Lifetime Fitness 2010 Annual Report Download - page 73

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
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Our net cash proceeds from the exercise of stock options were $5.1 million and $2.5 million for the years ended
December 31, 2010 and 2009, respectively. The actual income tax benefit realized from stock option exercises was
$2.5 million and $0.5 million, respectively, for those same periods. In accordance with the related accounting
guidance, the excess tax benefits from the exercise of stock options are presented as cash flows from financing
activities.
Employee Stock Purchase Plan and Related Share Repurchase Plan
Our employee stock purchase plan (“ESPP”) provides for the sale of up to 1,500,000 share of our common stock to
our employees at discounted purchase prices. The cost per share under this plan is currently 90% of the fair market
value of our common stock on the last day of the purchase period, as defined. The first purchase period during 2010
under the ESPP began January 1, 2010 and ended June 30, 2010. The second purchase period began July 1, 2010
and ended December 31, 2010. Compensation expense under the ESPP, which was $0.1 million for 2010, is based
on the discount of 10% at the end of the purchase period. $0.9 million was withheld from employees for the purpose of
purchasing shares under the ESPP. There were 1,342,660 shares of common stock available for purchase under the ESPP
as of December 31, 2010.
In June 2006, our Board of Directors authorized the repurchase of up to 500,000 shares of our common stock from time to
time in the open market or otherwise for the primary purpose of offsetting the dilutive effect of shares pursuant to our
ESPP. During 2010, we repurchased 32,728 shares for approximately $1.0 million. As of December 31, 2010, there were
342,660 remaining shares authorized to be repurchased for this purpose. The shares repurchased to date have been
purchased in the open market and, upon repurchase, became authorized, but unissued shares of our common stock.
7. Operating Segments
Our operations are conducted mainly through our distinctive and large, multi-use sports and athletic, professional
fitness, family recreation and spa centers in a resort-like environment. We aggregate the activities of our centers and
other ancillary products and services into one reportable segment as none of the centers or other ancillary products
or services meet the quantitative thresholds for separate disclosure under the applicable accounting. Each of the
centers has similar economic characteristics, service and product offerings and customers. Each of the other
ancillary products and services either directly or indirectly, through advertising or branding, compliment the
operations of the centers. Our chief operating decision maker uses EBITDA as the primary measure of operating
segment performance.
The following table presents revenue for the years ended December 31, 2010, 2009 and 2008:
For the Year Ended December 31,
2010 2009 2008
Membership dues .......................................................................
.
$603,231 $564,605 $508,927
Enrollment fees ..........................................................................
.
24,426 26,138 26,570
Personal training ........................................................................
.
128,570 111,342 106,802
Other in-center ...........................................................................
.
137,856 121,492 111,396
Other ..........................................................................................
.
18,761 13,424 15,926
Total revenue .............................................................................
.
$912,844 $837,001 $769,621