Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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 | 185,130,747 | |
Class B Convertible Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,450,000 | |
Common Class C [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 222,117,109 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets | |||
Cash and cash equivalents | $ 258,002 | $ 250,470 | $ 179,954 |
Accounts receivable, net | 733,292 | 622,685 | 713,731 |
Inventories | 1,180,653 | 917,491 | 970,621 |
Prepaid expenses and other current assets | 284,895 | 174,507 | 162,255 |
Total current assets | 2,456,842 | 1,965,153 | 2,026,561 |
Property and equipment, net | 868,250 | 804,211 | 751,286 |
Goodwill | 559,318 | 563,591 | 576,903 |
Intangible assets, net | 48,646 | 64,310 | 68,248 |
Deferred income taxes | 97,147 | 136,862 | 155,592 |
Other long term assets | 100,162 | 110,204 | 106,747 |
Total assets | 4,130,365 | 3,644,331 | 3,685,337 |
Liabilities and Stockholders' Equity | |||
Line of Credit Facility, Amount Outstanding, Current | 270,000 | 0 | 250,000 |
Accounts payable | 482,897 | 409,679 | 254,222 |
Accrued expenses | 266,074 | 208,750 | 238,284 |
Current maturities of long term debt | 27,000 | 27,000 | 27,000 |
Other current liabilities | 54,455 | 40,387 | 87,744 |
Total current liabilities | 1,100,426 | 685,816 | 857,250 |
Long term debt, net of current maturities | 771,382 | 790,388 | 796,768 |
Other long term liabilities | 157,861 | 137,227 | 108,165 |
Total liabilities | 2,029,669 | 1,613,431 | 1,762,183 |
Stockholders' equity | |||
Additional paid-in capital | 864,920 | 823,484 | 816,390 |
Retained earnings | 1,272,556 | 1,259,414 | 1,156,650 |
Accumulated other comprehensive income | (36,926) | (52,143) | (50,031) |
Total stockholders' equity | 2,100,696 | 2,030,900 | 1,923,154 |
Total liabilities and stockholders' equity | 4,130,365 | 3,644,331 | 3,685,337 |
Class A Common Stock [Member] | |||
Stockholders' equity | |||
Common Stock | 61 | 61 | 61 |
Class B Convertible Common Stock [Member] | |||
Stockholders' equity | |||
Common Stock | 11 | 11 | 11 |
Common Class C [Member] | |||
Stockholders' equity | |||
Common Stock | $ 74 | $ 73 | $ 73 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Class A Common Stock [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Common Stock, Shares, Outstanding | 185,128,757 | 183,814,911 | 183,739,248 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 185,128,757 | 183,814,911 | 183,739,248 |
Class B Convertible Common Stock [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Common Stock, Shares, Outstanding | 34,450,000 | 34,450,000 | 34,450,000 |
Common Stock, Shares Authorized | 34,450,000 | 34,450,000 | 34,450,000 |
Common Stock, Shares, Issued | 34,450,000 | 34,450,000 | 34,450,000 |
Common Class C [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Common Stock, Shares, Outstanding | 222,050,824 | 220,174,048 | 219,963,397 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 222,050,824 | 220,174,048 | 219,963,397 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue, Net | $ 1,405,615 | $ 1,471,573 | $ 3,611,192 | $ 3,520,058 |
Cost of goods sold | 760,265 | 772,949 | 1,962,172 | 1,863,151 |
Gross profit | 645,350 | 698,624 | 1,649,020 | 1,656,907 |
Selling, general and administrative expenses | 498,172 | 499,314 | 1,495,992 | 1,403,336 |
Restructuring Charges | 84,998 | 0 | 88,097 | 0 |
Income from operations | 62,180 | 199,310 | 64,931 | 253,571 |
Interest Income (Expense), Net | (9,575) | (8,189) | (25,237) | (18,476) |
Other income (expense), net | (1,069) | (772) | (1,383) | (1,025) |
Income before income taxes | 51,536 | 190,349 | 38,311 | 234,070 |
Provision for income taxes | (2,706) | 62,124 | (1,349) | 80,322 |
Net income | 54,242 | 128,225 | 39,660 | 153,748 |
Net Income (Loss) Attributable to Parent after Dividends Paid | 54,242 | 128,225 | 39,660 | 94,748 |
Dividends | 59,000 | |||
Other comprehensive income (loss): | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 13,782 | (6,182) | 28,966 | (1,917) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (6,215) | 1,411 | (18,006) | (3,101) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2,539 | 0 | 4,257 | 0 |
Total other comprehensive income (loss) | 10,106 | (4,771) | 15,217 | (5,018) |
Comprehensive income | 64,348 | 123,454 | 54,877 | 148,730 |
Common Class C [Member] | ||||
Dividends | $ 0 | $ 0 | $ 0 | $ 59,000 |
Net income available per common share | ||||
Basic | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.49 |
Diluted | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.48 |
Weighted average common shares outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 221,784,000 | 219,756,000 | 221,235,000 | 218,147,000 |
Diluted | 225,591,000 | 223,738,000 | 225,390,000 | 222,301,000 |
Class A Common Stock And Class B Convertible Common Stock [Member] | ||||
Net income available per common share | ||||
Basic | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.22 |
Diluted | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.21 |
Weighted average common shares outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 219,491,000 | 218,074,000 | 219,125,000 | 217,535,000 |
Diluted | 222,848,000 | 222,115,000 | 222,871,000 | 221,709,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 54,242 | $ 128,225 | $ 39,660 | $ 153,748 |
Other comprehensive income: | ||||
Foreign currency translation adjustment | 13,782 | (6,182) | 28,966 | (1,917) |
Unrealized gain on cash flow hedge, net of tax | (6,215) | 1,411 | (18,006) | (3,101) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2,539 | 0 | 4,257 | 0 |
Total other comprehensive income | 10,106 | (4,771) | 15,217 | (5,018) |
Comprehensive income | $ 64,348 | $ 123,454 | $ 54,877 | $ 148,730 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (1,759,000) | $ 769,000 | $ (6,300) | $ (1,700) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 39,660 | $ 153,748 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 128,488 | 105,382 |
Unrealized foreign currency exchange rate (gains) losses | (30,429) | (4,846) |
Loss on disposal of property and equipment | 1,518 | 504 |
Goodwill and Intangible Asset Impairment | 55,116 | |
Restructuring Costs and Asset Impairment Charges | 88,097 | 0 |
Amortization of Debt Discount (Premium) | 190 | 0 |
Stock-based compensation | 34,409 | 43,445 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | 356 | 44,444 |
Deferred Income Taxes and Tax Credits | 42,705 | (61,561) |
