Supercuts 2003 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2003 Supercuts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 121

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
50
1.
BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Business Description:
Regis Corporation (the Company) owns, operates and franchises hairstyling and hair care salons throughout the United States, the United
Kingdom (UK), France, Canada, Puerto Rico and several other countries. Substantially all of the hairstyling and hair care salons owned
and operated by the Company in the United States are located in leased space in enclosed mall shopping centers or strip shopping centers.
Franchised salons throughout the United States are primarily located in strip shopping centers. The company-owned and franchised
salons in the UK, France and several other countries are owned and operated in malls, leading department stores, mass merchants and
high
-
street locations.
At June 30, 2003 and 2002, approximately three and five percent, respectively, of the Company’s outstanding common stock was owned
by Curtis Squire, Inc. (CSI), which is a holding company controlled by the Chairman of the Board of Directors of the Company. In
addition, approximately three and four percent of the Company’s outstanding common stock was owned by management and the
Company
’
s benefit plans at June 30, 2003 and 2002, respectively.
Consolidation:
The Consolidated Financial Statements include the accounts of the Company and all of its wholly-owned subsidiaries. In consolidation,
all material intercompany accounts and transactions are eliminated.
Use of Estimates:
The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of
America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. The more significant estimates made by management are the valuation of goodwill, the useful lives and net
realizable values of long-lived assets, the fair value of assets acquired in business combinations, the cost of product used and sold during
interim periods, tax liabilities and the recoverability of certain deferred tax assets, and various commitments and contingencies. Actual
results could differ from those estimates.