Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-QT | |
Document Quarterly Report | false | |
Document Transition Report | true | |
Document Period Start Date | Jan. 1, 2022 | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 001-33202 | |
Entity Registrant Name | UNDER ARMOUR, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 52-1990078 | |
Entity Address, Address Line One | 1020 Hull Street | |
Entity Address, City or Town | Baltimore | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21230 | |
City Area Code | 410 | |
Local Phone Number | 468-2512 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001336917 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | UAA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 188,668,560 | |
Class C Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class C Common Stock | |
Trading Symbol | UA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 238,495,475 | |
Class B Convertible Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,450,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Current assets | |||
Cash and cash equivalents | $ 1,009,139 | $ 1,669,453 | $ 1,348,737 |
Accounts receivable, net | 702,197 | 569,014 | 696,287 |
Inventories | 824,455 | 811,410 | 851,829 |
Prepaid expenses and other current assets, net | 297,034 | 286,422 | 260,865 |
Total current assets | 2,832,825 | 3,336,299 | 3,157,718 |
Property and equipment, net | 601,365 | 607,226 | 632,307 |
Operating lease right-of-use assets | 420,397 | 448,364 | 511,130 |
Goodwill | 491,508 | 495,215 | 497,970 |
Intangible assets, net | 10,580 | 11,010 | 12,548 |
Deferred income taxes | 20,141 | 17,812 | 23,796 |
Other long term assets | 76,016 | 75,470 | 78,827 |
Total assets | 4,452,832 | 4,991,396 | 4,914,296 |
Current liabilities | |||
Accounts payable | 560,331 | 613,307 | 490,860 |
Accrued expenses | 317,963 | 460,165 | 311,905 |
Customer refund liabilities | 159,628 | 164,294 | 191,979 |
Operating lease liabilities | 134,833 | 138,664 | 160,918 |
Other current liabilities | 125,840 | 73,746 | 78,655 |
Total current liabilities | 1,298,595 | 1,450,176 | 1,234,317 |
Long term debt, net of current maturities | 672,286 | 662,531 | 1,009,951 |
Operating lease liabilities, non-current | 668,983 | 703,111 | 801,292 |
Other long term liabilities | 84,014 | 86,584 | 98,537 |
Total liabilities | 2,723,878 | 2,902,402 | 3,144,097 |
Stockholders’ equity | |||
Additional paid-in capital | 1,046,961 | 1,108,613 | 1,072,401 |
Retained earnings | 721,926 | 1,027,833 | 747,231 |
Accumulated other comprehensive (income) loss | (40,086) | (47,610) | (49,584) |
Total stockholders' equity | 1,728,954 | 2,088,994 | 1,770,199 |
Total liabilities and stockholders' equity | 4,452,832 | 4,991,396 | 4,914,296 |
Class A Common Stock | |||
Stockholders’ equity | |||
Common Stock | 63 | 63 | 62 |
Class B Convertible Common Stock | |||
Stockholders’ equity | |||
Common Stock | 11 | 11 | 11 |
Class C Common Stock | |||
Stockholders’ equity | |||
Common Stock | $ 79 | $ 84 | $ 78 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Class A Common Stock | |||
Commons stock, par value (USD per share) | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 188,668,560 | 188,650,987 | 188,622,010 |
Common stock, shares outstanding (in shares) | 188,668,560 | 188,650,987 | 188,622,010 |
Class B Convertible Common Stock | |||
Commons stock, par value (USD per share) | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Common stock, authorized (in shares) | 34,450,000 | 34,450,000 | 34,450,000 |
Common stock, shares issued (in shares) | 34,450,000 | 34,450,000 | 34,450,000 |
Common stock, shares outstanding (in shares) | 34,450,000 | 34,450,000 | 34,450,000 |
Class C Common Stock | |||
Commons stock, par value (USD per share) | $ 0.0003 | $ 0.0003 | $ 0.0003 |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 238,472,217 | 253,161,064 | 233,934,560 |
Common stock, shares outstanding (in shares) | 238,472,217 | 253,161,064 | 233,934,560 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,300,945 | $ 1,257,195 |
Cost of goods sold | 695,781 | 628,554 |
Gross profit | 605,164 | 628,641 |
Selling, general and administrative expenses | 594,446 | 514,638 |
Restructuring and impairment charges | 56,674 | 7,113 |
Income (loss) from operations | (45,956) | 106,890 |
Interest income (expense), net | (6,154) | (14,137) |
Other income (expense), net | (51) | (7,180) |
Income (loss) before income taxes | (52,161) | 85,573 |
Income tax expense (benefit) | 8,181 | 9,881 |
Income (loss) from equity method investments | 732 | 2,060 |
Net income (loss) | $ (59,610) | $ 77,752 |
Basic net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ (0.13) | $ 0.17 |
Diluted net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ (0.13) | $ 0.17 |
Weighted average common shares outstanding Class A, B and C common stock | ||
Basic (in shares) | 471,425 | 456,014 |
Diluted (in shares) | 471,425 | 459,226 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (59,610) | $ 77,752 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 7,045 | 3,318 |
Unrealized gain (loss) on cash flow hedges, net of tax benefit (expense) of $(909) and $(1,232) for the three months ended March 31, 2022 and 2021, respectively. | 758 | 8,798 |
Gain (loss) on intra-entity foreign currency transactions | (279) | (2,515) |
Total other comprehensive income (loss) | 7,524 | 9,601 |
Comprehensive income (loss) | $ (52,086) | $ 87,353 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Cash flow hedge, tax benefit (expense) | $ (909) | $ (1,232) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock | Class C Common Stock | Common StockClass A Common Stock | Common StockClass B Convertible Common Stock | Common StockClass C Common Stock | Additional Paid-in-Capital | Additional Paid-in-CapitalCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (shares) at Dec. 31, 2020 | 188,603,000 | 34,450,000 | 231,954,000 | |||||||||
Beginning balance at Dec. 31, 2020 | $ 1,675,993 | $ 62 | $ 11 | $ 77 | $ 1,061,173 | $ 673,855 | $ (59,185) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options (shares) | 3,000 | 3,000 | ||||||||||
Exercise of stock options | 6 | 6 | ||||||||||
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements (shares) | 0 | (228,000) | ||||||||||
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements | (4,376) | (4,376) | ||||||||||
Issuance of common stock, net of forfeitures (shares) | 16,000 | 2,206,000 | ||||||||||
Issuance of Class C Common Stock, net of forfeitures | 851 | $ 1 | 850 | |||||||||
Stock-based compensation expense | 10,372 | 10,372 | ||||||||||
Comprehensive income (loss) | 87,353 | 77,752 | 9,601 | |||||||||
Ending balance (shares) at Mar. 31, 2021 | 188,622,000 | 34,450,000 | 233,935,000 | |||||||||
Ending balance at Mar. 31, 2021 | 1,770,199 | $ 62 | $ 11 | $ 78 | 1,072,401 | 747,231 | (49,584) | |||||
Beginning balance (shares) at Dec. 31, 2020 | 188,603,000 | 34,450,000 | 231,954,000 | |||||||||
Beginning balance at Dec. 31, 2020 | 1,675,993 | $ 62 | $ 11 | $ 77 | 1,061,173 | 673,855 | (59,185) | |||||
Ending balance (shares) at Dec. 31, 2021 | 188,651,000 | 34,450,000 | 253,161,000 | |||||||||
Ending balance at Dec. 31, 2021 | $ 2,088,994 | $ (9,207) | $ 63 | $ 11 | $ 84 | 1,108,613 | $ (14,351) | 1,027,833 | $ 5,144 | (47,610) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 | |||||||||||
Exercise of stock options (shares) | 0 | |||||||||||
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements | $ (11,446) | (11,446) | ||||||||||
Class C Common Stock repurchased (shares) | (16,151,000) | |||||||||||
Class C Common Stock repurchased | (300,000) | $ (5) | (60,000) | (239,995) | ||||||||
Issuance of common stock, net of forfeitures (shares) | 18,000 | 1,462,000 | ||||||||||
Issuance of Class C Common Stock, net of forfeitures | $ 0 | $ 935 | 935 | |||||||||
Stock-based compensation expense | 11,764 | 11,764 | ||||||||||
Comprehensive income (loss) | (52,086) | (59,610) | 7,524 | |||||||||
Ending balance (shares) at Mar. 31, 2022 | 188,669,000 | 34,450,000 | 238,472,000 | |||||||||
Ending balance at Mar. 31, 2022 | $ 1,728,954 | $ 63 | $ 11 | $ 79 | $ 1,046,961 | $ 721,926 | $ (40,086) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ (59,610) | $ 77,752 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation and amortization | 34,960 | 35,512 |
Unrealized foreign currency exchange rate gain (loss) | (8,585) | 14,702 |
Loss on disposal of property and equipment | 1,604 | 575 |
Non-cash restructuring and impairment charges | (1,871) | 5,601 |
Amortization of bond premium and debt issuance costs | 549 | 5,273 |
Stock-based compensation | 11,764 | 10,372 |
Deferred income taxes | (2,500) | (9) |
Changes in reserves and allowances | (5,250) | (9,262) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (131,988) | (170,493) |
Inventories | (6,425) | 49,246 |
Prepaid expenses and other assets | (4,326) | 22,295 |
Other non-current assets | 27,628 | 19,467 |
Accounts payable | (54,970) | (80,092) |
Accrued expenses and other liabilities | (122,589) | (121,841) |
Customer refund liability | (4,398) | (10,949) |
Income taxes payable and receivable | 4,564 | 1,263 |
Net cash provided by (used in) operating activities | (321,443) | (150,588) |
Cash flows from investing activities | ||
Purchases of property and equipment | (39,923) | (8,465) |
Sale of property and equipment | 0 | 561 |
Net cash provided by (used in) investing activities | (39,923) | (7,904) |
Cash flows from financing activities | ||
Common Shares Repurchased | (300,000) | 0 |
Employee taxes paid for shares withheld for income taxes | (11,446) | (4,301) |
Proceeds from exercise of stock options and other stock issuances | 934 | 858 |
Net cash provided by (used in) financing activities | (310,512) | (3,443) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 11,134 | (6,900) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (660,744) | (168,835) |
Cash, cash equivalents and restricted cash | ||
Beginning of period | 1,682,870 | 1,528,515 |
End of period | 1,022,126 | 1,359,680 |
Non-cash investing and financing activities | ||
Change in accrual for property and equipment | (23,533) | (40) |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 1,009,139 | 1,348,737 |
Restricted cash | 12,987 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 1,022,126 | $ 1,359,680 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Business Under Armour, Inc. (together with its wholly owned subsidiaries, the "Company") is a developer, marketer and distributor of branded athletic performance apparel, footwear and accessories. The Company creates products engineered to make athletes better with a vision to inspire performance solutions you never knew you needed and can't imagine living without. The Company's products are made, sold and worn worldwide. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements are presented in U.S. Dollars and include the accounts of Under Armour, Inc. and its wholly owned subsidiaries. Certain information in footnote disclosures normally included in annual financial statements were 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 ("U.S. GAAP") 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 upon consolidation. The unaudited Condensed Consolidated Balance Sheet as of March 31, 2022 is derived from the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 ("Fiscal 2021"), filed with the SEC on February 23, 2022 ("Annual Report on Form 10-K for Fiscal 2021"), which should be read in conjunction with these unaudited Condensed Consolidated Financial Statements. The unaudited results for the three months ended March 31, 2022, are not necessarily indicative of the results to be expected for the fiscal year beginning April 1, 2022 and ending March 31, 2023 ("Fiscal 2023"), or any other portions thereof. Fiscal Year End Change As previously disclosed, in the first quarter of Fiscal 2021, the Company's Board of Directors approved a change in the Company's fiscal year end from December 31 to March 31, effective for the fiscal year beginning April 1, 2022. As a result of the change in fiscal year end, this document reflects the Company's Transition Report on Form 10-Q for the period from January 1, 2022 through March 31, 2022. The Company's next fiscal year will run from April 1, 2022 through March 31, 2023 (Fiscal 2023). Consequently, there will be no Fiscal 2022. Due to the change in fiscal year end, the income tax provision for the three months ended March 31, 2022 was calculated using actual tax rates for the period. The provision for income taxes for the comparative three months ended March 31, 2021 was computed using the estimated effective tax rate applicable to Fiscal 2021. Management Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. These estimates, judgments and assumptions are evaluated on an on-going basis. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable at that time; however, actual results could differ from these estimates. The COVID-19 pandemic continues to significantly impact the global economy. As the impacts of major global events continue to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. The extent to which the evolving events impact the Company's financial statements will depend on a number of factors including, but not limited to, any new information that may emerge concerning the severity of these major events and the actions that governments around the world may take in response. While the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of this reporting date, the Company may experience further impacts based on long-term effects on the Company's customers and the countries in which the |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Standards In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06 "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)" ("ASU 2020-06"), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions; requires the application of the if-converted method for calculating diluted earnings per share; and requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity's financial statements, and information about events, conditions, and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. The Company adopted ASU 2020-06, effective January 1, 2022 using the modified retrospective transition approach. As a result of this adoption, the Company recorded a cumulative effect adjustment of $5.1 million to retained earnings. The adoption had no material impact on the Company's Condensed Consolidated Statement of Operations and related disclosures. |
Allowance For Doubtful Accounts
