Under Armour, Inc., provides the following disclosure in the notes to its 2018 financial statements:

7. Commitments and Contingencies (excerpts only):

Sports Marketing and Other Commitments:

Within the normal course of business, the Company enters into contractual commitments in order to promote the Company's brand and products. These commitments include sponsorship agreements with teams and athletes on the collegiate and professional levels, official supplier agreements, athletic event sponsorships and other marketing commitments. The following is a schedule of the Company's future minimum payments under its sponsorship and other marketing agreements as of December 31, 2018, as well as significant sponsorship and other marketing agreements entered into during the period after December 31, 2018 through the date of this report:

The amounts listed above are the minimum compensation obligations and guaranteed royalty fees required to be paid under the Company's sponsorship and other marketing agreements. The amounts listed above do not include additional performance incentives and product supply obligations provided under certain agreements.

Data Incident:

In early 2018, an unauthorized third party acquired data associated with the Company's Connected Fitness users' accounts for the Company's MyFitnessPal application and website. A consumer class action lawsuit has been filed against the Company in connection with this Incident, and the Company has received inquiries regarding the incident from certain government regulators and agencies. The Company does not currently consider these matters to be material and believes its insurance coverage will provide coverage should any significant expense arise.

a. The above amounts of promised contractual payments to sponsored athletes are not reported on the financial statements. How might financial analysts think about these payments? 

b. Compute an estimate of the present value of these payments, using Under Armour's interest rate o n its debt. roughly 3%.

c. Does Under Armour record a liability associated with the litigation in response to the data incident? Why or why not?

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(in thousands) $126,221 106,782 101,543 98,353 91,337 210,634 2019. 2020. 2021. 2022. 2023. 2024 and thereafter Total future minimum sponsorship and other payments. $734,869