Lifetime Fitness 2010 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2010 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

41
Our primary financial covenants are:
Actual as of December 31,
Covenant Requirement 2010 2009
Revolving credit facility (1):
Total Consolidated Debt to Adjusted
EBITDAR ..................................................... Not more than 4.00 to 1.0 2.98 to 1.0 3.29 to 1.0
Senior Debt to Adjusted EBITDA ..................... Not more than 3.25 to 1.0 1.63 to 1.0 1.82 to 1.0
Fixed Charge Coverage Ratio ............................ Not less than 1.60 2.71 to 1.0 2.65 to 1.0
Sale-leaseback (2):
Tangible Net Worth ........................................... Not less than $200.0 million $787.9 million $688.4 million
(1) The formulas for these covenants are specifically defined in the revolving credit facility and include,
amount other things, an add back of share-based compensation expense to EBITDAR and EBITDA. See
footnote 4, “Long-Term Debt” for more information on our revolving credit facility.
(2) The formula for this covenant is specifically defined in our Senior Housing Properties Trust agreement. See
footnote 8, “Commitments and Contingencies” to our consolidated financial statements for more
information on this sale-leaseback transaction.
Contractual Obligations
The following is a summary of our contractual obligations as of December 31, 2010:
Payments due by period
Total 2011 2012 2013 2014 2015
After
2015
(In thousands)
Long-term debt obligations,
excluding capital lease
obligations (1) ......................
.
$ 594,897 $ 6,228 $429,836 $ 9,989 $15,785 $ 7,398 $125,661
Capital lease obligations ..........
.
17,647 1,037 1,180 617 10,220 526 4,067
Interest (2) ...............................
.
64,634 18,840 12,046 9,078 8,222 6,537 9,911
Operating lease obligations ......
.
746,263 40,421 40,367 39,762 40,623 40,678 544,412
Purchase obligations (3) ..........
.
29,342 23,483 2,531 2,484 667 175 2
Other long-term liabilities (4) ..
.
2,655 2,655 – – – – –
Total contractual obligations ...
.
$1,455,438 $92,664 $485,960 $61,930 $75,517 $55,314 $684,053
(1) See footnote 4, “Long-Term Debt” to our consolidated financial statements for more information.
(2) Interest expense obligations were calculated holding floating rate debt balances and interest rates constant at
December 31, 2010 rates.
(3) Purchase obligations consist primarily of our contracts with construction subcontractors for the completion of
the four large format centers under construction as of December 31, 2010, three of which we plan to open in
2011, as well as contracts for the purchase of land.
(4) In addition to the other long-term liabilities presented in the table above, approximately $1.2 million of
unrecognized tax benefits, including interest and penalties, have been recorded as liabilities in accordance with
applicable accounting guidance, and we are uncertain as to if or when such amounts may be settled.