Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Entity Information [Line Items] | |||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q3 | ||
Trading Symbol | UA | ||
Entity Registrant Name | UNDER ARMOUR, INC. | ||
Entity Central Index Key | 1,336,917 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Class A Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 183,739,248 | ||
Common Stock, Shares, Issued | 183,739,248 | 181,646,468 | 180,115,884 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Class B Convertible Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 34,450,000 | ||
Common Stock, Shares, Issued | 34,450,000 | 34,450,000 | 35,700,000 |
Common Stock, Shares Authorized | 34,450,000 | 34,450,000 | 35,700,000 |
Common Class C [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 219,963,397 | ||
Common Stock, Shares, Issued | 219,963,397 | 216,096,468 | 215,815,884 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Assets | |||
Cash and cash equivalents | $ 179,954 | $ 129,852 | $ 159,398 |
Accounts receivable, net | 713,731 | 433,638 | 551,188 |
Inventories | 970,621 | 783,031 | 867,082 |
Prepaid expenses and other current assets | 162,255 | 152,242 | 134,751 |
Deferred income taxes | 0 | 0 | 60,692 |
Total current assets | 2,026,561 | 1,498,763 | 1,773,111 |
Property and equipment, net | 751,286 | 538,531 | 478,418 |
Goodwill | 576,903 | 585,181 | 591,872 |
Intangible assets, net | 68,248 | 75,686 | 79,692 |
Deferred income taxes | 155,592 | 92,157 | 42,866 |
Other long term assets | 106,747 | 75,652 | 66,404 |
Total assets | 3,685,337 | 2,865,970 | 3,032,363 |
Liabilities and Stockholders' Equity | |||
Line of Credit Facility, Amount Outstanding, Current | 250,000 | 0 | 300,000 |
Accounts payable | 254,222 | 200,460 | 274,285 |
Accrued expenses | 238,284 | 192,935 | 188,266 |
Current maturities of long term debt | 27,000 | 42,000 | 42,124 |
Other current liabilities | 87,744 | 43,415 | 43,929 |
Total current liabilities | 857,250 | 478,810 | 848,604 |
Long term debt, net of current maturities | 796,768 | 624,070 | 559,411 |
Other long term liabilities | 108,165 | 94,868 | 89,094 |
Total liabilities | 1,762,183 | 1,197,748 | 1,497,109 |
Commitments and contingencies (see Note 4) | |||
Stockholders' equity | |||
Additional paid-in capital | 816,390 | 636,558 | 603,051 |
Retained earnings | 1,156,650 | 1,076,533 | 971,117 |
Accumulated other comprehensive income | (50,031) | (45,013) | (39,058) |
Total stockholders' equity | 1,923,154 | 1,668,222 | 1,535,254 |
Total liabilities and stockholders' equity | 3,685,337 | 2,865,970 | 3,032,363 |
Class A Common Stock [Member] | |||
Stockholders' equity | |||
Common Stock | 61 | 61 | 60 |
Class B Convertible Common Stock [Member] | |||
Stockholders' equity | |||
Common Stock | 11 | 11 | 12 |
Common Class C [Member] | |||
Stockholders' equity | |||
Common Stock | $ 73 | $ 72 | $ 72 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Class A Common Stock [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Entity Common Stock, Shares Outstanding | 183,739,248 | ||
Common Stock, Shares, Outstanding | 181,646,468 | 180,115,884 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 183,739,248 | 181,646,468 | 180,115,884 |
Class B Convertible Common Stock [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Entity Common Stock, Shares Outstanding | 34,450,000 | ||
Common Stock, Shares, Outstanding | 34,450,000 | 35,700,000 | |
Common Stock, Shares Authorized | 34,450,000 | 34,450,000 | 35,700,000 |
Common Stock, Shares, Issued | 34,450,000 | 34,450,000 | 35,700,000 |
Common Class C [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Entity Common Stock, Shares Outstanding | 219,963,397 | ||
Common Stock, Shares, Outstanding | 216,096,468 | 215,815,884 | |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 219,963,397 | 216,096,468 | 215,815,884 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net revenues | $ 1,471,573 | $ 1,204,109 | $ 3,520,058 | $ 2,792,627 |
Cost of goods sold | 772,949 | 616,949 | 1,863,151 | 1,448,750 |
Gross profit | 698,624 | 587,160 | 1,656,907 | 1,343,877 |
Selling, general and administrative expenses | 499,314 | 415,763 | 1,403,336 | 1,112,912 |
Income from operations | 199,310 | 171,397 | 253,571 | 230,965 |
Interest Income (Expense), Net | (8,189) | (4,100) | (18,476) | (10,572) |
Other income (expense), net | (772) | (3,239) | (1,025) | (5,038) |
Income before income taxes | 190,349 | 164,058 | 234,070 | 215,355 |
Provision for income taxes | 62,124 | 63,581 | 80,322 | 88,384 |
Net income | 128,225 | 100,477 | 153,748 | 126,971 |
Net Income (Loss) Attributable to Parent after Dividends Paid | $ 128,225 | $ 100,477 | $ 94,748 | $ 126,971 |
Class A Common Stock And Class B Convertible Common Stock [Member] | ||||
Net income available per common share | ||||
Basic | $ 0.29 | $ 0.23 | $ 0.22 | $ 0.29 |
Diluted | $ 0.29 | $ 0.23 | $ 0.21 | $ 0.29 |
Weighted average common shares outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 218,074,000 | 215,743,000 | 217,535,000 | 215,347,000 |
Diluted | 222,115,000 | 221,053,000 | 221,709,000 | 220,708,000 |
Common Class C [Member] | ||||
Dividends | $ 0 | $ 0 | $ 59,000 | $ 0 |
Net income available per common share | ||||
Basic | $ 0.29 | $ 0.23 | $ 0.49 | $ 0.29 |
Diluted | $ 0.29 | $ 0.23 | $ 0.48 | $ 0.29 |
Weighted average common shares outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 219,756,000 | 215,743,000 | 218,147,000 | 215,347,000 |
Diluted | 223,738,000 | 221,053,000 | 222,301,000 | 220,708,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 128,225 | $ 100,477 | $ 153,748 | $ 126,971 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | (6,182) | (11,558) | (1,917) | (23,784) |
Unrealized gain on cash flow hedge, net of tax | 1,411 | (105) | (3,101) | (466) |
Total other comprehensive income | (4,771) | (11,663) | (5,018) | (24,250) |
Comprehensive income | $ 123,454 | $ 88,814 | $ 148,730 | $ 102,721 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 769,000 | $ (506,000) | $ (1,654,000) | $ (698,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 153,748 | $ 126,971 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 105,382 | 72,211 |
Unrealized foreign currency exchange rate (gains) losses | (4,846) | 24,677 |
Loss on disposal of property and equipment | 504 | 434 |
Stock-based compensation | 43,445 | 44,800 |
Deferred Income Taxes and Tax Credits | (61,561) | (15,266) |
Changes in reserves and allowances | 70,565 | 19,577 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (342,342) | (288,687) |
Inventories | (186,472) | (357,874) |
Prepaid expenses and other assets | (19,702) | (52,629) |
Accounts payable | 68,093 | 58,155 |
Accrued expenses and other liabilities | 38,099 | 44,863 |
Income taxes payable and receivable | 40,925 | 9,320 |
Net cash used in operating activities | (94,162) | (313,448) |
Cash flows from investing activities | ||
Purchase of property and equipment | (251,378) | (226,733) |
Payments to Acquire Property, Plant, and Equipment from Related Parties | (70,288) | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (539,460) |
Payments to Acquire Available-for-sale Securities | (24,230) | (80,272) |
Proceeds from Sale of Available-for-sale Securities, Equity | 30,712 | 68,314 |
Payments to Acquire Productive Assets | (858) | (2,670) |
Net cash used in investing activities | (316,042) | (780,821) |
Cash flows from financing activities | ||
Payment on Term Loan | 1,302,537 | 650,000 |
Payments on long term debt | (889,000) | (29,527) |
Excess tax benefits from stock-based compensation arrangements | 44,444 | 40,768 |
