Under Armour 2009 Annual Report Download - page 66

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Long Term Debt
The Company has long term debt agreements with various lenders to finance the acquisition or lease of qualifying
capital investments. Loans under these agreements are collateralized by a first lien on the related assets acquired. As
these agreements are not committed facilities, each advance is subject to approval by the lenders. Additionally, these
agreements include a cross default provision whereby an event of default under other debt obligations, including the
Company’s revolving credit facility, will be considered an event of default under these agreements. In addition, these
agreements require a prepayment fee if the Company pays outstanding amounts ahead of the scheduled terms. The
terms of the revolving credit facility limit the total amount of additional financing under these agreements to $35.0
million, of which $27.4 million was available as of December 31, 2009. At both December 31, 2009 and 2008, the
outstanding principal balance under these agreements was $20.1 million. Currently, advances under these agreements
bear interest rates which are fixed at the time of each advance. The weighted average interest rate on outstanding
borrowings was 5.9%, 6.1% and 6.5% for the years ended December 31, 2009, 2008 and 2007, respectively.
The following is a schedule of future principal payments on long term debt as of December 31, 2009:
(In thousands)
2010 $ 9,178
2011 5,769
2012 3,625
2013 962
2014 and thereafter 592
Total future principal payments on long term debt 20,126
Less current maturities of long term debt (9,178)
Long term debt obligations $10,948
The Company monitors the financial health and stability of its lenders under the revolving credit and long
term debt facilities, however continued significant instability in the credit markets could negatively impact
lenders and their ability to perform under their facilities.
Included in interest income (expense), net for the years ended December 31, 2009, 2008 and 2007 was
interest expense, including amortization of deferred financing costs, under the revolving credit facility and long
term debt agreements of $2.4 million, $1.5 million and $0.8 million, respectively.
7. Commitments and Contingencies
Obligations Under Operating and Capital Leases
The Company leases warehouse space, office facilities, space for its factory house outlet and specialty stores and
certain equipment under non-cancelable operating and capital leases. The leases expire at various dates through 2021,
excluding extensions at the Company’s option, and include provisions for rental adjustments. The table below includes
executed lease agreements for factory house outlet stores that the Company did not yet occupy as of December 31, 2009.
The following is a schedule of future minimum lease payments for capital and non-cancelable operating leases as of
December 31, 2009:
(In thousands) Operating Capital
2010 $16,579 $ 99
2011 17,013 —
2012 13,698 —
2013 11,983 —
2014 and thereafter 34,231 —
Total future minimum lease payments $93,504 99
Less amount representing interest (2)
Present value of future minimum capital lease payments 97
Less current maturities of obligations under capital leases (97)
Long term capital lease obligations $—
58