Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

November 17, 2021

Documents

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 ______________________________________________________
FORM 10-Q
 ____________________________________________________
(Mark One)
 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                 to 
Commission File Number: 001-40887
______________________________________________
Life Time Group Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware   47-3481985
(State or other jurisdiction of
incorporation or organization)		   (I.R.S. Employer
Identification No.)
2902 Corporate Place
Chanhassen, Minnesota 55317
(952) 947-0000
(Address, including zip code Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common stock, par value $0.01 per share LTH The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated Filer ☐ Accelerated filer ☐ Non-accelerated filer ☒
Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No ☒ 
As of November 15, 2021, the Registrant had 193,059,950 shares of common stock outstanding, par value $0.01 per share.


Table of Contents
 
2


PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
September 30,
2021		 December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents $ 44,827 $ 33,195
Accounts receivable 8,326 4,805
Center operating supplies and inventories 40,113 36,276
Prepaid expenses and other current assets 35,214 87,231
Income tax receivable 3,466 4,192
Total current assets 131,946 165,699
Property and equipment, net 2,699,104 2,692,712
Goodwill 1,233,176 1,233,176
Operating lease right-of-use assets 1,864,246 1,708,597
Intangible assets, net 173,604 164,419
Other assets 55,425 52,955
Total assets $ 6,157,501 $ 6,017,558
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 71,962 $ 54,104
Construction accounts payable 51,946 39,936
Deferred revenue 28,190 42,274
Accrued expenses and other current liabilities 183,703 117,675
Current maturities of debt 31,841 139,266
Current maturities of operating lease liabilities 44,137 49,877
Total current liabilities 411,779 443,132
Long-term debt, net of current portion 2,331,500 2,133,330
Operating lease liabilities, net of current portion 1,902,784 1,738,393
Deferred income taxes 131,655 195,122
Other liabilities 25,027 26,168
Total liabilities 4,802,745 4,536,145
Commitments and contingencies (Note 10)
Mezzanine equity:
Series A convertible participating preferred stock, $0.01 par value per share; 12,000 shares authorized; 5,930 and 0 shares issued and outstanding, respectively
 153,620 —
Stockholders’ equity:
Common stock, $0.01 par value per share; 200,000 and 170,000 shares authorized, respectively; 145,196 shares issued and outstanding
 1,452 1,452
Additional paid-in capital 1,548,904 1,569,905
Stockholder note receivable — (15,000)
Retained deficit (346,313) (71,714)
Accumulated other comprehensive loss (2,907) (3,230)
Total stockholders’ equity 1,201,136 1,481,413
Total liabilities, mezzanine equity and stockholders’ equity $ 6,157,501 $ 6,017,558
See notes to unaudited condensed consolidated financial statements.
3

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Revenue:
Center revenue $ 372,000 $ 228,349 $ 933,690 $ 704,919
Other revenue 13,040 2,681 23,835 14,991
Total revenue 385,040 231,030 957,525 719,910
Operating expenses:
Center operations 231,996 165,572 625,322 515,350
Rent 52,513 47,539 154,552 138,470
General, administrative, and marketing 45,304 32,204 126,896 119,665
Depreciation and amortization 57,977 61,359 177,005 188,483
Other operating 14,796 15,152 30,660 37,412
Total operating expenses 402,586 321,826 1,114,435 999,380
Loss from operations (17,546) (90,796) (156,910) (279,470)
Other (expense) income:
Interest expense, net of interest income (39,849) (30,967) (176,144) (95,724)
Equity in earnings of affiliate (28) 37 (412) (206)
Total other expense (39,877) (30,930) (176,556) (95,930)
Loss before income taxes (57,423) (121,726) (333,466) (375,400)
Benefit from income taxes (11,981) (28,079) (58,867) (99,096)
Net loss $ (45,442) $ (93,647) $ (274,599) $ (276,304)
Loss per common share—basic and diluted $ (0.36) $ (0.64) $ (2.00) $ (1.90)
Weighted-average common shares outstanding—basic and diluted 145,196 145,196 145,196 145,118

See notes to unaudited condensed consolidated financial statements.

4

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)

Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Net loss $ (45,442) $ (93,647) $ (274,599) $ (276,304)
Foreign currency translation adjustments, net of tax of $0
 (2,404) 2,436 323 (3,413)
Comprehensive loss $ (47,846) $ (91,211) $ (274,276) $ (279,717)

See notes to unaudited condensed consolidated financial statements.


5

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)

Common Stock Additional Paid-In
Capital		 Stockholder Note
Receivable		 Retained Deficit Accumulated Other Comprehensive Loss Total
Equity
Shares Amount
Balance at July 1, 2021 145,196  $ 1,452  $ 1,564,591  $ (15,000) $ (300,871) $ (503) $ 1,249,669 
Net loss —  —  —  —  (45,442) —  (45,442)
Other comprehensive loss —  —  —  —  —  (2,404) (2,404)
Share-based compensation —  —  1,794  —  —  —  1,794 
Cancellation of stockholder note receivable —  —  (11,355) 15,000  —  —  3,645 
Dividends on preferred stock —  —  (6,126) —  —  —  (6,126)
Balance at September 30, 2021 145,196  $ 1,452  $ 1,548,904  $ —  $ (346,313) $ (2,907) $ 1,201,136 