Proceeds from exercise of stock options and other stock issuances | 13,022 | 7,527 |
Payments of deferred financing costs | (5,250) | (947) |
Dividends Paid, Cash | (2,927) | 0 |
Payments for (Proceeds from) Previous Acquisition | (2,424) | 0 |
Net cash provided by financing activities | 460,402 | 667,821 |
Effect of exchange rate changes on cash and cash equivalents | (96) | (7,329) |
Net decrease in cash and cash equivalents | 50,102 | (433,777) |
Cash and cash equivalents | ||
Beginning of period | 129,852 | 593,175 |
End of period | 179,954 | 159,398 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 9,374 | 4,800 |
Noncash or Part Noncash Acquisition, Value of Assets Acquired | (56,073) | 0 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired Under Build-to-Suit Leases | $ 0 | $ 5,631 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2016 | |
Description of the Business | Description of the Business Under Armour, Inc. is a developer, marketer and distributor of branded performance apparel, footwear and accessories. These products are sold worldwide and worn by athletes at all levels, from youth to professional on playing fields around the globe, as well as by consumers with active lifestyles. The Under Armour Connected Fitness TM platform powers the world's largest digital health and fitness community. The Company uses this platform to engage its consumers and increase awareness and sales of its products. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include the accounts of Under Armour, Inc. and its wholly owned subsidiaries (the “Company”). Certain information in footnote disclosures normally included in annual financial statements was condensed or omitted for the interim periods presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the United States of America for interim consolidated financial statements. In the opinion of management, all adjustments consisting of normal, recurring adjustments considered necessary for a fair statement of the financial position and results of operations were included. Intercompany balances and transactions were eliminated. The consolidated balance sheet as of December 31, 2015 is derived from the audited financial statements included in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2015 (the “ 2015 Form 10-K”), which should be read in conjunction with these consolidated financial statements. The results for the nine months ended September 30, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016 or any other portions thereof. On March 16, 2016, the Board of Directors approved the issuance of the Company’s new Class C non-voting common stock, referred to as the Class C stock. The Class C stock was issued through a stock dividend on a one-for-one basis to all existing holders of the Company's Class A and Class B common stock. The shares of Class C stock were distributed on April 7, 2016, to stockholders of record of Class A and Class B common stock as of March 28, 2016. Stockholders' equity and all references to share and per share amounts in the accompanying consolidated financial statements have been retroactively adjusted to reflect this one-for-one stock dividend. On June 3, 2016, the Board of Directors approved the payment of a $59.0 million dividend to the holders of the Company's Class C stock in connection with shareholder litigation related to the creation of the Class C stock. The Company's Board of Directors approved the payment of this dividend in the form of additional shares of Class C stock, with cash in lieu of any fractional shares. This dividend was distributed on June 29, 2016, in the form of 1,470,256 shares of Class C stock and $2.9 million in cash. On January 5, 2015, the Company acquired 100% of the outstanding equity of Endomondo ApS (“Endomondo”), a Denmark-based digital connected fitness company. On March 17, 2015, the Company acquired 100% of the outstanding equity of MyFitnessPal, Inc. (“MFP”), a digital nutrition and connected fitness company. Both companies were acquired to expand the Under Armour Connected Fitness community. Concentration of Credit Risk Financial instruments that subject the Company to significant concentration of credit risk consist primarily of accounts receivable. The majority of the Company’s accounts receivable is due from large sporting goods retailers. Credit is extended based on an evaluation of each customer’s financial condition and collateral is not required. The Company's largest customer accounted for 20.2% , 18.7% and 20.7% of accounts receivable as of September 30, 2016 , December 31, 2015 and September 30, 2015 , respectively. The Company's largest customer accounted for 11.0% and 12.5% of net revenues for the nine months ended September 30, 2016 and 2015 , respectively. Allowance for Doubtful Accounts As of September 30, 2016 , December 31, 2015 and September 30, 2015 , the allowance for doubtful accounts was $33.6 million , $5.9 million and $6.3 million , respectively. Shipping and Handling Costs The Company charges certain customers shipping and handling fees. These fees are recorded in net revenues. The Company includes the majority of outbound handling costs as a component of selling, general and administrative expenses. Outbound handling costs include costs associated with preparing goods to ship to customers and certain costs to operate the Company’s distribution facilities. These costs, included within selling, general and administrative expenses, were $25.7 million and $14.3 million for the three months ended September 30, 2016 and 2015 , respectively, and $65.1 million and $40.1 million for the nine months ended September 30, 2016 and 2015 , respectively. The Company includes outbound freight costs associated with shipping goods to customers as a component of cost of goods sold. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014-09, which supersedes the most current revenue recognition requirements. This ASU requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. In 2016, the FASB issued ASUs 2016-08, 2016-10, 2016-11 and 2016-12, which provide supplemental adoption guidance and clarification to ASU 2014-09. These ASUs will be effective for annual and interim periods beginning after December 15, 2017 with early adoption for annual and interim periods beginning after December 15, 2016 permitted and should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. The Company is currently evaluating this pronouncement to determine the impact of its adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, which amends the existing guidance for leases and will require recognition of operating leases with lease terms of more than twelve months and all financing leases on the balance sheet. For these leases, companies will record assets for the rights and liabilities for the obligations that are created by the leases. This ASU will require disclosures that provide qualitative and quantitative information for the lease assets and liabilities recorded in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2018. The Company is currently evaluating this ASU to determine the impact of its adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, which effects all entities that issue share-based payment awards to their employees. The amendments in this ASU cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. This ASU is effective for annual and interim periods beginning after December 15, 2016. This guidance can be applied either prospectively, retrospectively or using a modified retrospective transition method. Early adoption is permitted. The Company has not yet selected a transition date and is currently evaluating this ASU to determine the impact of its adoption on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, which eliminates the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating this ASU to determine the impact of its adoption on its consolidated financial statements. Recently Adopted Accounting Standards In November 2015, the FASB issued an Accounting Standards Update which requires deferred tax liabilities and assets to be classified as non-current in a classified statement of financial position. