Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 11, 2022 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | SALLY BEAUTY HOLDINGS, INC. | ||
Entity Central Index Key | 0001368458 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2022 | ||
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 | $ 1,670,074,000 | ||
Entity Common Stock, Shares Outstanding | 107,044,981 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 1-33145 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-2257936 | ||
Entity Address, Address Line One | 3001 Colorado Boulevard | ||
Entity Address, City or Town | Denton | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 76210 | ||
City Area Code | 940 | ||
Local Phone Number | 898-7500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Dallas, Texas | ||
Auditor Firm ID | 185 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement relating to the registrant’s 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 70,558 | $ 400,959 |
Trade accounts receivable, net | 34,102 | 32,623 |
Accounts receivable, other | 38,175 | 33,958 |
Inventory | 936,374 | 871,349 |
Other current assets | 53,192 | 44,686 |
Total current assets | 1,132,401 | 1,383,575 |
Property and equipment, net | 297,876 | 307,377 |
Operating lease assets | 532,177 | 537,673 |
Goodwill | 526,066 | 541,209 |
Intangible assets, excluding goodwill, net | 50,315 | 55,532 |
Other assets | 38,032 | 21,766 |
Total assets | 2,576,867 | 2,847,132 |
Current liabilities: | ||
Current maturities of long-term debt | 68,658 | 194 |
Accounts payable | 275,717 | 291,632 |
Accrued liabilities | 161,065 | 206,155 |
Current operating lease liabilities | 157,734 | 156,234 |
Income taxes payable | 4,740 | 10,666 |
Total current liabilities | 667,914 | 664,881 |
Long-term debt | 1,083,043 | 1,382,530 |
Long-term operating lease liabilities | 424,762 | 404,147 |
Other liabilities | 22,427 | 29,056 |
Deferred income tax liabilities, net | 85,085 | 85,777 |
Total liabilities | 2,283,231 | 2,566,391 |
Stockholders’ equity: | ||
Common stock, $0.01 par value. Authorized 500,000 shares; 107,024 and 113,138 shares issued and 106,970 and 112,913 shares outstanding at September 30, 2022 and 2021, respectively | 1,070 | 1,129 |
Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued | ||
Additional paid-in capital | 4,241 | 17,286 |
Accumulated earnings | 440,172 | 356,967 |
Accumulated other comprehensive loss, net of tax | (151,847) | (94,641) |
Total stockholders’ equity | 293,636 | 280,741 |
Total liabilities and stockholders’ equity | $ 2,576,867 | $ 2,847,132 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Sep. 30, 2021 |
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 | 107,024,000 | 113,138,000 |
Common stock, shares outstanding | 106,970,000 | 112,913,000 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 3,815,565 | $ 3,874,997 | $ 3,514,330 |
Cost of goods sold | 1,896,400 | 1,921,663 | 1,798,736 |
Gross profit | 1,919,165 | 1,953,334 | 1,715,594 |
Selling, general and administrative expenses | 1,553,948 | 1,530,280 | 1,442,809 |
Restructuring | 27,577 | 4,611 | 14,025 |
Operating earnings | 337,640 | 418,443 | 258,760 |
Interest expense | 93,543 | 93,509 | 98,793 |
Earnings before provision for income taxes | 244,097 | 324,934 | 159,967 |
Provision for income taxes | 60,544 | 85,076 | 46,722 |
Net earnings | $ 183,553 | $ 239,858 | $ 113,245 |
Earnings per share: | |||
Basic | $ 1.69 | $ 2.13 | $ 0.99 |
Diluted | $ 1.66 | $ 2.10 | $ 0.99 |
Weighted average shares: | |||
Basic | 108,665 | 112,653 | 113,881 |
Diluted | 110,293 | 114,212 | 114,680 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 183,553 | $ 239,858 | $ 113,245 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (60,974) | 9,957 | 11,821 |
Interest rate caps, net of tax | 4,045 | 918 | 198 |
Foreign exchange contracts, net of tax | (277) | (813) | 565 |
Other comprehensive (loss) income, net of tax | (57,206) | 10,062 | 12,584 |
Total comprehensive income | $ 126,347 | $ 249,920 | $ 125,829 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | |||
Net earnings | $ 183,553 | $ 239,858 | $ 113,245 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 99,929 | 102,201 | 106,779 |
Share-based compensation expense | 9,944 | 11,656 | 8,426 |
Amortization of deferred financing costs | 3,351 | 4,212 | 4,118 |
Impairment of long-lived assets, including operating lease assets | 25,029 | 628 | 2,087 |
Net (gain)/loss on disposal of long-lived assets | (53) | (338) | 1,475 |
Net loss on extinguishment of debt | 16,439 | 4,260 | 38 |
Deferred income taxes | (17,592) | (7,336) | 13,691 |
Changes in (exclusive of effects of acquisitions): | |||
Trade accounts receivable | (3,184) | 2,923 | 10,031 |
Accounts receivable, other | (5,999) | (13,972) | 41,463 |
Inventory | (96,195) | (52,277) | 149,845 |
Other current assets | (9,536) | 976 | (15,654) |
Other assets | 4,148 | 4,360 | (2,007) |
Accounts payable and accrued liabilities | (46,289) | 79,851 | (26,876) |
Income taxes payable | (6,698) | 8,041 | (5,489) |
Operating lease assets and liabilities | 6,233 | 730 | 10,339 |
Other liabilities | (6,580) | (3,913) | 15,378 |
Net cash provided by operating activities | 156,500 | 381,860 | 426,889 |
Cash Flows from Investing Activities: | |||
Payments for property and equipment | (99,250) | (73,904) | (110,858) |
Proceeds from sales of property and equipment | 235 | 53 | |
Acquisitions, net of cash acquired | (3,169) | (2,350) | (12,970) |
Net cash used by investing activities | (102,419) | (76,019) | (123,775) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of long-term debt | 520,003 | 22 | 1,087,504 |
Repayments of long-term debt | (770,286) | (422,258) | (882,921) |
Debt issuance costs | (1,300) | (6,257) | |
Payments for common stock repurchased | (130,328) | (61,357) | |
Proceeds from exercises of stock options | 6,932 | 3,568 | 2,792 |
Net cash (used) provided by financing activities | (373,679) | (419,968) | 139,761 |
Effect of foreign exchange rate changes on cash and cash equivalents | (10,803) | 935 | (219) |
Net (decrease) increase in cash and cash equivalents | (330,401) | (113,192) | 442,656 |
Cash and cash equivalents, beginning of period | 400,959 | 514,151 | 71,495 |
Cash and cash equivalents, end of period | 70,558 | 400,959 | 514,151 |
Supplemental Cash Flow Information: | |||
Interest paid | 82,072 | 88,982 | 83,123 |
Income taxes paid | 82,607 | 79,765 | 49,869 |
Capital expenditures incurred but not paid | $ 15,757 | $ 19,932 | $ 9,772 |
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 Stock Cumulative Effect Period of Adoption Adjustment | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect Period of Adoption Adjustment | Accumulated Earnings | Accumulated Earnings Cumulative Effect Period of Adoption Adjustment | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Cumulative Effect Period of Adoption Adjustment |
Balance at Sep. 30, 2019 | $ (60,323) | $ 76 | $ 1,167 | $ 55,797 | $ 76 | $ (117,287) | ||||
Balance (in shares) at Sep. 30, 2019 | 116,725 | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net earnings | 113,245 | 113,245 | ||||||||
Other comprehensive income, 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 | $ 8,425 | 8,425 | ||||||||
Stock issued for equity awards | 3,135 | $ 4 | 3,131 | |||||||
Stock issued for equity awards (in shares) | 419 | |||||||||
Employee withholding taxes paid related to net share settlement | (342) | $ (1) | (341) | |||||||
Employee withholding taxes paid related to net share settlement (in shares) | (37) | |||||||||
Balance at Sep. 30, 2020 | 15,443 | $ 1,124 | 1,913 | 117,109 | (104,703) | |||||
Balance (in shares) at Sep. 30, 2020 | 112,405 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net earnings | 239,858 | 239,858 | ||||||||
Other comprehensive income, net of tax | 10,062 | 10,062 | ||||||||
Share-based compensation | 11,656 | 11,656 | ||||||||
Stock issued for equity awards | 4,768 | $ 6 | 4,762 | |||||||
Stock issued for equity awards (in shares) | 579 | |||||||||
Employee withholding taxes paid related to net share settlement | (1,046) | $ (1) | (1,045) | |||||||
Employee withholding taxes paid related to net share settlement (in shares) | (71) | |||||||||
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 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net earnings | $ 183,553 | 183,553 | ||||||||
Other comprehensive income, net of tax | (57,206) | (57,206) | ||||||||
Repurchases of common stock | $ (130,328) | $ (68) | (29,912) | (100,348) | ||||||
Repurchases of common stock (in shares) | (6,832) | (6,833) | ||||||||
Share-based compensation | $ 9,944 | 9,944 | ||||||||
Stock issued for equity awards | 8,112 | $ 10 | 8,102 | |||||||
Stock issued for equity awards (in shares) | 949 | |||||||||
Employee withholding taxes paid related to net share settlement | (1,180) | $ (1) | (1,179) | |||||||
Employee withholding taxes paid related to net share settlement (in shares) | (59) | |||||||||
Balance at Sep. 30, 2022 | $ 293,636 | $ 1,070 | $ 4,241 | $ 440,172 | $ (151,847) | |||||
Balance (in shares) at Sep. 30, 2022 | 106,970 | 106,970 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 1. Basis of Presentation 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. Use of Estimates In accordance with GAAP, we make 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 receivables 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 is determined by estimating expected credit losses based on historical trends. At September 30, 2022 and 2021, our allowance for doubtful accounts was $1.1 Other accounts receivable consist primarily of amounts due from vendors under various contractual agreements and include volume rebates and other promotional considerations. Inventory and Cost of Goods Sold Inventory is stated at the lower of 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 costs 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. Furthermore, during fiscal year 2022, we established inventory reserves in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring Lease Accounting Substantially all of our leases are operating leases and relate primarily to retail stores and warehousing properties with lease terms typically 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 2022, we recognized an impairment loss in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring 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 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) 2022 2021 Land N/A $ 9,949 $ 10,119 Buildings and building improvements 5 – 56,834 57,049 Leasehold improvements 2 – 10 342,326 326,595 Furniture, fixtures and equipment 2 – 10 709,578 681,017 Total property and equipment, gross 1,118,687 1,074,780 Accumulated depreciation and amortization (820,811 ) (767,403 ) Total property and equipment, net $ 297,876 $ 307,377 Depreciation expense for the fiscal years 2022, 2021 and 2020 was $95.9 million, $93.2 million and $95.5 million, respectively, and is included in selling, general and administrative expenses, or cost of goods sold if associated with our distribution centers, in our consolidated statements of earnings. During fiscal year 2022, we recognized an impairment loss in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring Valuation of Long-Lived Assets and Definite-lived Intangible Assets Long-lived assets, including operating lease assets and property and equipment, 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 may be recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset using a discounted cash flow approach. When we commit to an exit plan of scale that we believe will result in the disposal of long-lived assets prior to the end their useful lives, the approval of such plan may be considered a triggering event and therefore require a reassessment of asset carrying values for recoverability, based on projected cash flows. If the carrying values are not recoverable, write-downs or impairment charges may be required to bring carrying values of certain long-lived assets, including operating lease asset, to fair value. For fiscal year 2022, we recognized an impairment loss of $24.8 million in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring 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, 2022 and 2021, 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 2022, 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 or asset purchases 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 the vast majority of all our transactions. See Note 15, Segments and Disaggregated Revenue , for additional information regarding the disaggregation of our revenue. Merchandise Revenues We sell merchandise through our company-operated stores, digital platforms, to our franchisees and by using DSCs. These sales generally have one single performance obligation and revenue is recognized at the point of sale or upon shipment of the merchandise, whenever control of items sold transfers to the customer. Shipping fees charged through digital channels are considered a separate performance obligation and are recognized in net sales; while, the related shipping cost is recognized in selling, general and administrative expenses. 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 net sales 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 Cards In fiscal year 2019, we signed a multi-year agreement with a third-party bank (the “Bank”) to launch a private label credit card program in the U.S., and rolled out our first Sally Beauty and Cosmo Prof branded credit cards during fiscal year 2020. Under the agreement, the Bank manages our customer’s credit approval and credit card accounts; while, we facilitate credit applications and provide licensing to our brand and marketing services. The Bank accepts all customer default risks associated with these accounts. 