Under Armour 2014 Annual Report Download - page 29

C
hanges
i
n tax laws and unant
i
c
i
pated tax l
i
ab
i
l
i
t
i
es could adversely a
ff
ect our e
ff
ect
i
ve
i
ncome tax rat
e
and
p
ro
fi
tab
i
l
i
t
y.
We are su
bj
ect to
i
ncome taxes
i
nt
h
eUn
i
te
d
States an
d
numerous
f
ore
ig
n
j
ur
i
s
di
ct
i
ons. Our e
ff
ect
i
v
e
i
ncome tax rate cou
ld b
ea
d
verse
ly
a
ff
ecte
di
nt
h
e
f
uture
by
a num
b
er o
ff
actors,
i
nc
l
u
di
n
g
c
h
an
g
es
i
nt
h
em
i
xo
f
earn
i
n
g
s
i
n countr
i
es w
i
t
h diff
er
i
n
g
statutor
y
tax rates, c
h
an
g
es
i
nt
h
eva
l
uat
i
on o
fd
e
f
erre
d
tax assets an
d
li
a
bili
t
i
es, c
h
an
g
es
i
n tax
l
aws, t
h
e outcome o
fi
ncome tax au
di
ts
i
n var
i
ous
j
ur
i
s
di
ct
i
ons aroun
d
t
h
e wor
ld
,an
d
any repatr
i
at
i
on o
f
non-US earn
i
ngs
f
or w
hi
c
h
we
h
ave not prev
i
ous
l
y prov
id
e
df
or U.S. taxes. We regu
l
ar
ly
assess a
ll
o
f
t
h
ese matters to
d
eterm
i
ne t
h
ea
d
equacy o
f
our tax prov
i
s
i
on, w
hi
c
hi
ssu
bj
ect to s
i
gn
ifi
cant
j
u
d
gment.
O
ur financial results ma
y
be adversel
y
affected if substantial investments in businesses and o
p
erations fail
t
o
p
roduce ex
p
ected returns.
F
rom time to time, we may invest in business infrastructure, new businesses, and expansion of existin
g
businesses, such as the ongoing expansion of our network of brand and factory house stores and our distributio
n
f
acilities, the ex
p
ansion of our cor
p
orate head
q
uarters or investments in our Connected Fitness business. These
investments require substantial cash investments and management attention. We believe cost effectiv
e
investments are essential to business growth and profitability. The failure of any significant investment t
o
p
rovide the returns or synergies we expect could adversely affect our financial results. Infrastructure investment
s
may also divert funds from other potential business opportunities.
O
ur future success is substantially dependent on the continued service of our senior mana
g
ement and
other key employees
.
Our future success is substantiall
y
dependent on the continued service of our senior mana
g
ement and othe
r
ke
y
emplo
y
ees, particularl
y
Kevin A. Plank, our founder, Chairman and Chief Executive Officer. The loss of th
e
services of our senior mana
g
ement or other ke
y
emplo
y
ees could make it more difficult to successfull
y
operate
o
ur business and achieve our business
g
oals
.
We also may be unable to retain existing management, product creation, sales, marketing, operational and
o
ther 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 reta
i
n new team members,
i
nclud
i
ng sen
i
or management, we may not b
e
able to ach
i
eve our bus
i
ness ob
j
ect
i
ves.
Our
g
rowt
hh
as
l
ar
g
e
ly b
een t
h
e resu
l
to
f
s
ig
n
ifi
cant contr
ib
ut
i
ons
by
our current sen
i
or mana
g
ement,
p
ro
d
uct
d
es
ig
n teams an
d
ot
h
er
k
e
y
emp
l
o
y
ees. However, to
b
e success
f
u
li
n cont
i
nu
i
n
g
to
g
row our
b
us
i
ness, w
e
will need to continue to attract, retain and motivate hi
g
hl
y
talented mana
g
ement and other emplo
y
ees with a
r
an
g
e of skills and experience. Competition for emplo
y
ees in our industr
y
is intense and we have experience
d
difficult
y
from time to time in attractin
g
the personnel necessar
y
to support the
g
rowth of our business, and w
e
ma
y
experience similar difficulties in the future. If we are unable to attract, assimilate and retain mana
g
ement
and other emplo
y
ees with the necessar
y
skills, we ma
y
not be able to
g
row or successfull
y
operate our business
.
Kev
i
n Plank, our
C
ha
i
rman and
C
h
i
e
f
Execut
i
ve
Offi
cer controls the ma
j
or
i
ty o
f
the vot
i
ng power o
f
our
common stoc
k.
Our C
l
ass A Common Stoc
k
,orC
l
ass A Stoc
k
,
h
as one vote per s
h
are an
d
our C
l
ass B Convert
ibl
e
Common Stoc
k
,orC
l
ass B Stoc
k
,
h
as 10 votes per s
h
are. Our C
h
a
i
rman an
d
C
hi
e
f
Execut
i
ve O
ffi
cer, Kev
i
nA.
P
l
an
k
,
b
ene
fi
c
i
a
lly
owns a
ll
outstan
di
n
g
s
h
ares o
f
C
l
ass B Stoc
k
. As a resu
l
t, Mr. P
l
an
kh
as t
h
ema
j
or
i
t
y
vot
i
n
g
contro
l
an
di
sa
bl
eto
di
rect t
h
ee
l
ect
i
on o
f
a
ll
o
f
t
h
e mem
b
ers o
f
our Boar
d
o
f
D
i
rectors an
d
ot
h
er matters
we
su
b
m
i
t to a vote o
f
our stoc
kh
o
ld
ers. T
hi
s concentrat
i
on o
f
vot
i
n
g
contro
l
ma
yh
ave var
i
ous e
ff
ects
i
nc
l
u
di
n
g
,
b
ut
19