Lifetime Fitness 2006 Annual Report Download - page 62

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LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
56
the closing price of our stock on the dates of issue which ranged from $42.72 to $50.82 during 2006. The restricted
stock generally vests over periods ranging from one to five years. As of December 31, 2006, we had granted a total
of 1,927,188 options to purchase common stock, of which options to purchase 1,194,992 shares were outstanding,
and a total of 243,435 restricted shares under the 2004 Plan, of which 210,894 restricted shares were unvested. As of
December 31, 2006, 1,407,502 shares remain available for grant under the 2004 Plan.
Total share-based compensation expense, which includes stock option expense from the adoption of SFAS 123(R)
and restricted stock expense, included in our consolidated statements of operations for the years ended December
31, 2006 and 2005, was as follows (in thousands):
For the Year Ended December 31,
2006 2005
Share-based compensation expense related to stock options................... $5,671 $388
Share-based compensation expense related to restricted shares.............. 1,833 —
Share-based compensation expense related to ESPP................................ 52 —
Total share-based compensation expense................................................... $7,556 $388
A summary of restricted stock activity follows:
Restricted
Shares
Outstanding
Range of Market
Price Per Share
on Grant Date
Balance — December 31, 2004 .......................................................................... 7,028 $26.23
Granted ......................................................................................................... 80,243 24.75-33.14
Vested .......................................................................................................... (3,637) 25.47-26.23
Balance — December 31, 2005 .......................................................................... 83,634 24.75-33.14
Granted ......................................................................................................... 156,164 42.72-50.82
Canceled ....................................................................................................... (320) 46.51
Vested .......................................................................................................... (28,584) 24.75-42.72
Balance — December 31, 2006 .......................................................................... 210,894 $24.75-50.82
During the years ended December 31, 2006 and 2005, we issued 156,164 and 80,243 shares of restricted stock,
respectively, with an aggregate fair value of $7.8 million and $2.6 million, respectively. The fair market value of
restricted shares that became vested during the year ended December 31, 2006 was $0.9 million. The total value of
each restricted stock grant, based on the fair market value of the stock on the date of grant, is amortized to
compensation expense on a straight-line basis over the related vesting period.