Lifetime Fitness 2013 Annual Report Download - page 71

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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)
65
subsidiary’s obligations under the leases that will fund any reimbursement obligations. As of December 31, 2013,
$31.8 million remained outstanding on the notes.
Promissory Note Payable to Lender
In December 2007, we borrowed $8.5 million, evidenced by a promissory note that matures in January 2015, bears
fixed interest at 5.78% and is secured by an interest in certain personal property. In April 2013, we prepaid this
promissory note payable using our revolving credit facility.
Aggregate annual future maturities of long-term debt (excluding capital leases) at December 31, 2013 are as follows:
2014 $ 14,238
2015 14,836
2016 80,779
2017 101,174
2018 522,713
Thereafter 99,893
Total future maturities of long-term debt (excluding capital leases) $ 833,633
Capital Leases
In May 2001, we financed one of our Minnesota centers pursuant to the terms of a sale-leaseback transaction that
qualified as a capital lease. Pursuant to the terms of the lease, we agreed to lease the center for a period of 20 years.
At December 31, 2013, the present value of the future minimum lease payments due under the lease amounted to
$5.1 million.
In March 2007, we entered into a ground lease which runs through October 2048 for our Loudoun County, Virginia
center. Pursuant to the terms of the lease which qualifies as a capital lease, we have an option to purchase the land
by giving notice during the fifth or tenth lease year. We intend to give notice and purchase the land during 2014;
therefore the entire amount of the capital lease is in current maturities of long-term debt. At December 31, 2013, the
present value of the future minimum lease payments due under the lease amounted to $9.7 million.
We have financed the purchase of some equipment through a capital lease agreement with an agent and lender, on
behalf of itself and other lenders. This lease ran through April 2013 at an interest rate of 5.5%. As security for the
obligations owing under the capital lease agreements, we granted a security interest in the leased equipment to the
lender or its assigns. In April 2013, we made the final payment on this obligation. Concurrent with the payoff, the
security interest in the leased equipment was released.
We are a party to capital equipment leases with third parties which include monthly rental payments of less than $0.1
million as of December 31, 2013. Amortization recorded for these capital leased assets totaled $0.4 million and $1.2
million for the years ended December 31, 2013 and 2012, respectively. The following is a summary of property and
equipment recorded under capital leases: