Under Armour 2013 Annual Report Download - page 28

customers, suppliers, vendors and consumers. Therefore a service interruption or shutdown could negatively
impact our operating activities. Furthermore, we engage in personal data collection and utilize information
technology in connection with digital marketing, digital commerce, our in-store payment processing systems and
our connected fitness business. We must comply with increasingly complex regulatory standards enacted to
protect this business and personal data. An inability to maintain compliance with these regulatory standards could
subject us to legal risks. Any breach of our network or payment processing systems may result in the loss of
valuable business data, our customers’, consumers’ or employees’ information or a disruption of our business,
which could give rise to unwanted media attention, damage our customer or consumer relationships and
reputation and result in lost sales, fines or lawsuits.
Changes in tax laws and unanticipated tax liabilities could adversely affect our effective income tax rate
and profitability.
We are subject to income taxes in the United States and numerous foreign jurisdictions. Our effective
income tax rate could be adversely affected in the future by a number of factors, including changes in the mix of
earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and
liabilities, changes in tax laws, the outcome of income tax audits in various jurisdictions around the world, and
any repatriation of non-US earnings for which we have not previously provided for U.S. taxes. We regularly
assess all of these matters to determine the adequacy of our tax provision, which is subject to significant
judgment.
Our financial results may be adversely affected if substantial investments in businesses and operations fail
to produce expected returns.
From time to time, we may invest in business infrastructure, new businesses, and expansion of existing
businesses, such as our recent acquisition of MapMyFitness and certain assets of our distributor in Mexico. These
investments require substantial cash investments and management attention. We believe cost effective
investments are essential to business growth and profitability. However, significant investments are subject to
typical risks and uncertainties inherent in acquiring or expanding a business, including our ability to successfully
integrate new businesses into our company and realize expected synergies and benefits. The failure of any
significant investment to provide the returns or profitability we expect could have a material adverse effect on
our financial results, including the potential impairment of goodwill and intangible assets, and divert
management attention from more profitable business operations. In addition, through our purchase of
MapMyFitness, we entered into a new line of business related to connected fitness. Prior to this acquisition, we
had limited experience in the connected fitness business. If we are unable to successfully operate this business,
we may not realize the anticipated benefits of this acquisition.
Our future success is substantially dependent on the continued service of our senior management and
other key employees.
Our future success is substantially dependent on the continued service of our senior management and other
key employees, particularly Kevin A. Plank, our founder, Chairman and Chief Executive Officer. The loss of the
services of our senior management or other key employees could make it more difficult to successfully operate
our business and achieve our business goals.
We also may be unable to retain existing management, product creation, sales, marketing, operational and
other support personnel that are critical to our success, which could result in harm to key customer relationships,
loss of key information, expertise or know-how and unanticipated recruitment and training costs.
If we are unable to attract and retain new team members, including senior management, we may not be
able to achieve our business objectives.
Our growth has largely been the result of significant contributions by our current senior management,
product design teams and other key employees. However, to be successful in continuing to grow our business, we
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