Under Armour, Inc. [UAA] Filings

10-Q 1 ua-20221231.htm 10-Q ua-20221231

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________

Form 10-Q

______________________________________

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-33202

______________________________________

UNDER ARMOUR, INC.

(Exact name of registrant as specified in its charter)

______________________________________


Maryland						52-1990078
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)
1020 Hull Street Baltimore, Maryland 21230						(410) 468-2512
(Address of principal executive offices) (Zip Code)						(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Class A Common Stock	UAA	New York Stock Exchange
Class C Common Stock	UA	New York Stock Exchange
(Title of each class)	(Trading Symbols)	(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of January 31, 2023 there were 188,704,488 shares of Class A Common Stock, 34,450,000 shares of Class B Convertible Common Stock and 220,434,032 shares of Class C Common Stock outstanding.

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UNDER ARMOUR, INC.

FORM 10-Q

TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements:	1
	Condensed Consolidated Balance Sheets as of December 3 1 , 2022 (unaudited) and March 31, 2022 (unaudited)	1
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 3 1 , 2022 and 2021 (unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended December 3 1 , 2022 and 2021 (unaudited)	3
	Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended December 3 1 , 2022 and 2021 (unaudited)	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 3 1 , 2022 and 2021 (unaudited)	6
	Notes to the Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	46
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 6.	Exhibits	47
SIGNATURES		49

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Under Armour, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited; In thousands, except share data)


	December 31, 2022		March 31, 2022
Assets
Current assets
Cash and cash equivalents	$	849,546	$	1,009,139
Accounts receivable, net (Note 3)	700,544		702,197
Inventories	1,217,780		824,455
Prepaid expenses and other current assets, net	348,734		297,034
Total current assets	3,116,604		2,832,825
Property and equipment, net (Note 4)	655,612		601,365
Operating lease right-of-use assets (Note 5)	482,947		420,397
Goodwill (Note 6)	479,975		491,508
Intangible assets, net (Note 7)	9,198		10,580
Deferred income taxes (Note 17)	20,237		20,141
Other long-term assets	62,982		76,016
Total assets	$	4,827,555	$	4,452,832
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	738,740	$	560,331
Accrued expenses	388,159		317,963
Customer refund liabilities (Note 11)	172,190		159,628
Operating lease liabilities (Note 5)	137,310		134,833
Other current liabilities	65,730		125,840
Total current liabilities	1,502,129		1,298,595
Long term debt, net of current maturities (Note 8)	673,930		672,286
Operating lease liabilities, non-current (Note 5)	707,905		668,983
Other long-term liabilities	111,589		84,014
Total liabilities	2,995,553		2,723,878
Stockholders' equity (Note 10)
Class A Common Stock, $0.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2022 and March 31, 2022; 188,688,981 shares issued and outstanding as of December 31, 2022 (March 31, 2022: 188,668,560)	63		63
Class B Convertible Common Stock, $0.0003 1/3 par value; 34,450,000 shares authorized, issued and outstanding as of December 31, 2022 and March 31, 2022	11		11
Class C Common Stock, $0.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2022 and March 31, 2022; 221,435,846 shares issued and outstanding as of December 31, 2022 (March 31, 2022: 238,472,217)	73		79
Additional paid-in capital	1,118,529		1,046,961
Retained earnings	772,891		721,926
Accumulated other comprehensive income (loss)	(59,565)		(40,086)
Total stockholders' equity	1,832,002		1,728,954
Total liabilities and stockholders' equity	$	4,827,555	$	4,452,832

Commitments and Contingencies (Note 9)

See accompanying notes.

