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are recorded at cost and are amortized over their respective estimated useful lives, and are reviewed for impairment in ac- cordance with SFAS No. 144 , “Accounting for the Impairment or Disposal of Long-Lived Assets” (see Note 5  to the Con- solidated Financial Statements). 

We are required to make judgments regarding the useful life of our intangible assets. With the implementation of SFAS 142 , we determined certain intangible assets to have indefinite lives based upon our analysis of the requirements of SFAS No. 141 , “Business Combinations” (“SFAS 141 ”) and SFAS 142 . Under the provisions of SFAS 142 , we are required to test these assets for impairment at least annually. The annual impairment tests have been completed and did not result in an impairment charge. To the extent an impairment is identified in the future, we will record the amount of the impairment as an operating expense in the period in which it is identified. 

In connection with a registration statement we filed in October 2003 , the Staff of the Securities and Exchange Com- mission commented on and sought additional support for the indefinite life designation of our trade names, marketing rights and distributor network assets. Based on our assessment in responding to these comments, we recorded the following in the second quarter of 2004 : (i) a one-time amortization charge of $ 1 . 2  million resulting from retroactive changes in the estimates of the useful lives of certain intangible assets, which included the assignment of useful lives to our distributor network and certain trademarks and trade names that were previously designated as indefinite lived assets; (ii) an entry to reduce intan- gible assets and retained earnings by approximately $ 8 . 8  million to reflect a reduction in the carrying amount of the mar- keting rights previously purchased from a group of controlling shareholders to its carryover basis; and (iii) an entry to reclassify approximately $ 7 . 4  million from goodwill to distributor network and trade names and trademarks to retroac- tively reflect intangible assets acquired. 

As a result of these changes we recorded an additional $ 0 . 9  million of amortization related to these assets during the remainder of 2004  and will continue to recognize an additional $ 1 . 2  million of such amortization per year through the remainder of the useful lives, which approximate 11  years as of December 31 , 2004. 

## RESULTS OF OPERATIONS 

The following table sets forth our operating results as a percentage of revenue for the periods indicated: 

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