insurance coverage to limit our exposure per occurrence and aggregate cash outlay. We record an estimated liability for the ultimate cost of claims incurred and unpaid as of the balance sheet date, which includes claims filed and estimated losses incurred but not yet reported. We estimate the ultimate cost based on an analysis of our historical data and actuarial estimates. These estimates are reviewed on a regular basis to ensure the recorded liability is adequate. The current and long-term portions of these liabilities are recorded at their present value and included in accrued liabilities and other liabilities in our consolidated balance sheets, respectively.
Revenue Recognition	Revenue Recognition Substantially all of our revenue is derived through the sale of merchandise. Revenue is recognized net of estimated sales returns and sales taxes. We estimate sales returns based on historical data. Additionally, we have assessed all revenue streams for principal versus agent considerations and have concluded we are the principal for all transactions. See Note 17 for additional information regarding the disaggregation of our revenue. Merchandise Revenues The majority of our revenue comes from the sale of products in our company-operated stores. These sales generally have one single performance obligation and the revenue is recognized at the point of sale. However, discounts and incentives issued at the point of sale to entice a customer to a future purchase are treated as a separate performance obligation. As such, we allocate a portion of the revenue generated from the point of sale to each of the additional performance obligations separately using explicitly stated amounts or our best estimate using historical data. We also sell merchandise on our online platforms, to our franchisees and by using distributor sales consultants. These sales generally have one single performance obligation and revenue is recognized upon the shipment of the merchandise. Any shipping and handling fees charged to the customer are recognized as revenue, while any shipping and handling costs to get the merchandise shipped is recognized in cost of goods sold. We extend credit to certain customers, primarily salon professionals, which generally have 30 day payment terms. Based on the nature of theses receivables, no significant financing component exists. Gift Cards The revenue from the sale of our gift cards is recognized at the time the gift card is used to purchase merchandise, which is generally within one year from the date of purchase. Our gift cards do not carry expiration dates or impose post-sale fees. Based on historical experience, a certain amount of our gift cards will not be redeemed, also referred to as “gift card breakage.” We recognize revenue related to gift card breakage within revenue in our consolidated statements of earnings over time proportionately to historical redemption patterns. The gift cards are issued and represent liabilities of either of our operating entities, Sally Beauty Supply LLC or Beauty Systems Group LLC, which are both limited liability companies formed in the state of Virginia. Private Label Rewards Credit Card In September 2019, we signed a multi-year agreement with a third-party bank (the “Bank”) to launch a private label rewards credit card. Under the agreement, the Bank will manage and extend credit to our SBS and BSG customers and we will provide licensing to our brand, marketing services and facilitate credit applications. The Bank will be the sole owner of the private label rewards credit card accounts and takes on the risk of default by the private label rewards card holders. In connection with signing the agreement, we received a refundable payment from the Bank that we recorded as deferred revenue within other liabilities on our consolidated balance sheets and will recognize on a straight-line basis over the initial term of the agreement into net sales in our consolidated statements of earnings. Pursuant to the agreement, the Bank will reimburse us for certain expenses we incur for the launch and marketing of the Program. Amounts reimbursed are recognized in net sales in our consolidated statements of earnings. In addition, we can earn other amounts from the Bank, including incentive payments for achieving performance targets and the activation of credit cards. During the fiscal year ended September 30, 2020, we commenced operations and started to roll out our first SBS and BSG branded credit cards. Customer Loyalty Rewards Our Sally Beauty Rewards Loyalty Program in the U.S. and Canada, enables customers to earn points based on their status for every dollar spent on merchandise purchased in our SBS stores and through our sallybeauty.com sallybeauty.com The following table shows the amount of contract liabilities on our consolidated balance sheets as of September 30, 2021 and 2020 (in thousands): September 30, Contracts Balance Sheet Classification 2021 2020 Gift cards Accrued liabilities $ 5,299 $ 5,066 Rewards loyalty program Accrued liabilities 11,445 8,881 Total liability $ 16,744 $ 13,947 Changes to our contract liabilities for fiscal year 2021 were as follows (in thousands): September 30, 2020 $ 13,947 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 15,226 Revenue recognized from beginning liability (12,429 ) September 30, 2021 $ 16,744
Advertising Costs	Advertising Costs Advertising costs relate mainly to print advertisements, digital marketing, trade shows and product education for salon professionals. Advertising costs incurred in connection with print advertisements are expensed the first time the advertisement is run. Other advertising costs are expensed when incurred. Advertising costs were $70.9 million, $72.7 million and $73.3 million for the fiscal years 2021, 2020 and 2019, respectively, and are included in selling, general and administrative expenses in our consolidated statements of earnings.
Share-based Compensation	Share-based Compensation We measure the cost of services received from our employees and directors in exchange for an award of equity instruments based on the fair value of the award on the date of grant which are expensed ratably over the vesting period, except for awards issued to retirement eligible participants, which are expensed on an accelerated basis. We recognize the impact of forfeitures as they occur. Share-based compensation expense is included in selling, general and administrative expenses in our consolidated statements of earnings.
Income Taxes	Income Taxes We recognize deferred income taxes for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are anticipated to be recovered or settled. The effect on deferred taxes of a change in income tax rates is recognized in the consolidated statements of earnings in the period of enactment. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets to the amount expected to be realized unless it is more-likely-than-not that such assets will be realized in full. The estimated tax benefit of an uncertain tax position is recorded in our consolidated financial statements only after determining a more-likely-than-not probability that the uncertain tax position will withstand challenge, if any, from applicable taxing authorities.
Foreign Currency	Foreign Currency The functional currency of each of our foreign operations is generally the respective local currency. Balance sheet accounts are translated into U.S. dollars (our reporting currency) at the rates of exchange in effect at the balance sheet date, while the results of operations and cash flows are generally translated using average exchange rates for the periods presented. Individually material transactions, if any, are translated using the actual rate of exchange on the transaction date. The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss in our consolidated balance sheets. Foreign currency transaction gains or losses, including changes in the fair value (i.e., marked-to-market adjustments) of certain foreign exchange contracts we hold, are included in selling, general and administrative expenses in our consolidated statements of earnings when incurred and were not significant in any of the periods presented in the accompanying consolidated financial statements.

Accounting Changes and Recent_2

Accounting Changes and Recent Accounting Pronouncements (Policies)	12 Months Ended
	Sep. 30, 2021
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Accounting Changes	Accounting Changes In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02 which requires most leases to be reported on the balance sheet as a right-of-use asset and a lease liability. On October 1, 2019, we adopted ASU No. 2016-02 using a modified retrospective transition method without restating comparative periods. We have elected the package of practical expedients permitted within the transition guidance under the new standard relating to the identification, classification and initial direct costs of leases commencing before the effective date of Topic 842. In addition, we have elected to not recognize a right-of-use asset or lease obligation for short-term leases with an initial term of 12 months or less. 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 $0.1 million adjustment to accumulated earnings resulting from the impairment of certain operating lease assets as well certain deferred tax balances that were written off as a result of the adoption of the new standard. The impact on our consolidated results of operations or consolidated cash flows was not material. See Note 8 for additional information in connection with ASU No. 2016-02. Effective August 1, 2020, we changed our method of accounting for inventory located in the U.S. and Canada at both our distribution centers and store fronts. Prior to August 2020, we valued inventory at the lower of cost or net realizable value on a FIFO basis. Effective August 1, 2020, all company-wide inventories have been valued at the lower of cost or net realizable value using the weighted average cost method. These changes were made in connection with the implementation of a new perpetual inventory system, which provides us with better information to manage inventory. We believe the weighted average cost method is preferable to the FIFO cost method because it results in greater precision in the determination of cost of goods sold and inventories at the SKU level and results in a consistent inventory valuation method for all of the Company’s inventories. We recorded the cumulative effect of this change in accounting principle as of August 1, 2020. The effects of this change in accounting principle as of August 1, 2020 were not material to our consolidated financial statements. Prior to implementation of the new perpetual inventory system, we were not able to determine the impact of the change to the weighted average cost method. Therefore, we did not retroactively apply the change to prior periods.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes Income Taxes