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Under Armour, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited; In thousands, except per share amounts)


	Three Months Ended December 31,				Nine Months Ended December 31,
	2022		2021		2022		2021
Net revenues	$	1,581,781	$	1,529,205	$	4,504,723	$	4,426,271
Cost of goods sold	883,376		753,272		2,462,287		2,193,413
Gross profit	698,405		775,933		2,042,436		2,232,858
Selling, general and administrative expenses	603,746		675,666		1,793,884		1,820,053
Restructuring and impairment charges	—		14,136		—		33,405
Income (loss) from operations	94,659		86,131		248,552		379,400
Interest income (expense), net	(1,615)		(7,595)		(11,175)		(30,163)
Other income (expense), net	47,312		24,037		27,300		(43,933)
Income (loss) before income taxes	140,356		102,573		264,677		305,304
Income tax expense (benefit)	18,811		(6,798)		46,719		22,191
Income (loss) from equity method investments	72		286		(1,734)		(805)
Net income (loss)	$	121,617	$	109,657	$	216,224	$	282,308

Basic net income (loss) per share of Class A, B and C common stock (Note 18)	$	0.27	$	0.23	$	0.48	$	0.60
Diluted net income (loss) per share of Class A, B and C common stock (Note 18)	$	0.27	$	0.23	$	0.47	$	0.60

Weighted average common shares outstanding Class A, B and C common stock
Basic	448,833		476,178		453,840		468,627
Diluted	458,990		479,728		463,750		471,743

See accompanying notes.

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Under Armour, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited; In thousands)


	Three Months Ended December 31,				Nine Months Ended December 31,
	2022		2021		2022		2021
Net income (loss)	$	121,617	$	109,657	$	216,224	$	282,308
Other comprehensive income (loss):
Foreign currency translation adjustment	16,433		(9,449)		(24,066)		(9,870)
Unrealized gain (loss) on cash flow hedges, net of tax benefit (expense) of $18,689 and $(298) for the three months ended December 31, 2022 and 2021, respectively, and $(1,397) and $(4,492) for the nine months ended December 31, 2022 and 2021, respectively.	(66,541)		(1,918)		25,353		9,805
Gain (loss) on intra-entity foreign currency transactions	8,778		1,686		(20,766)		2,039
Total other comprehensive income (loss)	(41,330)		(9,681)		(19,479)		1,974
Comprehensive income (loss)	$	80,287	$	99,976	$	196,745	$	284,282

See accompanying notes.

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Under Armour, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited; In thousands)


	Class A Common Stock			Class B Convertible Common Stock			Class C Common Stock			Additional Paid-in-Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance as of September 30, 2021	188,645	$	63	34,450	$	11	252,992	$	84	$	1,096,856	$	918,664	$	(37,929)	$	1,977,749

Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements	—	—		—	—		—	—		—		(488)		—		(488)
Issuance of Class A Common Stock, net of forfeitures	6	—		—	—		—	—		—		—		—		—
Issuance of Class C Common Stock, net of forfeitures	—	—		—	—		169	—		915		—		—		915
Stock-based compensation expense	—	—		—	—		—	—		10,842		—		—		10,842
Comprehensive income (loss)	—	—		—	—		—	—		—		109,657		(9,681)		99,976
Balance as of December 31, 2021	188,651	$	63	34,450	$	11	253,161	$	84	$	1,108,613	$	1,027,833	$	(47,610)	$	2,088,994

Balance as of March 31, 2021	188,622	$	62	34,450	$	11	233,935	$	78	$	1,072,401	$	747,231	$	(49,584)	$	1,770,199
Exercise of stock options	3	—		—	—		4	—		17		—		—		17
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements	—	—		—	—		(63)	—		—		(1,706)		—		(1,706)

Issuance of Class A Common Stock, net of forfeitures	26	1		—	—		—	—		—		—		—		1
Issuance of Class C Common Stock, net of forfeitures	—	—		—	—		19,285	6		2,773		—		—		2,779
Stock-based compensation expense	—	—		—	—		—	—		33,422		—		—		33,422
Comprehensive income (loss)	—	—		—	—		—	—		—		282,308		1,974		284,282
Balance as of December 31, 2021	188,651	$	63	34,450	$	11	253,161	$	84	$	1,108,613	$	1,027,833	$	(47,610)	$	2,088,994

See accompanying notes.

