MANAGEMENT’S DISCUSSION AND ANALYSIS  (CONTINUED) amend Statement 123 to require companies to account for employee stock options using the fair value method, the disclosure provisions of Statement 148 are applicable to all companies with stock-based com- pensation, regardless of whether they account for that compensation using the fair value method of Statement 123 or the intrinsic value method of Opinion 25. We have adopted the new disclosure require- ments of SFAS No. 148 for 2002. In June 2001, the FASB issued SFAS No. 141,  Business Combinations and No. 142,  Goodwill and Other Intangible Assets .SFAS 141 requires that the purchase method of accounting be used for all business combi- nations initiated after June 30, 2001. SFAS 141 also includes guidance on the initial recognition and mea- surement of goodwill and other intangible assets arising from business combinations completed after that date. SFAS 142 prohibits the amortization of goodwill and intangible assets with indefinite lives. SFAS 142 requires that these assets be reviewed for impairment at least annually. Intangible assets with definite lives will contin- ue to be amortized over their estimated useful lives. The Company adopted SFAS 142 effective January 1, 2002 and ceased the amortization of goodwill and intan- gibles with indefinite lives. Amortization expense of goodwill was $2,154,000, or $.07 per diluted share after tax, and $2,033,000, or $0.06 per diluted share after tax, in 2001 and 2000, respectively. The Company tested good- will for impairment using the two-step process prescribed in SFAS 142. The first step in the process is a screen for potential impairment, while the second step measures the amount of impairment, if any. The Company com- pleted the required impairment tests of goodwill during the first quarters of 2002 and 2003 and noted no impair- ment of goodwill.