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 is being 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 contribute funding for the program marketing expenses and are recognized in net sales in our consolidated statements of earnings. In addition, we earn other immaterial amounts from the Bank, including incentive payments for achieving performance targets and the activation of credit cards. Customer Loyalty Rewards Our Sally Beauty Rewards Program in the U.S. and Canada, enables customers to earn points based on their status for every dollar spent on qualifying SBS purchases. The program is free to join, and it provides our loyalty customers the ability to earn points on their SBS purchases, that convert to Sally Beauty Rewards certificates when select thresholds are attained. Points earned expire after twelve months of inactivity and certificates issued expire 30 days after earned. Certificates generated from our rewards loyalty program provide a material right to customers and represent a separate performance obligation. As such, we defer revenue for future rewards on a standalone value per point, net of estimated breakage based on historical data, within accrued liabilities on our consolidated balance sheets. The following table shows the amount of performance-based contract liabilities on our consolidated balance sheets as of September 30, 2022 and 2021 (in thousands): September 30, Contracts Balance Sheet Classification 2022 2021 Gift cards Accrued liabilities $ 5,060 $ 5,299 Rewards loyalty program Accrued liabilities 8,400 11,445 Total liability $ 13,460 $ 16,744 Changes to our performance-based contract liabilities for fiscal year 2022 were as follows (in thousands): September 30, 2021 $ 16,744 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 5,673 Revenue recognized from beginning liability (8,957 ) September 30, 2022 $ 13,460 Advertising Costs Advertising costs relate mainly to digital and web advertising, in-store and traditional print advertisements, customer relationship management, 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 $69.8 million, $70.9 million and $72.7 million for the fiscal years 2022, 2021 and 2020, 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 certain of our employees and Board of 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, 2022 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Accounting Changes and Recent Accounting Pronouncements | 2. Accounting Changes and Recent Accounting Pronouncements Accounting Changes 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 March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions impacted by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates and, particularly, the risk of cessation of LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable, or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. We do not believe this ASU will have a material impact to our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. 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 The three levels of that hierarchy are defined as follows: 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 2022 2021 Financial Assets Interest rate caps Other assets Level 2 $ 3,860 $ 35 Foreign exchange contracts Other current assets Level 2 294 — Total assets $ 3,860 $ 35 Financial Liabilities Foreign exchange contracts Accrued liabilities Level 2 $ 79 $ — The fair value for interest rate caps and foreign exchange contracts were measured using widely accepted valuation techniques, such as discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates. Other fair value disclosures Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, are as follows: As of September 30, 2022 2021 Pricing Category Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 679,961 $ 398,331 $ 979,961 $ 1,019,635 Term loan B Level 2 407,500 639,163 413,000 411,451 Total debt $ 1,087,461 $ 1,037,494 $ 1,392,961 $ 1,431,086 The fair value of the senior notes was measured using unadjusted quoted market prices. The fair value of the term loan B 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, 2022 | |
Stockholders Equity Note [Abstract] | |
Accumulated Stockholders' Equity | 4. Accumulated Stockholders’ Equity Share Repurchases The Board approved a share repurchase program authorizing us to repurchase up to $1.0 billion of our common stock through September 30, 2025. Information related to our shares repurchased and subsequently retired were as follows (in thousands): Fiscal Year Ended September 30, 2022 2021 2020 Number of shares repurchased 6,832 — 4,702 Total cost of share repurchased $ 130,328 $ — $ 61,357 The amounts above do not include approximately 59,000, 71,000 and 159,000 shares surrendered by grantees to satisfy personal income tax withholdings obligations upon vesting of equity-based awards valued at approximately $1.2 million, $1.0 million and $0.3 million during the fiscal years 2022, 2021 and 2020, 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, 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 ) Other comprehensive income (loss) before reclassifications, net of tax (60,974 ) 2,310 (149 ) (58,813 ) Reclassification to net earnings, net of tax — 1,735 (128 ) 1,607 Balance at September 30, 2022 $ (153,128 ) $ 1,960 $ (679 ) $ (151,847 ) 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, 2022 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares | 5. Weighted Average Shares The following table sets forth the computations of basic and diluted earnings per share (in thousands): Fiscal Year Ended September 30, 2022 2021 2020 Weighted-average basic shares 108,665 112,653 113,881 Dilutive securities: Stock option and stock award programs 1,628 1,559 799 Weighted-average diluted shares 110,293 114,212 114,680 At September 30, 2022, 2021 and 2020, options to purchase approximately 2.4 million, 3.9 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, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Payments | 6. 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, 2022 2021 2020 Share-based compensation expense $ 9,944 $ 11,656 $ 8,426 Income tax benefit related to share-based compensation expense $ 2,634 $ 2,834 $ 2,059 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 2022, 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, 2021 302 $ 16.59 Granted 212 17.40 Adjustment for performance achievement 14 15.33 Vested (18 ) 15.33 Forfeited (150 ) 17.01 Unvested at September 30, 2022 360 $ 16.75 As of September 30, 2022, based on current projections, we do not expect to recognize any expense related to unvested performance awards. 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, 2021 90 $ 20.96 Granted 212 23.39 Vested — — Forfeited (48 ) 22.41 Unvested at September 30, 2022 254 $ 22.72 As of September 30, 2022, approximately $3.6 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 awards issued in fiscal years 2022 and 2021 were as follows: Fiscal Year Ended September 30, 2022 2021 Expected term (in years) 2.9 2.7 Expected volatility 59.5 % 59.4 % Risk-free interest rate 0.7 % 0.2 % Dividend yield 0.0 % 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, 2021 5,165 $ 18.46 4.6 $ 9,627 Granted 304 17.27 Exercised (598 ) 13.56 Forfeited or expired (1,688 ) 21.71 Outstanding at September 30, 2022 3,183 $ 17.54 5.8 $ 2,863 Exercisable at September 30, 2022 2,097 $ 20.13 4.5 $ 736 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, 2022 2021 2020 Expected term (in years) 6.0 6.0 5.0 Expected volatility 48.7 % 44.5 % 35.8 % Risk-free interest rate 1.2 % 0.4 % 1.7 % 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 2022, 2021 and 2020 was $8.12, $5.66 and $5.86, respectively. The aggregate fair value of stock options vested during the fiscal years 2022, 2021 and 2020 was $2.5 million, $3.4 million and $2.7 million, respectively. The aggregate intrinsic value of options exercised during the fiscal years 2022, 2021 and 2020 was $4.0 million, $0.7 million and $0.5 million, respectively. The total cash received during the fiscal years 2022, 2021 and 2020 from these option exercises was $8.1 million, $4.6 million and $3.0 million, respectively, and the tax benefit realized for the tax deductions from these option exercises was $0.8 million, $0.1 million and $0.1 million, respectively. At September 30, 2022, approximately $2.8 million of total unrecognized compensation costs related to unvested stock option awards are expected to be recognized over the weighted average period of 1.6 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, 2021 135 $ 15.60 Granted — — Vested (68 ) 15.60 Forfeited (14 ) 15.78 Unvested at September 30, 2022 53 $ 15.55 At September 30, 2022, approximately $0.1 million of total unrecognized compensation costs related to unvested RSAs are expected to be recognized over the weighted average period of 0.3 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, 2021 568 $ 9.41 Granted 818 17.37 Vested (294 ) 9.30 Forfeited (168 ) 14.75 Unvested at September 30, 2022 924 $ 15.52 At September 30, 2022, approximately $8.2 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, 2022 | |
Leases [Abstract] | |
Leases | 7. Leases Our operating and finance leases consisted of the following (in thousands): September 30, Balance Sheet Classification 2022 2021 Assets: Operating lease (a) Operating lease assets $ 532,177 $ 537,673 Finance lease Property and equipment, net 1,897 2,556 Total lease assets $ 534,074 $ 540,229 Liabilities: Current: Operating lease Current operating lease liabilities $ 157,734 $ 156,234 Finance lease Current maturities of long-term debt 158 194 Long-term: Operating lease Long-term operating lease liabilities 424,762 404,147 Finance lease Long-term debt 277 485 Total lease liabilities $ 582,931 $ 561,060 (a) During the fiscal year 2022, we recognized impairment charges related to our Distribution Center Consolidation and Store Optimization Plan. See Note 16, Restructuring , for more information on the Distribution Center Consolidation and Store Optimization Plan. Our lease costs consisted of the following (in thousands): For the Year Ended September 30, Statement of Earnings Classification 2022 2021 Operating lease costs Cost of goods sold and selling, general and administrative expenses (a) $ 188,206 $ 193,583 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 299 328 Interest on lease liabilities Interest expense 13 14 Variable lease costs (b) Selling, general and administrative expenses 62,201 53,698 Total lease costs $ 250,719 $ 247,623 (a) Certain supply chain-related amounts are included in cost of goods sold. (b) Includes common area maintenance, real estate taxes and insurance related to leases As of September 30, 2022, the approximate future lease payments under our leases under ASC 842, Leases Fiscal Year Operating leases Finance leases 2023 $ 174,464 $ 167 2024 139,368 161 2025 105,793 134 2026 79,025 — 2027 54,242 — Thereafter 103,144 — Total undiscounted lease payments 656,036 462 Less: imputed interest 73,540 27 Present value of lease liabilities $ 582,496 $ 435 The table above does not include operating leases we have entered into of approximately $7.9 million that have not commenced, primarily related to future retail stores. Other lease information is as follows (dollars in thousands): For the Fiscal Year Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 183,943 $ 189,012 Operating cash flows – finance leases 13 14 Financing cash flows – finance leases 161 202 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 201,542 $ 180,945 Lease assets obtained in exchange for new finance lease liabilities 3 22 September 30, 2022 2021 Weighted-average remaining lease term (in years): Operating leases 5.2 5.1 Finance leases 2.7 3.7 Weighted-average discount rate: Operating leases 4.6 % 4.5 % Finance leases 0.3 % 0.3 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. The changes in the carrying amounts of goodwill during the fiscal years 2022 and 2021 are as follows (in thousands): SBS BSG Total Balance at September 30, 2020 $ 81,186 $ 458,852 540,038 Acquisitions (a) 231 (1,582 ) (1,351 ) Foreign currency translation 743 1,779 2,522 Balance at September 30, 2021 $ 82,160 $ 459,049 $ 541,209 Acquisitions 271 — 271 Foreign currency translation (12,871 ) (2,543 ) (15,414 ) Balance at September 30, 2022 $ 69,560 $ 456,506 $ 526,066 (a) 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. 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. As of September 30, 2022 and 2021, we had the following (in thousands): September 30, 2022 September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Definite-lived Intangible assets: Customer relationships $ 21,406 $ (17,406 ) $ 4,000 $ 32,621 $ (26,246 ) $ 6,375 Distribution rights 10,155 (6,770 ) 3,385 11,660 (9,251 ) 2,409 Other intangible assets 3,968 (2,618 ) 1,350 5,238 (3,460 ) 1,778 Total definite-lived intangible assets 35,529 (26,794 ) 8,735 49,519 (38,957 ) 10,562 Indefinite-lived Intangible assets: Trade names 41,580 — 41,580 44,970 — 44,970 Total intangible assets, excluding goodwill, net $ 77,109 $ (26,794 ) $ 50,315 $ 94,489 $ (38,957 ) $ 55,532 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, 2022, 2021 and 2020, amortization expense related to intangible assets totaled $4.1 million, $6.6 million and $9.0 million, respectively. As of September 30, 2022, the expected future amortization expense related to definite-lived intangible assets is as follows (in thousands): Fiscal Year: 2023 $ 3,319 2024 2,370 2025 1,840 2026 781 2027 425 Thereafter — $ 8,735 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 9. Accrued liabilities consist of the following (in thousands): September 30, 2022 2021 Compensation and benefits $ 58,693 $ 73,344 Deferred revenue 18,810 23,859 Interest payable 13,445 24,101 Rental obligations 10,701 10,501 Insurance reserves 5,742 5,934 Property and other taxes 4,161 3,853 Operating accruals and other 49,513 64,563 Total accrued liabilities $ 161,065 $ 206,155 We have reclassified certain prior year amounts out of operating accruals and other into deferred revenue to conform to current year presentation. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments Letters of Credit We had $18.6 million and $18.3 million of outstanding letters of credit as of September 30, 2022 and 2021, 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, 2022 and 2021. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 11. Short-term Debt In May 2021, we entered into a third amendment to our five-year At September 30, 2022 there was $68.5 million in outstanding borrowings under our ABL facility; while, there were no outstanding borrowings under our ABL facility at September 30, 2021. At September 30, 2022, we had $412.9 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, 2022 2021 Interest Rates Term loan B: Variable-rate tranche $ 407,500 $ 413,000 LIBOR plus 2.25% Senior notes due Apr. 2025 — 300,000 8.750% Senior notes due Dec. 2025 679,961 679,961 5.625% Total $ 1,087,461 $ 1,392,961 Plus: finance lease obligations 435 679 Less: unamortized debt issuance costs and discount, net 4,695 10,916 Total debt $ 1,083,201 $ 1,382,724 Less: current maturities 158 194 Total long-term debt $ 1,083,043 $ 1,382,530 Maturities of our debt, excluding finance leases and our ABL facility, are as follows at September 30, 2022 (in thousands): Fiscal Year: 2023 $ — 2024 407,500 2025 — 2026 679,961 2027 — Thereafter — Total $ 1,087,461 Term Loan B In July 2017, we entered into a seven-year In fiscal year 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 fiscal year 2021, we elected to repay $8.3 million aggregate principal amount of our term loan B variable tranche and recognized a loss on extinguishment of debt of $0.1 million from the write-off of unamortized deferred financing costs. Furthermore, we continue to make quarterly optional $1.4 million principal payments. These optional prepayments did not have any early prepayment penalties. Senior Notes The senior notes due December 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 these notes is payable semi-annually, during our first and third fiscal quarters. During fiscal year 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. During fiscal year 2020, we closed on $300.0 million of Senior Secured Second Lien Notes due 2025 (“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. On May 31, 2022, we called the entire outstanding balance of $300.0 million of our Senior Secured Notes at par plus a premium. In connection with the repayment we recognized losses on extinguishment of debt in the aggregate amount of $16.4 million, which included a $13.1 million call premium and the write-off of $3.3 million in unamortized deferred financing costs. 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. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 12. As of September 30, 2022, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 3 for the classification and fair value of our derivative instruments. Designated Cash Flow Hedges Foreign Currency Forwards During the fiscal year ended September 30, 2022, 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 2022. As of September 30, 2022, 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, 2022, we expect to reclassify approximately $0.3 million in net gains into cost of goods sold over the next 12 months. During the fiscal year ended September 30, 2022, we reclassified $0.1 million of net gains 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 gains of approximately $2.3 million into interest expense as the one-month LIBOR rate is above the strike price of these contracts as of September 30, 2022. During the fiscal year ended September 30, 2022, we reclassified $1.7 million into interest expense. Non-Designated Cash Flow Hedges We also use foreign exchange contracts to mitigate our exposure to exchange rate changes in connection with certain intercompany balances not permanently invested. At September 30, 2022, we held forwards, which expire on various dates during the first four months of fiscal year 2023, with a notional amount, based upon exchange rates at September 30, 2022, as follows (in thousands): Notional Currency Notional Amount Canadian Dollar $ 19,831,921 Euro 21,910,748 British Pound 47,741,922 Mexican Peso 11,432,249 Total $ 100,916,839 We record changes in fair value and realized gains or losses related to the foreign currency forwards into selling, general and administrative expenses. The effects of these foreign exchange contracts on our condensed consolidated financial statements were losses of $9.6 million and $3.0 million for the years ended September 30, 2022 and 2021, respectively. |
401(k) and Profit Sharing Plan
401(k) and Profit Sharing Plan | 12 Months Ended |
Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) and Profit Sharing Plan | 13. We offer 401(k) Plans to our U.S. and Puerto Rico employees who meet certain eligibility requirements. The U.S. 401(k) Plan allows employees to contribute immediately upon hire, while the Puerto Rico 401(k) Plan allows employees to contribute after one year of employment. Under the terms of each 401(k) Plan, employees may contribute a percentage of their annual compensation up to certain maximums, as defined by each 401(k) Plan and by statutory limitations. We currently match a portion of employee contributions, as defined by each 401(k) Plan. We recognized expense of $6.8 million, $6.2 million and $5.8 million in the fiscal years ended September 30, 2022, 2021 and 2020, 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, 2022, 2021 and 2020, we did not make a profit sharing contribution to the 401(k) Plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. 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, 2022, 2021 and 2020, related to the CARES Act. 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 2022, 2021 and 2020. 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 2022, 2021 and 2020 consists of the following (in thousands): Fiscal Year Ended September 30, 2022 2021 2020 Current: Federal $ 48,888 $ 64,526 $ 22,282 Foreign 16,370 14,869 6,120 State 10,739 14,364 4,730 Total current portion 75,997 93,759 33,132 Deferred: Federal 93 (6,054 ) 10,177 Foreign (15,380) (1,195 ) 1,321 State (166) (1,434 ) 2,092 Total deferred portion (15,453) (8,683 ) 13,590 Total provision for income taxes $ 60,544 $ 85,076 $ 46,722 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, 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 2.6 3.0 3.4 Effect of foreign operations 2.2 0.8 (0.4 ) Valuation allowances (7.2 ) 0.6 4.6 Deferred tax impact of foreign branch conversion 2.7 — — Unrecognized tax benefit 2.9 — — Share-based payment awards 0.6 0.6 1.2 Other, net — 0.2 (0.6 ) Effective tax rate 24.8 % 26.2 % 29.2 % The tax effects of temporary differences that give rise to our deferred tax assets and liabilities are as follows (in thousands): September 30, 2022 2021 Deferred tax assets attributable to: Foreign loss carryforwards $ 30,548 $ 34,007 Accrued liabilities 24,023 18,662 Share-based compensation expense 7,320 8,392 U.S. foreign tax credits 10,712 11,199 U.S. federal social security tax deferral — 3,089 Inventory adjustments 8,156 2,754 Other (391) 2,984 Total deferred tax assets 80,368 81,087 Valuation allowance (31,920) (51,810 ) Total deferred tax assets, net 48,448 29,277 Deferred tax liabilities attributable to: Depreciation and amortization 112,115 109,038 Net deferred tax liability $ 63,667 $ 79,761 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. During fiscal year 2022, existing valuation allowances were reduced by approximately $19.9 million, primarily for net operating loss carry-forwards of various members of the affiliated group in foreign jurisdictions. The Company determined that it is "more likely than not" that future earnings will be sufficient to offset the net operating losses. We continue to record a valuation allowance to account for uncertainties regarding recoverability of certain deferred tax assets, primarily foreign loss carry-forwards and tax credit carry-forwards. Domestic earnings before provision for income taxes were $205.2 million, $288.0 million and $168.0 million in the fiscal years 2022, 2021 and 2020, respectively. Foreign earnings before provision for income taxes of $38.9 million in the fiscal year 2022, $36.9 million in the fiscal year 2021 and a loss before provision for income taxes of $8.0 million in the fiscal year 2020. 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. For fiscal year 2022 and 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, 2022, an immaterial amount of additional deferred taxes would have been provided. At September 30, 2022 and 2021, we had total operating loss carry-forwards of $110.8 million and $125.7 million, respectively, of which $60.9 million and $109.4 million, respectively, are subject to a valuation allowance. At September 30, 2022, operating loss carry-forwards of $5.6 million expire between 2022 and 2034 and operating loss carry-forwards of $105.2 million have no expiration date. At September 30, 2022 and 2021, we had tax credit carry-forwards of $13.1 million and $14.1 million, respectively. This includes a U.S. foreign tax credit carry-forward of $10.7 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, 2022, $0.8 million expire between 2024 and 2028, $0.4 million expire between 2035 and 2037 and $1.2 million have no expiration date. Total tax credit carry-forwards of $11.9 million and $12.6 million are subject to a valuation allowance at September 30, 2022 and 2021, respectively. The changes in the amount of unrecognized tax benefits are as follows (in thousands): Fiscal Year Ended September 30, 2022 2021 Balance at beginning of the fiscal year $ 2,092 $ 2,053 Increases related to prior year tax positions 7,603 5 Decreases related to prior year tax positions (874 ) (2 ) Increases related to current year tax positions 710 195 Lapse of statute (366) (159 ) Balance at end of fiscal year $ 9,165 $ 2,092 If recognized, these positions would affect our effective tax rate. At September 30, 2022, the Company recorded $7.6 million of uncertain tax benefits related to transfer pricing matters. We maintain our tax positions are fully supportable. 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 $0.4 million and $0.3 million at September 30, 2022 and 2021, 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, 2021, is currently under IRS examination. Our consolidated federal income tax return for the fiscal year ended September 30, 2018 is currently under IRS Appeals. 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 2017 forward. |
Segments and Disaggregated Reve
Segments and Disaggregated Revenue | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segments and Disaggregated Revenue | 15. 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 1. Sales between segments, which were eliminated in consolidation, were not material for the fiscal years ended September 30, 2022, 2021 and 2020. Business Segments Information Segment data for the fiscal years 2022, 2021 and 2020 are as follows (in thousands): 2022 2021 2020 Net sales (for the fiscal year indicated): SBS $ 2,193,044 $ 2,278,382 $ 2,080,703 BSG 1,622,521 1,596,615 1,433,627 Total $ 3,815,565 $ 3,874,997 $ 3,514,330 Earnings before provision for income taxes: Segment operating earnings: SBS $ 350,884 $ 417,658 $ 237,588 BSG 193,407 205,078 194,206 Segment operating earnings 544,291 622,736 431,794 Unallocated expenses 179,074 199,682 159,009 Restructuring 27,577 4,611 14,025 Consolidated operating earnings 337,640 418,443 258,760 Interest expense 93,543 93,509 98,793 Earnings before provision for income taxes $ 244,097 $ 324,934 $ 159,967 Depreciation and amortization: SBS $ 57,798 $ 61,887 $ 65,207 BSG 30,098 28,597 29,324 Corporate 12,033 11,717 12,248 Total $ 99,929 $ 102,201 $ 106,779 Payments for property and equipment: SBS $ 53,788 $ 43,165 $ 73,130 BSG 34,312 24,880 27,338 Corporate 11,150 5,859 10,390 Total $ 99,250 $ 73,904 $ 110,858 Total assets (as of September 30): SBS $ 1,195,732 $ 1,235,427 $ 1,370,745 BSG 1,251,455 1,179,263 1,106,801 Sub-total 2,447,187 2,414,690 2,477,546 Corporate 129,680 432,442 417,601 Total $ 2,576,867 $ 2,847,132 $ 2,895,147 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 2022, 2021 and 2020, no single customer accounted for 10% or more of revenue. Geographic Area Information Certain geographic data is as follows (in thousands): 2022 2021 2020 Net sales (for the fiscal year indicated): United States $ 3,142,898 $ 3,228,091 $ 2,914,171 Other countries 672,667 646,906 600,159 Total $ 3,815,565 $ 3,874,997 $ 3,514,330 Long-lived assets (as of September 30): United States $ 263,929 $ 267,839 $ 264,936 United Kingdom 9,147 15,089 20,183 Other countries 24,800 24,449 29,910 Total $ 297,876 $ 307,377 $ 315,029 Disaggregated Revenues The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts to conform to current year presentation. Fiscal Year Ended September 30, SBS 2022 2021 2020 Hair color 38.2 % 36.3 % 34.4 % Hair care 23.6 % 22.1 % 20.6 % Styling tools and supplies 19.1 % 21.7 % 24.8 % Nail 10.8 % 10.9 % 10.9 % Skin and cosmetics 7.6 % 8.3 % 8.2 % Other beauty items 0.7 % 0.7 % 1.1 % Total 100.0 % 100.0 % 100.0 % Fiscal Year Ended September 30, BSG 2022 2021 2020 Hair care 43.5 % 41.5 % 40.4 % Hair color 39.0 % 39.8 % 38.3 % Styling tools and supplies 10.9 % 11.5 % 12.7 % Skin and cosmetics 3.8 % 4.0 % 4.3 % Nail 2.4 % 2.7 % 3.6 % Other beauty items 0.4 % 0.5 % 0.7 % 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, 2022 2021 2020 2022 2021 2020 Company-operated stores 94.0 % 94.1 % 91.8 % 66.4 % 69.1 % 68.9 % E-commerce 6.0 % 5.9 % 8.0 % 12.3 % 9.2 % 8.7 % Franchise stores — 0.0 % 0.2 % 7.4 % 7.5 % 7.1 % Distributor sales consultants — — — 13.9 % 14.2 % 15.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Restructuring
