Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
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 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001336917 | |
Current Fiscal Year End Date | --03-31 | |
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 | 188,704,689 | |
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 | 222,184,702 | |
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 | Jun. 30, 2023 | Mar. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 703,591 | $ 711,910 |
Accounts receivable, net (Note 3) | 695,455 | 759,860 |
Inventories | 1,320,468 | 1,190,253 |
Prepaid expenses and other current assets, net | 264,704 | 297,563 |
Total current assets | 2,984,218 | 2,959,586 |
Property and equipment, net (Note 4) | 679,114 | 672,736 |
Operating lease right-of-use assets (Note 5) | 464,793 | 489,306 |
Goodwill (Note 6) | 479,568 | 481,992 |
Intangible assets, net (Note 7) | 8,616 | 8,940 |
Deferred income taxes (Note 17) | 194,910 | 186,167 |
Other long-term assets | 55,941 | 58,356 |
Total assets | 4,867,160 | 4,857,083 |
Current liabilities | ||
Current maturities of long-term debt (Note 9) | 80,919 | 0 |
Accounts payable | 714,189 | 649,116 |
Accrued expenses | 333,638 | 354,643 |
Customer refund liabilities (Note 12) | 136,017 | 160,533 |
Operating lease liabilities (Note 5) | 139,878 | 140,990 |
Other current liabilities | 59,565 | 51,609 |
Total current liabilities | 1,464,206 | 1,356,891 |
Long-term debt, net of current maturities (Note 9) | 594,107 | 674,478 |
Operating lease liabilities, non-current (Note 5) | 677,121 | 705,713 |
Other long-term liabilities | 126,316 | 121,598 |
Total liabilities | 2,861,750 | 2,858,680 |
Stockholders' equity (Note 11) | ||
Additional paid-in capital | 1,149,183 | 1,136,536 |
Retained earnings | 936,007 | 929,562 |
Accumulated other comprehensive income (loss) | (79,927) | (67,842) |
Total stockholders' equity | 2,005,410 | 1,998,403 |
Total liabilities and stockholders' equity | 4,867,160 | 4,857,083 |
Class A Common Stock | ||
Stockholders' equity (Note 11) | ||
Common stock | 63 | 63 |
Class B Convertible Common Stock | ||
Stockholders' equity (Note 11) | ||
Common stock | 11 | 11 |
Class C Common Stock | ||
Stockholders' equity (Note 11) | ||
Common stock | $ 73 | $ 73 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Mar. 31, 2023 |
Class A Common Stock | ||
Commons stock, par value (in dollars per share) | $ 0.0003 | $ 0.0003 |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 188,704,689 | 188,704,689 |
Common stock, shares outstanding (in shares) | 188,704,689 | 188,704,689 |
Class B Convertible Common Stock | ||
Commons stock, par value (in dollars per share) | $ 0.0003 | $ 0.0003 |
Common stock, authorized (in shares) | 34,450,000 | 34,450,000 |
Common stock, shares issued (in shares) | 34,450,000 | 34,450,000 |
Common stock, shares outstanding (in shares) | 34,450,000 | 34,450,000 |
Class C Common Stock | ||
Commons stock, par value (in dollars per share) | $ 0.0003 | $ 0.0003 |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 222,060,064 | 221,346,517 |
Common stock, shares outstanding (in shares) | 222,060,064 | 221,346,517 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,317,012 | $ 1,349,057 |
Cost of goods sold | 709,276 | 718,860 |
Gross profit | 607,736 | 630,197 |
Selling, general and administrative expenses | 586,806 | 595,714 |
Income (loss) from operations | 20,930 | 34,483 |
Interest income (expense), net | (1,626) | (6,005) |
Other income (expense), net | (6,385) | (14,241) |
Income (loss) before income taxes | 12,919 | 14,237 |
Income tax expense (benefit) | 3,971 | 5,657 |
Income (loss) from equity method investments | (399) | (898) |
Net income (loss) | $ 8,549 | $ 7,682 |
Basic net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ 0.02 | $ 0.02 |
Diluted net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ 0.02 | $ 0.02 |
Weighted average common shares outstanding Class A, B and C common stock | ||
Basic (in shares) | 444,872 | 458,415 |
Diluted (in shares) | 454,506 | 468,167 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 8,549 | $ 7,682 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 4,553 | (23,525) |
Unrealized gain (loss) on cash flow hedges, net of tax benefit (expense) of $7,185 and $(9,179), for the three months ended June 30, 2023 and 2022, respectively. | (8,256) | 42,482 |
Gain (loss) on intra-entity foreign currency transactions | (8,382) | (13,534) |
Total other comprehensive income (loss) | (12,085) | 5,423 |
Comprehensive income (loss) | $ (3,536) | $ 13,105 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on cash flow hedges, net of tax benefit (expense) | $ 7,185 | $ (9,179) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Convertible Common Stock | Class C Common Stock | Common Stock | Common Stock Class A Common Stock | Common Stock Class B Convertible Common Stock | Common Stock Class C Common Stock | Additional Paid-in-Capital | Additional Paid-in-Capital Class C Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Mar. 31, 2022 | 188,669,000 | 34,450,000 | 238,472,000 | |||||||||
Beginning balance at Mar. 31, 2022 | $ 1,728,954 | $ 63 | $ 11 | $ 79 | $ 1,046,961 | $ 721,926 | $ (40,086) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements | (352) | $ (35) | (352) | |||||||||
Class C Common Stock repurchased (in shares) | (6,669,000) | |||||||||||
Class C Common Stock repurchased | (25,000) | $ (2) | 49,659 | (74,657) | ||||||||
Issuance of common stock, net of forfeitures (in shares) | 258,000 | |||||||||||
Issuance of common stock, net of forfeitures | $ 993 | $ 993 | ||||||||||
Stock-based compensation expense | 11,375 | 11,375 | ||||||||||
Comprehensive income (loss) | 13,105 | 7,682 | 5,423 | |||||||||
Ending balance (in shares) at Jun. 30, 2022 | 188,669,000 | 34,450,000 | 232,026,000 | |||||||||
Ending balance at Jun. 30, 2022 | 1,729,075 | $ 63 | $ 11 | $ 77 | 1,108,988 | 654,599 | (34,663) | |||||
Beginning balance (in shares) at Mar. 31, 2023 | 188,704,689 | 34,450,000 | 221,346,517 | 188,705,000 | 34,450,000 | 221,347,000 | ||||||
Beginning balance at Mar. 31, 2023 | 1,998,403 | $ 63 | $ 11 | $ 73 | 1,136,536 | 929,562 | (67,842) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Shares withheld in consideration of employee tax obligations relative to stock-based compensation arrangements | (2,104) | $ (301) | (2,104) | |||||||||
Class C Common Stock repurchased | 0 | |||||||||||
Issuance of common stock, net of forfeitures (in shares) | 1,014,000 | |||||||||||
Issuance of common stock, net of forfeitures | $ 0 | $ 870 | $ 870 | |||||||||
Stock-based compensation expense | 11,777 | 11,777 | ||||||||||
Comprehensive income (loss) | (3,536) | 8,549 | (12,085) | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 188,704,689 | 34,450,000 | 222,060,064 | 188,705,000 | 34,450,000 | 222,060,000 | ||||||
Ending balance at Jun. 30, 2023 | $ 2,005,410 | $ 63 | $ 11 | $ 73 | $ 1,149,183 | $ 936,007 | $ (79,927) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income (loss) | $ 8,549 | $ 7,682 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 36,169 | 34,321 |
Unrealized foreign currency exchange rate (gain) loss | 8,230 | 7,856 |
Loss on disposal of property and equipment | 405 | 322 |
Amortization of bond premium and debt issuance costs | 548 | 548 |
Stock-based compensation | 11,777 | 11,375 |
Deferred income taxes | (8,756) | (1,125) |
Changes in reserves and allowances | 12,005 | 194 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 63,059 | 8,586 |
Inventories | (140,213) | (134,210) |
Prepaid expenses and other assets | (7,206) | (8,113) |
Other non-current assets | 30,155 | 19,796 |
Accounts payable | 46,854 | 96,319 |
Accrued expenses and other liabilities | (47,939) | 43,524 |
Customer refund liability | (24,472) | (2,528) |
Income taxes payable and receivable | 11,866 | 2,949 |
Net cash provided by (used in) operating activities | 1,031 | 87,496 |
Cash flows from investing activities | ||
Purchases of property and equipment | (39,591) | (35,747) |
Earn-out from the sale of MyFitnessPal platform | 45,000 | 35,000 |
Net cash provided by (used in) investing activities | 5,409 | (747) |
Cash flows from financing activities | ||
Common shares repurchased | 0 | (25,000) |
Employee taxes paid for shares withheld for income taxes | (2,104) | (352) |
Proceeds from exercise of stock options and other stock issuances | 870 | 993 |
Net cash provided by (used in) financing activities | (1,234) | (24,359) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (12,087) | (21,454) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (6,881) | 40,936 |
Cash, cash equivalents and restricted cash | ||
Beginning of period | 727,726 | 1,022,126 |
End of period | 720,845 | 1,063,062 |
Non-cash investing and financing activities | ||
Change in accrual for property and equipment | (11,547) | 4,677 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 703,591 | 1,049,413 |
Restricted cash | 17,254 | 13,649 |
Total cash, cash equivalents and restricted cash | $ 720,845 | $ 1,063,062 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Jun. 30, 2023 | |
