Company: UAA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001336917-25-000136
Chunk: 10

Company: Under Armour, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 tax expense decreased by $7.8 million to a tax benefit of $2.7 million during the three months ended June 30, 2025 from income tax expense of $5.1 million during the three months ended June 30, 2024. For three months ended June 30, 2025, our effective tax rate was 49.0% compared to (1.7)% for the three months 

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ended June 30, 2024. The increase in our effective tax rate was primarily driven by year over year changes in actual and forecasted annual pre-tax earnings, partially offset by the impact of discrete items as a percentage of the pre-tax results in each period.

SEGMENT RESULTS OF OPERATIONS

Our operating segments are based on how our Chief Operating Decision Maker ("CODM") makes decisions about allocating resources and assessing performance. Our segments are defined by geographic regions, including North America, EMEA, Asia-Pacific and Latin America. 

We exclude certain corporate items from our segment profitability measures. We report these items within Corporate Other, which is designed to provide increased transparency and comparability of our operating segments' performance. Corporate Other consists primarily of (i) general and administrative expenses not allocated to an operating segment, including expenses associated with centrally managed departments such as global marketing, global information technology, global supply chain and innovation, and other corporate support functions; (ii) restructuring and restructuring related charges, if any; and (iii) certain foreign currency hedge gains and losses.

The net revenues and operating income (loss) associated with our segments are summarized in the following tables.

Net Revenues

Three Months Ended June 30,20252024Change ($)Change (%)North America$670,319 $709,260 $(38,941)(5.5)%EMEA248,607 226,892 21,715 9.6 %Asia-Pacific163,386 181,836 (18,450)(10.1)%Latin America54,575 64,409 (9,834)(15.3)%Corporate Other (1)(2,819)1,268 (4,087)(322.3)%Total net revenues$1,134,068 $1,183,665 $(49,597)(4.2)%

(1) Corporate Other primarily includes foreign currency hedge gains and losses related to revenues generated by entities within our operating segments but managed through our central foreign exchange risk management program.

The decrease in total net revenues for