Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND ACQUIRED INTANGIBLE ASSETS

The following table reconciles the activity for goodwill by segment for fiscal years 2016 and 2015. All goodwill is stated on a gross basis, as the Company has not recorded any impairment charges against goodwill.



	Engine/Mobile Filtration			Industrial/ Environmental Filtration			Corporate		Total
November 30, 2014	$	216,114		$	291,058		$	—	$	507,172
Acquisitions	(7,377		)	11,938			—		4,561
Disposals and write-offs	—			(491		)	—		(491		)
Currency translation adjustments	(1,200		)	(3,777		)	—		(4,977		)
November 30, 2015	$	207,537		$	298,728		$	—	$	506,265
Acquisitions and purchase accounting adjustments	—			3,604			3,895		7,499
Currency translation adjustments	(990		)	(9,866		)	—		(10,856		)
November 30, 2016	$	206,547		$	292,466		$	3,895	$	502,908

The Company completed an annual impairment review at each fiscal year-end and concluded there was no impairment of goodwill. In performing the impairment reviews, the Company estimated the fair values of the reporting units using a present value method that discounted future cash flows. Such valuations are sensitive to assumptions associated with cash flow growth, discount rates, terminal value and the aggregation of reporting unit components. The Company further assessed the reasonableness of these estimates by considering relevant market multiples.

In the third quarter of fiscal 2015, the Company exited certain international operations related to its HVAC air filtration business, which operations had not been integrated into the Company's broader industrial air filtration business. Pursuant to this exit, the Company wrote-off $491 of related goodwill.

The following table summarizes acquired intangible assets by segment. Other acquired intangible assets include parts manufacturer regulatory approvals, developed technology, patents and noncompete agreements.



	Engine/Mobile Filtration			Industrial/ Environmental Filtration			Corporate		Total
November 30, 2016
Indefinite Lived Intangibles:
Trademarks - indefinite lived	$	783		$	73,149		$	—	$	73,932
Other acquired intangibles, gross	—			—			5,000		5,000
Total indefinite lived intangible assets	$	783		$	73,149		$	5,000	$	78,932

Finite Lived Intangibles:
Trademarks - finite lived, gross	$	274		$	568		$	—	$	842
Accumulated amortization	(145		)	(449		)	—		(594		)
Trademarks - finite lived, net	$	129		$	119		$	—	$	248

Customer relationships, gross	$	139,381		$	125,815		$	—	$	265,196
Accumulated amortization	(29,244		)	(48,500		)	—		(77,744		)
Customer relationships, net	$	110,137		$	77,315		$	—	$	187,452

Other acquired intangibles, gross	$	11,243		$	59,832		$	—	$	71,075
Accumulated amortization	(3,085		)	(31,721		)	—		(34,806		)
Other acquired intangibles, net	$	8,158		$	28,111		$	—	$	36,269

Total finite lived intangible assets, net	$	118,424		$	105,545		$	—	$	223,969
Acquired intangible assets, less accumulated amortization	$	119,207		$	178,694		$	5,000	$	302,901



	Engine/Mobile Filtration			Industrial/ Environmental Filtration			Corporate		Total
November 30, 2015
Indefinite Lived Intangibles:
Trademarks - indefinite lived	$	783		$	74,779		$	—	$	75,562
Other acquired intangibles, gross	—			—			—		—
Total indefinite lived intangible assets	$	783		$	74,779		$	—	$	75,562

Finite Lived Intangibles:
Trademarks - finite lived, gross	$	274		$	568		$	—	$	842
Accumulated amortization	(132		)	(435		)	—		(567		)
Trademarks - finite lived, net	$	142		$	133		$	—	$	275

Customer relationships, gross	$	139,476		$	130,032		$	—	$	269,508
Accumulated amortization	(18,680		)	(38,975		)	—		(57,655		)
Customer relationships, net	$	120,796		$	91,057		$	—	$	211,853

Other acquired intangibles, gross	$	11,243		$	60,565		$	—	$	71,808
Accumulated amortization	(1,985		)	(28,358		)	—		(30,343		)
Other acquired intangibles, net	$	9,258		$	32,207		$	—	$	41,465

Total finite lived intangible assets, net	$	130,196		$	123,397		$	—	$	253,593
Acquired intangible assets, less accumulated amortization	$	130,979		$	198,176		$	—	$	329,155

The Company performed annual impairment tests on its indefinite-lived intangible assets at each fiscal year-end using the relief-from-royalty method to determine the fair value of its trademarks and trade names. There was no impairment as the fair value was greater than the carrying value for these indefinite-lived intangible assets as of these dates. In addition, the Company reassessed the useful lives and classification of identifiable finite-lived intangible assets at each year-end and determined that they continue to be appropriate.

The following tables summarize actual amortization expense for the past three fiscal years and estimated amortization expense for the next five fiscal years.



Amortization expense for the fiscal years ended:
2016	$	24,580
2015	25,528
2014	20,362



Estimated amortization expense for the next five fiscal years:
2017	$	24,327
2018	23,747
2019	23,528
2020	23,249
2021	23,092

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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