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Summary of Property and Equipment Balances and Estimated Useful Lives	The following table summarizes our property and equipment balances and their estimated useful lives (dollars in thousands): Life September 30, (in years) 2021 2020 Land N/A $ 10,119 $ 10,120 Buildings and building improvements 5 – 57,049 54,521 Leasehold improvements 2 – 10 326,595 304,404 Furniture, fixtures and equipment 2 – 10 681,017 640,693 Total property and equipment, gross 1,074,780 1,009,738 Accumulated depreciation and amortization (767,403 ) (694,709 ) Total property and equipment, net $ 307,377 $ 315,029
Summary of Contract Liabilities and its Changes	The following table shows the amount of contract liabilities on our consolidated balance sheets as of September 30, 2021 and 2020 (in thousands): September 30, Contracts Balance Sheet Classification 2021 2020 Gift cards Accrued liabilities $ 5,299 $ 5,066 Rewards loyalty program Accrued liabilities 11,445 8,881 Total liability $ 16,744 $ 13,947 Changes to our contract liabilities for fiscal year 2021 were as follows (in thousands): September 30, 2020 $ 13,947 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 15,226 Revenue recognized from beginning liability (12,429 ) September 30, 2021 $ 16,744

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of financial assets and liabilities and other fair value disclosures by fair value hierarchy	Fair value on recurring basis Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows (in thousands): As of September 30, Classification Pricing Category 2021 2020 Financial Assets Cash equivalents Cash and cash equivalents Level 1 $ — $ 194,612 Interest rate caps Other assets Level 2 35 27 Total assets $ 35 $ 194,639 Financial Liabilities None Cash equivalents, at September 30, 2021, consist of highly liquid investments which mature daily and are valued using unadjusted quoted market prices for such securities. The fair value for interest rate caps were measured using widely accepted valuation techniques, such as discounted cash flow analyses, and observable inputs, such as market interest rates. Other fair value disclosures Carrying amounts and the related estimated fair value of our long-term debt, excluding capital lease obligations, are as follows: As of September 30, 2021 2020 Pricing Category Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 979,961 1,019,635 $ 1,177,380 $ 1,217,707 Other long-term debt Level 2 413,000 411,451 635,788 619,397 Total debt $ 1,392,961 $ 1,431,086 $ 1,813,168 $ 1,837,104

Accumulated Stockholders' Equ_2

Accumulated Stockholders' Equity (Tables)	12 Months Ended
	Sep. 30, 2021
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): Fiscal Year Ended September 30, 2021 2020 2019 Number of shares repurchased — 4,702 3,562 Total cost of share repurchased $ — $ 61,357 $ 46,621
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 income (loss) before reclassifications, net of tax 11,821 (411 ) (531 ) 10,879 Reclassification to net earnings, net of tax — 609 1,096 1,705 Balance at September 30, 2020 (102,111 ) (3,003 ) 411 (104,703 ) Other comprehensive income (loss) before reclassifications, net of tax 9,957 (282 ) (1,070 ) 8,605 Reclassification to net earnings, net of tax — 1,200 257 1,457 Balance at September 30, 2021 $ (92,154 ) $ (2,085 ) $ (402 ) $ (94,641 )

Weighted-Average Shares (Tables

Weighted-Average Shares (Tables)	12 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of computations of basic and diluted earnings per share	The following table sets forth the computations of basic and diluted earnings per share (in thousands): Fiscal Year Ended September 30, 2021 2020 2019 Weighted-average basic shares 112,653 113,881 119,636 Dilutive securities: Stock option and stock award programs 1,559 799 647 Weighted-average diluted shares 114,212 114,680 120,283

Share-Based Payments (Tables)

Share-Based Payments (Tables)	12 Months Ended
	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Schedule of total compensation cost charged against income	The following table presents total compensation cost for all share-based compensation arrangements, and the related income tax benefits recognized in our consolidated statement of earnings (in thousands): Fiscal Year Ended September 30, 2021 2020 2019 Share-based compensation expense $ 11,656 $ 8,426 $ 9,180 Income tax benefit related to share-based compensation expense $ 2,834 $ 2,059 $ 2,357
Summary of activity for performance based unit awards assuming 100% payout	Performance Awards Number of Shares (in Weighted Average Fair Value Per Share Unvested at September 30, 2020 542 $ 17.06 Granted 142 15.33 Vested — — Forfeited (382 ) 17.16 Unvested at September 30, 2021 302 $ 16.59
Summary of activity for stock option awards	Number of Outstanding Options (in Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Outstanding at September 30, 2020 4,738 $ 20.92 6.2 $ — Granted 1,638 9.13 Exercised (268 ) 17.20 Forfeited or expired (943 ) 14.96 Outstanding at September 30, 2021 5,165 $ 18.46 4.6 $ 9,627 Exercisable at September 30, 2021 3,653 $ 21.49 2.9 $ 983
Schedule of weighted average assumptions for valuation of stock options using the Black-Scholes option pricing model	Fiscal Year Ended September 30, 2021 2020 2019 Expected life (in years) 6.0 5.0 5.0 Expected volatility 44.5 % 35.8 % 30.5 % Risk-free interest rate 0.4 % 1.7 % 3.0 % Dividend yield 0.0 % 0.0 % 0.0 %
Market Based Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of the activity for restricted stock awards/units	The following table presents a summary of the activity for our market awards: Market Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2020 — $ — Granted 142 20.96 Vested — — Forfeited (52 ) 20.96 Unvested at September 30, 2021 90 $ 20.96
Schedule of weighted average assumptions for valuation of rTSR	The weighted average assumptions used in the Monte Carlo model relating to the valuation of our rTSR issued in fiscal year 2021 were as follows: Expected term (in years) 2.7 Expected volatility 59.4 % Risk-free interest rate 0.2 % Dividend yield 0.0 %
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of the activity for restricted stock awards/units	Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2020 419 $ 16.32 Granted — — Vested (107 ) 15.99 Forfeited (87 ) 16.45 Unvested at September 30, 2021 225 $ 16.44
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of the activity for restricted stock awards/units	Restricted Stock Units Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2020 91 $ 16.47 Granted 819 9.32 Vested (140 ) 13.90 Forfeited (202 ) 9.09 Unvested at September 30, 2021 568 $ 9.41

Leases (Tables)