Allowance For Doubtful Accounts | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | ALLOWANCE FOR DOUBTFUL ACCOUNTS The Company's allowance for doubtful accounts was established with information available as of March 31, 2022, including reasonable and supportable estimates of future risk. The following table illustrates the activity in the Company's allowance for doubtful accounts: Allowance for doubtful accounts - within accounts receivable, net Allowance for doubtful accounts - within prepaid expenses and other current assets (1) Balance at December 31, 2021 $ 7,128 $ 7,029 Increases (decreases) to costs and expenses (36) — Write-offs, net of recoveries 21 — Balance at March 31, 2022 $ 7,113 $ 7,029 (1) Includes an allowance pertaining to a royalty receivable. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of March 31, 2022 As of December 31, 2021 Leasehold and tenant improvements $ 461,394 $ 462,588 Furniture, fixtures and displays 263,749 259,534 Buildings 48,382 48,382 Software 339,722 333,560 Office equipment 132,452 132,629 Plant equipment 178,188 178,187 Land 83,626 83,626 Construction in progress (1) 64,869 52,598 Other 5,751 5,545 Subtotal property and equipment 1,578,133 1,556,649 Accumulated depreciation (976,768) (949,423) Property and equipment, net $ 601,365 $ 607,226 (1) Construction in progress primarily includes costs incurred for software systems, leasehold improvements and in-store fixtures and displays not yet placed in use. Depreciation expense related to property and equipment was $34.5 million for the three months ended March 31, 2022 (three months ended March 31, 2021: $33.9 million). |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES The Company enters into operating leases domestically and internationally to lease certain warehouse space, office facilities, space for its Brand and Factory House stores, and certain equipment under non-cancelable operating leases. The leases expire at various dates through 2035, excluding extensions at the Company's option, and include provisions for rental adjustments. Short-term lease payments were not material for the three months ended March 31, 2022 and 2021. Lease Costs and Other Information The Company recognizes lease expense on a straight-line basis over the lease term. The following table illustrates operating and variable lease costs, included in selling, general and administrative expenses within the Company's Consolidated Statements of Operations, for the periods indicated: Three months ended March 31, 2022 2021 Operating lease costs $ 36,699 $ 34,935 Variable lease costs $ 3,759 $ 2,920 There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. The Company rents or subleases excess office facilities and warehouse space to third parties. Sublease income is not material. The weighted average remaining lease term and discount rate for the periods indicated below were as follows: As of March 31, 2022 As of December 31, 2021 As of March 31, 2021 Weighted average remaining lease term (in years) 8.69 8.73 9.05 Weighted average discount rate 3.72 % 3.72 % 3.82 % Supplemental Cash Flow Information The following table presents supplemental information relating to cash flow arising from lease transactions: Three months ended March 31, 2022 2021 Operating cash outflows from operating leases $ 43,903 $ 45,909 Leased assets obtained in exchange for new operating lease liabilities $ (892) $ 4,074 Maturity of Lease Liabilities The following table presents the future minimum lease payments under the Company's operating lease liabilities as of March 31, 2022: Fiscal year ending March 31, 2023 $ 165,333 2024 141,401 2025 119,869 2026 88,897 2027 70,360 2028 and thereafter 363,083 Total lease payments $ 948,943 Less: Interest 145,127 Total present value of lease liabilities $ 803,816 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following table summarizes changes in the carrying amount of the Company's goodwill by reportable segment as of the periods indicated: North America EMEA Asia-Pacific Latin America Total Balance as of December 31, 2021 301,371 107,741 86,103 — 495,215 Effect of currency translation adjustment — (2,688) (1,019) — (3,707) Impairment — — — — — Balance as of March 31, 2022 $ 301,371 $ 105,053 $ 85,084 $ — $ 491,508 There were no goodwill impairments recorded during the three months ended March 31, 2022 and 2021. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET The following tables summarize the Company's intangible assets as of the periods indicated: As of March 31, 2022 Useful Lives from Date of Acquisitions (in years) Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Technology 5-7 $ 2,536 $ (2,103) $ 433 Customer relationships 2-6 8,552 (2,893) 5,659 Lease-related intangible assets 1-15 9,112 (8,892) 220 Other 5-10 475 (427) 48 Total $ 20,675 $ (14,315) $ 6,360 Indefinite-lived intangible assets 4,220 Intangible assets, net $ 10,580 As of December 31, 2021 Useful Lives from Date of Acquisitions Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Technology 5-7 $ 2,536 $ (2,003) $ 533 Customer relationships 2-6 8,567 (2,552) 6,015 Lease-related intangible assets 1-15 8,852 (8,602) 250 Other 5-10 475 (415) 60 Total $ 20,430 $ (13,572) $ 6,858 Indefinite-lived intangible assets 4,152 Intangible assets, net $ 11,010 Amortization expense, which is included in selling, general and administrative expenses, was $0.5 million for the three months ended March 31, 2022 and 2021. The following is the estimated amortization expense for the Company's intangible assets as of March 31, 2022: Fiscal year ending March 31, 2023 $ 1,994 2024 1,519 2025 1,479 2026 1,359 2027 9 2028 and thereafter — Total Amortization expense of intangible assets $ 6,360 |
Credit Facility and Other Long
Credit Facility and Other Long Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITY AND OTHER LONG TERM DEBT | CREDIT FACILITY AND OTHER LONG TERM DEBT The Company's outstanding debt consisted of the following: As of As of As of 1.50% Convertible Senior Notes due 2024 $ 80,919 $ 80,919 $ 500,000 3.25% Senior Notes due 2026 600,000 600,000 600,000 Total principal payments due 680,919 680,919 1,100,000 Unamortized debt discount on Convertible Senior Notes (1) — (9,207) (73,821) Unamortized debt discount on Senior Notes (1,067) (1,131) (1,321) Unamortized debt issuance costs - Convertible Senior Notes (677) (779) (8,124) Unamortized debt issuance costs - Senior Notes (2,266) (2,401) (2,805) Unamortized debt issuance costs - Credit facility (4,623) (4,870) (3,978) Total amount outstanding 672,286 662,531 1,009,951 Less: Current portion of long-term debt: Credit Facility borrowings — — — Non-current portion of long-term debt $ 672,286 $ 662,531 $ 1,009,951 (1) The Company adopted ASU 2020-06, effective January 1, 2022 using the modified retrospective transition approach. As a result of this adoption, the Company derecognized the remaining unamortized debt discount on Convertible Senior Notes and recorded a cumulative effect adjustment to retained earnings. See Note 2 to the Condensed Consolidated Financial Statements for more details. Credit Facility On March 8, 2019, the Company entered into an amended and restated credit agreement by and among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders and arrangers party thereto (the "credit agreement"). In May 2020, May 2021 and December 2021, the Company entered into the first, second and third amendments to the credit agreement, respectively (the credit agreement as amended, the "amended credit agreement" or the "revolving credit facility"). The amended credit agreement provides for revolving credit commitments of $1.1 billion and has a term that ends on December 3, 2026, with permitted extensions under certain circumstances. As of March 31, 2022, December 31, 2021 and March 31, 2021 there were no amounts outstanding under the revolving credit facility. At the Company's request and a lender's consent, commitments under the amended credit agreement may be increased by up to $300.0 million in aggregate, subject to certain conditions as set forth in the amended credit agreement. Incremental borrowings are uncommitted and the availability thereof will depend on market conditions at the time the Company seeks to incur such borrowings. Borrowings, if any, 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. As of March 31, 2022, there were $4.5 million of letters of credit outstanding (December 31, 2021 and March 31, 2021 had $4.3 million of letters of credit outstanding). The obligations of the Company under the amended credit agreement are guaranteed by certain domestic significant subsidiaries of Under Armour, Inc., subject to customary exceptions (the "subsidiary guarantors") and primarily secured by a first-priority security interest in substantially all of the assets of Under Armour, Inc. and the subsidiary guarantors, excluding real property, capital stock in and debt of subsidiaries of Under Armour, Inc. holding certain real property and other customary exceptions. The amended credit agreement provides for the permanent fall away of guarantees and collateral upon the Company's achievement of investment grade rating from two rating agencies. The amended credit agreement contains negative covenants that, subject to significant exceptions, limit the Company's ability to, among other things: incur additional secured and unsecured indebtedness; pledge the assets as security; make investments, loans, advances, guarantees and acquisitions, (including investments in and loans to non-guarantor subsidiaries); undergo fundamental changes; sell assets outside the ordinary course of business; enter into transactions with affiliates; and make restricted payments. The Company is also required to maintain a ratio of consolidated EBITDA, to consolidated interest expense of not less than 3.50 to 1.0 (the "interest coverage covenant") and the Company is not permitted to allow the ratio of consolidated total indebtedness to consolidated EBITDA to be greater than 3.25 to 1.0 (the "leverage covenant"), as described in more detail in the amended credit agreement. As of March 31, 2022, the Company was in compliance with the applicable covenants. In addition, the amended 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 amended credit agreement, will be considered an event of default under the amended credit agreement. The amended credit agreement implements SOFR as the replacement of LIBOR as a benchmark interest rate for U.S. dollar borrowings (and analogous benchmark rate replacements for borrowings in Yen, Canadian Dollars, Pound Sterling and Euro). Borrowings under the amended credit agreement bear interest at a rate per annum equal to, at the Company's option, either (a) an alternate base rate (for borrowings in U.S. dollars), (b) a term rate (for borrowings in U.S. dollars, Euro, Japaneses Yen or Canadian Dollars) or (c) a "risk free" rate (for borrowings in U.S. dollars or Pounds Sterling), 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 leverage ratio of consolidated total indebtedness to consolidated EBITDA and ranges between 1.00% to 1.75% (or, in the case of alternate base loans, 0.00% to 0.75%). The Company will also pay a commitment fee determined in accordance with the pricing grid on the average daily unused amount of the revolving credit facility and certain fees with respect to letters of credit. As of March 31, 2022, the commitment fee was 15 basis points. 1.50% Convertible Senior Notes In May 2020, the Company issued $500.0 million aggregate principal amount of 1.50% convertible senior notes due 2024 (the "Convertible Senior Notes"). The Convertible Senior Notes bear interest at the rate of 1.50% per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning December 1, 2020. The Convertible Senior Notes will mature on June 1, 2024, unless earlier converted in accordance with their terms, redeemed in accordance with their terms or repurchased. The net proceeds from the offering (including the net proceeds from the exercise of the over-allotment option) were $488.8 million, after deducting the initial purchasers' discount and estimated offering expenses paid by the Company, of which the Company used $47.9 million to pay the cost of the capped call transactions described below. The Company utilized $439.9 million to repay indebtedness that was outstanding under its revolving credit facility at the time, and to pay related fees and expenses. The Convertible Senior Notes are not secured and are not guaranteed by any of the Company's subsidiaries. The indenture governing the Convertible Senior Notes does not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. In May 2021 and August 2021, the Company entered into exchange agreements with certain holders of the Convertible Senior Notes, who agreed to exchange $250.0 million and approximately $169.1 million, respectively, in aggregate principal amount of the Convertible Senior Notes for cash and/or shares of the Company's Class C Common Stock, plus payment for accrued and unpaid interest (the "Exchanges"). In connection with the Exchanges, the Company paid approximately $300.0 million and $207.0 million cash, respectively, and issued approximately 11.1 million and 7.7 million shares of the Company's Class C Common Stock, respectively, to the exchanging holders. Additionally, the Company recognized losses on debt extinguishment of $34.7 million during the second quarter of Fiscal 2021 and $23.8 million during the third quarter of Fiscal 2021, which were recorded within Other Income (Expense), net on the Company's Condensed Consolidated Statements of Operations. Following the Exchanges, approximately $80.9 million aggregate principal amount of the Convertible Senior Notes remain outstanding. The Convertible Senior Notes are convertible into cash, shares of the Company's Class C Common Stock or a combination of cash and shares of Class C Common Stock, at the Company's election, as described further below. The initial conversion rate is 101.8589 shares of the Company's Class C Common Stock per $1,000 principal amount of Convertible Senior Notes (equivalent to an initial conversion price of approximately $9.82 per share of Class C Common Stock), subject to adjustment if certain events occur. Prior to the close of business on the business day immediately preceding January 1, 2024, holders may (at their option) convert their Convertible Senior Notes only upon satisfaction of one or more of the following conditions: • during any calendar quarter commencing after the calendar quarter ended on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company's Class C Common Stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • upon the occurrence of specified corporate events or distributions on the Company's Class C Common Stock; or • if the Company calls any Convertible Senior Notes for redemption prior to the close of business on the business day immediately preceding January 1, 2024. On or after January 1, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Senior Notes at the conversion rate at any time irrespective of the foregoing conditions. On or after December 6, 2022, the Company may redeem for cash all or any part of the Convertible Senior Notes, at its option, if the last reported sale price of the Company's Class C Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the aggregate principal amount of the Convertible Senior Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a fundamental change (as defined in the indenture governing the Convertible Senior Notes) prior to the maturity date, subject to certain conditions, holders may require the Company to repurchase for cash all or any portion of their Convertible Senior Notes in principal amounts of $1,000 or an integral multiple thereof at a price which will be equal to 100% of the aggregate principal amount of the Convertible Senior Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Concurrently with the offering of the Convertible Senior Notes, the Company entered into privately negotiated capped call transactions with JPMorgan Chase Bank, National Association, HSBC Bank USA, National Association, and Citibank, N.A. (the "option counterparties"). The capped call transactions are expected generally to reduce potential dilution to the Company's Class C Common Stock upon any conversion of Convertible Senior Notes and/or offset any cash payments the Company is required to make in excess of the aggregate principal amount of converted Convertible Senior Notes upon any conversion thereof, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. The cap price of the capped call transactions is initially $13.4750 per share of the Company's Class C Common Stock, representing a premium of 75% above the last reported sale price of the Company's Class C Common Stock on May 21, 2020, and is subject to certain adjustments under the terms of the capped call transactions. In May 2021 and August 2021, concurrently with the Exchanges, the Company entered into, with each of the option counterparties, termination agreements relating to a number of options corresponding to the number of Convertible Senior Notes exchanged. Pursuant to such termination agreements, each of the option counterparties paid the Company a cash settlement amount in respect of the portion of capped call transactions being terminated. The Company received approximately $53.0 million and $38.6 million, respectively, in connection with such termination agreements related to the Exchanges. The Convertible Senior Notes contain a cash conversion feature. Prior to the adoption of ASU 2020-06, the Company had separated it into liability and equity components. The Company valued the liability component based on its borrowing rate for a similar debt instrument that does not contain a conversion feature. The equity component, which was recognized as a debt discount, was valued as the difference between the face value of the Convertible Senior Notes and the fair value of the liability component. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method. As a result, the Convertible Senior Notes are no longer accounted for as separate liability and equity components, but rather a single liability. See Note 2 to the Condensed Consolidated Financial Statements for more details. 