Basis of Presentation

9 Months Ended

Sep. 30, 2012

Basis of presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

As of September 30, 2012, Town Sports International Holdings, Inc. (the “Company” or “TSI Holdings”), through its wholly-owned subsidiary, Town Sports International, LLC (“TSI, LLC”), operated 160 fitness clubs (“clubs”), comprised of 108 clubs in the New York metropolitan market under the “New York Sports Clubs” brand name, 25 clubs in the Boston market under the “Boston Sports Clubs” brand name, 18 clubs (two of which are partly-owned) in the Washington, D.C. market under the “Washington Sports Clubs” brand name, six clubs in the Philadelphia market under the “Philadelphia Sports Clubs” brand name and three clubs in Switzerland. The Company's operating segments are New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs, Washington Sports Clubs and Swiss Sports Clubs. The Company has determined that its operating segments have similar economic characteristics and meet the criteria which permit them to be aggregated into one reportable segment.

The condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The condensed consolidated financial statements should be read in conjunction with the Company's December 31, 2011 consolidated financial statements and notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011. The year-end condensed consolidated balance sheet data included within this Form 10-Q was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“US GAAP”). Certain information and footnote disclosures that are normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to SEC rules and regulations. The information reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the interim periods set forth herein. The results for the three and nine months ended September 30, 2012 are not necessarily indicative of the results for the entire year ending December 31, 2012.Certain reclassifications were made to the reported amounts as of December 31, 2011 to conform to the presentation as of September 30, 2012.

Balance Sheet Revisions

The Company has revised its March 31, 2012, December 31, 2011 and December 31, 2010 consolidated balance sheets to correct a classification error by reflecting a portion of deferred tax assets, from noncurrent to current assets.

	March 31, 2012						December 31, 2011						December 31, 2010
	As Previously						As Previously						As Previously
	Filed		As Revised		Difference		Filed		As Revised		Difference		Filed		As Revised		Difference
Current deferred tax assets, net	$	-	$	20,609	$	20,609	$	-	$	20,218	$	20,218	$	-	$	9,776	$	9,776
Total current assets	$	60,230	$	80,839	$	20,609	$	64,699	$	84,917	$	20,218	$	64,833	$	74,609	$	9,776
Noncurrent deferred tax assets, net	$	37,603	$	16,994	$	(20,609)	$	40,000	$	19,782	$	(20,218)	$	41,883	$	32,107	$	(9,776)
Total assets	$	433,285	$	433,285	$	-	$	449,542	$	449,542	$	-	$	464,166	$	464,166	$	-

These adjustments were not considered material individually or in the aggregate to previously issued financial statements. However, because of the significance of these adjustments, the Company revised the respective balance sheets. These revisions had no impact on the Company's total assets, results of operations or cash flows.

Change in Estimated Average Membership Life

Joining fees and related direct and incremental expenses of membership acquisition, which include sales commissions, bonuses and related taxes and benefits, which are direct and incremental costs related to the sale of new memberships, are currently deferred and recognized, on a straight-line basis, in operations over the estimated average membership life. Currently, the estimated average membership life of an unrestricted member has remained unchanged at 28 months since January 1, 2012.

The Company tracks the estimated average membership life of restricted members separately from unrestricted members. The restricted membership base currently includes student memberships introduced in April 2010, teacher memberships introduced in April 2011 and first responder memberships introduced as a one-time promotional offer in September 2011.The table below summarizes the estimated average membership life of restricted student members in each of the first three quarters of 2012 and 2011.

	Estimated Average Restricted Student Member Life
Period	2012	2011
Three months ended March 31	25 months	27 months
Three months ended June 30	27 months	27 months
Three months ended September 30	28 months	28 months

If the estimated average membership life for restricted student members had remained at 27 months for the three months ended September 30, 2012, the impact would have been an increase in revenue and net income of approximately $34 and $17, respectively.