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Earlier adoption is permitted for all entities as of the beginning of an interim or annual reporting period. This amendment may be applied either prospectively or retrospectively to all periods presented. The Company adopted the provisions of this guidance prospectively in the fourth quarter of 2015, and did not retrospectively adjust the prior periods. Had the Company adopted this guidance retrospectively, $60.7 million would have been reclassified from deferred income taxes-current to deferred income taxes-long term for the nine months ended September 30, 2015 . The adoption of this guidance will simplify the presentation of deferred income taxes and reduce complexity without decreasing the usefulness of information provided to users of financial statements. The adoption of this pronouncement did not have a significant impact on the Company's financial position, results of operations and cash flows. In April 2015, the FASB issued ASU 2015-03, which requires costs incurred to issue debt to be presented in the balance sheet as a direct deduction from the carrying value of the debt. This ASU is effective for annual and interim reporting periods beginning after December 15, 2015, with early adoption permitted. The Company adopted the provisions of this ASU in the first quarter of 2016, and reclassified approximately $2.9 million and $3.1 million from "Other long term assets" to "Long term debt, net of current maturities" as of December 31, 2015 and September 30, 2015 . |
Credit Facility and Long Term D
Credit Facility and Long Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Credit Facility and Long Term Debt | Long Term Debt Credit Facility In January 2016, the Company amended its credit agreement to increase revolving credit facility commitments from $800.0 million to $1.25 billion . This amendment also extended the term of the revolving credit facility and the remaining outstanding term loans under the credit agreement, which as of September 30, 2016 totaled $192.5 million , from May 2019 to January 2021 . As of September 30, 2016 , the Company had $250.0 million outstanding under the revolving credit facility. The borrowings under the revolving credit facility have maturities of less than one year. Up to $50.0 million of the facility may be used for the issuance of letters of credit. There were $1.5 million of letters of credit outstanding as of September 30, 2016 . The credit agreement contains negative covenants that, subject to significant exceptions, limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. The Company is also required to maintain a ratio of consolidated EBITDA, as defined in the credit agreement, to consolidated interest expense of not less than 3.50 to 1.00 and is not permitted to allow the ratio of consolidated total indebtedness to consolidated EBITDA to be greater than 3.25 to 1.00 ("consolidated leverage ratio"). As of September 30, 2016 , the Company was in compliance with these ratios. In addition, the credit agreement contains events of default that are customary for a facility of this nature, and includes a cross default provision whereby an event of default under other material indebtedness, as defined in the credit agreement, will be considered an event of default under the credit agreement. Borrowings under the credit agreement bear interest at a rate per annum equal to, at the Company’s option, either (a) an alternate base rate, or (b) a rate based on the rates applicable for deposits in the interbank market for U.S. Dollars or the applicable currency in which the loans are made (“adjusted LIBOR”), plus in each case an applicable margin. The applicable margin for loans will be adjusted by reference to a grid (the “Pricing Grid”) based on the consolidated leverage ratio and ranges between 1.00% to 1.25% for adjusted LIBOR loans and 0.00% to 0.25% for alternate base rate loans. The weighted average interest rate under the outstanding term loans and revolving credit facility borrowings was 1.62% and 1.58% during the three and nine months ended September 30, 2016 , respectively. The Company pays a commitment fee on the average daily unused amount of the revolving credit facility and certain fees with respect to letters of credit. As of September 30, 2016 , the commitment fee was 15.0 basis points. Since inception, the Company incurred and deferred $3.9 million in financing costs in connection with the credit agreement. 3.250% Senior Notes In June 2016, the Company issued $600.0 million aggregate principal amount of 3.250% senior unsecured notes due June 15, 2026 (the “Notes”). The proceeds were used to pay down amounts outstanding under the revolving credit facility. Interest is payable semi-annually on June 15 and December 15 beginning December 15, 2016. Prior to March 15, 2026 (three months prior to the maturity date of the Notes), the Company may redeem some or all of the Notes at any time or from time to time at a redemption price equal to the greater of 100% of the principal amount of the Notes to be redeemed or a “make-whole” amount applicable to such Notes as described in the indenture governing the Notes, plus accrued and unpaid interest to, but excluding, the redemption date. On or after March 15, 2026 (three months prior to the maturity date of the Notes), the Company may redeem some or all of the Notes at any time or from time to time at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The indenture governing the Notes contains covenants, including limitations that restrict the Company’s ability and the ability of certain of its subsidiaries to create or incur secured indebtedness and enter into sale and leaseback transactions and the Company’s ability to consolidate, merge or transfer all or substantially all of its properties or assets to another person, in each case subject to material exceptions described in the indenture. The Company incurred and deferred $5.3 million in financing costs in connection with the Notes. Other Long Term Debt In December 2012, the Company entered into a $50.0 million recourse loan collateralized by the land, buildings and tenant improvements comprising the Company's corporate headquarters. The loan has a seven year term and maturity date of December 2019 . The loan bears interest at one month LIBOR plus a margin of 1.50% , and allows for prepayment without penalty. The loan includes covenants and events of default substantially consistent with the Company's credit agreement discussed above. The loan also requires prior approval of the lender for certain matters related to the property, including transfers of any interest in the property. As of September 30, 2016 , December 31, 2015 and September 30, 2015 , the outstanding balance on the loan was $42.5 million , $44.0 million and $44.5 million , respectively. The weighted average interest rate on the loan was 2.00% and 1.94% for the three and nine months ended September 30, 2016 , respectively. Interest expense, net was $8.2 million and $4.1 million for the three months ended September 30, 2016 and 2015 , respectively, and $18.5 million and $10.6 million for the nine months ended September 30, 2016 and 2015 , respectively. Interest expense includes the amortization of deferred financing costs, bank fees, capital and built-to-suit lease interest and interest expense under the credit and other long term debt facilities . The Company monitors the financial health and stability of its lenders under the credit and other long term debt facilities, however during any period of significant instability in the credit markets lenders could be negatively impacted in their ability to perform under these facilities. