Lifetime Fitness 2013 Annual Report Download - page 74

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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)
68
As of December 31,
2013 2012
Deferred tax assets:
Accrued rent expense $ 9,566 $ 8,297
Other comprehensive income 3,912 3,216
Accrued equity compensation 4,150 7,670
Deferred revenue 3,502 4,061
Foreign net operating loss 1,050 1,145
Other 1,913 1,923
Total deferred tax assets 24,093 26,312
Deferred tax liabilities:
Property and equipment (103,417)(97,628)
Partnership interest (4,622)(5,781)
Costs related to deferred revenue (5,728)(7,242)
Other (3,949)(2,357)
Total deferred tax liabilities (117,716)(113,008)
Net deferred tax liability $(93,623) $ (86,696)
Current deferred tax assets $ 10,615 $ 14,502
Current deferred tax liabilities (3,734)(5,689)
Net current deferred tax assets 6,881 8,813
Non-current deferred tax assets 13,478 11,810
Non-current deferred tax liabilities (113,982)(107,319)
Net non-current deferred tax liabilities (100,504)(95,509)
Net deferred tax liability $(93,623) $ (86,696)
The following is a reconciliation of the total amounts of unrecognized tax benefits:
For the Year Ended December 31,
2013 2012 2011
Unrecognized tax benefit – beginning balance $ 746 $ 868 $ 1,229
Gross increases – tax positions in current period 300 300 100
Prior year increases — — 46
Prior year decreases —(150) —
Lapse of statute of limitations (251)(272)(507)
Unrecognized tax benefit – ending balance $ 795 $ 746 $ 868
Included in the balance of unrecognized tax benefits at December 31, 2013, 2012 and 2011 are $0.8 million, $0.5
million and $0.5 million, respectively, of benefits that, if recognized, would affect the effective tax rate.
We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to
the uncertain tax benefits noted above, we accrued penalties and interest of $0.1 million during 2013 and in total, as
of December 31, 2013, had recognized a liability for penalties and interest of $0.1 million. During 2012, we accrued
penalties and interest of $0.1 million and in total, as of December 31, 2012 had recognized a liability for penalties