Note 6 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 03, 2016

Goodwill and Intangible Assets Disclosure [Text Block]

Note

Goodwill and Other Intangible Assets

Goodwill balances by reportable segment as of

December

2016

and

November

28,

2015

consisted of the following:

	2016		2015
Americas Adhesives	$	59,821	$	59,705
EIMEA		98,876		100,638
Asia Pacific		17,481		17,330
Construction Products		21,901		22,668
Engineering Adhesives		168,169		153,863
Total	$	366,248	$	354,204

Additional details related to goodwill for

2016

and

2015

are as follows.

	2016			2015
Balance at beginning of year	$	354,204		$	255,972
Continental Products Limited acquisition		-			462
Tonsan Adhesive, Inc. acquisition		700			125,090
Advanced Adhesives acquisition		102			-
Cyberbond acquisition		23,654			-
Impairment		(777	)		-
Foreign currency translation effect		(11,635	)		(27,320	)
Balance at end of year	$	366,248		$	354,204

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

2016,

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. Based on the analysis performed during the

fourth

quarter of

2016,

it was determined that the goodwill allocated to the EIMEA Construction reporting unit was impaired. As a result, a goodwill impairment charge of

$777

was recorded as of

2016.

There were no indications of impairment for any of the remaining reporting units. See Note

for further information on our impairment analysis.

Balances of amortizable identifiable intangible assets, excluding goodwill and other non-amortizable intangible assets, are as follows:

Amortizable Intangible Assets	Purchased Technology & Patents			Customer Relationships			All Other			Total
As of December 3, 2016
Original cost	$	70,504		$	251,329		$	51,116		$	372,949
Accumulated amortization		(21,448	)		(116,411	)		(30,198	)		(168,057	)
Net identifiable intangibles	$	49,056		$	134,918		$	20,918		$	204,892
Weighted-average useful lives (in years)		10			17			12			15

As of November 28, 2015
Original cost	$	69,792		$	234,995		$	49,563		$	354,350
Accumulated amortization		(17,613	)		(99,405	)		(24,801	)		(141,819	)
Net identifiable intangibles	$	52,179		$	135,590		$	24,762		$	212,531
Weighted-average useful lives (in years)		10			17			13			15

Amortization expense with respect to amortizable intangible assets was

$28,495,

$26,984

and

$23,240

2016,

2015

and

2014,

respectively.

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		2017				2018				2019				2020				2021				Thereafter
Amortization Expense		$	27,923			$	27,490			$	25,861			$	22,885			$	21,297			$	79,436

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

December

2016

and

November

28,

2015

were

$467

and

$462,

respectively, and relate to trademarks and trade names. The change in non-amortizable assets in

2016

compared to

2015

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.

+ References + Details