Under Armour 2010 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2010 Under Armour annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

As of December 31, 2010 and 2009, the total liability for unrecognized tax benefits, including related
interest and penalties, was approximately $6.4 million and $3.5 million, respectively. The following table
represents a reconciliation of the Company’s total unrecognized tax benefits balances, excluding interest and
penalties, for the years ended December 31, 2010, 2009 and 2008:
Year Ended December 31,
(In thousands) 2010 2009 2008
Beginning of year $2,598 $1,675 $1,781
Increases as a result of tax positions taken in a prior period — — —
Decreases as a result of tax positions taken in a prior period — — —
Increases as a result of tax positions taken during the current
period 2,632 1,163 281
Decreases as a result of tax positions taken during the current
period — — —
Decreases as a result of settlements during the current period — (43) —
Reductions as a result of a lapse of statute of limitations
during the current period (65) (197) (387)
End of year $5,165 $2,598 $1,675
As of December 31, 2010, $4.3 million of unrecognized tax benefits, excluding interest and penalties, would
impact the Company’s effective tax rate if recognized.
As of December 31, 2010, 2009 and 2008, the liability for unrecognized tax benefits included $1.3 million,
$0.9 million and $0.8 million for the accrual of interest and penalties, respectively. For each of the years ended
December 31, 2010, 2009 and 2008, the Company recorded $0.3 million, $0.2 million and $0.2 million for the
accrual of interest and penalties in its consolidated statement of income.
The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign
jurisdictions. The majority of the Company’s returns for years before 2006 are no longer subject to U.S. federal,
state and local or foreign income tax examinations by tax authorities. The Company may incur a decrease in the
total unrecognized tax benefits within the next twelve months as a result of the possible expiration of certain
statutes of limitations for particular tax positions.
62