Under Armour 2008 Annual Report Download - page 46

Investing Activities
Cash used in investing activities increased $8.0 million to $42.1 million for the year ended December 31,
2008 from $34.1 million for the same period in 2007. This increase in cash used in investing activities was
primarily due to additional capital expenditures for our branded concept shops, in-store fixtures and retail stores,
as well as the purchase of trust owned life insurance policies. This increase was partially offset by lower capital
expenditures for our distribution facilities year over year.
Cash used in investing activities increased $19.0 million to $34.1 million in 2007 from $15.1 million in
2006. This increase in cash used in investing activities primarily represents capital expenditures to improve and
to expand our distribution and corporate facilities, along with continued capital expenditures for our new
warehouse management system, our in-store fixtures, including our branded concept shops, and our direct to
consumer initiatives and other information technology initiatives.
Total capital investments were $41.1 million, $35.1 million and $18.2 million in 2008, 2007 and 2006,
respectively. Total capital investments in 2008, 2007 and 2006 included non-cash transactions of $2.5 million,
$1.1 million and $3.1 million, respectively (see non-cash investing activities included on the Consolidated
Statements of Cash Flows). Because we finance some capital investments through capital leases and other types
of obligations, total capital investments exceed capital expenditures as described above. Although we are
planning to grow our net revenues in 2009, we are currently planning our 2009 capital investments to be below
our total 2008 capital investments.
Financing Activities
Cash provided by financing activities increased $17.3 million to $35.4 million for the year ended
December 31, 2008 from $18.1 million for the same period in 2007. This increase was primarily due to additional
net proceeds received from our revolving credit and long term debt facilities, partially offset by lower excess tax
benefits from stock-based compensation arrangements.
Cash provided by financing activities increased $5.5 million to $18.1 million in 2007 from $12.6 million in
2006. This increase was primarily due to higher net proceeds received from our long term debt facilities, partially
offset by lower excess tax benefits from stock-based compensation arrangements.
New Revolving Credit Facility
In January 2009, we entered into a new revolving credit facility with certain lending institutions and
terminated our existing revolving credit facility in order to increase our available financing and to expand our
lending syndicate. In conjunction with the termination of the prior revolving credit facility, we repaid the then
outstanding balance of $25.0 million and did not borrow under the new revolving credit facility through
January 31, 2009. In the short term, we may consider additional borrowings under this revolving credit facility to
increase our cash position.
The new revolving credit facility has a term of three years and provided for an initial committed revolving
credit line of up to $180.0 million based on our qualified inventory and accounts receivable balances. Subsequent
to the initial closing of this revolving credit facility, the committed revolving credit line was increased to up to
$200.0 million with the addition of another lending institution to the lending syndicate. The commitment amount
under this revolving credit facility may be increased by an additional $50.0 million, subject to certain conditions
and approvals per the credit agreement. We incurred and capitalized approximately $1.5 million in deferred
financing costs in connection with this revolving credit facility. In accordance with Emerging Issues Task Force
(“EITF”) Issue No. 98-14 Debtor’s Accounting for Changes in Line-of-Credit or Revolving-Debt Arrangements,
unamortized deferred financing costs of $0.4 million relating to our prior revolving credit facility will be
expensed in the first quarter of 2009 and $0.1 million of deferred financing costs will be added to the deferred
financing costs of the new revolving credit facility and amortized over the life of this revolving credit facility.
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