Lifetime Fitness 2012 Annual Report Download - page 75

LIFE TIME FITNESS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands, except share and per share data)
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for fully vested and outstanding shares whose sale is contractually or governmentally prohibited for a specified
period of time. In connection with approval of the 2004 Plan, our Board of Directors approved a resolution to cease
making additional grants under prior stock option and incentive plans. The restricted shares generally vest over
periods ranging from one to four years. As of December 31, 2012, we had granted a total of 1,929,665 options to
purchase common stock under the 2004 Plan, of which options to purchase 285,110 shares were outstanding, and we
had granted a total of 3,294,359 restricted shares under the 2004 Plan, of which 1,010,104 restricted shares were
unvested. In connection with approval of the 2011 Long-Term Incentive Plan (the 2011 Plan), as discussed below,
our Board of Directors approved a resolution to cease making additional grants under the 2004 Plan.
The 2011 Plan reserved 2,500,000 shares of our common stock for issuance. Under the 2011 Plan, the Compensation
Committee of our Board of Directors administers the 2011 Plan and has the power to select the persons to receive
awards and determine the type, size and terms of awards and establish objectives and conditions for earning awards.
The types of awards that may be granted under the 2011 Plan include incentive and non-qualified options to
purchase shares of common stock, stock appreciation rights, restricted shares, restricted share units, performance
awards and other types of stock-based awards. Eligible participants under the 2011 Plan included our officers,
employees, non-employee directors and consultants. Each award agreement specifies the number and type of award,
together with any other terms and conditions as determined by the Compensation Committee of the Board of
Directors or its designees. In connection with approval of the 2011 Plan, our Board of Directors approved a
resolution to cease making additional grants under the 2004 Plan. The restricted shares generally vest over periods
ranging from one to four years. During 2012, we granted 1,052,466 restricted shares under the 2011 Plan. The value
of the restricted shares was based upon the closing price of our stock on the dates of issue which ranged from $42.17
to $51.91 during 2012. As of December 31, 2012, we had granted a total of 1,083,105 restricted shares under the
2011 Plan, of which 1,059,065 restricted shares were unvested. As of December 31, 2012, 1,455,745 shares remain
available for grant under the 2011 Plan.
Total share-based compensation expense, which includes stock option expense and restricted stock expense,
included in our consolidated statements of operations for the years ended December 31, 2012, 2011 and 2010, was
as follows:
For the Year Ended December 31,
2012 2011 2010
Share-based compensation expense related to stock options $ — $ — $ 41
Share-based compensation expense related to restricted shares 14,566 19,647 12,694
Share-based compensation expense related to employee stock
purchase plan 120 120 100
Total share-based compensation expense $ 14,686 $ 19,767 $ 12,835