Note 5 - Goodwill and Other Intangible Assets

12 Months Ended

Nov. 27, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5: Goodwill and Other Intangible Assets

Goodwill balances by reportable segment as of  November 27, 2021 and November 28, 2020 consisted of the following:

	2021		2020
Hygiene, Health and Consumable Adhesives	$	325,470	$	332,909
Engineering Adhesives		662,021		667,863
Construction Adhesives		311,354		311,231
Total	$	1,298,845	$	1,312,003

Additional details related to goodwill for 2021 and 2020 are as follows:

	2021			2020
Balance at beginning of year	$	1,312,003		$	1,281,808
Ramapo acquisition		-			(746	)
D.H.M acquisition		-			1,063
Foreign currency translation effect		(13,158	)		29,878
Balance at end of year	$	1,298,845		$	1,312,003

We evaluate our goodwill for impairment annually at the beginning of the fourth quarter or earlier upon the occurrence of substantive unfavorable changes in economic conditions, industry trends, costs, cash flows, or ongoing declines in market capitalization. The quantitative impairment test requires judgment, including the identification of reporting units, the assignment of assets, liabilities and goodwill to reporting units, and the determination of fair value of each reporting unit. The impairment test requires the comparison of the fair value of each reporting unit with its carrying amount, including goodwill. In performing the impairment test, we determined the fair value of our reporting units through the income approach by using DCF analyses. Determining fair value requires the company to make judgments about appropriate discount rates, perpetual growth rates and the amount and timing of expected future cash flows. The cash flows employed in the DCF analysis for each reporting unit are based on the reporting unit's budget, long-term business plan, and recent operating performance. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting unit and market conditions. Based on the analysis performed during the fourth quarter of 2021, there were no indications of impairment for any of our reporting units.

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

	Purchased
	Technology			Customer
Amortizable Intangible Assets	and Patents			Relationships			Tradename			All Other			Total
As of November 27, 2021
Original cost	$	115,980		$	932,644		$	63,543		$	11,343		$	1,123,510
Accumulated amortization		(62,364	)		(335,143	)		(33,786	)		(5,635	)		(436,928	)
Net identifiable intangibles	$	53,616		$	597,501		$	29,757		$	5,708		$	686,582
Weighted-average useful lives (in years)		13			17			14			12			17
As of November 28, 2020
Original cost	$	113,775		$	933,943		$	63,266		$	11,410		$	1,122,394
Accumulated amortization		(53,216	)		(279,586	)		(29,368	)		(4,775	)	$	(366,945	)
Net identifiable intangibles	$	60,559		$	654,357		$	33,898		$	6,635		$	755,449
Weighted-average useful lives (in years)		13			17			14			12			17

Amortization expense with respect to amortizable intangible assets was $71,068, $70,591 and $74,091 in 2021, 2020 and 2019, 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	2022		2023		2024		2025		2026		Thereafter
Amortization Expense	$	68,879	$	66,056	$	61,146	$	58,578	$	51,773	$	380,150

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  November 27, 2021 and November 28, 2020 were $493 and $519, respectively, and relate to trademarks and trade names. The change in non-amortizable assets in 2021 compared to 2020 was due to changes in foreign currency exchange rates.