Changes in reserves and allowances | 43,793 | 70,565 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (138,267) | (342,342) |
Inventories | (243,696) | (186,472) |
Prepaid expenses and other assets | (26,215) | (19,702) |
Increase (Decrease) in Other Noncurrent Assets | (12,554) | 0 |
Accounts payable | 86,481 | 68,093 |
Accrued expenses and other liabilities | 75,526 | 51,784 |
Income taxes payable and receivable | (86,274) | 40,925 |
Net cash used in operating activities | (29,193) | (36,033) |
Cash flows from investing activities | ||
Purchase of property and equipment | (225,924) | (251,378) |
Payments to Acquire Property, Plant, and Equipment from Related Parties | 0 | 70,288 |
Payments to Acquire Available-for-sale Securities | 0 | (24,230) |
Proceeds from Sale of Available-for-sale Securities, Equity | 0 | 30,712 |
Payments to Acquire Productive Assets | 1,648 | 858 |
Net cash used in investing activities | (227,572) | (316,042) |
Cash flows from financing activities | ||
Payment on Term Loan | 665,000 | 1,302,537 |
Payments on long term debt | (415,250) | (889,000) |
Excess tax benefits from stock-based compensation arrangements | (2,586) | (13,685) |
Proceeds from exercise of stock options and other stock issuances | 9,717 | 13,022 |
Payments of deferred financing costs | 0 | (5,250) |
Payments for Previous Acquisition | 0 | 2,424 |
Dividends Paid, Cash | 0 | (2,927) |
Net cash provided by financing activities | 256,881 | 402,273 |
Effect of exchange rate changes on cash and cash equivalents | 7,416 | (96) |
Net decrease in cash and cash equivalents | 7,532 | 50,102 |
Cash and cash equivalents | ||
Beginning of period | 250,470 | 129,852 |
End of period | 258,002 | 179,954 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | (31,886) | (9,374) |
Non-cash Dividends Paid | $ 0 | $ (56,073) |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 | |
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, 2016 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, 2016 (the “ 2016 Form 10-K”), which should be read in conjunction with these consolidated financial statements. The results for the three and nine months ended September 30, 2017, are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or any other portions thereof. 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. 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 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 13.1% , 16.0% and 20.2% of accounts receivable as of September 30, 2017 , December 31, 2016 and September 30, 2016 , respectively. For the nine months ended September 30, 2017 , no customer accounted for more than 10% of the Company's net revenues. For the nine months ended September 30, 2016 , the Company's largest customer accounted for 11.0% of net revenues. Allowance for Doubtful Accounts As of September 30, 2017 , December 31, 2016 and September 30, 2016 , the allowance for doubtful accounts w as $13.1 million , $11.3 million and $33.6 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 $25.5 million and $25.7 million for the three months ended September 30, 2017 and 2016 , respectively, and $74.5 million and $65.1 million , for the nine months ended September 30, 2017 and 2016 , 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. During the three months ending September 30, 2017, as a change in estimate, the Company reversed $12.3 million of incentive compensation accruals relating to the first two quarters of 2017. 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. This ASU 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. The Company’s initial assessment of the guidance in this ASU has identified wholesale customer support costs, direct to consumer incentive programs and customer related returns as transactions potentially affected by this guidance. While the Company has not completed its evaluation, it expects the impact of the adoption of this ASU would primarily change presentation within our consolidated financial statements but is currently not expected to have a material effect on income from operations. The Company will adopt the guidance in this new ASU effective January 1, 2018, and plans to use the modified retrospective transition approach, which would result in an adjustment to retained earnings for the cumulative effect, if any, of applying this guidance to contracts in effect as of the adoption date. Under this approach, we would not restate the prior financial statements presented. The guidance in this ASU requires us to provide additional disclosures of the amount by which each financial statement line item is affected in the current reporting period during 2018 as compared to the guidance that was in effect before the change, and an explanation of the reasons for significant changes, if any. 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. The Company currently anticipates adopting the new standard effective January 1, 2019. The Company has formed a committee and initiated the review process for adoption of this ASU. While the Company is still in the process of completing its analysis on the complete impact this ASU will have on its consolidated financial statements and related disclosures, it expects the ASU to have a material impact on its consolidated balance sheet for recognition of lease-related assets and liabilities. In August 2017, the FASB issued ASU 2017-12, which simplifies the application of hedge accounting and more closely aligns hedge accounting with companies' risk management strategies, thereby making more hedging strategies eligible for hedge accounting. This ASU will be effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact this ASU will have on its financial statements and related disclosures. Recently Adopted Accounting Standards In March 2016, the FASB issued ASU 2016-09, which affects 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 and the classification of those taxes paid on the statement of cash flows. The Company adopted the provisions of this ASU on January 1, 2017 on a prospective basis and recorded an excess tax deficiency of $1.3 million as an increase in income tax expense related to share-based compensation for vested awards. Additionally, the Company made a policy election under the provisions of this ASU to account for forfeitures when they occur rather than estimating the number of awards that are expected to vest. As a result of this election, the Company recorded a $1.9 million cumulative-effect benefit to retained earnings as of the date of adoption. The Company adopted the provisions of this ASU related to changes on the