Lifetime Fitness 2012 Annual Report Download - page 66

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
60
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
$4.8 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 and operations of our center in Toronto,
Canada, our first international location. For more information on the swap contract, see Note 4.
New Accounting Pronouncements — In September 2011, the FASB issued guidance on goodwill impairment testing.
The guidance became effective for us in fiscal 2012. 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. The
implementation of the guidance did not have a material impact on our consolidated financial statements.
In June 2011, the FASB updated guidance on presentation of comprehensive income. The FASB subsequently
deferred the effective date of certain provisions of this standard pertaining to the reclassification of items out of
accumulated other comprehensive income, pending the issuance of further guidance on that matter. The new
guidance eliminates the current option to report other comprehensive income and its components in the statement of
changes in equity. Instead, an entity is required to present either a continuous statement of net income and other
comprehensive income or two separate but consecutive statements. As this guidance relates to presentation only, the
adoption did not have a material impact on our consolidated financial statements.
In July 2012, the FASB updated guidance on intangible asset impairment testing. The guidance will become
effective for us in fiscal 2013. The amendments in this update allow companies to first assess qualitative factors to
determine whether it is necessary to perform a quantitative impairment test. Under the update, a company will not be
required to calculate the fair value of an indefinite-lived intangible asset unless the company determines, based on
qualitative assessment, that it is not more likely than not, the indefinite-lived intangible asset is impaired. The
amendments include a number of events and circumstances for an entity 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.
In February 2013, the FASB issued guidance adding new disclosure requirements for items reclassified out of
accumulated other comprehensive income ("AOCI"), which will become effective for us in fiscal 2013. The
guidance is intended to help entities improve the transparency of changes in other comprehensive income ("OCI")
and items reclassified out of AOCI in their financial statements. It does not amend any existing requirements for
reporting net income or OCI in the financial statements. We do not expect the implementation of the guidance to
have a material impact on our consolidated financial statements.