Note 5 - Goodwill and Other Intangible Assets

12 Months Ended

Nov. 30, 2024

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 2, 2023	$	402,598		$	651,145		$	432,769		$	1,486,512
Acquisitions		1,674			81,268			5,813			88,755
Impairment		-			-			(32,079	)		(32,079	)
Foreign currency translation effect		(4,759	)		(5,733	)		(475	)		(10,967	)
As of November 30, 2024	$	399,513		$	726,680		$	406,028		$	1,532,221

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 2024, 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 November 30, 2024
Original cost	$	145,313		$	1,063,210		$	67,280		$	10,031		$	1,285,834
Impairment		(343	)		(5,616	)		(150	)		-			(6,109	)
Accumulated amortization		(55,398	)		(418,805	)		(28,745	)		(7,012	)		(509,960	)
Net identifiable intangibles	$	89,572		$	638,789		$	38,385		$	3,019		$	769,765
Weighted-average useful lives (in years)		13			16			13			13			16
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

Amortization expense with respect to amortizable intangible assets was $83,656, $79,514 and $74,383 in 2024, 2023 and 2022, respectively. See Note 2 for further discussion of the impairment to assets held for sale.

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	2025		2026		2027		2028		2029		Thereafter
Amortization Expense	$	81,437	$	79,468	$	76,752	$	77,519	$	75,088	$	379,501

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 30, 2024 and December 2, 2023 were $461 and $474, respectively, and relate to trademarks and trade names. The change in non-amortizable assets in 2024 compared to 2023 was due to changes in foreign currency exchange rates.