Restructuring | 12 Months Ended |
Sep. 30, 2022 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 16. Restructuring expenses, included in Cost of Goods Sold (“COGS”) and Restructuring for the fiscal years ended September 30, 2022, 2021 and 2020, are as follows (in thousands): 2022 2021 2020 Included in COGS Distribution Center Consolidation and Store Optimization Plan $ 19,403 $ — $ — Transformation Plan (1,087 ) 1,444 — Total in COGS $ 18,316 $ 1,444 $ — Included in Restructuring Distribution Center Consolidation and Store Optimization Plan $ 26,110 $ — $ — Transformation Plan 1,467 3,160 12,514 Project Surge — 1,451 1,511 Total in Restructuring 27,577 4,611 14,025 Total Restructuring Expenses $ 45,893 $ 6,055 $ 14,025 Distribution Center Consolidation and Store Optimization Plan In the fourth quarter of fiscal year 2022, our Board approved the Distribution Center Consolidation and Store Optimization Plan (“the Plan”) consisting of the planned closure of 330 SBS stores and 35 BSG stores. Stores identified for early closure were part of a strategic evaluation which included a market analysis of certain locations where we believe we are able to recapture demand and improve profitability. By optimizing our store base, we can further focus on our customers’ shopping experience and our product offerings as well as result in long term value to our shareholders and customers. This Plan will continue to be executed throughout fiscal year 2023 and beyond, and therefore it may include future charges related to store closures such as exit costs, lease negotiation penalties, termination benefits and adjustments to estimates. The liability related to our Distribution Center Consolidation and Store Optimization Plan, which is included in accrued liabilities on our consolidated balance sheets, is as follows (in thousands): Distribution Center Consolidation and Store Optimization Plan Liability at September 30, 2021 Expenses Cash Payments Non-Cash Amounts Liability at September 30, 2022 SBS Impairment - operating lease assets (a) $ — $ 18,668 $ — $ (18,668 ) $ — Impairment - property and equipment (a) — 2,921 — (2,921 ) — Inventory adjustments (COGS) (b) — 10,548 — (10,548 ) — Other (c) — 918 — 918 Total SBS $ — $ 33,055 $ — $ (32,137 ) $ 918 BSG Impairment - operating lease assets (a) $ — $ 2,894 $ — $ (2,894 ) $ — Impairment - property and equipment (a) — 336 — (336 ) — Inventory adjustments (COGS) (b) — 8,855 — (8,855 ) — Other (c) — 373 — — 373 Total BSG — 12,458 — (12,085 ) 373 Total Distribution Center Consolidation and Store Optimization Plan $ — $ 45,513 $ — $ (44,222 ) $ 1,291 (a) Remaining carrying value for the long-lived assets, including operating lease assets, were not material and approximate their fair value. (b) Inventory adjustments in COGS are related to obsolescence associated with planned closures. (c) Other expenses include closure-related costs. 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. Furthermore, our Board approved the divestiture of our operations in Peru. 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, 2021 Expenses Cash Payments Non-Cash Amounts Liability at September 30, 2022 Workforce reductions $ 718 $ 466 $ 1,947 $ (763 ) $ — Facility closures 422 513 935 — — Inventory adjustments (COGS) — (1,087 ) — (1,087 ) — Other — 488 488 — — Total $ 1,140 $ 380 $ 3,370 $ (1,850 ) $ — Net expense incurred during the fiscal year ended September 30, 2022, represents costs and adjustments for SBS. Project Surge In fiscal year 2020, we announced the launch of 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 focused on several operating elements, including a review of our talent and operating structure. We did not incur any additional expenses or liabilities related to Project Surge in fiscal 2022. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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. |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash represents currency on hand, debit and credit card receivables 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 is determined by estimating expected credit losses based on historical trends. At September 30, 2022 and 2021, our allowance for doubtful accounts was $1.1 Other accounts receivable consist primarily of amounts due from vendors under various contractual agreements and include volume rebates and other promotional considerations. |
Inventory and Cost of Goods Sold | Inventory and Cost of Goods Sold Inventory is stated at the lower of 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 costs 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. Furthermore, during fiscal year 2022, we established inventory reserves in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring |
Lease Accounting | Lease Accounting Substantially all of our leases are operating leases and relate primarily to retail stores and warehousing properties with lease terms typically 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 2022, we recognized an impairment loss in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring |
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 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) 2022 2021 Land N/A $ 9,949 $ 10,119 Buildings and building improvements 5 – 56,834 57,049 Leasehold improvements 2 – 10 342,326 326,595 Furniture, fixtures and equipment 2 – 10 709,578 681,017 Total property and equipment, gross 1,118,687 1,074,780 Accumulated depreciation and amortization (820,811 ) (767,403 ) Total property and equipment, net $ 297,876 $ 307,377 Depreciation expense for the fiscal years 2022, 2021 and 2020 was $95.9 million, $93.2 million and $95.5 million, respectively, and is included in selling, general and administrative expenses, or cost of goods sold if associated with our distribution centers, in our consolidated statements of earnings. During fiscal year 2022, we recognized an impairment loss in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring |
Valuation of Long-Lived Assets and Definite-lived Intangible Assets | Valuation of Long-Lived Assets and Definite-lived Intangible Assets Long-lived assets, including operating lease assets and property and equipment, 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 may be recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset using a discounted cash flow approach. When we commit to an exit plan of scale that we believe will result in the disposal of long-lived assets prior to the end their useful lives, the approval of such plan may be considered a triggering event and therefore require a reassessment of asset carrying values for recoverability, based on projected cash flows. If the carrying values are not recoverable, write-downs or impairment charges may be required to bring carrying values of certain long-lived assets, including operating lease asset, to fair value. For fiscal year 2022, we recognized an impairment loss of $24.8 million in connection with our Distribution Center Consolidation and Store Optimization Plan within restructuring. Please see Note 16, Restructuring |
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, 2022 and 2021, 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 2022, 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 or asset purchases 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 the vast majority of all our transactions. See Note 15, Segments and Disaggregated Revenue , for additional information regarding the disaggregation of our revenue. Merchandise Revenues We sell merchandise through our company-operated stores, digital platforms, to our franchisees and by using DSCs. These sales generally have one single performance obligation and revenue is recognized at the point of sale or upon shipment of the merchandise, whenever control of items sold transfers to the customer. Shipping fees charged through digital channels are considered a separate performance obligation and are recognized in net sales; while, the related shipping cost is recognized in selling, general and administrative expenses. 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 net sales 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 Cards In fiscal year 2019, we signed a multi-year agreement with a third-party bank (the “Bank”) to launch a private label credit card program in the U.S., and rolled out our first Sally Beauty and Cosmo Prof branded credit cards during fiscal year 2020. Under the agreement, the Bank manages our customer’s credit approval and credit card accounts; while, we facilitate credit applications and provide licensing to our brand and marketing services. The Bank accepts all customer default risks associated with these accounts. 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 is being 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 contribute funding for the program marketing expenses and are recognized in net sales in our consolidated statements of earnings. In addition, we earn other immaterial amounts from the Bank, including incentive payments for achieving performance targets and the activation of credit cards. Customer Loyalty Rewards Our Sally Beauty Rewards Program in the U.S. and Canada, enables customers to earn points based on their status for every dollar spent on qualifying SBS purchases. The program is free to join, and it provides our loyalty customers the ability to earn points on their SBS purchases, that convert to Sally Beauty Rewards certificates when select thresholds are attained. Points earned expire after twelve months of inactivity and certificates issued expire 30 days after earned. Certificates generated from our rewards loyalty program provide a material right to customers and represent a separate performance obligation. As such, we defer revenue for future rewards on a standalone value per point, net of estimated breakage based on historical data, within accrued liabilities on our consolidated balance sheets. The following table shows the amount of performance-based contract liabilities on our consolidated balance sheets as of September 30, 2022 and 2021 (in thousands): September 30, Contracts Balance Sheet Classification 2022 2021 Gift cards Accrued liabilities $ 5,060 $ 5,299 Rewards loyalty program Accrued liabilities 8,400 11,445 Total liability $ 13,460 $ 16,744 Changes to our performance-based contract liabilities for fiscal year 2022 were as follows (in thousands): September 30, 2021 $ 16,744 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 5,673 Revenue recognized from beginning liability (8,957 ) September 30, 2022 $ 13,460 |
Advertising Costs | Advertising Costs Advertising costs relate mainly to digital and web advertising, in-store and traditional print advertisements, customer relationship management, 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 $69.8 million, $70.9 million and $72.7 million for the fiscal years 2022, 2021 and 2020, 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 certain of our employees and Board of 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, 2022 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Accounting Changes | Accounting Changes 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 March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions impacted by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates and, particularly, the risk of cessation of LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable, or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. We do not believe this ASU will have a material impact to our consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [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) 2022 2021 Land N/A $ 9,949 $ 10,119 Buildings and building improvements 5 – 56,834 57,049 Leasehold improvements 2 – 10 342,326 326,595 Furniture, fixtures and equipment 2 – 10 709,578 681,017 Total property and equipment, gross 1,118,687 1,074,780 Accumulated depreciation and amortization (820,811 ) (767,403 ) Total property and equipment, net $ 297,876 $ 307,377 |
Summary of Contract Liabilities and its Changes | The following table shows the amount of performance-based contract liabilities on our consolidated balance sheets as of September 30, 2022 and 2021 (in thousands): September 30, Contracts Balance Sheet Classification 2022 2021 Gift cards Accrued liabilities $ 5,060 $ 5,299 Rewards loyalty program Accrued liabilities 8,400 11,445 Total liability $ 13,460 $ 16,744 Changes to our performance-based contract liabilities for fiscal year 2022 were as follows (in thousands): September 30, 2021 $ 16,744 Loyalty points and gift cards issued but not redeemed, net of estimated breakage 5,673 Revenue recognized from beginning liability (8,957 ) September 30, 2022 $ 13,460 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 2022 2021 Financial Assets Interest rate caps Other assets Level 2 $ 3,860 $ 35 Foreign exchange contracts Other current assets Level 2 294 — Total assets $ 3,860 $ 35 Financial Liabilities Foreign exchange contracts Accrued liabilities Level 2 $ 79 $ — The fair value for interest rate caps and foreign exchange contracts were measured using widely accepted valuation techniques, such as discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates. Other fair value disclosures Carrying amounts and the related estimated fair value of our long-term debt, excluding finance lease obligations, are as follows: As of September 30, 2022 2021 Pricing Category Carrying Value Fair Value Carrying Value Fair Value Long-term debt Senior notes Level 1 $ 679,961 $ 398,331 $ 979,961 $ 1,019,635 Term loan B Level 2 407,500 639,163 413,000 411,451 Total debt $ 1,087,461 $ 1,037,494 $ 1,392,961 $ 1,431,086 |
Accumulated Stockholders' Equ_2
Accumulated Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2020 Number of shares repurchased 6,832 — 4,702 Total cost of share repurchased $ 130,328 $ — $ 61,357 |