Consolidated Statement of Cash Flows on a retrospective basis. Excess tax benefits and deficiencies have been classified within cash flows from operating activities and employee taxes paid for shares withheld for income taxes have been classified within cash flows from financing activities on the Consolidated Statement of Cash Flows. This resulted in an increase of $44.4 million to the cash flows from operating activities section and a decrease of $13.7 million to the cash flows from financing activities section of the Consolidated Statement of Cash Flows for the nine months ended September 30, 2016. In October 2016, the FASB issued ASU 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted the provisions of this ASU on a modified retrospective basis on January 1, 2017, resulting in a cumulative-effect benefit to retained earnings of $26.0 million as of the date of adoption. In January 2017, the FASB issued ASU 2017-04, which simplifies how an entity is required to test goodwill for impairment by eliminating step two of the test. The Company adopted the provisions of this ASU on July 1, 2017, and recorded an impairment charge of $28.6 million during its interim goodwill impairment test for the Connected Fitness reporting unit. |
Credit Facility and Long Term D
Credit Facility and Long Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Credit Facility and Long Term Debt | Long Term Debt Credit Facility The Company is party to a credit agreement that provides revolving credit commitments for up to $1.25 billion of borrowings, as well as term loan commitments, in each case maturing in January 2021 . As of September 30, 2017 , there was $270.0 million outstanding under the revolving credit facility and $167.5 million of term loan borrowings outstanding. At the Company's request and the lender's consent, revolving and or term loan borrowings may be increased by up to $300.0 million in aggregate, subject to certain conditions as set forth in the credit agreement, as amended. Incremental borrowings are uncommitted and the availability thereof will depend on market conditions at the time the Company seeks to incur such borrowings. 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 $4.6 million of letters of credit outstanding as of September 30, 2017 . 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"). The method of calculating these ratios is set forth in the Company's credit agreement and differs from how rating agencies or other companies may calculate similar measures. As of September 30, 2017 , 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 rates under the outstanding term loans and revolving credit facility borrowings were 2.4% and 2.2% during the three and nine months ended September 30, 2017 , 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, 2017 , 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 has 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, 2017 , December 31, 2016 and September 30, 2016 , the outstanding balance on the loan was $40.5 million , $42.0 million and $42.5 million , respectively. The weighted average interest rate on the loan was 2.7% and 2.5% for the three and nine months ended September 30, 2017 , respectively. Interest expense, net was $9.6 million and $8.2 million for the three months ended September 30, 2017 and 2016 , respectively, and $25.2 million and $18.5 million for the nine months ended September 30, 2017 , and 2016 , 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 monitor s 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, 2017 | |
Commitments and Contingencies | Commitments and Contingencies There were no significant changes to the contractual obligations reported in the 2016 Form 10-K other than those which occur in the normal course of business. 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. Other than as described below, 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. On March 23, 2017, three separate securities cases previously filed against the Company in the United States District Court for the District of Maryland were consolidated under the caption In re Under Armour Securities Litigation , Case No. 17-cv-00388-RDB (the “Consolidated Action”). On August 4, 2017, the lead plaintiff in the Consolidated Action, North East Scotland Pension Fund (“NESFP”), filed a consolidated amended complaint (the “Amended Complaint”) against the Company, the Company’s Chief Executive Officer and former Chief Financial Officers, Lawrence Molloy and Brad Dickerson. The Amended Complaint alleges violations of Section 10(b) (and Rule 10b-5) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 20(a) control person liability under the Exchange Act against the officers named in the Amended Complaint, claiming that the defendants made material misstatements and omissions regarding, among other things, the Company's growth and consumer demand for certain of the Company's products. The class period identified in the Amended Complaint is September 16, 2015 through January 30, 2017. A new plaintiff, Bucks County Employees Retirement Fund (“Bucks County”), joined NESFP in filing the Amended Complaint. In addition to joining the claims noted above, Bucks County also asserts claims under Sections 11 and 15 of the Securities Act of 1933, as amended (the “Securities Act”), in connection with the Company’s public offering of senior unsecured notes in June 2016. The Securities Act claims are asserted against the Company, the Company’s Chief Executive Officer, Mr. Molloy, the Company’s directors who signed the registration statement pursuant to which the offering was made and the underwriters that participated in the offering. Bucks County alleges that the offering materials utilized in connection with the offering contained false and/or misleading statements and omissions regarding, among other things, the Company’s growth and consumer demand for certain of the Company’s products. The Company believes that the claims asserted in the Consolidated Action are without merit and intends to defend the lawsuit vigorously. However, because of the inherent uncertainty as to the outcome of this proceeding, the Company is unable at this time to estimate the possible impact of the outcome of this matter. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 December 31, 2016 September 30, 2016 (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative foreign currency contracts (see Note 8) (7,754 ) — 15,238 — — 1,577 — Interest rate swap contracts (see Note 8) — 156 — — (420 ) — — 3,953 — TOLI policies held by the Rabbi Trust — 5,539 — — 4,880 — — 4,819 — Deferred Compensation Plan obligations — (9,301 ) — — (7,023 ) — — (6,486 ) — 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 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. As of September 30, 2017 , the fair value of the Company's Senior Notes was $557.3 million , and as of September 30, 2016, the carrying value approximated the fair value. The carrying value of the Company's other long term debt approximated its fair value as of September 30, 2017 and 2016 . The fair value of long-term debt is estimated based upon quoted prices for similar instruments or quoted prices for identical instruments in inactive markets (Level 2). Some assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets and goodwill that has been reduced to fair value when impaired (see Note 3 ). Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Stock-Based Compensation | Based Equity Compensation The Company grants a combination of time-based and performance-based restricted stock units and stock options as part of its incentive compensation. Certain senior executives are eligible to receive performance-based awards. During the nine months ended September 30, 2017 , 1.8 million performance-based restricted stock units and 0.5 million performance-based stock options for shares of our Class C common stock were awarded under the Company's Second Amended and Restated 2005 Omnibus Long-Term Incentive Plan, as amended. The performance-based restricted stock units and options have weighted average grant date fair values of $19.05 and $8.17 , respectively, and have vesting conditions tied to the achievement of certain combined revenue and operating income targets for 2017 and 2018. Upon the achievement of the targets, one half of the restricted stock units and options will vest each in February 2019 and February 2020 . If certain lower levels of combined annual revenue and operating income for 2017 and 2018 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 revenue and operating income targets for 2017 and 2018 probable during the nine months ended September 30, 2017 . The Company assesses the probability of the achievement of the remaining revenue and 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 $4.2 million would have been recorded during the nine months ended September 30, 2017 , for these performance-based restricted stock units and options had the achievement of the remaining revenue and operating income targets been deemed probable. During 2016, the Company granted performance-based restricted stock units and options with vesting conditions tied to the achievement of certain combined annual operating income targets for 2016 and 2017. As of September 30, 2017 , the Company deems the achievement of these operating income targets improbable. As such, no expense for these awards has been recorded during the three and nine months ended September 30, 2017. |
Risk Management and Derivatives
Risk Management and Derivatives | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 , the aggregate notional value of the Company's outstanding foreign currency contracts was $338.6 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 and nine months ended September 30, 2017 , the Company reclassified $0.1 million and $1.8 million from other comprehensive income to cost of goods sold related to foreign currency contracts designated as cash flow hedges, respectively. The fair values of the Company's foreign currency contracts were a liability of $7.8 million as of September 30, 2017 , and were included in accrued expenses on the consolidated balance sheet. The fair values of the Company's foreign currency contracts were assets of $15.2 million and $1.6 million as of December 31, 2016 and September 30, 2016 , respectively, and were included in prepaid expenses and other current assets on the consolidated balance sheet. Refer to Note 6 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) 2017 2016 2017 2016 Unrealized foreign currency exchange rate gains (losses) $ 1,035 $ 985 $ 30,429 $ 4,846 Realized foreign currency exchange rate gains (losses) 3,221 (2,635 ) 865 (3,094 ) Unrealized derivative gains (losses) 388 516 (838 ) (401 ) Realized derivative gains (losses) (4,182 ) 426 (26,972 ) (2,415 ) 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. 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 4 for a discussion of long term debt. As of September 30, 2017 , the notional value of the Company's outstanding interest rate swap contracts was $140.0 million . During the three months ended September 30, 2017 and 2016 , the Company recorded a $0.2 million and $0.5 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, 2017 and 2016 , the Company recorded a $0.8 million and $1.6 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 $0.2 million and $4.0 million as of September 30, 2017 and 2016 , respectively, and were included in other long term assets on the consolidated balance sheet. The fair value of the interest rate swap contracts was a liability of $0.4 million as of December 31, 2016, and was 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, 2017 | |
Provision for Income Taxes | Provision for Income Taxes Provision for income taxes decreased $81.6 million to a benefit of $1.3 million during the nine months ended September 30, 2017 from $80.3 million during the same period in 2016 . For the nine months ended September 30, 2017 , the Company's effective tax rate was ( 3.5% ) compared to 34.3% for the same period in 2016 . The effective tax rate for the nine months ended September 30, 2017 was lower than the effective tax rate for the nine months ended September 30, 2016 primarily due to challenged results in North America creating a higher proportion of international profits in 2017, partially offset by non-deductible goodwill impairment charges and the recording of certain valuation allowances. Valuation allowances of $13.2 million were recorded discretely against deferred tax assets as of December 31, 2016 for certain U.S. state jurisdictions. Additionally, valuation allowances were recorded against current year deferred tax assets in certain U.S. state jurisdictions. These valuation allowances were recorded due to lower than expected results in the third quarter of 2017 and a significantly reduced outlook for the remainder of the year. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions which are regularly subject to examination by tax authorities. Based on the status of current examinations in various taxing jurisdictions, management believes it is reasonably possible that in the next 12 months the amount of the total liability for unrecognized income tax benefits and interest could decrease by up to $16 million . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2017 | |