Leases (Tables)	12 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Summary of Operating and Finance Leases	Our operating and finance leases consisted of the following (in thousands): September 30, Balance Sheet Classification 2021 2020 Assets: Operating lease Operating lease assets $ 537,673 $ 525,634 Finance lease Property and equipment, net 2,556 2,888 Total lease assets $ 540,229 $ 528,522 Liabilities: Current: Operating lease Current operating lease liabilities $ 156,234 $ 153,267 Finance lease Current maturities of long-term debt 194 180 Long-term: Operating lease Long-term operating lease liabilities 404,147 394,375 Finance lease Long-term debt 485 684 Total lease liabilities $ 561,060 $ 548,506
Summary of Lease Costs, Net of Immaterial Sublease Income	Our lease costs, net of immaterial sublease income, consisted of the following (in thousands): For the Year Ended September 30, Statement of Earnings Classification 2021 2020 Operating lease costs (a) Cost of goods sold and selling, general and administrative expenses (b) $ 193,583 $ 192,484 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 328 303 Interest on lease liabilities Interest expense 14 36 Variable lease costs (c) Selling, general and administrative expenses 53,698 45,191 Total lease costs $ 247,623 $ 238,014 (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 September 30, 2021, the approximate future lease payments under our leases under ASC 842, Leases Fiscal Year Operating leases Finance leases 2022 $ 173,990 $ 197 2023 135,971 197 2024 98,874 191 2025 69,565 158 2026 48,331 — Thereafter 100,415 — Total undiscounted lease payments 627,146 743 Less: imputed interest 66,765 64 Present value of lease liabilities $ 560,381 $ 679
Summary of Other Lease Information	Other lease information is as follows (dollars in thousands): For the Year Ended September 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 189,012 $ 183,808 Operating cash flows – finance leases 14 36 Financing cash flows – finance leases 202 34 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 180,945 $ 204,245 Lease assets obtained in exchange for new finance lease liabilities 22 4 September 30, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 5.1 5.1 Finance leases 3.7 3.8 Weighted-average discount rate: Operating leases 4.5 % 4.4 % Finance leases 0.3 % 0.3 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of changes in carrying amounts of goodwill	The changes in the carrying amounts of goodwill during the fiscal years 2021 and 2020 are as follows (in thousands): SBS BSG Total Balance at September 30, 2019 $ 76,905 $ 453,881 530,786 Acquisitions — 5,342 5,342 Foreign currency translation 4,281 (371 ) 3,910 Balance at September 30, 2020 $ 81,186 $ 458,852 $ 540,038 Acquisitions 231 (1,582 ) (1,351 ) Foreign currency translation 743 1,779 2,522 Balance at September 30, 2021 $ 82,160 $ 459,049 $ 541,209
Schedule of other intangible assets, excluding goodwill	The following table reflects our other intangible assets, excluding goodwill, on our consolidated balance sheets. Once an intangible becomes fully amortized, the original cost and accumulated amortization is removed in the subsequent period. In the table below, prior year amounts for definite-lived intangible assets have been conformed to the current year’s presentation. As of September 30, 2021 and 2020, we had the following (in thousands): September 30, 2021 September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Definite-lived Intangible assets: Customer relationships $ 32,621 $ (26,246 ) $ 6,375 $ 47,787 $ (38,876 ) $ 8,911 Distribution rights 11,660 (9,251 ) 2,409 24,509 (21,570 ) 2,939 Other intangible assets 5,238 (3,460 ) 1,778 5,300 (3,045 ) 2,255 Total definite-lived intangible assets 49,519 (38,957 ) 10,562 77,596 (63,491 ) 14,105 Indefinite-lived Intangible assets: Trade names 44,970 — 44,970 44,178 — 44,178 Total intangible assets, excluding goodwill, net $ 94,489 $ (38,957 ) $ 55,532 $ 121,774 $ (63,491 ) $ 58,283
Schedule of expected future amortization expense related to definite-lived intangible assets	As of September 30, 2021, the expected future amortization expense related to definite-lived intangible assets is as follows (in thousands): Fiscal Year: 2022 $ 4,017 2023 2,867 2024 1,894 2025 1,439 2026 345 Thereafter — $ 10,562

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Sep. 30, 2021
Payables And Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): September 30, 2021 2020 Compensation and benefits $ 73,344 $ 54,749 Interest payable 24,101 29,048 Deferred revenue 18,543 16,728 Rental obligations 10,501 8,964 Insurance reserves 5,934 4,796 Property and other taxes 3,853 4,109 Operating accruals and other 69,879 52,271 Total accrued liabilities $ 206,155 $ 170,665

Debt (Tables)

Debt (Tables)	12 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Summary of long-term debt	Short-term Debt In May 2021, we entered into a third amendment to our five-year The interest rate on the ABL facility is variable and determined at our option as (i) prime plus 0.25% or 0.50% or (ii) London Interbank Offered Rate plus 1.25% or 1.50%. In addition, the terms of the ABL facility contain a commitment fee of 0.20% on the unused portion of the facility. Borrowings under the ABL facility are secured by a first-priority lien in and upon the accounts and inventory (and the proceeds thereof) of the Company and its guarantor subsidiaries. Furthermore, the ABL facility is also secured by a second-priority lien in and upon the remaining assets of the Company and its guarantor subsidiaries. At September 30, 2021 and 2020, there were no outstanding borrowings under our ABL facility. At September 30, 2021, we had $468.5 million available for borrowing, thereunder, including our Canadian sub-facility, subject to borrowing base limitations, as reduced by outstanding letters of credit Long-term Debt Long-term debt consists of the following (dollars in thousands): September 30, 2021 2020 Interest Rates Term loan B: Variable-rate tranche $ 413,000 $ 422,625 LIBOR plus 2.25% Fixed-rate tranche — 213,163 4.500% Senior notes due Nov. 2023 — 197,419 5.500% Senior notes due Apr. 2025 300,000 300,000 8.750% Senior notes due Dec. 2025 679,961 679,961 5.625% Total $ 1,392,961 $ 1,813,168 Plus: capital lease obligations 679 864 Less: unamortized debt issuance costs and discount, net 10,916 16,955 Total debt $ 1,382,724 $ 1,797,077 Less: current maturities 194 180 Total long-term debt $ 1,382,530 $ 1,796,897
Schedule of maturities of debt	Maturities of our debt, excluding capital leases, are as follows at September 30, 2021 (in thousands): Fiscal Year: 2022-2023 $ — 2024 413,000 2025 300,000 2026 679,961 Thereafter — Total $ 1,392,961

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of provision for income taxes	The provision for income taxes for the fiscal years 2021, 2020 and 2019 consists of the following (in thousands): Fiscal Year Ended September 30, 2021 2020 2019 Current: Federal $ 64,526 $ 22,282 $ 59,855 Foreign 14,869 6,120 10,132 State 14,364 4,730 15,339 Total current portion 93,759 33,132 85,326 Deferred: Federal (6,054 ) 10,177 4,905 Foreign (1,195 ) 1,321 (1,498 ) State (1,434 ) 2,092 1,808 Total deferred portion (8,683 ) 13,590 5,215 Total provision for income taxes $ 85,076 $ 46,722 $ 90,541
Schedule of the difference between U.S. statutory federal income tax rate and the effective income tax rate	The difference between the U.S. statutory federal income tax rate and the effective income tax rate is summarized below: Fiscal Year Ended September 30, 2021 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 3.0 3.4 3.4 Effect of foreign operations 0.8 (0.4 ) 0.2 Foreign valuation allowances 0.6 4.6 (0.2 ) Tax law change - GILTI — (1.0 ) — Deemed repatriation tax — 0.2 (0.3 ) Share-based payment awards 0.6 1.2 0.6 Other, net 0.2 0.2 0.3 Effective tax rate 26.2 % 29.2 % 25.0 %
Schedule of the tax effects of temporary differences that give rise to the Company's deferred tax assets and liabilities	The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands): September 30, 2021 2020 Deferred tax assets attributable to: Foreign loss carryforwards $ 34,007 $ 35,091 Accrued liabilities 18,662 8,871 Share-based compensation expense 8,392 8,988 U.S. foreign tax credits 11,199 11,199 U.S. federal social security tax deferral 3,089 4,038 Inventory adjustments 2,754 2,131 Other 2,984 1,101 Total deferred tax assets 81,087 71,419 Valuation allowance (51,810 ) (50,543 ) Total deferred tax assets, net 29,277 20,876 Deferred tax liabilities attributable to: Depreciation and amortization 109,038 107,672 Net deferred tax liability $ 79,761 $ 86,796
Schedule of changes in the amount of unrecognized tax benefits	The changes in the amount of unrecognized tax benefits are as follows (in thousands): Fiscal Year Ended September 30, 2021 2020 Balance at beginning of the fiscal year $ 2,053 $ 2,000 Increases related to prior year tax positions 5 — Decreases related to prior year tax positions (2 ) (4 ) Increases related to current year tax positions 195 250 Lapse of statute (159 ) (193 ) Balance at end of fiscal year $ 2,092 $ 2,053

