Notes Thirteen: GOODWILL AND OTHER INTANGIBLE ASSETS

In July 2001, the FASB issued SFAS No. 142, "Goodwill and Other Intangible Assets." SFAS No. 142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized but instead tested for impairment at least annually. SFAS No. 142 also requires that intangible assets with definite useful lives be amortized over their respective estimated useful lives to their estimated residual values.The Company adopted SFAS No. 142 effective December 1, 2002.

During 2003, the Company completed the required transitional goodwill and intangible Asset impairment test s. No impairment losses were identified as a result of these tests. The changes in the carrying amount of goodwill by business segment were as follows:

The Company's intangible assets and related accumulated amortization consisted of the following at November 30:

Amortization expense related to intangible assets for the fiscal years ended November 30, 2003, 2002, and 2001 were $278,000, $540,000, and $813,000, respectively. At November 30, 2003, estimated future amortization expense for each of the years in the four-year period ending November 30, 2007 was as follows: $209,000 for 2004, $169,000 for 2005, $29,000 for 2006, and $5,000 for 2007.

The following is a summary of net income and earnings per share for the years ended November 30, 2003, 2002 and 2001, as adjusted to remove the amortization of goodwill.