UNDER ARMOUR REPORTS FOURTH QUARTER AND FULL-YEAR 2021 RESULTS; DELIVERS RECORD FULL-YEAR REVENUE AND EARNINGS
BALTIMORE, Feb. 11, 2022 – Under Armour, Inc. (NYSE: UA, UAA) today announced unaudited financial results for the fourth quarter and fiscal year ended December 31, 2021. The company reports its financial performance in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release refers to “currency neutral” and “adjusted” amounts, which are non-GAAP financial measures described below under the “Non-GAAP Financial Information” paragraph.
“The final quarter of 2021 demonstrated the power and consistency of Under Armour’s strategic playbook, which allowed us to capitalize on improving brand strength and consumer demand,” said Under Armour President and CEO Patrik Frisk. “By staying hyper-focused on operational excellence and serving the needs of athletes, we were able to deliver record revenue and earnings results for the full year.”
“Amid a dynamic environment with ongoing COVID-19 impacts and resultant supply chain headwinds, I am proud of how consistently our global teams continue to execute our plan,” Frisk continued. “As we navigate ongoing uncertainty in the marketplace, we remain focused on delivering industry-leading innovations, premium experiences, and empowering those who strive for more. Going forward, I am confident that we are running a stronger company – one that is able to deliver sustainable, profitable growth and value creation for our shareholders over the long term.”
Fourth Quarter 2021 Review
•Revenue was up 9 percent to $1.5 billion (up 8 percent currency neutral) compared to the prior year.
–Wholesale revenue increased 16 percent to $768 million and direct-to-consumer revenue increased 10 percent to $720 million, driven by solid performance in our owned and operated stores and 4 percent growth in eCommerce, which represented 42 percent of the total direct-to-consumer business during the quarter.
–North America revenue increased 15 percent to $1.1 billion and international revenue increased 3 percent to $461 million (up 2 percent currency neutral). Within the international business, revenue increased 24 percent in EMEA (up 23 percent currency neutral), decreased 6 percent in Asia-Pacific (down 7 percent currency neutral), and decreased 22 percent in Latin America (down 23 percent currency neutral).
–Apparel revenue increased 18 percent to $1.1 billion. Footwear revenue increased 17 percent to $283 million. Accessories revenue decreased 27 percent to $107 million.
•Gross margin increased 130 basis points to 50.7 percent compared to the prior year, driven by benefits from pricing and restructuring charges in the prior year, offset by elevated freight expenses, the absence of MyFitnessPal, and an unfavorable product mix.
•Selling, general & administrative expenses increased 15 percent to $676 million.
•Restructuring and impairment charges were $14 million.
•Operating income was $86 million. Adjusted operating income was $100 million.
•Net income was $110 million. Adjusted net income was $67 million.
•Diluted earnings per share was $0.23. Adjusted diluted earnings per share was $0.14.
•Inventory was down 9 percent to $811 million.
•Cash and Cash Equivalents were $1.7 billion at the end of the quarter, and no borrowings were outstanding under the company's $1.1 billion revolving credit facility.
Full Year 2021 Review
•Revenue was up 27 percent to $5.7 billion (up 25 percent currency neutral) compared to the prior year.
–Wholesale revenue increased 36 percent to $3.2 billion, and direct-to-consumer revenue increased 26 percent to $2.3 billion, driven by strong performance in our owned and operated stores and a 4 percent increase in eCommerce, which represented 39 percent of the total direct-to-consumer business in 2021.
–North America revenue increased 29 percent to $3.8 billion and international revenue increased 34 percent to $1.9 billion (up 28 percent currency neutral). Within the international business, revenue increased 41 percent in EMEA (up 35 percent currency neutral), increased 32 percent in Asia-Pacific (up 26 percent currency neutral), and increased 18 percent in Latin America (up 14 percent currency neutral).
–Apparel revenue increased 33 percent to $3.8 billion. Footwear revenue increased 35 percent to $1.3 billion. Accessories revenue increased 12 percent to $462 million.
•Gross margin increased 210 basis points to 50.3 percent compared to the prior year. Excluding restructuring efforts of approximately $1 million, adjusted gross margin increased 180 basis points to 50.4 percent, driven by benefits from pricing and favorable changes in foreign currency, partially offset by the absence of MyFitnessPal, elevated freight expenses, and unfavorable channel mix.