Segments and Disaggregated Re_2

Segments and Disaggregated Revenue (Tables)	12 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Schedule of segment data	Segment data for the fiscal years 2021, 2020 and 2019 are as follows (in thousands): 2021 2020 2019 Net sales (for the fiscal year indicated): SBS $ 2,278,382 $ 2,080,703 $ 2,293,094 BSG 1,596,615 1,433,627 1,583,317 Total $ 3,874,997 $ 3,514,330 $ 3,876,411 Earnings before provision for income taxes: Segment operating earnings: SBS $ 417,658 $ 237,588 $ 366,412 BSG 205,078 194,206 239,572 Segment operating earnings 622,736 431,794 605,984 Unallocated expenses 199,682 159,009 148,193 Restructuring 4,611 14,025 (682 ) Consolidated operating earnings 418,443 258,760 458,473 Interest expense 93,509 98,793 96,309 Earnings before provision for income taxes $ 324,934 $ 159,967 $ 362,164 Depreciation and amortization: SBS $ 61,887 $ 65,207 $ 65,561 BSG 28,597 29,324 28,568 Corporate 11,717 12,248 13,529 Total $ 102,201 $ 106,779 $ 107,658 Payments for property and equipment: SBS $ 43,165 $ 73,130 $ 69,802 BSG 24,880 27,338 18,997 Corporate 5,859 10,390 18,956 Total $ 73,904 $ 110,858 $ 107,755 Total assets (as of September 30): SBS $ 1,235,427 $ 1,370,745 $ 973,304 BSG 1,179,263 1,106,801 1,012,336 Sub-total 2,414,690 2,477,546 1,985,640 Corporate 432,442 417,601 112,806 Total $ 2,847,132 $ 2,895,147 $ 2,098,446
Schedule of geographic area information	Certain geographic data is as follows (in thousands): 2021 2020 2019 Net sales (for the fiscal year indicated): United States $ 3,228,091 $ 2,914,171 $ 3,169,821 Other countries 646,906 600,159 706,590 Total $ 3,874,997 $ 3,514,330 $ 3,876,411 Long-lived assets (as of September 30): United States $ 267,839 $ 264,936 $ 259,815 United Kingdom 15,089 20,183 24,476 Other countries 24,449 29,910 35,337 Total $ 307,377 $ 315,029 $ 319,628
Schedule of disaggregation of segment revenues by merchandise category and sales channels	The following tables disaggregate our segment revenues by merchandise category: Fiscal Year Ended September 30, SBS 2021 2020 2019 Hair color 35.6 % 33.0 % 29.4 % Hair care 18.9 % 18.9 % 20.4 % Skin and nail care 13.9 % 14.3 % 14.8 % Styling tools 12.3 % 12.8 % 13.5 % Salon supplies and accessories 7.6 % 8.1 % 6.6 % Textured hair 5.9 % 5.8 % 7.1 % Other beauty items 5.8 % 7.1 % 8.2 % Total 100.0 % 100.0 % 100.0 % Fiscal Year Ended September 30, BSG 2021 2020 2019 Hair color 43.7 % 40.6 % 39.5 % Hair care 36.8 % 35.0 % 35.1 % Skin and nail care 7.0 % 8.0 % 8.1 % Styling tools 6.4 % 6.2 % 3.4 % Other beauty items 2.3 % 3.4 % 6.3 % Promotional items 3.8 % 6.8 % 7.6 % Total 100.0 % 100.0 % 100.0 % The following table disaggregates our segment revenue by sales channels: SBS BSG Fiscal Year Ended September 30, Fiscal Year Ended September 30, 2021 2020 2019 2021 2020 2019 Company-operated stores 94.1 % 91.8 % 96.9 % 69.1 % 68.9 % 69.4 % E-commerce 5.9 % 8.0 % 2.8 % 9.2 % 8.7 % 4.8 % Franchise stores — 0.2 % 0.3 % 7.5 % 7.1 % 7.6 % Distributor sales consultants — — — 14.2 % 15.3 % 18.2 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

Restructuring (Tables)

Restructuring (Tables)	12 Months Ended
	Sep. 30, 2021
Summary of restructuring expense and gains	Restructuring expense and gains for the fiscal years ended September 30, 2021, 2020 and 2019, are as follows (in thousands): 2021 2020 2019 Project Surge $ 1,451 $ 1,511 $ — Transformation Plan 3,160 12,514 (682 ) Total expense (gain) $ 4,611 $ 14,025 $ (682 )
Project Surge
Schedule of restructuring	The liability related to Project Surge, which is included in accrued liabilities on our consolidated balance sheets, is as follows (in thousands): Project Surge Liability at September 30, 2020 Expenses Cash Payments Adjustments Liability at September 30, 2021 Workforce reductions $ — $ 1,061 $ 981 $ — $ 80 Facility closures — — — — — Other — 390 390 — — Total $ — $ 1,451 $ 1,371 $ — $ 80
Supply Chain Modernization
Schedule of restructuring	The liability related to the Transformation Plan, which is included in accrued liabilities on our consolidated balance sheets, is as follows (in thousands): Transformation Plan Liability at September 30, 2020 Expenses Cash Payments Adjustments Liability at September 30, 2021 Workforce reductions $ 65 $ 1,327 $ 674 $ — $ 718 Facility closures — 790 368 — 422 Other — 1,043 1,043 — — Total $ 65 $ 3,160 $ 2,085 $ — $ 1,140

Significant Accounting Polici_4

Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Trade Accounts Receivable and Accounts Receivable, Other
Allowance for Doubtful Accounts	$ 1.1	$ 1.9
Selling, general and administrative expenses
Property Plant and Equipment
Depreciation expense	$ 93.2	$ 95.5	$ 96.1

Significant Accounting Polici_5

Significant Accounting Policies - Lease Accounting (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases [Line Items]
Lease extended term	five years
Selling, general and administrative expenses
Leases [Line Items]
Impairment on operating lease assets and lease hold improvements		$ 1.9
Minimum
Leases [Line Items]
Lease term	5 years
Maximum
Leases [Line Items]
Lease term	10 years

Significant Accounting Polici_6

Significant Accounting Policies - Summary of Property and Equipment Balances and Estimated Useful Lives (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 1,074,780	$ 1,009,738
Accumulated depreciation and amortization	(767,403)	(694,709)
Total property and equipment, net	307,377	315,029	$ 319,628
Land
Property Plant And Equipment [Line Items]
Total property and equipment, gross	10,119	10,120
Buildings and building improvements
Property Plant And Equipment [Line Items]
Total property and equipment, gross	57,049	54,521
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment, gross	326,595	304,404
Furniture, fixtures and equipment
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 681,017	$ 640,693
Minimum | Buildings and building improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Minimum | Leasehold improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	2 years
Minimum | Furniture, fixtures and equipment
Property Plant And Equipment [Line Items]
Estimated useful lives	2 years
Maximum | Buildings and building improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	40 years
Maximum | Leasehold improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	10 years
Maximum | Furniture, fixtures and equipment
Property Plant And Equipment [Line Items]
Estimated useful lives	10 years

Significant Accounting Polici_7

Significant Accounting Policies - Goodwill and Indefinite-lived Intangible Assets (Details) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Goodwill and Indefinite-lived Intangible Assets
Impairment losses in connection with the goodwill	$ 0	$ 0	$ 0
Impairment of intangible assets with indefinite lives	$ 0	$ 0	$ 0

Significant Accounting Polici_8

Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Revenue recognition payment terms	30 days

Significant Accounting Polici_9

Significant Accounting Policies - Summary of Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Contract With Customer Liability [Line Items]
Total liability	$ 16,744	$ 13,947
Gift Cards | Accrued Liabilities
Contract With Customer Liability [Line Items]
Total liability	5,299	5,066
Rewards Loyalty Program | Accrued Liabilities
Contract With Customer Liability [Line Items]
Total liability	$ 11,445	$ 8,881

Significant Accounting Polic_10

Significant Accounting Policies - Schedule of Changes to Contract Liabilities (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2021USD ($)
Contract With Customer Liability [Abstract]
Beginning balance	$ 13,947
Loyalty points and gift cards issued but not redeemed, net of estimated breakage	15,226
Revenue recognized from beginning liability	(12,429)
Ending balance	$ 16,744

Significant Accounting Polic_11

Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Advertising Costs
Advertising costs	$ 70.9	$ 72.7	$ 73.3

Accounting Changes and Recent_3

Accounting Changes and Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Accounting Changes
Operating lease liability	$ 560,381
Operating lease asset	537,673	$ 525,634
Accumulated earnings	356,967	$ 117,109
ASU 16-02
Accounting Changes
Operating lease liability	523,500
Operating lease asset	513,900
Accumulated earnings	$ 100

