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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
Total share-based compensation expense, which includes stock option expense and restricted stock expense,
included in our consolidated statements of operations was as follows:
For the Year Ended December 31,
2013 2012 2011
Share-based compensation expense related to restricted shares $ 12,349 $ 14,566 $ 19,647
Share-based compensation expense related to employee stock
purchase plan 120 120 120
Total share-based compensation expense $ 12,469 $ 14,686 $ 19,767
Summary of Restricted Stock Activity
Shares Weighted Average Grant
Date Fair Value per Share
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
Granted 363,106 $42.51
Canceled (141,898) $42.84
Vested (860,646) $25.33
Outstanding at December 31, 2013 1,429,730 $44.19
During the years ended December 31, 2013, 2012 and 2011, we issued 363,106 shares, 1,052,466 shares and
367,668 shares of restricted stock, respectively, with an aggregate fair value of $15.4 million, $49.8 million and
$14.1 million, respectively. The fair market value of restricted shares that became vested during the year ended
December 31, 2013 was $21.8 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, 2013, there was $22.1 million of unrecognized compensation expense related to
restricted stock that is expected to be recognized over a weighted average period of 2.2 years.
Special 2009 Long-Term Performance-Based Restricted Stock Grant
In June 2009 and August 2010, the Compensation Committee of our Board of Directors approved the grant of a total
of 1,016,000 shares of long-term performance-based restricted stock to serve as an incentive to our senior
management team to achieve certain diluted earnings per share (“EPS”) targets in 2011 and 2012. A specified diluted
EPS target was achieved for fiscal 2011 and consequently, 50% of the then-outstanding restricted shares
(representing 453,500 shares of restricted stock) vested. A specified diluted EPS target was achieved for fiscal 2012
and consequently, the remaining restricted shares (representing 448,000 shares of restricted stock) vested.
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 an additional $3.9 million in 2011. In fourth