As a result of this settlement and the quantification of remaining medical obligations, the Company released $6.3 million of medical claims liabilities from its AHERF reserve, which was reflected as a gain in the fourth quarter and year-end 1999 results.

Subsequently, during the fourth quarter of 2000, the Company was notified that it would be receiving a distribution from the AHERF bankruptcy proceedings. In addition, the Company was in the final stages of renegotiating most of its AHERF related lease obligations. These events necessitated a re-estimation of our remaining lease liabilities. This re-estimation resulted in an additional release from the Company’s AHERF reserve of $4.3 million. This release, and an estimation of the bankruptcy proceeds of $4.1 million was reflected as a gain in the fourth quarter and year-end 2000 results.

The balance of the reserve at December 2001 was $3.1 million and represents the Company’s remaining obligations under the settlement (e.g. vacant office leases) and will be expended through August 2007.

Basic EPS is based on the weighted average number of common shares outstanding during the year. Diluted EPS, when applicable, assumes the conversion of convertible notes and the exercise of all options, warrants and redeemable convertible preferred stock using the treasury stock method. Net earnings is increased for the assumed elimination of interest expense on the convertible notes.

The following table summarizes the earnings and the average number of common shares used in the calculation of basic and diluted EPS (in thousands, except for per share amounts):

	Earnings	Shares	Per Share Amount
Year Ended December 31, 2001
Basic earnings per share
Earnings before cumulative effect - SFAS No. 133	$ 83,529	64,990	$ 1.29
Cumulative effect - SFAS No. 133	878	-	0.01
Basic earnings per share	$ 84,407	64,990	$ 1.30
Diluted earnings per share
Earnings before cumulative effect - SFAS No. 133	$ 83,529	64,990
Effect of dilutive securities:
Options and warrants		2,885
	$ 83,529	67,875	$ 1.23
Cumulative effect - SFAS No. 133	878	-	0.0 1
Diluted earnings per share	$ 84,407	67,875	$ 1.24
Year Ended December 31, 2000
Basic earnings per share	$ 61,340	59,521	$ 1.03
Effect of dilutive securities:
Options and warrants		2,123
Redeemable convertible preferred stock		4,113

Diluted earnings per share	$ 61,340	65,757	$ 0.93
Year Ended December 31, 1999
Basic earnings per share	$ 43,435	59,025	$ 0.74
Effect of dilutive securities:
Options and warrants		498
Redeemable convertible preferred stock		1,639
Convertible notes		2,997
Interest on convertible notes	848
Diluted earnings per share	$ 44,283	64,159	$ 0.69