Under Armour 2014 Annual Report Download - page 26

We may need to ra
i
se add
i
t
i
onal cap
i
tal requ
i
red to grow our bus
i
ness, and we may not be able to ra
i
s
e
ca
pi
tal on terms acce
p
table to us or at all.
Grow
i
n
g
an
d
operat
i
n
g
our
b
us
i
ness w
ill
requ
i
re s
ig
n
ifi
cant cas
h
out
l
a
y
san
d
cap
i
ta
l
expen
di
tures an
d
comm
i
tments. I
f
cas
h
on
h
an
d
an
d
cas
hg
enerate
df
rom operat
i
ons are not su
ffi
c
i
ent to meet our cas
h
r
equ
i
rements, we w
ill
nee
d
to see
k
a
ddi
t
i
ona
l
cap
i
ta
l
, potent
i
a
lly
t
h
rou
gh d
e
b
t or equ
i
t
yfi
nanc
i
n
g
,to
f
un
d
our
g
rowt
h
.Wema
y
not
b
ea
bl
etora
i
se nee
d
e
d
cas
h
on terms accepta
bl
etousorata
ll
.F
i
nanc
i
n
g
ma
yb
e on terms
t
h
at are
dil
ut
i
ve or potent
i
a
lly dil
ut
i
ve to our stoc
kh
o
ld
ers, an
d
t
h
epr
i
ces at w
hi
c
h
new
i
nvestors wou
ld b
e
w
illi
n
g
to purc
h
ase our secur
i
t
i
es ma
yb
e
l
ower t
h
an t
h
e current pr
i
ce per s
h
are o
f
our common stoc
k
.T
h
e
h
o
ld
ers o
f
new secur
i
t
i
es ma
y
a
l
so
h
ave r
igh
ts, pre
f
erences or pr
i
v
il
e
g
es w
hi
c
h
are sen
i
or to t
h
ose o
f
ex
i
st
i
n
g
h
o
ld
ers o
f
common stoc
k
.I
f
new sources o
ffi
nanc
i
n
g
are requ
i
re
d
,
b
ut are
i
nsu
ffi
c
i
ent or unava
il
a
bl
e, we w
ill be
r
equ
i
re
d
to mo
dify
our
g
rowt
h
an
d
operat
i
n
g
p
l
ans
b
ase
d
on ava
il
a
bl
e
f
un
di
n
g
,
if
an
y
,w
hi
c
h
wou
ld h
arm ou
r
a
bili
t
y
to
g
row our
b
us
i
ness
.
O
ur operat
i
ng results are sub
j
ect to seasonal and quarterly var
i
at
i
ons
i
n our net revenues and
i
ncome
f
rom o
p
erations, which could adversel
y
affect the
p
rice of our Class A Common Stock.
We
h
ave exper
i
ence
d
,an
d
expect to cont
i
nue to exper
i
ence, seasona
l
an
d
quarter
ly
var
i
at
i
ons
i
n our ne
t
r
evenues an
di
ncome
f
rom operat
i
ons. T
h
ese var
i
at
i
ons are pr
i
mar
ily
re
l
ate
d
to
i
ncrease
d
sa
l
es vo
l
ume o
f
our
p
ro
d
ucts
d
ur
i
n
g
t
h
e
f
a
ll
se
lli
n
g
season,
i
nc
l
u
di
n
g
our
high
er pr
i
ce co
ld
weat
h
er pro
d
ucts, a
l
on
g
w
i
t
h
a
l
ar
g
e
r
p
roport
i
on o
f high
er mar
gi
n
di
rect to consumer sa
l
es. T
h
ema
j
or
i
t
y
o
f
our net revenues were
g
enerate
dd
ur
i
n
g
t
he
l
ast two quarters
i
n eac
h
o
f
2014, 2013 an
d
2012, respect
i
ve
ly.
