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Goodwill and Other Intangible Assets

12 Months Ended

Nov. 30, 2013

Goodwill and Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets Disclosure

Note 7: Goodwill and Other Intangible Assets

The reporting units goodwill balances as of November 30, 2013 and December 1, 2012, follow. Changes in the goodwill balances relate to changes in foreign currency exchange rates and activity from acquisitions. See Note 2 to the Consolidated Financial Statements for more information on acquisitions.

		2013		2012
North America Adhesives		$	61,302	$	62,031
Latin America			10,815		7,041
Construction Products			13,337		13,337
EIMEA			151,675		144,824
Asia Pacific			25,974		27,112
	Total	$	263,103	$	254,345

Additional details on the goodwill balance for 2013 and 2012 follow.

		2013		2012
Balance at beginning of year		$	254,345	$	114,895
	Engent, Inc. acquisition (Note 2)		247		5,434
	Forbo Industrial Adhesives (Note 2)		343		136,658
	Plexbond Quimica, S.A. acquisition (Note 2)		3,626		-
	Foreign currency translation effect		4,542		(2,642)
Balance at end of year		$	263,103	$	254,345

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. In the fourth quarter of 2013, we conducted the required annual test of goodwill for impairment. We performed the goodwill impairment analysis on our reporting units by using a discount rate determined by management to result in the most representative fair value of the business as a whole. There were no indications of impairment in any of our reporting units. We also performed a sensitivity analysis by using a discount rate at the high end of our range to confirm the reasonableness of our goodwill impairment analysis. No indications of impairment in any of our reporting units were indicated by the sensitivity analysis.

In the North America Adhesives and EIMEA reporting units, the calculated fair value substantially exceeded the carrying value of the net assets. The calculated fair values of the Construction Products, Latin America and Asia Pacific reporting units exceeded their carrying value by approximately 70 percent, 83 percent and 38 percent, respectively. In all three of these reporting units, the calculated fair value exceeded the carrying value by a reasonable margin.

See Note 1 to the Consolidated Financial Statements for further information on 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 November 30, 2013
Original cost	$	45,710	$	231,696	$	43,780	$	321,186
Accumulated amortization		(9,706)		(77,192)		(15,480)		(102,378)
Net identifiable intangibles	$	36,004	$	154,504	$	28,300	$	218,808
Weighted-average useful lives (in years)		11		17		13		16

As of December 1, 2012
Original cost	$	43,304	$	226,478	$	42,838	$	312,620
Accumulated amortization		(5,924)		(62,727)		(11,170)		(79,821)
Net identifiable intangibles	$	37,380	$	163,751	$	31,668	$	232,799
Weighted-average useful lives (in years)		11		17		13		16

Amortization expense with respect to amortizable intangible assets was $22,508, $18,703 and $10,162 in 2013, 2012 and 2011, respectively.

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

Fiscal Year			2014			2015			2016			2017			2018		Thereafter
Amortization Expense		$	22,095		$	21,575		$	21,385		$	21,009		$	20,503		$	112,241

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 November 30, 2013 and December 1, 2012 totaling $593 and $556, respectively, relate to trademarks and trade names. The change in non-amortizable assets in 2013 compared to 2012 was due to changes in currency exchange rates.

- 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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