Form 8-K Under Armour, Inc. For: Feb 12

February 12, 2019 8:02 AM



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ________________________________________________________________________________ 
FORM 8-K
 ________________________________________________________________________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 12, 2019
________________________________________________________________________________  
UNDER ARMOUR, INC.
 ________________________________________________________________________________ 
Maryland
001-33202
52-1990078
(State or other jurisdiction of
incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
1020 Hull Street, Baltimore, Maryland
21230 
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (410) 454-6428
(Former name or former address, if changed since last report)
 ________________________________________________ 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

¨




Item 2.02. Results of Operations and Financial Condition.
On February 12, 2019, Under Armour, Inc. (“Under Armour”, or the “Company”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2018. A copy of Under Armour’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. Under Armour has scheduled a conference call for 8:30 a.m. ET on February 12, 2019 to discuss its financial results.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Exhibit
Under Armour, Inc. press release announcing financial results for the fourth quarter and year ended December 31, 2018.





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
UNDER ARMOUR, INC.
Date: February 12, 2019 
By:
/s/ David E. Bergman
David E. Bergman
Chief Financial Officer


ualogo013117a01.jpg
UNDER ARMOUR REPORTS FOURTH QUARTER AND FULL YEAR RESULTS; REITERATES FULL YEAR 2019 OUTLOOK

BALTIMORE, February 12, 2019Under Armour, Inc. (NYSE: UA, UAA) today announced financial results for the fourth quarter ended December 31, 2018. The company reports its financial performance in accordance with accounting principles generally accepted in the United States of America ("GAAP”). This press release refers to “currency neutral” and “adjusted” amounts, which are non-GAAP financial measures described below under the “Non-GAAP Financial Information” paragraph. References to adjusted financial measures exclude the impact of the company’s restructuring plans and the related tax effects, as well as adjustments to our one-time impacts of the 2017 U.S. tax reform legislation, which we refer to as the U.S. Tax Act. Reconciliations of non-GAAP amounts to the most directly comparable financial measure calculated in accordance with GAAP are presented in supplemental financial information furnished with this release. All per share amounts are reported on a diluted basis.

“Our 2018 results demonstrate significant progress against our multi-year transformation toward becoming an even stronger brand and more operationally excellent company,” said Under Armour Chairman and CEO Kevin Plank. “As we look ahead to 2019, our accelerated innovation agenda, disciplined go-to-market process and powerful consumer-centric approach gives us increasingly greater confidence in our ability to deliver for Under Armour athletes, customers and shareholders.”

Fourth Quarter 2018 Review

Revenue was up 2 percent to $1.4 billion (up 3 percent currency neutral).
Wholesale revenue increased 1 percent to $737 million and direct-to-consumer revenue was flat at $577 million, representing 41 percent of total revenue.
North America revenue decreased 6 percent to $965 million and our international business increased 24 percent to $395 million (up 28 percent currency neutral), representing 28 percent of total revenue. Within the international business, revenue was up 32 percent in EMEA (up 35 percent currency neutral), up 35 percent in Asia-Pacific (up 39 percent currency neutral), and down 15 percent in Latin America (down 11 percent currency neutral).
Apparel revenue increased 2 percent to $970 million with growth in the train category. Footwear revenue decreased 4 percent to $235 million primarily driven by lower sales to the off-price channel. Accessories revenue decreased 2 percent to $108 million.
Gross margin increased 160 basis points to 45.0 percent compared to the prior year, including a $2 million impact related to restructuring efforts. Excluding restructuring efforts in both periods, adjusted gross margin increased 160 basis points to 45.1 percent compared to the prior year driven predominantly by regional and channel mix, product cost improvements, lower promotional activity, and lower air freight partially offset by changes in foreign currency.
Selling, general & administrative expenses decreased 1 percent to $587 million, or 42.3 percent of revenue.
Restructuring and impairment charges were $48 million.
Operating loss was $10 million. Adjusted operating income was $40 million.
Net income was $4 million or $0.01 earnings per share. Adjusted net income was $42 million or  $0.09 adjusted earnings per share.
Inventory decreased 12 percent to $1.0 billion.
Cash and cash equivalents increased 78 percent to $557 million.




