Quest Diagnostics 2000 Annual Report Download - page 94

QUEST DIAGNOSTICS INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(dollars in thousands unless otherwise indicated)
F-24
The following relates to options outstanding at December 31, 2000:
Options Outstanding Options Exercisable
Range of
Exercise Price
Shares
(in thousands)
Weighted Average
Remaining
Contractual Life
(in years)
Weighted Average
Exercise Price
Shares
(in thousands)
Weighted Average
Exercise Price
$10.51 - $22.56 1,357 6.5 $ 15.52 1,285 $ 15.36
$25.84 - $38.31 2,726 8.7 27.22 524 26.91
$57.06 - $67.81 396 9.4 60.21 - -
$70.31 - $99.63 24 9.6 79.05 - -
$100.25 - $112.56 57 9.6 104.50 - -
$117.75 - $135.50 63 9.9 127.09 - -
The following summarizes the activity relative to incentive stock awards granted in 2000, 1999 and 1998 (shares
in thousands):
2000 1999 1998
Incentive shares, beginning of year ............................................................. 568 370 422
Incentive shares granted .............................................................................. 460 555 359
Incentive shares vested ................................................................................ (112) (348) (33)
Incentive shares forfeited and canceled ....................................................... (22) (9) (378)
Incentive shares, end of year ....................................................................... 894 568 370
Weighted average fair value of incentive shares at grant date .................... $47.08 $23.90 $16.06
The balance of the incentive stock awards at December 31, 2000 are subject to forfeiture if employment
terminates prior to the end of the prescribed vesting period.
Employee Stock Purchase Plan
Under the Company’s Employee Stock Purchase Plan (“ESPP”), substantially all employees can elect to have up
to 10% of their annual wages withheld to purchase Quest Diagnostics’ common stock. The purchase price of the stock is
85% of the lower of its beginning-of-quarter or end-of-quarter market price. Under the ESPP, the maximum number of
shares of Quest Diagnostics’ common stock which may be purchased by eligible employees is 2 million. Approximately
231, 206, and 232 thousand shares of common stock were purchased by eligible employees in 2000, 1999 and 1998,
respectively.
Employee Stock Ownership Plan
Prior to 1999, the Company maintained its Employee Stock Ownership Plan (“ESOP”) to account for certain
shares of Quest Diagnostics’ common stock which had been issued for the account of all active regular employees of the
Company as of December 31, 1996. Effective with the closing of the SBCL acquisition, the Company modified certain
provisions of the ESOP to provide an additional benefit to employees through ownership of the Company’s common
stock. Substantially all of the Company’s employees are eligible to participate in the ESOP. The Company’s
contributions to the ESOP trust are based on 2% of eligible employee compensation for those employees who are actively
employed or on a leave of absence on December 31 of each year. Company contributions to the trust may be in the form
of shares of Quest Diagnostics’ common stock, cash or any combination of the above. The Company’s contributions to
this plan aggregated $21.0 million and $7.5 million for 2000 and 1999, respectively. No contributions were made to the
plan in 1998.