Lifetime Fitness 2013 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2013 Lifetime Fitness annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
54
Intangible assets consisted of the following:
December 31,
2013 2012
Gross Accumulated
Amortization Net Gross Accumulated
Amortization Net
Leasehold rights $ 6,392 $ 1,435 $ 4,957 $ 6,392 $ 993 $ 5,399
Trade/brand names 15,479 1,011 14,468 10,132 503 9,629
Curriculum- and
technology-based
intangibles 6,695 1,286 5,409 6,595 751 5,844
Customer relationships 5,412 947 4,465 5,412 406 5,006
Total intangible assets $33,978 $ 4,679 $29,299 $28,531 $ 2,653 $25,878
Leasehold rights have useful lives ranging from six to 24 years. Approximately $9.3 million of our trade/brand
names have indefinite useful lives. The remaining $6.2 million of our trade/brand names have a weighted-average
useful life of approximately 13 years. Curriculum- and technology-based intangibles have useful lives ranging from
two to 15 years. The customer relationship intangible has a useful life of 10 years. Amortization expense for
intangible assets was $2.0 million, $1.7 million and $0.5 million for the years ended December 31, 2013, 2012 and
2011, respectively. As of December 31, 2013, expected amortization expense for intangible assets for each of the
next five years and thereafter was as follows:
2014 $ 2,062
2015 2,054
2016 1,935
2017 1,910
2018 1,910
Thereafter 10,051
Total expected amortization expense for intangible assets $ 19,922
Other Assets — We record other assets at cost. Amortization of financing costs is computed over the periods of the
related debt financing. Other assets consist of the following:
December 31,
2013 2012
Financing costs, net $ 10,393 $ 7,960
Investment in unconsolidated affiliate (see Note 3) 4,761 4,331
Land held for sale 15,787 17,229
Executive nonqualified plan (see Note 11) 5,410 3,980
Other 6,333 7,733
Total other assets $ 42,684 $ 41,233
Land held for sale consists of excess land purchased as part of our original center site acquisitions. All land held for
sale is currently being marketed for sale. If the excess land is currently under contract for sale, the cost is reflected as
current and listed within prepaid expenses and other current assets. Land held for sale is stated at the lower-of-cost
or fair market value less estimated costs to sell.