Under Armour 2005 Annual Report Download - page 55

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Under Armour, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements—(Continued)
(amounts in thousands, except per share and share amounts)
3. Inventories
Inventories consisted of the following:
December 31,
2005 2004
Finished goods .................................................... $57,518 $50,802
Raw materials .................................................... 881 1,824
Work-in-process .................................................. 95 399
Total inventory ................................................... 58,494 53,025
Inventory reserve .................................................. (4,887) (4,970)
Total inventory ............................................... $53,607 $48,055
4. Property and Equipment
Property and equipment consisted of the following:
December 31,
2005 2004
Furniture and fixtures .............................................. $12,262 $ 7,017
Office equipment and software ...................................... 5,290 3,447
Plant equipment .................................................. 4,582 2,834
Leasehold improvements ........................................... 4,058 3,151
Construction in progress ........................................... 4,917 1,825
Other .......................................................... 24 52
31,133 18,326
Accumulated depreciation and amortization ............................ (10,268) (4,115)
Property and equipment, net ........................................ $20,865 $14,211
Construction in progress primarily includes software costs relative to systems not yet placed in use and
in-store fixtures not yet placed in service.
Depreciation and amortization expense related to property and equipment was $6,224, $3,165 and $1,024
for the years ended December 31, 2005, 2004 and 2003, respectively.
5. Revolving Credit Facility and Long Term Debt
In September 2005, the Company entered into an amended and restated financing agreement with a lending
institution which terminates in 2010. Under this financing agreement, the Company is required to maintain
prescribed levels of tangible net worth as defined in the agreement. This financing agreement is collateralized by
substantially all of the assets of the Company. The Company paid and recorded $1,061 in deferred financing
costs as part of the financing agreement which was comprised of both a $25,000 term note and a $75,000
revolving credit facility.
In November 2005, the Company repaid the $25,000 term note plus interest with proceeds from the initial
public offering (see note 8). The term note portion of the financing agreement was then terminated and as such
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