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Fixed Asset Impairment
3 Months Ended
Mar. 31, 2012
Asset Impairment Charges [Abstract]  
Fixed Asset Impairment

8. Fixed Asset Impairment

 

Fixed assets are evaluated for impairment periodically whenever events or changes in circumstances indicate that related carrying amounts may not be recoverable from undiscounted cash flows in accordance with FASB released guidance. The Company's long-lived assets and liabilities are grouped at the individual club level, which is the lowest level for which there is identifiable cash flow. To the extent that estimated future undiscounted net cash flows attributable to the assets are less than the carrying amount, an impairment charge equal to the difference between the carrying value of such asset and its fair value, calculated using discounted cash flows, is recognized. In the three months ended March 31, 2012, the Company tested six underperforming clubs and no impairments were found. The six clubs had an aggregate of $14,304 of net leasehold improvements and furniture and fixtures remaining as of March 31, 2012. The Company will continue to monitor the results and changes in expectations of these clubs closely during 2012 to determine if fixed asset impairment is necessary. The Company did not record any fixed asset impairment charges during the three months ended March 31, 2011.