text: During December 1998, the Company re p u rchased notes with a face value of DM 26.4 million and 31,173 warrants for a total purc h a s e 
  price of $5.5 million. This re p u rchase was accounted for as an extinguishment of debt with a resulting $2.9 million (net of income taxes of 
  $1.5 million) recognized as an extraord i n a ry gain on such extinguishment. The extinguishment gain (pre-tax) re p resents the diff e re n c e 
  between the allocated carrying value of the debt extinguished ($10.2 million) and the consideration paid ($5.5 million), offset by the write- 
  o ff of the allocated unamortized deferred financing costs ($341,000). 
  
  The following table provides the composition of notes payable at December 31: 