Note 5 - Goodwill and Other Intangible Assets

9 Months Ended

Aug. 31, 2024

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5: Goodwill and Other Intangible Assets

The goodwill activity by reportable segment for the nine months ended August 31, 2024 is presented below:

	Hygiene, Health
	and Consumable		Engineering		Construction
	Adhesives		Adhesives		Adhesives		Total
Balance at December 2, 2023	$	402,598	$	651,145	$	432,769	$	1,486,512
Acquisitions		1,674		83,859		7,654		93,187
Foreign currency translation effect		4,131		6,938		941		12,010
Balance at August 31, 2024	$	408,403	$	741,942	$	441,364	$	1,591,709

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

	August 31, 2024
	Purchased
	Technology			Customer
Amortizable Intangible Assets	and Patents			Relationships			Trade Names			Other			Total
Original cost	$	146,315		$	1,073,123		$	68,851		$	10,094		$	1,298,383
Accumulated amortization		(53,478	)		(404,711	)		(27,731	)		(6,797	)		(492,717	)
Net identifiable intangibles	$	92,837		$	668,412		$	41,120		$	3,297		$	805,666

	December 2, 2023
	Purchased
	Technology			Customer
Amortizable Intangible Assets	and Patents			Relationships			Trade Names			Other			Total
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

Amortization expense with respect to amortizable intangible assets was $22,149 and $20,820 for the three months ended August 31, 2024 and September 2, 2023, respectively, and was $61,723 and $58,633 for the nine months ended August 31, 2024 and September 2, 2023. 

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

	Remainder
Fiscal Year	2024		2025		2026		2027		2028		Thereafter
Amortization expense	$	18,564	$	88,100	$	81,291	$	77,938	$	77,666	$	462,103

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  August 31, 2024 and December 2, 2023 were $482 and $474, respectively, and relate to trademarks and trade names. The change in non-amortizable assets as of August 31, 2024 compared to December 2, 2023 was due to changes in foreign currency exchange rates.