NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. Goodwill 5. Other Intangible Assets Goodwill represents the excess of the purchase price over the fair market value of identifiable net assets acquired in business combinations. The Company adopted SFAS No. 142 in January 2002. SFAS 142 pro- vides that goodwill and certain other intangible assets no longer will be amortized for fiscal years beginning after December 15, 2001 but will be tested for impairment at least annually. The Company measures goodwill impairment by comparing the carrying value of its operating units, including goodwill, with the fair value of the operating unit measured by determining the present value of future cash flows. Significant declines in estimat- ed future cash flows could indicate potential impairment and trigger an impairment assessment. At December 31, 2002, the Company had unamortized goodwill in the amount of $36,093,277. Amortization expense related to goodwill was $2,154,000 and $2,033,000 for the years ended December 31, 2001 and 2000, respectively. The following table presents the Company’s net income assuming goodwill had not been amortized during the twelve months ended December 31, 2001 and December 31, 2000. Amortization expense for other intangible assets was $110,236, $0 and $0, for 2002, 2001 and 2000, respectively. Other intangible assets consisted of the following at December 31, 2002: The changes in the carrying amount of goodwill by operating segment for the years ended December 31, 2002 and December 31, 2001 are as follows: Net income (loss), as reported $ (4,705,926) $ 1,992,442 $ 26,281,086 Add goodwill amortization, net of taxes 1,335,000 1,260,000 Adjusted net income (loss) $ (4,705,926) $ 3,327,442 $ 27,541,086 Basic earnings (loss) per share, as reported $ (0.24) $ 0.10 $ 1.37 Add goodwill amortization, net of taxes 0.07 0.07 Adjusted basic earnings (loss) per share $ (0.24) $ 0.17 $ 1.44 Diluted earnings (loss) per share, as reported $ (0.24) $ 0.10 $ 1.33 Add goodwill amortization, net of taxes 0.07 0.06 Adjusted diluted earnings (loss) per share $ (0.24) $ 0.17 $ 1.39 2002 2001 2000 Year ended December 31, Aggregate Mobile Asphalt Asphalt and Mining Paving Underground Group Group Group Group Total Balance December 31, 2000 $ 1,459,446 $ 18,812,916 $ 4,419,341 $ 12,516,221 $ 37,207,924 Amortization (101,280) (1,096,032) (224,359) (731,867) (2,153,538) Goodwill acquired during the year 728,138 728,138 Purchase price adjustments 582,293 (199,959) (49,875) 332,459 Balance December 31, 2001 $ 2,086,304 $ 18,299,177 $ 3,995,023 $ 11,734,479 $ 36,114,983 Purchase price adjustments 16,926 (38,632) (21,706) Balance December 31, 2002 $ 2,086,304 $ 18,316,103 $ 3,956,391 $ 11,734,479 $ 36,093,277 Gross Net Weighted Avg. Carrying Accumulated Carrying Amortization Value Amortization Value Period Dealer network and customer base $ 820,000 $ (45,197) $ 774,803 10 years Drawings 820,000 (45,197) 774,803 10 years Trademarks 336,000 (18,520) 317,480 3 years Patents 24,000 (1,322) 22,678 2 years Total $2,000,000 $ (110,236) $1,889,776 9 years