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Long-term debt
Long-term debt, Carrying Value	$ 1,392,961	$ 1,813,168
Long-term debt, Fair Value	1,431,086	1,837,104
Level 1 | Senior notes
Long-term debt
Long-term debt, Carrying Value	979,961	1,177,380
Long-term debt, Fair Value	1,019,635	1,217,707
Level 2 | Other Long-Term Debt
Long-term debt
Long-term debt, Carrying Value	413,000	635,788
Long-term debt, Fair Value	411,451	619,397
Fair value measurement on recurring basis
Financial Assets
Total assets	35	194,639
Fair value measurement on recurring basis | Level 1 | Cash and cash equivalents
Financial Assets
Cash equivalents		194,612
Fair value measurement on recurring basis | Level 2 | Other assets
Financial Assets
Interest rate caps	$ 35	$ 27

Accumulated Stockholders' Equ_3

Accumulated Stockholders' Equity - Share Repurchase Program (Details) - USD ($)	1 Months Ended	12 Months Ended
	Aug. 31, 2017	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Stockholders Equity Note [Abstract]
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
Number of shares surrendered by grantees to satisfy personal income tax withholdings obligations upon vesting of equity-based awards		71,000	159,000	209,000
Shares surrendered by grantees to satisfy personal income tax withholdings obligations upon vesting of equity-based awards, value		$ 1,000,000	$ 300,000	$ 800,000

Accumulated Stockholders' Equ_4

Accumulated Stockholders' Equity - Schedule of Shares Repurchased and Subsequently Retired (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Stockholders Equity Note [Abstract]
Number of shares repurchased	4,702	3,562
Total cost of share repurchased	$ 61,357	$ 46,621

Accumulated Stockholders' Equ_5

Accumulated Stockholders' Equity - Change in AOCL (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	$ 15,443	$ (60,323)
Balance	280,741	15,443
Interest rate caps
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(3,003)	(3,201)
Other comprehensive income (loss) before reclassifications, net of tax	(282)	(411)
Reclassification to net earnings, net of tax	1,200	609
Balance	(2,085)	(3,003)
Foreign exchange contracts
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	411	(154)
Other comprehensive income (loss) before reclassifications, net of tax	(1,070)	(531)
Reclassification to net earnings, net of tax	257	1,096
Balance	(402)	411
Foreign currency translation adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(102,111)	(113,932)
Other comprehensive income (loss) before reclassifications, net of tax	9,957	11,821
Balance	(92,154)	(102,111)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	(104,703)	(117,287)
Other comprehensive income (loss) before reclassifications, net of tax	8,605	10,879
Reclassification to net earnings, net of tax	1,457	1,705
Balance	$ (94,641)	$ (104,703)

Weighted-Average Shares (Detail

Weighted-Average Shares (Details) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share Reconciliation:
Weighted-average basic shares	112,653	113,881	119,636
Dilutive securities:
Stock option and stock award programs	1,559	799	647
Weighted-average diluted shares	114,212	114,680	120,283

Weighted-Average Shares - Addit

Weighted-Average Shares - Additional Information (Details) - shares shares in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Common stock potentially outstanding but not included in the computation of diluted earnings per share
Options to purchase shares not included in the computation of diluted earnings per share because the options were anti-dilutive (in shares)	3.9	4.7	4.7

Share-Based Payments - Addition

Share-Based Payments - Additional Information (Details) - $ / shares shares in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Share-based Payment Arrangement, Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of awards	$ 3.85	$ 5.66	$ 5.86
Omnibus Plans
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized to issues under share-based payments	8
Restricted stock units, retention period	6 months
Omnibus Plans | Performance-based Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Fair value of awards	$ 15.33	$ 16.65	$ 17.22
Performance period (in years)	3 years
Vesting period (in years)	3 years
Omnibus Plans | Performance-based Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of earnings	0.00%	0.00%	0.00%
Omnibus Plans | Performance-based Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of earnings	200.00%	200.00%	200.00%
Omnibus Plans | Market Based Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance period (in years)	3 years
Vesting period (in years)	3 years
Omnibus Plans | Market Based Awards | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of earnings	0.00%
Omnibus Plans | Market Based Awards | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of earnings	200.00%
Omnibus Plans | Share-based Payment Arrangement, Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	3 years
Expiration period	10 years
Omnibus Plans | Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	3 years
Omnibus Plans | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year

Share-Based Payments (Details)

Share-Based Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation expense	$ 11,656	$ 8,426	$ 9,180
Income tax benefit related to share-based compensation expense	$ 2,834	$ 2,059	$ 2,357

Share-Based Payments - Performa

Share-Based Payments - Performance-Based Awards (Details) - Performance-based Awards $ / shares in Units, shares in Thousands	12 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Share-Based Payments
Payout percentage (in percentage)	100.00%
Performance Unit Awards (in shares)
Unvested at the beginning of the period (in shares) | shares	542
Granted (in shares) | shares	142
Forfeited (in shares) | shares	(382)
Unvested at the end of the period (in shares) | shares	302
Performance Unit Awards (in dollars per share)
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 17.06
Granted (in dollars per share) | $ / shares	15.33
Forfeited (in dollars per share) | $ / shares	17.16
Unvested at the end of the period (in dollars per share) | $ / shares	$ 16.59
Total unrecognized compensation expenses related to unvested awards | $	$ 1,200
Weighted average period for recognition of unvested awards	1 year 6 months

Share-Based Payments - Market-B

Share-Based Payments - Market-Based Awards (Details) - Market Based Awards $ / shares in Units, shares in Thousands	12 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Share-Based Payments
Granted (in shares) | shares	142
Forfeited (in shares) | shares	(52)
Unvested at the end of the period (in shares) | shares	90
Granted (in dollars per share) | $ / shares	$ 20.96
Forfeited (in dollars per share) | $ / shares	20.96
Unvested at the end of the period (in dollars per share) | $ / shares	$ 20.96
Total unrecognized compensation expenses related to unvested awards | $	$ 1,400
Weighted average period for recognition of unvested awards	2 years 1 month 6 days

Share-Based Payments - Schedule

Share-Based Payments - Schedule of weighted average assumptions for valuation of rTSR (Details) - Market Based Awards	12 Months Ended
	Sep. 30, 2021
Weighted average assumptions relating to the valuation of stock options
Expected term (in years)	2 years 8 months 12 days
Expected volatility	59.40%
Risk-free interest rate	0.20%
Dividend yield	0.00%

Share-Based Payments - Service-

Share-Based Payments - Service-Based Awards and Stock Option Awards (Details) - Stock Option Awards - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Stock Options, Number of Outstanding Options
Outstanding at the beginning of the period (in shares)	4,738
Granted (in shares)	1,638
Exercised (in shares)	(268)
Forfeited or expired (in shares)	(943)
Outstanding at the end of the period (in shares)	5,165	4,738
Exercisable at the end of the period (in shares)	3,653
Stock Options, Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 20.92
Granted (in dollars per share)	9.13
Exercised (in dollars per share)	17.20
Forfeited or expired (in dollars per share)	14.96
Outstanding at the end of the period (in dollars per share)	18.46	$ 20.92
Exercisable at the end of the period (in dollars per share)	$ 21.49
Stock Options, Weighted Average Remaining Contractual Term
Weighted average remaining contractual term (in years)	4 years 7 months 6 days	6 years 2 months 12 days
Exercisable at September 30, 2021	2 years 10 months 24 days
Stock Options, Aggregate Intrinsic Value
Outstanding balance at period end (in dollars)	$ 9,627
Exercisable at the end of the period (in dollars)	$ 983

Share-Based Payments - Schedu_2

Share-Based Payments - Schedule of weighted average assumptions for valuation of stock options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Weighted average assumptions relating to the valuation of stock options
Proceeds from exercises of stock options	$ 3,568	$ 2,792	$ 2,160
Stock Option Awards
Weighted average assumptions relating to the valuation of stock options
Expected term (in years)	6 years	5 years	5 years
Expected volatility	44.50%	35.80%	30.50%
Risk-free interest rate	0.40%	1.70%	3.00%
Dividend yield	0.00%	0.00%	0.00%
Weighted average fair value of the stock options issued (in dollars per share)	$ 3.85	$ 5.66	$ 5.86
Aggregate fair value of stock options	$ 3,400	$ 2,700	$ 5,100
Aggregate intrinsic value of options exercised	700	500	900
Proceeds from exercises of stock options	4,600	3,000	2,200
Tax benefit realized for the tax deductions of stock option exercises	100	$ 100	$ 200
Total unrecognized compensation expenses related to unvested awards	$ 3,800
Weighted average period for recognition of unvested awards	1 year 9 months 18 days