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Under Armour, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited; In thousands)


	Class A Common Stock			Class B Convertible Common Stock			Class C Common Stock			Additional Paid-in-Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance as of September 30, 2022	188,689	$	63	34,450	$	11	229,012	$	76	$	1,118,093	$	716,325	$	(18,235)	$	1,816,333
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements	—	—		—	—		—	—		—		(66)		—		(66)

Class C Common Stock repurchased	—	—		—	—		(7,762)	(3)		(10,012)		(64,985)		—		(75,000)
Issuance of Class C Common Stock, net of forfeitures	—	—		—	—		186	—		794		—		—		794
Stock-based compensation expense	—	—		—	—		—	—		9,654		—		—		9,654
Comprehensive income (loss)	—	—		—	—		—	—		—		121,617		(41,330)		80,287
Balance as of December 31, 2022	188,689	$	63	34,450	$	11	221,436	$	73	$	1,118,529	$	772,891	$	(59,565)	$	1,832,002

Balance as of March 31, 2022	188,669	$	63	34,450	$	11	238,472	$	79	$	1,046,961	$	721,926	$	(40,086)	$	1,728,954
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements	—	—		—	—		—	—		—		(868)		—		(868)
Class C Common Stock repurchased	—	—		—	—		(17,675)	(6)		39,397		(164,391)		—		(125,000)
Issuance of Class A Common Stock, net of forfeitures	20	—		—	—		—	—		—		—		—		—
Issuance of Class C Common Stock, net of forfeitures	—	—		—	—		639	—		2,809		—		—		2,809
Stock-based compensation expense	—	—		—	—		—	—		29,362		—		—		29,362
Comprehensive income (loss)	—	—		—	—		—	—		—		216,224		(19,479)		196,745
Balance as of December 31, 2022	188,689	$	63	34,450	$	11	221,436	$	73	$	1,118,529	$	772,891	$	(59,565)	$	1,832,002

See accompanying notes.

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Under Armour, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited; In thousands)


	Nine Months Ended December 31,
	2022		2021
Cash flows from operating activities
Net income (loss)	$	216,224	$	282,308
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization	102,656		105,632
Unrealized foreign currency exchange rate (gain) loss	(19,424)		4,175
Loss on extinguishment of senior convertible notes	—		58,526
Loss on disposal of property and equipment	1,411		3,893
Non-cash restructuring and impairment charges	—		21,337
Amortization of bond premium and debt issuance costs	1,644		11,618
Stock-based compensation	29,362		33,422
Deferred income taxes	(132)		(2,633)
Changes in reserves and allowances	7,316		(16,504)
Changes in operating assets and liabilities:
Accounts receivable	1,026		139,340
Inventories	(401,551)		44,041
Prepaid expenses and other assets	(68,931)		(12,071)
Other non-current assets	(46,272)		60,315
Accounts payable	168,681		106,119
Accrued expenses and other liabilities	50,892		7,047
Customer refund liability	12,440		(27,912)
Income taxes payable and receivable	19,057		(3,236)
Net cash provided by (used in) operating activities	74,399		815,417
Cash flows from investing activities
Purchases of property and equipment	(147,620)		(61,294)
Sale of property and equipment	—		852
Earn-out from the sale of MyFitnessPal platform	35,000		—
Net cash provided by (used in) investing activities	(112,620)		(60,442)
Cash flows from financing activities
Payments on long-term debt and revolving credit facility	—		(506,280)
Proceeds from capped call	—		91,722
Common shares repurchased	(125,000)		—
Employee taxes paid for shares withheld for income taxes	(868)		(1,682)
Proceeds from exercise of stock options and other stock issuances	2,809		2,830
Payments of debt financing costs	—		(1,884)
Net cash provided by (used in) financing activities	(123,059)		(415,294)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	3,205		(16,491)
Net increase (decrease) in cash, cash equivalents and restricted cash	(158,075)		323,190
Cash, cash equivalents and restricted cash
Beginning of period	1,022,126		1,359,680
End of period	$	864,051	$	1,682,870

Non-cash investing and financing activities
Change in accrual for property and equipment	$	(706)	$	20,640


Reconciliation of cash, cash equivalents and restricted cash	December 31, 2022		December 31, 2021
Cash and cash equivalents	$	849,546	$	1,669,453
Restricted cash	14,505		13,417
Total cash, cash equivalents and restricted cash	$	864,051	$	1,682,870

See accompanying notes.