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies | Commitments and Contingencies Other than the borrowings and repayments disclosed in Note 3 and changes which occur in the normal course of business, there were no significant changes to the contractual obligations reported in the 2015 Form 10-K as updated in the Form 10-Q for the quarter ended June 30, 2016. In connection with various contracts and agreements, the Company has agreed to indemnify counterparties against certain third party claims relating to the infringement of intellectual property rights and other items. Generally, such indemnification obligations do not apply in situations in which the counterparties are grossly negligent, engage in willful misconduct, or act in bad faith. Based on the Company’s historical experience and the estimated probability of future loss, the Company has determined that the fair value of such indemnifications is not material to its consolidated financial position or results of operations. From time to time, the Company is involved in litigation and other proceedings, including matters related to commercial and intellectual property disputes, as well as trade, regulatory and other claims related to its business. The Company believes that all current proceedings are routine in nature and incidental to the conduct of its business, and that the ultimate resolution of any such proceedings will not have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The fair value accounting guidance outlines a valuation framework, creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures, and prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Financial assets and (liabilities) measured at fair value are set forth in the table below: September 30, 2016 December 31, 2015 September 30, 2015 (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Available-for-sale securities $ — $ — $ — $ 6,534 $ — $ — $ 11,958 $ — $ — Derivative foreign currency contracts (see Note 7) — 1,577 — — 3,811 — — 1,371 — Interest rate swap contracts (see Note 7) — 3,953 — — (1,486 ) — — (3,391 ) — TOLI policies held by the Rabbi Trust — 4,819 — — 4,456 — — 4,384 — Deferred Compensation Plan obligations — (6,486 ) — — (5,072 ) — — (4,741 ) — Fair values of the financial assets and liabilities listed above are determined using inputs that use as their basis readily observable market data that are actively quoted and are validated through external sources, including third-party pricing services and brokers. The Company purchases marketable securities that are designated as available-for-sale. The foreign currency contracts represent gains and losses on derivative contracts, which is the net difference between the U.S. dollar value to be received or paid at the contracts’ settlement date and the U.S. dollar value of the foreign currency to be sold or purchased at the current market exchange rate. The interest rate swap contracts represent gains and losses on the derivative contracts, which is the net difference between the fixed interest to be paid and variable interest to be received over the term of the contract based on current market rates. The fair value of the trust owned life insurance (“TOLI”) policies held by the Rabbi Trust is based on the cash-surrender value of the life insurance policies, which are invested primarily in mutual funds and a separately managed fixed income fund. These investments are initially made in the same funds and purchased in substantially the same amounts as the selected investments of participants in the Under Armour, Inc. Deferred Compensation Plan (the “Deferred Compensation Plan”), which represent the underlying liabilities to participants in the Deferred Compensation Plan. Liabilities under the Deferred Compensation Plan are recorded at amounts due to participants, based on the fair value of participants’ selected investments. The carrying value of the Company's long term debt approximated its fair value as of September 30, 2016 and 2015 . The fair value of the Company's long term debt was estimated based upon quoted prices for similar instruments (Level 2 input). |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation | Stock-Based Compensation During the nine months ended September 30, 2016 , 2.4 million performance-based restricted stock units and 0.3 million performance-based options were awarded to certain officers and key employees under the Company's Second Amended and Restated 2005 Omnibus Long-Term Incentive Plan, as amended. These performance-based restricted stock units and options have weighted average grant date fair values of $36.16 and $36.18 , respectively, and have vesting conditions tied to the achievement of certain combined annual operating income targets for 2016 and 2017. Upon the achievement of the targets, one third of the restricted stock units and options will vest each in February 2018 , February 2019 and February 2020 . If certain lower levels of combined annual operating income for 2016 and 2017 are achieved, fewer or no restricted stock units or options will vest and the remaining restricted stock units and options will be forfeited. The Company deemed the achievement of certain operating income targets for 2016 and 2017 probable during the nine months ended September 30, 2016 . The Company assesses the probability of the achievement of the remaining operating income targets at the end of each reporting period. If it becomes probable that any remaining performance targets related to these performance-based restricted stock units and options will be achieved, a cumulative adjustment will be recorded as if ratable stock-based compensation expense had been recorded since the grant date. Additional stock based compensation of up to $5.3 million would have been recorded during the nine months ended September 30, 2016 , for these performance-based restricted stock units and options had the achievement of the remaining operating income targets been deemed probable. |
Risk Management and Derivatives
Risk Management and Derivatives | 9 Months Ended |
Sep. 30, 2016 | |