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. Additionally, certain prior period comparative amounts in the condensed consolidated statement of shareholders' equity have been reclassified to conform to the current period presentation. Such reclassifications were not material and did not affect the condensed consolidated financial statements. The unaudited Condensed Consolidated Balance Sheet as of June 30, 2023 is derived from the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023 ("Fiscal 2023"), filed with the SEC on May 24, 2023 ("Annual Report on Form 10-K for Fiscal 2023"), which should be read in conjunction with these unaudited Condensed Consolidated Financial Statements. The unaudited results for the three months ended June 30, 2023, are not necessarily indicative of the results to be expected for the fiscal year ending March 31, 2024 ("Fiscal 2024"), 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 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 2023. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Account Pronouncements The Company assesses the applicability and impact of all Accounting Standard Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB"). The following ASU was adopted during the first quarter of Fiscal 2024. Supplier Finance Programs In September 2022, the 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. The Company adopted ASU 2022-04 on April 1, 2023 on a retrospective basis, except for the amendments relating to the rollforward requirement, which are required to be adopted on April 1, 2024 on a prospective basis. The adoption did not have a material impact on the Company's Condensed Consolidated Financial Statements. Refer to Note 8 for a discussion of the Company's supply chain finance program. Recently Issued Accounting Pronouncements The Company assessed all recently issued ASUs and determined them to be either not applicable or expected to have no material impact on its consolidated financial position and results of operations. |
Allowance For Doubtful Accounts
Allowance For Doubtful Accounts | 3 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023, 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 as of March 31, 2023 $ 10,813 $ 227 Increases (decreases) to costs and expenses 1,496 — Write-offs, net of recoveries 79 — Balance as of June 30, 2023 $ 12,388 $ 227 (1) Includes an allowance pertaining to a royalty receivable. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of June 30, 2023 As of March 31, 2023 Leasehold and tenant improvements $ 476,002 $ 462,721 Furniture, fixtures and displays 287,804 289,539 Buildings 69,256 48,632 Software 389,444 380,586 Office equipment 131,414 132,301 Plant equipment 178,197 178,194 Land 83,626 83,626 Construction in progress (1) 117,913 143,243 Other 16,656 17,837 Subtotal property and equipment 1,750,312 1,736,679 Accumulated depreciation (1,071,198) (1,063,943) Property and equipment, net $ 679,114 $ 672,736 (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 was $35.8 million for the three months ended June 30, 2023 (three months ended June 30, 2022: $33.9 million). |
Leases
Leases | 3 Months Ended |
Jun. 30, 2023 | |
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 2038, 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 June 30, 2023 and 2022. 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 Statement of Operations, for the periods indicated: Three months ended June 30, 2023 2022 Operating lease costs $ 41,091 $ 35,555 Variable lease costs $ 2,756 $ 3,623 There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. The Company rents or subleases certain 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 June 30, 2023 As of March 31, 2023 Weighted average remaining lease term (in years) 7.99 8.03 Weighted average discount rate 4.86 % 4.69 % Supplemental Cash Flow Information The following table presents supplemental information relating to cash flow arising from lease transactions: Three months ended June 30, 2023 2022 Operating cash outflows from operating leases $ 43,614 $ 41,865 Leased assets obtained in exchange for new operating lease liabilities $ 5,380 $ 19,589 Maturity of Lease Liabilities The following table presents the future minimum lease payments under the Company's operating lease liabilities as of June 30, 2023: Fiscal year ending March 31, 2024 (nine months ending) $ 129,494 2025 161,177 2026 128,644 2027 108,006 2028 91,134 2029 and thereafter 363,107 Total lease payments $ 981,562 Less: Interest 164,563 Total present value of lease liabilities $ 816,999 |
Goodwill
Goodwill | 3 Months Ended |
Jun. 30, 2023 | |
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 March 31, 2023 $ 301,371 $ 101,096 $ 79,525 $ — $ 481,992 Effect of currency translation adjustment — 1,561 (3,985) — (2,424) Balance as of June 30, 2023 $ 301,371 $ 102,657 $ 75,540 $ — $ 479,568 |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Jun. 30, 2023 | |
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: Useful Lives from Date of Acquisitions (in years) As of June 30, 2023 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Customer relationships 2-6 8,559 (4,643) 3,916 Lease-related intangible assets 1-15 1,729 (1,623) 106 Total $ 10,288 $ (6,266) $ 4,022 Indefinite-lived intangible assets 4,594 Intangible assets, net $ 8,616 Useful Lives from Date of Acquisitions (in years) As of March 31, 2023 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Technology 5-7 $ 2,536 $ (2,503) $ 33 Customer relationships 2-6 8,711 (4,377) 4,334 Lease-related intangible assets 1-15 1,664 (1,542) 122 Total $ 12,911 $ (8,422) $ 4,489 Indefinite-lived intangible assets 4,451 Intangible assets, net $ 8,940 Amortization expense, which is included in selling, general and administrative expenses, was $0.4 million for the three months ended June 30, 2023 (three months ended June 30, 2022: $0.5 million). During the three months ended June 30, 2023, the Company reduced the gross carrying amount and related accumulated amortization of technology assets by $2.5 million as a result of such assets being fully amortized. The following is the estimated future amortization expense for the Company's intangible assets as of June 30, 2023: Fiscal year ending March 31, 2024 (nine months ending) $ 1,128 2025 1,504 2026 1,381 2027 9 2028 — 2029 and thereafter — Total amortization expense of intangible assets $ 4,022 |
Supply Chain Finance Program
Supply Chain Finance Program | 3 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
SUPPLY CHAIN FINANCE PROGRAM | SUPPLY CHAIN FINANCE PROGRAM The Company facilitates a supply chain finance program, administered through third party platforms, which provides participating suppliers with the opportunity to finance payments due from the Company with certain third-party financial institutions. Participating suppliers may, at their sole discretion, elect to finance one or more invoices of the Company prior to their scheduled due dates at a discounted price with the participating financial institution. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by the supplier’s decision to finance amounts under these arrangements. As such, the outstanding payment obligations under the Company’s supply chain financing program are included within Accounts Payable in the Condensed Consolidated Balance Sheets and within operating activities in the Condensed Consolidated Statement of Cash Flows. The Company’s outstanding payment obligations under this program were $276.8 million as of June 30, 2023 (March 31, 2023: $250.8 million). |
Credit Facility and Other Long
Credit Facility and Other Long Term Debt | 3 Months Ended |
Jun. 30, 2023 | |
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 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 (750) (814) Unamortized debt issuance costs - Convertible Senior Notes (165) (267) Unamortized debt issuance costs - Senior Notes (1,593) (1,728) Unamortized debt issuance costs - Credit facility (3,385) (3,632) Total amount outstanding 675,026 674,478 Less: Current portion of long-term debt: 1.50% Convertible Senior Notes due 2024 80,919 — Non-current portion of long-term debt $ 594,107 $ 674,478 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 June 30, 2023 and March 31, 2023, 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 June 30, 2023, there were $4.3 million of letters of credit outstanding (March 31, 2023: $4.4 million). 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 June 30, 2023, 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, Japanese 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 June 30, 2023, the commitment fee was 17.5 basis points. 1.50% Convertible Senior Notes The Company has approximately $80.9 million aggregate principal amount of 1.50% convertible senior notes due 2024 (the "Convertible Senior Notes") outstanding as of June 30, 2023, which were issued in May 2020. The Convertible Senior Notes bear interest at the fixed 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 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. 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 day of the measurement period was less than 98% of the product of the last reported sale price of the Company's Class C Common Stock and the conversion rate on each such trading day; • 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. Beginning on 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. 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"). The Senior Notes bear interest at the fixed rate of 3.250% per annum, 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 $1.6 million for the three months ended June 30, 2023 (three months ended June 30, 2022: $6.0 million). The following are the scheduled maturities of long-term debt as of June 30, 2023: Fiscal year ending March 31, 2024 (nine months ending) $ — 2025 80,919 2026 — 2027 600,000 2028 — 2029 and thereafter — Total scheduled maturities of long-term debt $ 680,919 Current maturities of long-term debt $ 80,919 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2023 | |
