Lifetime Fitness 2009 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2009 Lifetime Fitness annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
62
6. Income Taxes
The provision for income taxes is comprised of:
For the Year Ended December 31,
2009 2008 2007
Current tax expense .............................................................................. $41,721 $26,445 $33,358
Deferred tax expense ..................................................................................... 23,316 14,833 8,297
Non-current tax expense ....................................................................... (17,596) 5,946 3,565
Income tax provision ............................................................................ $47,441 $47,224 $45,220
The amount of deferred tax expense does not reconcile to the change in the deferred tax year end balances due to the
tax effect of other comprehensive income or additional paid-in capital items.
The reconciliation between our effective tax rate on income from continuing operations and the statutory tax rate is
as follows:
For the Year Ended December 31,
2009 2008 2007
Income tax provision at federal statutory rate ...................................... $41,939 $41,666 $39,634
State and local income taxes, net of federal tax benefit ........................ 5,414 5,236 4,837
Other, net .............................................................................................. 88 322 749
Income tax provision ............................................................................ $47,441 $47,224 $45,220
Deferred income taxes are the result of provisions of the tax laws that either require or permit certain items of
income or expense to be reported for tax purposes in different periods than they are reported for financial reporting.
The tax effect of temporary differences that gives rise to the deferred tax liability are as follows:
As of December 31,
2009 2008
Property and equipment ................................................................................................. $(81,112) $(58,002)
Partnership interest ........................................................................................................ (8,334) (8,475)
Accrued rent expense .................................................................................................... 11,592 14,071
Other comprehensive income ........................................................................................ 1,581 2,843
Costs related to deferred revenue .................................................................................. (5,411) (7,965)
Other, net ....................................................................................................................... 5,155 6,911
Net deferred tax liability ................................................................................................ $(76,529) $(50,617)