Foreign Currency Risk Management and Derivatives | Risk Management and Derivatives Foreign Currency Risk Management The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to transactions generated by its international subsidiaries in currencies other than their local currencies. These gains and losses are primarily driven by intercompany transactions and inventory purchases denominated in currencies other than the functional currency of the purchasing entity. From time to time, the Company may elect to enter into foreign currency contracts to reduce the risk associated with foreign currency exchange rate fluctuations on intercompany transactions and projected inventory purchases for its international subsidiaries. As of September 30, 2016 , the aggregate notional value of the Company's outstanding foreign currency contracts was $680.4 million , which was comprised of Canadian Dollar/U.S. Dollar, Euro/U.S. Dollar, Yen/Euro, Mexican Peso/Euro and Pound Sterling/Euro currency pairs with contract maturities ranging from one to fourteen months . A portion of the Company's foreign currency contracts are not designated as cash flow hedges, and accordingly, changes in their fair value are recorded in earnings. The Company also enters into foreign currency contracts designated as cash flow hedges. For foreign currency contracts designated as cash flow hedges, changes in fair value, excluding any ineffective portion, are recorded in other comprehensive income until net income is affected by the variability in cash flows of the hedged transaction. The effective portion is generally released to net income after the maturity of the related derivative and is classified in the same manner as the underlying exposure. During the three months ended September 30, 2016 , the Company reclassified $1.0 million from other comprehensive income to cost of goods sold related to foreign currency contracts designated as cash flow hedges. The fair values of the Company's foreign currency contracts were assets of $1.6 million , $3.8 million and $1.4 million as of September 30, 2016 , December 31, 2015 and September 30, 2015 , respectively, and were included in prepaid expenses and other current assets on the consolidated balance sheet. Refer to Note 5 for a discussion of the fair value measurements. Included in other expense, net were the following amounts related to changes in foreign currency exchange rates and derivative foreign currency contracts: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Unrealized foreign currency exchange rate gains (losses) $ 985 $ (5,454 ) $ 4,846 $ (24,677 ) Realized foreign currency exchange rate gains (losses) (2,635 ) (1,858 ) (3,094 ) 6,999 Unrealized derivative gains (losses) 516 (112 ) (401 ) (182 ) Realized derivative gains (losses) 426 3,559 (2,415 ) 12,196 Interest Rate Risk Management In order to maintain liquidity and fund business operations, the Company enters into long term debt arrangements with various lenders which bear a range of fixed and variable rates of interest. The nature and amount of the Company's long-term debt can be expected to vary as a result of future business requirements, market conditions and other factors. The Company may elect to enter into interest rate swap contracts to reduce the impact associated with interest rate fluctuations. The Company utilizes interest rate swap contracts to convert a portion of variable rate debt to fixed rate debt. The contracts pay fixed and receive variable rates of interest. The interest rate swap contracts are accounted for as cash flow hedges and accordingly, the effective portion of the changes in their fair value are recorded in other comprehensive income and reclassified into interest expense over the life of the underlying debt obligation. Refer to Note 3 for a discussion of long term debt. As of September 30, 2016 , the notional value of the Company's outstanding interest rate swap contracts was $ 157.5 million . During the three months ended September 30, 2016 and 2015 , the Company recorded a $0.5 million and $0.7 million increase in interest expense, respectively, representing the effective portion of the contract reclassified from accumulated other comprehensive income. During the nine months ended September 30, 2016 and 2015 , the Company recorded a $1.6 million and $2.1 million increase in interest expense, respectively, representing the effective portion of the contract reclassified from accumulated other comprehensive income. The fair values of the interest rate swap contracts were assets of $4.0 million as of September 30, 2016 , and were included in other long term assets on the consolidated balance sheet. The fair values of the interest rate swap contracts were liabilities of $1.5 million and $3.4 million as of December 31, 2015 and September 30, 2015 , respectively, and were included in other long term liabilities on the consolidated balance sheet. The Company enters into derivative contracts with major financial institutions with investment grade credit ratings and is exposed to credit losses in the event of non-performance by these financial institutions. This credit risk is generally limited to the unrealized gains in the derivative contracts. However, the Company monitors the credit quality of these financial institutions and considers the risk of counterparty default to be minimal. |
Provision for Income Taxes
Provision for Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Provision for Income Taxes | Provision for Income Taxes The effective rates for income taxes were 34.3% and 41.0% for the nine months ended September 30, 2016 and 2015 , respectively. The effective tax rate for the nine months ended September 30, 2016 was lower than the effective tax rate for the nine months ended September 30, 2015 primarily due to increased international profitability and a tax benefit related to our prior period acquisitions. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings per Share | Earnings per Share The following represents a reconciliation from basic earnings per share to diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Numerator Net income $ 128,225 $ 100,477 $ 153,748 $ 126,971 Adjustment payment to Class C capital stockholders — — 59,000 — Net income (loss) available to all stockholders 128,225 100,477 94,748 126,971 Denominator Weighted average common shares outstanding Class A and B 218,074 215,743 217,535 215,347 Effect of dilutive securities Class A and B 4,041 5,310 4,174 5,361 Weighted average common shares and dilutive securities outstanding Class A and B 222,115 221,053 221,709 220,708 Weighted average common shares outstanding Class C 219,756 215,743 218,147 215,347 Effect of dilutive securities Class C 3,982 5,310 4,154 5,361 Weighted average common shares and dilutive securities outstanding Class C 223,738 221,053 222,301 220,708 Basic earnings per share Class A and B $ 0.29 $ 0.23 $ 0.22 $ 0.29 Basic earnings per share Class C $ 0.29 $ 0.23 $ 0.49 $ 0.29 Dilutive earnings per share Class A and B $ 0.29 $ 0.23 $ 0.21 $ 0.29 Dilutive earnings per share Class C $ 0.29 $ 0.23 $ 0.48 $ 0.29 Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Stock options and restricted stock units representing 83.7 thousand and 47.1 thousand shares of Class A common stock outstanding for the three months ended September 30, 2016 and 2015 , respectively, were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. Stock options and restricted stock units representing 1.1 million and 47.1 thousand shares of Class C common stock outstanding for the three months ended September 30, 2016 and 2015 , respectively, were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. Stock options and restricted stock units representing 86.9 thousand and 463.1 thousand shares of Class A common stock outstanding for the nine months ended September 30, 2016 and 2015 , respectively, were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. Stock options and restricted stock units representing 444.3 thousand and 463.1 thousand shares of Class C common stock outstanding for the nine months ended September 30, 2016 and 2015 , respectively, were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. |
Segment Data and Related Inform