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 November 6 and December 17, 2019, two additional putative securities class actions were filed 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). On September 14, 2020, the District Court issued an order that, among other things, consolidated the Patel and Waronker cases into the Consolidated Securities Action. The operative complaint (the Third Amended Complaint or the "TAC") in the Consolidated Securities Action, was filed on October 14, 2020. The TAC asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (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 the U.S. Department of Justice ("DOJ") and the U.S. Securities and Exchange Commission (the "SEC") since July 2017. The class period identified in the TAC is September 16, 2015 through November 1, 2019. 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. On September 29, 2022, the court granted the plaintiffs' class certification motion. The Company continues to believe that the claims asserted in the Consolidated Securities Action are without merit and intends to defend the lawsuit vigorously. 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 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 2016 purchase from entities controlled by Mr. Plank (through Sagamore) of certain parcels of land to accommodate the Company's growth needs, which was approved by the Audit Committee of the Company's Board of Directors 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 to those asserted in the Kenney action relating to the Company's purchase of parcels in the Baltimore Peninsula, an area of Baltimore previously referred to as 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 both of these purported stockholders were informed 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. 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. The Company believes that the claims asserted in the Consolidated State 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. Federal Court Derivative Complaints On January 27, 2021, the District Court entered an order consolidating for all purposes four separate stockholder derivative cases that previously had been filed in the court. On February 2, 2023, the District Court issued an order appointing Balraj Paul and Anthony Viskovich as lead plaintiffs (“Derivative Lead Plaintiffs”), appointing counsel for the Derivative Lead Plaintiffs as lead counsel, and recaptioning the consolidated case as Paul et al. v. Plank et al. (the “Federal Court Derivative Action”). Prior to their filing derivative complaints, both of the Derivative Lead Plaintiffs 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 the Derivative Lead Plaintiffs were informed of that determination. On March 16, 2023, the District Court issued an order granting a motion for voluntary dismissal without prejudice that had been filed by the plaintiff in one of the four derivative cases who had not been appointed as a lead plaintiff. The other three consolidated derivative cases remain pending as part of the Federal Court Derivative Action. On April 24, 2023, the Derivative Lead Plaintiffs designated an operative complaint in the Federal Court Derivative Action. The operative complaint names Mr. Plank, certain other current and former members of the Company's Board of Directors, and certain other current and former Company executives as defendants, and names the Company as a nominal defendant. It asserts 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; and (iv) the Company's supposed failure to timely disclose investigations by the SEC and DOJ. The operative complaint asserts breach of fiduciary duty and unjust enrichment claims against the defendants, and asserts a contribution claim under the federal securities laws against certain defendants. The operative complaint seeks damages on behalf of the Company, and also seeks certain corporate governance related actions. The Company and the defendants filed a motion to dismiss the operative complaint on June 23, 2023. Briefing in connection with that motion is not yet complete. 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. Contingencies In accordance with Accounting Standards Codification (“ASC”) Topic 450 “Contingencies” (“Topic 450”), the Company establishes accruals for contingencies when (i) the Company believes it is probable that a loss will be incurred and (ii) the amount of the loss can be reasonably estimated. If the reasonable estimate is a range, the Company will accrue the best estimate in that range; where no best estimate can be determined, the Company will accrue the minimum. As of June 30, 2023, the Company has estimated its liability and recorded $20 million in respect of certain ongoing legal proceedings summarized above. The timing of the resolution is unknown and the amount of loss ultimately incurred in connection with these matters may be substantially higher than the amount accrued for these matters, and the Company expects a portion of the loss, if any is incurred, to be covered by the Company’s insurance. Legal proceedings for which no accrual has been established are disclosed to the extent required by ASC 450. In addition, in connection with the matters described above and previously disclosed government investigations, the Company provided notice of claims under multiple director and officer liability insurance policy periods. With respect to one policy period, a lawsuit was filed against the Company by certain of its insurance carriers seeking a declaration that no further amounts will be payable with respect to that policy period and with respect to one carrier, reimbursement for $10 million in defense and investigation costs previ ously paid to the Company. On April 26, 2023, the Company and one of its insurance carriers resolved the dispute related to that carrier’s claims for a declaration that no further amounts would be payable and seeking reimbursement of previously paid amounts. The resolution resulted in no reimbursement payable by the Company. The other carriers remaining in the case continue to seek a declaration that no further amounts will be payable with respect to that policy period. The timing of the resolution is unknown for the remaining claims in this matter. From time to time, the Company’s view regarding probability of loss with respect to outstanding legal proceedings will change, proceedings for which the Company is able to estimate a loss or range of loss will change, and the estimates themselves will change. In addition, while many matters presented in financial disclosures involve significant judgment and may be subject to significant uncertainties, estimates with respect to legal proceedings are subject to particular uncertainties. Other than as described above, the Company believes that all current proceedings are routine in nature and incidental to the conduct of its business. However, the matters described above, 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023. 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 Chair 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 400.0 million shares and has a par value of $0.0003 1/3 per share as of June 30, 2023. 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. No shares were repurchased under the share repurchase program during the three months ended June 30, 2023 (three months ended June 30, 2022: 6.7 million shares of Class C Common Stock repurchased and immediately retired). As of the date of this Quarterly Report on Form 10-Q, the Company has repurchased a total of $425 million or 34.9 million outstanding shares of its Class C Common Stock under its share repurchase program. |
Revenues
Revenues | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following tables summarize the Company's net revenues by product category and distribution channels: Three Months Ended June 30, 2023 2022 Apparel $ 824,660 $ 868,428 Footwear 363,670 347,251 Accessories 97,862 96,831 Net Sales 1,286,192 1,312,510 License revenues 25,072 28,135 Corporate Other 5,748 8,412 Total net revenues $ 1,317,012 $ 1,349,057 Three Months Ended June 30, 2023 2022 Wholesale $ 741,958 $ 791,686 Direct-to-consumer 544,234 520,824 Net Sales 1,286,192 1,312,510 License revenues 25,072 28,135 Corporate Other 5,748 8,412 Total net revenues $ 1,317,012 $ 1,349,057 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: As of As of Customer refund liability $ 136,017 $ 160,533 Inventory associated with reserves for sales returns $ 32,925 $ 40,661 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 which are in 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 June 30, 2023, contract liabilities were $26.2 million (March 31, 2023: $25.9 million). |
Other Employee Benefits
Other Employee Benefits | 3 Months Ended |
Jun. 30, 2023 | |
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 $3.4 million for the three months ended June 30, 2023 (three months ended June 30, 2022: $1.6 million). In addition, the Company offers the Under Armour, Inc. Deferred Compensation Plan (the "Deferred Compensation Plan") which allows a select group of management or highly compensated employees, as approved by the Human Capital and Compensation Committee of the Board of Directors, to make an annual base salary and/or bonus deferral for each year. As of June 30, 2023, the Deferred Compensation Plan obligations, which are included in other long-term liabilities on the Condensed Consolidated Balance Sheets were $14.6 million (March 31, 2023: $14.1 million). The Company established a Rabbi Trust to fund obligations to participants in the Deferred Compensation Plan. As of June 30, 2023, the assets held in the Rabbi Trust were trust owned life insurance ("TOLI") policies with cash-surrender values of $8.0 million (March 31, 2023: $7.7 million). 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 |
Jun. 30, 2023 | |