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Under Armour, Inc. and Subsidiaries

Notes to the Condensed Consolidated Financial Statements

(Unaudited; Tabular amounts in thousands, except share and per share data)

NOTE 1. 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.

Fiscal Year End Change

As previously disclosed, the Company changed its fiscal year end from December 31 to March 31, effective for the fiscal year beginning April 1, 2022. The Company's current fiscal year will run from April 1, 2022 through March 31, 2023 (Fiscal 2023). Consequently, there was no Fiscal 2022.

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 presentation 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 December 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 and the Company's Transition Report on Form 10-QT for the three months ended March 31, 2022, filed with the SEC on May 9, 2022. The unaudited results for the three and nine months ended December 31, 2022, are not necessarily indicative of the results to be expected for Fiscal 2023, or any other portions thereof.

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 unaudited 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.

As the impacts of major global events, including the COVID-19 pandemic, 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 Company operates. Please see the risk factors discussed in Part I, Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K for Fiscal 2021.

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NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Account Pronouncements

The Company assesses the applicability and impact of all Accounting Standard Updates ("ASUs"). There were no ASUs adopted during the first nine months of Fiscal 2023.

Recently Issued Accounting Pronouncements

In September 2022, the Financial Accounting Standards Board ("FASB") issued ASU 2022-04 "Liabilities - Supplier Finance Programs (Subtopic 405-50)" ("ASU 2022-04") which requires entities to disclose the key terms of supplier finance programs used in connection with the purchase of goods and services along with information about their obligations under these programs, including a rollforward of those obligations. ASU 2022-04, with the exception of the rollforward requirement, is effective for fiscal years beginning after December 15, 2022 and should be applied retrospectively to all periods for which a balance sheet is presented. The rollforward requirement is effective for fiscal years beginning after December 15, 2023 and should be applied prospectively. Early adoption is permitted. The Company is currently evaluating this ASU to determine the impact of adoption on its consolidated financial statements.

NOTE 3. ALLOWANCE FOR DOUBTFUL ACCOUNTS

The Company's allowance for doubtful accounts was established with information available as of December 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 March 31, 2022	$	7,113	$	7,029
Increases (decreases) to costs and expenses	790		—
Write-offs, net of recoveries	(1,281)		(6,508)
Balance at December 31, 2022	$	6,622	$	521

(1) Includes an allowance pertaining to a royalty receivable.

NOTE 4. PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:


	As of December 31, 2022		As of March 31, 2022
Leasehold and tenant improvements	$	452,824	$	461,394
Furniture, fixtures and displays	282,147		263,749
Buildings	48,632		48,382
Software	374,845		339,722
Office equipment	130,776		132,452
Plant equipment	178,189		178,188
Land	83,626		83,626
Construction in progress (1)	115,954		64,869
Other	19,770		5,751
Subtotal property and equipment	1,686,763		1,578,133
Accumulated depreciation	(1,031,151)		(976,768)
Property and equipment, net	$	655,612	$	601,365

(1) Construction in progress primarily includes costs incurred for construction of corporate offices, software systems, leasehold improvements and in-store fixtures and displays not yet placed in use.

Depreciation expense related to property and equipment for the three and nine months ended December 31, 2022 was $34.2 million and $101.3 million, respectively (three and nine months ended December 31, 2021: $32.8 million and $105.3 million, respectively).