Segment Data and Related Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Data and Related Information | Segment Data and Related Information The Company’s operating segments are based on how the Chief Operating Decision Maker (“CODM”) makes decisions about allocating resources and assessing performance. As such, the CODM receives discrete financial information for the Company's principal business by geographic region based on the Company’s strategy to become a global brand. These geographic regions include North America; Latin America; Europe, the Middle East and Africa (“EMEA”); and Asia-Pacific. Each geographic segment operates exclusively in one industry: the development, marketing and distribution of branded performance apparel, footwear and accessories. The CODM also receives discrete financial information for the Company's Connected Fitness business. Intersegment revenue is generated by Connected Fitness which runs advertising campaigns for the Company's e-commerce business in North America. The Company accounts for this intersegment revenue as if the sales were made to third parties making similar purchases. Due to the insignificance of the Latin America, EMEA and Asia-Pacific operating segments, they continue to be combined into International for disclosure purposes. The net revenues and operating income (loss) associated with the Company's segments are summarized in the following tables. Net revenues represent sales to external customers for each segment. In addition to net revenues, operating income (loss) is a primary financial measure used by the Company to evaluate performance of each segment. Corporate service costs are primarily included in North America and have not been allocated to International or Connected Fitness. Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Net revenues North America $ 1,225,188 $ 1,059,440 $ 2,932,915 $ 2,440,728 International 226,204 130,230 525,714 315,467 Connected Fitness 20,181 14,439 62,179 36,432 Intersegment eliminations — — (750 ) — Total net revenues $ 1,471,573 $ 1,204,109 $ 3,520,058 $ 2,792,627 Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Operating income (loss) North America $ 182,840 $ 181,822 $ 251,084 $ 272,543 International 24,984 6,180 34,996 6,126 Connected Fitness (8,514 ) (16,605 ) (32,509 ) (47,704 ) Total operating income 199,310 171,397 253,571 230,965 Interest expense, net (8,189 ) (4,100 ) (18,476 ) (10,572 ) Other expense, net (772 ) (3,239 ) (1,025 ) (5,038 ) Income before income taxes $ 190,349 $ 164,058 $ 234,070 $ 215,355 Net revenues by product category are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Apparel $ 1,021,185 $ 865,514 $ 2,300,596 $ 1,936,221 Footwear 278,891 196,279 785,843 510,864 Accessories 121,832 103,564 302,266 249,755 Total net sales 1,421,908 1,165,357 3,388,705 2,696,840 License revenues 29,484 24,313 69,923 59,355 Connected Fitness 20,181 14,439 62,180 36,432 Intersegment eliminations — — (750 ) — Total net revenues $ 1,471,573 $ 1,204,109 $ 3,520,058 $ 2,792,627 |
Related Party Transactions (Not
Related Party Transactions (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Party Transactions In June 2016, the Company entered into a purchase agreement with Sagamore Development Holdings, LLC, an entity controlled by the Company’s CEO, to purchase parcels of land to be utilized to expand the Company’s corporate headquarters to accommodate its growth needs. The purchase price for these parcels totaled $70.3 million . The Company determined that the purchase price for the land represented the fair market value of the parcels and approximated the cost to the seller to purchase and develop the parcels, including costs related to the termination of a lease encumbering the parcels. In connection with the purchase of these parcels, in September 2016, the parties entered into an agreement pursuant to which the parties will share the burden of any special taxes arising due to infrastructure projects in the surrounding area. The allocation to the Company is based on the expected benefits to the Company’s parcels from these projects. No obligations were owed by either party under this agreement as of September 30, 2016. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that subject the Company to significant concentration of credit risk consist primarily of accounts receivable. The majority of the Company’s accounts receivable is due from large sporting goods retailers. Credit is extended based on an evaluation of each customer’s financial condition and collateral is not required. The Company's largest customer accounted for 20.2% , 18.7% and 20.7% of accounts receivable as of September 30, 2016 , December 31, 2015 and September 30, 2015 , respectively. The Company's largest customer accounted for 11.0% and 12.5% of net revenues for the nine months ended September 30, 2016 and 2015 , respectively. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts As of September 30, 2016 , December 31, 2015 and September 30, 2015 , the allowance for doubtful accounts was $33.6 million , $5.9 million and $6.3 million , respectively. |
Shipping and Handling Costs | Shipping and Handling Costs The Company charges certain customers shipping and handling fees. These fees are recorded in net revenues. The Company includes the majority of outbound handling costs as a component of selling, general and administrative expenses. Outbound handling costs include costs associated with preparing goods to ship to customers and certain costs to operate the Company’s distribution facilities. These costs, included within selling, general and administrative expenses, were $25.7 million and $14.3 million for the three months ended September 30, 2016 and 2015 , respectively, and $65.1 million and $40.1 million for the nine months ended September 30, 2016 and 2015 , respectively. The Company includes outbound freight costs associated with shipping goods to customers as a component of cost of goods sold. |
Management Estimates | Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Financial Assets And (Liabilities) Measured At Fair Value | Financial assets and (liabilities) measured at fair value are set forth in the table below: September 30, 2016 December 31, 2015 September 30, 2015 (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Available-for-sale securities $ — $ — $ — $ 6,534 $ — $ — $ 11,958 $ — $ — Derivative foreign currency contracts (see Note 7) — 1,577 — — 3,811 — — 1,371 — Interest rate swap contracts (see Note 7) — 3,953 — — (1,486 ) — — (3,391 ) — TOLI policies held by the Rabbi Trust — 4,819 — — 4,456 — — 4,384 — Deferred Compensation Plan obligations — (6,486 ) — — (5,072 ) — — (4,741 ) — |
Risk Management and Derivativ21
Risk Management and Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Changes in Foreign Currency Exchange Rates and Derivative Foreign Currency Forward Contracts | Included in other expense, net were the following amounts related to changes in foreign currency exchange rates and derivative foreign currency contracts: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Unrealized foreign currency exchange rate gains (losses) $ 985 $ (5,454 ) $ 4,846 $ (24,677 ) Realized foreign currency exchange rate gains (losses) (2,635 ) (1,858 ) (3,094 ) 6,999 Unrealized derivative gains (losses) 516 (112 ) (401 ) (182 ) Realized derivative gains (losses) 426 3,559 (2,415 ) 12,196 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Reconciliation of Basic Earnings per Share to Diluted Earnings per Share | The following represents a reconciliation from basic earnings per share to diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share amounts) 2016 2015 2016 2015 Numerator Net income $ 128,225 $ 100,477 $ 153,748 $ 126,971 Adjustment payment to Class C capital stockholders — — 59,000 — Net income (loss) available to all stockholders 128,225 100,477 94,748 126,971 Denominator Weighted average common shares outstanding Class A and B 218,074 215,743 217,535 215,347 Effect of dilutive securities Class A and B 4,041 5,310 4,174 5,361 Weighted average common shares and dilutive securities outstanding Class A and B 222,115 221,053 221,709 220,708 Weighted average common shares outstanding Class C 219,756 215,743 218,147 215,347 Effect of dilutive securities Class C 3,982 5,310 4,154 5,361 Weighted average common shares and dilutive securities outstanding Class C 223,738 221,053 222,301 220,708 Basic earnings per share Class A and B $ 0.29 $ 0.23 $ 0.22 $ 0.29 Basic earnings per share Class C $ 0.29 $ 0.23 $ 0.49 $ 0.29 Dilutive earnings per share Class A and B $ 0.29 $ 0.23 $ 0.21 $ 0.29 Dilutive earnings per share Class C $ 0.29 $ 0.23 $ 0.48 $ 0.29 |
