Lifetime Fitness 2011 Annual Report Download - page 47

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41
Our primary financial covenants as of December 31, 2010 were:
Covenant
Revolving credit facility (1):
Total Consolidated Debt to Adjusted EBITDAR
Senior Debt to Adjusted EBITDA
Fixed Charge Coverage Ratio
Sale-leaseback (2):
Tangible Net Worth
Requirement
Not more than 4.00 to 1.00
Not more than 3.25 to 1.00
Not less than 1.60 to 1.00
Not less than $200.0 million
Actual as of
December 31, 2010
2.98 to 1.00
1.63 to 1.00
2.71 to 1.00
$787.9 million
(1) The formulas for these covenants are specifically defined in the Second Amended and Restated Credit
Agreement and include, among 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, 2011:
Long-term debt obligations,
excluding capital lease
obligations (1)
Capital lease obligations
Interest (2)
Operating lease obligations
Purchase obligations (3)
Other obligations (4)
Total contractual obligations
Payments due by period
Total
(In thousands)
$ 669,681
16,617
111,980
608,126
70,993
5,192
$1,482,589
2012
$ 5,672
1,177
24,328
35,321
53,216
4,297
$ 124,011
2013
$ 11,991
614
24,211
34,925
10,658
320
$ 82,719
2014
$ 17,906
10,217
23,233
35,787
2,986
277
$ 90,406
2015
$ 9,647
522
21,448
35,832
1,340
298
$ 69,087
2016
$501,909
585
15,243
35,342
1,368
—
$554,447
After
2016
$ 122,556
3,502
3,517
430,919
1,425
—
$ 561,919
(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, 2011 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, 2011, three of which we plan to
open in 2012, as well as contracts for the purchase of land. All construction subcontracts contain clauses
that allow us to terminate any project. Therefore, we have the ability to cancel any project and, in the event
of such a cancellation, we will only be obligated to pay for work actually performed up to the date of
cancellation.
(4) Other obligations consists of deferred compensation obligations and payments owed in connection with
certain acquisitions. In addition to the other long-term liabilities presented in the table above,
approximately $0.9 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.