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) 2017 2016 2017 2016 Numerator Net income $ 54,242 $ 128,225 $ 39,660 $ 153,748 Adjustment payment to Class C capital stockholders — — — 59,000 Net income available to all stockholders $ 54,242 $ 128,225 $ 39,660 $ 94,748 Denominator Weighted average common shares outstanding Class A and B 219,491 218,074 219,125 217,535 Effect of dilutive securities Class A and B 3,357 4,041 3,746 4,174 Weighted average common shares and dilutive securities outstanding Class A and B 222,848 222,115 222,871 221,709 Weighted average common shares outstanding Class C 221,784 219,756 221,235 218,147 Effect of dilutive securities Class C 3,807 3,982 4,155 4,154 Weighted average common shares and dilutive securities outstanding Class C 225,591 223,738 225,390 222,301 Basic net income per share of Class A and B common stock $ 0.12 $ 0.29 $ 0.09 $ 0.22 Basic net income per share of Class C common stock $ 0.12 $ 0.29 $ 0.09 $ 0.49 Diluted net income per share of Class A and B common stock $ 0.12 $ 0.29 $ 0.09 $ 0.21 Diluted net income per share of Class C common stock $ 0.12 $ 0.29 $ 0.09 $ 0.48 Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Stock options and restricted stock units representing 233.8 thousand and 83.7 thousand shares of Class A common stock outstanding for the three months ended September 30, 2017 and 2016, 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 4.0 million and 1.1 million shares of Class C common stock outstanding for the three months ended September 30, 2017 and 2016, 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 272.3 thousand and 86.9 thousand shares of Class A common stock outstanding for the nine months ended September 30, 2017 and 2016, 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 4.1 million and 0.4 million shares of Class C common stock outstanding for the nine months ended September 30, 2017 and 2016, 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, 2017 | |
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. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM. 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. Intercompany balances were eliminated for separate disclosure. The majority of corporate service costs within North America have not been allocated to the Company's other segments. As the Company continues to grow its business outside of North America, a larger portion of its corporate overhead costs have begun to support global functions. Due to the individual materiality of our Asia-Pacific segment, the Company has separately presented its Asia-Pacific, EMEA and Latin America segments, and will no longer combine these segments for presentation purposes. Net revenues and operating income by segment presented for prior periods have been conformed to the current presentation. Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Net revenues North America $ 1,077,088 $ 1,225,188 $ 2,778,165 $ 2,932,915 EMEA 127,932 105,099 334,683 237,559 Asia-Pacific 130,320 85,810 309,712 188,985 Latin America 46,887 35,295 123,342 99,170 Connected Fitness 23,388 20,181 65,290 62,179 Intersegment eliminations — — — (750 ) Total net revenues $ 1,405,615 $ 1,471,573 $ 3,611,192 $ 3,520,058 Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Operating income North America $ 65,827 $ 182,840 $ 64,124 $ 251,084 EMEA 16,977 8,383 13,990 8,348 Asia-Pacific 34,173 27,151 69,050 54,399 Latin America (10,223 ) (10,550 ) (26,175 ) (27,751 ) Connected Fitness (44,574 ) (8,514 ) (56,058 ) (32,509 ) Total operating income 62,180 199,310 64,931 253,571 Interest expense, net (9,575 ) (8,189 ) (25,237 ) (18,476 ) Other expense, net (1,069 ) (772 ) (1,383 ) (1,025 ) Income before income taxes $ 51,536 $ 190,349 $ 38,311 $ 234,070 The operating income information presented above includes the impact of restructuring and impairment charges related to the Company's restructuring plan. Charges incurred and expected to be incurred by segment in connection with the restructuring plan are as follows: Costs Incurred Estimated Costs to be Incurred Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended December 31, Total (In thousands) 2017 (1) 2017 (1) 2017 (1) 2017 Costs recorded in restructuring and impairment charges: North America $ 30,965 $ 33,563 $ 49,000 $ 82,563 EMEA 184 184 8,000 8,184 Asia-Pacific — — — — Latin America 6,039 6,540 — 6,540 Connected Fitness 47,810 47,810 — 47,810 Total costs recorded in restructuring and impairment charges $ 84,998 $ 88,097 $ 57,000 $ 145,097 (1) This table excludes additional non-cash charges of $3.6 million for the three and nine months ended September 30, 2017 associated with the reduction of inventory outside of current liquidation channels in line with the restructuring plan. Net revenues by product category are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Net Revenues Apparel $ 939,364 $ 1,021,185 $ 2,335,454 $ 2,300,596 Footwear 285,052 278,891 791,637 785,843 Accessories 123,487 121,832 335,172 302,267 Total net sales 1,347,903 1,421,908 3,462,263 3,388,706 License revenues 34,324 29,484 83,639 69,923 Connected Fitness 23,388 20,181 65,290 62,179 Intersegment eliminations — — — (750 ) Total net revenues $ 1,405,615 $ 1,471,573 $ 3,611,192 $ 3,520,058 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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 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 13.1% , 16.0% and 20.2% of accounts receivable as of September 30, 2017 , December 31, 2016 and September 30, 2016 , respectively. For the nine months ended September 30, 2017 , no customer accounted for more than 10% of the Company's net revenues. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts As of September 30, 2017 , December 31, 2016 and September 30, 2016 , the allowance for doubtful accounts w as $13.1 million , $11.3 million and $33.6 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 $25.5 million and $25.7 million for the three months ended September 30, 2017 and 2016 , respectively, and $74.5 million and $65.1 million , for the nine months ended September 30, 2017 and 2016 , 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, 2017 | |