ualogo013117a01.jpg
Full Year 2018 Review

Revenue was up 4 percent to $5.2 billion.
Wholesale revenue increased 3 percent to $3.1 billion and direct-to-consumer revenue was up 4 percent to $1.8 billion, representing 35 percent of total revenue.
North America revenue decreased 2 percent to $3.7 billion and our international business increased 23 percent to $1.3 billion (up 22 percent currency neutral), representing 26 percent of total revenue. Within the international business, revenue was up 25 percent in EMEA (up 23 percent currency neutral), up 29 percent in Asia-Pacific (up 27 percent currency neutral), and up 5 percent in Latin America (up 8 percent currency neutral).
Apparel revenue increased 5 percent to $3.5 billion with growth primarily driven by the train category. Footwear revenue increased 2 percent to $1.1 billion largely driven by growth in the run category. Accessories revenue was down 5 percent to $422 million due to softer demand and continued actions to optimize our inventory and distribution.
Gross margin was 45.1 percent  in line with the prior year including a $21 million impact related to restructuring efforts. Excluding restructuring efforts in both periods, adjusted gross margin increased 30 basis points to 45.5 percent driven predominantly by product cost improvements, lower promotional activity, and changes in foreign currency offset by channel mix.
Selling, general & administrative expenses increased 4 percent to $2.2 billion, or 42.0 percent of revenue.
Restructuring and impairment charges were $183 million.
Operating loss was $25 million. Adjusted operating income was $179 million.
Net loss was $46 million or $0.10 loss per share. Adjusted net income was $122 million or $0.27 adjusted earnings per share.

2018 Restructuring Plan

For the full year the company recognized $204 million of pre-tax charges, inclusive of $50 million in the fourth quarter. Of the $204 million recognized, there were $151 million in cash related charges and $53 million in non-cash related charges. This compares to the previously announced 2018 plan which anticipated approximately $200 to $220 million in restructuring related charges for the full year.

Full Year 2019 Outlook

There are no changes to the company's 2019 outlook, which was provided at its December 12, 2018 investor day:

Revenue is expected to be up approximately 3 to 4 percent reflecting relatively flat results for North America and a low double-digit percentage rate increase in the international business.
Gross margin is expected to increase approximately 60 to 80 basis points compared to 2018 adjusted gross margin due to channel mix benefits from lower planned sales to the off-price channel and a higher percentage of direct-to-consumer sales along with more favorable product costs due to ongoing supply chain initiatives.
Operating income is expected to reach $210 million to $230 million.
 Interest and other expense net is planned at approximately $40 million.
Effective tax rate is expected to be in the 19 percent to 22 percent range.
Earnings per share is expected to be in the range of $0.31 to $0.33; and,


ualogo013117a01.jpg
Capital expenditures are planned at approximately $210 million.

Conference Call and Webcast

Under Armour will hold its fourth quarter 2018 conference call and webcast today at approximately 8:30 a.m. Eastern Time. The call will be webcast live at https://about.underarmour.com/investor-relations/financials and will be archived and available for replay approximately three hours after the live event.

U.S. Tax Act

The U.S. Tax Act was enacted into law on December 22, 2017. The legislation contained several key tax provisions that affect Under Armour and, as required, the company included reasonable estimates of the income tax effects of the changes in tax law and tax rate in the company's 2017 financial results. These changes included a one-time mandatory transition tax on accumulated foreign earnings and a re-measuring of deferred tax assets which impacted our fourth quarter and full year of 2017. During the fourth quarter of 2018, the company revised and finalized its accounting for the one-time mandatory transition tax on accumulated foreign earnings and the re-measuring of deferred tax assets due to the U.S. Tax Act in accordance within the one-year measurement period allowed by the SEC.

Non-GAAP Financial Information

This press release refers to “currency neutral” and “adjusted” results. Currency neutral financial information is calculated to exclude the impact of changes in foreign currency. Management believes this information is useful to investors to facilitate a comparison of the company's results of operations period-over-period. Adjusted gross margin, adjusted operating income, adjusted net income, adjusted diluted earnings per share and adjusted effective tax rate exclude the impact of restructuring and other related charges and the impact of the U.S. Tax Act, as applicable. Management believes this information is useful to investors because it provides enhanced visibility into the company’s actual underlying results excluding the impact of its restructuring plans and recent significant changes in U.S. tax laws. These non-GAAP financial measures should not be considered in isolation and should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. Additionally, the company's non-GAAP financial information may not be comparable to similarly titled measures reported by other companies.

About Under Armour, Inc.

Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer and distributor of branded performance athletic apparel, footwear and accessories. Designed to make all athletes better, the brand's innovative products are sold worldwide to consumers with active lifestyles. The company’s Connected Fitness™ platform powers the world’s largest digitally connected health and fitness community. For further information, please visit https://about.underarmour.com.

