Lifetime Fitness 2011 Annual Report Download - page 70

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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)
64
Promissory Note Payable to Lender
In December 2007, we borrowed $8.5 million, evidenced by a promissory note that matures in January 2015, bears
fixed interest at 5.78% and is secured by an interest in certain personal property. As of December 31, 2011, $6.4
million was outstanding on this note.
Aggregate annual future maturities of long-term debt (excluding capital leases) at December 31, 2011 are as follows:
2012
2013
2014
2015
2016
Thereafter
Total future maturities of long-term debt (excluding capital leases)
$ 5,672
11,991
17,906
9,646
501,909
122,557
$ 669,681
Capital Leases
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, 2011, the present value of the future minimum lease payments due under the lease amounted to
$5.9 million.
In March 2007, we entered into a ground lease which runs through October 2048 for our Loudoun County, Virginia
center. Pursuant to the terms of the lease which qualifies as a capital lease, we have an option to purchase the land
by giving notice during the fifth or eleventh lease year. At December 31, 2011, the present value of the future
minimum lease payments due under the lease amounted to $9.7 million.
We have financed our purchase of some of our equipment through a capital lease agreement with an agent and
lender, on behalf of itself and other lenders. This lease runs through April 2013 and our interest rate is 5.5%. As
security for the obligations owing under the capital lease agreements, we have granted a security interest in the
leased equipment to the lender or its assigns. At December 31, 2011, $1.1 million was outstanding under this lease.
We are a party to capital equipment leases with third parties which include monthly rental payments of
approximately $0.2 million as of December 31, 2011. Amortization recorded for these capital leased assets totaled
$1.0 million and $1.1 million for the years ended December 31, 2011 and 2010, respectively. The following is a
summary of property and equipment recorded under capital leases:
Land and buildings
Equipment
Gross property and equipment under capital lease
Less accumulated amortization
Net property and equipment under capital lease
December 31,
2011
$ 15,354
3,856
19,210
5,541
$ 13,669
2010
$ 15,484
3,887
19,371
4,869
$ 14,502