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 "Senior Notes"). Interest is payable semi-annually on June 15 and December 15 beginning December 15, 2016. The Company may redeem some or all of the Senior Notes at any time, or from time to time, at redemption prices described in the indenture governing the Senior Notes. The indenture governing the Senior Notes contains negative covenants that limit the Company's ability to engage in certain transactions and are subject to material exceptions described in the indenture. The Company incurred and deferred $5.4 million in financing costs in connection with the Senior Notes. Interest Expense Interest expense includes 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. Interest expense, net, was $6.2 million and $14.1 million for three months ended March 31, 2022 and 2021, respectively. The following are the scheduled maturities of long term debt as of March 31, 2022: Fiscal year ending March 31, 2023 $ — 2024 — 2025 80,919 2026 — 2027 600,000 2028 and thereafter Total scheduled maturities of long term debt $ 680,919 Current maturities of long term debt $ — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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. However, the matters described below, if decided adversely to or settled by the Company, could result, individually or in the aggregate, in a liability material to the Company's consolidated financial position, results of operations or cash flows. In re Under Armour Securities Litigation On March 23, 2017, three separate securities cases previously filed against the Company in the United States District Court for the District of Maryland (the "District Court") were consolidated under the caption In re Under Armour Securities Litigation, Case No. 17-cv-00388-RDB (the "Consolidated Securities Action"). On August 4, 2017, the lead plaintiff in the Consolidated Securities Action, Aberdeen City Council as Administrating Authority for the North East Scotland Pension Fund ("Aberdeen"), joined by named plaintiff Bucks County Employees Retirement Fund ("Bucks County"), filed a consolidated amended complaint (the "Amended Complaint") against the Company, the Company's then-Chief Executive Officer, Kevin Plank, and former Chief Financial Officers Lawrence Molloy and Brad Dickerson. The Amended Complaint alleged 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 was September 16, 2015 through January 30, 2017. The Amended Complaint also asserted 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 were asserted against the Company, Mr. Plank, 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. The Amended Complaint alleged 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. On November 9, 2017, the Company and the other defendants filed motions to dismiss the Amended Complaint. On September 19, 2018, the District Court dismissed the Securities Act claims with prejudice and the Exchange Act claims without prejudice. Lead plaintiff Aberdeen, joined by named plaintiff Monroe County Employees' Retirement Fund ("Monroe"), filed a Second Amended Complaint on November 16, 2018, asserting claims under the Exchange Act and naming the Company and Mr. Plank as the remaining defendants. The remaining defendants filed a motion to dismiss the Second Amended Complaint on January 17, 2019. On August 19, 2019, the District Court dismissed the Second Amended Complaint with prejudice. In September 2019, plaintiffs Aberdeen and Bucks County filed an appeal in the United States Court of Appeals for the Fourth Circuit challenging the decisions by the District Court on September 19, 2018 and August 19, 2019 (the "Appeal"). The Appeal was fully briefed as of January 16, 2020. On November 6 and December 17, 2019, two purported shareholders of the Company filed putative securities class actions in the District Court against the Company and certain of its current and former executives (captioned Patel v. Under Armour, Inc., No. 1:19-cv-03209-RDB ("Patel"), and Waronker v. Under Armour, Inc., No. 1:19-cv-03581-RDB ("Waronker"), respectively). The complaints in Patel and Waronker alleged violations of Section 10(b) (and Rule 10b-5) of the Exchange Act, against all defendants, and Section 20(a) control person liability under the Exchange Act against the current and former officers named in the complaints. The complaints claimed that the defendants' disclosures and statements supposedly misrepresented or omitted that the Company was purportedly shifting sales between quarterly periods allegedly to appear healthier and that the Company was under investigation by and cooperating with the United States Department of Justice ("DOJ") and the United States Securities and Exchange Commission ("SEC") since July 2017. On November 18, 2019, Aberdeen, the lead plaintiff in the Consolidated Securities Action, filed in the District Court a motion for an indicative ruling under Federal Rule of Civil Procedure 62.1 (the "Rule 62.1 Motion") seeking relief from the final judgment pursuant to Federal Rule of Civil Procedure 60(b). The Rule 62.1 Motion alleged that purported newly discovered evidence entitled Aberdeen to relief from the District Court's final judgment. Aberdeen also filed motions seeking (i) to consolidate the Patel and Waronker cases with the Consolidated Securities Action, and (ii) to be appointed lead plaintiff over the consolidated cases. On January 22, 2020, the District Court granted Aberdeen's Rule 62.1 motion and indicated that it would grant a motion for relief from the final judgment and provide Aberdeen with the opportunity to file a third amended complaint if the Fourth Circuit remanded for that purpose. The District Court further stated that it would, upon remand, consolidate the Patel and Waronker cases with the Consolidated Securities Action and appoint Aberdeen as the lead plaintiff over the consolidated cases. On August 13, 2020, the Fourth Circuit remanded the Appeal to the District Court for the limited purpose of allowing the District Court to rule on Aberdeen's motion seeking relief from the final judgment pursuant to Federal Rule of Civil Procedure 60(b). On September 14, 2020, the District Court issued an order granting that relief. The District Court's order also consolidated the Patel and Waronker cases into the Consolidated Securities Action and appointed Aberdeen as lead plaintiff over the Consolidated Securities Action. On October 14, 2020, Aberdeen, along with named plaintiffs Monroe and KBC Asset Management NV, filed a third amended complaint (the "TAC") in the Consolidated Securities Action, asserting claims under Sections 10(b) and 20(a) of the Exchange Act against the Company and Mr. Plank and under Section 20A of the Exchange Act against Mr. Plank. The TAC alleges that the defendants supposedly concealed purportedly declining consumer demand for certain of the Company's products between the third quarter of 2015 and the fourth quarter of 2016 by making allegedly false and misleading statements regarding the Company's performance and future prospects and by engaging in undisclosed and allegedly improper sales and accounting practices, including shifting sales between quarterly periods allegedly to appear healthier. The TAC also alleges that the defendants purportedly failed to disclose that the Company was under investigation by and cooperating with DOJ and the SEC since July 2017. The class period identified in the TAC is September 16, 2015 through November 1, 2019. On December 4, 2020, the Company and Mr. Plank filed a motion to dismiss the TAC for failure to state a claim. That motion was denied by the Court on May 18, 2021. Discovery in the Consolidated Securities Action commenced on June 4, 2021 and is currently ongoing. On July 23, 2021, the Company and Mr. Plank filed an answer to the TAC denying all allegations of wrongdoing and asserting affirmative defenses to the claims asserted in the TAC. On December 1, 2021, the plaintiffs filed a motion seeking, among other things, certification of the class they are seeking to represent in the Consolidated Securities Action. The Company and Mr. Plank have opposed this motion, and briefing on the motion is scheduled to be completed as of May 12, 2022. The Company continues to believe that the claims asserted in the Consolidated Securities 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 this matter. State Court Derivative Complaints In June and July 2018, two purported stockholder derivative complaints were filed in Maryland state court (in cases captioned Kenney v. Plank, et al. (filed June 29, 2018) and Luger v. Plank, et al. (filed July 26, 2018), respectively). The cases were consolidated on October 19, 2018 under the caption Kenney v. Plank, et. al. The consolidated complaint in the Kenney matter names Mr. Plank, certain other current and former members of the Company's Board of Directors, certain former Company executives, and Sagamore Development Company, LLC ("Sagamore") as defendants, and names the Company as a nominal defendant. The consolidated complaint asserts breach of fiduciary duty, unjust enrichment, and corporate waste claims against the individual defendants and asserts a claim against Sagamore for aiding and abetting certain of the alleged breaches of fiduciary duty. The consolidated complaint seeks damages on behalf of the Company and certain corporate governance related actions. The consolidated complaint includes allegations similar to those in the Amended Complaint in the Consolidated Securities Action matter discussed above, challenging, among other things, the Company's disclosures related to growth and consumer demand for certain of the Company's products, as well as stock sales by certain individual defendants. The consolidated complaint also makes allegations related to the Company's purchase of certain parcels of land from entities controlled by Mr. Plank (through Sagamore). Sagamore purchased the parcels in 2014. Its total investment in the parcels was approximately $72.0 million, which included the initial $35.0 million purchase price for the property, an additional $30.6 million to terminate a lease encumbering the property and approximately $6.4 million of development costs. As previously disclosed, in June 2016, the Company purchased the unencumbered parcels for $70.3 million in order to further expand the Company's corporate headquarters to accommodate its growth needs. The Company negotiated a purchase price for the parcels that it determined represented the fair market value of the parcels and approximated the cost to the seller to purchase and develop the parcels. In connection with its evaluation of the potential purchase, the Company engaged an independent third-party to appraise the fair market value of the parcels, and the Audit Committee of the Company's Board of Directors engaged its own independent appraisal firm to assess the parcels. The Audit Committee determined that the terms of the purchase were reasonable and fair, and the transaction was approved by the Audit Committee in accordance with the Company's policy on transactions with related persons. On March 29, 2019, the court in the consolidated Kenney action granted the Company's and the defendants' motion to stay that case pending the outcome of both the Consolidated Securities Action and an earlier-filed derivative action asserting similar claims relating to the Company's purchase of parcels in Port Covington (which derivative action has since been dismissed in its entirety). Prior to the filing of the derivative complaints in Kenney v. Plank, et al. and Luger v. Plank, et al., both of the purported stockholders had sent the Company's Board of Directors a letter demanding that the Company pursue claims similar to the claims asserted in the derivative complaints. Following an investigation, a majority of disinterested and independent directors of the Company determined that the claims should not be pursued by the Company and informed both of these purported stockholders of that determination. In 2020, two additional purported shareholder derivative complaints were filed in Maryland state court, in cases captioned Cordell v. Plank, et al. (filed August 11, 2020) and Salo v. Plank, et al. (filed October 21, 2020), respectively. The complaints in the Cordell and Salo cases name Mr. Plank, certain other current and former members of the Company's Board of Directors, and certain current and former Company executives as defendants, and name the Company as a nominal defendant. The complaints in these actions assert allegations similar to those in the TAC filed in the Consolidated Securities Action matter discussed above, including allegations challenging (i) the Company's disclosures related to growth and consumer demand for certain of the Company's products; (ii) the Company's practice of shifting sales between quarterly periods supposedly to appear healthier and its purported failure to disclose that practice; (iii) the Company's internal controls with respect to revenue recognition and inventory management; (iv) the Company's supposed failure to timely disclose investigations by the SEC and DOJ; (v) the compensation paid to the Company's directors and executives while the alleged wrongdoing was occurring; and/or (vi) stock sales by certain individual defendants. The complaints assert breach of fiduciary duty, unjust enrichment, and corporate waste claims against the individual defendants. These complaints seek damages on behalf of the Company and certain corporate governance related actions. Prior to the filing of the derivative complaints in these two actions, neither of the purported stockholders made a demand that the Company's Board of Directors pursue the claims asserted in the complaints. In October 2021, the court issued an order (i) consolidating the Cordell and Salo actions with the consolidated Kenney action into a single consolidated derivative action (the "Consolidated State Derivative Action"); (ii) designating the Kenney action as the lead case; and (iii) specifying that the scheduling order in the Kenney action shall control the Consolidated State Derivative Action. On December 20, 2021, the court issued an order dismissing the Consolidated State Derivative Action for lack of prosecution pursuant to Maryland Rule 2-507 without prejudice to plaintiffs' right to reinstate the action. Federal Court Derivative Complaints In July 2018, a stockholder derivative complaint was filed in the United States District Court for the District of Maryland, in a case captioned Andersen v. Plank, et al. The complaint in the Andersen matter names Mr. Plank, certain other current and former members of the Company's Board of Directors and certain former Company executives as defendants, and names the Company as a nominal defendant. The complaint asserts breach of fiduciary duty and unjust enrichment claims against the individual defendants, and seeks damages on behalf of the Company and certain corporate governance related actions. The complaint includes allegations similar to those in the Amended Complaint in the Consolidated Securities Action matter discussed above, challenging, among other things, the Company's disclosures related to growth and consumer demand for certain of the Company's products and stock sales by certain individual defendants. The Andersen action was stayed from December 2018 to August 2019 and again from September 2019 to September 2020 (the "2019 Stay Order"). Pursuant to a series of court ordered stipulations, the terms of the 2019 Stay Order remained in effect through and including January 19, 2021. The stay expired on January 19, 2021. Prior to the filing of the complaint in the Andersen action, the plaintiff had sent the Company's Board of Directors a letter demanding that the Company pursue claims similar to the claims asserted in the complaint. Following an investigation, a majority of disinterested and independent directors of the Company determined that the claims should not be pursued by the Company and informed the plaintiff of that determination. During the pendency of the Andersen action, the plaintiff sent the Company's Board of Directors a second letter demanding that the Company pursue claims similar to the claims asserted in the TAC in the Consolidated Securities Action. Following an investigation, a majority of disinterested and independent directors of the Company determined that the claims should not be pursued by the Company and informed the plaintiff of that determination. In September 2020, two additional derivative complaints were filed in the United