Lifetime Fitness 2012 Annual Report Download - page 55

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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)
49
enrollment fees for any center, the amount of direct expenses in excess of the enrollment fees are expensed in the
current period instead of deferred over the estimated average membership life. The related advertising, office, rent,
labor and other expenses incurred during this period are expensed as incurred.
Cash and Cash Equivalents — We classify all unrestricted cash accounts and highly liquid debt instruments
purchased with original maturities of three months or less as cash and cash equivalents.
Restricted Cash — We are required to keep funds in escrow accounts or on deposit at certain financial institutions
related to certain of our lease and acquisition agreements. We or third parties may access the restricted cash after the
occurrence of a specified event, as provided for under the respective agreements.
Accounts Receivable — Accounts receivable is presented net of allowance for doubtful accounts. The rollforward of
these allowances is as follows:
December 31,
2012 2011 2010
Allowance for doubtful accounts — beginning of period $ 167 $ 150 $ 389
Provisions 675 216 166
Write-offs against allowance (629)(199)(405)
Allowance for doubtful accounts — end of period $ 213 $ 167 $ 150
Center Operating Supplies and Inventories — Our operating supplies are primarily center supplies such as towels,
pool chemicals and materials for our child centers and other activities. Our inventories primarily consist of spa, café
and nutritional products as well as personal training products including heart rate monitors. Inventories are stated at
the lower-of-cost-or-market value and are removed from the balance on a first-in-first-out basis. These balances are
as follows:
December 31,
2012 2011
Center operating supplies $ 6,616 $ 5,806
In-center businesses inventory and supplies 18,256 14,310
Apparel and other 2,368 1,484
Total center operating supplies and inventories $ 27,240 $ 21,600
Prepaid Expenses and Other Current Assets — Prepaid expenses and other current assets consist of the following:
December 31,
2012 2011
Deferred costs associated with personal training deferred revenue $ 4,375 $ 3,981
Prepaid lease obligations 3,228 2,301
Prepaid marketing and media expenses 6,296 2,791
Prepaid insurance 288 4,413
Other prepaid expenses 8,032 4,416
Land held-for-sale — short-term — 1,288
Canadian sales tax receivable 1,406 2,708
Other current assets 3,201 1,007
Total prepaid expenses and other current assets $ 26,826 $ 22,905