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NOTE 5. 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 and nine months ended December 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 Condensed Consolidated Statements of Operations, for the periods indicated:


	Three months ended December 31,				Nine months ended December 31,
	2022		2021		2022		2021
Operating lease costs	$	39,477	$	35,992	$	111,042	$	108,030
Variable lease costs	$	3,560	$	4,090	$	11,543	$	13,195

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 December 31, 2022		As of March 31, 2022
Weighted average remaining lease term (in years)	8.12		8.69
Weighted average discount rate	4.51	%	3.72	%

Supplemental Cash Flow Information

The following table presents supplemental information relating to cash flow arising from lease transactions:


	Three months ended December 31,				Nine months ended December 31,
	2022		2021		2022		2021
Operating cash outflows from operating leases	$	42,545	$	42,356	$	126,664	$	131,482
Leased assets obtained in exchange for new operating lease liabilities	$	32,804	$	9,848	$	140,364	$	24,170

Maturity of Lease Liabilities

The following table presents the future minimum lease payments under the Company's operating lease liabilities as of December 31, 2022:


Fiscal year ending March 31,
2023 (three months ending)	$	38,262
2024	173,175
2025	153,843
2026	121,400
2027	101,632
2028 and thereafter	422,433
Total lease payments	$	1,010,745
Less: Interest	165,530
Total present value of lease liabilities	$	845,215

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As of December 31, 2022, the Company has additional operating lease obligations that have not yet commenced of approximately $13.4 million, which are not reflected in the table above.

NOTE 6. 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 March 31, 2022	$	301,371	$	105,053	$	85,084	$	—	$	491,508
Effect of currency translation adjustment	—		(6,043)		(5,490)		—		(11,533)
Balance as of December 31, 2022	$	301,371	$	99,010	$	79,594	$	—	$	479,975

NOTE 7. INTANGIBLE ASSETS, NET

The following tables summarize the Company's intangible assets as of the periods indicated:


		As of December 31, 2022
	Useful Lives from Date of Acquisitions (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets subject to amortization:
Technology	5-7	$	2,536	$	(2,403)	$	133
Customer relationships	2-6	8,642		(3,998)		4,644
Lease-related intangible assets	1-15	1,581		(1,439)		142
Other	5-10	475		(463)		12
Total		$	13,234	$	(8,303)	$	4,931
Indefinite-lived intangible assets						4,267
Intangible assets, net						$	9,198


		As of March 31, 2022
	Useful Lives from Date of Acquisitions (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
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

Amortization expense, which is included in selling, general and administrative expenses, for the three and nine months ended December 31, 2022 was $0.5 million and $1.4 million, respectively (three and nine months ended December 31, 2021: $0.5 million and $1.4 million, respectively).

During the three months ended December 31, 2022, the Company reduced the gross carrying amount and related accumulated amortization of certain of its lease-related intangible assets by $7.8 million as a result of such assets being fully amortized and no longer in use.

Table of Contents

The following is the estimated amortization expense for the Company's intangible assets as of December 31, 2022:


Fiscal year ending March 31,
2023 (three months ending)	$	499
2024	1,541
2025	1,502
2026	1,380
2027	9
2028 and thereafter	—
Total amortization expense of intangible assets	$	4,931

NOTE 8. CREDIT FACILITY AND OTHER LONG TERM DEBT

The Company's outstanding debt consisted of the following:


	As of December 31, 2022		As of March 31, 2022
1.50% Convertible Senior Notes due 2024	$	80,919	$	80,919
3.25% Senior Notes due 2026	600,000		600,000
Total principal payments due	680,919		680,919

Unamortized debt discount on Senior Notes	(877)		(1,067)
Unamortized debt issuance costs - Convertible Senior Notes	(370)		(677)
Unamortized debt issuance costs - Senior Notes	(1,862)		(2,266)
Unamortized debt issuance costs - Credit facility	(3,880)		(4,623)
Total amount outstanding	673,930		672,286
Less:
Current portion of long-term debt:
Credit Facility borrowings	—		—

Non-current portion of long-term debt	$	673,930	$	672,286

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 $

Under Armour, Inc. [UAA] Filings

Under Armour, Inc. [UA] Filings