Schedule of changes in accumulated other comprehensive loss | The change in accumulated other comprehensive loss (“AOCL”) was as follows (in thousands): Foreign Currency Translation Adjustments Interest Rate Caps Foreign Exchange Contracts Total Balance at September 30, 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 ) Other comprehensive income (loss) before reclassifications, net of tax (60,974 ) 2,310 (149 ) (58,813 ) Reclassification to net earnings, net of tax — 1,735 (128 ) 1,607 Balance at September 30, 2022 $ (153,128 ) $ 1,960 $ (679 ) $ (151,847 ) |
Weighted-Average Shares (Tables
Weighted-Average Shares (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2020 Weighted-average basic shares 108,665 112,653 113,881 Dilutive securities: Stock option and stock award programs 1,628 1,559 799 Weighted-average diluted shares 110,293 114,212 114,680 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2020 Share-based compensation expense $ 9,944 $ 11,656 $ 8,426 Income tax benefit related to share-based compensation expense $ 2,634 $ 2,834 $ 2,059 |
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, 2021 302 $ 16.59 Granted 212 17.40 Adjustment for performance achievement 14 15.33 Vested (18 ) 15.33 Forfeited (150 ) 17.01 Unvested at September 30, 2022 360 $ 16.75 |
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, 2021 5,165 $ 18.46 4.6 $ 9,627 Granted 304 17.27 Exercised (598 ) 13.56 Forfeited or expired (1,688 ) 21.71 Outstanding at September 30, 2022 3,183 $ 17.54 5.8 $ 2,863 Exercisable at September 30, 2022 2,097 $ 20.13 4.5 $ 736 |
Schedule of weighted average assumptions for valuation of stock options using the Black-Scholes option pricing model | Fiscal Year Ended September 30, 2022 2021 2020 Expected term (in years) 6.0 6.0 5.0 Expected volatility 48.7 % 44.5 % 35.8 % Risk-free interest rate 1.2 % 0.4 % 1.7 % 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, 2021 90 $ 20.96 Granted 212 23.39 Vested — — Forfeited (48 ) 22.41 Unvested at September 30, 2022 254 $ 22.72 |
Schedule of weighted average assumptions for valuation of rTSR awards | The weighted average assumptions used in the Monte Carlo model relating to the valuation of our rTSR awards issued in fiscal years 2022 and 2021 were as follows: Fiscal Year Ended September 30, 2022 2021 Expected term (in years) 2.9 2.7 Expected volatility 59.5 % 59.4 % Risk-free interest rate 0.7 % 0.2 % Dividend yield 0.0 % 0.0 % |
Restricted Stock Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of the activity for restricted stock awards/units | Restricted Stock Awards Number of Shares (in Thousands) Weighted Average Fair Value Per Share Unvested at September 30, 2021 135 $ 15.60 Granted — — Vested (68 ) 15.60 Forfeited (14 ) 15.78 Unvested at September 30, 2022 53 $ 15.55 |
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, 2021 568 $ 9.41 Granted 818 17.37 Vested (294 ) 9.30 Forfeited (168 ) 14.75 Unvested at September 30, 2022 924 $ 15.52 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Summary of Operating and Finance Leases | Our operating and finance leases consisted of the following (in thousands): September 30, Balance Sheet Classification 2022 2021 Assets: Operating lease (a) Operating lease assets $ 532,177 $ 537,673 Finance lease Property and equipment, net 1,897 2,556 Total lease assets $ 534,074 $ 540,229 Liabilities: Current: Operating lease Current operating lease liabilities $ 157,734 $ 156,234 Finance lease Current maturities of long-term debt 158 194 Long-term: Operating lease Long-term operating lease liabilities 424,762 404,147 Finance lease Long-term debt 277 485 Total lease liabilities $ 582,931 $ 561,060 (a) During the fiscal year 2022, we recognized impairment charges related to our Distribution Center Consolidation and Store Optimization Plan. See Note 16, Restructuring , for more information on the Distribution Center Consolidation and Store Optimization Plan. |
Summary of Lease Costs | Our lease costs consisted of the following (in thousands): For the Year Ended September 30, Statement of Earnings Classification 2022 2021 Operating lease costs Cost of goods sold and selling, general and administrative expenses (a) $ 188,206 $ 193,583 Finance lease costs: Amortization of leased assets Selling, general and administrative expenses 299 328 Interest on lease liabilities Interest expense 13 14 Variable lease costs (b) Selling, general and administrative expenses 62,201 53,698 Total lease costs $ 250,719 $ 247,623 (a) Certain supply chain-related amounts are included in cost of goods sold. (b) Includes common area maintenance, real estate taxes and insurance related to leases |
Summary of Future Lease Payments | As of September 30, 2022, the approximate future lease payments under our leases under ASC 842, Leases Fiscal Year Operating leases Finance leases 2023 $ 174,464 $ 167 2024 139,368 161 2025 105,793 134 2026 79,025 — 2027 54,242 — Thereafter 103,144 — Total undiscounted lease payments 656,036 462 Less: imputed interest 73,540 27 Present value of lease liabilities $ 582,496 $ 435 |
Summary of Other Lease Information | Other lease information is as follows (dollars in thousands): For the Fiscal Year Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – operating leases $ 183,943 $ 189,012 Operating cash flows – finance leases 13 14 Financing cash flows – finance leases 161 202 Supplemental non-cash information on lease liabilities: Lease assets obtained in exchange for new operating lease liabilities $ 201,542 $ 180,945 Lease assets obtained in exchange for new finance lease liabilities 3 22 September 30, 2022 2021 Weighted-average remaining lease term (in years): Operating leases 5.2 5.1 Finance leases 2.7 3.7 Weighted-average discount rate: Operating leases 4.6 % 4.5 % Finance leases 0.3 % 0.3 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
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 2022 and 2021 are as follows (in thousands): SBS BSG Total Balance at September 30, 2020 $ 81,186 $ 458,852 540,038 Acquisitions (a) 231 (1,582 ) (1,351 ) Foreign currency translation 743 1,779 2,522 Balance at September 30, 2021 $ 82,160 $ 459,049 $ 541,209 Acquisitions 271 — 271 Foreign currency translation (12,871 ) (2,543 ) (15,414 ) Balance at September 30, 2022 $ 69,560 $ 456,506 $ 526,066 |
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. As of September 30, 2022 and 2021, we had the following (in thousands): September 30, 2022 September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Definite-lived Intangible assets: Customer relationships $ 21,406 $ (17,406 ) $ 4,000 $ 32,621 $ (26,246 ) $ 6,375 Distribution rights 10,155 (6,770 ) 3,385 11,660 (9,251 ) 2,409 Other intangible assets 3,968 (2,618 ) 1,350 5,238 (3,460 ) 1,778 Total definite-lived intangible assets 35,529 (26,794 ) 8,735 49,519 (38,957 ) 10,562 Indefinite-lived Intangible assets: Trade names 41,580 — 41,580 44,970 — 44,970 Total intangible assets, excluding goodwill, net $ 77,109 $ (26,794 ) $ 50,315 $ 94,489 $ (38,957 ) $ 55,532 |
Schedule of expected future amortization expense related to definite-lived intangible assets | As of September 30, 2022, the expected future amortization expense related to definite-lived intangible assets is as follows (in thousands): Fiscal Year: 2023 $ 3,319 2024 2,370 2025 1,840 2026 781 2027 425 Thereafter — $ 8,735 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Payables And Accruals [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consist of the following (in thousands): September 30, 2022 2021 Compensation and benefits $ 58,693 $ 73,344 Deferred revenue 18,810 23,859 Interest payable 13,445 24,101 Rental obligations 10,701 10,501 Insurance reserves 5,742 5,934 Property and other taxes 4,161 3,853 Operating accruals and other 49,513 64,563 Total accrued liabilities $ 161,065 $ 206,155 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | Long-term debt consists of the following (dollars in thousands): September 30, 2022 2021 Interest Rates Term loan B: Variable-rate tranche $ 407,500 $ 413,000 LIBOR plus 2.25% Senior notes due Apr. 2025 — 300,000 8.750% Senior notes due Dec. 2025 679,961 679,961 5.625% Total $ 1,087,461 $ 1,392,961 Plus: finance lease obligations 435 679 Less: unamortized debt issuance costs and discount, net 4,695 10,916 Total debt $ 1,083,201 $ 1,382,724 Less: current maturities 158 194 Total long-term debt $ 1,083,043 $ 1,382,530 |
Schedule of maturities of debt | Maturities of our debt, excluding finance leases and our ABL facility, are as follows at September 30, 2022 (in thousands): Fiscal Year: 2023 $ — 2024 407,500 2025 — 2026 679,961 2027 — Thereafter — Total $ 1,087,461 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Foreign Currency Forwards | |
Schedule of notional amount held through foreign currency forwards, based upon exchange rates | At September 30, 2022, we held forwards, which expire on various dates during the first four months of fiscal year 2023, with a notional amount, based upon exchange rates at September 30, 2022, as follows (in thousands): Notional Currency Notional Amount Canadian Dollar $ 19,831,921 Euro 21,910,748 British Pound 47,741,922 Mexican Peso 11,432,249 Total $ 100,916,839 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | The provision for income taxes for the fiscal years 2022, 2021 and 2020 consists of the following (in thousands): Fiscal Year Ended September 30, 2022 2021 2020 Current: Federal $ 48,888 $ 64,526 $ 22,282 Foreign 16,370 14,869 6,120 State 10,739 14,364 4,730 Total current portion 75,997 93,759 33,132 Deferred: Federal 93 (6,054 ) 10,177 Foreign (15,380) (1,195 ) 1,321 State (166) (1,434 ) 2,092 Total deferred portion (15,453) (8,683 ) 13,590 Total provision for income taxes $ 60,544 $ 85,076 $ 46,722 |
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, 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 2.6 3.0 3.4 Effect of foreign operations 2.2 0.8 (0.4 ) Valuation allowances (7.2 ) 0.6 4.6 Deferred tax impact of foreign branch conversion 2.7 — — Unrecognized tax benefit 2.9 — — Share-based payment awards 0.6 0.6 1.2 Other, net — 0.2 (0.6 ) Effective tax rate 24.8 % 26.2 % 29.2 % |
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, 2022 2021 Deferred tax assets attributable to: Foreign loss carryforwards $ 30,548 $ 34,007 Accrued liabilities 24,023 18,662 Share-based compensation expense 7,320 8,392 U.S. foreign tax credits 10,712 11,199 U.S. federal social security tax deferral — 3,089 Inventory adjustments 8,156 2,754 Other (391) 2,984 Total deferred tax assets 80,368 81,087 Valuation allowance (31,920) (51,810 ) Total deferred tax assets, net 48,448 29,277 Deferred tax liabilities attributable to: Depreciation and amortization 112,115 109,038 Net deferred tax liability $ 63,667 $ 79,761 |
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, 2022 2021 Balance at beginning of the fiscal year $ 2,092 $ 2,053 Increases related to prior year tax positions 7,603 5 Decreases related to prior year tax positions (874 ) (2 ) Increases related to current year tax positions 710 195 Lapse of statute (366) (159 ) Balance at end of fiscal year $ 9,165 $ 2,092 |
Segments and Disaggregated Re_2
Segments and Disaggregated Revenue (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment data | Segment data for the fiscal years 2022, 2021 and 2020 are as follows (in thousands): 2022 2021 2020 Net sales (for the fiscal year indicated): SBS $ 2,193,044 $ 2,278,382 $ 2,080,703 BSG 1,622,521 1,596,615 1,433,627 Total $ 3,815,565 $ 3,874,997 $ 3,514,330 Earnings before provision for income taxes: Segment operating earnings: SBS $ 350,884 $ 417,658 $ 237,588 BSG 193,407 205,078 194,206 Segment operating earnings 544,291 622,736 431,794 Unallocated expenses 179,074 199,682 159,009 Restructuring 27,577 4,611 14,025 Consolidated operating earnings 337,640 418,443 258,760 Interest expense 93,543 93,509 98,793 Earnings before provision for income taxes $ 244,097 $ 324,934 $ 159,967 Depreciation and amortization: SBS $ 57,798 $ 61,887 $ 65,207 BSG 30,098 28,597 29,324 Corporate 12,033 11,717 12,248 Total $ 99,929 $ 102,201 $ 106,779 Payments for property and equipment: SBS $ 53,788 $ 43,165 $ 73,130 BSG 34,312 24,880 27,338 Corporate 11,150 5,859 10,390 Total $ 99,250 $ 73,904 $ 110,858 Total assets (as of September 30): SBS $ 1,195,732 $ 1,235,427 $ 1,370,745 BSG 1,251,455 1,179,263 1,106,801 Sub-total 2,447,187 2,414,690 2,477,546 Corporate 129,680 432,442 417,601 Total $ 2,576,867 $ 2,847,132 $ 2,895,147 |
Schedule of geographic area information | Certain geographic data is as follows (in thousands): 2022 2021 2020 Net sales (for the fiscal year indicated): United States $ 3,142,898 $ 3,228,091 $ 2,914,171 Other countries 672,667 646,906 600,159 Total $ 3,815,565 $ 3,874,997 $ 3,514,330 Long-lived assets (as of September 30): United States $ 263,929 $ 267,839 $ 264,936 United Kingdom 9,147 15,089 20,183 Other countries 24,800 24,449 29,910 Total $ 297,876 $ 307,377 $ 315,029 |