•Selling, general & administrative expenses increased 7 percent to $2.3 billion.
•Restructuring and impairment charges were $41 million.
•Operating income was $486 million. Adjusted operating income was $527 million.
•Net income was $360 million. Adjusted net income was $397 million.
•Diluted earnings per share was $0.77. Adjusted diluted earnings per share was $0.85.
Fiscal Year End Change
As announced in February 2021, Under Armour is changing its fiscal year from December 31 to March 31. Following a three-month transition period (January 1 – March 31, 2022), Under Armour’s fiscal year 2023 will run from April 1, 2022, through March 31, 2023. Consequently, there will be no fiscal year 2022.
Outlook For Transition Quarter Ending March 31, 2022
Under Armour’s outlook for the transition quarter ending March 31, 2022, when compared to the same calendar period of fiscal 2021, includes the following:
•Revenue is expected to increase at a mid-single-digit rate compared to the previous expectation of a low single-digit rate increase. This expectation includes approximately 10 percentage points of headwinds related to reductions in our spring-summer 2022 order book from supply constraints associated with ongoing COVID-19 pandemic impacts.
•Gross margin is expected to be down 200 basis points compared to the prior year period's adjusted gross margin. This expectation includes approximately 240 basis points of negative impact due to
higher freight expenses resulting from ongoing COVID-19 supply chain challenges in addition to unfavorable sales mix, partially offset by pricing benefits.
•Operating income is expected to reach approximately $30 million to $35 million.
•Diluted earnings per share are expected to be $0.02 to $0.03.
Given the transition to a new fiscal year-end, the company will provide its initial fiscal 2023 financial outlook in conjunction with the announcement of its transition quarter results in early May.
2020 Restructuring Plan
Last quarter, Under Armour reduced its 2020 restructuring plan range to $525 million to $575 million from the prior $550 million to $600 million range estimate. The company now expects to recognize $525 million to $550 million in charges related to this plan and has recognized $514 million of pre-tax charges to date, including $14 million in the fourth quarter of 2021. Of the $514 million recognized in charges, $138 million are cash-related, and $376 million are non-cash-related. The company currently expects to recognize any remaining charges related to this plan by the end of the first quarter of its fiscal year 2023.
COVID-19 Update
Under Armour remains focused on protecting teammate and consumer health and safety while working with its suppliers, partners, and customers to navigate potential disruptions. Given continued uncertainty related to COVID-19, particularly the ongoing and evolving impact of supply chain constraints on its suppliers and logistics providers, the company currently expects material impacts for its spring-summer 2022 season. There could be further material impacts on Under Armour’s results in future periods.
Conference Call and Webcast
Under Armour will hold its fourth quarter and full-year conference call and webcast today at approximately 8:30 a.m. Eastern Time. The call will be webcast live at https://about.underarmour.com/investor-relations/financials and will be archived and available for replay about three hours after the live event.
Non-GAAP Financial Information
This press release refers to “currency neutral” and “adjusted” results, as well as “adjusted” forward-looking estimates of the company’s results for its transition quarter ending March 31, 2022. Management believes this information is useful to investors to compare the company’s results of operations period-over-period because it enhances visibility into its actual underlying results, excluding these impacts. Currency-neutral financial information is calculated to exclude the effect of changes in foreign currency exchange rates. References to adjusted financial measures exclude the impact of the company’s 2020 restructuring plan, related impairment charges, including those related to goodwill and related tax effects. Where applicable, adjusted net income (loss) and adjusted diluted income (loss) per share exclude the non-cash amortization of debt discount on the company’s convertible senior notes, any gain or loss on extinguishing the company’s convertible senior notes and related tax effects, and any gain or loss from divestitures (including earn-outs) and related tax effects. Management believes these adjustments are not core to the company’s operations. The reconciliation of non-GAAP amounts to the most directly comparable financial measure calculated according to GAAP is presented in supplemental financial information furnished with this release. All per share amounts are reported on a diluted basis. These supplemental non-GAAP financial measures should not be considered in isolation and should be contemplated in addition to, and not as an alternative for, the company’s reported results prepared per GAAP. Additionally, the company’s non-GAAP financial information may not be comparable to similarly titled measures reported by other companies.