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, 2017 December 31, 2016 September 30, 2016 (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative foreign currency contracts (see Note 8) (7,754 ) — 15,238 — — 1,577 — Interest rate swap contracts (see Note 8) — 156 — — (420 ) — — 3,953 — TOLI policies held by the Rabbi Trust — 5,539 — — 4,880 — — 4,819 — Deferred Compensation Plan obligations — (9,301 ) — — (7,023 ) — — (6,486 ) — |
Risk Management and Derivativ20
Risk Management and Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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) 2017 2016 2017 2016 Unrealized foreign currency exchange rate gains (losses) $ 1,035 $ 985 $ 30,429 $ 4,846 Realized foreign currency exchange rate gains (losses) 3,221 (2,635 ) 865 (3,094 ) Unrealized derivative gains (losses) 388 516 (838 ) (401 ) Realized derivative gains (losses) (4,182 ) 426 (26,972 ) (2,415 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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) 2017 2016 2017 2016 Numerator Net income $ 54,242 $ 128,225 $ 39,660 $ 153,748 Adjustment payment to Class C capital stockholders — — — 59,000 Net income available to all stockholders $ 54,242 $ 128,225 $ 39,660 $ 94,748 Denominator Weighted average common shares outstanding Class A and B 219,491 218,074 219,125 217,535 Effect of dilutive securities Class A and B 3,357 4,041 3,746 4,174 Weighted average common shares and dilutive securities outstanding Class A and B 222,848 222,115 222,871 221,709 Weighted average common shares outstanding Class C 221,784 219,756 221,235 218,147 Effect of dilutive securities Class C 3,807 3,982 4,155 4,154 Weighted average common shares and dilutive securities outstanding Class C 225,591 223,738 225,390 222,301 Basic net income per share of Class A and B common stock $ 0.12 $ 0.29 $ 0.09 $ 0.22 Basic net income per share of Class C common stock $ 0.12 $ 0.29 $ 0.09 $ 0.49 Diluted net income per share of Class A and B common stock $ 0.12 $ 0.29 $ 0.09 $ 0.21 Diluted net income per share of Class C common stock $ 0.12 $ 0.29 $ 0.09 $ 0.48 |
Segment Data and Related Info22
Segment Data and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Reconciliation of Revenue from Segments to Consolidated | Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Net revenues North America $ 1,077,088 $ 1,225,188 $ 2,778,165 $ 2,932,915 EMEA 127,932 105,099 334,683 237,559 Asia-Pacific 130,320 85,810 309,712 188,985 Latin America 46,887 35,295 123,342 99,170 Connected Fitness 23,388 20,181 65,290 62,179 Intersegment eliminations — — — (750 ) Total net revenues $ 1,405,615 $ 1,471,573 $ 3,611,192 $ 3,520,058 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Operating income North America $ 65,827 $ 182,840 $ 64,124 $ 251,084 EMEA 16,977 8,383 13,990 8,348 Asia-Pacific 34,173 27,151 69,050 54,399 Latin America (10,223 ) (10,550 ) (26,175 ) (27,751 ) Connected Fitness (44,574 ) (8,514 ) (56,058 ) (32,509 ) Total operating income 62,180 199,310 64,931 253,571 Interest expense, net (9,575 ) (8,189 ) (25,237 ) (18,476 ) Other expense, net (1,069 ) (772 ) (1,383 ) (1,025 ) Income before income taxes $ 51,536 $ 190,349 $ 38,311 $ 234,070 |
Net Revenues by Product Category | incurred and expected to be incurred by segment in connection with the restructuring plan are as follows: Costs Incurred Estimated Costs to be Incurred Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended December 31, Total (In thousands) 2017 (1) 2017 (1) 2017 (1) 2017 Costs recorded in restructuring and impairment charges: North America $ 30,965 $ 33,563 $ 49,000 $ 82,563 EMEA 184 184 8,000 8,184 Asia-Pacific — — — — Latin America 6,039 6,540 — 6,540 Connected Fitness 47,810 47,810 — 47,810 Total costs recorded in restructuring and impairment charges $ 84,998 $ 88,097 $ 57,000 $ 145,097 (1) This table excludes additional non-cash charges of $3.6 million for the three and nine months ended September 30, 2017 associated with the reduction of inventory outside of current liquidation channels in line with the restructuring plan. Net revenues by product category are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2017 2016 2017 2016 Net Revenues Apparel $ 939,364 $ 1,021,185 $ 2,335,454 $ 2,300,596 Footwear 285,052 278,891 791,637 785,843 Accessories 123,487 121,832 335,172 302,267 Total net sales 1,347,903 1,421,908 3,462,263 3,388,706 License revenues 34,324 29,484 83,639 69,923 Connected Fitness 23,388 20,181 65,290 62,179 Intersegment eliminations — — — (750 ) Total net revenues $ 1,405,615 $ 1,471,573 $ 3,611,192 $ 3,520,058 |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Schedule Of Customers That Accounted For A Large Portion Of Net Revenues And Accounts Receivable) (Detail) | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Customer A [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Credit Risk, Percentage | 13.10% | 16.00% | 20.20% |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Share-based Compensation, Option and Incentive Plans, Director Policy [Policy Text Block] | $ 12,300 | ||||||
Dividends | $ 59,000 | ||||||
Dividends Paid, Cash | $ 2,900 | 0 | 2,927 | ||||
Allowance for doubtful accounts receivable | $ 13,100 | $ 33,600 | 13,100 | 33,600 | $ 11,300 | ||
Shipping and handling costs | 25,500 | 25,700 | 74,500 | 65,100 | |||
Payments to Acquire Available-for-sale Securities | 0 | 24,230 | |||||
Proceeds from Sale of Available-for-sale Securities, Equity | 0 | 30,712 | |||||
Restructuring Costs and Asset Impairment Charges | 28,600 | ||||||
Common Class C [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Dividends | $ 0 | $ 0 | $ 0 | $ 59,000 | |||
Stock Dividends, Shares | 1,470,256 | ||||||
Accounts Receivable [Member] | Customer A [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Credit Risk, Percentage | 13.10% | 20.20% | 13.10% | 20.20% | 16.00% | ||
Sales Revenue, Net [Member] | Customer A [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Concentration Risk, Percentage | 0.00% | 11.00% | |||||
Senior Notes [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 5,300 | $ 5,300 | |||||
Revolving Credit Facility [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 3,900 | $ 3,900 | |||||
Debt Instrument, Unused Borrowing Capacity, Amount | 300,000 | 300,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000 | 1,250,000 | |||||
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1,300 | 1,300 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 1,900 | $ 1,900 | |||||
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 26,000 | ||||||
Operating Activities [Member] | Accounting Standards Update 2016-09 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 44,400 | 44,400 | |||||
