Lifetime Fitness 2011 Annual Report Download - page 76

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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)
70
The aggregate intrinsic values in the table above represent the total pretax intrinsic value (the difference between our
closing stock price at each year end and the exercise price, multiplied by the number of in-the-money options) that
would have been received by the option holders, had all option holders exercised their options on December 31 of
each year presented above. The intrinsic value changes based on the fair market value of our stock. Total intrinsic
value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $2.8 million, $3.7 million
and $2.0 million, respectively.
The following table summarizes information concerning options outstanding and exercisable as of December 31,
2011:
Range of Exercise Prices
$8.00 to $12.00
$18.50
$25.47 to $27.25
$31.40 to $50.85
$8.00 to $50.85
Number
Outstanding
and
Exercisable
63,900
135,775
141,925
65,600
407,200
Weighted
Average
Remaining
Contractual
Term
(Years)
1.7
2.5
3.2
4.2
2.9
Weighted
Average
Exercise
Price
$10.94
$18.50
$25.68
$42.13
$23.62
Our net cash proceeds from the exercise of stock options were $3.2 million, $5.1 million and $2.5 million for the
years ended December 31, 2011, 2010 and 2009, respectively. The excess income tax benefit realized from stock
option exercises was $3.5 million, $2.5 million and $0.5 million, respectively, for those same periods. In accordance
with the related accounting guidance, this tax benefit is presented as a financing cash inflow with a corresponding
offset included in cash flows from operating activities.
Employee Stock Purchase Plan
Our employee stock purchase plan (“ESPP”) provides for the sale of up to 1,500,000 shares of our common stock to
our employees at discounted purchase prices. The cost per share under this plan is 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 2011 under
the ESPP began January 1, 2011 and ended June 30, 2011. The second purchase period began July 1, 2011 and
ended December 31, 2011. Compensation expense under the ESPP, which was $0.1 million for each of 2011, 2010
and 2009, is based on the discount of 10% at the end of the purchase period. In 2011, $1.1 million was withheld
from employees for the purpose of purchasing shares under the ESPP. There were 1,314,670 shares of common
stock available for purchase under the ESPP as of December 31, 2011.
Share Repurchase Plans
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 2011, we repurchased 27,990 shares for approximately $1.1 million. As of
December 31, 2011 there were 314,670 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.