States District Court for the District of Maryland (in cases captioned Olin v. Plank, et al. (filed September 1, 2020), and Smith v. Plank, et al. (filed September 8, 2020), respectively). Prior to the filing of the derivative complaints in these two actions, neither of the purported stockholders made a demand that the Company's Board of Directors pursue the claims asserted in the complaints. On November 20, 2020, another derivative complaint was filed in the United States District Court for the District of Maryland, in a case captioned Viskovich v. Plank, et al. Prior to filing his derivative complaint, the plaintiff in the Viskovich matter made a demand that the Company's Board of Directors pursue the claims asserted in the complaint but filed suit before the Board had responded to the demand. Following an investigation, a majority of disinterested and independent directors of the Company determined that the claims asserted in the demand by the plaintiff in the Viskovich action should not be pursued by the Company and informed the plaintiff of that determination. The complaints in the Olin, Smith, and Viskovich cases name Mr. Plank, certain other current and former members of the Company's Board of Directors, and certain current and former Company executives as defendants, and name the Company as a nominal defendant. The complaints in these actions assert allegations similar to those in the TAC filed in the Consolidated Securities Action matter discussed above, including allegations challenging (i) the Company's disclosures related to growth and consumer demand for certain of the Company's products; (ii) the Company's practice of shifting sales between quarterly periods supposedly to appear healthier and its purported failure to disclose that practice; (iii) the Company's internal controls with respect to revenue recognition and inventory management; (iv) the Company's supposed failure to timely disclose investigations by the SEC and DOJ; and/or (v) the compensation paid to the Company's directors and executives while the alleged wrongdoing was occurring. The complaints assert breach of fiduciary duty, unjust enrichment, gross mismanagement, and/or corporate waste claims against the individual defendants. The Viskovich complaint also asserts a contribution claim against certain defendants under the federal securities laws. These complaints seek damages on behalf of the Company and certain corporate governance related actions. On January 27, 2021, the court entered an order consolidating for all purposes the Andersen, Olin, Smith and Viskovich actions into a single action under the caption Andersen v. Plank, et al. (the "Federal Court Derivative Action"). In February 2021, counsel for the Smith and Olin plaintiffs, on the one hand, and counsel for the Andersen and Viskovich plaintiffs, on the other hand, filed motions seeking to be appointed as lead counsel in the Federal Court Derivative Action. These motions are currently pending. The Company believes that the claims asserted in the Federal Court Derivative Action are without merit and intends to defend this matter 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS' EQUITY The Company's Class A Common Stock and Class B Convertible Common Stock have an authorized number of 400.0 million shares and 34.45 million shares, respectively, and each have a par value of $0.0003 1/3 per share as of March 31, 2022. Holders of Class A Common Stock and Class B Convertible Common Stock have identical rights, including liquidation preferences, except that the holders of Class A Common Stock are entitled to one vote per share and holders of Class B Convertible Common Stock are entitled to 10 votes per share on all matters submitted to a stockholder vote. Class B Convertible Common Stock may only be held by Kevin Plank, the Company's founder, Executive Chairman and Brand Chief, or a related party of Mr. Plank, as defined in the Company's charter. As a result, Mr. Plank has a majority voting control over the Company. Upon the transfer of shares of Class B Convertible Stock to a person other than Mr. Plank or a related party of Mr. Plank, the shares automatically convert into shares of Class A Common Stock on a one-for-one basis. In addition, all of the outstanding shares of Class B Convertible Common Stock will automatically convert into shares of Class A Common Stock on a one-for-one basis upon the death or disability of Mr. Plank or on the record date for any stockholders' meeting upon which the shares of Class A Common Stock and Class B Convertible Common Stock beneficially owned by Mr. Plank is less than 15% of the total shares of Class A Common Stock and Class B Convertible Common Stock outstanding or upon the other events specified in the Class C Articles Supplementary to the Company's charter as documented below. Holders of the Company's common stock are entitled to receive dividends when and if authorized and declared out of assets legally available for the payment of dividends. The Company's Class C Common Stock has an authorized number of of 400.0 million shares and have a par value of $0.0003 1/3 per share as of March 31, 2022. The terms of the Class C Common Stock are substantially identical to those of the Company's Class A Common Stock, except that the Class C Common Stock has no voting rights (except in limited circumstances), will automatically convert into Class A Common Stock under certain circumstances and includes provisions intended to ensure equal treatment of Class C Common Stock and Class B Common Stock in certain corporate transactions, such as mergers, consolidations, statutory share exchanges, conversions or negotiated tender offers, and including consideration incidental to these transactions. Share Repurchase Program On February 23, 2022, the Company's Board of Directors authorized the Company to repurchase up to $500 million (exclusive of fees and commissions) of outstanding shares of the Company's Class C Common Stock over the next two years. The Class C Common Stock may be repurchased from time to time at prevailing prices in the open market, through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, via private purchases through forward, derivative, accelerated share repurchase transactions or otherwise, subject to applicable regulatory restrictions on volume, pricing and timing. The timing and amount of any repurchases will depend on market conditions, the Company's financial condition, results of operations, liquidity and other factors. On February 24, 2022, the Company entered into master confirmations, including supplemental confirmations (collectively, the "ASR Agreements"), of accelerated share repurchase transactions with each of JPMorgan Chase Bank, National Association, Bank of America, N.A. and Citibank, N.A. (collectively the "Dealers") to repurchase $300 million of the Company's Class C Common Stock. Under the ASR agreements, the Company pre-paid $300.0 million to the Dealers and received an aggregate initial delivery of approximately 16.2 million shares of Class C Common Stock from the Dealers, which were immediately retired. As a result, $240.0 million was recorded to retained earnings to reflect the difference between the market price of the Class C Common Stock repurchased and its par value. The final number of shares that the Company ultimately repurchased under the ASR Agreements was determined based on the average of the Rule 10b-18 volume-weighted average prices of the Company’s Class C Common Stock during the terms of the transactions, less an agreed discount, and subject to adjustments pursuant to the terms of the ASR Agreements. Subsequent to the quarter end, the final settlement under the ASR |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES For a discussion of disaggregated revenue, refer to Note 19. The Company records reductions to revenue for estimated customer returns, allowances, markdowns and discounts. These reserves are included within customer refund liability and the value of the inventory associated with reserves for sales returns are included within prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. The following table presents the customer refund liability, as well as the associated value of inventory for the periods indicated: Balance as of Balance as of Balance as of Customer refund liability $ 159,628 $ 164,294 $ 191,979 Inventory associated with the reserves $ 44,291 $ 47,569 $ 54,540 Contract Liabilities Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer, and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's contract liabilities primarily consist of payments received in advance of revenue recognition for subscriptions for the Company's digital fitness applications and royalty arrangements, included in other current and other long-term liabilities, and gift cards, included in accrued expenses on the Company's Condensed Consolidated Balance Sheets. As of March 31, 2022, December 31, 2021 and March 31, 2021, contract liabilities were $35.3 million, $39.1 million and $25.5 million, respectively. During the three months ended March 31, 2022, the Company recognized approximately |
Restructuring and Related Impai
Restructuring and Related Impairment Charges | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND RELATED IMPAIRMENT CHARGES | RESTRUCTURING AND RELATED IMPAIRMENT CHARGES During Fiscal 2020, the Company's Board of Directors approved a restructuring plan ranging between $550 million to $600 million in costs (the "2020 restructuring plan") designed to rebalance the Company's cost base to further improve profitability and cash flow generation. Restructuring and related impairment charges and recoveries require the Company to make certain judgments and estimates regarding the amount and timing as to when these charges or recoveries occur. The estimated liability could change subsequent to its recognition, requiring adjustments to the expense and the liability recorded. On a quarterly basis, the Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate, as new or updated information becomes available. During the three months ended March 31, 2022, the Company recorded $56.7 million of restructuring and related impairment charges (three months ended March 31, 2021: $7.1 million), including $57.5 million relating to contract exit costs, as a result of settlement negotiations made subsequent to the quarter end. Since the inception of the 2020 restructuring plan, $570.5 million of restructuring and related impairment charges have been recorded to date. The Company does not expect to incur any further charges under the 2020 restructuring plan, and considers the plan concluded. All restructuring and related impairment charges are included in the Company's Corporate Other segment. A summary of the activity in the restructuring reserve related to the Company's 2020 restructuring plan, as well as prior restructuring plans in 2018 and 2017 are as follows: Employee Related Costs Contract Exit Costs Other Restructuring Related Costs Balance at January 1, 2022 $ 3,548 $ 31,405 $ (1,354) Net additions (recoveries) charged to expense (10) 58,555 (1,871) Cash payments charged against reserve (955) (9,280) — Foreign exchange and other 89 (2,443) 3,225 Balance at March 31, 2022 $ 2,672 $ 78,237 $ — |
Other Employee Benefits
Other Employee Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
OTHER EMPLOYEE BENEFITS | OTHER EMPLOYEE BENEFITS The Company offers a 401(k) Deferred Compensation Plan for the benefit of eligible employees. Employee contributions are voluntary and subject to Internal Revenue Service limitations. The Company matches a portion of the participant's contribution and recorded expense of $6.1 million and $2.3 million for the three months ended March 31, 2022 and 2021, respectively. In addition, the Company offers the Under Armour, Inc. Deferred Compensation Plan which allows a select group of management or highly compensated employees, as approved by the Compensation Committee, to make an annual base salary and/or bonus deferral for each year. As of March 31, 2022, December 31, 2021 and March 31, 2021, the Deferred Compensation Plan obligations were $14.2 million, $14.5 million and $14.6 million, respectively, and were included in other long term liabilities on the Condensed Consolidated Balance Sheets. The Company established a Rabbi Trust to fund obligations to participants in the Deferred Compensation Plan. As of March 31, 2022, December 31, 2021 and March 31, 2021, the assets held in the Rabbi Trust were TOLI policies with cash-surrender values of $8.4 million, $9.0 million and $8.0 million, respectively. These assets are consolidated and are included in other long term assets on the Condensed Consolidated Balance Sheets. Refer to Note 15 for a discussion of the fair value measurements of the assets held in the Rabbi Trust and the Deferred Compensation Plan obligations. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION The Under Armour, Inc. Third Amended and Restated 2005 Omnibus Long-Term Incentive Plan as amended (the "2005 Plan") provides for the issuance of stock options, restricted stock, restricted stock units and other equity awards to officers, directors, key employees and other persons. The 2005 Plan terminates in 2025. As of March 31, 2022, 8.3 million Class A shares and 25.7 million Class C shares are available for future grants of awards under the 2005 Plan. Awards Granted to Employees and Non-Employee Directors Total stock-based compensation expense associated with awards granted to employees and non-employee directors for the three months ended March 31, 2022 and 2021 was $11.8 million and $10.4 million, respectively. As of March 31, 2022, the Company had $108.4 million of unrecognized compensation expense related to these awards expected to be recognized over a weighted average period of 2.63 years. Refer to "Stock Options" and "Restricted Stock and Restricted Stock Unit Awards" below for further information on these awards. A summary of each of these plans is as follows: Employee Stock Compensation Plan Stock options, restricted stock and restricted stock unit awards under the 2005 Plan generally vest ratably over a two Non-Employee Director Compensation Plan The Company's Non-Employee Director Compensation Plan (the "Director Compensation Plan") provides for cash compensation and equity awards to non-employee directors of the Company under the 2005 Plan. Non-employee directors have the option to defer the value of their annual cash retainers as deferred stock units in accordance with the Under Armour, Inc. Non-Employee Deferred Stock Unit Plan (the "DSU Plan"). Each new non- employee director receives an award of restricted stock units upon the initial election to the Board of Directors, with the units covering stock valued at $100 thousand on the grant date and vesting in three equal annual installments. In addition, each non-employee director receives, following each annual stockholders' meeting, a grant under the 2005 Plan of restricted stock units covering stock valued at $150 thousand on the grant date. Each award vests 100% on the date of the next annual stockholders' meeting following the grant date. The receipt of the shares otherwise deliverable upon vesting of the restricted stock units automatically defers into deferred stock units under the DSU Plan. Under the DSU Plan each deferred stock unit represents the Company’s obligation to issue one share of the Company's Class A or Class C Common Stock with the shares delivered six months following the termination of the director's service. The Company had 0.7 million deferred stock units outstanding as of March 31, 2022. Employee Stock Purchase Plan The Company's Employee Stock Purchase Plan (the "ESPP") allows for the purchase of Class A Common Stock and Class C Common Stock by all eligible employees at a 15% discount from fair market value subject to certain limits as defined in the ESPP. As of March 31, 2022, 2.7 million Class A shares and 1.7 million Class C shares are available for future purchases under the ESPP. During the three months ended March 31, 2022 and 2021, 69.8 thousand and 59.0 thousand Class C shares were purchased under the ESPP, respectively . Awards granted to Marketing Partners In addition to the plans discussed above, the Company may also, from time to time, issue deferred stock units or restricted stock units to certain of our marketing partners in connection with their entering into endorsement and other marketing services agreements with us. The terms of each agreement set forth the number of units to be granted and the delivery dates for the shares, which range over a multi-year period, depending on the contract. Total stock-based compensation expense related to these awards for the three months ended March 31, 2022 and 2021 was $0.8 million and $0.9 million, respectively. As of March 31, 2022, we had $7.7 million of unrecognized compensation expense associated with these awards expected to be recognized over a weighted average period of 2.51 years. Summary by Award Classification: Stock Options No stock options were granted during the three months ended March 31, 2022 and 2021. A summary of the Company's stock options activity for the three months ended March 31, 2022 is presented below: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at December 31,2021 1,578 $ 19.44 6.07 $ 2,403 Granted, at fair market value — — Exercised — — Forfeited — — Outstanding at March 31, 2022 1,578 $ 19.44 5.82 $ 217 Options exercisable at March 31, 2022 1,369 $ 19.92 5.56 $ 152 Restricted Stock and Restricted Stock Unit Awards A summary of the Company's restricted stock and restricted stock unit awards activity for the three months ended March 31, 2022 is presented below: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 7,033 $ 16.40 Granted 3,302 14.47 Forfeited (346) 16.99 Vested (2,182) 17.05 Outstanding at March 31, 2022 7,807 $ 16.57 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
