Lifetime Fitness 2013 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
Our capital expenditures were as follows:
For the Year Ended December 31,
2013 2012 2011
Cash purchases of property and equipment $ 348,948 $ 224,194 $ 165,335
Non-cash change in construction accounts payable 22,134 3,316 (2,450)
Other non-cash changes to property and equipment (5,964) 5,604 839
Total capital expenditures $ 365,118 $ 233,114 $ 163,724
We made cash payments for income taxes for each of the three years ended December 31, 2013, 2012 and 2011 of
$71.9 million, $61.5 million and $48.4 million, respectively.
We made cash payments for interest, net of capitalized interest, for each of the three years ended December 31,
2013, 2012 and 2011 of $22.9 million, $23.8 million and $17.7 million, respectively. Capitalized interest was $3.3
million, $1.1 million and $1.2 million during those same periods, respectively.
Construction accounts payable and accounts payable related to property and equipment was $47.3 million at
December 31, 2013 and $25.2 million at December 31, 2012.
In December 2011, we purchased the land and building of six of our existing centers we had previously leased. The
purchase was financed by borrowings from our credit facility and the assumption of a securitized commercial
mortgage-backed loan of approximately $72.1 million (see Note 4), which approximates fair value, based on an
independent assessment.
New Accounting Pronouncements — In July 2012, the FASB updated guidance on intangible asset impairment
testing. The guidance became 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 is not 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. The implementation of the guidance did not 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 became 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 did not amend any existing requirements for reporting net
income or OCI in the financial statements. The implementation of the guidance did not have a material impact on
our consolidated financial statements.
3. Investment in Unconsolidated Affiliate
In December 1999, we, together with two unrelated organizations, formed an Illinois limited liability company
named Bloomingdale LIFE TIME Fitness L.L.C. (“Bloomingdale LLC”) for the purpose of constructing and
operating a center in Bloomingdale, Illinois. The center opened for business in February 2001. Each of the three
members maintains an equal interest in Bloomingdale LLC. Pursuant to the terms of the agreement that governs the
formation and operation of Bloomingdale LLC (the “Operating Agreement”), each of the three members contributed
$2.0 million to Bloomingdale LLC. We share joint control of the center with our joint venture partners, as all
decisions essential to the accomplishments of the purpose of Bloomingdale LLC require the consent of the other
members of Bloomingdale LLC. The Operating Agreement expires on the earlier of December 2039 or the
liquidation of Bloomingdale LLC. We account for our interest in Bloomingdale LLC using the equity method.