Lifetime Fitness 2013 Annual Report Download - page 59

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
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valuation of the assets acquired and liabilities assumed. The goodwill acquired during the year ended December 31,
2012 is primarily from the acquisition of race registration and timing businesses as well as other smaller
acquisitions. The changes in the carrying amount of goodwill are as follows:
Balance at December 31, 2011 $ 25,550
Goodwill acquired 11,626
Balance at December 31, 2012 37,176
Goodwill acquired 12,019
Balance at December 31, 2013 $ 49,195
Goodwill has an indefinite useful life and is not amortized but instead tested for impairment annually at September
30, or more frequently if necessary. We test goodwill at the reporting unit level which is one level below the
operating segment. For us, this is generally the individual center or athletic event level. Based upon our review and
analysis, no impairments were deemed to have occurred during the years ended December 31, 2013, 2012 or 2011.
Intangible Assets — Intangible assets are comprised of trade names, leasehold rights, curriculum- and technology-
based intangible assets and customer relationships. Intangible assets determined to have an indefinite useful life are
not amortized but instead tested for impairment at least annually.
We evaluate our intangible assets for impairment on an annual basis each September 30. We are also required to
evaluate these assets for impairment between annual tests if an event occurs or circumstances change that would
more likely than not reduce the fair value of the intangible asset below its carrying amount. Based upon our review
and analysis, no impairments were deemed to have occurred during the years ended December 31, 2013, 2012 or
2011.
The following table summarizes the changes in our gross intangible balance:
Balance at December 31, 2011 $ 10,481
Leasehold rights acquired 4,000
Trade/brand names acquired 5,566
Curriculum- and technology-based intangibles acquired 3,965
Customer relationships acquired 4,519
Balance at December 31, 2012 28,531
Trade/brand names acquired 5,347
Curriculum- and technology-based intangibles acquired 100
Balance at December 31, 2013 $ 33,978
The leasehold rights acquired during the year ended December 31, 2012 are related to our acquisition of Racquet
Club of the South, which we rebranded Life Time Athletic Peachtree Corners. The trade/brand names acquired
during the year ended December 31, 2012 are related to the acquisition of race registration and timing businesses
and certain athletic events. The curriculum-and technology-based intangibles and the customer relationship
intangible acquired during the year ended December 31, 2012 are related to the race registration and timing business
acquisition.
The trade/brand names acquired during the year ended December 31, 2013 are primarily related to the acquisition of
certain athletic events. The curriculum-and technology-based intangible acquired during the year ended
December 31, 2013 is related to a patent purchased for use in our race registration and timing business.