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 2029. As of June 30, 2023, 8.3 million Class A shares and 17.4 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 June 30, 2023 was $10.3 million (three months ended June 30, 2022: $11.4 million). As of June 30, 2023, the Company had $101.9 million of unrecognized compensation expense related to these awards expected to be recognized over a weighted average period of 2.29 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 period of 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 0.8 million deferred stock units outstanding as of June 30, 2023. 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 June 30, 2023, 2.7 million Class A shares and 1.0 million Class C shares are available for future purchases under the ESPP. During the three months ended June 30, 2023, 145.2 thousand Class C shares were purchased under the ESPP (three months ended June 30, 2022: 121.4 thousand). Awards granted to Certain Marketing and Other 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 and other partners in connection with their entering into endorsement or other service agreements with the Company. 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 June 30, 2023 was $2.3 million (three months ended June 30, 2022: $0.8 million). As of June 30, 2023, the Company had $77.7 million of unrecognized compensation expense associated with these awards expected to be recognized over a weighted average period of 10.73 years. Summary by Award Classification: Stock Options A summary of the Company's stock options activity for the three months ended June 30, 2023 is presented below: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at March 31, 2023 1,578 $ 19.44 4.82 $ — Granted, at fair market value — — — — Exercised — — — — Forfeited — — — — Outstanding at June 30, 2023 1,578 $ 19.44 4.57 $ — Options exercisable at June 30, 2023 1,503 $ 19.66 4.47 $ — 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 June 30, 2023 is presented below: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2023 7,658 $ 13.01 Granted 15,863 7.84 Forfeited (488) 12.12 Vested (873) 14.21 Outstanding at June 30, 2023 22,160 $ 9.28 The awards outstanding at June 30, 2023 in the table above includes 1.0 million performance-based restricted stock units that were awarded to certain executives and key employees during Fiscal 2023 under the 2005 Plan. The performance-based restricted stock units awarded have a weighted average fair value of $9.13 and have vesting that is tied to the achievement of certain combined annual revenue and operating income targets. The Company deemed the achievement of certain of these targets probable and recorded $0.3 million of stock-based compensation expense related to these awards during the three months ended June 30, 2023 (three months ended June 30, 2022: $0.4 million). The Company assesses the probability of the achievement of the remaining revenue and operating income targets at the end of each reporting period and based on that assessment cumulative adjustments may be recorded in future periods. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2023 | |
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 the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value accounting guidance outlines a valuation framework, creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures, and prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions. Financial assets and liabilities measured at fair value on a recurring basis 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: June 30, 2023 March 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative foreign currency contracts (see Note 16) $ — $ (18,403) $ — $ — $ (3,127) $ — TOLI policies held by the Rabbi Trust (see Note 13) $ — $ 8,042 $ — $ — $ 7,691 $ — Deferred Compensation Plan obligations (see Note 13) $ — $ (14,641) $ — $ — $ (14,082) $ — 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 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 Deferred Compensation Plan, which represent the underlying liabilities to participants. 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 June 30, 2023, the fair value of the Convertible Senior Notes was $78.2 million (March 31, 2023: $85.8 million). As of June 30, 2023, the fair value of the Senior Notes was $551.6 million (March 31, 2023: $553.9 million). Assets and liabilities measured at fair value on a non-recurring basis Certain assets are not remeasured to fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets and goodwill that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. |
Risk Management and Derivatives
Risk Management and Derivatives | 3 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023, 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 June 30, 2023 March 31, 2023 Derivatives designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 19,845 $ 22,473 Foreign currency contracts Other long-term assets 2,239 619 Total derivative assets designated as hedging instruments $ 22,084 $ 23,092 Foreign currency contracts Other current liabilities $ 30,863 $ 21,622 Foreign currency contracts Other long-term liabilities 9,362 5,769 Total derivative liabilities designated as hedging instruments $ 40,225 $ 27,391 Derivatives not designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 5,818 $ 3,408 Total derivative assets not designated as hedging instruments $ 5,818 $ 3,408 Foreign currency contracts Other current liabilities $ 8,988 $ 6,563 Foreign currency contracts Other long-term liabilities — 4 Total derivative liabilities not designated as hedging instruments $ 8,988 $ 6,567 The following table presents the amounts in the Condensed Consolidated Statement 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 June 30, 2023 2022 Total Amount of Gain (Loss) on Cash Flow Hedge Activity Total Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 1,317,012 $ 4,475 $ 1,349,057 $ 6,554 Cost of goods sold $ 709,276 $ 294 $ 718,860 $ (1,948) Interest income (expense), net $ (1,626) $ (9) $ (6,005) $ (9) Other income (expense), net $ (6,385) $ — $ (14,241) $ — 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 June 30, 2023 Derivatives designated as cash flow hedges Foreign currency contracts $ (4,764) $ (10,681) $ 4,769 $ (20,214) Interest rate swaps (458) — (9) (449) Total designated as cash flow hedges $ (5,222) $ (10,681) $ 4,760 $ (20,663) 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 June 30, 2022 Derivatives designated as cash flow hedges Foreign currency contracts $ 41 $ 56,258 $ 4,606 $ 51,693 Interest rate swaps (495) — (9) (486) Total designated as cash flow hedges $ (454) $ 56,258 $ 4,597 $ 51,207 The following table presents the amounts in the Condensed Consolidated Statement 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 June 30, 2023 2022 Total Amount of Gain (Loss) on Fair Value Hedge Activity Total Amount of Gain (Loss) on Fair Value Hedge Activity Other income (expense), net $ (6,385) $ (2,312) $ (14,241) $ (4,002) 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 June 30, 2023, the aggregate notional value of the Company's outstanding cash flow hedges was $1,071.8 million (March 31, 2023: $799.7 million), 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 9 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 Statement of Operations in the same manner as the underlying exposure. 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 June 30, 2023, the total notional value of the Company's outstanding undesignated derivative instruments was $430.0 million (March 31, 2023: $396.7 million). 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 |
Provision for Income Taxes
Provision for Income Taxes | 3 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES For the period ended June 30, 2023, the Company computes its quarterly income tax provision under the effective tax rate method by applying an estimated anticipated annual effective rate to the Company's year-to-date earnings, except for significant and unusual or extraordinary transactions. Losses from jurisdictions for which no benefit can be recognized are excluded from the overall computations of the estimated annual effective tax rate and a separate estimated annual effective tax rate is computed and applied to earnings in the loss jurisdiction. Income tax provision for any significant and unusual or extraordinary transactions are computed and recorded in the period in which the specific transaction occurs. The effective rates for income taxes were 30.7% and 39.7% for the three months ended June 30, 2023 and 2022, respectively. The decrease in the Company’s effective tax rate was primarily driven by the lapping of discrete items in the period ended June 30, 2022, partially offset by a reduction in tax benefits attributable to valuation allowance releases in the period ended June 30, 2023 compared to the period ended June 30, 2022. 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 2023, a significant portion of the Company’s deferred tax assets relate to United States state taxing jurisdictions. Realization of these deferred tax assets is dependent on future United States pre-tax earnings. As of June 30, 2023, 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 state deferred tax assets. Accordingly, the Company continues to maintain a valuation allowance on these deferred tax assets. Furthermore, valuation allowances have also been recorded against a portion of 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 forecast for the United States indicates that it is reasonably possible that a portion of the state deferred taxes could be realizable during the current fiscal year-end 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 a portion or all of previously recorded state 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 |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following represents a reconciliation from basic net income (loss) per share to diluted net income (loss) per share: Three Months Ended June 30, 2023 2022 Numerator Net income (loss) - Basic $ 8,549 $ 7,682 Interest on Convertible Senior Notes due 2024, net of tax 225 225 Net income (loss) - Diluted $ 8,774 $ 7,907 Denominator Weighted average common shares outstanding Class A, B and C - Basic 444,872 458,415 Dilutive effect of Class A, B, and C securities 1,392 1,510 Dilutive effect of Convertible Senior Notes due 2024 8,242 8,242 Weighted average common shares and dilutive securities outstanding Class A, B, and C 454,506 468,167 Class A and Class C securities excluded as anti-dilutive (1) 22,592 8,458 Basic net income (loss) per share of Class A, B and C common stock $ 0.02 $ 0.02 Diluted net income (loss) per share of Class A, B and C common stock $ 0.02 $ 0.02 (1) Represents stock options and restricted stock units of Class A and Class C Common Stock outstanding that were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. |
