Under Armour 2014 Annual Report Download - page 75

excluding extensions at the Company’s option, and include provisions for rental adjustments. The table belo
w
includes executed lease agreements for brand and factory house stores that the Company did not yet occupy as of
December 31, 2014 and does not include contingent rent the Company may incur at its stores based on future
sales above a specified minimum or payments made for maintenance, insurance and real estate taxes. The
f
ollowing is a schedule of future minimum lease payments for non-cancelable real property operating leases as o
f
December 31, 2014 as well as significant operating lease agreements entered into during the period afte
r
December 31, 2014 through the date of this report:
(
In t
h
ousan
d
s
)
2
015
$
56,452
2
016
5
7,079
2
017
5
2,17
2
2
018 48,34
5
2019 44
,
313
2
020 and thereafter 214,21
4
Total future minimum lease pa
y
ments
$
472,575
I
ncluded in selling, general and administrative expense was rent expense of
$
59.0 million,
$
41.8 million an
d
$
31.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, under non-cancelable
o
perating lease agreements. Included in these amounts was contingent rent expense of
$
11.0 million,
$
7.8 millio
n
and
$
6.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.
S
ponsors
h
ips an
d
Ot
h
er Mar
k
etin
g
Commitments
W
i
t
hi
nt
h
e norma
l
course o
fb
us
i
ness, t
h
e Company enters
i
nto contractua
l
comm
i
tments
i
nor
d
er to
p
romote t
h
e Company’s
b
ran
d
an
d
pro
d
ucts. T
h
ese comm
i
tments
i
nc
l
u
d
e sponsors
hi
p agreements w
i
t
h
teams an
d
at
hl
etes on t
h
eco
ll
eg
i
ate an
d
pro
f
ess
i
ona
ll
eve
l
s, o
ffi
c
i
a
l
supp
li
er agreements, at
hl
et
i
c event sponsors
hi
ps an
d
o
t
h
er mar
k
et
i
ng comm
i
tments. T
h
e
f
o
ll
ow
i
ng
i
sasc
h
e
d
u
l
eo
f
t
h
e Company’s
f
uture m
i
n
i
mum payments un
d
er
i
ts sponsors
hi
pan
d
ot
h
er mar
k
et
i
ng agreements as o
f
Decem
b
er 31, 2014, as we
ll
as s
i
gn
ifi
cant sponsors
hi
pan
d
o
t
h
er mar
k
et
i
ng agreements entere
di
nto
d
ur
i
ng t
h
e per
i
o
d
a
f
ter Decem
b
er 31, 2014 t
h
roug
h
t
h
e
d
ate o
f
t
his
r
eport:
(
In t
h
ousan
d
s
)
2015
$
90
,
056
201
6
7
1
,
65
4
2017
5
6
,
73
4
2018
44,982
2019
33
,
1
55
2020 and thereafter 96
,
34
5
T
otal future minimum sponsorship and other marketin
g
pa
y
ments $392,926
The amounts listed above are the minimum obli
g
ations required to be paid under the Compan
y
’s
sponsorship and other marketin
g
a
g
reements. The amounts listed above do not include additional performanc
e
incentives and product suppl
y
obli
g
ations provided under certain a
g
reements. It is not possible to determine ho
w
much the Compan
y
will spend on product suppl
y
obli
g
ations on an annual basis as contracts
g
enerall
y
do not
stipulate specific cash amounts to be spent on products. The amount of product provided to the sponsorships
depends on man
y
factors includin
gg
eneral pla
y
in
g
conditions, the number of sportin
g
events in which the
y
p
articipate and the Compan
y
’s decisions re
g
ardin
g
product and marketin
g
initiatives. In addition, the costs t
o
desi
g
n, develop, source and purchase the products furnished to the endorsers are incurred over a period of time
and are not necessaril
y
tracked separatel
y
from similar costs incurred for products sold to customers.
65