Under Armour 2005 Annual Report Download - page 57

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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)
In December 2003, the Company entered into a master loan and security agreement that is subordinate to the
revolving credit facility. Under this agreement the Company borrowed $1,250 for the purchase of qualifying
furniture and fixtures. This agreement bears interest at 6.97% annually, and principal and interest payments are
due monthly through February 2006. At December 31, 2005, the outstanding principal balance was $96 which
will be repaid in 2006. At December 31, 2004, the outstanding principal balance was $733.
In 2001 and again in 2003, the Company entered into subordinated debt agreements, each for $3,000
maturing June 2008 and April 2006, respectively. Interest accrued from 13.5% through 20.0% per year. In
September 2003, the Company repaid all principal and interest due under both of these subordinated debt
agreements with proceeds from the sale of Convertible Common Stock held by Rosewood entities and Series A
Preferred Stock (see note 8).
Interest expense for all debt was $3,188, $1,290 and $2,220 for the years ended December 31, 2005, 2004
and 2003, respectively. During 2005 and 2003, in connection with the repayment of debt, $265 and $99,
respectively, in deferred financing costs were written off and included in interest expense. For the years ended
December 31, 2005, 2004 and 2003 the Company amortized and included in interest expense $57, $48 and $15,
respectively, of deferred financing costs.
6. Obligations under Capital and Operating Leases
The Company leases warehouse space, office facilities, space for our retail outlet stores and certain
equipment under non-cancelable operating and capital leases. The leases expire at various dates through 2010,
excluding extensions at our option, and certain various provisions for rental adjustments.
The following is a schedule of future minimum lease payments for capital and non-cancelable operating
leases as of December 31, 2005:
Operating Capital
2006 .............................................. $3,604 $ 2,000
2007 .............................................. 3,021 885
2008 .............................................. 2,137 508
2009 .............................................. 666 378
2010 .............................................. 132 99
Total future minimum lease payments .................... $9,560 3,870
Less amount representing interest ....................... (314)
Present value of future minimum capital lease payments ..... 3,556
Less current maturities of obligations under capital leases .... (1,841)
Long term lease obligations ............................ $1,715
Rent expense for the years ended December 31, 2005, 2004 and 2003 was $3,237, $1,881 and $898,
respectively, under the operating lease agreements.
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