Under Armour 2005 Annual Report Download - page 64

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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)
The following table summarizes information about stock options outstanding and exercisable for the year
ended December 31, 2005:
(Shares in thousands) Options Outstanding Options Exercisable
Range of
Exercise Prices
Number of
Underlying
Shares
Weighted-
Average
Exercise Price
Per Share
Weighted-
Average
Remaining
Contractual
Life (Years)
Number of
Underlying
Shares
Weighted-
Average
Exercise Price
Per Share
December 31, 2005
$0.17 727 $ 0.17 5.41 727 $ 0.17
$0.75 - $0.83 316 0.76 6.11 271 0.75
$1.77 - $2.65 2,442 2.34 4.92 185 2.04
$10.77 - $13.00 730 11.43 4.67 60 12.44
4,215 1,243
12. Other Employee Benefits
The Company offers a 401(k) Deferred Compensation plan for the benefit of eligible employees. Employee
contributions are voluntary and subject to Internal Revenue Service limitations. The Company matches a portion
of the participant’s contribution and recorded expense for the years ended December 31, 2005, 2004 and 2003, of
$382, $130 and $99, respectively. Shares of the Company’s Class A Common Stock are not an investment option
in this plan.
The Employee Stock Purchase Plan was approved in 2005 and 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 Employee Stock Purchase Plan. There are 1,000,000 shares reserved for future issuance under the Employee
Stock Purchase Plan. Employees will be able to participate in the Employee Stock Purchase Plan beginning in
2006. In 2005, a Deferred Compensation Plan was approved. This plan allows a select group of management or
highly compensated employees, as requested by the employee and approved by the Compensation Committee, to
make an annual base salary and/or bonus deferral for that specific year. The employee shall be vested in all
amounts credited to his or her account, as of the date such amounts are credited to such employee’s account. At
December 31, 2005, no amounts are included on the balance sheet relating to this plan.
13. Related Party Transactions
In 2005, the Company entered into an agreement to license a software system with a vendor whose CEO is a
director of the Company. Through December 31, 2005 the Company has paid $1,383 in licensing fees,
maintenance fees, and development costs. Amounts payable to this related party as of December 31, 2005 were
less than $100.
One of our directors is a partner in a law firm utilized by the Company. In 2005, the Company paid
approximately $330 to this law firm in connection with legal services performed.
14. Segment Data and Related Information
Operating segments are defined as components of an enterprise about which separate financial information
is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate
resources and in accessing performance. The Company operates exclusively in the consumer products industry in
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