Company: UAA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001336917-25-000198
Chunk: 30

Company: Under Armour, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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549 Net Sales1,313,186 1,376,329 2,425,711 2,537,055 License revenues28,984 24,796 53,346 46,467 Corporate Other(8,790)(2,102)(11,609)(834)    Total net revenues$1,333,380 $1,399,023 $2,467,448 $2,582,688 

18

The Company records reductions to revenue for estimated customer returns, allowances, markdowns and discounts. These reserves are included within customer refund liability and the value of the inventory associated with reserves for sales returns are included within prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. The following table presents the customer refund liability, as well as the associated value of inventory for the periods indicated:September 30, 2025March 31, 2025Customer refund liability$134,957 $146,021 Inventory associated with reserves for sales returns$30,329 $33,609 Contract LiabilitiesContract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer, and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's contract liabilities primarily consist of (i) gift cards, which are included in accrued expenses on the Company's Condensed Consolidated Balance Sheets, and (ii) points associated with the loyalty programs and payments received in advance of revenue recognition for royalty arrangements, which are included in other current liabilities on the Company's Condensed Consolidated Balance Sheets. The following table summarizes the change in the contract liabilities balance during the six months ended September 30, 2025, which primarily results from the timing differences between the Company's satisfaction of performance obligations and the customer's payment.Total Contract LiabilitiesBalance as of March 31, 2025$34,342 Revenues deferred36,366 Revenues recognized (1)(41,172)Foreign exchange and other(49)Balance as of September 30, 2025$29,487 (1) Includes approximately $10.3 million of revenue from gift cards, including breakage, and subscription revenues that were previously included in contract liabilities as of March 31, 2025. Loyalty points are not separately identifiable and therefore revenues recognized from the redemption of loyalty