Segment Data
Segment Data | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA 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 items from its segment profitability measures. The Company reports these items within Corporate Other, which is designed to provide increased transparency and comparability of the Company's operating segments' performance. Corporate Other consists primarily of (i) operating results related to MMR platforms and other digital business opportunities; (ii) general and administrative expenses not allocated to an operating segment, including expenses associated with centrally managed departments which include global marketing, global IT, global supply chain and innovation, and other corporate support functions; (iii) restructuring and restructuring related charges; and (iv) 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 June 30, 2023 2022 Net revenues North America $ 826,652 $ 909,356 EMEA 226,641 205,181 Asia-Pacific 202,232 176,665 Latin America 55,739 49,443 Corporate Other 5,748 8,412 Total net revenues $ 1,317,012 $ 1,349,057 Three Months Ended June 30, 2023 2022 Operating income (loss) North America $ 158,051 $ 189,924 EMEA 30,949 18,181 Asia-Pacific 15,398 19,945 Latin America 5,777 6,234 Corporate Other (189,245) (199,801) Total operating income (loss) 20,930 34,483 Interest expense, net (1,626) (6,005) Other income (expense), net (6,385) (14,241) Income (loss) before income taxes $ 12,919 $ 14,237 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net income (loss) - Basic | $ 8,549 | $ 7,682 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Jun. 30, 2023 | |
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. Additionally, certain prior period comparative amounts in the condensed consolidated statement of shareholders' equity have been reclassified to conform to the current period presentation. Such reclassifications were not material and did not affect the condensed consolidated financial statements. The unaudited Condensed Consolidated Balance Sheet as of June 30, 2023 is derived from the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023 ("Fiscal 2023"), filed with the SEC on May 24, 2023 ("Annual Report on Form 10-K for Fiscal 2023"), which should be read in conjunction with these unaudited Condensed Consolidated Financial Statements. The unaudited results for the three months ended June 30, 2023, are not necessarily indicative of the results to be expected for the fiscal year ending March 31, 2024 ("Fiscal 2024"), or any other portions thereof. |
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 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. |
Recently Adopted Account Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Account Pronouncements The Company assesses the applicability and impact of all Accounting Standard Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB"). The following ASU was adopted during the first quarter of Fiscal 2024. Supplier Finance Programs In September 2022, the 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. The Company adopted ASU 2022-04 on April 1, 2023 on a retrospective basis, except for the amendments relating to the rollforward requirement, which are required to be adopted on April 1, 2024 on a prospective basis. The adoption did not have a material impact on the Company's Condensed Consolidated Financial Statements. Refer to Note 8 for a discussion of the Company's supply chain finance program. Recently Issued Accounting Pronouncements The Company assessed all recently issued ASUs and determined them to be either not applicable or expected to have no material impact on its consolidated financial position and results of operations. |
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 |
Jun. 30, 2023 | |
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 as of March 31, 2023 $ 10,813 $ 227 Increases (decreases) to costs and expenses 1,496 — Write-offs, net of recoveries 79 — Balance as of June 30, 2023 $ 12,388 $ 227 (1) Includes an allowance pertaining to a royalty receivable. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following: As of June 30, 2023 As of March 31, 2023 Leasehold and tenant improvements $ 476,002 $ 462,721 Furniture, fixtures and displays 287,804 289,539 Buildings 69,256 48,632 Software 389,444 380,586 Office equipment 131,414 132,301 Plant equipment 178,197 178,194 Land 83,626 83,626 Construction in progress (1) 117,913 143,243 Other 16,656 17,837 Subtotal property and equipment 1,750,312 1,736,679 Accumulated depreciation (1,071,198) (1,063,943) Property and equipment, net $ 679,114 $ 672,736 (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. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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 Condensed Consolidated Statement of Operations, for the periods indicated: Three months ended June 30, 2023 2022 Operating lease costs $ 41,091 $ 35,555 Variable lease costs $ 2,756 $ 3,623 The weighted average remaining lease term and discount rate for the periods indicated below were as follows: As of June 30, 2023 As of March 31, 2023 Weighted average remaining lease term (in years) 7.99 8.03 Weighted average discount rate 4.86 % 4.69 % Supplemental Cash Flow Information The following table presents supplemental information relating to cash flow arising from lease transactions: Three months ended June 30, 2023 2022 Operating cash outflows from operating leases $ 43,614 $ 41,865 Leased assets obtained in exchange for new operating lease liabilities $ 5,380 $ 19,589 |
Schedule of Operating Lease Liability Maturity | The following table presents the future minimum lease payments under the Company's operating lease liabilities as of June 30, 2023: Fiscal year ending March 31, 2024 (nine months ending) $ 129,494 2025 161,177 2026 128,644 2027 108,006 2028 91,134 2029 and thereafter 363,107 Total lease payments $ 981,562 Less: Interest 164,563 Total present value of lease liabilities $ 816,999 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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 March 31, 2023 $ 301,371 $ 101,096 $ 79,525 $ — $ 481,992 Effect of currency translation adjustment — 1,561 (3,985) — (2,424) Balance as of June 30, 2023 $ 301,371 $ 102,657 $ 75,540 $ — $ 479,568 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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: Useful Lives from Date of Acquisitions (in years) As of June 30, 2023 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Customer relationships 2-6 8,559 (4,643) 3,916 Lease-related intangible assets 1-15 1,729 (1,623) 106 Total $ 10,288 $ (6,266) $ 4,022 Indefinite-lived intangible assets 4,594 Intangible assets, net $ 8,616 Useful Lives from Date of Acquisitions (in years) As of March 31, 2023 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Technology 5-7 $ 2,536 $ (2,503) $ 33 Customer relationships 2-6 8,711 (4,377) 4,334 Lease-related intangible assets 1-15 1,664 (1,542) 122 Total $ 12,911 $ (8,422) $ 4,489 Indefinite-lived intangible assets 4,451 Intangible assets, net $ 8,940 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following is the estimated future amortization expense for the Company's intangible assets as of June 30, 2023: Fiscal year ending March 31, 2024 (nine months ending) $ 1,128 2025 1,504 2026 1,381 2027 9 2028 — 2029 and thereafter — Total amortization expense of intangible assets $ 4,022 |
Credit Facility and Other Lon_2
Credit Facility and Other Long Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Outstanding Debt | The Company's outstanding debt consisted of the following: As of As of 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 (750) (814) Unamortized debt issuance costs - Convertible Senior Notes (165) (267) Unamortized debt issuance costs - Senior Notes (1,593) (1,728) Unamortized debt issuance costs - Credit facility (3,385) (3,632) Total amount outstanding 675,026 674,478 Less: Current portion of long-term debt: 1.50% Convertible Senior Notes due 2024 80,919 — Non-current portion of long-term debt $ 594,107 $ 674,478 |