Segment Data and Related Info23
Segment Data and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Reconciliation of Revenue from Segments to Consolidated | Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Net revenues North America $ 1,225,188 $ 1,059,440 $ 2,932,915 $ 2,440,728 International 226,204 130,230 525,714 315,467 Connected Fitness 20,181 14,439 62,179 36,432 Intersegment eliminations — — (750 ) — Total net revenues $ 1,471,573 $ 1,204,109 $ 3,520,058 $ 2,792,627 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Operating income (loss) North America $ 182,840 $ 181,822 $ 251,084 $ 272,543 International 24,984 6,180 34,996 6,126 Connected Fitness (8,514 ) (16,605 ) (32,509 ) (47,704 ) Total operating income 199,310 171,397 253,571 230,965 Interest expense, net (8,189 ) (4,100 ) (18,476 ) (10,572 ) Other expense, net (772 ) (3,239 ) (1,025 ) (5,038 ) Income before income taxes $ 190,349 $ 164,058 $ 234,070 $ 215,355 |
Net Revenues by Product Category | Net revenues by product category are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2016 2015 2016 2015 Apparel $ 1,021,185 $ 865,514 $ 2,300,596 $ 1,936,221 Footwear 278,891 196,279 785,843 510,864 Accessories 121,832 103,564 302,266 249,755 Total net sales 1,421,908 1,165,357 3,388,705 2,696,840 License revenues 29,484 24,313 69,923 59,355 Connected Fitness 20,181 14,439 62,180 36,432 Intersegment eliminations — — (750 ) — Total net revenues $ 1,471,573 $ 1,204,109 $ 3,520,058 $ 2,792,627 |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Schedule Of Customers That Accounted For A Large Portion Of Net Revenues And Accounts Receivable) (Detail) - Customer A [Member] | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Net Revenues [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 12.50% | |
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Credit Risk, Percentage | 20.20% | 20.70% | 18.70% |
Summary Of Significant Accoun25
Summary Of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Mar. 17, 2015 | Jan. 05, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Dividends | $ 59,000 | |||||||
Dividends Paid, Cash | $ (2,927) | $ 0 | ||||||
Allowance for doubtful accounts receivable | $ 33,600 | $ 6,300 | 33,600 | 6,300 | $ 5,900 | |||
Shipping and handling costs | 25,700 | 14,300 | 65,100 | 40,100 | ||||
Payments to Acquire Available-for-sale Securities | 24,230 | 80,272 | ||||||
Proceeds from Sale of Available-for-sale Securities, Equity | 30,712 | 68,314 | ||||||
Endomondo [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 100.00% | |||||||
MyFitnessPal [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 100.00% | |||||||
Deferred Income Taxes Current [Member] | Deferred Income Taxes Long Term [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Net Assets had the Company Adopted the Guidance Retrospectively | 60,700 | 60,700 | ||||||
Other Noncurrent Assets [Member] | Long-term Debt [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Prior Period Disclosures, Balance Sheet Reclassification Adjustment | 3,100 | 3,100 | $ 2,900 | |||||
Common Class C [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Dividends | $ 0 | $ 0 | $ 59,000 | $ 0 | ||||
Stock Dividends, Shares | 1,470,256 |
Credit Facility And Long Term26
Credit Facility And Long Term Debt (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2012 | Dec. 31, 2015 | |
Debt Disclosure [Line Items] | |||||||||
Long term debt, net of current maturities | $ 796,768 | $ 559,411 | $ 796,768 | $ 559,411 | $ 624,070 | ||||
Letters of Credit Outstanding, Amount | 1,500 | $ 1,500 | |||||||
Commitment fee as percentage of the committed line amount less outstanding borrowings and letters of credit | 15.00% | ||||||||
Senior Notes | 600,000 | $ 600,000 | |||||||
Line of Credit Facility, Amount Outstanding, Current | 250,000 | 300,000 | 250,000 | 300,000 | 0 | ||||
Repayments of Long-term Debt | 889,000 | 29,527 | |||||||
Interest Income (Expense), Net | $ (8,189) | (4,100) | $ (18,476) | (10,572) | |||||
LIBOR Rate [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Interest rate margin, minimum | 1.00% | 1.00% | |||||||
Interest rate margin, maximum | 1.25% | 1.25% | |||||||
Prime Rate [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Interest rate margin, minimum | 0.00% | 0.00% | |||||||
Interest rate margin, maximum | 0.25% | 0.25% | |||||||
Letter of Credit [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 50,000 | $ 50,000 | |||||||
Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Covenant Terms | 3.25 | ||||||||
EBITDA [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Covenant Terms | 1 | ||||||||
EBITDA [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Covenant Terms | 3.50 | ||||||||
Interest Expense [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Line of Credit Facility, Covenant Terms | 1 | ||||||||
Senior Notes [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 5,300 | $ 5,300 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | |||||||
Debt Instrument, Maturity Date | Jun. 15, 2026 | ||||||||
March 2015 Credit Agreement [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Maturity Date | May 1, 2019 | ||||||||
January 2016 Credit Agreement [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Maturity Date | Jan. 1, 2021 | ||||||||
Term Loan Facility [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Weighted Average Interest Rate | 1.62% | 1.58% | |||||||
Long term debt agreements principal outstanding | $ 192,500 | $ 192,500 | |||||||
Revolving Credit Facility [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Credit facility maximum borrowing capacity | $ 1,250,000 | $ 1,250,000 | 800,000 | ||||||
Weighted Average Interest Rate | 0.00% | 0.00% | |||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 3,900 | $ 3,900 | |||||||
Secured Debt [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Facility Term Period | 7 years | ||||||||
Debt Instrument, Maturity Date | Dec. 1, 2019 | ||||||||
Secured Debt | $ 50,000 | $ 42,500 | $ 44,500 | $ 42,500 | $ 44,500 | $ 50,000 | $ 44,000 | ||
Secured Debt [Member] | LIBOR Rate [Member] | |||||||||
Debt Disclosure [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Assets And (Liabilities) Measured At Fair Value) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | $ 0 | $ 11,958 | $ 0 | $ 11,958 | $ 6,534 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | 0 | 0 | 0 |
TOLI policies held by the Rabbi Trust | 0 | 0 | 0 | 0 | 0 |
Deferred Compensation Plan obligations | 0 | 0 | 0 | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | 0 | 0 | 0 | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 1,577 | 1,371 | 1,577 | 1,371 | 3,811 |
TOLI policies held by the Rabbi Trust | 4,819 | 4,384 | 4,819 | 4,384 | 4,456 |
Deferred Compensation Plan obligations | (6,486) | (4,741) | (6,486) | (4,741) | (5,072) |
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | 0 | 0 | 0 | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | 0 | 0 | 0 |
TOLI policies held by the Rabbi Trust | 0 | 0 | 0 | 0 | 0 |
Deferred Compensation Plan obligations | 0 | 0 | 0 | 0 | 0 |
