Notes to Consolidated Financial Statements NOTE EGOODWILL AND INTANGIBLE ASSETS The components of goodwill by segments are listed below:
The increase in goodwill reflects an election made during 2002 relating to the tax treatment of the 4Sure.com acquisition. The election resulted in the use of acquired net operating loss carryforwards and the related portion of goodwill being deductible over 15 years for tax purposes. This treatment had no impact on the results of operations or current period cash flows. The remaining change in the value of goodwill reflects the impact of accounting for the Australian business as a discontinued operation, as well as fluctuations in foreign currency exchange rates. Under accounting rules that went into effect at the beginning of 2002, goodwill and indefinite life intangible assets are no longer amortized but are tested annually for impairment. Goodwill amortization in 2001 and 2000 was $5.2 million and $5.1 million, respectively. Without this amortization, pro forma earnings per share would have increased by $0.02 for both 2001 and 2000. The net book value of intangible assets totaled $12.5 million at December 28, 2002 and $10.9 million at December 29, 2001 and is included in other assets in the Consolidated Balance Sheets. Amortization of intangible assets was $1.5 million in 2002, $2.0 million in 2001, and $2.1 million in 2000. It is anticipated that amortization expense will continue at approximately $1.5 million for 2003, $0.9 million for 2004, and $0.4 million per year for the three years thereafter. |
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