Sally Beauty Supply 2011 Annual Report Download - page 29

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Trademarks and Other Intellectual Property Rights
Our trademarks, certain of which are material to our business, are registered or legally protected in the
U.S., Canada and other countries in which we operate. Together with our subsidiaries, we own over 280
trademark registrations in the U.S., and over 980 trademark registrations outside the U.S. We also rely
upon trade secrets and know-how to develop and maintain our competitive position. We protect
intellectual property rights through a variety of methods, including reliance upon trademark, patent and
trade secret laws and confidentiality agreements with many vendors, employees, consultants and others
who have access to our proprietary information. The duration of our trademark registrations is generally
10 or 15 years, depending on the country in which a mark is registered, and generally the registrations can
be renewed. The scope and duration of intellectual property protection varies by jurisdiction and by
individual product.
Access to Public Filings
Our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on
Form 8-K, and amendments to such reports are available, without charge, on our website,
www.sallybeautyholdings.com, as soon as reasonably possible after they are filed electronically with the
Securities and Exchange Commission, or SEC, under the Exchange Act. We will provide copies of such
reports to any person, without charge, upon written request to our Investor Relations Department at
3001 Colorado Blvd, Denton, TX 76210. The information found on our website shall not be considered to
be part of this or any other report filed with or furnished to the SEC.
In addition to our website, you may read and copy public reports we file with or furnish to the SEC at the
SEC’s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You may obtain information
on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains
an internet site that contains our reports, proxy and information statements, and other information that we
file electronically with the SEC at www.sec.gov.
ITEM 1A. RISK FACTORS
The following describes risks that we believe to be material to our business. If any of the following risks or
uncertainties actually occurs, our business, financial condition and operating results could be materially
and adversely affected. This report also contains forward-looking statements and the following risks could
cause our actual results to differ materially from those anticipated in such forward-looking statements.
Risks Relating to Our Business
The beauty products distribution industry is highly competitive and is consolidating.
The beauty products distribution industry is highly fragmented, and there are few significant barriers to
entry into the marketplaces for most of the types of products and services we sell. Sally Beauty Supply
competes with other domestic and international beauty product wholesale and retail outlets, including
local and regional open line beauty supply stores, professional-only beauty supply stores, salons, mass
merchandisers, drug stores and supermarkets. BSG competes with other domestic and international beauty
product wholesale and retail suppliers and with manufacturers selling professional beauty products directly
to salons and individual salon professionals. We also face competition from authorized and unauthorized
retailers as well as e-commerce retailers offering professional salon-only and other products. The
availability of diverted professional salon products in unauthorized large format retail stores such as drug
stores, grocery stores and others could have a negative impact on our business. The primary competitive
factors in the beauty products distribution industry are the price at which we purchase branded and
exclusive-label products from manufacturers, the quality, perceived value, consumer brand name
recognition, packaging and mix of the products we sell, customer service, the efficiency of our distribution
network, and the availability of desirable store locations. Competitive conditions may limit our ability to
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