Schedule of disaggregation of segment revenues by merchandise category and sales channels | The following tables disaggregate our segment revenues by merchandise category. We have reclassified certain prior year amounts to conform to current year presentation. Fiscal Year Ended September 30, SBS 2022 2021 2020 Hair color 38.2 % 36.3 % 34.4 % Hair care 23.6 % 22.1 % 20.6 % Styling tools and supplies 19.1 % 21.7 % 24.8 % Nail 10.8 % 10.9 % 10.9 % Skin and cosmetics 7.6 % 8.3 % 8.2 % Other beauty items 0.7 % 0.7 % 1.1 % Total 100.0 % 100.0 % 100.0 % Fiscal Year Ended September 30, BSG 2022 2021 2020 Hair care 43.5 % 41.5 % 40.4 % Hair color 39.0 % 39.8 % 38.3 % Styling tools and supplies 10.9 % 11.5 % 12.7 % Skin and cosmetics 3.8 % 4.0 % 4.3 % Nail 2.4 % 2.7 % 3.6 % Other beauty items 0.4 % 0.5 % 0.7 % 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, 2022 2021 2020 2022 2021 2020 Company-operated stores 94.0 % 94.1 % 91.8 % 66.4 % 69.1 % 68.9 % E-commerce 6.0 % 5.9 % 8.0 % 12.3 % 9.2 % 8.7 % Franchise stores — 0.0 % 0.2 % 7.4 % 7.5 % 7.1 % Distributor sales consultants — — — 13.9 % 14.2 % 15.3 % Total 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Summary of restructuring expense and gains | Restructuring expenses, included in Cost of Goods Sold (“COGS”) and Restructuring for the fiscal years ended September 30, 2022, 2021 and 2020, are as follows (in thousands): 2022 2021 2020 Included in COGS Distribution Center Consolidation and Store Optimization Plan $ 19,403 $ — $ — Transformation Plan (1,087 ) 1,444 — Total in COGS $ 18,316 $ 1,444 $ — Included in Restructuring Distribution Center Consolidation and Store Optimization Plan $ 26,110 $ — $ — Transformation Plan 1,467 3,160 12,514 Project Surge — 1,451 1,511 Total in Restructuring 27,577 4,611 14,025 Total Restructuring Expenses $ 45,893 $ 6,055 $ 14,025 |
Distribution Center Consolidation And Store Optimization Plan | |
Schedule of restructuring | The liability related to our Distribution Center Consolidation and Store Optimization Plan, which is included in accrued liabilities on our consolidated balance sheets, is as follows (in thousands): Distribution Center Consolidation and Store Optimization Plan Liability at September 30, 2021 Expenses Cash Payments Non-Cash Amounts Liability at September 30, 2022 SBS Impairment - operating lease assets (a) $ — $ 18,668 $ — $ (18,668 ) $ — Impairment - property and equipment (a) — 2,921 — (2,921 ) — Inventory adjustments (COGS) (b) — 10,548 — (10,548 ) — Other (c) — 918 — 918 Total SBS $ — $ 33,055 $ — $ (32,137 ) $ 918 BSG Impairment - operating lease assets (a) $ — $ 2,894 $ — $ (2,894 ) $ — Impairment - property and equipment (a) — 336 — (336 ) — Inventory adjustments (COGS) (b) — 8,855 — (8,855 ) — Other (c) — 373 — — 373 Total BSG — 12,458 — (12,085 ) 373 Total Distribution Center Consolidation and Store Optimization Plan $ — $ 45,513 $ — $ (44,222 ) $ 1,291 (a) Remaining carrying value for the long-lived assets, including operating lease assets, were not material and approximate their fair value. (b) Inventory adjustments in COGS are related to obsolescence associated with planned closures. (c) Other expenses include closure-related costs. |
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, 2021 Expenses Cash Payments Non-Cash Amounts Liability at September 30, 2022 Workforce reductions $ 718 $ 466 $ 1,947 $ (763 ) $ — Facility closures 422 513 935 — — Inventory adjustments (COGS) — (1,087 ) — (1,087 ) — Other — 488 488 — — Total $ 1,140 $ 380 $ 3,370 $ (1,850 ) $ — |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Trade Accounts Receivable and Accounts Receivable, Other | |||
Allowance for Doubtful Accounts | $ 1.1 | $ 1.1 | |
Selling, general and administrative expenses or cost of goods sold | |||
Property Plant and Equipment | |||
Depreciation expense | $ 95.9 | $ 93.2 | $ 95.5 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Lease Accounting (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Line Items] | |
Lease extended term | five years |
Minimum | |
Leases [Line Items] | |
Lease term | 5 years |
Maximum | |
Leases [Line Items] | |
Lease term | 10 years |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Summary of Property and Equipment Balances and Estimated Useful Lives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | $ 1,118,687 | $ 1,074,780 | |
Accumulated depreciation and amortization | (820,811) | (767,403) | |
Total property and equipment, net | 297,876 | 307,377 | $ 315,029 |
Land | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 9,949 | 10,119 | |
Buildings and building improvements | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 56,834 | 57,049 | |
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | 342,326 | 326,595 | |
Furniture, fixtures and equipment | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment, gross | $ 709,578 | $ 681,017 | |
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 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Valuation of Long-Lived Assets and Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Valuation of Long-Lived Assets and Definite-lived Intangible Assets | |||
Impairment loss | $ 25,029 | $ 628 | $ 2,087 |
Distribution Center Consolidation and Store Optimization Plan | |||
Valuation of Long-Lived Assets and Definite-lived Intangible Assets | |||
Impairment loss | $ 24,800 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Goodwill and Indefinite-lived Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
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 |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Revenue recognition payment terms | 30 days |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies - Summary of Contract Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Contract With Customer Liability [Line Items] | ||
Total liability | $ 13,460 | $ 16,744 |
Gift Cards | Accrued Liabilities | ||
Contract With Customer Liability [Line Items] | ||
Total liability | 5,060 | 5,299 |
Rewards Loyalty Program | Accrued Liabilities | ||
Contract With Customer Liability [Line Items] | ||
Total liability | $ 8,400 | $ 11,445 |
Basis of Presentation and Si_11
Basis of Presentation and Significant Accounting Policies - Schedule of Changes to Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Contract With Customer Liability [Abstract] | |
Beginning balance | $ 16,744 |
Loyalty points and gift cards issued but not redeemed, net of estimated breakage | 5,673 |
Revenue recognized from beginning liability | (8,957) |
Ending balance | $ 13,460 |
Basis of Presentation and Si_12
Basis of Presentation and Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Advertising Costs | |||
Advertising costs | $ 69.8 | $ 70.9 | $ 72.7 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Long-term debt | ||
Long-term debt, Carrying Value | $ 1,087,461 | $ 1,392,961 |
Long-term debt, Fair Value | 1,037,494 | 1,431,086 |
Level 2 | Term loan B | ||
Long-term debt | ||
Long-term debt, Carrying Value | 407,500 | 413,000 |
Long-term debt, Fair Value | 639,163 | 411,451 |
Level 1 | Senior notes | ||
Long-term debt | ||
Long-term debt, Carrying Value | 679,961 | 979,961 |
Long-term debt, Fair Value | 398,331 | 1,019,635 |
Fair value measurement on recurring basis | ||
Financial Assets | ||
Total assets | 3,860 | 35 |
Fair value measurement on recurring basis | Level 2 | Other assets | ||
Financial Assets | ||
Interest rate caps | 3,860 | $ 35 |
Fair value measurement on recurring basis | Level 2 | Other current assets | ||
Financial Assets | ||
Foreign exchange contracts | 294 | |
Fair value measurement on recurring basis | Level 2 | Accrued Liabilities | ||
Financial Liabilities | ||
Foreign exchange contracts | $ 79 |
Accumulated Stockholders' Equ_3
Accumulated Stockholders' Equity - Share Repurchase Program (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders Equity Note [Abstract] | |||
Amount of shares authorized to be repurchased | $ 1,000,000,000 | ||
Number of shares surrendered by grantees to satisfy personal income tax withholdings obligations upon vesting of equity-based awards | 59,000 | 71,000 | 159,000 |
Shares surrendered by grantees to satisfy personal income tax withholdings obligations upon vesting of equity-based awards, value | $ 1,200,000 | $ 1,000,000 | $ 300,000 |
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, 2022 | Sep. 30, 2020 | |
Stockholders Equity Note [Abstract] | ||
Number of shares repurchased | 6,832 | 4,702 |
Total cost of share repurchased | $ 130,328 | $ 61,357 |
Accumulated Stockholders' Equ_5
Accumulated Stockholders' Equity - Change in AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | $ 280,741 | $ 15,443 |
Balance | 293,636 | 280,741 |
Interest rate caps | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (2,085) | (3,003) |
Other comprehensive income (loss) before reclassifications, net of tax | 2,310 | (282) |
Reclassification to net earnings, net of tax | 1,735 | 1,200 |
Balance | 1,960 | (2,085) |
Foreign exchange contracts | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (402) | 411 |
Other comprehensive income (loss) before reclassifications, net of tax | (149) | (1,070) |
Reclassification to net earnings, net of tax | (128) | 257 |
Balance | (679) | (402) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (92,154) | (102,111) |
Other comprehensive income (loss) before reclassifications, net of tax | (60,974) | 9,957 |
Balance | (153,128) | (92,154) |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance | (94,641) | (104,703) |
Other comprehensive income (loss) before reclassifications, net of tax | (58,813) | 8,605 |
Reclassification to net earnings, net of tax | 1,607 | 1,457 |
Balance | $ (151,847) | $ (94,641) |
Weighted-Average Shares (Detail
Weighted-Average Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share Reconciliation: | |||
Weighted-average basic shares | 108,665 | 112,653 | 113,881 |
Dilutive securities: | |||
Stock option and stock award programs | 1,628 | 1,559 | 799 |
Weighted-average diluted shares | 110,293 | 114,212 | 114,680 |
Weighted-Average Shares - Addit
Weighted-Average Shares - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
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) | 2.4 | 3.9 | 4.7 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Option | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Fair value of awards | $ 8.12 | $ 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 | $ 17.40 | $ 15.33 | $ 16.65 |
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% | 0% | 0% |
Omnibus Plans | Performance-based Awards | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of earnings | 200% | 200% | 200% |
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% | ||
Omnibus Plans | Market Based Awards | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of earnings | 200% | ||
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, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Share-based compensation expense | $ 9,944 | $ 11,656 | $ 8,426 |
Income tax benefit related to share-based compensation expense | $ 2,634 | $ 2,834 | $ 2,059 |
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, 2022 USD ($) $ / shares shares | |
Share-Based Payments | |
Payout percentage (in percentage) | 100% |
Performance Unit Awards (in shares) | |
Unvested at the beginning of the period (in shares) | shares | 302 |
Granted (in shares) | shares | 212 |
Adjustment for performance achievement (in shares) | shares | 14 |
Vested (in shares) | shares | (18) |
Forfeited (in shares) | shares | (150) |
Unvested at the end of the period (in shares) | shares | 360 |
Performance Unit Awards (in dollars per share) | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 16.59 |
Granted (in dollars per share) | $ / shares | 17.40 |
Adjustment for performance achievement (in dollar per share) | $ / shares | 15.33 |
Vested (in dollar per share) | $ / shares | 15.33 |
Forfeited (in dollars per share) | $ / shares | 17.01 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 16.75 |
Total unrecognized compensation expenses related to unvested awards | $ | $ 0 |
Share-Based Payments - Market-B
Share-Based Payments - Market-Based Awards (Details) - Market Based Awards $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Share-Based Payments | |
Unvested at the beginning of the period (in shares) | shares | 90 |
Granted (in shares) | shares | 212 |
Forfeited (in shares) | shares | (48) |
Unvested at the end of the period (in shares) | shares | 254 |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 20.96 |
Granted (in dollars per share) | $ / shares | 23.39 |
Forfeited (in dollars per share) | $ / shares | 22.41 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 22.72 |
Total unrecognized compensation expenses related to unvested awards | $ | $ 3.6 |
Weighted average period for recognition of unvested awards | 2 years |
Share-Based Payments - Schedule
Share-Based Payments - Schedule of weighted average assumptions for valuation of rTSR awards (Details) - Market Based Awards | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Weighted average assumptions relating to the valuation of stock options | ||
Expected term (in years) | 2 years 10 months 24 days | 2 years 8 months 12 days |
Expected volatility | 59.50% | 59.40% |
Risk-free interest rate | 0.70% | 0.20% |
Dividend yield | 0% | 0% |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock Options, Number of Outstanding Options | |||
Outstanding at the beginning of the period (in shares) | 5,165 | ||
Granted (in shares) | 304 | ||
Exercised (in shares) | (598) | ||
Forfeited or expired (in shares) | (1,688) | ||
Outstanding at the end of the period (in shares) | 3,183 | 5,165 | |
Exercisable at the end of the period (in shares) | 2,097 | ||
Stock Options, Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 18.46 | ||
Granted (in dollars per share) | 17.27 | ||
Exercised (in dollars per share) | 13.56 | ||
Forfeited or expired (in dollars per share) | 21.71 | ||
Outstanding at the end of the period (in dollars per share) | 17.54 | $ 18.46 | |
Exercisable at the end of the period (in dollars per share) | $ 20.13 | ||
Stock Options, Weighted Average Remaining Contractual Term | |||
Weighted average remaining contractual term (in years) | 5 years 9 months 18 days | 4 years 7 months 6 days | |
Exercisable at September 30, 2022 | 4 years 6 months | ||
Stock Options, Aggregate Intrinsic Value | |||
Outstanding balance at period end (in dollars) | $ 2,863 | $ 9,627 | |
Exercisable at the end of the period (in dollars) | $ 736 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Weighted average assumptions relating to the valuation of stock options | |||
Proceeds from exercises of stock options | $ 6,932 | $ 3,568 | $ 2,792 |
