Lifetime Fitness 2009 Annual Report Download - page 57

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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)
52
Intangible assets are comprised principally of goodwill, leasehold rights at our Highland Park, Minnesota office
building and trade names. In accordance with accounting guidance on goodwill and intangible assets, intangible
assets determined to have an indefinite useful life, which consist of all our intangible assets, are not amortized but
instead tested for impairment at least annually.
We are required to test our intangible assets for impairment on an annual basis. We are also required to evaluate
these assets for impairment between annual tests if an event occurs or circumstances change that would more likely
than not reduce the fair value of the intangible asset below its carrying amount. An indicator of potential impairment
that could impact our intangible asset values include, but is not limited to, a significant loss of occupancy at our
rental property located in Highland Park, Minnesota.
The following table summarizes the changes in our net intangible balance during the years ended December 31,
2009 and 2008:
Balance at December 31, 2007 ........................................................................................................... $5,505
Purchase price adjustment (1) ....................................................................................................... 340
Goodwill acquired ......................................................................................................................... 2,751
Balance at December 31, 2008 ........................................................................................................... 8,596
Balance at December 31, 2009 ........................................................................................................... $8,596
(1) Includes adjustments related to the finalization of the purchase price allocation of acquisition transactions.
The following table summarizes the carrying amounts of our intangible assets:
December 31,
2009 2008
Goodwill ..................................................................................................................... $5,690 $5,690
Leasehold rights .......................................................................................................... 2,318 2,318
Trade names ................................................................................................................ 588 588
Total intangible assets ................................................................................................. $8,596 $8,596
Accrued Expenses — Accrued expenses consist of the following:
December 31,
2009 2008
Payroll related ............................................................................................................. $ 9,222 $ 9,063
Real estate taxes .......................................................................................................... 16,291 13,557
Center operating costs ................................................................................................. 11,385 11,167
Insurance ..................................................................................................................... 2,847 2,659
Interest ........................................................................................................................ 1,792 3,357
Income taxes ............................................................................................................... 1,117 887
Other ........................................................................................................................... 5,581 5,540
Total accrued expenses ............................................................................................... $48,235 $46,230