Schedule of Maturities of Long-term Debt | The following are the scheduled maturities of long-term debt as of June 30, 2023: Fiscal year ending March 31, 2024 (nine months ending) $ — 2025 80,919 2026 — 2027 600,000 2028 — 2029 and thereafter — Total scheduled maturities of long-term debt $ 680,919 Current maturities of long-term debt $ 80,919 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Net Revenues by Product Category | The following tables summarize the Company's net revenues by product category and distribution channels: Three Months Ended June 30, 2023 2022 Apparel $ 824,660 $ 868,428 Footwear 363,670 347,251 Accessories 97,862 96,831 Net Sales 1,286,192 1,312,510 License revenues 25,072 28,135 Corporate Other 5,748 8,412 Total net revenues $ 1,317,012 $ 1,349,057 Three Months Ended June 30, 2023 2022 Wholesale $ 741,958 $ 791,686 Direct-to-consumer 544,234 520,824 Net Sales 1,286,192 1,312,510 License revenues 25,072 28,135 Corporate Other 5,748 8,412 Total net revenues $ 1,317,012 $ 1,349,057 |
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: As of As of Customer refund liability $ 136,017 $ 160,533 Inventory associated with reserves for sales returns $ 32,925 $ 40,661 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 is presented below: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at March 31, 2023 1,578 $ 19.44 4.82 $ — Granted, at fair market value — — — — Exercised — — — — Forfeited — — — — Outstanding at June 30, 2023 1,578 $ 19.44 4.57 $ — Options exercisable at June 30, 2023 1,503 $ 19.66 4.47 $ — |
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 June 30, 2023 is presented below: Number of Restricted Shares Weighted Average Grant Date Fair Value Outstanding at March 31, 2023 7,658 $ 13.01 Granted 15,863 7.84 Forfeited (488) 12.12 Vested (873) 14.21 Outstanding at June 30, 2023 22,160 $ 9.28 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 March 31, 2023 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Derivative foreign currency contracts (see Note 16) $ — $ (18,403) $ — $ — $ (3,127) $ — TOLI policies held by the Rabbi Trust (see Note 13) $ — $ 8,042 $ — $ — $ 7,691 $ — Deferred Compensation Plan obligations (see Note 13) $ — $ (14,641) $ — $ — $ (14,082) $ — |
Risk Management and Derivativ_2
Risk Management and Derivatives (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 March 31, 2023 Derivatives designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 19,845 $ 22,473 Foreign currency contracts Other long-term assets 2,239 619 Total derivative assets designated as hedging instruments $ 22,084 $ 23,092 Foreign currency contracts Other current liabilities $ 30,863 $ 21,622 Foreign currency contracts Other long-term liabilities 9,362 5,769 Total derivative liabilities designated as hedging instruments $ 40,225 $ 27,391 Derivatives not designated as hedging instruments under ASC 815 Foreign currency contracts Other current assets $ 5,818 $ 3,408 Total derivative assets not designated as hedging instruments $ 5,818 $ 3,408 Foreign currency contracts Other current liabilities $ 8,988 $ 6,563 Foreign currency contracts Other long-term liabilities — 4 Total derivative liabilities not designated as hedging instruments $ 8,988 $ 6,567 |
Schedule of Effects of Cash Flow Hedges | The following table presents the amounts in the Condensed Consolidated Statement 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 June 30, 2023 2022 Total Amount of Gain (Loss) on Cash Flow Hedge Activity Total Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 1,317,012 $ 4,475 $ 1,349,057 $ 6,554 Cost of goods sold $ 709,276 $ 294 $ 718,860 $ (1,948) Interest income (expense), net $ (1,626) $ (9) $ (6,005) $ (9) Other income (expense), net $ (6,385) $ — $ (14,241) $ — |
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 June 30, 2023 Derivatives designated as cash flow hedges Foreign currency contracts $ (4,764) $ (10,681) $ 4,769 $ (20,214) Interest rate swaps (458) — (9) (449) Total designated as cash flow hedges $ (5,222) $ (10,681) $ 4,760 $ (20,663) 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 June 30, 2022 Derivatives designated as cash flow hedges Foreign currency contracts $ 41 $ 56,258 $ 4,606 $ 51,693 Interest rate swaps (495) — (9) (486) Total designated as cash flow hedges $ (454) $ 56,258 $ 4,597 $ 51,207 |
Schedule of Fair Value Hedging Activity | The following table presents the amounts in the Condensed Consolidated Statement 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 June 30, 2023 2022 Total Amount of Gain (Loss) on Fair Value Hedge Activity Total Amount of Gain (Loss) on Fair Value Hedge Activity Other income (expense), net $ (6,385) $ (2,312) $ (14,241) $ (4,002) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic Earnings per Share to Diluted Earnings per Share | The following represents a reconciliation from basic net income (loss) per share to diluted net income (loss) per share: Three Months Ended June 30, 2023 2022 Numerator Net income (loss) - Basic $ 8,549 $ 7,682 Interest on Convertible Senior Notes due 2024, net of tax 225 225 Net income (loss) - Diluted $ 8,774 $ 7,907 Denominator Weighted average common shares outstanding Class A, B and C - Basic 444,872 458,415 Dilutive effect of Class A, B, and C securities 1,392 1,510 Dilutive effect of Convertible Senior Notes due 2024 8,242 8,242 Weighted average common shares and dilutive securities outstanding Class A, B, and C 454,506 468,167 Class A and Class C securities excluded as anti-dilutive (1) 22,592 8,458 Basic net income (loss) per share of Class A, B and C common stock $ 0.02 $ 0.02 Diluted net income (loss) per share of Class A, B and C common stock $ 0.02 $ 0.02 |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of 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 June 30, 2023 2022 Net revenues North America $ 826,652 $ 909,356 EMEA 226,641 205,181 Asia-Pacific 202,232 176,665 Latin America 55,739 49,443 Corporate Other 5,748 8,412 Total net revenues $ 1,317,012 $ 1,349,057 |
Schedule of Reconciliation of Operating Profit (Loss) and Long Lived Assets from Segments to Consolidated | Three Months Ended June 30, 2023 2022 Operating income (loss) North America $ 158,051 $ 189,924 EMEA 30,949 18,181 Asia-Pacific 15,398 19,945 Latin America 5,777 6,234 Corporate Other (189,245) (199,801) Total operating income (loss) 20,930 34,483 Interest expense, net (1,626) (6,005) Other income (expense), net (6,385) (14,241) Income (loss) before income taxes $ 12,919 $ 14,237 |
Allowance For Doubtful Accoun_3
Allowance For Doubtful Accounts - Schedule of Financing Receivable, Allowance for Credit Loss (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Allowance for doubtful accounts - within accounts receivable, net | |
Beginning balance | $ 10,813 |
Increases (decreases) to costs and expenses | 1,496 |
Write-offs, net of recoveries | 79 |
Ending balance | 12,388 |
Allowance for doubtful accounts - within prepaid expenses and other current assets | |
Beginning balance | 227 |
Increases (decreases) to costs and expenses | 0 |
Write-offs, net of recoveries | 0 |
Ending balance | $ 227 |
Property and Equipment, Net- Co
Property and Equipment, Net- Components Of Property And Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | $ 1,750,312 | $ 1,736,679 |
Accumulated depreciation | (1,071,198) | (1,063,943) |
Property and equipment, net | 679,114 | 672,736 |
Leasehold and tenant improvements | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | 476,002 | 462,721 |
Furniture, fixtures and displays | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | 287,804 | 289,539 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | 69,256 | 48,632 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | 389,444 | 380,586 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | 131,414 | 132,301 |
Plant equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | 178,197 | 178,194 |
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 | 117,913 | 143,243 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal property and equipment | $ 16,656 | $ 17,837 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 35.8 | $ 33.9 |
Leases - Leases Costs (Details)
Leases - Leases Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Leases [Abstract] | |||
Operating lease costs | $ 41,091 | $ 35,555 | |
Variable lease costs | $ 2,756 | 3,623 | |
Weighted average remaining lease term (in years) | 7 years 11 months 26 days | 8 years 10 days | |
Weighted average discount rate | 4.86% | 4.69% | |
Operating cash outflows from operating leases | $ 43,614 | 41,865 | |
Leased assets obtained in exchange for new operating lease liabilities | $ 5,380 | $ 19,589 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2024 (nine months ending) | $ 129,494 |
2025 | 161,177 |
2026 | 128,644 |
2027 | 108,006 |
2028 | 91,134 |
2029 and thereafter | 363,107 |
Total lease payments | 981,562 |
Less: Interest | 164,563 |
Total present value of lease liabilities | $ 816,999 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
Leases not yet commenced | $ 6.4 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 481,992 |
Effect of currency translation adjustment | (2,424) |
Goodwill, ending balance | 479,568 |
North America | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 301,371 |
Effect of currency translation adjustment | 0 |
Goodwill, ending balance | 301,371 |
EMEA | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 101,096 |
Effect of currency translation adjustment | 1,561 |
Goodwill, ending balance | 102,657 |
Asia-Pacific | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 79,525 |
Effect of currency translation adjustment | (3,985) |
Goodwill, ending balance | 75,540 |
Latin America | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 0 |
Effect of currency translation adjustment | 0 |
Goodwill, ending balance | $ 0 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule Of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 10,288 | $ 12,911 |
Accumulated Amortization | (6,266) | (8,422) |
Net Carrying Amount | 4,022 | 4,489 |
