Lifetime Fitness 2010 Annual Report Download - page 72

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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)
66
compensation expense will increase based on the currently projected performance levels. If we had determined that
all of the targets had become probable on December 31, 2010, we would have recognized an $11.2 million (pretax)
cumulative compensation adjustment on that date. Since the first EPS target became probable, only 50% of this
amount, or $5.6 million, was recorded at December 31, 2010. If we later determine that it is not probable that the
minimum EPS performance threshold for the grant vesting will be met, no further compensation cost will be
recognized and any previously recognized compensation cost will be reversed. In accordance with the related
accounting guidance, none of these shares were included in our total diluted share count at December 31, 2010 or
2009.
Summary of Stock Option Activity
Shares
Weighted
Average
Exercise
Price
Weighted Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic
Value
Outstanding at December 31, 2007....................... 1,208,267 $21.17
Exercised .............................................................. (185,453) $16.43
Canceled ............................................................... (41,885) $30.87
Outstanding at December 31, 2008....................... 980,929 $21.65
Exercised .............................................................. (166,950) $14.80
Canceled ............................................................... (3,401) $29.64
Outstanding at December 31, 2009....................... 810,578 $22.93
Exercised .............................................................. (245,864) $20.91
Canceled ............................................................... (12,089) $46.97
Outstanding at December 31, 2010....................... 552,625 $23.30 3.8 $10,009
Vested at December 31, 2010 ............................... 552,625 $23.30 3.8 $10,009
No stock options have been granted since 2007. As of December 31, 2010, there was no unrecognized compensation
expense related to stock options, and all outstanding stock options were vested.
The aggregate intrinsic value in the table above at December 31, 2010 represents the total pretax intrinsic value (the
difference between our closing stock price at December 31, 2010 and the exercise price, multiplied by the number of
in-the-money options) that would have been received by the option holders, had all option holders exercised their
options on December 31, 2010. The intrinsic value changes based on the fair market value of our stock. Total
intrinsic value of options exercised during the years ended December 31, 2010 and 2009 was $3.7 million and $2.0
million, respectively.
The following table summarizes information concerning options outstanding and exercisable as of December 31,
2010:
Range of Exercise Prices
Number
Outstanding
and
Exercisable
Weighted Average
Remaining
Contractual Term
(Years)
Weighted
Average
Exercise
Price
$8.00 to $12.00 .......................................................................... 92,050 2.5 $10.65
$18.50 ........................................................................................ 169,325 3.5 $18.50
$25.47 to $27.25 ........................................................................ 198,557 4.2 $25.66
$31.40 to $50.85 ........................................................................ 92,693 5.1 $39.57
$8.00 to $50.85 .......................................................................... 552,625 3.8 $23.30