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. The Company's financial assets (liabilities) measured at fair value on a recurring basis consisted of the following types of instruments as of the following periods: March 31, 2022 December 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative foreign currency contracts (see Note 16) $ — $ 988 $ — $ — $ 631 $ — $ — $ (13,173) $ — TOLI policies held by the Rabbi Trust (see Note 13) $ — $ 8,379 $ — $ — $ 9,008 $ — $ — $ 8,001 $ — Deferred Compensation Plan obligations (see Note 13) $ — $ (14,230) $ — $ — $ (14,489) $ — $ — $ (14,641) $ — 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 unrealized 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 fair value of the trust owned life insurance ("TOLI") policies held by the Rabbi Trust are 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 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). As of March 31, 2022, December 31, 2021 and March 31, 2021 the fair value of the Convertible Senior Notes was $126.6 million, $149.6 million and $982.9 million, respectively. The Company entered into exchange agreements with certain holders during Fiscal 2021 to exchange approximately $419.0 million in aggregate principal amount of the Convertible Senior Notes for a combination of cash and shares (see Note 8 to the Condensed Consolidated Financial Statements). As of March 31, 2022, December 31, 2021 and March 31, 2021 the fair value of the Senior Notes was $580.0 million, $619.9 million and $602.2 million, respectively. |
Risk Management and Derivatives
Risk Management and Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
RISK MANAGEMENT AND DERIVATIVES | RISK MANAGEMENT AND DERIVATIVES The Company is exposed to global market risks, including the effects of changes in foreign currency and interest rates. The Company uses derivative instruments to manage financial exposures that occur in the normal course of business and does not hold or issue derivatives for trading or speculative purposes. The Company may elect to designate certain derivatives as hedging instruments under U.S. GAAP. The Company formally documents all relationships between designated hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to forecasted cash flows and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships. The Company's foreign exchange risk management program consists of designated cash flow hedges and undesignated hedges. As of March 31, 2022, the Company has hedge instruments primarily for: • British Pound/U.S. Dollar; • U.S. Dollar/Chinese Renminbi; • Euro/U.S. Dollar; • U.S. Dollar/Canadian Dollar; • U.S. Dollar/Mexican Peso; and • U.S. Dollar/Korean Won. All derivatives are recognized on the Condensed Consolidated Balance Sheets at fair value and classified based on the instrument's maturity date. The following table presents the fair values of derivative instruments within the Condensed Consolidated Balance Sheets. Refer to Note 15 of the Condensed Consolidated Financial Statements for a discussion of the fair value measurements. Balance Sheet Classification March 31, 2022 December 31, 2021 March 31, 2021 Derivatives designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 11,561 $ 7,488 $ 1,759 Foreign currency contracts Other long term assets 2,730 2,887 727 Total derivative assets designated as hedging instruments $ 14,291 $ 10,375 $ 2,486 Foreign currency contracts Other current liabilities $ 11,209 $ 8,663 $ 13,021 Foreign currency contracts Other long term liabilities 3,645 779 3,331 Total derivative liabilities designated as hedging instruments $ 14,854 $ 9,442 $ 16,352 Derivatives not designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 4,412 $ 1,999 $ 5,114 Total derivative assets not designated as hedging instruments $ 4,412 $ 1,999 $ 5,114 Foreign currency contracts Other current liabilities $ 1,213 $ 4,648 $ 1,087 Total derivative liabilities not designated as hedging instruments $ 1,213 $ 4,648 $ 1,087 The following table presents the amounts in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items: Three months ended March 31, 2022 2021 Total Amount of Gain (Loss) on Cash Flow Hedge Activity Total Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 1,300,945 $ 2,049 $1,257,195 $ (3,147) Cost of goods sold $ 695,781 $ (2,903) $ 628,554 $ (2,218) Interest income (expense), net $ (6,154) $ (9) $ (14,137) $ (9) Other income (expense), net $ (51) $ — $ (7,180) $ — The following tables present the amounts affecting the Condensed Consolidated Statements of Comprehensive Income (Loss): Balance as of Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives Amount of gain (loss) reclassified from other comprehensive income (loss) into income Balance as of March 31, 2022 Derivatives designated as cash flow hedges Foreign currency contracts $ (1,617) $ 804 $ (854) $ 41 Interest rate swaps (504) — (9) (495) Total designated as cash flow hedges $ (2,121) $ 804 $ (863) $ (454) Balance as of Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives Amount of gain (loss) reclassified from other comprehensive income (loss) into income Balance as of Derivatives designated as cash flow hedges Foreign currency contracts $ (25,908) $ 4,656 $ (5,365) $ (15,886) Interest rate swaps (541) — (9) (531) Total designated as cash flow hedges $ (26,449) $ 4,656 $ (5,374) $ (16,417) The following table presents the amounts in the Consolidated Statements of Operations in which the effects of undesignated derivative instruments are recorded and the effects of fair value hedge activity on these line items: Three months ended March 31, 2022 2021 Total Amount of Gain (Loss) on Fair Value Hedge Activity Total Amount of Gain (Loss) on Fair Value Hedge Activity Other income (expense), net $ (51) $ 4,481 $ (7,180) $ (2,737) Cash Flow Hedges 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 driven by non-functional currency generated revenue, non-functional currency inventory purchases, investments in U.S. Dollar denominated available-for-sale debt securities, and certain other intercompany transactions. The Company enters into foreign currency contracts to reduce the risk associated with the foreign currency exchange rate fluctuations on these transactions. Certain contracts are designated as cash flow hedges. As of March 31, 2022, December 31, 2021 and March 31, 2021 the aggregate notional value of the Company's outstanding cash flow hedges was $1,096.5 million, $556.5 million and $688.9 million, respectively, with contract maturities ranging from one The Company may enter 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 interest rate swap contracts are accounted for as cash flow hedges. Refer to Note 8 of the Condensed Consolidated Financial Statements for a discussion of long term debt. For contracts designated as cash flow hedges, the changes in fair value are reported as other comprehensive income (loss) and are recognized in current earnings in the period or periods during which the hedged transaction affects current earnings. Effective hedge results are classified in the Condensed Consolidated Statements of Operations in the same manner as the underlying exposure. During the three months ended March 31, 2022, the Company voluntarily unwound and de-designated certain derivative instruments previously designated as cash flow hedges. The pre-tax gain of $2.2 million which had been recorded in other comprehensive income prior to the de-designation of the derivative instruments, will remain in other comprehensive income and will be recognized in earnings in the period in which the underlying transactions affect earnings. Undesignated Derivative Instruments The Company has entered into foreign exchange forward contracts to mitigate the change in fair value of specific assets and liabilities on the Condensed Consolidated Balance Sheets. Undesignated instruments are recorded at fair value as a derivative asset or liability on the Condensed Consolidated Balance Sheets with their corresponding change in fair value recognized in other expense, net, together with the re-measurement gain or loss from the hedged balance sheet position. As of March 31, 2022, December 31, 2021 and March 31, 2021 the total notional value of the Company's outstanding undesignated derivative instruments was $228.4 million, $258.2 million and $317.7 million, respectively. Credit Risk 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 | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES Due to the change in fiscal year end, the Company has computed income taxes for the three months ended March 31, 2022 using actual tax rates for the period. The provision for income taxes for the three months ended March 31, 2021 was computed under the effective tax rate method by applying an estimated annual effective rate applicable for the fiscal year ended December 31, 2021 to the year-to-date earnings. Losses from jurisdictions for which no benefit could be recognized were excluded from the overall computations of the estimated annual effective tax rate and a separate estimated annual effective tax rate was computed and applied to ordinary income or loss in the loss jurisdiction. For the period ended March 31, 2021, the United States and certain other foreign jurisdictions, primarily in Latin America, were considered loss jurisdictions. These jurisdictions were treated discretely and were excluded from the annual effective tax rate computation for purposes of computing the interim tax provision and a separate annual effective rate was computed for each of these jurisdictions and applied against their respective year-to-date ordinary income or loss. The effective rates for income taxes were (15.7)% and 11.5% for the three months ended March 31, 2022 and 2021, respectively. The change in the Company’s effective tax rate was primarily driven by the recording of valuation allowances against current losses incurred in the United States and China for the three months ended March 31, 2022 and the proportion of earnings subject to tax in the United States as compared to foreign jurisdictions in each period. Valuation Allowance The Company evaluates on a quarterly basis whether the deferred tax assets are realizable which requires significant judgment. The Company considers all available positive and negative evidence, including historical operating performance and expectations of future operating performance. To the extent the Company believes it is more likely than not that all or some portion of the asset will not be realized, valuation allowances are established against the Company's deferred tax assets, which increase income tax expense in the period when such a determination is made. As noted in the Company's Annual Report on Form 10-K for Fiscal 2021, a significant portion of the Company’s deferred tax assets relate to United States federal and state taxing jurisdictions. Realization of these deferred tax assets is dependent on future United States pre-tax earnings. As of March 31, 2022 the Company continues to believe that the weight of the negative evidence outweighs the positive evidence regarding the realization of the Company’s United States federal and the majority of the United States state deferred tax assets. Accordingly, the Company continues to maintain valuation allowances on these deferred tax assets. Furthermore, consistent with prior periods, valuation allowances have also been recorded against select foreign deferred tax assets in jurisdictions where the weight of negative evidence outweighs the positive evidence regarding the realization of deferred tax assets. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. The Company's current forecasts for the United States indicate that it is probable that additional deferred taxes could be realizable during the next 12 months based on near term trend towards three-year cumulative taxable earnings. The actualization of these forecasted results may potentially outweigh the negative evidence, resulting in a reversal of all or a portion of previously recorded valuation allowances in the United States. The release of valuation allowances would result in a benefit to income tax expense in the period the release is recorded, which could have a material impact on net income. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective pre-tax earnings in the United States. The Company will continue to evaluate its ability to realize its net deferred tax assets on a quarterly basis. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following represents a reconciliation from basic income (loss) per share to diluted income (loss) per share: Three Months Ended March 31, 2022 2021 (1) Numerator Net income (loss) - Basic $ (59,610) $ 77,752 Interest on Convertible Senior Notes due 2024, net of tax (2) — — Net Income (loss) - Diluted $ (59,610) $ 77,752 Denominator Weighted average common shares outstanding Class A, B and C - Basic 471,425 456,014 Dilutive effect of Class A, B, and C securities (2) — 3,212 Dilutive effect of Convertible Senior Notes due 2024 (2) — — Weighted average common shares and dilutive securities outstanding Class A, B, and C 471,425 459,226 Basic net income (loss) per share of Class A, B and C common stock $ (0.13) $ 0.17 Diluted net income (loss) per share of Class A, B and C common stock $ (0.13) $ 0.17 (1) The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective transition approach. As a result, prior period comparatives have not been restated to conform to current period presentation. (2) Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Due to the Company being in a net loss position for the three months ended March 31, 2022, there were no stock options, restricted stock units, or effects from the Convertible Notes due 2024 included in the computation of diluted earnings per share, as their effect would have been anti-dilutive. Stock options and restricted stock units representing 4.3 million shares of Class A and Class C Common Stock outstanding for the three months ended March 31, 2021 were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. |
Segment Data and Disaggregated
