Under Armour 2014 Annual Report Download - page 77

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F
inancial assets and (liabilities) measured at fair value are set forth in the table below
:
December 31, 201
4
December 31, 2013
(
In t
h
ousan
d
s
)
L
eve
l
1
L
eve
l2
Leve
l
3
L
eve
l
1
L
eve
l2
Leve
l
3
Derivative foreign currency forward contracts (see Note 14)
$
—
$
806
$
—
$
—
$
12
$
—
Interest rate swa
p
contracts (see Note 14) — (
6
07) — — 1,087 —
T
OLI policies held by the Rabbi Trust (see Note 13) — 4,734 — — 4,62
5
—
Deferred Compensation Plan obligations (see Note 13) — (4,
5
2
5
) — — (3,338)
—
F
air values of the financial assets and liabilities listed above are determined using inputs that use as thei
r
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 forward contracts represent gains an
d
losses on derivative contracts, which is the net difference between the U.S. dollar value to be received or
p
aid at
the contracts’ settlement date and the U.S. dollar value of the foreign currency to be sold or purchased at th
e
current forward exchange rate. The interest rate swap contract represents gains and losses on the derivative
contract, which is the net difference between the fixed interest to be
p
aid and variable interest to be received ove
r
the term of the contract based on current market rates. The fair value of the trust owned life insurance (“TOLI”)
p
olicies held by the Rabbi Trust is 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
p
artici
p
ants in the Under Armour, Inc. Deferred Com
p
ensation Plan (the “Deferred Com
p
ensation Plan”), which
r
epresent the underlying liabilities to participants in the Deferred Compensation Plan. Liabilities under the
Deferred Com
p
ensation Plan are recorded at amounts due to
p
artici
p
ants, based on the fair value of
p
artici
p
ants’
selected investments
.
The carrying value of the Company’s long term debt approximated its fair value as of December 31, 2014
and 2013. The fair value of the Company’s long term debt was estimated based upon quoted prices for simila
r
instruments (Level 2 in
p
ut)
.
1
0. Prov
i
s
i
on
f
or Income Taxes
I
ncome before income taxes is as follows
:
Year Ended December 31,
(In t
h
ousan
d
s) 2
0
14 2013 2
0
12
Income before income taxes:
U
nited States
$
269,503
$
196,558
$
155,514
Foreign 72,707 64,43
5
47,92
5
Total
$
342
,
210
$
260
,
993
$
203
,
43
9
6
7