Under Armour 2014 Annual Report Download - page 79

Deferred tax assets and liabilities consisted of the following
:
December 31,
(
In t
h
ousan
d
s
)
20
1
4
2
01
3
D
e
f
erred tax asset
Stock-based com
p
ensation
$
35,161
$
25,47
2
Allowance for doubtful accounts and other reserves 24,774 1
6
,2
6
2
Foreign net operating loss carryforward 1
6
,302 13,829
Accrued ex
p
enses 11,398 3,40
3
Deferred rent 11,00
5
8,980
Inventory obsolescence reserves 8,198
6
,2
6
9
T
ax basis inventory adjustment
5
,84
55
,633
Foreign tax credits
5
,131 3,807
U
. S. net operating loss carryforward 4,733 10,119
State tax credits, net of federal tax im
p
act 4,24
55
,342
Deferred com
p
ensation 1,8
5
8 1,372
Other 4,
5
92
5
,88
9
Total deferred tax assets 133
,
242 106
,
377
L
ess: valuation allowance
(
1
5
,
55
0
)(
8,091
)
Total net deferred tax assets 117,
6
92 98,28
6
D
e
f
erred tax l
i
ab
i
l
i
t
y
Property, plant and equipment (17,638) (13,37
5
)
Intangible assets (7,010) (8,
6
27)
Pre
p
aid ex
p
enses (
6
,424) (
6
,380
)
Other (
6
12) (447
)
Total deferred tax liabilities
(
31,684
)(
28,829
)
Total deferred tax assets, net $ 86,008 $ 69,457
I
n connect
i
on w
i
t
h
t
h
e Compan
y
’s acqu
i
s
i
t
i
on o
f
MapM
y
F
i
tness (see Note 3), t
h
e Compan
y
acqu
i
re
d
$
10.5 million in deferred tax assets associated with approximatel
y
$42.5 million in federal and state net operatin
g
l
oss (“NOLs”) carr
yf
orwar
d
s. T
h
e acqu
i
s
i
t
i
on resu
l
te
di
na“c
h
an
g
eo
f
owners
hi
p” w
i
t
hi
nt
h
e mean
i
n
g
o
f
Sect
i
on 382 o
f
t
h
e Interna
l
Revenue Co
d
e, an
d
, as a resu
l
t, suc
h
NOLs are su
bj
ect to an annua
lli
m
i
tat
i
on
.
A
s of December 31, 2014, the Compan
y
had $4.7 million in deferred tax assets associated wit
h
approximatel
y
$23.1 million in federal and state net operatin
g
losses from the acquisition of MapM
y
Fitnes
s
r
ema
i
n
i
n
g
,w
hi
c
h
w
ill
exp
i
re
b
e
gi
nn
i
n
g
2029 t
h
rou
gh
2033. Base
d
upon t
h
e
hi
stor
i
ca
l
taxa
bl
e
i
ncome an
d
p
ro
j
ect
i
ons o
ff
uture taxa
bl
e
i
ncome over per
i
o
d
s
i
nw
hi
c
h
t
h
ese NOLs w
ill b
e
d
e
d
uct
ibl
e, t
h
e Compan
yb
e
li
eves
that it is more likel
y
than not that the Compan
y
will be able to full
y
utilize these NOLs before the carr
y
-forwar
d
p
eriods expire be
g
innin
g
2029 throu
g
h 2033, and therefore a valuation allowance is not required.
A
s of December 31, 2014, the Compan
y
had $16.3 million in deferred tax assets associated wit
h
approximatel
y
$62.0 million in forei
g
n net operatin
g
loss carr
y
forwards, which will expire be
g
innin
g
2016
throu
g
h 2020. As of December 31, 2014, the Compan
y
believes certain deferred tax assets associated wit
h
f
orei
g
n net operatin
g
loss carr
y
forwards will expire unused based on the Compan
y
’s pro
j
ections. Therefore,
a
valuation allowance of $6.1 million was recorded a
g
ainst the Compan
y
’s net deferred tax assets in 2014.
A
s of December 31, 2014, the Compan
y
had $5.1 million in deferred tax assets associated with forei
g
nta
x
credits. As of December 31, 2014 the Compan
y
believes that a portion of the forei
g
n taxes paid would not be
creditable a
g
ainst its future income taxes. Therefore, a valuation allowance of $1.3 million was recorded a
g
ainst
the Compan
y
’s net deferred tax assets in 2014
.
69