Under Armour 2009 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2009 Under Armour annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

4. Property and Equipment, Net
Property and equipment consisted of the following:
(In thousands)
December 31,
2009 2008
Furniture, fixtures and displays $ 43,538 $ 37,245
Software 25,548 20,106
Leasehold improvements 24,347 18,536
Plant equipment 18,153 16,705
Office equipment 16,298 13,369
Construction in progress 12,532 11,910
Other 2,166 2,236
Subtotal property and equipment 142,582 120,107
Accumulated depreciation and amortization (69,656) (46,559)
Property and equipment, net $ 72,926 $ 73,548
Construction in progress primarily includes costs incurred for software systems, leasehold improvements
and in-store fixtures and displays not yet placed in use.
Depreciation and amortization expense related to property and equipment was $25.3 million, $19.6 million
and $12.9 million for the years ended December 31, 2009, 2008, and 2007, respectively.
5. Intangible Assets, Net
The following table summarizes the Company’s intangible assets as of the periods indicated:
(In thousands)
December 31, 2009 December 31, 2008
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Intangible assets subject to amortization:
Footwear promotional rights $ 8,500 $(5,125) $3,375 $8,500 $(3,625) $4,875
Other 2,830 (524) $2,306 725 (130) 595
Total $11,330 $(5,649) $5,681 $9,225 $(3,755) $5,470
Intangible assets are amortized using estimated useful lives of 33 months to 89 months with no residual
value. Amortization expense, which is included in selling, general and administrative expenses, was $1.9 million,
$1.6 million and $1.5 million for the years ended December 31, 2009, 2008 and 2007, respectively. The
estimated amortization expense of the Company’s intangible assets is $2.0 million for each of the years ending
December 31, 2010 and 2011 and $0.9 million, $0.5 million and $0.1 million for the years ending December 31,
2012, 2013 and 2014, respectively.
6. Revolving Credit Facility and Long Term Debt
Revolving Credit Facility
In January 2009, the Company entered into a new revolving credit facility with certain lending institutions,
and terminated its prior revolving credit facility in order to increase the Company’s available financing and to
expand its lending syndicate. In conjunction with the termination of the prior revolving credit facility, the
Company repaid the then outstanding balance of $25.0 million.
56