Under Armour 2009 Annual Report Download - page 71

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As of December 31, 2009 and 2008, the total liability for uncertain tax positions, including related interest
and penalties, was approximately $3.5 million and $2.5 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, 2009, 2008 and 2007:
Year Ended December 31,
(In thousands) 2009 2008 2007
Beginning of year $1,675 $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 1,163 281 327
Decreases as a result of tax positions taken during the current
period — — —
Decreases as a result of settlements during the current period (43) — —
Reductions as a result of a lapse of statute of limitations
during the current period (197) (387) —
End of year $2,598 $1,675 $1,781
As of December 31, 2009, $2.0 million of unrecognized tax benefits, excluding interest and penalties, would
impact the Company’s effective tax rate if recognized.
As of December 31, 2009, 2008 and 2007, the liability for uncertain tax positions included $0.9 million,
$0.8 million and $0.8 million for the accrual of interest and penalties, respectively. For each of the years ended
December 31, 2009, 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 for years before 2006 are no longer subject to U.S. federal,
state and local or foreign income tax examinations by tax authorities. 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.
63