Under Armour 2015 Annual Report Download - page 27

Data security or privacy breaches could damage our reputation, cause us to incur additional expense,
expose us to litigation and adversely affect our business.
We collect sensitive and proprietary business information as well as personally identifiable information in
connection with digital marketing, digital commerce, our in-store payment processing systems and our
Connected Fitness business. In particular, in our Connected Fitness business we collect and store a variety of
information regarding our users, and allow users to share their personal information with each other and with
third parties. Hackers and data thieves are increasingly sophisticated and operate large scale and complex
automated attacks. Any breach of our data security could result in an unauthorized release or transfer of
customer, consumer, user or employee information, or the loss of valuable business data or cause a disruption in
our business. These events could give rise to unwanted media attention, damage our reputation, damage our
customer, consumer or user relationships and result in lost sales, fines or lawsuits. We may also be required to
expend significant capital and other resources to protect against or respond to or alleviate problems caused by a
security breach.
We must also comply with increasingly complex regulatory standards throughout the world enacted to
protect personal information and other data, particularly with respect to our Connected Fitness business.
Compliance with existing and proposed laws and regulations can be costly and could negatively impact our
profitability. In addition, an inability to maintain compliance with these regulatory standards could subject us to
litigation or other regulatory proceedings.
Changes in tax laws and unanticipated tax liabilities could adversely affect our effective income tax rate
and profitability.
We are subject to income taxes in the United States and numerous foreign jurisdictions. Our effective
income tax rate could be adversely affected in the future by a number of factors, including changes in the mix of
earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and
liabilities, changes in tax laws, the outcome of income tax audits in various jurisdictions around the world, and
any repatriation of non-US earnings for which we have not previously provided for U.S. taxes. Many of the
countries in which we do business have or are expected to adopt changes to tax laws as result of the Base Erosion
and Profit Shifting final proposals from the Organization for Economic Co-operation and Development and
specific country anti-avoidance initiates. Such tax law changes increase uncertainty and may adversely affect our
tax provision. We regularly assess all of these matters to determine the adequacy of our tax provision, which is
subject to significant judgment.
Our financial results may be adversely affected if substantial investments in businesses and operations fail
to produce expected returns.
From time to time, we may invest in business infrastructure, new businesses, and expansion of existing
businesses, such as the ongoing expansion of our network of brand and factory house stores and our distribution
facilities, the expansion of our corporate headquarters investments to implement our enterprise resource planning
systems, or investments in our Connected Fitness business. These investments require substantial cash
investments and management attention. We believe cost effective investments are essential to business growth
and profitability. The failure of any significant investment to provide the returns or synergies we expect could
adversely affect our financial results. Infrastructure investments may also divert funds from other potential
business opportunities.
Our future success is substantially dependent on the continued service of our senior management and
other key employees.
Our future success is substantially dependent on the continued service of our senior management and other
key employees, particularly Kevin A. Plank, our founder, Chairman and Chief Executive Officer. The loss of the
services of our senior management or other key employees could make it more difficult to successfully operate
our business and achieve our business goals.
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