Ulta 2012 Annual Report Download - page 15

on a continual basis. We will continue to make investments in our information systems to facilitate our growth
and enable us to enhance our competitive position.
Intellectual property
We have registered over 30 trademarks in the United States and other countries. The majority of our trademark
registrations contain the ULTA mark, including Ulta Salon Cosmetics Fragrance (and design), Ulta.com, and
Ulta Beauty and two related designs. We maintain our marks on a docket system to monitor filing deadlines for
renewal and continued validity. All marks that are deemed material to our business have been applied for or
registered in the United States and select foreign countries, including Canada.
We believe our trademarks, especially those related to the Ulta brand, have significant value and are important to
building brand recognition.
Government regulation
In our U.S. markets, we are affected by extensive laws, governmental regulations, administrative determinations,
court decisions and similar constraints. Such laws, regulations and other constraints may exist at the federal, state
or local levels in the United States. The cosmetic, dietary supplement, food and over-the-counter (OTC) drug
products we sell in our stores, including our Ulta branded products, are subject to regulation by the Food and
Drug Administration (FDA), the Federal Trade Commission (FTC) and State Attorneys General (AG) in the
United States. Such regulations principally relate to the safety of ingredients, proper labeling, manufacturing,
advertising, packaging and distribution of the products.
Products classified as cosmetics (as defined in the Food, Drug and Cosmetic (FDC) Act) are not subject to pre-
market approval by the FDA, but the products and the ingredients must generally be safe and must be properly
manufactured and labeled. Certain products, such as sunscreens and acne treatments, are classified as OTC drugs,
and certain ingestible products, such as vitamins and minerals, are classified as dietary supplements. Both OTC
drugs and dietary supplements have specific ingredients, labeling and manufacturing requirements. The labeling
of these products is subject to the requirements of the FDC Act and the Fair Packaging and Labeling Act.
Further, claims we make in advertising, including claims about the safety or efficacy of products, pricing claims
and environmental claims, are subject to regulation by the FTC and State AG’s who generally prohibit deceptive
practices.
The government regulations that most impact our day-to-day operations are the labor and employment and
taxation laws to which most retailers are typically subject. We are also subject to typical zoning and real estate
land use restrictions and typical advertising and consumer protection laws (both federal and state). Our salon
business is subject to state board regulations and state licensing requirements for our stylists and our salon
procedures.
In our store leases, we require our landlords to obtain all necessary zoning approvals and permits for the site to
be used as a retail site and we also ask them to obtain any zoning approvals and permits for our specific use (but
at times the responsibility for obtaining zoning approvals and permits for our specific use falls to us). We require
our landlords to deliver a certificate of occupancy for any work they perform on our buildings or the shopping
centers in which our stores are located. We are responsible for delivering a certificate of occupancy for any
remodeling or build-outs that we perform and are responsible for complying with all applicable laws in
connection with such construction projects or build-outs.
Associates
As of February 2, 2013, we employed approximately 5,600 people on a full-time basis and approximately 10,500
on a part-time basis. We have no collective bargaining agreements. We have not experienced any work stoppages
and believe we have good relationships with our associates.
Available Information
Our principal website address is www.ulta.com. We make available at this address under investor relations
(at http://ir.ulta.com), free of charge, our proxy statement, annual report to shareholders, annual report on
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