Company: UAA
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001336917-25-000016
Chunk: 42

Company: Under Armour, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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The Company recognizes lease expense on a straight-line basis over the lease term. There are no residual value guarantees that exist, and there are no restrictions or covenants imposed by leases. The following table illustrates operating and variable lease costs, included in selling, general and administrative expenses and certain costs relating to lease assets held solely for sublet purposes, included in other income (expense), net within the Company's Condensed Consolidated Statements of Operations, for the periods indicated:Three Months Ended December 31,Nine Months Ended December 31,2024202320242023Operating lease costs$37,580 $37,535 $113,040 $112,845 Variable lease costs$27,400 $22,290 $76,940 $64,452 As previously disclosed, historically, variable lease costs primarily consisted of lease payments dependent on sales in Brand and Factory House stores. Prior period amounts, included in the table above, have been revised to also include other non-lease components payable to the lessor. Additionally, certain amounts previously disclosed as operating lease costs in error have been corrected to be classified as variable lease costs. This presentation change did not affect total lease related costs recorded within the Company's Condensed Consolidated Statements of Operations.The Company subleases certain excess office facilities, retail space and warehouse space to third parties. Sublease income for the three and nine months ended December 31, 2024 was $3.3 million and $6.1 million, respectively. Sublease income for the three and nine months ended December 31, 2023 was not material.The weighted average remaining lease term and discount rate for the periods indicated below were as follows:As of December 31, 2024As of March 31, 2024Weighted average remaining lease term (in years)7.337.62Weighted average discount rate4.92 %4.95 %Supplemental Cash Flow InformationThe following table presents supplemental information relating to cash flow arising from lease transactions:Three Months Ended December 31,Nine Months Ended December 31,2024202320242023Operating cash outflows from operating leases$46,243 $44,941 $139,089 $133,259 Leased assets obtained in exchange for new operating lease liabilities$13,840 $29,239 $50,156 $50,698 

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Maturity of Lease LiabilitiesThe following table presents the future minimum lease payments under the Company