Under Armour 2014 Annual Report Download - page 43

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•
Cor
p
orate services costs increased
$
36.8 million to
$
212.8 million in 2014 from
$
176.0 million in 201
3
p
rimarily due to higher personnel and other administrative costs necessary to support our growth. As a
p
ercentage of net revenues, corporate services costs decreased to 6.9% in 2014 from 7.
5
%in201
3
p
rimarily due to higher incentive compensation in the prior year
.
Income
f
rom operation
s
i
ncreased
$
88.9 million, or 33.5%, to
$
354.0 million in 2014 from
$
265.1 million in
2013. Income from operations as a percentage of net revenues increased to 11.
5
% in 2014 from 11.4% in 2013
.
Interest ex
p
ense, ne
t
increased
$
2.4 million to
$
5.3 million in 2014 from
$
2.9 million in 2013. This increas
e
was primarily due to the
$
150.0 million and
$
100.0 million term loans we entered into during 2014.
O
ther ex
p
ense, ne
t
i
ncreased
$
5.2 million to
$
6.4 million in 2014 from
$
1.2 million in 2013. This increas
e
was due to higher net losses in 2014 on the combined foreign currency exchange rate changes on transaction
s
denominated in foreign currencies and our foreign currency derivative financial instruments as compared t
o
2013
.
P
rovision
f
or income taxe
s
i
ncreased
$
35.5 million to
$
134.2 million in 2014 from
$
98.7 million in 2013.
Our effective tax rate was 39.2% in 2014 compared to 37.8% in 2013. Our effective tax rate for 2014 was higher
than the effective tax rate for 2013 primarily due to increased foreign investments driving a lower proportion o
f
f
oreign taxable income in 2014 and state tax credits received in 2013
.
Year Ended December 31, 2013
C
om
p
ared to Year Ended December 31, 201
2
Net revenue
s
i
ncreased
$
497.2 million, or 27.1%, to
$
2,332.1 million in 2013 from
$
1,834.9 million i
n
2012. Net revenues by product category are summarized below:
Year Ended December 31,
(In t
h
ousan
d
s
)
2013 2
0
1
2
$
Chang
e
% Chang
e
App
arel
$
1,762,150
$
1,385,350
$
376,800 27.2%
F
ootwear 298,82
5
238,9
55 5
9,870 2
5
.1
A
ccessories 216,098 16
5
,83
55
0,263 30.
3
T
otal net sales 2
,
277
,
073 1
,
790
,
140 486
,
933 27.
2
L
icense and other revenues 54
,
978 44
,
781 10
,
197 22.8
T
otal net revenues $2,332,051 $1,834,921 $497,130 27.1
%
Net sa
l
e
s
increased $487.0 million, or 27.2%, to $2,277.1 million in 2013 from $1,790.1 million in 2012 as
note
di
nt
h
eta
bl
ea
b
ove. T
h
e
i
ncrease
i
n net sa
l
es pr
i
mar
ily
re
fl
ects:
•
$176.8 million, or 33.2%, increase in direct to consumer sales, which includes 18 additional retai
l
stores, or a 16.5%
g
rowth, since December 31, 2012, and continued
g
rowth in our e-commerce
business
;
•
unit
g
rowth driven b
y
increased distribution and new offerin
g
s in multiple product cate
g
ories, mos
t
si
g
nificantl
y
in our trainin
g
and huntin
g
apparel product cate
g
ories, includin
g
our new UA
H
EAT
G
EAR
®
S
onic and
U
A
CO
LD
G
EAR
®
Infrared product lines alon
g
with continued
g
rowth in ou
r
U
A Storm and Char
g
ed Cotton
®
platforms, and runnin
g
apparel and footwear, includin
g
UA Spine
;
a
nd
•
increased avera
g
e sellin
g
prices driven primaril
y
from our hi
g
her priced apparel products, includin
g
our mountain cate
g
or
y
and women’s UA Studio line.
33