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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 03, 2011

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets Disclosure

Note 6: Goodwill and Other Intangible Assets

The operating segment goodwill balances as of December 3, 2011 and November 27, 2010, follows. Changes in the goodwill balances relate to changes in allocations, foreign currency exchange rates and activity from acquisitions. See Note 2 to the Consolidated Financial Statements for more information on acquisitions.

		2011		2010
North America Adhesives		$	27,476	$	25,322
Construction Products			13,337		13,337
EIMEA			47,871		45,169
Latin America Adhesives			5,481		5,051
Asia Pacific			20,730		20,091
	Total	$	114,895	$	108,970

Additional details on the goodwill balance for 2011 and 2010 follow.

		2011		2010
Balance at beginning of year		$	108,970	$	103,731
	Liquamelt Corp. acquisition (Note 2)		4,882		-
	Revertex Finewaters acquisition (Note 2)		-		12,289
	Nordic Adhesive acquisition/earn-out (Note 2)		-		805
	Currency effect		1,043		(7,855)
Balance at end of year		$	114,895	$	108,970

In accordance with accounting standards, we test each of our reporting units for goodwill impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. Our analysis in the fourth quarter of 2011 indicated that there was no goodwill impairment.

In both the North America Adhesives and EIMEA operating segments, the calculated fair value exceeded the carrying value of the net assets by a significant margin. The calculated fair value of the Asia Pacific, the Latin America Adhesives and the Construction Products operating segments all exceeded the carrying value of the net assets by a reasonable margin.

See Note 1 to the Consolidated Financial Statements for further information of our impairment analysis.

Balances of amortizable identifiable intangible assets, excluding goodwill and other non-amortizable intangible assets, follow:

Amortizable Intangible Assets		Purchased Technology & Patents		Customer Relationships		All Other		Total
As of December 3, 2011
Original cost	$	10,860	$	159,351	$	17,262	$	187,473
Accumulated amortization		(2,932)		(50,986)		(7,429)		(61,347)
Net identifiable intangibles	$	7,928	$	108,365	$	9,833	$	126,126
Weighted average useful lives (in years)		12		19		15		18

As of November 27, 2010
Original cost	$	10,008	$	156,570	$	16,573	$	183,151
Accumulated amortization		(3,174)		(42,975)		(6,385)		(52,534)
Net identifiable intangibles	$	6,834	$	113,595	$	10,188	$	130,617
Weighted average useful lives (in years)		12		19		15		18

Amortization expense with respect to amortizable intangible assets was $10,162, $10,839 and $12,038 in 2011, 2010 and 2009, respectively.

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

Fiscal Year			2012			2013			2014			2015			2016		Thereafter
Amortization Expense		$	10,107		$	10,011		$	9,920		$	9,673		$	9,578		$	76,837

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 at December 3, 2011 and November 27, 2010 totaling $584 and $900, respectively, relate to the trademarks / trade names. The change in non-amortizable assets in 2011 compared to 2010 was due to changes in currency exchange rates and an impairment charge of $332. See Note 5 to the Consolidated Financial Statements for more information.

- 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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