Common Stock Additional Paid-In
Capital		 Stockholder Note
Receivable		 Retained Deficit Accumulated Other Comprehensive Loss Total
Equity
Shares Amount
Balance at January 1, 2021 145,196  $ 1,452  $ 1,569,905  $ (15,000) $ (71,714) $ (3,230) $ 1,481,413 
Net loss —  —  —  —  (274,599) —  (274,599)
Other comprehensive income —  —  —  —  —  323  323 
Share-based compensation —  —  2,924  —  —  —  2,924 
Settlement of accrued compensation liabilities through the issuance of share-based compensation awards —  —  3,844  —  —  —  3,844 
Cancellation of stockholder note receivable —  —  (11,355) 15,000  —  —  3,645 
Dividends on preferred stock —  —  (16,414) —  —  —  (16,414)
Balance at September 30, 2021 145,196  $ 1,452  $ 1,548,904  $ —  $ (346,313) $ (2,907) $ 1,201,136 

Common Stock Additional Paid-In
Capital		 Stockholder Note
Receivable		 Retained Earnings Accumulated Other Comprehensive Loss Total
Equity
Shares Amount
Balance at July 1, 2020 145,196  $ 1,452  $ 1,569,905  $ (15,000) $ 105,821  $ (10,501) $ 1,651,677 
Net loss —  —  —  —  (93,647) —  (93,647)
Other comprehensive income —  —  —  —  —  2,436  2,436 
Balance at September 30, 2020 145,196  $ 1,452  $ 1,569,905  $ (15,000) $ 12,174  $ (8,065) $ 1,560,466 

Common Stock Additional Paid-In
Capital		 Stockholder Note
Receivable		 Retained Earnings Accumulated Other Comprehensive Loss Total
Equity
Shares Amount
Balance at January 1, 2020 141,596  $ 1,416  $ 1,479,941  $ (15,000) $ 288,478  $ (4,652) $ 1,750,183 
Net loss —  —  —  —  (276,304) —  (276,304)
Other comprehensive income —  —  —  —  —  (3,413) (3,413)
Common stock issuance 3,600  36  89,964  —  —  —  90,000 
Balance at September 30, 2020 145,196  $ 1,452  $ 1,569,905  $ (15,000) $ 12,174  $ (8,065) $ 1,560,466 

See notes to unaudited condensed consolidated financial statements.
6

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Nine Months Ended
September 30,
2021 2020
Cash flows from operating activities:
Net loss $ (274,599) $ (276,304)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 177,005 188,483
Deferred income taxes (63,467) (69,229)
Non-cash rent expense 11,546 34,489
Impairment charges associated with long-lived assets 2,455 16,903
Loss (gain) on disposal of property and equipment, net 3,515 (2,894)
Loss on debt extinguishment 40,993 —
Write-off of discounts and debt issuance costs 18,325 —
Amortization of discounts and debt issuance costs 7,761 8,959
Share-based compensation 6,959 —
Changes in operating assets and liabilities 57,614 45,096
Other (3,429) (1,668)
Net cash used in operating activities (15,322) (56,165)
Cash flows from investing activities:
Capital expenditures (201,741) (213,876)
Acquisitions, net of cash acquired (9,139) —
Proceeds from sale-leaseback transactions 73,981 122,883
Proceeds from the sale of land held for sale — 22,971
Other (1,291) 5,360
Net cash used in investing activities (138,190) (62,662)
Cash flows from financing activities:
Proceeds from borrowings 1,907,577 116,583
Repayments of debt (1,602,164) (27,104)
Proceeds from senior secured credit facility 134,000 506,000
Repayments of senior secured credit facility (228,000) (587,902)
Deposit associated with a pending sale-leaseback transaction — 15,000
Repayments of finance lease liabilities (1,133) (1,034)
Increase in debt discounts and issuance costs (45,151) (425)
Proceeds from the issuance of common stock — 90,000
Net cash provided by financing activities 165,129 111,118
Effect of exchange rates on cash and cash equivalents 15  (185)
Increase (decrease) in cash and cash equivalents 11,632 (7,894)
Cash and cash equivalents—beginning of period 33,195 47,951
Cash and cash equivalents—end of period $ 44,827 $ 40,057
See notes to unaudited condensed consolidated financial statements.

7

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)