Stock Option Awards | |||
Weighted average assumptions relating to the valuation of stock options | |||
Expected term (in years) | 6 years | 6 years | 5 years |
Expected volatility | 48.70% | 44.50% | 35.80% |
Risk-free interest rate | 1.20% | 0.40% | 1.70% |
Dividend yield | 0% | 0% | 0% |
Weighted average fair value of the stock options issued (in dollars per share) | $ 8.12 | $ 5.66 | $ 5.86 |
Aggregate fair value of stock options | $ 2,500 | $ 3,400 | $ 2,700 |
Aggregate intrinsic value of options exercised | 4,000 | 700 | 500 |
Proceeds from exercises of stock options | 8,100 | 4,600 | 3,000 |
Tax benefit realized for the tax deductions of stock option exercises | 800 | $ 100 | $ 100 |
Total unrecognized compensation expenses related to unvested awards | $ 2,800 | ||
Weighted average period for recognition of unvested awards | 1 year 7 months 6 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, 2022 USD ($) $ / shares shares | |
Restricted stock (in shares) | |
Unvested at the beginning of the period (in shares) | shares | 135 |
Vested (in shares) | shares | (68) |
Forfeited (in shares) | shares | (14) |
Unvested at the end of the period (in shares) | shares | 53 |
Restricted Stock (in dollars per share) | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 15.60 |
Vested (in dollar per share) | $ / shares | 15.60 |
Forfeited (in dollars per share) | $ / shares | 15.78 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 15.55 |
Total unrecognized compensation expenses related to unvested awards | $ | $ 0.1 |
Weighted average period for recognition of unvested awards | 3 months 18 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, 2022 USD ($) $ / shares shares | |
Restricted stock (in shares) | |
Unvested at the beginning of the period (in shares) | shares | 568 |
Granted (in shares) | shares | 818 |
Vested (in shares) | shares | (294) |
Forfeited (in shares) | shares | (168) |
Unvested at the end of the period (in shares) | shares | 924 |
Restricted Stock (in dollars per share) | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 9.41 |
Granted (in dollars per share) | $ / shares | 17.37 |
Vested (in dollar per share) | $ / shares | 9.30 |
Forfeited (in dollars per share) | $ / shares | 14.75 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 15.52 |
Total unrecognized compensation expenses related to unvested awards | $ | $ 8.2 |
Weighted average period for recognition of unvested awards | 1 year 10 months 24 days |
Leases - Summary of Operating a
Leases - Summary of Operating and Finance Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Assets: | ||
Operating lease assets | $ 532,177 | $ 537,673 |
Finance lease | $ 1,897 | $ 2,556 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Total lease assets | $ 534,074 | $ 540,229 |
Current: | ||
Current operating lease liabilities | 157,734 | 156,234 |
Finance lease | $ 158 | $ 194 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Long-term: | ||
Long-term operating lease liabilities | $ 424,762 | $ 404,147 |
Finance lease | $ 277 | $ 485 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt |
Total lease liabilities | $ 582,931 | $ 561,060 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee Lease Description [Line Items] | ||
Total lease costs | $ 250,719 | $ 247,623 |
Cost of Goods Sold and Selling, General and Administrative Expenses | ||
Lessee Lease Description [Line Items] | ||
Operating lease costs | 188,206 | 193,583 |
Selling, General and Administrative Expenses | ||
Lessee Lease Description [Line Items] | ||
Amortization of leased assets | 299 | 328 |
Variable lease costs | 62,201 | 53,698 |
Interest Expense | ||
Lessee Lease Description [Line Items] | ||
Interest on lease liabilities | $ 13 | $ 14 |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Operating leases | ||
2023 | $ 174,464 | |
2024 | 139,368 | |
2025 | 105,793 | |
2026 | 79,025 | |
2027 | 54,242 | |
Thereafter | 103,144 | |
Total undiscounted lease payments | 656,036 | |
Less: imputed interest | 73,540 | |
Present value of lease liabilities | 582,496 | |
Finance leases | ||
2023 | 167 | |
2024 | 161 | |
2025 | 134 | |
Total undiscounted lease payments | 462 | |
Less: imputed interest | 27 | |
Present value of lease liabilities | $ 435 | $ 679 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Line Items] | |
Operating lease liability | $ 582,496 |
Retail Stores | |
Leases [Line Items] | |
Operating lease liability | $ 7,900 |
Leases - Summary of Other Lease
Leases - Summary of Other Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows – operating leases | $ 183,943 | $ 189,012 |
Operating cash flows – finance leases | 13 | 14 |
Financing cash flows – finance leases | 161 | 202 |
Supplemental non-cash information on lease liabilities: | ||
Lease assets obtained in exchange for new operating lease liabilities | 201,542 | 180,945 |
Lease assets obtained in exchange for new finance lease liabilities | $ 3 | $ 22 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 5 years 2 months 12 days | 5 years 1 month 6 days |
Finance leases | 2 years 8 months 12 days | 3 years 8 months 12 days |
Weighted-average discount rate: | ||
Operating leases | 4.60% | 4.50% |
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, 2022 | Sep. 30, 2021 | |
Change in the carrying amounts of goodwill | ||
Balance at the beginning of the period | $ 541,209 | $ 540,038 |
Acquisitions | 271 | (1,351) |
Foreign currency translation | (15,414) | 2,522 |
Balance at the end of the period | 526,066 | 541,209 |
Sally Beauty Supply | ||
Change in the carrying amounts of goodwill | ||
Balance at the beginning of the period | 82,160 | 81,186 |
Acquisitions | 271 | 231 |
Foreign currency translation | (12,871) | 743 |
Balance at the end of the period | 69,560 | 82,160 |
Beauty Systems Group | ||
Change in the carrying amounts of goodwill | ||
Balance at the beginning of the period | 459,049 | 458,852 |
Acquisitions | (1,582) | |
Foreign currency translation | (2,543) | 1,779 |
Balance at the end of the period | $ 456,506 | $ 459,049 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of changes in carrying amounts of goodwill (Parenthetical) (Details) $ in Millions | Sep. 30, 2021 USD ($) |
Ami-Co | |
Change in the carrying amounts of goodwill | |
Intangible assets subject to amortization | $ 2.5 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of other intangible assets, excluding goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Indefinite and Finite Lived Intangible Assets by Major Class | ||
Definite-lived Intangible assets, Gross Carrying Amount | $ 35,529 | $ 49,519 |
Definite-lived Intangible assets, Accumulated Amortization | (26,794) | (38,957) |
Definite-lived Intangible assets, Net | 8,735 | 10,562 |
Gross Carrying Amount | 77,109 | 94,489 |
Net | 50,315 | 55,532 |
Total intangible assets, excluding goodwill,Gross Carrying Amount | 77,109 | 94,489 |
Trade Names | ||
Indefinite and Finite Lived Intangible Assets by Major Class | ||
Net | 41,580 | 44,970 |
Customer Relationships | ||
Indefinite and Finite Lived Intangible Assets by Major Class | ||
Definite-lived Intangible assets, Gross Carrying Amount | 21,406 | 32,621 |
Definite-lived Intangible assets, Accumulated Amortization | (17,406) | (26,246) |
Definite-lived Intangible assets, Net | 4,000 | 6,375 |
Distribution Rights | ||
Indefinite and Finite Lived Intangible Assets by Major Class | ||
Definite-lived Intangible assets, Gross Carrying Amount | 10,155 | 11,660 |
Definite-lived Intangible assets, Accumulated Amortization | (6,770) | (9,251) |
Definite-lived Intangible assets, Net | 3,385 | 2,409 |
Other Intangible Assets | ||
Indefinite and Finite Lived Intangible Assets by Major Class | ||
Definite-lived Intangible assets, Gross Carrying Amount | 3,968 | 5,238 |
Definite-lived Intangible assets, Accumulated Amortization | (2,618) | (3,460) |
Definite-lived Intangible assets, Net | $ 1,350 | $ 1,778 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Indefinite and Finite Lived Intangible Assets by Major Class | |||
Amortization expense | $ 4.1 | $ 6.6 | $ 9 |
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_6
Goodwill and Intangible Assets - Expected future amortization expense related to definite-lived intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Estimated future amortization expense related to intangible assets subject to amortization: | ||
2023 | $ 3,319 | |
2024 | 2,370 | |
2025 | 1,840 | |
2026 | 781 | |
2027 | 425 | |
Definite-lived Intangible assets, Net | $ 8,735 | $ 10,562 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Accrued Liabilities | ||
Compensation and benefits | $ 58,693 | $ 73,344 |
Deferred revenue | 18,810 | 23,859 |
Interest payable | 13,445 | 24,101 |
Rental obligations | 10,701 | 10,501 |
Insurance reserves | 5,742 | 5,934 |
Property and other taxes | 4,161 | 3,853 |
Operating accruals and other | 49,513 | 64,563 |
Total accrued liabilities | $ 161,065 | $ 206,155 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Commitments And Contingencies Disclosure [Abstract] | ||
Outstanding letters of credit | $ 18.6 | $ 18.3 |
Debt - Short-term Debt (Details
Debt - Short-term Debt (Details) - ABL facility - USD ($) | 1 Months Ended | ||
May 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instruments | |||
Outstanding borrowing | $ 500,000,000 | $ 68,500,000 | $ 0 |
Debt instrument term | 5 years | ||
Debt instrument, maturity date | May 11, 2026 | ||
Line of credit facility, commitment fee percentage | 0.20% | ||
Revolving credit facility | $ 412,900,000 | ||
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, 2022 | Sep. 30, 2021 | |
Debt Instruments | ||
Total | $ 1,087,461 | $ 1,392,961 |
Variable-rate tranche | ||
Debt Instruments | ||
Total | $ 407,500 | 413,000 |
Variable-rate tranche | LIBOR | ||
Debt Instruments | ||
Percentage points added to the reference rate | 2.25% | |
Senior notes due Apr. 2025 | ||
Debt Instruments | ||
Total | 300,000 | |
Interest rate (as a percent) | 8.75% | |
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, 2022 | Sep. 30, 2021 |
Debt Disclosure [Abstract] | ||
Total | $ 1,087,461 | $ 1,392,961 |
Plus: finance lease obligations | 435 | 679 |
Less: unamortized debt issuance costs and discount, net | 4,695 | 10,916 |
Total debt | $ 1,083,201 | $ 1,382,724 |
Debt - Details of Long-term D_3
Debt - Details of Long-term Debt Table - Total long-term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Disclosure [Abstract] | ||
Total debt | $ 1,083,201 | $ 1,382,724 |
Less: current maturities | 158 | 194 |
Total long-term debt | $ 1,083,043 | $ 1,382,530 |
Debt - Maturities of the Compan
Debt - Maturities of the Company's debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Disclosure [Abstract] | ||
2024 | $ 407,500 | |
2026 | 679,961 | |
Total | $ 1,087,461 | $ 1,392,961 |
Debt - Term loan (Details)
Debt - Term loan (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2017 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instruments | ||||
Remaining aggregate outstanding principal amount paid | $ 770,286 | $ 422,258 | $ 882,921 | |
Loss on extinguishment of debt from write-off of unamortized deferred financing costs | $ (16,439) | (4,260) | $ (38) | |
Term loan B | ||||
Debt Instruments | ||||
Remaining aggregate outstanding principal amount paid | 1,400 | |||
Fixed Rate Tranche | Term loan B | ||||
Debt Instruments | ||||
Remaining aggregate outstanding principal amount paid | 213,200 | |||
Loss on extinguishment of debt from write-off of unamortized deferred financing costs | (1,400) | |||
Variable-rate tranche | Term loan B | ||||
Debt Instruments | ||||
Remaining aggregate outstanding principal amount paid | 8,300 | |||
Loss on extinguishment of debt from write-off of unamortized deferred financing costs | $ (100) | |||
Sally Holdings, LLC | Term Loan B | ||||
Debt Instruments | ||||
Debt instrument term | 7 years | |||
Debt instrument, face amount | $ 850,000 | |||
Debt instrument, maturity date | Jul. 05, 2024 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instruments | ||||
Loss on extinguishment of debt from write-off of unamortized deferred financing costs | $ (16,439) | $ (4,260) | $ (38) | |
Senior notes due Nov. 2023 | ||||
Debt Instruments | ||||
Debt instrument, face amount | $ 300,000 | $ 197,400 | ||
Interest rate | 5.50% | |||
Call premium | 13,100 | $ 1,800 | ||
Loss on extinguishment of debt from write-off of unamortized deferred financing costs | (16,400) | (2,800) | ||
Write off of unamortized debt issuance costs | $ 3,300 | $ 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, 2022 USD ($) instrument | Sep. 30, 2021 USD ($) | Jul. 31, 2017 USD ($) derivative | |
Derivative Instruments | |||
Number of derivative instruments held | instrument | 0 | ||
Foreign Currency Forwards | |||
Derivative Instruments | |||
Notional Amount | $ 100,916,839,000 | ||
Foreign Currency Forwards | Selling, General and Administrative Expenses | |||
Derivative Instruments | |||
Foreign currency forwards designated as cash flow hedges to be reclassified in to cost of goods sold | $ 9,600,000 | $ 3,000,000 | |
Interest rate caps | Variable-rate tranche | Sally Holdings, LLC | |||
Derivative Instruments | |||
Notional Amount | $ 550,000,000 | ||
Derivative instruments, expiration date | Jun. 30, 2023 | ||
Number of interest rate caps | derivative | 2 | ||
Interest rate caps | Term loan B variable tranche | Sally Holdings, LLC | |||
Derivative Instruments | |||
Interest rate caps designated as cash flow hedges to be reclassified in to interest expense over next 12 months | $ 2,300,000 | ||
Reclassified loss from AOCL, net | $ 1,700,000 | ||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | ||
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Forwards | |||
Derivative Instruments | |||
Foreign currency forwards designated as cash flow hedges to be reclassified net gains into cost of goods sold over next 12 months | $ 300,000 | ||