Our quarter
ly
resu
l
ts o
f
operat
i
ons ma
y
a
l
so
fl
uctuate s
ig
n
ifi
cant
ly
as a resu
l
to
f
a var
i
et
y
o
f
ot
h
er
f
actors
,
i
nc
l
u
di
n
g
, amon
g
ot
h
er t
hi
n
g
s, t
h
et
i
m
i
n
g
o
f
mar
k
et
i
n
g
expenses an
d
c
h
an
g
es
i
n our pro
d
uct m
i
x. Var
i
at
i
ons
i
n
weat
h
er con
di
t
i
ons ma
y
a
l
so
h
ave an a
d
verse e
ff
ect on our quarter
ly
resu
l
ts o
f
operat
i
ons. For examp
l
e, warme
r
t
h
an norma
l
weat
h
er con
di
t
i
ons t
h
rou
gh
out t
h
e
f
a
ll
or w
i
nter ma
y
re
d
uce sa
l
es o
f
our COLDGEA
R
®
li
ne,
l
eav
i
n
g
u
sw
i
t
h
excess
i
nventor
y
an
d
operat
i
n
g
resu
l
ts
b
e
l
ow our expectat
i
ons
.
A
s a resu
l
to
f
t
h
ese seasona
l
an
d
quarter
ly fl
uctuat
i
ons, we
b
e
li
eve t
h
at compar
i
sons o
f
our operat
i
n
g
resu
l
t
s
b
etween
diff
erent quarters w
i
t
hi
nas
i
n
gl
e
y
ear are not necessar
ily
mean
i
n
gf
u
l
an
d
t
h
at t
h
ese compar
i
sons canno
t
b
ere
li
e
d
upon as
i
n
di
cators o
f
our
f
uture per
f
ormance. An
y
seasona
l
or quarter
ly fl
uctuat
i
ons t
h
at we report
i
n
t
h
e
f
uture ma
y
not matc
h
t
h
e expectat
i
ons o
f
mar
k
et ana
ly
sts an
di
nvestors. T
hi
s cou
ld
cause t
h
epr
i
ce o
f
our
C
l
ass A Common Stoc
k
to
fl
uctuate s
ig
n
ifi
cant
ly.
O
ur
fi
nanc
i
al results could be adversely
i
mpacted by currency exchange rate
f
luctuat
i
ons
.
A
lthou
g
h we currentl
yg
enerate 8
6
.
6
% of our consolidated net revenues in the United States, as ou
r
i
nternat
i
ona
lb
us
i
ness
g
rows, our resu
l
ts o
f
operat
i
ons cou
ld b
ea
d
verse
ly i
mpacte
dby
c
h
an
g
es
i
n
f
ore
ign
currenc
y
exchan
g
e rates. Revenues and certain expenses in markets outside of the United States are reco
g
nized in
local forei
g
n currencies, and we are exposed to potential
g
ains or losses from the translation of those amounts
into U.S. dollars for consolidation into our financial statements. Similarl
y
, we are exposed to
g
ains and losses
r
esultin
g
from currenc
y
exchan
g
e rate fluctuations on transactions
g
enerated b
y
our forei
g
n subsidiaries in
currencies other than their local currencies. In addition, the business of our independent manufacturers ma
y
als
o
b
e disrupted b
y
currenc
y
exchan
g
e rate fluctuations b
y
makin
g
their purchases of raw materials more expensiv
e
and more difficult to finance. As a result, forei
g
n currenc
y
exchan
g
e rate fluctuations ma
y
adversel
y
impact ou
r
r
esults of operations
.
The value o
f
our brand and sales o
f
our products could be d
i
m
i
n
i
shed
if
we are assoc
i
ated w
i
th negat
i
v
e
p
ubl
i
c
i
t
y
.
We require our suppliers, manufacturers and licensees of our products to operate their businesses in
compliance with the laws and re
g
ulations that appl
y
to them as well as the social and other standards and policie
s
16