1. Nature of Business and Basis of Consolidation and Presentation
Nature of Business
Life Time Group Holdings, Inc. (collectively with its direct and indirect subsidiaries, “Life Time,” “we,” “our,” or the “Company”) is a holding company incorporated in the state of Delaware. As a holding company, Life Time Group Holdings, Inc. does not have its own independent assets or business operations, and all of our assets and business operations are through Life Time, Inc. and its direct and indirect subsidiaries. Life Time Group Holdings, Inc. changed its name from LTF Holdings, Inc. effective on June 21, 2021. We are primarily dedicated to providing premium health, fitness and wellness experiences at our athletic resort destinations and via our comprehensive digital platform and portfolio of iconic athletic events – all with the objective of inspiring healthier, happier lives. We design, build and operate our athletic resort destinations that are distinctive and large, multi-use sports and athletic, professional fitness, family recreation and spa centers in a resort-like environment. As of September 30, 2021, we operated 155 centers in 29 states and one Canadian province.
COVID-19 Impact
On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic and recommended containment and mitigation measures worldwide. On March 13, 2020, the United States declared a National Public Health Emergency with respect to COVID-19. On March 16, 2020, we closed all of our centers based on orders and advisories from federal, state and local governmental authorities regarding COVID-19, during which time we did not draft or collect monthly access membership dues or recurring product charges from our members. We re-opened our first center on May 8, 2020 and continued to re-open our centers as state and local governmental authorities permitted.
All of our centers are currently open and we are collecting monthly access membership dues and recurring product charges from active members associated with all of our centers. Whether we will need to close any of our centers, and the duration of any such future center closures that may occur, remains uncertain and is dependent on future developments that cannot be accurately predicted at this time.
Initial Public Offering
On October 12, 2021, Life Time Group Holdings, Inc. consummated its initial public offering (“IPO”) of 39.0 million shares of its common stock at a public offering price of $18.00 per share, resulting in total gross proceeds of $702.0 million, which was reduced by underwriting discounts and other offering expenses of $22.9 million, for net proceeds of $679.1 million. The shares of the Company's common stock began trading on The New York Stock Exchange under the symbol “LTH” on October 7, 2021. A registration statement on Form S-1 relating to the offering of these securities was declared effective by the Securities and Exchange Commission (the “SEC”) on October 6, 2021.
Upon consummation of the IPO, the 5.4 million shares of Series A Preferred Stock (as defined in Note 2, Summary of Significant Accounting Policies) then outstanding automatically converted into approximately 6.7 million shares of common stock of Life Time Group Holdings, Inc. Also upon consummation of the IPO, the 0.5 million shares of restricted Series A Preferred Stock then outstanding converted into approximately 0.6 million restricted shares of common stock of Life Time Group Holdings, Inc. For more information regarding the Series A Preferred Stock, see Note 8, Mezzanine Equity.
Additionally, on October 12, 2021, in connection with the consummation of the IPO, we adopted an amended and restated Certificate of Incorporation under which the Company’s authorized share total was increased to 500.0 million shares of common stock, par value $0.01 per share, and 10.0 million shares of preferred stock, par value $0.01 per share, and the Series A Preferred Stock became no longer authorized.
On October 13, 2021, we used a portion of the $679.1 million of net proceeds we received in connection with the IPO to pay down $575.7 million (including a $5.7 million prepayment penalty) of our Term Loan Facility (as defined in Note 6, Debt). For more information regarding our Term Loan Facility, see Note 6, Debt.
On November 1, 2021, Life Time Group Holdings, Inc. consummated the sale of nearly 1.6 million additional shares of its common stock at the IPO price of $18.00 per share pursuant to the partial exercise by the underwriters of their over-allotment option, resulting in total gross proceeds of approximately $28.4 million, which was reduced by underwriting discounts and other offering expenses of $1.3 million, for net proceeds of $27.1 million. We intend to use these net proceeds, as well as the remaining portion of the net proceeds we received in connection with the IPO after the partial pay down of our Term Loan Facility, for general corporate purposes.
As of September 30, 2021, total unrecognized share-based compensation expense associated with stock options, restricted Series A Preferred Stock and restricted stock units was $362.5 million. As a result of the consummation of the IPO, a significant portion of this total unrecognized share-based compensation expense amount will be recognized during the fourth quarter of 2021. For more information regarding share-based compensation expense, see Note 8, Mezzanine Equity and Note 9, Stockholders' Equity.
8

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
With the exception of Note 11, Subsequent Events, the remaining notes to unaudited condensed consolidated financial statements contained herein provide applicable disclosures of events that have occurred and circumstances that existed up through and including September 30, 2021. Accordingly, these notes have not been updated to disclose the impact, if any, of any subsequent events, including the impact associated with the IPO.
2. Summary of Significant Accounting Policies
Basis of Presentation
The unaudited condensed consolidated financial statements include the accounts of Life Time Group Holdings, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In recording transactions and balances resulting from business operations, we use estimates based on the best information available. We revise the recorded estimates when better information is available, facts change or we can determine actual amounts. These revisions can affect our consolidated operating results. All adjustments (consisting of normal recurring adjustments) considered necessary to fairly present our consolidated financial position, results of operations and cash flows for the periods have been included.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. A summary of our significant accounting policies is included in Note 2 to our annual consolidated financial statements.
Recently Adopted Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 also amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. We adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have an impact on our condensed consolidated financial statements.
Segment Reporting
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is our Founder, Chairman and Chief Executive Officer (“CEO”). Our CODM assesses financial performance and allocates resources based on the consolidated financial results at the total entity level. Accordingly, we have determined that we have one operating segment and one reportable segment.
Fair Value Measurements
The accounting guidance establishes a framework for measuring fair value and expanded disclosures about fair value measurements. The guidance applies to all assets and liabilities that are measured and reported on a fair value basis. This enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The guidance requires that each asset and liability carried at fair value be classified into one of the following categories:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
The carrying amounts related to cash and cash equivalents, accounts receivable, income tax receivable, accounts payable and accrued liabilities approximate fair value.
9

