Under Armour 2015 Annual Report Download - page 83

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11. Earnings per Share
The calculation of earnings per share for common stock shown below excludes the income attributable to
outstanding restricted stock awards from the numerator and excludes the impact of these awards from the
denominator. The following is a reconciliation of basic earnings per share to diluted earnings per share:
Year Ended December 31,
(In thousands, except per share amounts) 2015 2014 2013
Numerator
Net income $232,573 $208,042 $162,330
Denominator
Weighted average common shares outstanding 215,498 213,227 210,696
Effect of dilutive securities 5,370 6,153 5,262
Weighted average common shares and dilutive securities outstanding 220,868 219,380 215,958
Earnings per share—basic $ 1.08 $ 0.98 $ 0.77
Earnings per share—diluted $ 1.05 $ 0.95 $ 0.75
Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Stock
options, restricted stock units and warrants representing 770.0 thousand, 22.6 thousand and 116.9 thousand
shares of common stock were outstanding for the years ended December 31, 2015, 2014 and 2013, respectively,
but were excluded from the computation of diluted earnings per share because their effect would be anti-dilutive.
12. Stock-Based Compensation
Stock Compensation Plans
The Under Armour, Inc. Second Amended and Restated 2005 Omnibus Long-Term Incentive Plan (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. Stock options and restricted stock and restricted
stock unit awards under the 2005 Plan generally vest ratably over a two to four year period. The contractual term
for stock options is generally ten years from the date of grant. The Company generally receives a tax deduction
for any ordinary income recognized by a participant in respect to an award under the 2005 Plan. The 2005 Plan
terminates in 2025. As of December 31, 2015, 18.1 million shares are available for future grants of awards under
the 2005 Plan.
Total stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013 was $60.4
million, $50.8 million and $43.2 million, respectively. As of December 31, 2015, the Company had $46.3 million
of unrecognized compensation expense expected to be recognized over a weighted average period of 1.1 years.
This unrecognized compensation expense does not include any expense related to performance-based restricted
stock units and stock options for which the performance targets have not been deemed probable as of
December 31, 2015. Refer to “Stock Options” and “Restricted Stock and Restricted Stock Units” below for
further information on these awards.
Employee Stock Purchase Plan
The Company’s Employee Stock Purchase Plan (the “ESPP”) allows for the purchase of Class A 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 December 31, 2015, 2.7 million shares are available for future purchases under the ESPP.
During the years ended December 31, 2015, 2014 and 2013, 103.3 thousand, 87.6 thousand and 108.4 thousand
shares were purchased under the ESPP, respectively.
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