Lifetime Fitness 2007 Annual Report Download - page 57

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
51
Supplemental Cash Flow Information — Decreases (increases) in operating assets and increases (decreases) in
operating liabilities are as follows:
For the Year Ended December 31,
2007 2006 2005
Accounts receivable.............................................................. $ (2,155) $ 1,947 $ (3,080)
Income tax receivable........................................................... (1,112) 13,643 1,068
Inventories............................................................................ (5,551) (3,104) (698)
Prepaid expenses and other current assets ............................ (6,762) (2,014) 88
Deferred membership origination costs................................ (7,122) (4,958) (3,159)
Accounts payable ................................................................. 4,895 (132) 12,623
Accrued expenses................................................................. 9,861 9,329 8,711
Deferred revenue .................................................................. 6,690 7,904 5,503
Deferred rent......................................................................... (190) 2,546 1,814
Other liabilities ..................................................................... 902 264 —
$ (544) $ 25,425 $ 22,870
Our capital expenditures were as follows:
For the Year Ended December 31,
2007 2006 2005
Purchases of property and equipment................................... $ 415,822 $ 261,767 $ 190,355
Non-cash property and equipment purchases financed
through capital lease obligations ....................................... 1
,
445
—
96
Non-cash property purchases financed through notes
payable obligations............................................................ 95 1
,
620
—
Non-cash property purchases in accounts payable ...............
.
10,218 22,594 8,773
Non-cash share-based compensation capitalized to
projects under development...............................................
.
744 1,055 —
Total capital expenditures..................................................... $ 428,324 $ 287,036 $ 199,224
New Accounting Pronouncements — In July 2006, the FASB issued Financial Interpretation No. 48 (“FIN 48”). FIN
48 clarifies the application of SFAS No. 109 by defining a criterion that an individual tax position must meet for any
part of the benefit of that position to be recognized in an enterprise’s financial statements. The criterion allows for
recognition in the financial statements of a tax position when it is more likely than not that the position will be
sustained upon examination. FIN 48 was effective for us on January 1, 2007. For more information on the adoption
of FIN 48, see Note 6.
In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting
Standards No. 157, “Fair Value Measurements” (“SFAS 157”). This accounting standard defines fair value,
establishes a framework for measuring fair value and expands disclosures about fair value measurements. The
standard applies under other accounting pronouncements that require or permit fair value measurements with certain
exceptions. SFAS 157 was effective for us January 1, 2008. The adoption of SFAS 157 is not expected to have a
material effect on our financial position or results of operations.