Segment Data and Disaggregated Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT DATA AND DISAGGREGATED REVENUE | SEGMENT DATA AND DISAGGREGATED REVENUE 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 of being a global brand. These geographic regions include North America, Europe, the Middle East and Africa ("EMEA"), Asia-Pacific, and Latin America. Each geographic segment operates exclusively in one industry: the development, marketing and distribution of branded performance apparel, footwear and accessories. Total expenditures for additions to long-lived assets are not disclosed as this information is not regularly provided to the CODM. The Company excludes certain corporate costs from its segment profitability measures. The Company reports these costs within Corporate Other, along with the revenue and costs related to the Company's MapMyRun and MapMyRide platforms (collectively "MMR"), which is designed to provide increased transparency and comparability of the Company's operating segments' performance. Furthermore, the majority of the costs included within Corporate Other consist largely of general and administrative expenses not allocated to an operating segment, including expenses associated with centrally managed departments such as global marketing, global IT, global supply chain, innovation and other corporate support functions; costs related to the Company's global assets and global marketing; costs related to the Company's headquarters, such as restructuring and restructuring related charges; and certain foreign currency hedge gains and losses. The following tables summarize the Company's net revenues and operating income (loss) by its geographic segments. Intercompany balances were eliminated for separate disclosure: Three Months Ended March 31, 2022 2021 Net revenues North America $ 841,101 $ 805,727 EMEA 228,056 193,883 Asia-Pacific 181,908 210,220 Latin America 45,640 48,311 Corporate Other 4,240 (946) Total net revenues $ 1,300,945 $ 1,257,195 Three Months Ended March 31, 2022 2021 Operating income (loss) North America $ 154,084 $ 210,562 EMEA 30,336 26,686 Asia-Pacific 5,464 46,513 Latin America 6,343 1,457 Corporate Other (242,183) (178,328) Total operating income (loss) (45,956) 106,890 Interest expense, net (6,154) (14,137) Other income (expense), net (51) (7,180) Income (loss) before income taxes $ (52,161) $ 85,573 The following tables summarize the Company's net revenues by product category and distribution channels: Three Months Ended March 31, 2022 2021 Apparel $ 876,604 $ 810,041 Footwear 296,696 309,047 Accessories 96,803 117,396 Net Sales 1,270,103 1,236,484 License revenues 26,602 21,657 Corporate Other 4,240 (946) Total net revenues $ 1,300,945 $ 1,257,195 Three Months Ended March 31, 2022 2021 Wholesale $ 829,179 $ 799,587 Direct-to-consumer 440,924 436,897 Net Sales 1,270,103 1,236,484 License revenues 26,602 21,657 Corporate Other 4,240 (946) Total net revenues $ 1,300,945 $ 1,257,195 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements are presented in U.S. Dollars and include the accounts of Under Armour, Inc. and its wholly owned subsidiaries. Certain information in footnote disclosures normally included in annual financial statements were 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 ("U.S. GAAP") 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 upon consolidation. The unaudited Condensed Consolidated Balance Sheet as of March 31, 2022 is derived from the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 ("Fiscal 2021"), filed with the SEC on February 23, 2022 ("Annual Report on Form 10-K for Fiscal 2021"), which should be read in conjunction with these unaudited Condensed Consolidated Financial Statements. The unaudited results for the three months ended March 31, 2022, are not necessarily indicative of the results to be expected for the fiscal year beginning April 1, 2022 and ending March 31, 2023 ("Fiscal 2023"), or any other portions thereof. Fiscal Year End Change As previously disclosed, in the first quarter of Fiscal 2021, the Company's Board of Directors approved a change in the Company's fiscal year end from December 31 to March 31, effective for the fiscal year beginning April 1, 2022. As a result of the change in fiscal year end, this document reflects the Company's Transition Report on Form 10-Q for the period from January 1, 2022 through March 31, 2022. The Company's next fiscal year will run from April 1, 2022 through March 31, 2023 (Fiscal 2023). Consequently, there will be no Fiscal 2022. Due to the change in fiscal year end, the income tax provision for the three months ended March 31, 2022 was calculated using actual tax rates for the period. The provision for income taxes for the comparative three months ended March 31, 2021 was computed using the estimated effective tax rate applicable to Fiscal 2021. |
Management Estimates | Management Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. These estimates, judgments and assumptions are evaluated on an on-going basis. The Company bases its estimates on historical experience and on various other assumptions that it believes are reasonable at that time; however, actual results could differ from these estimates. The COVID-19 pandemic continues to significantly impact the global economy. As the impacts of major global events continue to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. The extent to which the evolving events impact the Company's financial statements will depend on a number of factors including, but not limited to, any new information that may emerge concerning the severity of these major events and the actions that governments around the world may take in response. While the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of this reporting date, the Company may experience further impacts based on long-term effects on the Company's customers and the countries in which the |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06 "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40)" ("ASU 2020-06"), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions; requires the application of the if-converted method for calculating diluted earnings per share; and requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity's financial statements, and information about events, conditions, and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. The Company adopted ASU 2020-06, effective January 1, 2022 using the modified retrospective transition approach. As a result of this adoption, the Company recorded a cumulative effect adjustment of $5.1 million to retained earnings. The adoption had no material impact on the Company's Condensed Consolidated Statement of Operations and related disclosures. |
Fair Value of Financial Instruments | 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. |
Allowance For Doubtful Accoun_2
Allowance For Doubtful Accounts (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Financing Receivable, Allowance for Credit Loss | The following table illustrates the activity in the Company's allowance for doubtful accounts: Allowance for doubtful accounts - within accounts receivable, net Allowance for doubtful accounts - within prepaid expenses and other current assets (1) Balance at December 31, 2021 $ 7,128 $ 7,029 Increases (decreases) to costs and expenses (36) — Write-offs, net of recoveries 21 — Balance at March 31, 2022 $ 7,113 $ 7,029 (1) Includes an allowance pertaining to a royalty receivable. |
Property And Equipment, Net (Ta
Property And Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following: As of March 31, 2022 As of December 31, 2021 Leasehold and tenant improvements $ 461,394 $ 462,588 Furniture, fixtures and displays 263,749 259,534 Buildings 48,382 48,382 Software 339,722 333,560 Office equipment 132,452 132,629 Plant equipment 178,188 178,187 Land 83,626 83,626 Construction in progress (1) 64,869 52,598 Other 5,751 5,545 Subtotal property and equipment 1,578,133 1,556,649 Accumulated depreciation (976,768) (949,423) Property and equipment, net $ 601,365 $ 607,226 (1) Construction in progress primarily includes costs incurred for software systems, leasehold improvements and in-store fixtures and displays not yet placed in use. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Costs | The following table illustrates operating and variable lease costs, included in selling, general and administrative expenses within the Company's Consolidated Statements of Operations, for the periods indicated: Three months ended March 31, 2022 2021 Operating lease costs $ 36,699 $ 34,935 Variable lease costs $ 3,759 $ 2,920 The weighted average remaining lease term and discount rate for the periods indicated below were as follows: As of March 31, 2022 As of December 31, 2021 As of March 31, 2021 Weighted average remaining lease term (in years) 8.69 8.73 9.05 Weighted average discount rate 3.72 % 3.72 % 3.82 % Supplemental Cash Flow Information The following table presents supplemental information relating to cash flow arising from lease transactions: Three months ended March 31, 2022 2021 Operating cash outflows from operating leases $ 43,903 $ 45,909 Leased assets obtained in exchange for new operating lease liabilities $ (892) $ 4,074 |
Schedule of Operating Lease Liability Maturity | The following table presents the future minimum lease payments under the Company's operating lease liabilities as of March 31, 2022: Fiscal year ending March 31, 2023 $ 165,333 2024 141,401 2025 119,869 2026 88,897 2027 70,360 2028 and thereafter 363,083 Total lease payments $ 948,943 Less: Interest 145,127 Total present value of lease liabilities $ 803,816 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in the carrying amount of the Company's goodwill by reportable segment as of the periods indicated: North America EMEA Asia-Pacific Latin America Total Balance as of December 31, 2021 301,371 107,741 86,103 — 495,215 Effect of currency translation adjustment — (2,688) (1,019) — (3,707) Impairment — — — — — Balance as of March 31, 2022 $ 301,371 $ 105,053 $ 85,084 $ — $ 491,508 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following tables summarize the Company's intangible assets as of the periods indicated: As of March 31, 2022 Useful Lives from Date of Acquisitions (in years) Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Technology 5-7 $ 2,536 $ (2,103) $ 433 Customer relationships 2-6 8,552 (2,893) 5,659 Lease-related intangible assets 1-15 9,112 (8,892) 220 Other 5-10 475 (427) 48 Total $ 20,675 $ (14,315) $ 6,360 Indefinite-lived intangible assets 4,220 Intangible assets, net $ 10,580 As of December 31, 2021 Useful Lives from Date of Acquisitions Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Technology 5-7 $ 2,536 $ (2,003) $ 533 Customer relationships 2-6 8,567 (2,552) 6,015 Lease-related intangible assets 1-15 8,852 (8,602) 250 Other 5-10 475 (415) 60 Total $ 20,430 $ (13,572) $ 6,858 Indefinite-lived intangible assets 4,152 Intangible assets, net $ 11,010 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following is the estimated amortization expense for the Company's intangible assets as of March 31, 2022: Fiscal year ending March 31, 2023 $ 1,994 2024 1,519 2025 1,479 2026 1,359 2027 9 2028 and thereafter — Total Amortization expense of intangible assets $ 6,360 |
Credit Facility and Other Lon_2
Credit Facility and Other Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Outstanding Debt | The Company's outstanding debt consisted of the following: As of As of As of 1.50% Convertible Senior Notes due 2024 $ 80,919 $ 80,919 $ 500,000 3.25% Senior Notes due 2026 600,000 600,000 600,000 Total principal payments due 680,919 680,919 1,100,000 Unamortized debt discount on Convertible Senior Notes (1) — (9,207) (73,821) Unamortized debt discount on Senior Notes (1,067) (1,131) (1,321) Unamortized debt issuance costs - Convertible Senior Notes (677) (779) (8,124) Unamortized debt issuance costs - Senior Notes (2,266) (2,401) (2,805) Unamortized debt issuance costs - Credit facility (4,623) (4,870) (3,978) Total amount outstanding 672,286 662,531 1,009,951 Less: Current portion of long-term debt: Credit Facility borrowings — — — Non-current portion of long-term debt $ 672,286 $ 662,531 $ 1,009,951 (1) The Company adopted ASU 2020-06, effective January 1, 2022 using the modified retrospective transition approach. As a result of this adoption, the Company derecognized the remaining unamortized debt discount on Convertible Senior Notes and recorded a cumulative effect adjustment to retained earnings. See Note 2 to the Condensed Consolidated Financial Statements for more details. |
Schedule of Maturities of Long-term Debt | The following are the scheduled maturities of long term debt as of March 31, 2022: Fiscal year ending March 31, 2023 $ — 2024 — 2025 80,919 2026 — 2027 600,000 2028 and thereafter Total scheduled maturities of long term debt $ 680,919 Current maturities of long term debt $ — |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Customer Refund Liability and Inventory Associated with the Reserves | The following table presents the customer refund liability, as well as the associated value of inventory for the periods indicated: Balance as of Balance as of Balance as of Customer refund liability $ 159,628 $ 164,294 $ 191,979 Inventory associated with the reserves $ 44,291 $ 47,569 $ 54,540 |
Restructuring and Related Imp_2
Restructuring and Related Impairment Charges (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Activity in the Restructuring Reserve | A summary of the activity in the restructuring reserve related to the Company's 2020 restructuring plan, as well as prior restructuring plans in 2018 and 2017 are as follows: Employee Related Costs Contract Exit Costs Other Restructuring Related Costs Balance at January 1, 2022 $ 3,548 $ 31,405 $ (1,354) Net additions (recoveries) charged to expense (10) 58,555 (1,871) Cash payments charged against reserve (955) (9,280) — Foreign exchange and other 89 (2,443) 3,225 Balance at March 31, 2022 $ 2,672 $ 78,237 $ — |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Arrangement, Option, Activity | A summary of the Company's stock options activity for the three months ended March 31, 2022 is presented below: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at December 31,2021 1,578 $ 19.44 6.07 $ 2,403 Granted, at fair market value — — Exercised — — Forfeited — — Outstanding at March 31, 2022 1,578 $ 19.44 5.82 $ 217 Options exercisable at March 31, 2022 1,369 $ 19.92 5.56 $ 152 |
Schedule of Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | A summary of the Company's restricted stock and restricted stock unit awards activity for the three months ended March 31, 2022 is presented below: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 7,033 $ 16.40 Granted 3,302 14.47 Forfeited (346) 16.99 Vested (2,182) 17.05 Outstanding at March 31, 2022 7,807 $ 16.57 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and (Liabilities) Measured at Fair Value | The Company's financial assets (liabilities) measured at fair value on a recurring basis consisted of the following types of instruments as of the following periods: March 31, 2022 December 31, 2021 March 31, 2021 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative foreign currency contracts (see Note 16) $ — $ 988 $ — $ — $ 631 $ — $ — $ (13,173) $ — TOLI policies held by the Rabbi Trust (see Note 13) $ — $ 8,379 $ — $ — $ 9,008 $ — $ — $ 8,001 $ — Deferred Compensation Plan obligations (see Note 13) $ — $ (14,230) $ — $ — $ (14,489) $ — $ — $ (14,641) $ — |
Risk Management and Derivativ_2
Risk Management and Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Balance Sheet Location | The following table presents the fair values of derivative instruments within the Condensed Consolidated Balance Sheets. Refer to Note 15 of the Condensed Consolidated Financial Statements for a discussion of the fair value measurements. Balance Sheet Classification March 31, 2022 December 31, 2021 March 31, 2021 Derivatives designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 11,561 $ 7,488 $ 1,759 Foreign currency contracts Other long term assets 2,730 2,887 727 Total derivative assets designated as hedging instruments $ 14,291 $ 10,375 $ 2,486 Foreign currency contracts Other current liabilities $ 11,209 $ 8,663 $ 13,021 Foreign currency contracts Other long term liabilities 3,645 779 3,331 Total derivative liabilities designated as hedging instruments $ 14,854 $ 9,442 $ 16,352 Derivatives not designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 4,412 $ 1,999 $ 5,114 Total derivative assets not designated as hedging instruments $ 4,412 $ 1,999 $ 5,114 Foreign currency contracts Other current liabilities $ 1,213 $ 4,648 $ 1,087 Total derivative liabilities not designated as hedging instruments $ 1,213 $ 4,648 $ 1,087 |
Schedule of Effects of Cash Flow Hedges | The following table presents the amounts in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items: Three months ended March 31, 2022 2021 Total Amount of Gain (Loss) on Cash Flow Hedge Activity Total Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 1,300,945 $ 2,049 $1,257,195 $ (3,147) Cost of goods sold $ 695,781 $ (2,903) $ 628,554 $ (2,218) Interest income (expense), net $ (6,154) $ (9) $ (14,137) $ (9) Other income (expense), net $ (51) $ — $ (7,180) $ — |
