Company: SBH
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001193125-25-280122
Chunk: 55

Company: Sally Beauty Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 55
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 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.Customer Loyalty RewardsOur 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 Sally purchases. The program is free to join, and it provides our loyalty customers the ability to earn points on their Sally 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, 2025 and 2024 (in thousands):

F-11

Sally Beauty Holdings, Inc. and SubsidiariesNotes to Consolidated Financial StatementsFiscal Years ended September 30, 2025, 2024, and 2023 

           September 30,

           Contracts
            
           Balance Sheet Classification
            
           2025

           2024

           Gift cards
            
           Accrued liabilities
            
           $
           4,900

           $
           4,980

           Rewards loyalty program
            
           Accrued liabilities

           5,127

           6,513

           Total liability

           $
           10,027

           $
           11,493

         Changes to our performance-based contract liabilities for fiscal years 2025 and 2024 were as follows (in thousands):

           September 30,

           2025

           2024

           September 30, 2024

           $
           11,493

           $
           14,038

           Loyalty points and gift cards issued but not redeemed, net of estimated breakage
            
           7,334

           7,053

           Revenue recognized from beginning liability
            
           (8,