Lifetime Fitness 2006 Annual Report Download - page 24

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If it becomes necessary to protect or defend our intellectual property rights or if we infringe on the intellectual
property rights of others, we may become involved in costly litigation or be required to pay royalties or fees.
We may have disputes with third parties to enforce our intellectual property rights, protect our trademarks,
determine the validity and scope of the proprietary rights of others or defend ourselves from claims of infringement,
invalidity or unenforceability. Such disputes may require us to engage in litigation. We may incur substantial costs
and a diversion of resources as a result of such disputes and litigation, even if we win. In the event that we do not
win, we may have to enter into royalty or licensing agreements, we may be prevented from using the marks within
certain markets in connection with goods and services that are material to our business or we may be unable to
prevent a third party from using our marks. We cannot assure you that we would be able to reach an agreement on
reasonable terms, if at all. In particular, although we own an incontestable federal trademark registration for use of
the LIFE TIME FITNESS® mark in the field of health and fitness centers, we are aware of entities in certain
locations around the country that use LIFE TIME FITNESS or a similar mark in connection with goods and services
related to health and fitness. The rights of these entities in such marks may predate our rights. Accordingly, if we
open any centers in the areas in which these parties operate, we may be required to pay royalties or may be
prevented from using the mark in such areas.
Our business could be affected by acts of war or terrorism.
Current world tensions could escalate, potentially leading to war or acts of terrorism. This could have unpredictable
consequences on the world economy and on our business.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Our corporate headquarters, located in Eden Prairie, Minnesota, is approximately 87,000 square feet, 74,850 square
feet is currently under lease until October 2007 and approximately 12,150 square feet is currently under lease until
October 2008. We are currently constructing a 105,000 square foot office facility on land we own in Chanhassen,
Minnesota.
As of February 28, 2007, we operated 60 centers, of which we leased 18 sites, were parties to long-term ground
leases for four sites and owned 38 sites. We expect to open eight centers on sites we own in various markets in 2007,
all of which are currently under construction. Excluding renewal options, the terms of leased centers, including
ground leases, expire at various dates from 2007 through 2041. The majority of our leases have renewal options and
a few give us the right to purchase the property. The table below contains information about our current center
locations:
Location Owned/Leased
Center
Format
Square Feet
(1) Date Opened
1. Eagan, MN Owned Large 64,415 September 1994
2. Woodbury, MN (2) Leased Large 73,050 September 1995
3. Roseville, MN Leased Other 14,000 September 1995
4. Highland Park, MN (3) Owned Other 25,827 November 1995
5. Coon Rapids, MN (4) Leased Other 90,262 May 1996
6. Bloomington, MN Owned Other 47,307 November 1996
7. Plymouth, MN Leased (Ground) Large 109,558 June 1997
8. St. Paul, MN Leased Other 85,630 December 1997
9. Troy, MI Owned Large 93,579 January 1999
10. Apple Valley, MN Leased Other 10,375 June 1999
11. Columbus, OH Leased (Ground) Large 98,047 July 1999
12. Indianapolis, IN Owned Large 90,956 August 1999
13. Novi, MI Owned Large 90,956 October 1999
14. Centreville, VA Owned Large 90,956 January 2000