Company: UAA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001336917-25-000198
Chunk: 165

Company: Under Armour, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 165
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 sublease income relating to lease assets held solely for sublet purposes.

Three Months Ended September 30,Six Months Ended September 30,20252024Change ($)Change (%)20252024Change ($)Change (%)Other income (expense), net$(942)$(3,420)$2,478 72.5 %$(5,637)$(6,150)$513 8.3 %

Other expense, net decreased by $2.5 million to $0.9 million during the three months ended September 30, 2025 compared to $3.4 million during the three months ended September 30, 2024. This was primarily due an increase in sublease income, partially offset by net losses from foreign currency hedges. 

Other expense, net decreased by $0.5 million to $5.6 million during the six months ended September 30, 2025 compared to $6.2 million during the six months ended September 30, 2024. This was primarily due an increase in sublease income, offset by net losses from foreign currency hedges.

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Income Tax Expense (Benefit)

Three Months Ended September 30,Six Months Ended September 30,20252024Change ($)Change (%)20252024Change ($)Change (%)Income tax expense (benefit)$25,940 $(2,136)$28,076 1314.4 %$23,282 $3,013 $20,269 672.7 %

Income tax expense increased by $28.1 million to $25.9 million during the three months ended September 30, 2025 from income tax benefit of $2.1 million during the three months ended September 30, 2024. For three months ended September 30, 2025, our effective tax rate was 345.9% compared to (1.3)% for the three months ended September 30, 2024. The increase in our effective tax rate was primarily driven by year over year changes in actual and forecasted pre-tax earnings, the impact of U.S. taxation of foreign earnings, increased global minimum taxes and valuation allowances on increased U.S. interest expense carryforwards.

Income tax expense increased by $20.3 million to $23.3 million during the six months ended September 30, 2025 from income tax expense of $3.0 million during the six months ended September 30, 2024. For six months ended September 30