Since August 1, 2001, we have leased our headquarters building in Cleveland, Ohio, consisting of 121,625 square feet. Since April 11, 2000, we have leased a 19,484 square foot facility in Cleveland, Ohio that houses our new business underwriting operations. Continental General owns and occupies a building in Omaha, Nebraska, consisting of approximately 61,400 square feet. Pyramid Life owns and occupies a building in Mission, Kansas, consisting of approximately 45,000 square feet. Since August 1, 2000, we have also leased a 3,605 square foot office in Chicago, Illinois. Since January 10, 2001, we have also leased a 4,365 square foot office in Dallas, Texas.
In June 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement Obligations, which addressed financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. This Statement is effective for financial statements issued for fiscal years beginning after June 15, 2002. We anticipate that the adoption of this standard will not have a significant effect on our results of operations, financial position or liquidity.
In June 2001, the FASB issued SFAS No. 142, Goodwill and Other Intangible Assets, which replaces APB Opinion No. 17, Intangible Assets. This Statement addressed how intangible assets that are acquired individually or with a group of other assets (but not those acquired in a business combination) should be accounted for in financial statements upon their acquisition. Additionally, this Statement discussed how goodwill and other intangible assets should be accounted for after they have been initially recognized in the financial statements. This Statement:
The provisions of SFAS No. 142 were adopted by the Company as required effective January 1, 2002. Application of the nonamortization provisions of this Statement is expected to reduce annual expense by approximately $1.1 million, which is projected to result in an increase in net income of approximately $0.7 million, or $0.02 per diluted share, in 2002 and subsequent periods, subject to the impairment test described herein. SFAS No. 142, as part of its adoption provisions, requires a transitional impairment test to be applied to all goodwill and other indefinite-lived intangible assets within the first half of 2002 and any resulting impairment loss be reported as a change in accounting principle. The Company is in the process of evaluating the potential impact of this Statement on its results of operations, financial position, and liquidity.
The amortized cost and estimated fair value of invested assets as of December 31, 2000 were as follows:
Exercise prices for options outstanding at December 31, 2001 ranged from $5.12 to $10.50, of which 51% were between $5.12 and $6.99, 14% between $7.00 and $7.99, 27% between $8.00 and $8.99, and 8% between $9.00 and $10.50. While some options have no expiration date, management estimates the remaining average contractual life of options awarded is 5 years.
value at the beginning of the offering period or on the applicable exercise date and may be paid through payroll deductions. As of December 31, 2001 and 2000, 62,761 and 18,807 shares, respectively, had been issued under the employee plan.