P10-48) Formulation for Deferred Tax Asset Valuation Allowance

Use the information provided for Under Armour, Inc. along with the information below to answer the requirements.

Required

a.) Use the four-year average valuation allowance to deferred tax assets (2012 through 2015) to reformulate the income statement for each of the four years 2012-2015.

b.) Reformulate the balance sheet for each of the four years 2012-2015.

(Please show steps in the work.)

Under Armour, Inc. December 31 ($ thousands) 2015 2014 Deferred tax assets Stock based compensation Allowance for doubtful accounts and other revenues Accrued expenses Foreign net operating loss carry forward Deferred rent Inventory obsolescence reserves Tax basis inventory adjustments U.S. net operating loss carry forward Foreign tax credits State tax credits, net of foreign impact Deferred compensation Other Total deferred tax assets Less: valuation allowance Total net deferred tax assets Deferred tax liability Property, plant, and equipment Intangible asset Prepaid expenses Other Total deferred tax liabilities Total deferred tax assets, net $ 40,406 33,821 19,999 19,600 13,991 11,956 10,019 9,217 6,151 4,966 2,080 6,346 178,552 (24,043) 154,509 $ 35,161 24,774 11,398 16,302 11,005 8,198 5,845 4,733 5,131 4,245 1,858 4,592 133,242 (15,550) 117,692 (31,069) (17,638) (22,820) (7,010) (8,766) (6,424) (627) (612) (63,282) (31,684) $91,227 $86,008 $ thousands Deferred tax asset Valuation allowance 2012 2013 $ 64,453 $ 106,377 3,966 8,091 Under Armour, Inc. December 31 ($ thousands) 2015 2014 Deferred tax assets Stock based compensation Allowance for doubtful accounts and other revenues Accrued expenses Foreign net operating loss carry forward Deferred rent Inventory obsolescence reserves Tax basis inventory adjustments U.S. net operating loss carry forward Foreign tax credits State tax credits, net of foreign impact Deferred compensation Other Total deferred tax assets Less: valuation allowance Total net deferred tax assets Deferred tax liability Property, plant, and equipment Intangible asset Prepaid expenses Other Total deferred tax liabilities Total deferred tax assets, net $ 40,406 33,821 19,999 19,600 13,991 11,956 10,019 9,217 6,151 4,966 2,080 6,346 178,552 (24,043) 154,509 $ 35,161 24,774 11,398 16,302 11,005 8,198 5,845 4,733 5,131 4,245 1,858 4,592 133,242 (15,550) 117,692 (31,069) (17,638) (22,820) (7,010) (8,766) (6,424) (627) (612) (63,282) (31,684) $91,227 $86,008 $ thousands Deferred tax asset Valuation allowance 2012 2013 $ 64,453 $ 106,377 3,966 8,091