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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)
72
Summary of Stock Option Activity
Shares
Weighted
Average
Exercise
Price
Weighted Average
Remaining
Contractual Term
(Years)
Aggregate
Intrinsic
Value
Outstanding at December 31, 2009 810,578 $22.93 4.8 $3,669
Exercised (245,864) $20.91
Canceled (12,089) $46.97
Outstanding at December 31, 2010 552,625 $23.30 3.8 $10,009
Exercised (142,384) $22.21
Canceled (3,041) $31.40
Outstanding at December 31, 2011 407,200 $23.62 2.9 $9,429
Exercised (115,690) $20.25
Canceled — $—
Outstanding at December 31, 2012 291,510 $24.96 2.0 $7,073
Vested at December 31, 2012 291,510 $24.96 2.0 $7,073
No stock options have been granted since 2007. As of December 31, 2012, there was no unrecognized compensation
expense related to stock options, and all outstanding stock options were vested.
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, 2012, 2011 and 2010 was $3.3 million, $2.8 million
and $3.7 million, respectively.
Our net cash proceeds from the exercise of stock options were $2.3 million, $3.2 million and $5.1 million for the
years ended December 31, 2012, 2011 and 2010, respectively. The excess income tax benefit realized from stock
option exercises was $8.5 million, $3.5 million and $2.5 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 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, 2012.
Compensation expense under the ESPP, which was $0.1 million for each of 2012, 2011 and 2010, is based on the
discount of 10% at the end of the purchase period. In 2012, $1.2 million was withheld from employees for the
purpose of purchasing shares under the ESPP. There were 1,287,820 shares of common stock available for purchase
under the ESPP as of December 31, 2012.
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 2012, we repurchased 26,850 shares for approximately $1.3 million. As of