Indefinite-lived intangible assets | 4,594 | 4,451 |
Intangible assets, net | 8,616 | 8,940 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,536 | |
Accumulated Amortization | (2,503) | |
Net Carrying Amount | 33 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,559 | 8,711 |
Accumulated Amortization | (4,643) | (4,377) |
Net Carrying Amount | 3,916 | 4,334 |
Lease-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,729 | 1,664 |
Accumulated Amortization | (1,623) | (1,542) |
Net Carrying Amount | $ 106 | $ 122 |
Minimum | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives from Date of Acquisitions (in 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 |
Maximum | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives from Date of Acquisitions (in 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 |
Intangible Assets, Net - Narrat
Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 0.4 | $ 0.5 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Reduction for fully amortized intangible assets | 2.5 | |
Reduction of accumulated amortization for fully amortized assets | $ 2.5 |
Intangible Assets, Net - Estima
Intangible Assets, Net - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 (nine months ending) | $ 1,128 | |
2025 | 1,504 | |
2026 | 1,381 | |
2027 | 9 | |
2028 | 0 | |
2029 and thereafter | 0 | |
Net Carrying Amount | $ 4,022 | $ 4,489 |
Supply Chain Finance Program (D
Supply Chain Finance Program (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 |
Payables and Accruals [Abstract] | ||
Outstanding payment obligations | $ 276.8 | $ 250.8 |
Credit Facility and Other Lon_3
Credit Facility and Other Long Term Debt - Components of Convertible Senior Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||
Total principal payments due | $ 680,919 | $ 680,919 | |
Total amount outstanding | 675,026 | 674,478 | |
Current maturities of long-term debt (Note 9) | 80,919 | 0 | |
Non-current portion of long-term debt | 594,107 | 674,478 | |
Credit Facility | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs - Credit facility | (3,385) | (3,632) | |
1.50% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Current maturities of long-term debt (Note 9) | $ 80,919 | 0 | |
Stated interest rate, percentage | 1.50% | ||
1.50% Convertible Senior Notes | Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total principal payments due | $ 80,919 | 80,919 | |
Unamortized debt issuance costs - Credit facility | $ (165) | (267) | |
Stated interest rate, percentage | 1.50% | ||
3.25% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Total principal payments due | $ 600,000 | 600,000 | |
Unamortized debt discount on Senior Notes | (750) | (814) | |
Unamortized debt issuance costs - Credit facility | $ (1,593) | $ (1,728) | $ (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) | 3 Months Ended | |
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Outstanding under credit facility | $ 680,919,000 | $ 680,919,000 |
LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Variable rate (as percent) | 1% | |
LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Variable rate (as percent) | 1.75% | |
Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Variable rate (as percent) | 0% | |
Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Variable rate (as percent) | 0.75% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 | |
Letters of credit outstanding | $ 4,300,000 | 4,400,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1 year | |
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 |
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 | 0.175% |
Credit Facility and Other Lon_5
Credit Facility and Other Long Term Debt - Senior Notes, Capped Call Transaction and Interest Expense (Details) | 1 Months Ended | |||
May 31, 2020 d $ / shares | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2016 USD ($) | |
1.50% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate, percentage | 1.50% | |||
Aggregate principal | $ 80,900,000 | |||
Initial conversion rate | 0.1018589 | |||
Debt conversion price (in dollars per share) | $ / shares | $ 9.82 | |||
Trading days (whether or not consecutive) | d | 20 | |||
Consecutive trading days | d | 30 | |||
Percentage of stock price | 130% | |||
Business period | 5 days | |||
Measurement period | 5 days | |||
Measurement period, percentage | 98% | |||
Redemption price, percentage of principal repurchased | 100% | |||
Cap call transaction cap price per share (in dollars per share) | $ / shares | $ 13.4750 | |||
Premium over last reported sale price, percentage | 75% | |||
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 | $ 1,593,000 | $ 1,728,000 | $ 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 | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Disclosure [Abstract] | ||
Interest income (expense), net | $ (1,626) | $ (6,005) |
Credit Facility and Other Lon_7
Credit Facility and Other Long Term Debt - Scheduled Maturities Of Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 (nine months ending) | $ 0 | |
2025 | 80,919 | |
2026 | 0 | |
2027 | 600,000 | |
2028 | 0 | |
2029 and thereafter | 0 | |
Total scheduled maturities of long-term debt | 680,919 | $ 680,919 |
Current maturities of long-term debt (Note 9) | $ 80,919 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 2 Months Ended | |||||
Mar. 16, 2023 case | Jan. 27, 2021 case | Dec. 17, 2019 case | Oct. 21, 2020 case | Jul. 31, 2018 case | Jun. 30, 2023 USD ($) | Mar. 23, 2017 case | |
Loss Contingencies [Line Items] | |||||||
Estimated liability | $ | $ 20 | ||||||
Defense and investigation costs previously paid. | $ | $ 10 | ||||||
Under Armour Securities Litigation, Case No. 17-cv-00388-RDB | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Pending claims | 3 | ||||||
Securities Class Actions | |||||||
Loss Contingencies [Line Items] | |||||||
Number of complaints | 2 | ||||||
Derivative Complaints | |||||||
Loss Contingencies [Line Items] | |||||||
Number of complaints | 4 | 4 | 2 | 2 | |||
Number of complaints dismissed | 1 | ||||||
Derivative Complaints | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of complaints | 3 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended | |||
Feb. 23, 2022 USD ($) | Jun. 30, 2023 USD ($) vote $ / shares shares | Jun. 30, 2022 USD ($) shares | Mar. 31, 2023 $ / shares shares | |
Class of Stock [Line Items] | ||||
Stock repurchased and retired during period, value | $ | $ 0 | $ 25,000,000 | ||
Class C Common Stock Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ | $ 500,000,000 | |||
Stock repurchase program, period in force | 2 years | |||
Stock repurchased and retired during period, shares (in shares) | 34,900,000 | |||
Stock repurchased and retired during period, value | $ | $ 425,000,000 | |||
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | ||
Commons stock, par value (in dollars per share) | $ / shares | $ 0.0003 | $ 0.0003 | ||
Number of votes per share | vote | 1 | |||
Shares issued upon conversion (in shares) | 1 | |||
Class B Convertible Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock, authorized (in shares) | 34,450,000 | 34,450,000 | ||
Commons stock, par value (in dollars per share) | $ / shares | $ 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% | |||
Common Class C | ||||
Class of Stock [Line Items] | ||||
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | ||
Commons stock, par value (in dollars per share) | $ / shares | $ 0.0003 | $ 0.0003 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock repurchased and retired during period, shares (in shares) | 0 | 6,700,000 |
Revenues - Net Revenues By Prod
Revenues - Net Revenues By Product Category and Distribution Channels (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,317,012 | $ 1,349,057 |
Wholesale | ||
Segment Reporting Information [Line Items] | ||
Revenues | 741,958 | 791,686 |
Direct-to-consumer | ||
Segment Reporting Information [Line Items] | ||
Revenues | 544,234 | 520,824 |
Corporate Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 5,748 | 8,412 |
Apparel | ||
Segment Reporting Information [Line Items] | ||
Revenues | 824,660 | 868,428 |
Footwear | ||
Segment Reporting Information [Line Items] | ||
Revenues | 363,670 | 347,251 |
Accessories | ||
Segment Reporting Information [Line Items] | ||
Revenues | 97,862 | 96,831 |
Net Sales | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,286,192 | 1,312,510 |
License revenues | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 25,072 | $ 28,135 |
Revenues - Customer Refund Liab
Revenues - Customer Refund Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Customer refund liability | ||
Disaggregation of Revenue [Line Items] | ||
Reserves for customer returns allowances markdowns and discounts | $ 136,017 | $ 160,533 |
Inventory associated with reserves for sales returns | ||
Disaggregation of Revenue [Line Items] | ||
Reserves for customer returns allowances markdowns and discounts | $ 32,925 | $ 40,661 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liability | $ 26.2 | $ 25.9 | |
Revenue recognized | $ 3.2 | $ 4.8 |
Other Employee Benefits (Detail
Other Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |||
401(k) contribution matching expense | $ 3.4 | $ 1.6 | |
Deferred compensation plan obligations | 14.6 | $ 14.1 | |
TOLI policies held by the Rabbi Trust | $ 8 | $ 7.7 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Compensation Plans (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 USD ($) installment $ / shares shares | Jun. 30, 2022 USD ($) shares | Mar. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ | $ 11,777 | $ 11,375 | |
Number of equal annual vesting installments | installment | 3 | ||
Options outstanding, number of underlying shares (in shares) | 1,578,000 | 1,578,000 | |
Marketing and Consulting Partners | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ | $ 77,700 | ||
Unrecognized compensation costs, period for recognition | 10 years 8 months 23 days | ||
Additional share based compensation | $ | $ 2,300 | 800 | |
Employees and Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ | 10,300 | 11,400 | |
Unrecognized compensation costs | $ | $ 101,900 | ||
Unrecognized compensation costs, period for recognition | 2 years 3 months 14 days | ||
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) | 800,000 | ||
2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of stock awards | $ | $ 150 | ||
Vesting percentage | 100% | ||
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) | 17,400,000 | ||
2005 Plan | Performance Based Restricted Stock Units | Certain Executives and Key Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional share based compensation | $ | $ 300 | $ 400 | |
Shares granted (in shares) | 1,000,000 | ||
Shares granted (in dollars per share) | $ / shares | $ 9.13 | ||
2005 Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (over) | 2 years | ||
2005 Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (over) | 5 years | ||
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% | ||
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) | 1,000,000 | ||
ESPP shares granted during period (in shares) | 145,200 | 121,400 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule Of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Mar. 31, 2023 | |
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) | 1,503,000 | |
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) | $ 19.66 | |
Weighted average remaining contractual life (in years) | 4 years 6 months 25 days | 4 years 9 months 25 days |
Options exercisable, weighted average remaining contractual life (in years) | 4 years 5 months 19 days | |
Options outstanding, total intrinsic value | $ 0 | $ 0 |
Options exercisable, end of year | $ 0 |
Stock Based Compensation - Sc_2
Stock Based Compensation - Schedule Of Restricted Stock And Restricted Stock Units (Details) - Restricted Stock and Restricted Stock Units | 3 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Restricted Shares | |
Outstanding, beginning of year (in shares) | shares | 7,658,000 |
Granted (in shares) | shares | 15,863,000 |
Forfeited (in shares) | shares | (488,000) |
Vested (in shares) | shares | (873,000) |
Outstanding, end of year (in shares) | shares | 22,160,000 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning of year (in dollars per share) | $ / shares | $ 13.01 |
Granted (in dollars per share) | $ / shares | 7.84 |
Forfeited (in dollars per share) | $ / shares | 12.12 |
Vested (in dollars per share) | $ / shares | 14.21 |
Outstanding, end of year (in dollars per share) | $ / shares | $ 9.28 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets And (Liabilities) Measured At Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
TOLI policies held by the Rabbi Trust (see Note 13) | $ 8,000 | $ 7,700 |
Deferred Compensation Plan obligations (see Note 13) | (14,600) | (14,100) |
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 |
Deferred Compensation Plan obligations (see Note 13) | 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) | 8,042 | 7,691 |
Deferred Compensation Plan obligations (see Note 13) | (14,641) | (14,082) |
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 |
Deferred Compensation Plan obligations (see Note 13) | 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 |
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) | (18,403) | (3,127) |
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 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 31, 2023 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value | $ 78.2 | $ 85.8 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Fair value | $ 551.6 | $ 553.9 |
Risk Management and Derivativ_3
Risk Management and Derivatives - Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 22,084 | $ 23,092 |
Derivative liabilities | 40,225 | 27,391 |
Designated as Hedging Instrument | Foreign currency contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 19,845 | 22,473 |
Designated as Hedging Instrument | Foreign currency contracts | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2,239 | 619 |
Designated as Hedging Instrument | Foreign currency contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 30,863 | 21,622 |
Designated as Hedging Instrument | Foreign currency contracts | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 9,362 | 5,769 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5,818 | 3,408 |
Derivative liabilities | 8,988 | 6,567 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5,818 | 3,408 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 8,988 | 6,563 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ 4 |
Risk Management and Derivativ_4
Risk Management and Derivatives - Hedging Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net revenues | $ 1,317,012 | $ 1,349,057 |
Cost of goods sold | 709,276 | 718,860 |
Interest income (expense), net | (1,626) | (6,005) |
Other income (expense), net | (6,385) | (14,241) |
Net revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 4,475 | 6,554 |
Cost of goods sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 294 | (1,948) |
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 | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Asset (Liability) Rollforward [Roll Forward] | ||
Derivative assets (liabilities), beginning balance | $ (5,222) | $ (454) |
Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | (10,681) | 56,258 |
Amount of gain (loss) reclassified from other comprehensive income (loss) into income | 4,760 | 4,597 |
Derivative assets (liabilities), ending balance | (20,663) | 51,207 |
Foreign currency contracts | ||
Derivative Asset (Liability) Rollforward [Roll Forward] | ||
Derivative assets (liabilities), beginning balance | (4,764) | 41 |
Amount of gain (loss) recognized in other comprehensive income (loss) on derivatives | (10,681) | 56,258 |
Amount of gain (loss) reclassified from other comprehensive income (loss) into income | 4,769 | 4,606 |
Derivative assets (liabilities), ending balance | (20,214) | 51,693 |
Interest rate swaps | ||
Derivative Asset (Liability) Rollforward [Roll Forward] | ||
Derivative assets (liabilities), beginning balance | (458) | (495) |
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 balance | $ (449) | $ (486) |
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 | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative [Line Items] | ||
Other income (expense), net | $ (6,385) | $ (14,241) |
Other income (expense), net | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) on Fair Value Hedge Activity | $ (2,312) | $ (4,002) |
Risk Management and Derivativ_7
Risk Management and Derivatives - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Derivative [Line Items] | ||
Minimum maturity | 1 month | |
Maximum maturity | 24 months | |
Foreign currency contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | $ 430 | $ 396.7 |
Cash Flow Hedges | Foreign currency contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 1,071.8 | $ 799.7 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | 30.70% | 39.70% |
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 | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator | ||
Net income (loss) - Basic | $ 8,549 | $ 7,682 |
Interest on Convertible Senior Notes due 2024, net of tax | 225 | 225 |
Net income (loss) - Diluted | $ 8,774 | $ 7,907 |
Denominator | ||
Weighted average common shares outstanding Class A, B and C - Basic (in shares) | 444,872,000 | 458,415,000 |
Dilutive effect of Class A, B, and C securities (in shares) | 1,392,000 | 1,510,000 |
Dilutive effect of Convertible Senior Notes due 2024 (in shares) | 8,242,000 | 8,242,000 |
Weighted average common shares and dilutive securities outstanding Class A, B, and C (in shares) | 454,506,000 | 468,167,000 |
Basic net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ 0.02 | $ 0.02 |
Diluted net income (loss) per share of Class A, B and C common stock (in dollars per share) | $ 0.02 | $ 0.02 |
Stock Options and RSUs Representing Class A and Class C Common Stock | ||
Denominator | ||
Class A and Class C securities excluded as anti-dilutive (in shares) | 22,592,000 | 8,458,000 |
Segment Data - Geographic Distr
Segment Data - Geographic Distribution Of The Company's Net Revenues And Operating Income (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 USD ($) industry | Jun. 30, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of industries per segment | industry | 1 | |
Net revenues | $ 1,317,012 | $ 1,349,057 |
Operating income (loss) | 20,930 | 34,483 |
Interest income (expense), net | (1,626) | (6,005) |
Other income (expense), net | (6,385) | (14,241) |
Income (loss) before income taxes | 12,919 | 14,237 |
Corporate Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 5,748 | 8,412 |
Operating income (loss) | (189,245) | (199,801) |
North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 826,652 | 909,356 |
Operating income (loss) | 158,051 | 189,924 |
EMEA | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 226,641 | 205,181 |
Operating income (loss) | 30,949 | 18,181 |
Asia-Pacific | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 202,232 | 176,665 |
Operating income (loss) | 15,398 | 19,945 |
Latin America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 55,739 | 49,443 |
Operating income (loss) | $ 5,777 | $ 6,234 |