Under Armour 2014 Annual Report Download - page 81

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1
1. Earnings per Share
The calculation of earnings per share for common stock shown below excludes the income attributable to
o
utstanding restricted stock awards from the numerator and excludes the impact of these awards from the
denominator. The following is a reconciliation of basic earnings per share to diluted earnings per share:
Year Ended December
31
,
(
In t
h
ousan
d
s, exce
p
t
p
er s
h
are amounts
)
2
0
1
4
201
3
20
12
N
umerator
Net income $208,042 $162,330 $128,778
D
enom
i
nato
r
W
ei
g
hted avera
g
e common shares outstandin
g
213,227 210,696 208,686
Effect of dilutive securities 6,153 5,262 4,074
W
ei
g
hted avera
g
e common shares and dilutive securities outstandin
g
219,380 215,958 212,760
Earnin
g
s per share—basic $ 0.98 $ 0.77 $ 0.62
Earnings per share—diluted
$
0.95
$
0.75
$
0.61
E
ffects of potentially dilutive securities are presented only in periods in which they are dilutive. Stock
o
ptions, restricted stock units and warrants representing 22.
6
thousand, 11
6
.9 thousand and 208.9 thousan
d
shares of common stock were outstanding for the years ended December 31, 2014, 2013 and 2012, respectively,
but were excluded from the computation of diluted earnings per share because their effect would be anti-dilutive.
1
2. Stock-Based Com
p
ensation
S
tock Com
p
ensation Plans
The Under Armour, Inc. Amended and Restated 200
5
Omnibus Long-Term Incentive Plan (the “200
5
Plan”) provides for the issuance of stock options, restricted stock, restricted stock units and other equity awards
to officers, directors, key employees and other persons. Stock options and restricted stock and restricted stock
unit awards under the 200
5
Plan generally vest ratably over a two to four year period. The contractual term for
stock options is generally ten years from the date of grant. The Company generally receives a tax deduction for
any ordinary income recognized by a participant in respect to an award under the 200
5
Plan. The 200
5
Plan
terminates in 201
5
. As of December 31, 2014, 19.3 million shares are available for future grants of awards under
the 200
5
Plan.
Total stock-based compensation expense for the years ended December 31, 2014, 2013 and 2012 was
$
50.8 million,
$
43.2 million and
$
19.8 million, respectively. As of December 31, 2014, the Company had
$
28.6 million of unrecognized compensation expense expected to be recognized over a weighted average period
o
f 1.0 year. This unrecognized compensation expense does not include any expense related to performance-based
r
estricted stock units for which the performance targets have not been achieved as of December 31, 2014. Refer
to “Restricted Stock and Restricted Stock Units” below for further information on these awards.
E
mployee Stock Purchase Plan
The Company’s Employee Stock Purchase Plan (the “ESPP”) allows for the purchase of Class A Common
Stock by all eligible employees at a 1
5
% discount from fair market value subject to certain limits as defined in
the ESPP. As of December 31, 2014, 2.8 million shares are available for future
p
urchases under the ESPP
.
During the years ended December 31, 2014, 2013 and 2012, 87.
6
thousand, 108.4 thousand and 113.8 thousand
shares were purchased under the ESPP, respectivel
y
.
7
1