About Under Armour, Inc.
Under Armour, Inc., headquartered in Baltimore, Maryland, is a leading inventor, marketer and distributor of branded athletic performance apparel, footwear, and accessories. Designed to empower human performance, Under Armour’s innovative products and experiences are engineered to make athletes better. For further information, please visit http://about.underarmour.com.
Forward Looking Statements
Some of the statements contained in this press release constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, such as statements regarding our future financial condition or results of operations, our prospects and strategies for future growth, the impact of the COVID-19 pandemic on our business and results of operations and the operations of our suppliers and logistics providers, our plans to reduce our operating expenses, anticipated charges and restructuring costs, projected savings related to our restructuring plans and the timing thereof, the development and introduction of new products, the implementation of our marketing and branding strategies, and the future benefits and opportunities from significant investments. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” "could," “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “outlook,” “potential” or the negative of these terms or other comparable terminology. The forward-looking statements contained in this press release reflect our current views about future events and are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause events or our actual activities or results to differ significantly from those expressed in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, actions, activity levels, performance, or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors could cause actual results to differ materially from those indicated by these forward-looking statements, including, but not limited to: the impact of the COVID-19 pandemic on our industry and our business, financial condition and results of operations, including recent impacts on the global supply chain; failure of our suppliers or manufacturers to produce or deliver our products in a timely or cost-effective manner; labor or other disruptions at ports or our suppliers or manufacturers; changes in general economic or market conditions that could affect overall consumer spending or our industry; increased competition causing us to lose market share or reduce the prices of our products or to increase our marketing efforts significantly; fluctuations in the costs of raw materials and commodities we use in our products and our supply chain; changes to the financial health of our customers; our ability to successfully execute our long-term strategies; our ability to effectively drive operational efficiency in our business and successfully execute any restructuring plans and realize their expected benefits; our ability to effectively develop and launch new, innovative and updated products; our ability to accurately forecast consumer shopping and engagement preferences and consumer demand for our products and manage our inventory in response to changing demands; loss of key customers, suppliers or manufacturers; our ability to further expand our business globally and to drive brand awareness and consumer acceptance of our products in other countries; our ability to manage the increasingly complex operations of our global business; our ability to successfully manage or realize expected results from significant transactions and investments; our ability to effectively market and maintain a positive brand image; our ability to effectively meet the expectations of our stakeholders with respect to environmental, social and governance practices; the availability, integration and effective operation of information systems and other technology, as well as any potential interruption of such systems or technology; any disruptions, delays or deficiencies in the design, implementation or application of our global operating and financial reporting information technology system; our ability to attract key talent and retain the services of our senior management and other key employees; our ability to access capital and
financing required to manage our business on terms acceptable to us; our ability to accurately anticipate and respond to seasonal or quarterly fluctuations in our operating results; risks related to foreign currency exchange rate fluctuations; our ability to comply with existing trade and other regulations, and the potential impact of new trade, tariff and tax regulations on our profitability; risks related to data security or privacy breaches; and our potential exposure to litigation and other proceedings. The forward-looking statements contained in this press release reflect our views and assumptions only as of the date of this press release. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
