Lifetime Fitness 2013 Annual Report Download - page 56

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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)
50
Prepaid Expenses and Other Current Assets — Prepaid expenses and other current assets consist of the following:
December 31,
2013 2012
Deferred costs associated with personal training deferred revenue $ 4,691 $ 4,375
Prepaid lease obligations 3,843 3,228
Prepaid marketing and media expenses 3,653 6,296
Prepaid maintenance agreements 4,787 5,551
Prepaid licenses and subscriptions 2,548 1,412
Other prepaid expenses 2,391 1,357
Land held for sale – short-term 839 —
Canadian sales tax receivable 944 1,406
Other current assets 2,106 3,201
Total prepaid expenses and other current assets $ 25,802 $ 26,826
Property and Equipment — Property, equipment and leasehold improvements are recorded at cost. Improvements
are capitalized while repair and maintenance costs are charged to operations when incurred.
Depreciation is computed using the straight-line method over estimated useful lives of the assets. Leasehold
improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful
life of the improvement. Accelerated depreciation methods are used for tax reporting purposes.
Property and equipment consist of the following:
Depreciable December 31,
Lives 2013 2012
Land $ 330,800 $ 300,887
Buildings and related fixtures 3-39 years 1,721,635 1,589,960
Leasehold improvements 1-20 years 115,443 87,951
Construction in progress 160,560 68,358
Total land, buildings, leaseholds and construction in process 2,328,438 2,047,156
Equipment:
Fitness 3-7 years 126,692 113,521
Other equipment 3-7 years 101,450 88,290
Computer and telephone 3-7 years 71,623 65,947
Capitalized software 3-5 years 87,707 68,319
Decor and signage 5 years 20,134 18,553
Audio/visual 5 years 35,064 32,223
Furniture and fixtures 5-7 years 19,946 18,197
Total equipment 462,616 405,050
Property and equipment, gross 2,791,054 2,452,206
Less accumulated depreciation 685,977 593,540
Property and equipment, net $ 2,105,077 $ 1,858,666