Schedule of Cash Flows in AOCI | The following tables present the amounts affecting the Condensed Consolidated Statements of Comprehensive Income (Loss): Balance as of Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives Amount of gain (loss) reclassified from other comprehensive income (loss) into income Balance as of March 31, 2022 Derivatives designated as cash flow hedges Foreign currency contracts $ (1,617) $ 804 $ (854) $ 41 Interest rate swaps (504) — (9) (495) Total designated as cash flow hedges $ (2,121) $ 804 $ (863) $ (454) Balance as of Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives Amount of gain (loss) reclassified from other comprehensive income (loss) into income Balance as of Derivatives designated as cash flow hedges Foreign currency contracts $ (25,908) $ 4,656 $ (5,365) $ (15,886) Interest rate swaps (541) — (9) (531) Total designated as cash flow hedges $ (26,449) $ 4,656 $ (5,374) $ (16,417) |
Schedule of Fair Value Hedging Activity | The following table presents the amounts in the Consolidated Statements of Operations in which the effects of undesignated derivative instruments are recorded and the effects of fair value hedge activity on these line items: Three months ended March 31, 2022 2021 Total Amount of Gain (Loss) on Fair Value Hedge Activity Total Amount of Gain (Loss) on Fair Value Hedge Activity Other income (expense), net $ (51) $ 4,481 $ (7,180) $ (2,737) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic Earnings per Share to Diluted Earnings per Share | The following represents a reconciliation from basic income (loss) per share to diluted income (loss) per share: Three Months Ended March 31, 2022 2021 (1) Numerator Net income (loss) - Basic $ (59,610) $ 77,752 Interest on Convertible Senior Notes due 2024, net of tax (2) — — Net Income (loss) - Diluted $ (59,610) $ 77,752 Denominator Weighted average common shares outstanding Class A, B and C - Basic 471,425 456,014 Dilutive effect of Class A, B, and C securities (2) — 3,212 Dilutive effect of Convertible Senior Notes due 2024 (2) — — Weighted average common shares and dilutive securities outstanding Class A, B, and C 471,425 459,226 Basic net income (loss) per share of Class A, B and C common stock $ (0.13) $ 0.17 Diluted net income (loss) per share of Class A, B and C common stock $ (0.13) $ 0.17 (1) The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective transition approach. As a result, prior period comparatives have not been restated to conform to current period presentation. |
Segment Data and Disaggregate_2
Segment Data and Disaggregated Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following tables summarize the Company's net revenues and operating income (loss) by its geographic segments. Intercompany balances were eliminated for separate disclosure: Three Months Ended March 31, 2022 2021 Net revenues North America $ 841,101 $ 805,727 EMEA 228,056 193,883 Asia-Pacific 181,908 210,220 Latin America 45,640 48,311 Corporate Other 4,240 (946) Total net revenues $ 1,300,945 $ 1,257,195 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Three Months Ended March 31, 2022 2021 Operating income (loss) North America $ 154,084 $ 210,562 EMEA 30,336 26,686 Asia-Pacific 5,464 46,513 Latin America 6,343 1,457 Corporate Other (242,183) (178,328) Total operating income (loss) (45,956) 106,890 Interest expense, net (6,154) (14,137) Other income (expense), net (51) (7,180) Income (loss) before income taxes $ (52,161) $ 85,573 |
Net Revenues by Product Category | The following tables summarize the Company's net revenues by product category and distribution channels: Three Months Ended March 31, 2022 2021 Apparel $ 876,604 $ 810,041 Footwear 296,696 309,047 Accessories 96,803 117,396 Net Sales 1,270,103 1,236,484 License revenues 26,602 21,657 Corporate Other 4,240 (946) Total net revenues $ 1,300,945 $ 1,257,195 Three Months Ended March 31, 2022 2021 Wholesale $ 829,179 $ 799,587 Direct-to-consumer 440,924 436,897 Net Sales 1,270,103 1,236,484 License revenues 26,602 21,657 Corporate Other 4,240 (946) Total net revenues $ 1,300,945 $ 1,257,195 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Retained earnings | $ 721,926 | $ 1,027,833 | $ 747,231 | |
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Retained earnings | $ 5,100 |
Allowance For Doubtful Accoun_3
Allowance For Doubtful Accounts (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning Balance | $ 7,128 |
Increases (decreases) to costs and expenses | (36) |
Write-offs, net of recoveries | 21 |
Ending Balance | 7,113 |
Prepaid Expense and Other Current Assets, Allowance for Credit Loss [Roll Forward] | |
Beginning Balance | 7,029 |
Increases (decreases) to costs and expenses | 0 |
Write-offs, net of recoveries | 0 |
Ending Balance | $ 7,029 |
Property and Equipment, Net- Co
Property and Equipment, Net- Components Of Property And Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | $ 1,578,133 | $ 1,556,649 | |
Accumulated depreciation | (976,768) | (949,423) | |
Property and equipment, net | 601,365 | 607,226 | $ 632,307 |
Leasehold and tenant improvements | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 461,394 | 462,588 | |
Furniture, fixtures and displays | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 263,749 | 259,534 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 48,382 | 48,382 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 339,722 | 333,560 | |
Office equipment | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 132,452 | 132,629 | |
Plant equipment | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 178,188 | 178,187 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 83,626 | 83,626 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | 64,869 | 52,598 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal property and equipment | $ 5,751 | $ 5,545 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 34.5 | $ 33.9 |
Leases - Leases Costs (Details)
Leases - Leases Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 36,699 | $ 34,935 | |
Variable lease costs | $ 3,759 | $ 2,920 | |
Weighted average remaining lease term (in years) | 8 years 8 months 8 days | 9 years 18 days | 8 years 8 months 23 days |
Weighted average discount rate | 3.72% | 3.82% | 3.72% |
Operating cash outflows from operating leases | $ 43,903 | $ 45,909 | |
Leased assets obtained in exchange for new operating lease liabilities | (892) | $ 4,074 | |
Leases not yet commenced | $ 11,800 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2023 | $ 165,333 |
2024 | 141,401 |
2025 | 119,869 |
2026 | 88,897 |
2027 | 70,360 |
2028 and thereafter | 363,083 |
Total lease payments | 948,943 |
Less: Interest | 145,127 |
Total present value of lease liabilities | $ 803,816 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill (Details) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 495,215,000 | |
Effect of currency translation adjustment | (3,707,000) | |
Impairment | 0 | $ 0 |
Goodwill, Ending Balance | 491,508,000 | $ 497,970,000 |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 301,371,000 | |
Effect of currency translation adjustment | 0 | |
Impairment | 0 | |
Goodwill, Ending Balance | 301,371,000 | |
EMEA | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 107,741,000 | |
Effect of currency translation adjustment | (2,688,000) | |
Impairment | 0 | |
Goodwill, Ending Balance | 105,053,000 | |
Asia-Pacific | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 86,103,000 | |
Effect of currency translation adjustment | (1,019,000) | |
Impairment | 0 | |
Goodwill, Ending Balance | 85,084,000 | |
Latin America | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 0 | |
Effect of currency translation adjustment | 0 | |
Impairment | 0 | |
Goodwill, Ending Balance | $ 0 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary Of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 20,675 | $ 20,430 | |
Accumulated Amortization | (14,315) | (13,572) | |
Net Carrying Amount | 6,360 | 6,858 | |
Indefinite-lived intangible assets | 4,220 | 4,152 | |
Intangible assets, net | 10,580 | 11,010 | $ 12,548 |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 2,536 | 2,536 | |
Accumulated Amortization | (2,103) | (2,003) | |
Net Carrying Amount | 433 | 533 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 8,552 | 8,567 | |
Accumulated Amortization | (2,893) | (2,552) | |
Net Carrying Amount | 5,659 | 6,015 | |
Lease-related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 9,112 | 8,852 | |
Accumulated Amortization | (8,892) | (8,602) | |
Net Carrying Amount | 220 | 250 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 475 | 475 | |
Accumulated Amortization | (427) | (415) | |
Net Carrying Amount | $ 48 | $ 60 | |
Minimum | Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 5 years | 5 years | |
Minimum | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 2 years | 2 years | |
Minimum | Lease-related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 1 year | 1 year | |
Minimum | Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 5 years | 5 years | |
Maximum | Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 7 years | 7 years | |
Maximum | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 6 years | 6 years | |
Maximum | Lease-related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 15 years | 15 years | |
Maximum | Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Lives from Date of Acquisitions (in years) | 10 years | 10 years |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 0.5 | $ 0.5 |
Intangible Assets, Net - Estima
Intangible Assets, Net - Estimated Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 1,994 |
2024 | 1,519 |
2025 | 1,479 |
2026 | 1,359 |
2027 | 9 |
2028 and thereafter | 0 |
Total Amortization expense of intangible assets | $ 6,360 |
Credit Facility and Other Lon_3
Credit Facility and Other Long Term Debt - Components of Convertible Senior Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | May 31, 2020 | Dec. 31, 2016 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||||||
Total principal payments due | $ 680,919 | $ 680,919 | $ 1,100,000 | |||
Total amount outstanding | 672,286 | 662,531 | 1,009,951 | |||
Credit Facility borrowings | 0 | 0 | 0 | |||
Non-current portion of long-term debt | 672,286 | 662,531 | 1,009,951 | |||
Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs - Credit facility | $ (4,623) | (4,870) | (3,978) | |||
1.50% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate, percentage | 1.50% | 1.50% | ||||
1.50% Convertible Senior Notes | Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total principal payments due | $ 80,919 | 80,919 | 500,000 | |||
Unamortized debt discount | 0 | (9,207) | (73,821) | |||
Unamortized debt issuance costs - Credit facility | $ (677) | (779) | (8,124) | |||
Stated interest rate, percentage | 1.50% | |||||
3.25% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total principal payments due | $ 600,000 | 600,000 | 600,000 | |||
Unamortized debt discount | (1,067) | (1,131) | (1,321) | |||
Unamortized debt issuance costs - Credit facility | $ (2,266) | $ (2,401) | $ (2,805) | $ (5,400) | ||
Stated interest rate, percentage | 3.25% | 3.25% |
Credit Facility and Other Lon_4
Credit Facility and Other Long Term Debt - Credit Facility (Details) | 1 Months Ended | 3 Months Ended | ||
May 31, 2021 | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
Outstanding under credit facility | $ 680,919,000 | $ 680,919,000 | $ 1,100,000,000 | |
LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.00% | |||
LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.75% | |||
Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.00% | |||
Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.75% | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 50,000,000 | |||
Letters of credit outstanding | 4,500,000 | 4,300,000 | ||
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 300,000,000 | |||
Credit Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 1,100,000,000 | |||
Outstanding under credit facility | $ 0 | $ 0 | $ 0 | |
Covenant, consolidated EBITDA to consolidated interest expense ratio, greater than or equal | 3.50 | |||
Debt, leverage covenant, consolidated total indebtedness to consolidated EBITDA ratio less than or equal | 3.25 | |||
Commitment fee percentage | 0.15% |
Credit Facility and Other Lon_5
Credit Facility and Other Long Term Debt - Senior Notes, Capped Call Transaction and Interest Expense (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | ||||||||
Aug. 31, 2021USD ($)shares | May 31, 2021USD ($)shares | May 31, 2020USD ($)d$ / shares | Mar. 31, 2022USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Repayment of credit facility | $ 439,900,000 | |||||||||
Proceeds from option contract termination | $ 38,600,000 | $ 53,000,000 | ||||||||
1.50% Convertible Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate, percentage | 1.50% | 1.50% | ||||||||
Aggregate principal | $ 500,000,000 | $ 80,900,000 | ||||||||
Proceeds from debt offering | 488,800,000 | |||||||||
Payment of cap call transaction | $ 47,900,000 | |||||||||
Convertible notes exchanged | 169,100,000 | 250,000,000 | $ 419,000,000 | |||||||
Repayments of convertible notes | $ 207,000,000 | $ 300,000,000 | ||||||||
Loss on conversion of notes | $ 23,800,000 | $ 34,700,000 | ||||||||
Initial conversion rate | 0.1018589 | |||||||||
Debt conversion price (in usd per share) | $ / shares | $ 9.82 | |||||||||
Trading days (whether or not consecutive) | d | 20 | |||||||||
Consecutive trading days | d | 30 | |||||||||
Percentage of stock price | 130.00% | |||||||||
Business period | 5 days | |||||||||
Measurement period | 5 days | |||||||||
Measurement period, percentage | 98.00% | |||||||||
Redemption price, percentage of principal repurchased | 100.00% | |||||||||
Cap call transaction cap price per share (in usd per share) | $ / shares | $ 13.4750 | |||||||||
Premium over last reported sale price, percentage | 75.00% | |||||||||
1.50% Convertible Senior Notes | Class C Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stock issued in exchange of convertible notes (shares) | shares | 7.7 | 11.1 | ||||||||
3.25% Senior Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate, percentage | 3.25% | 3.25% | ||||||||
Aggregate principal | $ 600,000,000 | |||||||||
Deferred financing costs | $ 2,266,000 | $ 2,401,000 | $ 2,805,000 | $ 5,400,000 |
Credit Facility and Other Lon_6
Credit Facility and Other Long Term Debt - Interest Expense Related to Convertible Senior Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Interest income (expense), net | $ (6,154) | $ (14,137) |
Credit Facility and Other Lon_7
Credit Facility and Other Long Term Debt - Scheduled Maturities Of Long Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Disclosure [Abstract] | |||
2023 | $ 0 | ||
2024 | 0 | ||
2025 | 80,919 | ||
2026 | 0 | ||
2027 | 600,000 | ||
2028 and thereafter | |||
Total amount outstanding | 680,919 | $ 680,919 | $ 1,100,000 |
Current maturities of long term debt | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020case | Dec. 17, 2019plaintiff | Jun. 30, 2016USD ($) | Oct. 21, 2020case | Jul. 31, 2018case | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2021USD ($) | Mar. 23, 2017case | |
Loss Contingencies [Line Items] | ||||||||||
Investment in parcels | $ 601,365 | $ 632,307 | $ 607,226 | |||||||
Purchases of land | $ 39,923 | $ 8,465 | ||||||||
Land | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Purchases of land | $ 70,300 | |||||||||
Land | Sagamore | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Investment in parcels | $ 72,000 | |||||||||
Purchases of land | 35,000 | |||||||||
Payment for lease termination | 30,600 | |||||||||
Development costs | $ 6,400 | |||||||||
Under Armour Securities Litigation, Case No. 17-cv-00388-RDB | Pending Litigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Pending claims | case | 3 | |||||||||
Securities Class Actions | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of plaintiffs | plaintiff | 2 | |||||||||
Derivative Complaints | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of complaints | case | 2 | 2 | 2 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | May 09, 2022shares | Feb. 24, 2022USD ($)shares | Mar. 31, 2022USD ($)vote$ / sharesshares | Mar. 31, 2021USD ($)$ / sharesshares | Feb. 23, 2022USD ($) | Dec. 31, 2021$ / sharesshares |
Class of Stock [Line Items] | ||||||
ASR agreement, amount prepaid to dealers | $ | $ 300,000,000 | $ 300,000,000 | $ 0 | |||
