Lifetime Fitness 2011 Annual Report Download - page 64

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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)
58
Comprehensive Income — Comprehensive income (loss) reflects the change in equity of a business enterprise
during a period from transactions and other events and circumstances from nonowner sources. For us, the difference
between net income as reported on the consolidated statements of operations and comprehensive income is a loss of
$2.6 million, net of tax of $1.2 million. This difference is related to the interest rate swap contract and related to
foreign currency translation due to expenditures for initial construction costs for the construction of a center in
Toronto, Canada, our first international location. For more information on the swap contract, see Note 4.
The following table summarizes components of accumulated other comprehensive (loss) gain at December 31, 2011,
2010 and 2009:
Foreign currency translation adjustments, net of income taxes
of $308, $11 and $0, respectively
Unrealized (loss) gain on interest rate swap contract, net of
income taxes of $1,192, $0 and $1,581, respectively
Accumulated Other Comprehensive (Loss) Gain
December 31,
2011
$(805)
(1,788)
$(2,593)
2010
$30
—
$30
2009
$—
(2,614)
$(2,614)
New Accounting Pronouncements — In October 2009, the Financial Accounting Standards Board issued guidance on
revenue arrangements with multiple deliverables effective for us in fiscal 2011. The guidance revises the criteria for
measuring and allocating consideration to each component of a multiple deliverable arrangement. The guidance
requires companies to allocate revenue using the relative selling price of each deliverable, which must be estimated
if the company does not have either a history of selling the deliverable on a standalone basis or third-party evidence
of selling price. The implementation of the guidance did not have a material impact on our consolidated financial
statements.
In September 2011, the Financial Accounting Standards Board issued guidance on goodwill impairment testing. The
guidance is effective for us in fiscal 2012, although early adoption is permitted. The guidance allows companies to
first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill
impairment test. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity
determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying
amount. The guidance also includes examples of the types of factors to consider in conducting the qualitative
assessment. We do not expect the implementation of the guidance to have a material impact on our consolidated
financial statements.