Note

Goodwill and Other Intangible Assets

Goodwill balances by reportable segment as of

December 1, 2018

and

December 2, 2017

consisted of the following:

	2018		2017
Americas Adhesives	$	370,443	$	373,328
EIMEA		184,714		177,464
Asia Pacific		21,428		21,514
Construction Adhesives		309,924		324,860
Engineering Adhesives		418,662		439,518
Total	$	1,305,171	$	1,336,684

Additional details related to goodwill for

2018

and

2017

are as follows.

	2018			2017
Balance at beginning of year	$	1,336,684		$	366,248
Adecol acquisition		(1,881	)		23,282
Royal Adhesives acquisition		1,730			866,013
Wisdom acquisition		-			59,826
Foreign currency translation effect		(31,362	)		21,315
Balance at end of year	$	1,305,171		$	1,336,684

We evaluate our goodwill for impairment annually as of the end of our

third

quarter or earlier upon the occurrence of substantive unfavorable changes in economic conditions, industry trends, costs, cash flows, or ongoing declines in market capitalization. For fiscal

2018,

we performed an initial quantitative goodwill impairment test as of the end of the

third

quarter which resulted in

indicators of impairment for any of our reporting units. However, upon the decrease of our stock price and management’s reassessment of its long-term business plan during the

fourth

quarter of

2018,

we updated our quantitative goodwill impairment test as of

December 1,

2018.

The quantitative impairment test requires judgment, including the identification of reporting units, the assignment of assets, liabilities and goodwill to reporting units, and the determination of fair value of each reporting unit. The impairment test requires the comparison of the fair value of each reporting unit with its carrying amount, including goodwill. In performing the impairment test, we determined the fair value of our reporting units by using DCF analyses. Determining fair value requires the Company to make judgments about appropriate discount rates, perpetual growth rates and the amount and timing of expected future cash flows. The cash flows employed in the DCF analysis for each reporting unit are based on the reporting unit's budget, long-term business plan, and recent operating performance. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting unit and market conditions. Based on the analysis performed during the

fourth

quarter of

2018,

there were

indications of impairment for any of our remaining reporting units.

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

Amortizable Intangible Assets	Purchased Technology and Patents			Customer Relationships			Tradenames			All Other			Total
As of December 1, 2018
Original cost	$	118,930		$	953,929		$	65,975		$	33,550		$	1,172,384
Accumulated amortization		(41,503	)		(175,318	)		(21,573	)		(26,332	)		(264,726	)
Net identifiable intangibles	$	77,427		$	778,611		$	44,402		$	7,218		$	907,658
Weighted-average useful lives (in years)		12			17			14			9			17

As of December 2, 2017
Original cost	$	132,495		$	968,060		$	76,159		$	34,417		$	1,211,131
Accumulated amortization		(27,478	)		(144,964	)		(14,688	)		(22,729	)		(209,859	)
Net identifiable intangibles	$	105,017		$	823,096		$	61,471		$	11,688		$	1,001,272
Weighted-average useful lives (in years)		12			18			14			9			17

Amortization expense with respect to amortizable intangible assets was

$76,490,

$36,243

and

$28,495

2018,

2017

and

2016,

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		2019				2020				2021				2022				2023				Thereafter
Amortization Expense		$	75,938			$	71,751			$	70,360			$	69,042			$	66,465			$	554,096

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 as of

December 1, 2018

and

December 2, 2017

were

$493

and

$520,

respectively, and relate to trademarks and trade names. The change in non-amortizable assets in

2018

compared to

2017

was due to changes in currency exchange rates.