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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
16. SEGMENT INFORMATION (Continued)
(1)
For the Year Ended June 30, 2008(1)(2)
Salons
Hair
Restoration
Centers
Unallocated
Corporate
North
America
International
Consolidated
(Dollars in thousands)
Revenues:
Service
$
1,635,238
$
165,379
$
61,873
$
—
$
1,862,490
Product
414,909
67,078
69,299
—
551,286
Royalties and fees
39,599
23,606
4,410
—
67,615
2,089,746
256,063
135,582
—
2,481,391
Operating expenses:
Cost of service
939,242
89,617
33,700
—
1,062,559
Cost of product
208,705
35,702
19,984
—
264,391
Site operating expenses
165,185
14,410
5,174
—
184,769
General and administrative
121,345
37,143
30,941
132,134
321,563
Rent
295,659
56,571
7,313
1,933
361,476
Depreciation and amortization
73,755
10,969
10,289
18,280
113,293
Total operating expenses
1,803,891
244,412
107,401
152,347
2,308,051
Operating income
285,855
11,651
28,181
(152,347
)
173,340
Other income (expense):
Interest expense
—
—
—
(
44,279
)
(44,279
)
Interest income and other, net
—
—
—
8,173
8,173
Income from continuing operations before income taxes and equity in
income of affiliated companies
$
285,855
$
11,651
$
28,181
$
(188,453
)
$
137,234
Total assets
$
1,249,827
$
120,443
$
284,898
$
580,703
$
2,235,871
Long
-
lived assets
355,287
35,902
11,616
79,046
481,851
Capital expenditures
51,057
10,624
4,191
19,927
85,799
Purchases of salon assets
119,822
6,719
19,036
—
145,577
On August 1, 2007, the Company contributed its accredited cosmetology schools to Empire Education Group, Inc. For the year ended
June 30, 2008 the results of operations for the month ended July 31, 2007 for the accredited cosmetology schools are reported in the
North American salons segment. The Company retained ownership of its one North American and four United Kingdom Sassoon
schools. Subsequent to August 1, 2007 results of operations for the Sassoon schools are included in their respective North American and
international salon segments.
On January 31, 2008, the Company merged its continental European franchise salon operations with the Franck Provost Salon Group. For
the year ended June 30, 2008 the results of operations for the seven months ended January 31, 2008 are reported in the international salon
segment.
(2)
Beginning with the period ended December 31, 2008, the operations of Trade Secret concept within the North American reportable
segment were accounted for as discontinued operations. All comparable periods will reflect Trade Secret as discontinued operations. See
further discussion at Note 2 to the Condensed Consolidated Financial Statements.
134