Note 5 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 03, 2022

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5: Goodwill and Other Intangible Assets

Goodwill balances by reportable segment consisted of the following:

	Hygiene, Health
	and Consumable			Engineering			Construction
	Adhesives			Adhesives			Adhesives			Total
As of November 27, 2021	$	325,470		$	662,021		$	311,354		$	1,298,845
TissueSeal acquisition		13,765			-			-			13,765
Fourny acquisition		-			-			6,455			6,455
Apollo acquisition		-			-			119,358			119,358
ZKLT acquisition		-			3,720			-			3,720
Foreign currency translation effect		(10,273	)		(27,831	)		(11,412	)		(49,516	)
As of December 3, 2022	$	328,962		$	637,910		$	425,755		$	1,392,627

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 2022, 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:

	Purchased
	Technology			Customer
Amortizable Intangible Assets	and Patents			Relationships			Tradename			All Other			Total
As of December 3, 2022
Original cost	$	118,727		$	1,004,008		$	50,324		$	11,053		$	1,184,112
Accumulated amortization		(66,433	)		(388,394	)		(21,401	)		(6,251	)		(482,479	)
Net identifiable intangibles	$	52,294		$	615,614		$	28,923		$	4,802		$	701,633
Weighted-average useful lives (in years)		13			17			13			13			16
As of November 27, 2021
Original cost	$	115,980		$	932,644		$	63,543		$	11,343		$	1,123,510
Accumulated amortization		(62,364	)		(335,143	)		(33,786	)		(5,635	)		(436,928	)
Net identifiable intangibles	$	53,616		$	597,501		$	29,757		$	5,708		$	686,582
Weighted-average useful lives (in years)		13			17			14			12			17

Amortization expense with respect to amortizable intangible assets was $74,383, $71,068 and $70,591 in 2022, 2021 and 2020, 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	2023	2024	2025	2026	2027	Thereafter
Amortization Expense	$75,151	$69,611	$67,091	$60,396	$57,201	$372,183

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 3, 2022 and November 27, 2021 were $459 and $493, respectively, and relate to trademarks and trade names. The change in non-amortizable assets in 2022 compared to 2021 was due to changes in foreign currency exchange rates.