Due from Key     Capital     Accumulated    Employees Contributions Additional Other for Stock Receivable Total Common Paid-In Retained Comprehensive Purchase from Shareholders’ (in thousands, except share amounts) Stock Capital Earnings Loss Program Shareholders Equity Balance at January 1, 1999      $478         $159,936      $ 78,599      $      —         $(5,236 )         $(2,618 )       $231,159       Issuance of shares under stock    option plans (123,000 shares) 1 619 — — — — 620   Issuance of shares of common    stock to obtain service    agreements (80,000 shares) 2 800 — — — — 802   Issuance of shares under    orthodontist stock purchase    program (21,000 shares) — 1,187 — — — — 1,187   Effect of revised estimate    of tax benefit from the    exercise of stock options — (1,077 ) — — — — (1,077 )   Net income — — 45,836 — — — 45,836 Balance at December 31, 1999 481 161,465 124,435 — (5,236 ) (2,618 ) 278,527   Issuance of shares under stock    option plans (479,000 shares) 3 3,512 — — — — 3,515   Issuance of shares of common    stock to obtain service    agreements (185,000 shares) 2 4,056 — — — — 4,058   Repayment of loans from    key employee for stock    purchase program — (1,816 ) — — 3,632 816 2,632   Issuance of shares under    orthodontist stock purchase    program (22,700 shares) 1 1,444 — — — — 1,445   Foreign currency    translation adjustment — — — (127 ) — — (127 )   Net income (loss) — — (2,854 ) — — — (2,854 ) Balance at December 31, 2000 487 168,661 121,581 (127 ) (1,604 ) (1,802 ) 287,196   Issuance of shares under    stock option plans (868,000 shares) 9 10,629 — — — — 10,638   Issuance of shares of common    stock to obtain service    agreements (16,000 shares) 1 483 — — — — 484   Repayment of loans from    key employee for stock    purchase program — (559 ) — — 1,116 558 1,115   Issuance of shares under    orthodontist stock purchase    program (28,000 shares) — 1,584 — — — — 1,584   Foreign currency    translation adjustment — — — (1,862 ) — — (1,862 )   Issuance of stock in OrthAlliance    merger (1,242,000 shares) 12 28,151 — — — — 28,163   Key employee transaction — — — — — 1,000 1,000   Net income — — 61,134 — — — 61,134 Balance at December 31, 2001 $509 $208,949 $182,715 $(1,989 ) $    (488 ) $    (244 ) $389,452   See notes to consolidated financial statements.