Intangible Assets and Goodwill

12 Months Ended

Nov. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible Assets

Intangible assets are comprised of the following significant classes (in thousands):

	November 30, 2020						November 30, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Book Value		Gross Carrying Amount		Accumulated Amortization		Net Book Value
Purchased technology	$	173,486	$	(113,863)	$	59,623	$	135,186	$	(105,967)	$	29,219
Customer-related	231,342		(91,326)		140,016		134,042		(74,175)		59,867
Trademarks and trade names	30,440		(18,275)		12,165		24,740		(16,043)		8,697
Non-compete agreement	2,000		(1,057)		943		2,000		(391)		1,609
Total	$	437,268	$	(224,521)	$	212,747	$	295,968	$	(196,576)	$	99,392

We amortize intangible assets assuming no expected residual value. Amortization expense related to these intangible assets was $27.9 million, $48.1 million and $36.0 million in fiscal years 2020, 2019 and 2018, respectively.

The additions to intangible assets during fiscal years 2020 and 2019 are related to the acquisition of Chef in October 2020 and Ipswitch in April 2019, respectively (Note 7).

During the fourth quarter of fiscal year 2019, we evaluated the ongoing value of the intangible assets associated with the technology obtained in connection with the acquisitions of DataRPM and Kinvey. As a result of our decision to reduce our current and ongoing spending levels within our cognitive application product lines, which consist primarily of our DataRPM and Kinvey products, we determined that the intangible assets were fully impaired and incurred an impairment charge of $22.7 million (Note 4).

Future amortization expense for intangible assets as of November 30, 2020 is as follows (in thousands):

2021	$	44,890
2022	44,836
2023	44,560
2024	31,744
2025	21,233
Thereafter	25,484
Total	$	212,747

Goodwill

Changes in the carrying amount of goodwill for fiscal years 2020 and 2019 are as follows (in thousands):

	November 30, 2020		November 30, 2019
Balance, beginning of year	$	432,824	$	314,992
Measurement Period Adjustments(1)	(838)		—
Additions(2)	59,858		117,871
Translation Adjustments	(118)		(39)
Balance, end of year	$	491,726	$	432,824

(1) Represents final measurement period adjustments related to our Ipswitch acquisition (Note 7).

(2) The additions to goodwill during fiscal years 2020 and 2019 are related to the acquisition of Chef in October 2020 and Ipswitch in April 2019, respectively (Note 7).

Changes in the carrying amount of goodwill by reportable segment for fiscal year 2020 are as follows (in thousands):

	November 30, 2019		Measurement Period Adjustments		Additions		Translation Adjustments		November 30, 2020
OpenEdge	$	366,819	$	(838)	$	—	$	(118)	$	365,863
Data Connectivity and Integration	19,040		—		—		—		19,040
Application Development and Deployment	46,965		—		59,858		—		106,823
Total goodwill	$	432,824	$	(838)	$	59,858	$	(118)	$	491,726

We assess the impairment of goodwill on an annual basis and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

During fiscal year 2020, we tested goodwill for impairment for each of our reporting units as of October 31, 2020. Our reporting units each had fair values which significantly exceeded their carrying values as of the annual impairment date. We did not recognize any goodwill impairment charges during fiscal years 2020, 2019 or 2018.