Financing Activities [Member] | Accounting Standards Update 2016-09 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 13,700 | $ 13,700 |
Credit Facility And Long Term25
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2012 | Dec. 31, 2016 | |
Debt Disclosure [Line Items] | |||||||
Long term debt, net of current maturities | $ 771,382 | $ 796,768 | $ 771,382 | $ 796,768 | $ 790,388 | ||
Letters of Credit Outstanding, Amount | $ 4,600 | 4,600 | |||||
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 | $ 270,000 | 250,000 | 270,000 | 250,000 | 0 | ||
Repayments of Long-term Debt | 415,250 | 889,000 | |||||
Interest Income (Expense), Net | $ (9,575) | (8,189) | $ (25,237) | (18,476) | |||
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 | ||||||
Term Loan Facility [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Weighted Average Interest Rate | 2.40% | 2.20% | |||||
Long term debt agreements principal outstanding | $ 167,500 | $ 167,500 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Credit facility maximum borrowing capacity | 1,250,000 | 1,250,000 | |||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 3,900 | 3,900 | |||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 300,000 | $ 300,000 | |||||
Secured Debt [Member] | |||||||
Debt Disclosure [Line Items] | |||||||
Debt Facility Term Period | 7 years | ||||||
Weighted Average Interest Rate | 2.70% | 2.50% | |||||
Debt Instrument, Maturity Date | Dec. 1, 2019 | ||||||
Secured Debt | $ 50,000 | $ 40,500 | $ 42,500 | $ 40,500 | $ 42,500 | $ 50,000 | $ 42,000 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 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] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1,577 | 1,577 | 15,238 | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 7,754 | 7,754 | |||
TOLI policies held by the Rabbi Trust | 5,539 | 4,819 | 5,539 | 4,819 | 4,880 |
Deferred Compensation Plan obligations | (9,301) | (6,486) | (9,301) | (6,486) | (7,023) |
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 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 | 200 | 500 | 800 | 1,600 | |
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 | 156 | 3,953 | 156 | 3,953 | (420) |
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 ($) | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 557,300,000 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Debt Instrument [Line Items] | |||
Deferred Compensation Plan Obligations Fair Value Disclosure | 0 | $ 0 | $ 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | |||
Debt Instrument [Line Items] | |||
Deferred Compensation Plan Obligations Fair Value Disclosure | 0 | 0 | 0 |
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Performance-Based Restricted Stock Units Granted in 2017 [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 | 1.8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Annual Vesting Percentage | 50.00% | |
Performance-Based Options Granted in 2017 [Domain] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Annual Vesting Percentage | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0.5 | |
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, Weighted Average Grant Date Fair Value | $ 19.05 | |
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, Weighted Average Grant Date Fair Value | $ 8.17 | |
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 | $ 4.2 |
Risk Management And Derivativ29
Risk Management And Derivatives (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative [Line Items] | |||||
Maturity of foreign currency forward contract | 14 months | ||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 100 | $ (1,800) | |||
Notional Amount of Interest Rate Derivatives | $ 338,600 | 338,600 | |||
Derivative, Lower Remaining Maturity Range | 1 month | ||||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | $ 140,000 | 140,000 | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 200 | $ 500 | 800 | $ 1,600 | |
Fair Value, Inputs, Level 2 [Member] | |||||
Derivative [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | (7,754) | (7,754) | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | (1,577) | (1,577) | $ (15,238) | ||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Interest Rate Derivatives, at Fair Value, Net | $ 156 | $ 3,953 | $ 156 | $ 3,953 | $ (420) |
Risk Management And Derivativ30
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Foreign Currency Exchange Gain Loss [Line Items] | |||||
Maturity of foreign currency forward contract | 14 months | ||||
Unrealized foreign currency exchange rate gains (losses) | $ 30,429 | $ 4,846 | |||
Foreign Currency Exchange Rates [Member] | |||||
Foreign Currency Exchange Gain Loss [Line Items] | |||||
Unrealized foreign currency exchange rate gains (losses) | $ 1,035 | $ 985 | 30,429 | 4,846 | |
Realized foreign currency exchange rate gains (losses) | 3,221 | (2,635) | 865 | (3,094) | |
Gain (Loss) on Derivative Instruments [Member] | |||||
Foreign Currency Exchange Gain Loss [Line Items] | |||||
Unrealized derivative gains (losses) | 388 | 516 | (838) | (401) | |
Realized derivative gains (losses) | $ (4,182) | 426 | $ (26,972) | (2,415) | |
Fair Value, Inputs, Level 2 [Member] | |||||
Foreign Currency Exchange Gain Loss [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 1,577 | $ 1,577 | $ 15,238 |
Provision For Income Taxes (Det
Provision For Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Provision For Income Taxes [Line Items] | |||||
Income Tax Expense (Benefit) | $ (2,706) | $ 62,124 | $ (1,349) | $ 80,322 | |
Effective tax rate | (3.52118%) | 34.31538% | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 13,200 | ||||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 16,000 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 54,242 | $ 128,225 | $ 39,660 | $ 153,748 |
Dividends | 59,000 | |||
Net Income (Loss) Attributable to Parent after Dividends Paid | $ 54,242 | $ 128,225 | 39,660 | 94,748 |
Effect of dilutive securities | 3,357,000 | 4,041,000 | ||
Common Class C [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Dividends | $ 0 | $ 0 | $ 0 | $ 59,000 |
Weighted Average Number of Shares Outstanding, Basic | 221,784,000 | 219,756,000 | 221,235,000 | 218,147,000 |
Effect of dilutive securities | 3,807,000 | 3,982,000 | 4,155,000 | 4,154,000 |
Weighted Average Number of Shares Outstanding, Diluted | 225,591,000 | 223,738,000 | 225,390,000 | 222,301,000 |
Earnings Per Share, Basic | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.49 |