Forward Looking Statements

Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, our anticipated charges and restructuring costs and the timing of these measures, the impact of recent tax reform legislation on our results of operations, the development and introduction of new


ualogo013117a01.jpg
products, the implementation of our marketing and branding strategies, and the future benefits and opportunities from significant investments. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “assumes,” “anticipates,” “believes,” “estimates,” “predicts,” “outlook,” “potential” or the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements, including, but not limited to: changes in general economic or market conditions that could affect overall consumer spending or our industry; changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to successfully execute any restructuring plans and realize expected benefits; our ability to effectively drive operational efficiency in our business; our ability to manage the increasingly complex operations of our global business; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer demand for our products and manage our inventory in response to changing demands; any disruptions, delays or deficiencies in the design, implementation or application of our new global operating and financial reporting information technology system; increased competition causing us to lose market share or reduce the prices of our products or to increase significantly our marketing efforts; fluctuations in the costs of our products; loss of key suppliers or manufacturers or failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner, including due to port disruptions; our ability to further expand our business globally and to drive brand awareness and consumer acceptance of our products in other countries; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; our ability to successfully manage or realize expected results from acquisitions and other significant investments or capital expenditures; risks related to foreign currency exchange rate fluctuations; our ability to effectively market and maintain a positive brand image; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; risks related to data security or privacy breaches, including the 2018 data security issue related to our Connected Fitness business; our ability to raise additional capital required to grow our business on terms acceptable to us; our potential exposure to litigation and other proceedings; and our ability to attract key talent and retain the services of our senior management and key employees. The forward-looking statements contained in this press release reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

# # #

Under Armour Contacts:
Lance Allega
Kelley McCormick
VP, Investor Relations & Corporate Development 
SVP, Corporate Communications
(410) 246-6810
(410) 454-6624


ualogo013117a01.jpg
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2018 and 2017
(Unaudited; in thousands, except per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended December 31, Year Ended December 31, 
2018% of Net
Revenues 
2017 % of Net
Revenues 
2018% of Net
Revenues 
2017 % of Net
Revenues 
Net revenues $1,389,980 100.0 %$1,369,216 100.0 %$5,193,185 100.0 %$4,989,244 100.0 %
Cost of goods sold 764,753 55.0 %775,658 56.6 %2,852,714 54.9 %2,737,830 54.9 %
Gross profit 625,227 45.0 %593,558 43.4 %2,340,471 45.1 %2,251,414 45.1 %
Selling, general and administrative expenses 587,446 42.3 %594,694 43.4 %2,182,339 42.0 %2,099,522 42.1 %
Restructuring and impairment charges 48,228 3.5 %35,952 2.6 %183,149 3.5 %124,049 2.5 %
Income (loss) from operations (10,447)(0.8)%(37,088)(2.7)%(25,017)(0.5)%27,843 0.6 %
Interest expense, net (7,302)(0.5)%(9,301)(0.7)%(33,568)(0.6)%(34,538)(0.7)%
Other income (expense), net 272 — %(2,231)(0.2)%(9,203)(0.2)%(3,614)(0.1)%
Loss before income taxes (17,477)(1.3)%(48,620)3.6 %(67,788)(1.3)%(10,309)(0.2)%
Income tax expense (benefit) (21,242)(1.5)%39,300 2.9 %(20,552)(0.4)%37,951 0.8 %
Income from equity method investment 453 — %— — %934 — %— — %
Net income (loss) $4,218 0.3 %$(87,920)(6.4)%$(46,302)(0.9)%$(48,260)(1.0)%
Basic net income (loss) per share of Class A, B and C common stock$0.01 $(0.20)$(0.10)$(0.11)
Diluted net income (loss) per share of Class A, B and C common stock$0.01 (0.20)(0.10)(0.11)
Weighted average common shares outstanding Class A, B and C common stock
Basic 448,438 441,826 445,815 440,729 
Diluted 452,497 441,826 445,815 440,729 


