Lifetime Fitness 2008 Annual Report Download - page 52

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LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
46
Restricted Cash — We are required to keep funds on deposit at certain financial institutions related to certain of our
credit facilities. Our lender or lenders, as the case may be, may access the restricted cash after the occurrence of an
event of default, as defined under their respective credit facilities.
Accounts Receivable — Accounts receivable is presented net of allowance for doubtful accounts and sales returns
and allowances.
The rollforward of these allowances are as follows:
December 31,
2008 2007 2006
Allowance for Doubtful Accounts:
Balance, beginning of period .................................................
.
$755 $616 $187
Provisions ..............................................................................
.
108 345 542
Write-offs against allowance .................................................
.
(596) (206) (113)
Balance, end of period ...........................................................
.
$267 $755 $616
Sales Returns and Allowances:
Balance, beginning of period .................................................
.
$ – $ – $134
Provisions ..............................................................................
.
– – (52)
Write-offs against allowance .................................................
.
– – (82)
Balance, end of period ...........................................................
.
$ – $ – $ –
The allowance for doubtful accounts decreased primarily as a result of the collection of an escrow receivable
previously deemed uncollectible. We no longer carry sales returns and allowances as a result of our discontinuation
of the sale of our nutritional products through independent retailers during 2006. We continue to sell our nutritional
products through LifeCafe.