Company: UAA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001336917-25-000198
Chunk: 44

Company: Under Armour, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 view of the future realization of deferred tax assets. As of September 30, 2025, for the Company's U.S. federal interest expense carryforwards and the majority of the U.S. states and certain foreign taxing jurisdictions, the Company believes the weight of the negative evidence continues to outweigh the positive evidence regarding the realization of these deferred tax assets and has maintained valuation allowances against these assets. The Company currently has valuation allowances on all of its deferred tax assets in China. The Company's current forecast for China taxable earnings indicates that it is reasonably possible that its deferred taxes could be realizable in that jurisdiction during the current fiscal year-end based on a near term trend towards three-year cumulative taxable earnings. The actualization of these forecasted results may potentially outweigh the negative evidence, resulting in a reversal of the previously recorded valuation allowances in China. The release of valuation allowances would result in a benefit to income tax expense in the period the release is recorded, which could have a material impact on net income. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective taxable earnings in China. Additionally, the Company is actively monitoring the global trade environment due to recent tariff increases and is actively implementing mitigation strategies. If the Company is unable to mitigate the impacts of tariffs or if the Company incurs other material increased expenditures, it may negatively impact its ability to realize U.S. federal net deferred tax assets requiring the recording of a material valuation allowance. The Company will continue to evaluate its ability to realize its net deferred tax assets on a quarterly basis.

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NOTE 16. EARNINGS PER SHAREThe following represents a reconciliation from basic net income (loss) per share to diluted net income (loss) per share:Three Months Ended September 30,Six Months Ended September 30,2025202420252024NumeratorNet income (loss) $(18,814)$170,382 $(21,426)$(135,044)DenominatorWeighted average common shares outstanding Class A, B and C - Basic428,350 432,225 427,736 433,950 Dilutive effect of Class A, B, and C securities(1)— 3,460 — — Weighted average common shares and dilutive securities outstanding Class A, B, and C428,350 435,685 427,736 433,950 Class A and Class C securities excluded as anti-dilutive (2)14,104 12,064 15