Supercuts 2011 Annual Report Download - page 141

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
15. SHAREHOLDERS' EQUITY (Continued)
Shareholders' Rights Plan:
The Company has a shareholders' rights plan pursuant to which one preferred share purchase right is held by shareholders for each
outstanding share of common stock. The rights become exercisable only following the acquisition by a person or group, without the prior
consent of the Board of Directors, of 15.0 percent or more of the Company's voting stock, or following the announcement of a tender offer or
exchange offer to acquire an interest of 15.0 percent or more. If the rights become exercisable, they entitle all holders, except the takeover
bidder, to purchase one one-thousandth of a share of preferred stock at an exercise price of $140, subject to adjustment, or in lieu of purchasing
the preferred stock, to purchase for the same exercise price common stock of the Company (or in certain cases common stock of an acquiring
company) having a market value of twice the exercise price of a right.
Share Repurchase Program:
In May 2000, the Company's Board of Directors (BOD) approved a stock repurchase program. Originally, the program authorized up to
$50.0 million to be expended for the repurchase of the Company's stock. The BOD elected to increase this maximum to $100.0 million in August
2003, to $200.0 million on May 3, 2005, and to $300.0 million on April 26, 2007. The timing and amounts of any repurchases will depend on
many factors, including the market price of the common stock and overall market conditions. Historically, the repurchases to date have been
made primarily to eliminate the dilutive effect of shares issued in conjunction with acquisitions, restricted stock grants and stock option
exercises. All repurchased shares become authorized but unissued shares of the Company. This repurchase program has no stated expiration
date. As of June 30, 2011, 2010, and 2009, a total accumulated 6.8 million shares have been repurchased for $226.5 million. As of June 30,
2011, $73.5 million remains to be spent on share repurchases under this program.
16. SEGMENT INFORMATION
As of June 30, 2011, the Company owned, franchised or held ownership interests in approximately 12,700 worldwide locations. The
Company's locations consisted of 9,419 North American salons (located in the U.S., Canada and Puerto Rico), 400 international salons, 96 hair
restoration centers, and 2,786 locations in which the Company maintains an ownership interest through its investments in affiliates.
The Company operates its North American salon operations through five primary concepts: Regis Salons, MasterCuts, SmartStyle,
Supercuts and Promenade salons. The concepts offer similar products and services, concentrate on the mass market consumer marketplace and
have consistent distribution channels. All of the company-owned and franchise salons within the North American salon concepts are located in
high traffic, retail shopping locations that attract mass market consumers, and the individual salons display similar long-term economic
characteristics. The salons share interdependencies and a common support base.
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