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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
The following provides additional information concerning the Company’s restructuring liabilities related to its fiscal year 2000 merger with
Supercuts UK, its fiscal year 1999 mergers and its restructuring liability related to its fiscal year 1999 restructuring plan for its international
operations.
The restructuring liability remaining at June 30, 2003 and 2002 relates to the October 31, 1999 merger with Supercuts UK and will be satisfied
through periodic contractual payments by the end of fiscal year 2004. In conjunction with the merger, the Company recorded a pre-tax merger
and transaction charge of $3.1 million in the second quarter of fiscal year 2000. This charge included approximately $2.6 million for severance
and other costs principally associated with the closure of Supercuts UK’s headquarters. Severance expense covered the termination of
approximately 11 employees of Supercuts UK who had duplicate positions within the corporate office functions. The charge also included
approximately $0.5 million for professional fees including investment banking, legal, accounting and miscellaneous transaction costs.
60
Restructuring-International
Restructuring – Mergers
Salon
Salon
Transaction
Closures and
Closures and
Charges-
(Dollars in thousands)
Dispositions
Other
Subtotal
Severance
Dispositions
Other
Subtotal
Mergers
Total
June 30, 2000
$
583
$
67
$
650
$
2,824
$
23
$
145
$
2,992
$
35
$
3,677
Cash utilization
(534
)
(5
)
(539
)
(1,616
)
(27
)
(48
)
(1,691
)
(47
)
(2,277
)
Foreign currency effect
(19
)
(62
)
(81
)
(209
)
31
(97
)
(275
)
12
(344
)
June 30, 2001
30
30
999
27
1,026
1,056
Cash utilization
(31
)
(31
)
(348
)
(27
)
(375
)
(406
)
Foreign currency effect
1
1
62
62
63
June 30, 2002
—
—
—
713
—
—
713
—
713
Cash utilization
(317
)
(317
)
(317
)
Foreign currency effect
41
41
41
June 30, 2003
$
—
$
—
$
—
$
437
$
—
$
—
$
437
$
—
$
437