Sally Beauty Supply 2013 Annual Report Download - page 32

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Management Information Systems
Our management information systems provide order processing, accounting and management information
for the marketing, distribution and store operations functions of our business. A significant portion of
these systems have been developed internally. The information gathered by the management information
systems supports automatic replenishment of in-store inventory and provides support for product purchase
decisions. Please see ‘‘Risk Factors—We may be adversely affected by any disruption in our information
technology systems.’’
Employees
The following table sets forth certain information about the Company’s employees:
Year Ended
September 30,
2013 2012 2011
Salaried ..................................... 7,560 7,370 7,040
Hourly ...................................... 5,060 4,890 4,935
Part-time(a) .................................. 13,830 13,265 12,640
Balance at end of period ......................... 26,450 25,525 24,615
(a) Part-time employees enable us to supplement store staffing schedules, particularly in North
America.
Certain subsidiaries in Mexico have collective bargaining agreements covering warehouse and store
personnel which expire at various times over the next several years. We believe that we have good
relationships with our employees worldwide.
Management
For information concerning our directors and executive officers, please see ‘‘Directors and Executive
Officers of the Registrant’’ in Item 10 of this Annual Report.
Regulation
We are subject to a wide variety of laws and regulations, which historically have not had a material effect
on our business. For example, in the U.S., most of the products sold and the content and methods of
advertising and marketing utilized are regulated by a host of federal agencies, including, in each case, one
or more of the following: the Food and Drug Administration, or FDA, the Federal Trade Commission, or
FTC, and the Consumer Products Safety Commission. The transportation and disposal of many of our
products are also subject to federal regulation. State and local agencies regulate many aspects of our
business. In marketplaces outside of the U.S., regulation is also comprehensive and focused upon product
labeling and safety issues.
As of September 30, 2013, Sally Beauty Supply supplied 21 and BSG supplied 161 franchised stores located
in the U.S., Mexico and certain countries in Europe. As a result of these franchisor-franchisee
relationships, we are subject to regulation when offering and selling franchises in the applicable countries.
The applicable laws and regulations affect our business practices, as franchisor, in a number of ways,
including restrictions placed upon the offering, renewal, termination and disapproval of assignment of
franchises. To date, these laws and regulations have not had a material effect upon our operations.
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