2004 Notes to Consolidated Financial Statements (Dollar and Share Amounts in Thousands except Per Share Information and as Otherwise Noted)  Other assets consist of prepaid security deposits, goodwill and a non-compete agreement.  Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Net goodwill  was $1,400 in all three years. The non-compete is amortized on a straight-line basis over 15 years. Net non- compete was $558, $625, and $692 on December 21, 2004, 2003, and 2002, respectively. Total non- compete amortization costs were $67 per year in 2004, 2003, and 2002. Goodwill and other tangible and identifiable intangible long-lived assets are reviewed whenever events or  changes in circumstances indicate that the carrying amount of an asset may not be recoverable, or on an  annual basis if no event or change occurs, to determine that the unamortized balances are recoverable.  Recoverability is measured by a comparison of the carrying amount of an asset to future net cash flows  expected to be generated by the asset, and, in the case of goodwill, by also looking at an adverse change in  legal factors or the business climate, a transition to a new product or services strategy, a significant change  in the customer base, and/or a realization of failed marketing efforts. If the asset is deemed to be impaired,  the amount of impairment is charged to earnings as a part of operating and administrative expenses in the  current period. Assets to be disposed of are reported at the lower of the carrying amount or fair value less  cost to sell. The preparation of financial statements in conformity with U.S. generally accepted accounting principles  requires management to make estimates and assumptions that affect the reported amounts of assets and  liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the  reported amounts of revenues and expenses during the reported period. Actual results could differ from  those estimates. The Company is self-insured for certain losses relating to medical, worker’s compensation, and other  casualty losses. Specific stop loss coverage is provided for catastrophic claims in order to limit exposure to  significant claims. Losses and claims are charged to operations when it is probable a loss has been incurred  and the amount can be reasonably estimated. Accrued insurance liabilities are based on claims filed and  estimates of claims incurred but not reported. The Company offers a basic limited warranty for certain of its products. The specific terms and conditions  of those warranties vary depending upon the product sold. The Company typically recoups these costs  through product warranties it holds with its original equipment manufacturers. The Company’s warranty  expense has historically been minimal.  Summary of Significant Accounting Policies, continued  Other Assets and Long-Lived Assets  Accounting Estimates  Insurance Reserves  Product Warranties  2004 ANNUAL REPORT – PAGE 24 