Interest Rate Swap [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 500 | 700 | 1,600 | 2,100 | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest Rate Derivatives, at Fair Value, Net | 0 | 0 | 0 | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest Rate Derivatives, at Fair Value, Net | 3,953 | (3,391) | 3,953 | (3,391) | (1,486) |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest Rate Derivatives, at Fair Value, Net | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Fair Value, Inputs, Level 1 [Member] | |||
Debt Instrument [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Performance-Based Restricted Stock Units Granted in 2015 [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 2.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 36.16 |
Performance-Based Options Granted in 2015 [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 0.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 36.18 |
Performance-Based Awards Granted in 2016 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional stock-based compensation that would have been recorded if operating income targets had been deemed probable | $ | $ 5.3 |
Stock Vesting In February Two Thousand Eighteen [Domain] | Performance-Based Awards Granted in 2016 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Annual Vesting Percentage | 33.33% |
Stock Vesting In February Two Thousand Nineteen [Domain] | Performance-Based Awards Granted in 2016 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Annual Vesting Percentage | 33.33% |
Stock Vesting In February Two Thousand Twenty [Domain] | Performance-Based Awards Granted in 2016 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Annual Vesting Percentage | 33.33% |
Risk Management And Derivativ30
Risk Management And Derivatives (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||
Maturity of foreign currency forward contract | 14 months | ||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 1,000 | ||||
Notional Amount of Interest Rate Derivatives | 680,400 | $ 680,400 | |||
Derivative, Lower Remaining Maturity Range | 1 month | ||||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | 157,500 | $ 157,500 | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 500 | $ 700 | 1,600 | $ 2,100 | |
Fair Value, Inputs, Level 2 [Member] | |||||
Derivative [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1,577 | 1,371 | 1,577 | 1,371 | $ 3,811 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Interest Rate Derivatives, at Fair Value, Net | $ 3,953 | $ (3,391) | $ 3,953 | $ (3,391) | $ (1,486) |
Risk Management And Derivativ31
Risk Management And Derivatives (Changes In Foreign Currency Exchange Rates And Derivative Foreign Currency Forward Contracts) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Foreign Currency Exchange Gain Loss [Line Items] | |||||
Maturity of foreign currency forward contract | 14 months | ||||
Unrealized foreign currency exchange rate gains (losses) | $ 985 | $ (5,454) | $ 4,846 | $ (24,677) | |
Realized foreign currency exchange rate gains (losses) | (2,635) | (1,858) | (3,094) | 6,999 | |
Unrealized derivative gains (losses) | 516 | (112) | (401) | (182) | |
Realized derivative gains (losses) | 426 | 3,559 | (2,415) | 12,196 | |
Fair Value, Inputs, Level 2 [Member] | |||||
Foreign Currency Exchange Gain Loss [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 1,577 | $ 1,371 | $ 1,577 | $ 1,371 | $ 3,811 |
Provision For Income Taxes (Det
Provision For Income Taxes (Detail) | 9 Months Ended | |
Sep. 30, 2016Rate | Sep. 30, 2015Rate | |
Provision For Income Taxes [Line Items] | ||
Effective tax rate | 34.30% | 41.00% |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Reconciliation Of Basic Earnings Per Share To Diluted Earnings Per Share) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income | $ 128,225 | $ 100,477 | $ 153,748 | $ 126,971 | |
Dividends | $ 59,000 | ||||
Net Income (Loss) Attributable to Parent after Dividends Paid | 128,225 | 100,477 | 94,748 | 126,971 | |
Common Class C [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Dividends | $ 0 | $ 0 | $ 59,000 | $ 0 | |
Weighted Average Number of Shares Outstanding, Basic | 219,756,000 | 215,743,000 | 218,147,000 | 215,347,000 | |
Effect of dilutive securities | 3,982,000 | 5,310,000 | 4,154,000 | 5,361,000 | |
Weighted Average Number of Shares Outstanding, Diluted | 223,738,000 | 221,053,000 | 222,301,000 | 220,708,000 | |
Earnings per share - basic | $ 0.29 | $ 0.23 | $ 0.49 | $ 0.29 | |
Earnings per share - diluted | $ 0.29 | $ 0.23 | $ 0.48 | $ 0.29 | |
Class A Common Stock And Class B Convertible Common Stock [Member] | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Weighted Average Number of Shares Outstanding, Basic | 218,074,000 | 215,743,000 | 217,535,000 | 215,347,000 | |
Effect of dilutive securities | 4,041,000 | 5,310,000 | 4,174,000 | 5,361,000 | |
Weighted Average Number of Shares Outstanding, Diluted | 222,115,000 | 221,053,000 | 221,709,000 | 220,708,000 | |
Earnings per share - basic | $ 0.29 | $ 0.23 | $ 0.22 | $ 0.29 | |
Earnings per share - diluted | $ 0.29 | $ 0.23 | $ 0.21 | $ 0.29 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Class A Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from the computation of diluted earnings per share | 83,700 | 47,100 | 86,900 | 463,100 |
Common Class C [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from the computation of diluted earnings per share | 1,100,000 | 47,100 | 444,300 | 463,100 |
Segment Data And Related Info35
Segment Data And Related Information (Geographic Distribution Of The Company's Net Revenues And Operating Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,471,573 | $ 1,204,109 | $ 3,520,058 | $ 2,792,627 |
Total operating income | 199,310 | 171,397 | 253,571 | 230,965 |
Interest Income (Expense), Net | (8,189) | (4,100) | (18,476) | (10,572) |
Other income (expense), net | (772) | (3,239) | (1,025) | (5,038) |
Income before income taxes | 190,349 | 164,058 | 234,070 | 215,355 |
North America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,225,188 | 1,059,440 | 2,932,915 | 2,440,728 |
Total operating income | 182,840 | 181,822 | 251,084 | 272,543 |
Other Foreign Countries [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 226,204 | 130,230 | 525,714 | 315,467 |
Total operating income | 24,984 | 6,180 | 34,996 | 6,126 |
Connected Fitness [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 20,181 | 14,439 | 62,179 | 36,432 |
Total operating income | (8,514) | (16,605) | (32,509) | (47,704) |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 0 | $ 0 | $ (750) | $ 0 |
Segment Data And Related Info36
Segment Data And Related Information (Net Revenues By Product Category) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 1,421,908 | $ 1,165,357 | $ 3,388,705 | $ 2,696,840 |
License revenues | 29,484 | 24,313 | 69,923 | 59,355 |
Net revenues | 1,471,573 | 1,204,109 | 3,520,058 | 2,792,627 |
Apparel [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 1,021,185 | 865,514 | 2,300,596 | 1,936,221 |
Footwear [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 278,891 | 196,279 | 785,843 | 510,864 |
Accessories [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 121,832 | 103,564 | 302,266 | 249,755 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 0 | 0 | (750) | 0 |
Net revenues | 0 | 0 | (750) | 0 |
Connected Fitness [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 20,181 | 14,439 | 62,180 | 36,432 |
Net revenues | $ 20,181 | $ 14,439 | $ 62,179 | $ 36,432 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Related Party Transactions [Abstract] | |
Related Party Transaction, Purchases from Related Party | $ 70.3 |