Lifetime Fitness 2008 Annual Report Download - page 61

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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)
55
Supplemental Cash Flow Information — Decreases (increases) in operating assets and increases (decreases) in
operating liabilities are as follows:
For the Year Ended December 31,
2008 2007 2006
Accounts receivable.............................................................. $ (1,747) $(2,155) $ 1,947
Income tax receivable ........................................................... 5,917 (1,112) 13,643
Inventories and center operating supplies ............................. (308) (5,551) (3,104)
Prepaid expenses and other current assets ............................ 5,028 (6,762) (2,014)
Deferred membership origination costs ................................ (3,515) (7,122) (4,958)
Accounts payable ................................................................. (5,364) 4,895 (132)
Accrued expenses ................................................................. (315) 9,861 9,329
Deferred revenue .................................................................. (2,190) 6,690 7,904
Deferred rent ......................................................................... 2,399 (190) 2,546
Other liabilities ..................................................................... 13,638 902 264
Changes in operating assets and liabilities ........................... $13,543 $ (544) $25,425
Our capital expenditures were as follows:
For the Year Ended December 31,
2008 2007 2006
Purchases of property and equipment ................................... $463,337 $415,822 $261,767
Non-cash property and equipment purchases financed
through capital lease obligations ....................................... 9,910 1,445
—
Non-cash property purchases financed through notes
payable obligations ............................................................
—
95
1
,
620
Non-cash property purchases in accounts payable ...............
.
3,963 10,218 22,594
Non-cash share-based compensation capitalized to
projects under development...............................................
.
641 744 1,055
Total capital expenditures ..................................................... $477,851 $428,324 $287,036
We made cash payments for income taxes for each of the three years ended December 31, 2008, 2007 and 2006 of
$19.9 million, $33.7 million and $17.0 million, respectively.
We made cash payments for interest for each of the three years ended December 31, 2008, 2007 and 2006 of $35.6
million, $30.6 million and $22.2 million, respectively. Included in these interest payments was capitalized interest of
$9.1 million, $8.4 million and $5.3 million, respectively.
New Accounting Pronouncements — In March 2008, the FASB issued SFAS No. 161, “Disclosures About
Derivative Instruments and Hedging Activities — an amendment of SFAS No. 133” ("SFAS 161"). SFAS 161
requires enhanced disclosures about an entity’s derivative and hedging activities including how and why an entity
uses derivative instruments, how derivative instruments and related hedged items are accounted for, and how
derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash
flows. SFAS 161 will be effective for us on January 1, 2009. The adoption of SFAS 161 is not expected to have a
material effect on our financial position or results of operations.