Share-Based Payments - Restrict

Share-Based Payments - Restricted Stock Awards (Details) - Restricted Stock Awards $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Restricted stock (in shares)
Unvested at the beginning of the period (in shares) | shares	419
Vested (in shares) | shares	(107)
Forfeited (in shares) | shares	(87)
Unvested at the end of the period (in shares) | shares	225
Restricted Stock (in dollars per share)
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 16.32
Vested (in dollar per share) | $ / shares	15.99
Forfeited (in dollars per share) | $ / shares	16.45
Unvested at the end of the period (in dollars per share) | $ / shares	$ 16.44
Total unrecognized compensation expenses related to unvested awards | $	$ 1
Weighted average period for recognition of unvested awards	1 year 1 month 6 days

Share-Based Payments - Restri_2

Share-Based Payments - Restricted Stock Units (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Restricted stock (in shares)
Unvested at the beginning of the period (in shares) | shares	91
Granted (in shares) | shares	819
Vested (in shares) | shares	(140)
Forfeited (in shares) | shares	(202)
Unvested at the end of the period (in shares) | shares	568
Restricted Stock (in dollars per share)
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 16.47
Granted (in dollars per share) | $ / shares	9.32
Vested (in dollar per share) | $ / shares	13.90
Forfeited (in dollars per share) | $ / shares	9.09
Unvested at the end of the period (in dollars per share) | $ / shares	$ 9.41
Total unrecognized compensation expenses related to unvested awards | $	$ 2.6
Weighted average period for recognition of unvested awards	2 years

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Assets:
Operating lease assets	$ 537,673	$ 525,634
Finance lease	$ 2,556	$ 2,888
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	http://fasb.org/us-gaap/2021-01-31#PropertyPlantAndEquipmentNet	http://fasb.org/us-gaap/2021-01-31#PropertyPlantAndEquipmentNet
Total lease assets	$ 540,229	$ 528,522
Current:
Current operating lease liabilities	156,234	153,267
Finance lease	$ 194	$ 180
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	http://fasb.org/us-gaap/2021-01-31#LongTermDebtCurrent	http://fasb.org/us-gaap/2021-01-31#LongTermDebtCurrent
Long-term:
Long-term operating lease liabilities	$ 404,147	$ 394,375
Finance lease	$ 485	$ 684
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	us-gaap:LongTermDebtNoncurrent	us-gaap:LongTermDebtNoncurrent
Total lease liabilities	$ 561,060	$ 548,506

Leases - Summary of Lease Costs

Leases - Summary of Lease Costs, Net of Immaterial Sublease Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Lessee Lease Description [Line Items]
Total lease costs	$ 247,623	$ 238,014
Cost of Goods Sold and Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Operating lease costs	193,583	192,484
Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Amortization of leased assets	328	303
Variable lease costs	53,698	45,191
Interest Expense
Lessee Lease Description [Line Items]
Interest on lease liabilities	$ 14	$ 36

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Leases [Line Items]
Operating lease liability	$ 560,381
Retail Stores
Leases [Line Items]
Operating lease liability	27,800
COVID-19
Leases [Line Items]
Benefits for rent abatements	$ 3,100	$ 11,700

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) $ in Thousands	Sep. 30, 2021USD ($)
Operating leases
2022	$ 173,990
2023	135,971
2024	98,874
2025	69,565
2026	48,331
Thereafter	100,415
Total undiscounted lease payments	627,146
Less: imputed interest	66,765
Present value of lease liabilities	560,381
Finance leases
2022	197
2023	197
2024	191
2025	158
Total undiscounted lease payments	743
Less: imputed interest	64
Present value of lease liabilities	$ 679

Leases - Summary of Other Lease

Leases - Summary of Other Lease Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows – operating leases	$ 189,012	$ 183,808
Operating cash flows – finance leases	14	36
Financing cash flows – finance leases	202	34
Supplemental non-cash information on lease liabilities:
Lease assets obtained in exchange for new operating lease liabilities	180,945	204,245
Lease assets obtained in exchange for new finance lease liabilities	$ 22	$ 4
Weighted-average remaining lease term (in years):
Operating leases	5 years 1 month 6 days	5 years 1 month 6 days
Finance leases	3 years 8 months 12 days	3 years 9 months 18 days
Weighted-average discount rate:
Operating leases	4.50%	4.40%
Finance leases	0.30%	0.30%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of changes in carrying amounts of goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Change in the carrying amounts of goodwill
Balance at the beginning of the period	$ 540,038	$ 530,786
Acquisitions	(1,351)	5,342
Foreign currency translation	2,522	3,910
Balance at the end of the period	541,209	540,038
Sally Beauty Supply
Change in the carrying amounts of goodwill
Balance at the beginning of the period	81,186	76,905
Acquisitions	231
Foreign currency translation	743	4,281
Balance at the end of the period	82,160	81,186
Beauty Systems Group
Change in the carrying amounts of goodwill
Balance at the beginning of the period	458,852	453,881
Acquisitions	(1,582)	5,342
Foreign currency translation	1,779	(371)
Balance at the end of the period	$ 459,049	$ 458,852

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of other intangible assets, excluding goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	$ 49,519	$ 77,596
Definite-lived Intangible assets, Accumulated Amortization	(38,957)	(63,491)
Definite-lived Intangible assets, Net	10,562	14,105
Total intangible assets, excluding goodwill,Gross Carrying Amount	94,489	121,774
Total intangible assets, excluding goodwill, Net	55,532	58,283
Trade Names
Indefinite and Finite Lived Intangible Assets by Major Class
Indefinite-lived Intangible assets, Net	44,970	44,178
Customer Relationships
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	32,621	47,787
Definite-lived Intangible assets, Accumulated Amortization	(26,246)	(38,876)
Definite-lived Intangible assets, Net	6,375	8,911
Distribution Rights
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	11,660	24,509
Definite-lived Intangible assets, Accumulated Amortization	(9,251)	(21,570)
Definite-lived Intangible assets, Net	2,409	2,939
Other Intangible Assets
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived Intangible assets, Gross Carrying Amount	5,238	5,300
Definite-lived Intangible assets, Accumulated Amortization	(3,460)	(3,045)
Definite-lived Intangible assets, Net	$ 1,778	$ 2,255

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Indefinite and Finite Lived Intangible Assets by Major Class
Amortization expense	$ 6.6	$ 9	$ 11.3
Minimum
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived intangible assets, useful life	3 years
Maximum
Indefinite and Finite Lived Intangible Assets by Major Class
Definite-lived intangible assets, useful life	10 years

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Expected future amortization expense related to definite-lived intangible assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Estimated future amortization expense related to intangible assets subject to amortization:
2022	$ 4,017
2023	2,867
2024	1,894
2025	1,439
2026	345
Definite-lived Intangible assets, Net	$ 10,562	$ 14,105

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Accrued Liabilities
Compensation and benefits	$ 73,344	$ 54,749
Interest payable	24,101	29,048
Deferred revenue	18,543	16,728
Rental obligations	10,501	8,964
Insurance reserves	5,934	4,796
Property and other taxes	3,853	4,109
Operating accruals and other	69,879	52,271
Total accrued liabilities	$ 206,155	$ 170,665

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2021	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Outstanding letters of credit	$ 18.3	$ 18.6