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
Fair Value Measurements on a Recurring Basis. We had no remeasurements of such assets or liabilities to fair value during either of the three or nine months ended September 30, 2021 and 2020.
Financial Assets and Liabilities. At both September 30, 2021 and December 31, 2020, the gross carrying amount of our outstanding debt approximates fair value. The fair value of our debt is based on the amount of future cash flows discounted using rates we would currently be able to realize for similar instruments of comparable maturity. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. For more information regarding our debt, see Note 6, Debt.
Fair Value Measurements on a Nonrecurring Basis. Assets and liabilities that are measured at fair value on a nonrecurring basis primarily relate to our long-lived assets, goodwill, and intangible assets, which are remeasured when the derived fair value is below carrying value on our condensed consolidated balance sheets. For these assets, we do not periodically adjust carrying value to fair value except in the event of impairment. If we determine that impairment has occurred, the carrying value of the asset would be reduced to fair value and the difference would be recorded as a loss within operating income in our condensed consolidated statements of operations.
During both the three and nine months ended September 30, 2021 and 2020, we determined that certain projects were no longer deemed viable for construction, and that the previously capitalized site development costs associated with these projects were impaired. Accordingly, as it relates to these long-lived assets, we recognized impairment charges of $0.7 million and $9.9 million for the three months ended September 30, 2021 and 2020, respectively, and we recognized impairment charges of $2.5 million and $16.9 million for the nine months ended September 30, 2021 and 2020, respectively. Fair value remeasurements are based on significant unobservable inputs (Level 3). Fixed asset fair values are primarily derived using a discounted cash flow (“DCF”) model to estimate the present value of net cash flows that the asset or asset group was expected to generate. The key inputs to the DCF model generally include our forecasts of net cash generated from revenue, expenses and other significant cash outflows, such as capital expenditures, as well as an appropriate discount rate.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
September 30,
2021		 December 31,
2020
Property held for sale $ —  $ 49,686 
Construction contract receivables 5,645  12,398 
Deferred membership origination costs 4,177  7,212 
Prepaid expenses 25,392  17,935 
Prepaid expenses and other current assets $ 35,214  $ 87,231 
Deferred IPO Costs. Prepaid expenses and other current assets at September 30, 2021 include deferred IPO costs totaling approximately $2.2 million. These deferred costs primarily consist of legal, accounting, and other fees relating to the Company’s IPO. With the consummation of the IPO in October 2021, these deferred offering costs will be netted against the related IPO proceeds and recognized during the fourth quarter as a reduction in Additional paid-in capital on our consolidated balance sheet.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
September 30,
2021		 December 31,
2020
Real estate taxes $ 33,814 $ 31,015
Accrued interest 41,673 15,010
Payroll liabilities 29,146 17,136
Utilities 7,774 5,379
Self-insurance accruals 24,963 22,444
Corporate accruals 24,711 24,123
Dividends payable 16,414 —
Current maturities of finance lease liabilities 1,383 1,171
Other 3,825 1,397
Accrued expenses and other current liabilities $ 183,703 $ 117,675
10

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
Loss per Share
Basic loss per share is computed by dividing loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. The numerator in the diluted loss per share calculation is derived by adding the effect of assumed common stock conversions to loss available to common stockholders. The denominator in the diluted loss per share calculation is derived by adding shares of common stock deemed to be potentially dilutive to the weighted average number of shares of common stock outstanding during the period. Potentially dilutive securities that are subject to performance or market conditions are considered contingently issuable shares for purposes of calculating diluted loss per share. Accordingly, these contingently issuable shares are excluded from the computation of diluted loss per share until the performance or market conditions have been met. Other potentially dilutive securities that do not involve contingently issuable shares are also excluded from the computation of diluted loss per share if their effect is antidilutive.
For both the three and nine months ended September 30, 2021 and 2020, our potentially dilutive securities include stock options, all of which are subject to performance conditions that were not met as of the end of each respective period. Accordingly, the contingently issuable shares associated with our stock options are excluded from the computation of diluted loss per share for both the three and nine months ended September 30, 2021 and 2020. For both the three and nine months ended September 30, 2021, our potentially dilutive securities also include unvested restricted stock units, outstanding shares of Series A convertible participating preferred stock (“Series A Preferred Stock”) and unvested restricted Series A Preferred Stock. Due to the net loss that we recognized during both the three and nine months ended September 30, 2021, the potentially dilutive shares of common stock associated with our unvested restricted stock units, outstanding shares of Series A Preferred Stock and unvested restricted Series A Preferred Stock were determined to be antidilutive and, therefore, are excluded from the computation of diluted loss per share for both the three and nine months ended September 30, 2021.
The following table sets forth the calculation of basic and diluted loss per share for both the three and nine months ended September 30, 2021 and 2020:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Net loss $ (45,442) $ (93,647) $ (274,599) $ (276,304)
Dividends accrued on Series A Preferred Stock (6,126) — (16,414) —
Loss available to common stockholders $ (51,568) $ (93,647) $ (291,013) $ (276,304)
Weighted average common shares outstanding—basic and diluted 145,196 145,196 145,196 145,118
Loss per share—basic and diluted $ (0.36) $ (0.64) $ (2.00) $ (1.90)
The following is a summary of potential shares of common stock that were excluded from the computation of diluted loss per share for both the three and nine months ended September 30, 2021 and 2020:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Stock options 24,118 21,252 24,118 21,252
Unvested restricted stock units 610 — 610 —
Outstanding shares of Series A Preferred Stock 5,430 — 5,430 —
Unvested restricted Series A Preferred Stock 500 — 500 —
Potential common shares excluded from diluted loss per share 30,658 21,252 30,658 21,252
For more information regarding our Series A Preferred Stock and unvested restricted Series A Preferred Stock, see Note 8, Mezzanine Equity and Note 9, Stockholders’ Equity. For more information regarding our stock options and unvested restricted stock units, see Note 9, Stockholders’ Equity.
11

