Under Armour 2008 Annual Report Download - page 76

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As of December 31, 2008 and 2007, the total liability for uncertain tax positions, including related interest
and penalties, was approximately $2.5 million and $2.6 million, respectively. The following table represents a
reconciliation of the Company’s total unrecognized tax benefits balances, excluding interest and penalties, for the
years ended December 31, 2008 and 2007:
Year Ended December 31,
(In thousands) 2008 2007
Beginning of year $1,781 $1,454
Increases as a result of tax positions taken in a prior period — —
Decreases as a result of tax positions taken in a prior period — —
Increases as a result of tax positions taken during the current period 281 327
Decreases as a result of tax positions taken during the current
period — —
Decreases as a result of settlements during the current period — —
Reductions as a result of a lapse of statute of limitations during the
current period (387) —
End of year $1,675 $1,781
As of December 31, 2008, $1.1 million of unrecognized tax benefits, excluding interest and penalties, would
impact our effective tax rate if recognized.
As of both December 31, 2008 and 2007, the liability for uncertain tax positions included $0.8 million for
the accrual of interest and penalties. For each of the years ended December 31, 2008 and 2007, the Company
recorded $0.2 million for the accrual of interest and penalties in its consolidated statement of income.
The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign
jurisdictions. The majority of the Company’s returns are no longer subject to U.S. federal, state and local or
foreign income tax examinations by tax authorities for years before 2005. The Company may incur a decrease in
the total unrecognized tax benefits within the next twelve months as a result of the possible expiration of certain
statutes of limitations for particular tax positions.
11. Earnings per Share
The following represents a reconciliation from basic earnings per share to diluted earnings per share:
Year Ended December 31,
(In thousands, except per share amounts) 2008 2007 2006
Numerator
Net income $38,229 $52,558 $38,979
Denominator
Weighted average common shares outstanding 48,569 48,021 46,983
Effect of dilutive securities 1,321 1,938 2,604
Weighted average common shares and dilutive securities
outstanding 49,890 49,959 49,587
Earnings per share - basic $ 0.79 $ 1.09 $ 0.83
Earnings per share - diluted $ 0.77 $ 1.05 $ 0.79
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