There were no discontinued operations during the quarter ended December 31, 2000. The Company's working capital needs were provided from operations. The majority of the expenditures will be for facility upgrades at the Company's facilities in the Netherlands and Texas, as well as for enhancing the Company's information technology capabilities. The Company's Board of Directors has authorized an ongoing stock repurchase program. The objectives of the program, among other items, are to offset the issuance of stock options, provide liquidity to the market and to reduce the overall number of shares outstanding.
Repurchases are subject to market conditions and cash availability.
In May 1999, the Board increased the repurchase authorization by 4 million shares to 4.6 million shares. Certain technologies related to the manufacture of mammary prostheses were developed under a 1983 agreement with a limited partnership whereby the limited partners contributed money towards the development of the technology in exchange for payments based upon a percentage of future sales of the products utilizing the technology. The Company was the general partner for this partnership. The agreement included an option to purchase the technology and thereby terminate the partnership. The Company exercised its option to make a lump sum payment to the Limited Partners in lieu of all future payments and rights according to the Agreement of Purchase and Sale between Mentor Corporation and the Partnership, as amended.