Lifetime Fitness 2011 Annual Report Download - page 77

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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)
71
In August 2011, our Board of Directors authorized the repurchase of up to $60.0 million of our outstanding common
stock from time to time through open market or privately negotiated transactions. The authorization to repurchase
shares terminates when the aggregate repurchase amount totals $60.0 million or at the close of business on August
17, 2013, whichever occurs first. The share repurchase program does not obligate us to repurchase any dollar
amount or number of shares of our common stock and the program may be extended, modified, suspended or
discontinued at any time. As of December 31, 2011, no shares have been repurchased under this program.
7. Operating Segments
Our operations are conducted mainly through our distinctive and large, multi-use sports and athletic, professional
fitness, family recreation and spa centers in a resort-like environment. We aggregate the activities of our centers and
other ancillary products and services into one reportable segment. Each of the centers has similar economic
characteristics, services, product offerings and customers, and in-center revenues are derived primarily from services
to our members. Each of the other ancillary products and services either directly or indirectly, through advertising or
branding, compliment the operations of the centers. Our chief operating decision maker uses EBITDA as the
primary measure of operating segment performance. Our chief operating decision maker is our Chief Executive
Officer.
The following table presents revenue for the years ended December 31, 2011, 2010 and 2009:
Membership dues
Enrollment fees
Personal training
Other in-center
Other
Total revenue
For the Year Ended December 31,
2011
$ 663,439
18,447
147,065
161,409
23,314
$ 1,013,674
2010
$ 603,231
24,426
128,570
137,856
18,761
$ 912,844
2009
$ 564,605
26,138
111,342
121,492
13,424
$ 837,001
8. Commitments and Contingencies
Lease Commitments — We lease certain property under operating leases, which require us to pay maintenance,
insurance and other expenses in addition to annual rentals. The minimum annual payments under all noncancelable
operating leases at December 31, 2011 are as follows:
2012
2013
2014
2015
2016
Thereafter
Total minimum annual payments under all noncancelable operating leases
$ 35,321
34,925
35,787
35,832
35,342
430,919
$ 608,126
Rent expense under operating leases was $42.8 million, $42.5 million and $40.2 million for the years ended
December 31, 2011, 2010 and 2009, respectively. Certain lease agreements call for escalating lease payments over
the term of the lease, which result in a deferred rent liability due to recognizing the expense on the straight-line basis
over the life of the lease.