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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
Summary of Restricted Stock Activity
Shares Weighted Average Grant
Date Fair Value
Outstanding at December 31, 2009 1,966,672 $19.12
Granted 419,156 $31.09
Canceled (150,402) $19.12
Vested (317,553) $22.43
Outstanding at December 31, 2010 1,917,873 $21.19
Granted 367,668 $38.36
Canceled (6,744) $26.62
Vested (376,714) $22.32
Outstanding at December 31, 2011 1,902,083 $24.27
Granted 1,052,466 $47.28
Canceled (30,289) $33.51
Vested (855,092) $22.54
Outstanding at December 31, 2012 2,069,168 $36.55
During the years ended December 31, 2012, 2011 and 2010, we issued 1,052,466 shares, 367,668 shares and
419,156 shares of restricted stock, respectively, with an aggregate fair value of $49.8 million, $14.1 million and
$13.0 million, respectively. The fair market value of restricted shares that became vested during the year ended
December 31, 2012 was $19.3 million. The total value of each restricted stock grant, based on the fair market value
of the stock on the date of grant, is amortized to compensation expense on a straight-line basis over the related
vesting period. As of December 31, 2012, there was $27.7 million of unrecognized compensation expense related to
restricted stock that is expected to be recognized over a weighted average period of 2.1 years.
Special 2009 Restricted Stock Grant
In June 2009, the Compensation Committee of our Board of Directors approved the grant of 996,000 shares of long-
term performance-based restricted stock to serve as an incentive to our senior management team to achieve certain
diluted EPS targets in 2011 and 2012. In August 2010, an additional 20,000 shares of long-term performance-based
restricted stock were granted to a new member of senior management using the same diluted EPS targets and vesting
schedule.
In fourth quarter 2010, we determined that achieving the 2011 diluted EPS targets required for vesting of 50% of the
restricted shares was probable. As a result, we recognized a cumulative, non-cash performance share-based
compensation expense of $5.6 million in fourth quarter 2010 and $3.9 million in 2011. A specified EPS target was
achieved for fiscal 2011 and consequently 50% of the then-outstanding restricted shares (representing 453,500
shares of restricted stock) vested.
In fourth quarter 2011, we determined that achieving the 2012 diluted EPS targets required for vesting of the final
50% of the restricted shares was probable. As a result, we recognized a cumulative, non-cash performance share-
based compensation expense of $6.8 million in fourth quarter 2011 and $2.6 million in 2012. A specified EPS target
was achieved for fiscal 2012 and consequently the remaining restricted shares (representing 448,000 shares of
restricted stock) will vest upon publication of our audited financial statements for fiscal 2012.
A total of $18.8 million (pretax) was recognized as compensation expense under this grant. In accordance with the
related accounting guidance, all of the vested restricted shares were included in our total diluted share count at
December 31, 2011 and December 31, 2012, respectively, as the performance condition was met.