Under Armour 2012 Annual Report Download - page 75

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As of December 31, 2012 and 2011, the total liability for unrecognized tax benefits, including related
interest and penalties, was approximately $17.1 million and $11.2 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, 2012, 2011 and 2010:
Year Ended December 31,
(In thousands) 2012 2011 2010
Beginning of year $ 9,783 $5,165 $2,598
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 5,702 4,959 2,632
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 (188) (341) (65)
End of year $15,297 $9,783 $5,165
As of December 31, 2012, $14.1 million of unrecognized tax benefits, excluding interest and penalties,
would impact the Company’s effective tax rate if recognized.
As of December 31, 2012, 2011 and 2010, the liability for unrecognized tax benefits included $1.8 million,
$1.4 million and $1.3 million, respectively, for the accrual of interest and penalties. For each of the years ended
December 31, 2012, 2011 and 2010, the Company recorded $0.7 million, $0.4 million and $0.3 million,
respectively, for the accrual of interest and penalties in its consolidated statements 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 2009 are no longer subject to U.S. federal,
state and local or foreign income tax examinations by tax authorities. The Company does not expect any material
changes to the total unrecognized tax benefits within the next twelve months.
11. Earnings per Share
The calculation of earnings per share for common stock shown below excludes the income attributable to
outstanding restricted stock awards from the numerator and excludes the impact of these awards from the
denominator. The following is a reconciliation of basic earnings per share to diluted earnings per share:
Year Ended December 31,
(In thousands, except per share amounts) 2012 2011 2010
Numerator
Net income $128,778 $ 96,919 $ 68,477
Net income attributable to participating securities (386) (582) (548)
Net income available to common shareholders (1) $128,392 $ 96,337 $ 67,929
Denominator
Weighted average common shares outstanding 104,055 102,454 100,758
Effect of dilutive securities 2,037 1,912 968
Weighted average common shares and dilutive securities outstanding 106,092 104,366 101,726
Earnings per share—basic $ 1.23 $ 0.94 $ 0.67
Earnings per share—diluted $ 1.21 $ 0.92 $ 0.67
(1) Basic weighted average common shares outstanding 104,055 102,454 100,758
Basic weighted average common shares outstanding and participating
securities 104,343 103,140 101,595
Percentage allocated to common stockholders 99.7% 99.4% 99.2%
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