Lifetime Fitness 2009 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2009 Lifetime Fitness annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
66
Summary of Stock Option Activity
Options Shares
Weighted-
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value
Outstanding at December 31, 2006 ....................... 1,724,599 $20.15
Granted ................................................................ 2,477 50.85
Ex er ci se d ............................................................. (4 87,075) 17.34
Ca n ce le d .............................................................. (31,734) 26.82
Outstanding at December 31, 2007 ....................... 1,208,267 21.17
Granted ................................................................ — —
Ex er ci se d ............................................................. (185,453) 16 .4 3
Ca n ce le d .............................................................. (41,885) 30.87
Outstanding at December 31, 2008 ....................... 980,929 21.65
Granted ................................................................ — —
Ex er ci se d ............................................................. (166,950) 14 .8 0
Ca n ce le d .............................................................. (3,401) 29.64
Outstanding at December 31, 2009 ....................... 810,578 $22.93 4.8 $3,669
Vested or Expected to Vest at
December 31, 2009 .......................................... 809,058 $22.88 4.7 $3,669
Exercisable at December 31, 2009 ........................ 795,963 $22.49 4.7 $3,669
No stock options were granted during the years ended December 31, 2008 and 2009. The weighted average grant date fair
value of stock options granted during the year ended December 31, 2007 was $20.35. The aggregate intrinsic value of
options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the
option) exercised during the years ended December 31, 2009 and 2008 was $2.0 million and $3.8 million,
respectively. As of December 31, 2009, there was less than $0.1 million of unrecognized compensation expense to
be recognized over a weighted-average period of 0.1 years.
The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model
with the following weighted average assumptions used:
December 31,
2009 (1) 2008 (1) 2007
Risk-free interest rate .................................................................................... — — 4.7%
Expected dividend yield ................................................................................ — — —
Expected life in years (2) ............................................................................... — — 5
Volatility (2) ................................................................................................... — — 36.9%
(1) No stock options were granted in 2009 or 2008.
(2) The volatility and expected life assumptions presented are based on an average of the volatility
assumptions reported by a peer group of publicly traded companies.