ualogo013117a01.jpg
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2018 and 2017
(Unaudited; in thousands)
NET REVENUES BY PRODUCT CATEGORY
Three Months Ended December 31, Year Ended December 31, 
2018 2017 % Change 2018 2017 % Change 
Apparel $970,392 $951,667 2.0 %$3,462,372 $3,287,121 5.3 %
Footwear 235,174 246,204 (4.5)%1,063,175 1,037,840 2.4 %
Accessories 108,246 110,666 (2.2)%422,496 445,838 (5.2)%
Total net sales
1,313,812 1,308,537 0.4 %4,948,043 4,770,799 3.7 %
Licensing revenues 45,909 32,936 39.4 %124,785 116,575 7.0 %
Connected Fitness 30,259 27,743 9.1 %120,357 101,870 18.1 %
Total net revenues $1,389,980 $1,369,216 1.5 %$5,193,185 $4,989,244 4.1 %
NET REVENUES BY SEGMENT
Three Months Ended December 31, Year Ended December 31, 
2018 2017 % Change 2018 2017 % Change 
North America $964,830 $1,024,242 (5.8)%$3,735,293 $3,802,406 (1.8)%
EMEA 178,153 135,313 31.7 %588,580 469,996 25.2 %
Asia-Pacific 167,513 123,936 35.2 %558,160 433,648 28.7 %
Latin America 49,225 57,982 (15.1)%190,795 181,324 5.2 %
Connected Fitness 30,259 27,743 9.1 %120,357 101,870 18.1 %
Total net revenues $1,389,980 $1,369,216 1.5 %$5,193,185 $4,989,244 4.1 %
INCOME (LOSS) FROM OPERATIONS
Three Months Ended December 31, Year Ended December 31, 
2018 2017 % Change 2018 2017 % Change 
North America $(7,083)$(43,945)83.9 %$(66,305)$20,179 (428.6)%
EMEA (11,145)3,986 (379.6)%(9,379)17,976 (152.2)%
Asia-Pacific 21,379 12,989 64.6 %95,128 82,039 16.0 %
Latin America (11,004)(10,910)(0.9)%(48,470)(37,085)(30.7)%
Connected Fitness (2,594)792 (427.5)%4,009 (55,266)107.3 %
Income (loss) from operations $(10,447)$(37,088)(71.8)%$(25,017)$27,843 (189.9)%


ualogo013117a01.jpg
Under Armour, Inc.
As of December 31, 2018 and December 31, 2017 
(Unaudited; in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2018December 31, 2017
Assets 
Current assets 
Cash and cash equivalents $557,403 $312,483 
Accounts receivable, net 652,546 609,670 
Inventories 1,019,496 1,158,548 
Prepaid expenses and other current assets 364,183 256,978 
Total current assets 2,593,628 2,337,679 
Property and equipment, net 826,868 885,774 
Goodwill 546,494 555,674 
Intangible assets, net 41,793 46,995 
Deferred income taxes 112,420 82,801 
Other long term assets 123,819 97,444 
Total assets $4,245,022 $4,006,367 
Liabilities and Stockholders’ Equity 
Revolving credit facility, current $— $125,000 
Accounts payable 560,884 561,108 
Accrued expenses 340,415 296,841 
Customer refund liability 301,421 — 
Current maturities of long term debt 25,000 27,000 
Other current liabilities 88,257 50,426 
Total current liabilities 1,315,977 1,060,375 
Long term debt, net of current maturities 703,834 765,046 
Other long term liabilities 208,340 162,304 
Total liabilities 2,228,151 1,987,725 
Total stockholders’ equity 2,016,871 2,018,642 
Total liabilities and stockholders’ equity $4,245,022 $4,006,367 












ualogo013117a01.jpg
Under Armour, Inc.
For the Years Ended December 31, 2018 and 2017
(Unaudited; in thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS
  Year Ended December 31, 
  20182017
Cash flows from operating activities 
Net loss $(46,302)$(48,260)
Adjustments to reconcile net loss to net cash provided by operating activities 
Depreciation and amortization $181,768 $173,747 
Unrealized foreign currency exchange rate (gains) losses 14,023 (29,247)
Loss on disposal of property and equipment 4,256 2,313 
Impairment charges 9,893 71,378 
Amortization of bond premium 254 254 
Stock-based compensation 41,783 39,932 
Excess tax benefit (loss) from stock-based compensation arrangements — (75)
Deferred income taxes (38,544)55,910 
Changes in reserves and allowances (234,998)108,757 
Changes in operating assets and liabilities: 
Accounts receivable 186,834 (79,106)
Inventories 109,919 (222,391)
Prepaid expenses and other assets (107,855)(52,106)
Accounts payable 26,413 145,695 
Accrued expenses and other liabilities 134,594 109,823 
Customer refund liability 305,141 — 
Income taxes payable and receivable 41,051 (39,164)
Net cash provided by operating activities 628,230 237,460 
Cash flows from investing activities 
Purchases of property and equipment $(170,385)$(281,339)
Sale of property and equipment 11,285 — 
Purchase of equity method investment (39,207)— 
Purchases of other assets (4,597)(1,648)
Net cash used in investing activities (202,904)(282,987)
Cash flows from financing activities 
Proceeds from long term debt and revolving credit facility $505,000 $763,000 
Payments on long term debt and revolving credit facility (695,000)(665,000)
Employee taxes paid for shares withheld for income taxes (2,743)(2,781)
Proceeds from exercise of stock options and other stock issuances 2,580 11,540 
Payments of debt financing costs (11)— 
Other financing fees 306 — 
Net cash provided by (used in) financing activities (189,868)106,759 
Effect of exchange rate changes on cash, cash equivalents and restricted cash 12,467 4,178 
Net increase in cash, cash equivalents and restricted cash 247,925 65,410 
Cash, cash equivalents and restricted cash 
Beginning of period 318,135 252,725 
End of period $566,060 $318,135 



