Under Armour 2014 Annual Report Download - page 71

3. Ac
q
u
i
s
i
t
i
ons
MapMyFitness
On December
6
, 2013, the Compan
y
acquired 100% of the outstandin
g
equit
y
of MapM
y
Fitness, Inc., a
di
g
ital connected fitness platform, for $150.0 million in cash. The purchase price was financed throu
g
h
$
100.0 million in debt under the Compan
y
’s existin
g
revolvin
g
credit facilit
y
and cash on hand
.
T
h
e acqu
i
s
i
t
i
on was accounte
df
or as a
b
us
i
ness com
bi
nat
i
on. T
h
e Compan
y
a
ll
ocate
d
t
h
e tota
l
purc
h
as
e
p
r
i
ce to t
h
e tan
gibl
ean
di
ntan
gibl
e assets acqu
i
re
d
an
dli
a
bili
t
i
es assume
db
ase
d
on t
h
e
i
r est
i
mate
df
a
i
rva
l
ues on
t
h
e acqu
i
s
i
t
i
on
d
ate, w
i
t
h
t
h
e rema
i
n
i
n
g
una
ll
ocate
d
purc
h
ase pr
i
ce recor
d
e
d
as
g
oo
d
w
ill
. As a resu
l
to
f
t
h
e
i
n
i
t
i
a
l
p
urchase price allocation, the Compan
y
recorded intan
g
ible assets of $20.6 million,
g
oodwill of $122.2 million,
and other net assets of $6.6 million, primaril
y
consistin
g
of $4.7 million of net deferred tax assets.
I
ntangible assets consist of
$
12.0 million of technology,
$
5.0 million of trade name, and
$
3.6 million o
f
customer relationships. The Company estimated the acquisition date fair values of the intangible assets based on
income based discounted cash flow models using estimates and assumptions regarding future operations. The
Company will amortize the intangible assets on a straight-line basis over their estimated useful lives of two to
se
v
en
y
ears.
The
g
oodwill recorded as a result of the acquisition primaril
y
reflects unidentified intan
g
ible asset
s
acquired, includin
g
the value of inte
g
ratin
g
and innovatin
g
acquired technolo
g
ies and en
g
a
g
in
g
and
g
rowin
g
the
di
g
ital communit
y
. The acquired
g
oodwill has been allocated primaril
y
within the Compan
y
’s North Americ
a
o
peratin
g
se
g
ment as well as the MapM
y
Fitness operatin
g
se
g
ment. The
g
oodwill associated with this acquisition
is not deductible for tax
p
ur
p
oses
.
I
n connect
i
on w
i
t
h
t
hi
s acqu
i
s
i
t
i
on, t
h
e Compan
yi
ncurre
d
acqu
i
s
i
t
i
on re
l
ate
d
expenses o
f
approx
i
mate
ly
$
2.5 million. These expenses were included in sellin
g
,
g
eneral and administrative expenses on the consolidate
d
statements o
fi
ncome
d
ur
i
n
g
t
h
e
y
ear en
d
e
d
Decem
b
er 31, 2013. T
hi
s acqu
i
s
i
t
i
on
did
not
h
ave a mater
i
a
li
mpac
t
to t
h
e Compan
y
’s conso
lid
ate
d
statements o
fi
ncome
d
ur
i
n
g
t
h
e
y
ear en
d
e
d
Decem
b
er 31, 2013
.
During the three months ended March 31, 2014, the Company finalized its valuation of the assets acquired
and liabilities assumed as of the acquisition date and no adjustments were made to the preliminary purchase pric
e
allocation recorded as of December 31
,
2013
.
4. Pro
p
ert
y
and E
q
ui
p
ment, Net
Property and equipment consisted of the following:
December
31,
(
In thousands
)
2014
2013
Leasehold and tenant improvements $ 128,088 $ 97,776
Furniture, fixtures and displa
y
s 80,035 68,045
B
uildin
g
s 46,419 45,90
3
Software 67,506 51,984
Office equipment 51,531 39,551
Plant equipment 70,317 45,509
Land 17,
6
28 17,
6
28
Construction in pro
g
ress 57,677 28,47
1
Other 3,175 1,21
9
S
ubtotal property and equipment
5
22,376 396,086
Accumulated de
p
reciation (216,812) (172,134)
Propert
y
and equipment, net $ 305,564 $ 223,952
61