Note 5 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 02, 2023

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 December 3, 2022	$	328,962	$	637,910	$	425,755	$	1,392,627
Acquisitions		67,523		5,983		6,179		79,685
Foreign currency translation effect		6,113		7,252		835		14,200
As of December 2, 2023	$	402,598	$	651,145	$	432,769	$	1,486,512

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 2023, 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 2, 2023
Original cost	$	144,763		$	986,470		$	58,484		$	10,911		$	1,200,628
Accumulated amortization		(59,631	)		(382,220	)		(23,099	)		(7,012	)		(471,962	)
Net identifiable intangibles	$	85,132		$	604,250		$	35,385		$	3,899		$	728,666
Weighted-average useful lives (in years)		13			16			13			13			16
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

Amortization expense with respect to amortizable intangible assets was $79,514, $74,383 and $71,068 in 2023, 2022 and 2021, 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	2024	2025	2026	2027	2028	Thereafter
Amortization Expense	$77,288	$77,678	$70,957	$67,652	$67,356	$367,735

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 2, 2023 and December 3, 2022 were $474 and $459, respectively, and relate to trademarks and trade names. The change in non-amortizable assets in 2023 compared to 2022 was due to changes in foreign currency exchange rates.