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
3. Supplemental Cash Flow Information
Decreases (increases) in operating assets and increases (decreases) in operating liabilities are as follows:
Nine Months Ended
September 30,
2021 2020
Accounts receivable $ (3,604) $ 6,149
Center operating supplies and inventories (3,836) 6,063
Prepaid expenses and other current assets (3,243) 9,965
Income tax receivable 4,372 2,348
Other assets 1,950 4,491
Accounts payable 17,709 10,890
Accrued expenses and other current liabilities 60,270 (3,636)
Deferred revenue (16,777) (3,776)
Other liabilities 773 12,602
Changes in operating assets and liabilities $ 57,614 $ 45,096
Additional supplemental cash flow information is as follows:
Nine Months Ended
September 30,
2021 2020
Net cash paid for income taxes, net of refunds received (received from income tax refunds, net of taxes paid) $ 221 $ (32,510)
Cash payments for interest, net of capitalized interest 82,228 76,213
Capitalized interest 2,476 3,719
See Note 7, Leases for supplemental cash flow information associated with our lease arrangements for both the three and nine months ended September 30, 2021 and 2020.
4. Goodwill and Intangibles
The goodwill balance was $1,233.2 million at both September 30, 2021 and December 31, 2020.
Intangible assets consisted of the following:
September 30, 2021
Gross Accumulated Amortization Net
Intangible Assets:
Trade name $ 163,000 $ — 163,000
Member relationships 62,100 (62,100) —
Other 15,029 (4,425) 10,604
Total intangible assets $ 240,129 $ (66,525) $ 173,604

December 31, 2020
Gross Accumulated Amortization Net
Intangible Assets:
Trade name $ 163,000  $ —  $ 163,000 
Member relationships 62,100  (62,100) — 
Other 5,252  (3,833) 1,419 
Total intangible assets $ 230,352  $ (65,933) $ 164,419 
12

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
During the nine months ended September 30, 2021, we acquired the assets associated with an outdoor bicycling event for approximately $10.2 million, of which approximately $1.1 million had yet to be paid as of September 30, 2021. The transaction was accounted for as an asset acquisition and the entire purchase price was allocated to an intangible asset associated with a license to use a recreation area for the staging of the event, which expires in April 2031. Other intangible assets at September 30, 2021 includes this facility license as well as trade names and customer relationships associated with our race registration and timing businesses. Other intangible assets at December 31, 2020 consists solely of the trade names and customer relationships associated with our race registration and timing businesses.
Amortization expense associated with intangible assets for both the three months ended September 30, 2021 and 2020 was $0.2 million, and was $0.6 million and $3.6 million for the nine months ended September 30, 2021 and 2020, respectively. Amortization expense associated with intangible assets is included in Depreciation and amortization in our condensed consolidated statements of operations.
5. Revenue
Revenue associated with our membership dues, enrollment fees, and certain services from our in-center businesses is recognized over time as earned. Revenue associated with products and services offered in our cafes and spas, as well as through e-commerce, is recognized at a point in time. The following is a summary of revenue, by major revenue stream, that we recognized during the three and nine months ended September 30, 2021 and 2020:

Three Months Ended
September 30,		 Nine Months Ended
September 30,
2021 2020 2021 2020
Membership dues and enrollment fees $ 261,033 $ 169,612 $ 653,584 $ 490,151
In-center revenue 110,967 58,737 280,106 214,768
Total center revenue 372,000 228,349 933,690 704,919
Other revenue 13,040 2,681 23,835 14,991
Total revenue $ 385,040 $ 231,030 $ 957,525 $ 719,910
The timing associated with the revenue we recognized during the three months ended September 30, 2021 and 2020 is as follows:
Three Months Ended September 30, 2021 Three Months Ended September 30, 2020
Center
Revenue		 Other
Revenue		 Total
Revenue		 Center
Revenue		 Other
Revenue		 Total
Revenue
Goods and services transferred over time $ 324,350 $ 13,040 $ 337,390 $ 201,174 $ 2,681 $ 203,855
Goods and services transferred at a point in time 47,650 — 47,650 27,175 — 27,175
Total Revenue $ 372,000 $ 13,040 $ 385,040 $ 228,349 $ 2,681 $ 231,030
The timing associated with the revenue we recognized during the nine months ended September 30, 2021 and 2020 is as follows:
Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020
Center
Revenue		 Other
Revenue		 Total
Revenue		 Center
Revenue		 Other
Revenue		 Total
Revenue
Goods and services transferred over time $ 813,425 $ 23,835 $ 837,260 $ 618,003 $ 14,991 $ 632,994
Goods and services transferred at a point in time 120,265 — 120,265 86,916 — 86,916
Total Revenue $ 933,690 $ 23,835 $ 957,525 $ 704,919 $ 14,991 $ 719,910
Contract liabilities represent payments or consideration received in advance for goods or services that the Company has not yet transferred to the customer. Contract liabilities consist primarily of deferred revenue as a result of fees collected in advance for membership dues, enrollment fees, personal training, and other center services offerings, as well as our media and athletic events. Total contract liabilities at September 30, 2021 and 2020 were $30.8 million and $50.3 million, respectively.
Contract liabilities that will be recognized within one year are classified as current liabilities and are included in Deferred revenue in our condensed consolidated balance sheets, the balance of which was $28.2 million and $45.8 million at September 30, 2021 and 2020, respectively. These balances primarily consist of prepaid membership dues, personal training and other in-center services, and enrollment fees. The $17.6 million decrease in these contract liabilities was primarily driven by the usage of membership dues credits that we gave to
13

