Note 6 - Goodwill and Other Intangible Assets

12 Months Ended

Nov. 28, 2015

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6: Goodwill and Other Intangible Assets

Goodwill balances by reporting unit as of November 28, 2015 and November 29, 2014 consisted of the following:

	2015		2014
Americas Adhesives	$	67,123	$	71,325
EIMEA		122,641		139,666
Asia Pacific		143,660		24,201
Construction Products		20,780		20,780
Total	$	354,204	$	255,972

Additional details related to goodwill for 2015 and 2014 are as follows:

	2015			2014
Balance at beginning of year	$	255,972		$	263,103
Continental Products Limited acquisition		462			-
Tonsan Adhesive, Inc. acquisition		125,090			-
ProSpec acquisition		-			7,443
Plexbond Quimica, S.A. acquisition		-			151
Foreign currency translation effect		(27,320	)		(14,725	)
Balance at end of year	$	354,204		$	255,972

Changes in the goodwill balances relate to changes in foreign currency exchange rates and activity from acquisitions. See Note 2 for more information on acquisitions.

In accordance with accounting standards, we test each of our reporting units for goodwill impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. In the fourth quarter of 2015, we conducted the required annual test of goodwill for impairment. We performed the goodwill impairment analysis on our reporting units by using a discount rate determined by management to result in the most representative fair value of the business as a whole. There were no indications of impairment in any of our reporting units. We also performed a sensitivity analysis by using a discount rate at the high end of our range to confirm the reasonableness of our goodwill impairment analysis. No indications of impairment in any of our reporting units were indicated by the sensitivity analysis. See Note 1 for further information on our impairment analysis.

Balances of amortizable identifiable intangible assets, excluding goodwill and other non-amortizable intangible assets, are as follows:

Amortizable Intangible Assets	Purchased Technology & Patents			Customer Relationships			All Other			Total
As of November 28, 2015
Original cost	$	69,792		$	234,995		$	49,563		$	354,350
Accumulated amortization		(17,613	)		(99,405	)		(24,801	)		(141,819	)
Net identifiable intangibles	$	52,179		$	135,590		$	24,762		$	212,531
Weighted-average useful lives (in years)		10			17			13			15

As of November 29, 2014
Original cost	$	43,915		$	219,517		$	52,529		$	315,961
Accumulated amortization		(11,944	)		(88,164	)		(20,458	)		(120,566	)
Net identifiable intangibles	$	31,971		$	131,353		$	32,071		$	195,395
Weighted-average useful lives (in years)		11			18			12			16

Amortization expense with respect to amortizable intangible assets was $26,984, $23,240 and $22,508 in 2015, 2014 and 2013, respectively.

Estimated aggregate amortization expense based on the current carrying value of amortizable intangible assets for the next five fiscal years are as follows:

Fiscal Year		2016				2017				2018				2019				2020				Thereafter
Amortization Expense		$	25,419			$	25,057			$	24,664			$	22,740			$	21,769			$	92,882

The above amortization expense forecast is an estimate. Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions, potential impairment, accelerated amortization, or other events.

Non-amortizable intangible assets at November 28, 2015 and November 29, 2014 totaling $462 and $543, respectively, relate to trademarks and trade names. The change in non-amortizable assets in 2015 compared to 2014 was due to changes in currency exchange rates.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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