# # #
Under Armour Contacts:
Lance Allega
Blake Simpson
SVP, Investor Relations & Corporate Development
SVP, Global Communications, Community Impact & Events
(410) 246-6810
(443) 630-9959
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2021 and 2020
(Unaudited; in thousands, except per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
Year Ended December 31,
in '000s
2021
% of Net Revenues
2020
% of Net Revenues
2021
% of Net Revenues
2020
% of Net Revenues
Net revenues
$
1,529,205
100.0
%
$
1,403,766
100.0
%
$
5,683,466
100.0
%
$
4,474,667
100.0
%
Cost of goods sold
753,272
49.3
%
710,144
50.6
%
2,821,967
49.7
%
2,314,572
51.7
%
Gross profit
775,933
50.7
%
693,622
49.4
%
2,861,499
50.3
%
2,160,095
48.3
%
Selling, general and administrative expenses
675,666
44.2
%
585,778
41.7
%
2,334,691
41.1
%
2,171,934
48.5
%
Restructuring and impairment charges
14,136
0.9
%
51,998
3.7
%
40,518
0.7
%
601,599
13.4
%
Income (loss) from operations
86,131
5.6
%
55,846
4.0
%
486,290
8.6
%
(613,438)
(13.7)
%
Interest income (expense), net
(7,595)
(0.5)
%
(15,008)
(1.1)
%
(44,300)
(0.8)
%
(47,259)
(1.1)
%
Other income (expense), net
24,037
1.6
%
178,646
12.7
%
(51,113)
(0.9)
%
168,153
3.8
%
Income (loss) before income taxes
102,573
6.7
%
219,484
15.6
%
390,877
6.9
%
(492,544)
(11.0)
%
Income tax expense (benefit)
(6,798)
(0.4)
%
34,690
2.5
%
32,072
0.6
%
49,387
1.1
%
Income (loss) from equity method investments
286
—
%
(340)
—
%
1,255
—
%
(7,246)
(0.2)
%
Net income (loss)
$
109,657
7.2
%
$
184,454
13.1
%
$
360,060
6.3
%
$
(549,177)
(12.3)
%
Basic net income (loss) per share of Class A, B and C common stock
$
0.23
$
0.41
$
0.77
$
(1.21)
Diluted net income (loss) per share of Class A, B and C common stock
$
0.23
$
0.40
$
0.77
$
(1.21)
Weighted average common shares outstanding Class A, B and C common stock
Basic
476,178
454,811
465,504
454,089
Diluted
479,728
457,869
468,644
454,089
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2021 and 2020
(Unaudited; in thousands)
NET REVENUES BY PRODUCT CATEGORY
Three Months Ended December 31,
Year Ended December 31,
in '000s
2021
2020
% Change
2021
2020
% Change
Apparel
$
1,098,784
$
931,376
18.0
%
$
3,841,249
$
2,882,562
33.3
%
Footwear
282,721
240,869
17.4
%
1,264,127
934,333
35.3
%
Accessories
106,650
145,170
(26.5)
%
461,894
414,082
11.5
%
Total net sales
1,488,155
1,317,415
13.0
%
5,567,270
4,230,977
31.6
%
Licensing revenues
36,606
54,535
(32.9)
%
112,623
105,779
6.5
%
Corporate Other (1)
4,444
31,816
(86.0)
%
$
3,573
$
137,911
(97.4)
%
Total net revenues
$
1,529,205
$
1,403,766
8.9
%
$
5,683,466
$
4,474,667
27.0
%
NET REVENUES BY SEGMENT
Three Months Ended December 31,
Year Ended December 31,
in '000s
2021
2020
% Change
2021
2020
% Change
North America
$
1,063,290
$
923,731
15.1
%
$
3,810,372
$
2,944,978
29.4
%
EMEA
200,203
161,156
24.2
%
842,511
598,296
40.8
%
Asia-Pacific
217,223
230,811
(5.9)
%
831,762
628,657
32.3
%
Latin America
44,045
56,252
(21.7)
%
195,248
164,825
18.5
%
Corporate Other (1)
4,444
31,816
(86.0)
%
3,573
$
137,911
(97.4)
%
Total net revenues
$
1,529,205
$
1,403,766
8.9
%
$
5,683,466
$
4,474,667
27.0
%
INCOME (LOSS) FROM OPERATIONS
Three Months Ended December 31,
Year Ended December 31,
in '000s
2021
% of Net Revenues (2)
2020
% of Net Revenues (2)
2021
% of Net Revenues (2)
2020
% of Net Revenues (2)
North America
$
243,395
22.9
%
$
223,005
24.1
%
$
972,093
25.5
%
$
474,584
16.1
%
EMEA
24,252
12.1
%
16,752
10.4
%
132,602
15.7
%
60,592
10.1
%
Asia-Pacific
21,823
10.0
%
30,042
13.0
%
132,911
16.0
%
2
—
%
Latin America
4,099
9.3
%
7,966
14.2
%
22,388
11.5
%
(42,790)
(26.0)
%
Corporate Other (1)
(207,438)
NM
(221,919)
NM
(773,704)
NM
(1,105,826)
NM
Income (loss) from operations
$
86,131
5.6
%
$
55,846
4.0
%
$
486,290
8.6
%
$
(613,438)
(13.7)
%
(1) Corporate Other primarily includes foreign currency hedge gains and losses related to revenues generated by entities within the Company’s operating segments but managed through the Company’s central foreign exchange risk management program. Prior to Fiscal 2021, the Company's Connected Fitness segment was separately disclosed, however, effective January 1, 2021, Corporate Other now includes the remaining Connected Fitness business consisting of the MapMyRun business for Fiscal 2021 and the entire Connected Fitness business for Fiscal 2020. All prior periods were recast to conform to the current period presentation. Such reclassifications did not affect total consolidated net revenues, consolidated income from operations or consolidated net income
(2) Operating income (loss) percentage is calculated based on total segment net revenues. The operating income (loss) percentage for Corporate Other is not presented as a meaningful metric (NM).