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
members during 2020 as a result of center closures. Also, deferred revenue associated with enrollment fees and center services offerings decreased as a result of our center closures in 2020.
Contract liabilities that will be recognized in a future period greater than one year are classified as long-term liabilities and are included in Other liabilities in our condensed consolidated balance sheets, the balance of which was $2.6 million and $4.5 million at September 30, 2021 and 2020, respectively. These balances primarily consist of deferred enrollment fees. The $1.9 million decrease in these contract liabilities was primarily driven by our center closures during 2020.
6. Debt
Debt consisted of the following:
September 30, 2021 December 31, 2020
Term Loan Facility, maturing December 2024 $ 843,625 $ —
Prior Term Loan Facility, retired January 2021 — 1,471,584
Prior Revolving Credit Facility, retired January 2021 — 94,000
Secured Notes, maturing January 2026 925,000 —
Unsecured Notes, maturing April 2026 475,000 —
2023 Notes, retired February 2021 — 450,000
Secured loan—related parties, retired January 2021 — 101,503
Mortgage notes, various maturities (1)
151,244 167,872
Other debt 4,289 4,289
Fair value adjustment 1,981 2,469
Total debt 2,401,139 2,291,717
Less unamortized debt discounts and issuance costs (37,798) (19,121)
Total debt less unamortized issuance costs 2,363,341 2,272,596
Less current maturities (31,841) (139,266)
Long-term debt, less current maturities $ 2,331,500 $ 2,133,330
(1)    Mortgage notes collateralized by certain related real estate and buildings, due through 2027 at a weighted average interest rate of 4.69% and 4.68% at September 30, 2021 and December 31, 2020, respectively.
Refinancing Transactions
During the nine months ended September 30, 2021, Life Time, Inc., an indirect, wholly-owned subsidiary of Life Time Group Holdings, Inc., as the borrower and issuer, as applicable, together with certain other wholly-owned subsidiaries: (i) refinanced in full the then outstanding balances associated with our previous term loan facility (the “Prior Term Loan Facility”) and our prior revolving credit facility (the “Prior Revolving Credit Facility”) through net cash proceeds Life Time, Inc. received from a new term loan facility (the “Term Loan Facility”) that matures in December 2024 as well as the issuance of senior secured notes (the “Secured Notes”) that mature in January 2026; (ii) refinanced in full our previous senior unsecured notes (the “2023 Notes”) through proceeds Life Time, Inc. received from the issuance of new senior unsecured notes (the “Unsecured Notes”) that mature in April 2026; and (iii) converted our then existing related party secured loan into Series A Preferred Stock.
Senior Secured Credit Facility
In June 2015, Life Time, Inc. and certain of our other wholly-owned subsidiaries entered into a senior secured credit facility with a group of lenders led by Deutsche Bank AG as the administrative agent. On January 22, 2021, Life Time, Inc. and certain of our other wholly-owned subsidiaries entered into an eighth amendment to the credit agreement governing our senior secured credit agreement (the “Amended Senior Secured Credit Facility”). Pursuant to the Amended Senior Secured Credit Facility, Life Time, Inc. and such other subsidiaries: (i) entered into the Term Loan Facility and incurred new term loans in an aggregate principal amount of $850.0 million; (ii) paid off the then outstanding balances associated with the Prior Term Loan Facility and the Prior Revolving Credit Facility; and (iii) extended the maturity of $325.2 million of the $357.9 million Prior Revolving Credit Facility to September 2024 (the “Revolving Credit Facility”).
Upon the exercise of an accordion feature and subject to certain conditions, borrowings under the Amended Senior Secured Credit Facility may be increased up to an additional $400.0 million (plus additional amounts that may be added upon the satisfaction of certain financial tests) subject, in certain cases, to meeting a first lien net leverage ratio. Our ability to increase our borrowings under the Amended Senior Secured Credit Facility using this accordion feature is restricted during the Covenant Modification Period (as defined in “—Debt
14

LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
Covenants” below). The Amended Senior Secured Credit Facility is secured by a first priority lien (on a pari-passu basis with the Secured Notes described below) on substantially all of our assets.
The net cash proceeds Life Time, Inc. received under the Term Loan Facility, as well as from the Secured Notes, were used to: (i) refinance in full the then outstanding balances associated with the Prior Term Loan Facility and the Prior Revolving Credit Facility (details of which are described under “—Term Loan Facility” and “—Revolving Credit Facility,” respectively); (ii) pay debt issuance and original issue discount costs associated with each of these financing transactions (details of which are described in “—Debt Discounts and Issuance Costs” below); and (iii) strengthen our balance sheet by adding to our cash position.
Term Loan Facility
At both December 31, 2020 and January 22, 2021 (the effective date of the refinancing), the Prior Term Loan Facility balance was $1,471.6 million. Under the Term Loan Facility, Life Time, Inc. incurred new term loans in an aggregate principal amount of $850.0 million, of which $507.6 million represents cash proceeds received and $342.4 million represents the cashless portion of the Prior Term Loan Facility that was rolled over into the Term Loan Facility. On January 22, 2021, we used the net cash proceeds received from the Term Loan Facility, as well as a portion of the net proceeds received from the Secured Notes, to pay off the remaining $1,129.2 million Prior Term Loan Facility balance.
The $850.0 million Term Loan Facility amortizes at 0.25% quarterly, resulting in mandatory quarterly principal repayments of approximately $2.1 million, and matures in December 2024. At September 30, 2021, the Term Loan Facility loan balance was $843.6 million, with interest due at intervals ranging from 30 to 180 days at interest rates ranging from the London Interbank Offered Rate (“LIBOR”) plus 4.75% or base rate plus 3.75%, in either case subject to a 1.00% rate floor.
Revolving Credit Facility
The Prior Revolving Credit Facility provided for a $357.9 million revolver. At December 31, 2020 and January 22, 2021 (the effective date of the refinancing), the Revolving Credit Facility balance was $94.0 million and $109.0 million, respectively. Under the Revolving Credit Facility, we extended the maturity of $325.2 million of the $357.9 million revolver to September 2024. The remaining $32.7 million non-extended portion of our Revolving Credit Facility matures in August 2022. On January 22, 2021, we used a portion of the net proceeds we received from the Secured Notes to pay off the then outstanding $109.0 million Prior Revolving Credit Facility balance.
At September 30, 2021, there were no outstanding borrowings on the Revolving Credit Facility and there were $40.1 million of outstanding letters of credit, resulting in total revolver availability, subject to a $100.0 million minimum liquidity requirement (see “—Debt Covenants” below), of $217.8 million, of which $185.1 million was available at intervals ranging from 30 to 180 days at interest rates ranging from LIBOR plus 4.25% or base rate plus 3.25%, while interest on the remaining $32.7 million was available at intervals ranging from 30 to 180 days at LIBOR plus 3.00% or base rate plus 2.00%.
The weighted average interest rate and debt outstanding under the Revolving Credit Facility for the nine months ended September 30, 2021 was 3.83% and $12.1 million, respectively. The highest month-end balance during that same period was $40.0 million.
Secured Notes
On January 22, 2021, Life Time, Inc. issued Secured Notes in an aggregate principal amount of $925.0 million. These notes mature in January 2026 and interest only payments are due semi-annually in arrears at 5.75%. Life Time, Inc. has the option to call the Secured Notes, in whole or in part, on one or more occasions, beginning on January 15, 2023, subject to the payment of a redemption price that includes a call premium that varies depending on the year of redemption. In addition, at any time prior to January 15, 2023, Life Time, Inc. may redeem up to 40.00% of the aggregate principal amount of the Secured Notes outstanding with the net proceeds of certain equity offerings by us at a redemption price equal to 105.75% of the principal amount of the Secured Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date. The Secured Notes and the related guarantees are our senior secured obligations and are secured on a first-priority basis by security interests in substantially all of our assets. As of September 30, 2021, $925.0 million remained outstanding on the Secured Notes.
Unsecured Notes
In June 2015, Life Time, Inc. issued the 2023 Notes in the original principal amount of $450.0 million, which were scheduled to mature in June 2023. At both December 31, 2020 and February 5, 2021, $450.0 million remained outstanding on the notes. On February 5, 2021, Life Time, Inc. refinanced the 2023 Notes through the issuance by Life Time, Inc. of the Unsecured Notes in the original principal amount of $475.0 million. The Unsecured Notes mature in April 2026 and interest only payments are due semi-annually in arrears at 8.00%. The proceeds from the Unsecured Notes were used to: (i) redeem in full the then outstanding 2023 Notes balance of $450.0 million and satisfy and discharge our obligations thereunder; (ii) pay debt issuance costs associated with the issuance of the Unsecured Notes (details of which are described in “—Debt Discounts and Issuance Costs” below); and (iii) strengthen our balance sheet by adding to our cash position.
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LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
Life Time, Inc. has the option to redeem the Unsecured Notes, in whole or in part, on one or more occasions, beginning on February 1, 2023, subject to the payment of a redemption price that includes a call premium that varies depending on the year of redemption. In addition, at any time prior to February 1, 2023, Life Time, Inc. may redeem up to 40.00% of the aggregate principal amount of the Unsecured Notes outstanding with the net proceeds of certain equity offerings by us at a redemption price equal to 108.00% of the principal amount of the Unsecured Notes, plus accrued and unpaid interest, if any, to, but not including, the redemption date. The Unsecured Notes and the related guarantees are our general senior unsecured obligations and will rank equally in right of payment with all of our existing and future senior indebtedness without giving effect to collateral arrangements. As of September 30, 2021, $475.0 million remained outstanding on the Unsecured Notes.
Secured Loan—Related Parties
On June 24, 2020, we closed on an approximate $101.5 million secured loan (the “Related Party Secured Loan”) from an investor group that was comprised solely of our stockholders or their affiliates. The Related Party Secured Loan was scheduled to mature in June 2021. During the nine months ended September 30, 2021, interest expense of approximately $0.7 million was recognized on this secured loan.