Earnings Per Share, Diluted | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.48 |
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 | 219,491,000 | 218,074,000 | 219,125,000 | 217,535,000 |
Effect of dilutive securities | 3,746,000 | 4,174,000 | ||
Weighted Average Number of Shares Outstanding, Diluted | 222,848,000 | 222,115,000 | 222,871,000 | 221,709,000 |
Earnings Per Share, Basic | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.22 |
Earnings Per Share, Diluted | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.21 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to Parent | $ 54,242 | $ 128,225 | $ 39,660 | $ 153,748 |
Dividends | $ 59,000 | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 3,357,000 | 4,041,000 | ||
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 | 233,800 | 83,700 | 272,300 | 86,900 |
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 | 4,000,000 | 1,100,000 | 4,100,000 | 444,300 |
Dividends | $ 0 | $ 0 | $ 0 | $ 59,000 |
Weighted Average Number of Shares Outstanding, Basic | 221,784,000 | 219,756,000 | 221,235,000 | 218,147,000 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 3,807,000 | 3,982,000 | 4,155,000 | 4,154,000 |
Weighted Average Number of Shares Outstanding, Diluted | 225,591,000 | 223,738,000 | 225,390,000 | 222,301,000 |
Earnings Per Share, Basic | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.49 |
Earnings Per Share, Diluted | $ 0.12 | $ 0.29 | $ 0.09 | $ 0.48 |
Segment Data And Related Info34
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 | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | $ 57,000 | $ 84,998 | $ 0 | $ 88,097 | $ 0 | $ 145,097 |
Net revenues | 1,347,903 | 1,421,908 | 3,462,263 | 3,388,706 | ||
Revenue, Net | 1,405,615 | 1,471,573 | 3,611,192 | 3,520,058 | ||
Total operating income | 62,180 | 199,310 | 64,931 | 253,571 | ||
Interest Income (Expense), Net | (9,575) | (8,189) | (25,237) | (18,476) | ||
Other income (expense), net | (1,069) | (772) | (1,383) | (1,025) | ||
Income before income taxes | 51,536 | 190,349 | 38,311 | 234,070 | ||
North America [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 49,000 | 30,965 | 33,563 | 82,563 | ||
Net revenues | 1,077,088 | 1,225,188 | 2,778,165 | 2,932,915 | ||
Total operating income | 65,827 | 182,840 | 64,124 | 251,084 | ||
EMEA [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 8,000 | 184 | 184 | 8,184 | ||
Net revenues | 127,932 | 105,099 | 334,683 | 237,559 | ||
Total operating income | 16,977 | 8,383 | 13,990 | 8,348 | ||
Asia Pacific [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 0 | 0 | 0 | 0 | ||
Net revenues | 130,320 | 85,810 | 309,712 | 188,985 | ||
Total operating income | 34,173 | 27,151 | 69,050 | 54,399 | ||
Latin America [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 0 | 6,039 | 6,540 | 6,540 | ||
Net revenues | 46,887 | 35,295 | 123,342 | 99,170 | ||
Total operating income | (10,223) | (10,550) | (26,175) | (27,751) | ||
Connected Fitness [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | $ 0 | 47,810 | 47,810 | $ 47,810 | ||
Net revenues | 23,388 | 20,181 | 65,290 | 62,179 | ||
Total operating income | (44,574) | (8,514) | (56,058) | (32,509) | ||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 0 | 0 | ||||
Revenue, Net | $ 0 | $ 0 | $ 0 | $ (750) |
Segment Data And Related Info35
Segment Data And Related Information (Net Revenues By Product Category) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | $ 57,000 | $ 84,998 | $ 0 | $ 88,097 | $ 0 | $ 145,097 |
Operating Income (Loss) | 62,180 | 199,310 | 64,931 | 253,571 | ||
Revenue, Net | 1,405,615 | 1,471,573 | 3,611,192 | 3,520,058 | ||
License revenues | 34,324 | 29,484 | 83,639 | 69,923 | ||
Net revenues | 1,347,903 | 1,421,908 | 3,462,263 | 3,388,706 | ||
Interest Income (Expense), Net | (9,575) | (8,189) | (25,237) | (18,476) | ||
Other Nonoperating Income (Expense) | (1,069) | (772) | (1,383) | (1,025) | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 51,536 | 190,349 | 38,311 | 234,070 | ||
Apparel [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 939,364 | 1,021,185 | 2,335,454 | 2,300,596 | ||
Footwear [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 285,052 | 278,891 | 791,637 | 785,843 | ||
Accessories [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 123,487 | 121,832 | 335,172 | 302,267 | ||
North America [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 49,000 | 30,965 | 33,563 | 82,563 | ||
Operating Income (Loss) | 65,827 | 182,840 | 64,124 | 251,084 | ||
Net revenues | 1,077,088 | 1,225,188 | 2,778,165 | 2,932,915 | ||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue, Net | 0 | 0 | 0 | (750) | ||
Net revenues | 0 | 0 | ||||
Connected Fitness [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 0 | 47,810 | 47,810 | 47,810 | ||
Operating Income (Loss) | (44,574) | (8,514) | (56,058) | (32,509) | ||
Net revenues | 23,388 | 20,181 | 65,290 | 62,179 | ||
EMEA [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 8,000 | 184 | 184 | 8,184 | ||
Operating Income (Loss) | 16,977 | 8,383 | 13,990 | 8,348 | ||
Net revenues | 127,932 | 105,099 | 334,683 | 237,559 | ||
Asia Pacific [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | 0 | 0 | 0 | 0 | ||
Operating Income (Loss) | 34,173 | 27,151 | 69,050 | 54,399 | ||
Net revenues | 130,320 | 85,810 | 309,712 | 188,985 | ||
Latin America [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Costs and Asset Impairment Charges | $ 0 | 6,039 | 6,540 | $ 6,540 | ||
Operating Income (Loss) | (10,223) | (10,550) | (26,175) | (27,751) | ||
Net revenues | $ 46,887 | $ 35,295 | $ 123,342 | $ 99,170 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Inventory Write-down | $ 0 | $ 3,597 | $ 3,597 | $ 3,597 | ||
Goodwill, Impairment Loss, Net of Tax | 0 | 28,647 | 28,647 | 28,647 | ||
Restructuring Charges | 28,700 | |||||
Severance Costs | 3,000 | 11,657 | 12,159 | 15,159 | ||
Other Restructuring Costs | 23,000 | 12,603 | 15,200 | 38,200 | ||
Asset Impairment Charges | $ 31,200 | 55,116 | ||||
Restructuring and Related Cost, Caption that Includes Restructuring Charges | 59.9 | |||||
Goodwill, Impairment Loss | $ 28,600 | |||||
Impairment of Long-Lived Assets to be Disposed of | 0 | 14,415 | 14,415 | 14,415 | ||
Goodwill and Intangible Asset Impairment | 0 | 12,054 | 12,054 | 12,054 | ||
Business Exit Costs | 31,000 | 5,622 | 5,622 | 36,622 | ||
Restructuring Costs and Asset Impairment Charges | 57,000 | 84,998 | $ 0 | 88,097 | $ 0 | 145,097 |
Restructuring and Related Cost, Incurred Cost | $ 57,000 | $ 88,595 | $ 91,694 | $ 148,694 |