Company: UAA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001336917-25-000198
Chunk: 62

Company: Under Armour, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 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, 2025, our effective tax rate was 1,121.3% compared to (2.3)% for the six 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. 

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 September 30,Six Months Ended September 30,20252024Change ($)Change (%)20252024Change ($)Change (%)North America$791,502 $863,345 $(71,843)(8.3)%$1,461,821 $1,572,605 $(110,784)(7.0)%EMEA317,679 283,178 34,501 12.2 %566,286 510,070 56,216 11