On January 11, 2021, Life Time Group Holdings, Inc. and certain of its subsidiaries and the investor group associated with the Related Party Secured Loan (or their assignees) entered into a contribution agreement (the “Contribution Agreement”) pursuant to which we converted the total amount of outstanding principal and accrued interest (up though and including January 22, 2021) under the Related Party Secured Loan into Series A Preferred Stock. Effective January 22, 2021, the total outstanding principal and accrued interest balance of approximately $108.6 million was conveyed by the investor group to us and we issued, on a dollar-for-dollar basis, to the investor group approximately 5.4 million shares of Series A Preferred Stock with an estimated fair value of $149.6 million. For accounting purposes, because the fair value of the Series A Preferred Stock that was issued exceeded the carrying value of the outstanding principal and accrued interest balance associated with the Related Party Secured Loan that was extinguished, we recognized a $41.0 million debt extinguishment loss, which is included in Interest expense, net of interest income in our condensed consolidated statement of operations for the nine months ended September 30, 2021. For more information regarding the Series A Preferred Stock that was issued in connection with this transaction, see Note 8, Mezzanine Equity.
Debt Discounts and Issuance Costs
In connection with the Term Loan Facility, Secured Notes and Unsecured Notes, we incurred debt discounts and issuance costs totaling approximately $44.4 million during the nine months ended September 30, 2021. In our condensed consolidated balance sheets, we recognize, and present unamortized debt discounts and issuance costs associated with non-revolving debt as a deduction from the face amount of related indebtedness. Accordingly, as it relates to these debt instruments, unamortized debt discounts and issuance costs of $37.8 million are included in Long-term debt, net of current portion on our September 30, 2021 condensed consolidated balance sheet.
In connection with the Prior Term Loan Facility, the 2023 Notes and the Related Party Secured Loan, we had incurred debt discounts and issuance costs totaling $78.6 million. At December 31, 2020, unamortized debt discounts and issuance costs of $19.1 million are included in Long-term debt, net of current portion on our December 31, 2020 condensed consolidated balance sheet. In connection with the extinguishment of these debt instruments during the nine months ended September 30, 2021, previously unamortized debt discounts and issuance costs were written off. Accordingly, as it relates to these extinguished debt instruments, we recognized $18.3 million of debt discount and issuance cost write-offs during the nine months ended September 30, 2021, which are included in Interest expense, net of interest income in our condensed consolidated statement of operations for the nine months ended September 30, 2021.
In connection with both the Revolving Credit Facility and the Prior Revolving Credit Facility, we have incurred total debt issuance costs of $7.4 million, of which $0.8 million were incurred during the nine months ended September 30, 2021. As of the January 22, 2021 effective date associated with the Amended Senior Secured Credit Facility, the borrowing capacity (i.e., the product of the remaining term and the maximum available credit) associated with the Revolving Credit Facility was greater than the borrowing capacity associated with the Prior Revolving Credit Facility. Accordingly, the debt issuance costs incurred in connection with the Revolving Credit Facility, as well as the unamortized portion of the debt issuance costs associated with the Prior Revolving Credit Facility, will be amortized over the term of the Revolving Credit Facility. We recognize and present unamortized issuance costs associated with revolving debt arrangements as an asset. Accordingly, unamortized revolver-related debt issuance costs of $1.7 million and $1.3 million, respectively, are included in Other assets on our condensed consolidated balance sheets at September 30, 2021 and December 31, 2020, respectively.
Debt Covenants
We are required to comply with certain affirmative and restrictive covenants under our Amended Senior Secured Credit Facility, Secured Notes and Unsecured Notes. We are also required to comply with a first lien net leverage ratio covenant under the revolving portion of our Amended Senior Secured Credit Facility. However, our Amended Senior Secured Credit Facility includes a covenant modification period (the “Covenant Modification Period”) ending on the earlier of (i) January 1, 2022 or (ii) the date we provide notice of our intention to terminate the Covenant Modification Period. During the Covenant Modification Period, we are not obligated to comply with the first lien net leverage ratio covenant; however, we are required to maintain a minimum liquidity balance of $100.0 million, which is tested monthly.
Effective as of the end of the first fiscal quarter following the Covenant Modification Period and continuing throughout the remaining term of our Amended Senior Secured Credit Facility, we will be required to maintain a first lien net leverage ratio, if 30% or more of the
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LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
Revolving Credit Facility commitments are outstanding shortly after the end of any fiscal quarter (excluding all cash collateralized undrawn letters of credit and other undrawn letters of credit up to $20.0 million). During the first three quarterly test periods following the Covenant Modification Period, certain financial measures used in the calculation of the first lien net leverage ratio will be calculated on a pro forma basis by annualizing the respective financial measures recognized during those test periods.
Future Maturities of Long-Term Debt
Aggregate annual future maturities of long-term debt, excluding unamortized discounts, issuance costs and fair value adjustments, at September 30, 2021 were as follows:
October 2021 through September 2022 $ 31,841
October 2022 through September 2023 28,252
October 2023 through September 2024 72,682
October 2024 through September 2025 830,825
October 2025 through September 2026 1,413,281
Thereafter 22,277
Total future maturities of long-term debt $ 2,399,158
7. Leases
Lease Cost
Lease cost included in our condensed consolidated statements of operations for the three months ended September 30, 2021 and 2020 consisted of the following:
Three Months Ended
September 30,		 Classification in Condensed
Consolidated Statements of Operations
2021 2020
Lease cost:
Operating lease cost 50,987 46,644 Rent
Short-term lease cost 281 338 Rent
Variable lease cost 1,245 557 Rent
Finance lease cost:
Amortization of right-of-use assets 380 652 Depreciation and amortization
Interest on lease liabilities 42 43 Interest expense, net of interest income
Total lease cost $ 52,935 $ 48,234
Lease cost included in our condensed consolidated statements of operations for the nine months ended September 30, 2021 and 2020 consisted of the following:
Nine Months Ended
September 30,		 Classification in Condensed
Consolidated Statements of Operations
2021 2020
Lease cost:
Operating lease cost 150,475 136,760 Rent
Short-term lease cost 747 928 Rent
Variable lease cost 3,330 782 Rent
Finance lease cost:
Amortization of right-of-use assets 1,119 1,925 Depreciation and amortization
Interest on lease liabilities 140 143 Interest expense, net of interest income
Total lease cost $ 155,811 $ 140,538
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LIFE TIME GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Table amounts in thousands except per share data)
Operating and Finance Lease Right-of-Use Assets and Lease Liabilities
Operating and finance lease right-of-use assets and lease liabilities were as follows:
September 30, 2021 December 31, 2020 Classification on Condensed
Consolidated Balance Sheet
Lease right-of-use assets:
Operating leases 1,864,246 1,708,597 Operating lease right-of-use assets
Finance leases (1)
2,325 2,295 Other assets
Total lease right-of-use assets $ 1,866,571 $ 1,710,892
Lease liabilities:
Current
Operating leases 44,137 49,877 Current maturities of operating lease liabilities
Finance leases 1,383 1,171 Accrued expenses and other current liabilities
Non-Current
Operating leases 1,902,784