Under Armour, Inc.
As of December 31, 2021 and 2020
(Unaudited; in thousands)
CONSOLIDATED BALANCE SHEETS
in '000s
December 31, 2021
December 31, 2020
Assets
Current assets
Cash and cash equivalents
$
1,669,453
$
1,517,361
Accounts receivable, net
569,014
527,340
Inventories
811,410
895,974
Prepaid expenses and other current assets, net
286,422
282,300
Total current assets
3,336,299
3,222,975
Property and equipment, net
607,226
658,678
Operating lease right-of-use assets
448,364
536,660
Goodwill
495,215
502,214
Intangible assets, net
11,010
13,295
Deferred income taxes
17,812
23,930
Other long term assets
75,470
72,876
Total assets
$
4,991,396
$
5,030,628
Liabilities and Stockholders’ Equity
Accounts payable
613,307
575,954
Accrued expenses
460,165
378,859
Customer refund liabilities
164,294
203,399
Operating lease liabilities
138,664
162,561
Other current liabilities
73,746
92,503
Total current liabilities
1,450,176
1,413,276
Long term debt, net of current maturities
662,531
1,003,556
Operating lease liabilities, non-current
703,111
839,414
Other long term liabilities
86,584
98,389
Total liabilities
2,902,402
3,354,635
Total stockholders’ equity
2,088,994
1,675,993
Total liabilities and stockholders’ equity
$
4,991,396
$
5,030,628
Under Armour, Inc.
For the Year Ended December 31, 2021 and 2020
(Unaudited; in thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
in '000s
2021
2020
Cash flows from operating activities
Net income (loss)
$
360,060
$
(549,177)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation and amortization
141,144
164,984
Unrealized foreign currency exchange rate gain (loss)
18,877
(9,295)
Loss on extinguishment of senior convertible notes
58,526
—
Loss on disposal of property and equipment
4,468
3,740
Gain on sale of the MyFitnessPal platform
—
(179,318)
Non-cash restructuring and impairment charges
26,938
470,543
Amortization of bond premium
16,891
12,070
Stock-based compensation
43,794
42,070
Deferred income taxes
(2,642)
43,992
Changes in reserves and allowances
(25,766)
10,347
Changes in operating assets and liabilities:
Accounts receivable
(31,153)
167,614
Inventories
93,287
15,306
Prepaid expenses and other assets
10,224
18,603
Other non-current assets
79,782
(259,735)
Accounts payable
26,027
(40,673)
Accrued expenses and other liabilities
(114,794)
318,532
Customer refund liabilities
(38,861)
(19,250)
Income taxes payable and receivable
(1,973)
2,511
Net cash provided by (used in) operating activities
664,829
212,864
Cash flows from investing activities
Purchases of property and equipment
(69,759)
(92,291)
Sale of property and equipment
1,413
—
Sale of the MyFitnessPal platform
—
198,916
Purchase of businesses
—
(40,280)
Net cash used in investing activities
(68,346)
66,345
Cash flows from financing activities
Proceeds from long term debt and revolving credit facility
—
1,288,753
Payments on long term debt and revolving credit facility
(506,280)
(800,000)
Proceeds from capped call
91,722
—
Purchase of capped call
—
(47,850)
Employee taxes paid for shares withheld for income taxes
(5,983)
(3,675)
Proceeds from exercise of stock options and other stock issuances
3,688
4,744
Payments of debt financing costs
(1,884)
(5,219)
Other financing fees
—
100
Net cash provided by (used in) financing activities
(418,737)
436,853
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(23,391)
16,445
Net increase in (decrease in) cash, cash equivalents and restricted cash
154,355
732,507
Cash, cash equivalents and restricted cash
Beginning of period
1,528,515
796,008
End of period
$
1,682,870
$
1,528,515
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2021
(Unaudited)
The table below presents the reconciliation of net revenue growth (decline) calculated according to GAAP to currency neutral net revenue a non-GAAP measure. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.
