2. Goodwill and Other Intangibles

Goodwill and other intangibles principally relate to the excess of the purchase price over the fair value of tangible assets acquired. Goodwill and intangible assets that have indefinite useful lives are tested at least annually for impairment during the Company’s second fiscal quarter and otherwise as may be required. During the fiscal year 2007 second quarter, the Company tested its goodwill and indefinite-lived intangible assets for impairment. Based on this test, the Company determined that there were no instances of impairment.

Acquisition-related Goodwill

Changes in the carrying amounts of goodwill by segment for the fiscal years ended August 31, 2007 and 2006 are summarized below:

	Acquisition-related Goodwill
	Americas				Europe				Asia-Pacific				Total
Balance as of August 31, 2005	$	85,628,000		$	9,018,000		$	1,212,000		$	95,858,000
Translation adjustments		39,000			221,000			—			260,000
Balance as of August 31, 2006		85,667,000			9,239,000			1,212,000			96,118,000
Translation adjustments		42,000			248,000			1,000			291,000
Balance as of August 31, 2007	$	85,709,000		$	9,487,000		$	1,213,000		$	96,409,000

Indefinite-lived Intangible Assets

Intangible assets, excluding goodwill, which are not amortized as they have been determined to have indefinite lives, consist of the trade names Carpet Fresh, X-14, 2000 Flushes, Spot Shot and 1001.

Changes in the carrying amounts of indefinite-lived intangibles by segment for the fiscal years ended August 31, 2007 and 2006 are summarized below:

	Acquisition-related Goodwill
	Americas				Europe				Asia-Pacific				Total
Balance as of August 31, 2005	$	35,700,000		$	3,656,000		$	—		$	39,356,000
Translation adjustments		—			206,000			—			206,000
Balance as of August 31, 2006		35,700,000			3,862,000			—			39,562,000
Translation adjustments		—			231,000						231,000
Balance as of August 31, 2007	$	35,700,000		$	4,093,000		$	—		$	39,793,000

Definite-lived Intangible Assets

The Company’s definite-lived intangible asset consists of certain non-contractual customer relationships acquired in the fiscal year 2004 acquisition of the 1001 line of products.

This definite-lived intangible asset is included in the Europe segment and is being amortized on a straight-line basis over its estimated eight-year life. The following table summarizes the non-contractual customer relationships intangible asset and the related amortization:

	As of August 31,
	2007				2006
Gross carrying amount	$	4,800,000		$	4,528,000
Accumulated amortization		(2,050,000	)		(1,368,000	)
Net carrying amount	$	2,750,000		$	3,160,000

	Year Ended August 31,
	2007				2006				2005
Amortization expense	$	583,000		$	532,000		$	552,000

The estimated amortization expense for the non-contractual customer relationships intangible asset is based on current foreign currency exchange rates, and amounts in future periods may differ from those presented due to fluctuations in those rates. The estimated amortization for the non-contractual customer relationships intangible asset in future fiscal years is as follows:

Fiscal year 2008	$	600,000
Fiscal year 2009		600,000
Fiscal year 2010		600,000
Fiscal year 2011		600,000
Thereafter		350,000
	$	2,750,000

Changes in the carrying amounts of definite-lived intangibles by segment for the fiscal years ended August 31, 2007 and 2006 are summarized below:

	Definite-lived Intangibles
	Americas				Europe				Asia-Pacific				Total
Balance as of August 31, 2005	$	—		$	3,528,000		$	—		$	3,528,000
Amortization		—			(532,000	)		—			(532,000	)
Translation adjustments		—			164,000			—			164,000
Balance as of August 31, 2006		—			3,160,000			—			3,160,000
Amortization		—			(583,000	)		—			(583,000	)
Translation adjustments		—			173,000			—			173,000
Balance as of August 31, 2007	$	—		$	2,750,000		$	—		$	2,750,000