Lifetime Fitness 2009 Annual Report Download - page 66

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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)
61
We have financed our purchase of some of our equipment through capital lease agreements with an agent and
lender, on behalf of itself and other lenders. The terms of such leases are typically 60 months and our interest rates
range from 5.5% to 7.5%. As security for the obligations owing under the capital lease agreements, we have granted
a security interest in the leased equipment to the lender or its assigns. At December 31, 2009, $2.6 million was
outstanding under these leases.
We are a party to capital equipment leases with third parties which include monthly rental payments of
approximately $0.2 million as of December 31, 2009. Amortization recorded for these capital leased assets totaled
$1.0 million and $2.6 million for the years ended December 31, 2009 and 2008, respectively. The following is a
summary of property and equipment recorded under capital leases:
December 31,
2009 2008
Land and buildings ........................................................................................................... $15,484 $16,912
Equipment ........................................................................................................................ 4,014 16,946
Gross property and equipment under capital lease ........................................................... 19,498 33,858
Less accumulated amortization ....................................................................................... 4,196 18,007
Net property and equipment under capital lease ............................................................... $15,302 $15,851
Future minimum lease payments and the present value of net minimum lease payments on capital leases at
December 31, 2009 are as follows:
2010 ........................................................................................................................................................ $2,606
2011 ........................................................................................................................................................ 2,501
2012 ........................................................................................................................................................ 2,551
2013 ........................................................................................................................................................ 1,910
2014 ........................................................................................................................................................ 11,405
Thereafter ............................................................................................................................................... 6,460
27,433
Less amounts representing interest ......................................................................................................... 8,724
Present value of net minimum lease payments ....................................................................................... 18,709
Current portion ....................................................................................................................................... 1,062
$17,647
Debt Covenants
We were in compliance in all material respects with all restrictive and financial covenants under our various credit
facilities as of December 31, 2009.
5. Subsequent Event
On February 23, 2010, we prepaid three of the mortgage notes payable to TIAA at the par amount of $30.2 million.
Concurrent with the prepayment, the mortgages were released on three of our centers. Additionally, the loan
documents with TIAA were amended reducing the number of shares of our common stock our Chief Executive
Officer must retain from 1.8 million to 1.0 million. As of the date of the prepayment, the obligations to TIAA under
the remaining ten mortgage notes payable, totaling $74.3 million, remain due in July 2011.