Debt - Short-term Debt (Details

Debt - Short-term Debt (Details) - ABL facility - USD ($)	1 Months Ended
	May 31, 2021	Sep. 30, 2021	May 30, 2021	Sep. 30, 2020
Debt Instruments
Outstanding borrowing	$ 500,000,000	$ 0	$ 600,000,000	$ 0
Debt instrument term	5 years
Debt instrument, maturity date	May 11, 2026
Debt issuance cost before amortization	$ 1,300,000
Line of credit facility, commitment fee percentage	0.20%
Revolving credit facility		$ 468,500,000
Prime | Minimum
Debt Instruments
Percentage points added to the reference rate	0.25%
Prime | Maximum
Debt Instruments
Percentage points added to the reference rate	0.50%
LIBOR | Minimum
Debt Instruments
Percentage points added to the reference rate	1.25%
LIBOR | Maximum
Debt Instruments
Percentage points added to the reference rate	1.50%

Debt - Details of Long-term Deb

Debt - Details of Long-term Debt Table (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2021	Apr. 01, 2021
Debt Instruments
Total	$ 1,813,168	$ 1,392,961
Variable-rate tranche
Debt Instruments
Total	$ 422,625	413,000
Variable-rate tranche | LIBOR
Debt Instruments
Percentage points added to the reference rate	2.25%
Fixed-rate tranche
Debt Instruments
Total	$ 213,163
Interest rate (as a percent)	4.50%
Senior notes due Apr. 2025
Debt Instruments
Total	$ 300,000	300,000
Interest rate (as a percent)	8.75%
Senior notes due Nov. 2023
Debt Instruments
Total	$ 197,419
Interest rate (as a percent)	5.50%		5.50%
Senior notes due Dec. 2025
Debt Instruments
Total	$ 679,961	$ 679,961
Interest rate (as a percent)	5.625%

Debt - Details of Long-term D_2

Debt - Details of Long-term Debt Table - Total debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
Total	$ 1,392,961	$ 1,813,168
Plus: capital lease obligations	679	864
Less: unamortized debt issuance costs and discount, net	10,916	16,955
Total debt	$ 1,382,724	$ 1,797,077

Debt - Details of Long-term D_3

Debt - Details of Long-term Debt Table - Total long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
Total debt	$ 1,382,724	$ 1,797,077
Less: current maturities	194	180
Total long-term debt	$ 1,382,530	$ 1,796,897

Debt - Maturities of the Compan

Debt - Maturities of the Company's debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020
Fiscal Year:
2024	$ 413,000
2025	300,000
2026	679,961
Total	$ 1,392,961	$ 1,813,168

Debt - Term loan (Details)

Debt - Term loan (Details) - USD ($) $ in Thousands	1 Months Ended				12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Jan. 31, 2021	Jul. 31, 2017	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Debt Instruments
Remaining aggregate outstanding principal amount paid					$ 422,258	$ 882,921	$ 777,538
Loss on extinguishment of debt from write-off of unamortized deferred financing costs					$ (4,260)	$ (38)	$ (951)
Term Loan B
Debt Instruments
Remaining aggregate outstanding principal amount paid	$ 1,400	$ 8,300	$ 213,200
Loss on extinguishment of debt from write-off of unamortized deferred financing costs		$ (100)	$ (1,400)
Sally Holdings, LLC | Term Loan B
Debt Instruments
Debt instrument term				7 years
Debt instrument, face amount				$ 850,000
Debt instrument, maturity date				Jul. 5, 2024

Debt - Senior Notes (Details)

Debt - Senior Notes (Details) - USD ($) $ in Thousands	Apr. 01, 2021	Apr. 24, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Debt Instruments
Loss on extinguishment of debt from write-off of unamortized deferred financing costs			$ (4,260)	$ (38)	$ (951)
Senior notes due Nov. 2023
Debt Instruments
Debt instrument, face amount	$ 197,400
Interest rate	5.50%			5.50%
Call premium	$ 1,800
Loss on extinguishment of debt from write-off of unamortized deferred financing costs	(2,800)
Write off of unamortized debt issuance costs	$ 1,000
Senior secured second lien notes due 2025
Debt Instruments
Debt instrument, face amount		$ 300,000
Interest rate		8.75%
Net proceeds from offering		$ 295,500

Derivative Instruments - (Detai

Derivative Instruments - (Details)	12 Months Ended
	Sep. 30, 2021USD ($)instrument	Jul. 31, 2017USD ($)derivative
Derivative Instruments
Number of derivative instruments held | instrument	0
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC
Derivative Instruments
Notional Amount		$ 550,000,000
Derivative instruments, expiration date	Jun. 30, 2023
Number of interest rate caps | derivative		2
Interest rate caps | Term loan B variable tranche | Sally Holdings, LLC
Derivative Instruments
Interest rate caps designated as cash flow hedges to be reclassified in to interest expense over next 12 months	$ 1,700,000
Reclassified loss from AOCL, net	1,200,000
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Forwards
Derivative Instruments
Foreign currency forwards designated as cash flow hedges to be reclassified net losses into cost of goods sold over next 12 months	500,000
Foreign currency forwards designated as cash flow hedges to be reclassified in to cost of goods sold	$ 300,000

401(k) and Profit Sharing Plan

401(k) and Profit Sharing Plan (Details) - USD ($)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, expense recognized	$ 6,200,000	$ 5,800,000	$ 6,200,000
Defined Contribution Plan, Plan Name [Extensible List]	U.S. 401(k) Plan
Profit sharing plan, expense recognized	$ 0	$ 0	$ 0
U.S. 401(k) Plan
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Plan Name [Extensible List]	U.S. 401(k) Plan
Puerto Rico 401(k) Plan
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Plan Name [Extensible List]	Puerto Rico 401(k) Plan
Defined Contribution Plan, minimum employment period for contribution to plan	1 year

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Reversal amount of tax benefit as a result of change in the regulations	$ 2,500
Current:
Federal		$ 64,526	$ 22,282	$ 59,855
Foreign		14,869	6,120	10,132
State		14,364	4,730	15,339
Total current portion		93,759	33,132	85,326
Deferred:
Federal		(6,054)	10,177	4,905
Foreign		(1,195)	1,321	(1,498)
State		(1,434)	2,092	1,808
Total deferred portion		(8,683)	13,590	5,215
Total provision for income taxes		$ 85,076	$ 46,722	$ 90,541

Income Taxes - Schedule of Diff

Income Taxes - Schedule of Difference Between US Federal Statutory Income Tax Rate and Effective Income Tax Rate (Details)	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit	3.00%	3.40%	3.40%
Effect of foreign operations	0.80%	(0.40%)	0.20%
Foreign valuation allowances	0.60%	4.60%	(0.20%)
Tax law change - GILTI		(1.00%)
Deemed repatriation tax		0.20%	(0.30%)
Share-based payment awards	0.60%	1.20%	0.60%
Other, net	0.20%	0.20%	0.30%
Effective tax rate	26.20%	29.20%	25.00%

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Deferred tax assets attributable to:
Foreign loss carryforwards	$ 34,007	$ 35,091
Accrued liabilities	18,662	8,871
Share-based compensation expense	8,392	8,988
U.S. foreign tax credits	11,199	11,199
U.S. federal social security tax deferral	3,089	4,038
Inventory adjustments	2,754	2,131
Other	2,984	1,101
Total deferred tax assets	81,087	71,419
Valuation allowance	(51,810)	(50,543)
Total deferred tax assets, net	29,277	20,876
Deferred tax liabilities attributable to:
Depreciation and amortization	109,038	107,672
Net deferred tax liability	79,761	86,796
Domestic earnings before provision for income taxes	288,000	168,000	$ 328,300
Foreign earnings before provision for income (loss) taxes	36,900	(8,000)	$ 33,900
Total operating loss carry-forward	125,700	128,200
Operating loss carry-forward, subject to valuation allowance	109,400	111,700
Amount of operating loss carry-forwards with an expiration date	3,000
Amount of operating loss carry-forwards without an expiration date	122,700
Total tax credit carryforwards	14,100	13,800
Expiring tax credit carryforwards	1,200
Expiring tax credit carryforwards	300
Non-expiring tax credit carryforwards	1,400
Total Tax credit carryforwards, subject to a valuation allowance	12,600	$ 12,600
U.S. foreign
Deferred tax liabilities attributable to:
Expiring tax credit carryforwards	$ 11,200