CURRENCY NEUTRAL NET REVENUE GROWTH (DECLINE) RECONCILIATION
Three months ended December 31, 2021
Year ended December 31, 2021
Total Net Revenue
Net revenue growth - GAAP
8.9
%
27.0
%
Foreign exchange impact
(0.7)
%
(2.3)
%
Currency neutral net revenue growth - Non-GAAP
8.2
%
24.7
%
North America
Net revenue growth - GAAP
15.1
%
29.4
%
Foreign exchange impact
(0.4)
%
(0.8)
%
Currency neutral net revenue growth - Non-GAAP
14.7
%
28.6
%
EMEA
Net revenue growth - GAAP
24.2
%
40.8
%
Foreign exchange impact
(1.4)
%
(5.8)
%
Currency neutral net revenue growth - Non-GAAP
22.8
%
35.0
%
Asia-Pacific
Net revenue growth - GAAP
(5.9)
%
32.3
%
Foreign exchange impact
(1.1)
%
(6.5)
%
Currency neutral net revenue growth - Non-GAAP
(7.0)
%
25.8
%
Latin America
Net revenue growth - GAAP
(21.7)
%
18.5
%
Foreign exchange impact
(1.4)
%
(4.1)
%
Currency neutral net revenue growth - Non-GAAP
(23.1)
%
14.4
%
Total International
Net revenue growth - GAAP
3.0
%
34.3
%
Foreign exchange impact
(1.3)
%
(5.9)
%
Currency neutral net revenue growth - Non-GAAP
1.7
%
28.4
%
Under Armour, Inc.
For the Three Months and Year Ended December 31, 2021
(Unaudited; in thousands, except per share amounts)
The tables below present the reconciliation of the Company's condensed consolidated statement of operations presented in accordance with GAAP to certain adjusted non-GAAP financial measures discussed in this press release. See "Non-GAAP Financial Information" above for further information regarding the Company's use of non-GAAP financial measures.
ADJUSTED GROSS MARGIN RECONCILIATION
in '000s
Three months ended December 31, 2021
Year ended December 31, 2021
GAAP Gross margin
50.7
%
50.3
%
Add: Impact of restructuring charges recorded under cost of goods sold
—
bps
10 bps
Adjusted gross margin
50.7
%
50.4
%
ADJUSTED OPERATING INCOME RECONCILIATION
in '000s
Three months ended December 31, 2021
Year ended December 31, 2021
GAAP Income from operations
$
86,131
$
486,290
Add: Impact of restructuring and impairment charges
14,136
40,518
Add: Impact of restructuring charges recorded under cost of goods sold
—
$
515
Adjusted income from operations
$
100,267
$
527,323
ADJUSTED NET INCOME RECONCILIATION
in '000s
Three months ended December 31, 2021
Year ended December 31, 2021
GAAP Net income
$
109,657
$
360,060
Add: Impact of restructuring and impairment charges
14,136
40,518
Add: Impact of restructuring charges recorded under cost of goods sold
—
515
Add: Impact of amortization of debt discount
898
12,927
Add: Impact of loss on extinguishment of convertible senior notes
—
58,526
Add: Impact of earn-out recorded in connection with the sale of the MyFitnessPal platform
(35,000)
(35,000)
Add: Impact of provision for income taxes
(22,208)
(40,643)
Adjusted net income
$
67,483
$
396,903
ADJUSTED DILUTED EARNINGS PER SHARE RECONCILIATION
Three months ended December 31, 2021
Year ended December 31, 2021
GAAP Diluted net income per share
$
0.23
$
0.77
Add: Impact of restructuring and impairment charges
0.03
0.09
Add: Impact of restructuring charges recorded under cost of goods sold
—
—
Add: Impact of amortization of debt discount
—
0.03
Add: Impact of loss on extinguishment of convertible senior notes
—
0.12
Add: Impact of earn-out recorded in connection with the sale of the MyFitnessPal platform
