As of December 31, 2004, goodwill was $5.1 million ($4.2 million related to the FabTech acquisition, and $0.9 mil- lion related to Diodes-China). Beginning in fiscal 2002  with the adoption of SFAS No. 142 ( “Goodwill and Other  Intangible Assets” ), goodwill is no longer amortized, but  instead tested for impairment at least annually. As a  result of the Company’s adoption of SFAS No. 142, an  independent appraiser hired by the Company performed  the required impairment tests of goodwill annually and  has determined that the goodwill is fully recoverable.  We assess the impairment of long-lived assets, including  goodwill, on an ongoing basis and whenever events or  changes in circumstances indicate that the carrying value  may not be recoverable. Our impairment review process  is based upon (i) an income approach from a discounted  cash flow analysis, which uses our estimates of revenues,  costs and expenses, as well as market growth rates, and (ii) a market multiples approach which measures the  value of an asset through an analysis of recent sales or offerings or comparable public entities. If ever the carry- ing value of the goodwill is determined to be less than  the fair value of the underlying asset, a write-down of the  asset will be required, with the resulting expense charged in the period that the impairment was determined. The following table sets forth, for the periods indicated,  the percentage that certain items in the statement of in- come bear to net sales and the percentage dollar increase  (decrease) of such items from period to period. Results of Operations Impairment of Long-lived Assets The following discussion explains in greater detail the consolidated financial condition of the Company.  This discussion should be read in conjunction with the consolidated financial statements and notes thereto  appearing elsewhere herein. Earnings per share discussion reflects three-for-two stock split in November  2003. All per share amounts have been adjusted to reflect  the stock split. 20 Percent of Net Sales  Percentage Dollar Increase (Decrease) Year Ended December 31,  Year Ended December 31, 2000  2001  2002  2003  2004  ’00 to ’01  ’01 to ’02  ’02 to ’03  ’03 to ’04 Net sales  100.0 %  100.0 %  100.0 %  100.0 %  100.0 % (19.7) %  24.3 %  18.2 %  35.6 % Cost of goods sold  (67.8)  (84.8)  (76.9)  (73.3)  (67.3)  0.5  12.8  12.6  24.5 Gross profit  32.2  15.2  23.1  26.7  32.7  (62.1)  88.4  36.8  66.3 Operating expenses$^{ (1)}$  (16.3)  (15.4)  (15.4)  (16.6)  (14.5)  (24.5)  24.0  27.8  18.8 Income (loss) from operations  15.9 (0.2)  7.7 10.1 18.2 (100.7)  6,893.2  54.5  143.9 Interest expense, net  (0.8)  (2.2)  (1.0)  (0.6)  (0.3)  120.6  (43.0)  (27.3)  (25.9) Other income (expense)  0.4  0.8  0.1  0.0  (0.2)  56.7  (91.5)  (107.5)  8,260.0 Income (loss) before taxes and minority interest  15.5 (1.6)  6.8 9.5 17.7 (107.9)  652.5 65.5  152.0 Income tax benefit (provision)  (2.2)  1.9 (1.5)  (1.8)  (3.5)  (29.1)  (2.3)  42.3  164.8 Minority interest  (0.6)  (0.2)  (0.3)  (0.3)  (0.4)  (65.1)  42.9 36.3  54.9 Net income  12.7 0.1 5.0 7.4 13.8 (99.2)  4,578.9 74.0  153.1 (1) Operating expenses include loss on sale and impairment of fixed assets of $43,000, $1,037,000 and $14,000 in 2002, 2003 and 2004, respectively. Diodes Incorporated and Subsidiaries management ’ s discussion and analysis of financial condition  and results of operations