Stock repurchased and retired during period, value | $ | 300,000,000 | |||||
Class C Common Stock Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ | 300,000,000 | $ 500,000,000 | ||||
Retained Earnings | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased and retired during period, value | $ | $ 240,000,000 | $ 239,995,000 | ||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | |||
Commons stock, par value (USD per share) | $ / shares | $ 0.0003 | $ 0.0003 | $ 0.0003 | |||
Number of votes per share | vote | 1 | |||||
Class B Convertible Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 34,450,000 | 34,450,000 | 34,450,000 | |||
Commons stock, par value (USD per share) | $ / shares | $ 0.0003 | $ 0.0003 | $ 0.0003 | |||
Number of votes per share | vote | 10 | |||||
Class A Common Stock And Class B Convertible Common Stock | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Beneficial ownership percentage of CEO | 15.00% | |||||
Common Class C | ||||||
Class of Stock [Line Items] | ||||||
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | |||
Commons stock, par value (USD per share) | $ / shares | $ 0.0003 | $ 0.0003 | $ 0.0003 | |||
Stock repurchased and retired during period, shares | 16,200,000 | |||||
Common Class C | Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased and retired during period, shares | 4,100,000 |
Revenues - Customer Refund Liab
Revenues - Customer Refund Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Customer refund liability | |||
Disaggregation of Revenue [Line Items] | |||
Reserves for customer returns allowances markdowns and discounts | $ 159,628 | $ 191,979 | $ 164,294 |
Inventory associated with the reserves | |||
Disaggregation of Revenue [Line Items] | |||
Reserves for customer returns allowances markdowns and discounts | $ 44,291 | $ 54,540 | $ 47,569 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liability | $ 35.3 | $ 25.5 | $ 39.1 |
Revenue recognized | $ 5 | $ 6 |
Restructuring and Related Imp_3
Restructuring and Related Impairment Charges - 2020 restructuring Plan (Details) - 2020 Restructuring Plan - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 56.7 | $ 7.1 | |
Restructuring and related impairment charges recorded to date | 570.5 | ||
Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring costs | $ 550 | ||
Maximum | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring costs | $ 600 | ||
Contract Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 57.5 |
Restructuring and Related Imp_4
Restructuring and Related Impairment Charges - Restructuring Reserve (Details) - Restructuring Plan, 2017 And 2018 $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Employee Related Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at January 1, 2022 | $ 3,548 |
Net additions (recoveries) charged to expense | (10) |
Cash payments charged against reserve | (955) |
Foreign exchange and other | 89 |
Balance at March 31, 2022 | 2,672 |
Contract Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at January 1, 2022 | 31,405 |
Net additions (recoveries) charged to expense | 58,555 |
Cash payments charged against reserve | (9,280) |
Foreign exchange and other | (2,443) |
Balance at March 31, 2022 | 78,237 |
Other Restructuring Related Costs | |
Restructuring Reserve [Roll Forward] | |
Balance at January 1, 2022 | (1,354) |
Net additions (recoveries) charged to expense | (1,871) |
Cash payments charged against reserve | 0 |
Foreign exchange and other | 3,225 |
Balance at March 31, 2022 | $ 0 |
Other Employee Benefits (Detail
Other Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
401(k) contribution matching expense | $ 6.1 | $ 2.3 | |
Deferred compensation plan obligations | 14.2 | 14.6 | $ 14.5 |
TOLI policies held by the Rabbi Trust (see Note 13) | $ 8.4 | $ 8 | $ 9 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Compensation Plans (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)installmentshares | Mar. 31, 2021USD ($)shares | Dec. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ | $ 11,764 | $ 10,372 | |
Unrecognized compensation costs | $ | $ 108,400 | ||
Unrecognized compensation costs, period for recognition | 2 years 7 months 17 days | ||
Number of equal annual vesting installments | installment | 3 | ||
Options outstanding, number of underlying shares (in shares) | 1,578,000 | 1,578,000 | |
Marketing Partner | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ | $ 7,700 | ||
Unrecognized compensation costs, period for recognition | 2 years 6 months 3 days | ||
Additional share based compensation | $ | $ 800 | $ 900 | |
Stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | ||
Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding, number of underlying shares (in shares) | 700,000 | ||
2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of stock awards | $ | $ 150 | ||
Vesting percentage | 100.00% | ||
2005 Plan | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 8,300,000 | ||
2005 Plan | Common Class C | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 25,700,000 | ||
Director Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of stock awards | $ | $ 100 | ||
Obligation to issue share (in shares) | 1 | ||
Period shares delivered following termination of director's service | 6 months | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ESPP discount rate from fair market value | 15.00% | ||
ESPP shares granted during period (in shares) | 69,800 | 59,000 | |
ESPP | Class A Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 2,700,000 | ||
ESPP | Common Class C | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 1,700,000 | ||
Minimum | 2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (over) | 2 years | ||
Maximum | 2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (over) | 5 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period (in dollars per share) | $ 0 | $ 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Number of Stock Options | ||
Outstanding, beginning of year (in shares) | 1,578,000 | |
Granted, at fair market value (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Outstanding, end of year (in shares) | 1,578,000 | 1,578,000 |
Options exercisable, end of year (in shares) | 1,369,000 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of year (in dollars per share) | $ 19.44 | |
Granted, at fair market value (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Outstanding, end of year (in dollars per share) | 19.44 | $ 19.44 |
Options exercisable, weighted average exercise price per share (in dollars per share) | $ 19.92 | |
Weighted average remaining contractual life (in years) | 5 years 9 months 25 days | 6 years 25 days |
Options exercisable, weighted average remaining contractual life (in years) | 5 years 6 months 21 days | |
Outstanding, beginning of year | $ 2,403 | |
Outstanding, end of year | 217 | $ 2,403 |
Options exercisable, end of year | $ 152 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary Of Restricted Stock And Restricted Stock Units (Details) - Restricted Stock And Restricted Stock Units | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Restricted Shares | |
Outstanding, beginning of year (in shares) | shares | 7,033,000 |
Granted (in shares) | shares | 3,302,000 |
Forfeited (in shares) | shares | (346,000) |
Vested (in shares) | shares | (2,182,000) |
Outstanding, end of year (in shares) | shares | 7,807,000 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 16.40 |
Granted (in dollars per share) | $ / shares | 14.47 |
Forfeited (in dollars per share) | $ / shares | 16.99 |
Vested (in dollars per share) | $ / shares | 17.05 |
Outstanding, end of year (in dollars per share) | $ / shares | $ 16.57 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets And (Liabilities) Measured At Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
TOLI policies held by the Rabbi Trust (see Note 13) | $ 8,400 | $ 9,000 | $ 8,000 |
Deferred Compensation Plan obligations (see Note 13) | (14,200) | (14,500) | (14,600) |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
TOLI policies held by the Rabbi Trust (see Note 13) | 0 | 0 | 0 |
Deferred Compensation Plan obligations (see Note 13) | 0 | 0 | 0 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
TOLI policies held by the Rabbi Trust (see Note 13) | 8,379 | 9,008 | 8,001 |
Deferred Compensation Plan obligations (see Note 13) | (14,230) | (14,489) | (14,641) |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
TOLI policies held by the Rabbi Trust (see Note 13) | 0 | 0 | 0 |
Deferred Compensation Plan obligations (see Note 13) | 0 | 0 | 0 |
Foreign currency contracts | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative foreign currency contracts (see Note 16) | 0 | 0 | 0 |
Foreign currency contracts | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative foreign currency contracts (see Note 16) | 988 | 631 | (13,173) |
Foreign currency contracts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative foreign currency contracts (see Note 16) | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2021 | May 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
1.50% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Convertible notes exchanged | $ 169,100,000 | $ 250,000,000 | $ 419,000,000 | ||
Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Fair value | 126,600,000 | $ 149,600,000 | $ 982,900,000 | ||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Fair value | $ 580,000,000 | $ 619,900,000 | $ 602,200,000 |
Risk Management and Derivativ_3
Risk Management and Derivatives - Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 14,291 | $ 10,375 | $ 2,486 |
Derivative liabilities | 14,854 | 9,442 | 16,352 |
Designated as Hedging Instrument | Foreign currency contracts | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 11,561 | 7,488 | 1,759 |
Designated as Hedging Instrument | Foreign currency contracts | Other long term assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 2,730 | 2,887 | 727 |
Designated as Hedging Instrument | Foreign currency contracts | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 11,209 | 8,663 | 13,021 |
Designated as Hedging Instrument | Foreign currency contracts | Other long term liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 3,645 | 779 | 3,331 |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 4,412 | 1,999 | 5,114 |
Derivative liabilities | 1,213 | 4,648 | 1,087 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 4,412 | 1,999 | 5,114 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | $ 1,213 | $ 4,648 | $ 1,087 |
Risk Management and Derivativ_4
Risk Management and Derivatives - Hedging Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net revenues | $ 1,300,945 | $ 1,257,195 |
Cost of goods sold | 695,781 | 628,554 |
Interest income (expense), net | (6,154) | (14,137) |
Other income (expense), net | (51) | (7,180) |
Net revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 2,049 | (3,147) |
Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | (2,903) | (2,218) |
Interest income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | (9) | (9) |
Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | $ 0 | $ 0 |
Risk Management and Derivativ_5
Risk Management and Derivatives - Derivative Other Comprehensive Income Rollforward (Details) - Cash Flow Hedges - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Asset (Liability) Rollforward [Roll Forward] | ||
Derivative assets (liabilities), beginning | $ (2,121) | $ (26,449) |
Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | 804 | 4,656 |
Amount of gain (loss) reclassified from other comprehensive income (loss) into income | (863) | (5,374) |
Derivative assets (liabilities), ending | (454) | (16,417) |
Foreign currency contracts | ||
Derivative Asset (Liability) Rollforward [Roll Forward] | ||
Derivative assets (liabilities), beginning | (1,617) | (25,908) |
Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | 804 | 4,656 |
Amount of gain (loss) reclassified from other comprehensive income (loss) into income | (854) | (5,365) |
Derivative assets (liabilities), ending | 41 | (15,886) |
Interest rate swaps | ||
Derivative Asset (Liability) Rollforward [Roll Forward] | ||
Derivative assets (liabilities), beginning | (504) | (541) |
Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | 0 | 0 |
Amount of gain (loss) reclassified from other comprehensive income (loss) into income | (9) | (9) |
Derivative assets (liabilities), ending | $ (495) | $ (531) |
Risk Management and Derivativ_6
Risk Management and Derivatives - Effects of Undesignated Derivatives and Fair Value Hedge Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Other income (expense), net | $ (51) | $ (7,180) |
Other income (expense), net | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) on Fair Value Hedge Activity | $ 4,481 | $ (2,737) |
Risk Management and Derivativ_7
Risk Management and Derivatives - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Derivative [Line Items] | |||
Minimum maturity | 1 month | ||
Maximum maturity | 24 months | ||
Pre-tax gain | $ 2.2 | ||
Foreign currency contracts | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | 228.4 | $ 258.2 | $ 317.7 |
Cash Flow Hedges | Foreign currency contracts | |||
Derivative [Line Items] | |||
Notional amount | $ 1,096.5 | $ 556.5 | $ 688.9 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | (15.70%) | 11.50% |
Earnings per Share - Schedule O
Earnings per Share - Schedule Of Reconciliation Of Basic Earnings Per Share To Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Net income (loss) - Basic | $ (59,610) | $ 77,752 |
Interest on Convertible Senior Notes due 2024, net of tax (2) | 0 | 0 |
Net Income (loss) - Diluted | $ (59,610) | $ 77,752 |
Denominator | ||
Weighted average common shares outstanding Class A, B and C - Basic (in shares) | 471,425,000 | 456,014,000 |
Dilutive effect of Class A, B, and C securities (in shares) | 0 | 3,212,000 |
Dilutive effect of Convertible Senior Notes due 2024 (2) | 0 | 0 |
Weighted average common shares and dilutive securities outstanding Class A, B, and C (in shares) | 471,425,000 | 459,226,000 |
Basic net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ (0.13) | $ 0.17 |
Diluted net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ (0.13) | $ 0.17 |
Stock Options and RSUs Representing Class A and Class C Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 4,300,000 |
Segment Data and Disaggregate_3
Segment Data and Disaggregated Revenue - Geographic Distribution Of The Company's Net Revenues And Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,300,945 | $ 1,257,195 |
Operating income (loss) | (45,956) | 106,890 |
Interest income (expense), net | (6,154) | (14,137) |
Other income (expense), net | (51) | (7,180) |
Income (loss) before income taxes | (52,161) | 85,573 |
Corporate Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 4,240 | (946) |
Operating income (loss) | (242,183) | (178,328) |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 841,101 | 805,727 |
Operating income (loss) | 154,084 | 210,562 |
EMEA | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 228,056 | 193,883 |
Operating income (loss) | 30,336 | 26,686 |
Asia-Pacific | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 181,908 | 210,220 |
Operating income (loss) | 5,464 | 46,513 |
Latin America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 45,640 | 48,311 |
Operating income (loss) | $ 6,343 | $ 1,457 |
Segment Data and Disaggregate_4
Segment Data and Disaggregated Revenue - Net Revenues By Product Category and Distribution Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,300,945 | $ 1,257,195 |
Corporate Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 4,240 | (946) |
Wholesale | ||
Segment Reporting Information [Line Items] | ||
Revenues | 829,179 | 799,587 |
Direct-to-consumer | ||
Segment Reporting Information [Line Items] | ||
Revenues | 440,924 | 436,897 |
Apparel | ||
Segment Reporting Information [Line Items] | ||
Revenues | 876,604 | 810,041 |
Footwear | ||
Segment Reporting Information [Line Items] | ||
Revenues | 296,696 | 309,047 |
Accessories | ||
Segment Reporting Information [Line Items] | ||
Revenues | 96,803 | 117,396 |
Net Sales | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,270,103 | 1,236,484 |
License revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 26,602 | $ 21,657 |
Uncategorized Items - ua-202203
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 13,417,000 |