Lifetime Fitness 2007 Annual Report Download - page 40

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Our total capital expenditures were as follows:
For the Year Ended December 31,
2007 2006 2005
(In thousands)
Purchases of property and equipment............................................ $ 415,822 $ 261,767 $ 190,355
Non-cash property and equipment purchases financed through
capital lease obligations.............................................................. 1,445 — 96
Non-cash property purchases financed through notes payable
obligation.................................................................................... 95 1,620 —
Non-cash property purchases in accounts payable ........................ 10,218 22,594 8,773
Non-cash share-based compensation capitalized to projects
under development ..................................................................... 744 1,055 —
Total capital expenditures.............................................................. $ 428,324 $ 287,036 $ 199,224
The following schedule reflects capital expenditures by type of expenditure:
For the Year Ended December 31,
2007 2006 2005
(In thousands)
New center building and construction on clubs opened
through the current year............................................................. $159,938 $141,104 $107,813
New center land, building and construction on clubs to be
opened in the next year .............................................................. 149,662 102,949 67,204
New center land, building and construction on clubs to be
opened two years out ................................................................. 20,297 9,866 —
Acquisitions, updating existing centers and corporate
infrastructure .............................................................................. (1) 98,427 33,117 24,207
Total capital expenditures.............................................................. $428,324 $287,036 $199,224
(1) In 2007, we incurred approximately $98.4 million of capital expenditures related to acquisitions, updating existing
centers and corporate infrastructure. This was comprised of approximately $22.2 for the regular maintenance of
our existing center base, $28.0 million for the remodels of the seven centers leased in July 2006, $23.4 million for
the construction of our corporate office building which we moved into in December 2007, and $24.8 million for
acquisitions and general corporate purposes.
At December 31, 2007, we had purchased the real property for nine of the new centers that we plan to open in 2008,
we had leased the real property for two of the new centers we plan to open in 2008 and we had entered into
agreements to purchase real property for the development of eight of the eleven new centers that we plan to open in
2009.
We expect our capital expenditures to be approximately $440 to $460 million in 2008, of which we expect
approximately $25 to $30 million to be one-time in nature for the remaining remodel of the seven centers leased in
July 2006 and the two acquired and leased centers we took over in 2007. In addition, we expect to incur
approximately $385 to $395 million for new center construction and approximately $30 to $35 million for the
updating of existing centers and corporate infrastructure. We plan to fund these capital expenditures with cash from
operations, our revolving line of credit and additional long term financing.
Financing Activities
In May 2001, we financed one of our Minnesota centers pursuant to the terms of a sale-leaseback transaction that
qualified as a capital lease. Pursuant to the terms of the lease, we agreed to lease the center for a period of 20 years.
At December 31, 2007, the present value of the future minimum lease payments due under the lease amounted to
$6.6 million.