Company: SBH
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019869
Chunk: 10

Company: Sally Beauty Holdings, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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2024

        September 30,2024

        Compensation and benefits
         
        $
        50,977

        $
        76,649

        Deferred revenue

        18,062

        16,080

        Interest payable

        13,650

        4,108

        Rental obligations

        10,865

        11,039

        Accrued freight

        9,975

        8,240

        Insurance reserves

        7,898

        7,526

        Operating accruals and other

        37,596

        39,308

        Total accrued liabilities
         
        $
        149,023

        $
        162,950

10.     Short-term and Long-term DebtDuring the three months ended December 31, 2024, the Company and other parties to the ABL facility entered into a fifth amendment which, among other things, extended the maturity date to December 11, 2029, improved certain covenant terms, and slightly increased our commitment fee to 0.25% from 0.20%. At December 31, 2024, there were no outstanding borrowings under our ABL facility, and we had $482.7 million available for borrowing, including under our Canadian sub-facility, subject to a borrowing base limitation, as reduced by outstanding letters of credit. In connection with the amendment, we incurred approximately $1.5 million in debt issuance costs that are being amortized over the remaining life of the ABL facility. Additionally, during the three months ended December 31, 2024, we voluntarily repaid $40.0 million of outstanding Term Loan B principle. In connection with the repayment, we recognized a $0.4 million loss on debt extinguishment within interest expense related to unamortized debt issuance costs. 

12

11.    Derivative Instruments and Hedging ActivitiesDuring the three months ended December 31, 2024, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 4, Fair Value Measurements, for the classification and fair value of our derivative instruments. Designated Cash Flow Hedges    Foreign Currency ForwardsWe regularly enter into foreign currency forwards to mitigate our exposure to exchange rate changes on forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. At December 31, 2024, we held forwards, which expire ratably through