ualogo013117a01.jpg
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2018 
(Unaudited)

The table below presents the reconciliation of net revenue growth (decline) calculated in accordance with GAAP to currency neutral net revenue which is a non-GAAP measure. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.
CURRENCY NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION
Three Months Ended December 31, 2018 Year Ended December 31, 2018 
Total Net Revenue
Net revenue growth - GAAP 1.5 %4.1 %
Foreign exchange impact 1.0 %(0.3)%
Currency neutral net revenue growth - Non-GAAP 2.5 %3.8 %
North America 
Net revenue decline - GAAP (5.8)%(1.8)%
Foreign exchange impact 0.2 %%
Currency neutral net revenue decline - Non-GAAP (5.6)%(1.8)%
EMEA 
Net revenue growth - GAAP 31.7 %25.2 %
Foreign exchange impact 3.5 %(2.4)%
Currency neutral net revenue growth - Non-GAAP 35.2 %22.8 %
Asia-Pacific 
Net revenue growth - GAAP 35.2 %28.7 %
Foreign exchange impact 3.6 %(1.5)%
Currency neutral net revenue growth - Non-GAAP 38.8 %27.2 %
Latin America 
Net revenue growth (decline) - GAAP (15.1)%5.2 %
Foreign exchange impact 4.3 %3.1 %
Currency neutral net revenue growth (decline) - Non-GAAP (10.8)%8.3 %
Total International 
Net revenue growth - GAAP 24.5 %23.3 %
Foreign exchange impact 3.7 %(1.2)%
Currency neutral net revenue growth - Non-GAAP 28.2 %22.1 %







ualogo013117a01.jpg
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2018 
(Unaudited; in millions)

The tables below present the reconciliation of the Company's consolidated statement of operations presented in accordance with GAAP to certain adjusted non-GAAP financial measures discussed in this press release. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.
ADJUSTED GROSS MARGIN RECONCILIATION
Three months ended December 31, 2018 Year ended
December 31, 2018 
Gross margin 45.0 %45.1 %
Add: Impact of restructuring 0.1 %0.4 %
Adjusted gross margin 45.1 %45.5 %
ADJUSTED OPERATING INCOME (LOSS) RECONCILIATION
Three months ended December 31, 2018 Year ended
December 31, 2018 
Loss from operations $(10)$(25)
Add: Impact of restructuring 50 204 
Adjusted operating income $40 $179 
ADJUSTED NET INCOME RECONCILIATION
Three months ended December 31, 2018 Year ended
December 31, 2018 
Net income $$(46)
Add: Impact US tax reform — 
Add: Impact of restructuring 36 168 
Adjusted net income $42 $122 
ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION
Three months ended December 31, 2018 Year ended
December 31, 2018 
Diluted net income per share $0.01 $(0.10)
Add: Impact US tax reform — — 
Add: Impact of restructuring 0.08 0.37 
Adjusted diluted income per share $0.09 $0.27 






ualogo013117a01.jpg
ADJUSTED EFFECTIVE TAX RATE RECONCILIATION
Three months ended December 31, 2018 Year ended
December 31, 2018 
Effective tax rate 121.5 %30.3 %
Add (less): Impact of US tax reform 10.9 %0.3 %
Less: Impact of restructuring 162.0 %18.7 %
Adjusted effective tax rate (29.6)%11.3 %




























ualogo013117a01.jpg
Under Armour, Inc.
As of December 31, 2018 and 2017
BRAND HOUSE AND FACTORY HOUSE DOOR COUNT
December 31, 
2018 2017 
Factory House
163162
Brand House
16 19 
North America total doors
179 181 
Factory House
7357
Brand House
67 57 
International total doors
140 114 
Factory House
236219
Brand House
83 76 
Total doors
319 295 

Categories

SEC Filings