Note 5 - Goodwill and Other Intangible Assets

12 Months Ended

Nov. 28, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5: Goodwill and Other Intangible Assets

Goodwill balances by reportable segment as of November 28, 2020 and November 30, 2019 consisted of the following:

	2020		2019
Hygiene, Health and Consumable Adhesives	$	332,909	$	321,274
Engineering Adhesives		667,863		649,555
Construction Adhesives		311,231		310,979
Total	$	1,312,003	$	1,281,808

Additional details related to goodwill for 2020 and 2019 are as follows:

	2020			2019
Balance at beginning of year	$	1,281,808		$	1,305,171
Ramapo acquisition		(746	)		910
D.H.M acquisition		1,063			-
Dalton Holdings divestiture		-			(15,757	)
Foreign currency translation effect		29,878			(8,516	)
Balance at end of year	$	1,312,003		$	1,281,808

We evaluate our goodwill for impairment annually at the beginning of the fourth quarter or earlier upon the occurrence of substantive unfavorable changes in economic conditions, industry trends, costs, cash flows, or ongoing declines in market capitalization. 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 through the income approach 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 2020, there were no indications of impairment for any of our 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			Tradename			All Other			Total
As of November 28, 2020
Original cost	$	113,775		$	933,943		$	63,266		$	11,410		$	1,122,394
Accumulated amortization		(53,216	)		(279,586	)		(29,368	)		(4,775	)		(366,945	)
Net identifiable intangibles	$	60,559		$	654,357		$	33,898		$	6,635		$	755,449
Weighted-average useful lives (in years)		13			17			14			12			17
As of November 30, 2019
Original cost	$	109,967		$	913,968		$	62,537		$	27,453		$	1,113,925
Accumulated amortization		(43,351	)		(223,563	)		(24,819	)		(23,273	)		(315,006	)
Net identifiable intangibles	$	66,616		$	690,405		$	37,718		$	4,180		$	798,919
Weighted-average useful lives (in years)		13			17			14			10			17

Amortization expense with respect to amortizable intangible assets was $70,591, $74,091 and $76,490 in 2020, 2019 and 2018, 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	2021		2022		2023		2024		2025		Thereafter
Amortization Expense	$	70,673	$	68,783	$	65,854	$	60,825	$	58,199	$	431,115

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 November 28, 2020 and November 30, 2019 were $519 and $480, respectively, and relate to trademarks and trade names. The change in non-amortizable assets in 2020 compared to 2019 was due to changes in foreign currency exchange rates.