Foreign currency forwards designated as cash flow hedges to be reclassified in to cost of goods sold | $ 100,000 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Amount Held Through Foreign Currency Forwards, Based Upon Exchange Rates (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Foreign Currency Forwards | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | $ 100,916,839 |
Canadian Dollar | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 19,831,921 |
Euro | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 21,910,748 |
British Pound | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | 47,741,922 |
Mexican Peso | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Notional Amount | $ 11,432,249 |
401(k) and Profit Sharing Plan
401(k) and Profit Sharing Plan (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, expense recognized | $ 6,800,000 | $ 6,200,000 | $ 5,800,000 |
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 | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Current: | |||
Federal | $ 48,888 | $ 64,526 | $ 22,282 |
Foreign | 16,370 | 14,869 | 6,120 |
State | 10,739 | 14,364 | 4,730 |
Total current portion | 75,997 | 93,759 | 33,132 |
Deferred: | |||
Federal | 93 | (6,054) | 10,177 |
Foreign | (15,380) | (1,195) | 1,321 |
State | (166) | (1,434) | 2,092 |
Total deferred portion | (15,453) | (8,683) | 13,590 |
Total provision for income taxes | $ 60,544 | $ 85,076 | $ 46,722 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 2.60% | 3% | 3.40% |
Effect of foreign operations | 2.20% | 0.80% | (0.40%) |
Valuation allowances | (7.20%) | 0.60% | 4.60% |
Deferred tax impact of foreign branch conversion | 2.70% | ||
Unrecognized tax benefit | 2.90% | ||
Share-based payment awards | 0.60% | 0.60% | 1.20% |
Other, net | 0.20% | (0.60%) | |
Effective tax rate | 24.80% | 26.20% | 29.20% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Deferred tax assets attributable to: | |||
Foreign loss carryforwards | $ 30,548 | $ 34,007 | |
Accrued liabilities | 24,023 | 18,662 | |
Share-based compensation expense | 7,320 | 8,392 | |
U.S. foreign tax credits | 10,712 | 11,199 | |
U.S. federal social security tax deferral | 3,089 | ||
Inventory adjustments | 8,156 | 2,754 | |
Other | (391) | 2,984 | |
Total deferred tax assets | 80,368 | 81,087 | |
Valuation allowance | (31,920) | (51,810) | |
Total deferred tax assets, net | 48,448 | 29,277 | |
Deferred tax liabilities attributable to: | |||
Depreciation and amortization | 112,115 | 109,038 | |
Net deferred tax liability | 63,667 | 79,761 | |
Valuation allowances reduced | (19,900) | ||
Domestic earnings before provision for income taxes | 205,200 | 288,000 | $ 168,000 |
Foreign earnings before provision for income (loss) taxes | 38,900 | 36,900 | $ (8,000) |
Total operating loss carry-forward | 110,800 | 125,700 | |
Operating loss carry-forward, subject to valuation allowance | 60,900 | 109,400 | |
Amount of operating loss carry-forwards with an expiration date | 5,600 | ||
Amount of operating loss carry-forwards without an expiration date | 105,200 | ||
Total tax credit carryforwards | 13,100 | 14,100 | |
Expiring tax credit carryforwards | 800 | ||
Expiring tax credit carryforwards | 400 | ||
Non-expiring tax credit carryforwards | 1,200 | ||
Total Tax credit carryforwards, subject to a valuation allowance | 11,900 | $ 12,600 | |
U.S. foreign | |||
Deferred tax liabilities attributable to: | |||
Expiring tax credit carryforwards | $ 10,700 |
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, 2022 | Sep. 30, 2021 | |
Reconciliation of the changes in the amount of unrecognized tax benefits | ||
Balance at beginning of the fiscal year | $ 2,092 | $ 2,053 |
Increases related to prior year tax positions | 7,603 | 5 |
Decreases related to prior year tax positions | (874) | (2) |
Increases related to current year tax positions | 710 | 195 |
Lapse of statute | (366) | (159) |
Balance at end of fiscal year | 9,165 | 2,092 |
Total unrecognized tax benefits of accrued interest and penalties | 400 | $ 300 |
Uncertain tax benefits resulting from transfer pricing | $ 7,600 |
Segments and Disaggregated Re_3
Segments and Disaggregated Revenue (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Segments | |||
Number of reportable segments | segment | 2 | ||
Net sales: | |||
Total net sales | $ 3,815,565 | $ 3,874,997 | $ 3,514,330 |
Segment operating earnings: | |||
Segment operating earnings | 337,640 | 418,443 | 258,760 |
Restructuring | 27,577 | 4,611 | 14,025 |
Interest expense | 93,543 | 93,509 | 98,793 |
Earnings before provision for income taxes | 244,097 | 324,934 | 159,967 |
Depreciation and amortization: | |||
Depreciation and amortization | 99,929 | 102,201 | 106,779 |
Payments for property and equipment: | |||
Payments for property and equipment | 99,250 | 73,904 | 110,858 |
Total assets: | |||
Assets | $ 2,576,867 | $ 2,847,132 | $ 2,895,147 |
Number of single customer accounted for ten percent or more of revenue | 10% | 10% | 10% |
Long-lived assets: | |||
Long-lived assets | $ 297,876 | $ 307,377 | $ 315,029 |
United States | |||
Net sales: | |||
Total net sales | 3,142,898 | 3,228,091 | 2,914,171 |
Long-lived assets: | |||
Long-lived assets | 263,929 | 267,839 | 264,936 |
Foreign | |||
Net sales: | |||
Total net sales | 672,667 | 646,906 | 600,159 |
United Kingdom | |||
Long-lived assets: | |||
Long-lived assets | 9,147 | 15,089 | 20,183 |
Other countries | |||
Long-lived assets: | |||
Long-lived assets | 24,800 | 24,449 | 29,910 |
Operating segments | |||
Segment operating earnings: | |||
Segment operating earnings | 544,291 | 622,736 | 431,794 |
Total assets: | |||
Assets | 2,447,187 | 2,414,690 | 2,477,546 |
Corporate | |||
Segment operating earnings: | |||
Unallocated expenses | 179,074 | 199,682 | 159,009 |
Depreciation and amortization: | |||
Depreciation and amortization | 12,033 | 11,717 | 12,248 |
Payments for property and equipment: | |||
Payments for property and equipment | 11,150 | 5,859 | 10,390 |
Total assets: | |||
Assets | 129,680 | 432,442 | 417,601 |
Sally Beauty Supply | |||
Net sales: | |||
Total net sales | 2,193,044 | 2,278,382 | 2,080,703 |
Depreciation and amortization: | |||
Depreciation and amortization | 57,798 | 61,887 | 65,207 |
Payments for property and equipment: | |||
Payments for property and equipment | 53,788 | 43,165 | 73,130 |
Sally Beauty Supply | Operating segments | |||
Segment operating earnings: | |||
Segment operating earnings | 350,884 | 417,658 | 237,588 |
Total assets: | |||
Assets | 1,195,732 | 1,235,427 | 1,370,745 |
Beauty Systems Group | |||
Net sales: | |||
Total net sales | 1,622,521 | 1,596,615 | 1,433,627 |
Depreciation and amortization: | |||
Depreciation and amortization | 30,098 | 28,597 | 29,324 |
Payments for property and equipment: | |||
Payments for property and equipment | 34,312 | 24,880 | 27,338 |
Beauty Systems Group | Operating segments | |||
Segment operating earnings: | |||
Segment operating earnings | 193,407 | 205,078 | 194,206 |
Total assets: | |||
Assets | $ 1,251,455 | $ 1,179,263 | $ 1,106,801 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Sally Beauty Supply | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 100% | 100% | 100% |
Sally Beauty Supply | Hair color | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 38.20% | 36.30% | 34.40% |
Sally Beauty Supply | Hair care | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 23.60% | 22.10% | 20.60% |
Sally Beauty Supply | Styling tools and supplies | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 19.10% | 21.70% | 24.80% |
Sally Beauty Supply | Nail | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 10.80% | 10.90% | 10.90% |
Sally Beauty Supply | Skin and cosmetics | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 7.60% | 8.30% | 8.20% |
Sally Beauty Supply | Other Beauty items | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 0.70% | 0.70% | 1.10% |
Sally Beauty Supply | Sales channel, directly to consumer | Company-operated stores | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 94% | 94.10% | 91.80% |
Sally Beauty Supply | Sales channel, through intermediary | E-commerce | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 6% | 5.90% | 8% |
Sally Beauty Supply | Sales channel, through intermediary | Franchise stores | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 0% | 0.20% | |
Beauty Systems Group | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 100% | 100% | 100% |
Beauty Systems Group | Hair color | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 39% | 39.80% | 38.30% |
Beauty Systems Group | Hair care | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 43.50% | 41.50% | 40.40% |
Beauty Systems Group | Styling tools and supplies | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 10.90% | 11.50% | 12.70% |
Beauty Systems Group | Nail | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 2.40% | 2.70% | 3.60% |
Beauty Systems Group | Skin and cosmetics | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 3.80% | 4% | 4.30% |
Beauty Systems Group | Other Beauty items | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 0.40% | 0.50% | 0.70% |
Beauty Systems Group | Sales channel, directly to consumer | Company-operated stores | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 66.40% | 69.10% | 68.90% |
Beauty Systems Group | Sales channel, through intermediary | E-commerce | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 12.30% | 9.20% | 8.70% |
Beauty Systems Group | Sales channel, through intermediary | Franchise stores | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 7.40% | 7.50% | 7.10% |
Beauty Systems Group | Sales channel, through intermediary | Distributor sales consultants | |||
Disaggregation Of Revenue [Line Items] | |||
Percentage of net sales | 13.90% | 14.20% | 15.30% |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Expense and Gains (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||
Total in COGS | $ 18,316 | $ 1,444 | |
Total in Restructuring | 27,577 | 4,611 | $ 14,025 |
Total Restructuring Expenses | 45,893 | 6,055 | 14,025 |
Project Surge | |||
Restructuring Cost And Reserve [Line Items] | |||
Total in Restructuring | 1,451 | 1,511 | |
Distribution Center Consolidation And Store Optimization Plan | |||
Restructuring Cost And Reserve [Line Items] | |||
Total in COGS | 19,403 | ||
Total in Restructuring | 26,110 | ||
Transformation Plan | |||
Restructuring Cost And Reserve [Line Items] | |||
Total in COGS | (1,087) | 1,444 | |
Total in Restructuring | $ 1,467 | $ 3,160 | $ 12,514 |
Restructuring (Details)
Restructuring (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | $ 27,577,000 | $ 4,611,000 | $ 14,025,000 |
Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 45,513,000 | ||
Non-Cash Amounts | (44,222,000) | ||
Restructuring reserve, ending balance | 1,291,000 | ||
Transformation Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring reserve, beginning balance | 1,140,000 | ||
Restructuring charges | 380,000 | ||
Cash Payments | 3,370,000 | ||
Non-Cash Amounts | (1,850,000) | ||
Restructuring reserve, ending balance | 1,140,000 | ||
Project Surge | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 0 | ||
Restructuring reserve, ending balance | 0 | ||
Sally Beauty Supply | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 33,055,000 | ||
Non-Cash Amounts | (32,137,000) | ||
Restructuring reserve, ending balance | 918,000 | ||
Beauty Systems Group | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 12,458,000 | ||
Non-Cash Amounts | (12,085,000) | ||
Restructuring reserve, ending balance | 373,000 | ||
Impairment - Operating Lease Assets | Sally Beauty Supply | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 18,668,000 | ||
Non-Cash Amounts | (18,668,000) | ||
Impairment - Operating Lease Assets | Beauty Systems Group | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 2,894,000 | ||
Non-Cash Amounts | (2,894,000) | ||
Impairment - Property and Equipment | Sally Beauty Supply | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 2,921,000 | ||
Non-Cash Amounts | (2,921,000) | ||
Impairment - Property and Equipment | Beauty Systems Group | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 336,000 | ||
Non-Cash Amounts | (336,000) | ||
Inventory Adjustments (COGS) | Transformation Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | (1,087,000) | ||
Non-Cash Amounts | (1,087,000) | ||
Inventory Adjustments (COGS) | Sally Beauty Supply | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 10,548,000 | ||
Non-Cash Amounts | (10,548,000) | ||
Inventory Adjustments (COGS) | Beauty Systems Group | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 8,855,000 | ||
Non-Cash Amounts | (8,855,000) | ||
Other Restructuring | Transformation Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 488,000 | ||
Cash Payments | 488,000 | ||
Other Restructuring | Sally Beauty Supply | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 918,000 | ||
Restructuring reserve, ending balance | 918,000 | ||
Other Restructuring | Beauty Systems Group | Distribution Center Consolidation And Store Optimization Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring charges | 373,000 | ||
Restructuring reserve, ending balance | 373,000 | ||
Workforce reductions | Transformation Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring reserve, beginning balance | 718,000 | ||
Restructuring charges | 466,000 | ||
Cash Payments | 1,947,000 | ||
Non-Cash Amounts | (763,000) | ||
Restructuring reserve, ending balance | 718,000 | ||
Facility Closures | Transformation Plan | |||
Distribution Center Consolidation and Store Optimization Plan | |||
Restructuring reserve, beginning balance | 422,000 | ||
Restructuring charges | 513,000 | ||
Cash Payments | $ 935,000 | ||
Restructuring reserve, ending balance | $ 422,000 |