Lifetime Fitness 2009 Annual Report Download - page 54

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
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Accounts Receivable — Accounts receivable is presented net of allowance for doubtful accounts. The rollforward of
these allowances are as follows:
December 31,
2009 2008
Allowance for doubtful accounts — beginning of period ................................................... $267 $755
Provisions ............................................................................................................................ 326 108
Write-offs against allowance ............................................................................................... (204) (596)
Allowance for doubtful accounts — end of period ............................................................. $389 $267
Center Operating Supplies and Inventories — Our operating supplies are primarily center supplies. Inventories are
stated at the lower-of-cost-or-market value. Our inventories primarily consist of spa, café and nutritional products as
well as heart rate monitors. These balances are as follows:
December 31,
2009 2008
Center operating supplies .................................................................................................... $ 4,448 $ 5,434
In-center businesses inventory and supplies ....................................................................... 8,758 7,122
Apparel ............................................................................................................................... 798 1,239
Other ................................................................................................................................... 617 837
Total center operating supplies and inventories .................................................................. $14,621 $14,632
Prepaid Expenses and Other Current Assets — Prepaid expenses and other current assets consist of the following:
December 31,
2009 2008
Deferred costs associated with personal training deferred revenue .................................... $2,876 $2,144
Prepaid lease obligations .................................................................................................... 3,134 2,767
Prepaid marketing and media expenses .............................................................................. 1,373 1,927
Other prepaid expenses ....................................................................................................... 2,996 3,132
Other current assets ............................................................................................................ 2,559 1,024
Total prepaid expenses and other current assets ................................................................. $12,938 $10,994
Property and Equipment — Property, equipment and leasehold improvements are recorded at cost. Improvements
are capitalized, while repair and maintenance costs are charged to operations when incurred. The cost and
accumulated depreciation of property and equipment retired and other items disposed of are removed from the
related accounts, and any residual values are charged or credited to income.
Depreciation is computed primarily using the straight-line method over estimated useful lives of the assets.
Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the
estimated useful life of the improvement. Accelerated depreciation methods are used for tax reporting purposes.