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of the changes in the amount of unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of the changes in the amount of unrecognized tax benefits
Balance at beginning of the fiscal year	$ 2,053	$ 2,000
Increases related to prior year tax positions	5
Decreases related to prior year tax positions	(2)	(4)
Increases related to current year tax positions	195	250
Lapse of statute	(159)	(193)
Balance at end of fiscal year	2,092	2,053
Total unrecognized tax benefits of accrued interest and penalties	$ 300	$ 200

Acquisitions (Details)

Acquisitions (Details) $ in Millions	Sep. 28, 2020USD ($)store	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)
Business Acquisition [Line Items]
Intangible assets subject to amortization		$ 0.6	$ 3.9
Ami-Co
Business Acquisition [Line Items]
Date of acquisition		Sep. 28, 2020
Number of beauty supply stores | store	10
Cost of acquisition	$ 8.9
Goodwill not expected to be deducted for tax purposes	$ 5.3
Intangible assets subject to amortization		$ 2.5
Ami-Co | Holdbacks
Business Acquisition [Line Items]
Cost of acquisition		1.6
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Immaterial acquisition		$ 0.7	$ 5.7

Segments and Disaggregated Re_3

Segments and Disaggregated Revenue (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2021USD ($)segment	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Segments
Number of reportable segments | segment	2
Net sales:
Total net sales	$ 3,874,997	$ 3,514,330	$ 3,876,411
Segment operating earnings:
Segment operating earnings	418,443	258,760	458,473
Restructuring	4,611	14,025	(682)
Interest expense	93,509	98,793	96,309
Earnings before provision for income taxes	324,934	159,967	362,164
Depreciation and amortization:
Depreciation and amortization	102,201	106,779	107,658
Payments for property and equipment:
Payments for property and equipment	73,904	110,858	107,755
Total assets:
Assets	$ 2,847,132	$ 2,895,147	$ 2,098,446
Number of single customer accounted for ten percent or more of revenue	10.00%	10.00%	10.00%
Long-lived assets:
Long-lived assets	$ 307,377	$ 315,029	$ 319,628
United States
Net sales:
Total net sales	3,228,091	2,914,171	3,169,821
Long-lived assets:
Long-lived assets	267,839	264,936	259,815
Foreign
Net sales:
Total net sales	646,906	600,159	706,590
United Kingdom
Long-lived assets:
Long-lived assets	15,089	20,183	24,476
Other countries
Long-lived assets:
Long-lived assets	24,449	29,910	35,337
Operating segments
Segment operating earnings:
Segment operating earnings	622,736	431,794	605,984
Total assets:
Assets	2,414,690	2,477,546	1,985,640
Corporate
Segment operating earnings:
Unallocated expenses	199,682	159,009	148,193
Depreciation and amortization:
Depreciation and amortization	11,717	12,248	13,529
Payments for property and equipment:
Payments for property and equipment	5,859	10,390	18,956
Total assets:
Assets	432,442	417,601	112,806
Sally Beauty Supply
Net sales:
Total net sales	2,278,382	2,080,703	2,293,094
Depreciation and amortization:
Depreciation and amortization	61,887	65,207	65,561
Payments for property and equipment:
Payments for property and equipment	43,165	73,130	69,802
Sally Beauty Supply | Operating segments
Segment operating earnings:
Segment operating earnings	417,658	237,588	366,412
Total assets:
Assets	1,235,427	1,370,745	973,304
Beauty Systems Group
Net sales:
Total net sales	1,596,615	1,433,627	1,583,317
Depreciation and amortization:
Depreciation and amortization	28,597	29,324	28,568
Payments for property and equipment:
Payments for property and equipment	24,880	27,338	18,997
Beauty Systems Group | Operating segments
Segment operating earnings:
Segment operating earnings	205,078	194,206	239,572
Total assets:
Assets	$ 1,179,263	$ 1,106,801	$ 1,012,336

Segments and Disaggregated Re_4

Segments and Disaggregated Revenue - Schedule of Disaggregation of Net Sales by Segment (Details) - Sales Revenue, Net - Product Concentration Risk	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Sally Beauty Supply
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Sally Beauty Supply | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	35.60%	33.00%	29.40%
Sally Beauty Supply | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	18.90%	18.90%	20.40%
Sally Beauty Supply | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	13.90%	14.30%	14.80%
Sally Beauty Supply | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	12.30%	12.80%	13.50%
Sally Beauty Supply | Textured hair
Disaggregation Of Revenue [Line Items]
Percentage of net sales	5.90%	5.80%	7.10%
Sally Beauty Supply | Salon supplies and accessories
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.60%	8.10%	6.60%
Sally Beauty Supply | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	5.80%	7.10%	8.20%
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	94.10%	91.80%	96.90%
Sally Beauty Supply | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	5.90%	8.00%	2.80%
Sally Beauty Supply | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales		0.20%	0.30%
Beauty Systems Group
Disaggregation Of Revenue [Line Items]
Percentage of net sales	100.00%	100.00%	100.00%
Beauty Systems Group | Hair color
Disaggregation Of Revenue [Line Items]
Percentage of net sales	43.70%	40.60%	39.50%
Beauty Systems Group | Hair care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	36.80%	35.00%	35.10%
Beauty Systems Group | Skin and nail care
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.00%	8.00%	8.10%
Beauty Systems Group | Styling tools
Disaggregation Of Revenue [Line Items]
Percentage of net sales	6.40%	6.20%	3.40%
Beauty Systems Group | Other Beauty items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	2.30%	3.40%	6.30%
Beauty Systems Group | Promotional items
Disaggregation Of Revenue [Line Items]
Percentage of net sales	3.80%	6.80%	7.60%
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	69.10%	68.90%	69.40%
Beauty Systems Group | Sales channel, through intermediary | E-commerce
Disaggregation Of Revenue [Line Items]
Percentage of net sales	9.20%	8.70%	4.80%
Beauty Systems Group | Sales channel, through intermediary | Franchise stores
Disaggregation Of Revenue [Line Items]
Percentage of net sales	7.50%	7.10%	7.60%
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants
Disaggregation Of Revenue [Line Items]
Percentage of net sales	14.20%	15.30%	18.20%

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Expense and Gains (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 4,611	$ 14,025	$ (682)
Total expense (gain)	4,611	14,025	(682)
Project Surge
Restructuring Cost And Reserve [Line Items]
Restructuring expense	1,451	1,511
Restructuring charges	1,451
Transformation Plan
Restructuring Cost And Reserve [Line Items]
Restructuring charges	$ 3,160	$ 12,514	$ (682)

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Changes in restructuring reserve
Restructuring charges	$ 4,611	$ 14,025	$ (682)
Project Surge
Changes in restructuring reserve
Restructuring charges	1,451
Cash Payments	1,371
Restructuring reserve, ending balance	80
Project Surge | Corporate
Changes in restructuring reserve
Restructuring charges	500
Project Surge | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges	700
Project Surge | Beauty Systems Group
Changes in restructuring reserve
Restructuring charges	200
Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance	65
Restructuring charges	3,160	12,514	$ (682)
Cash Payments	2,085
Restructuring reserve, ending balance	1,140	65
Transformation Plan | Sally Beauty Supply
Changes in restructuring reserve
Restructuring charges		3,200
Cost related to inventory written down		1,400
Workforce reductions | Project Surge
Changes in restructuring reserve
Restructuring charges	1,061
Cash Payments	981
Restructuring reserve, ending balance	80
Workforce reductions | Transformation Plan
Changes in restructuring reserve
Restructuring reserve, beginning balance	65
Restructuring charges	1,327
Cash Payments	674
Restructuring reserve, ending balance	718	$ 65
Facility Closures | Transformation Plan
Changes in restructuring reserve
Restructuring charges	790
Cash Payments	368
Restructuring reserve, ending balance	422
Other | Project Surge
Changes in restructuring reserve
Restructuring charges	390
Cash Payments	390
Other | Transformation Plan
Changes in restructuring reserve
Restructuring charges	1,043
Cash Payments	$ 1,043