Goodwill and Purchased and Other Intangibles

12 Months Ended

Dec. 01, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND PURCHASED AND OTHER INTANGIBLES

Goodwill by reportable segment and activity for the years ended December 1, 2017 and December 2, 2016 was as follows (in thousands):



	2015		Acquisitions		Other⁽¹⁾		2016		Acquisitions		Other⁽¹⁾		2017
Digital Media	$	2,796,302	$	—	$	288	$	2,796,590	$	—	$	4,501	$	2,801,091
Digital Marketing	2,312,158		35,802		3,502		2,351,462		348,352		62,232		2,762,046
Print and Publishing	258,421		—		1		258,422		—		2		258,424
Goodwill	$	5,366,881	$	35,802	$	3,791	$	5,406,474	$	348,352	$	66,735	$	5,821,561

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⁽¹⁾	Amounts primarily consist of foreign currency translation adjustments.

Purchased and other intangible assets by reportable segment as of December 1, 2017 and December 2, 2016 were as follows (in thousands):



	2017		2016
Digital Media	$	128,243	$	203,570
Digital Marketing	257,408		210,823
Print and Publishing	7		12
Purchased and other intangible assets, net	$	385,658	$	414,405

Purchased and other intangible assets subject to amortization as of December 1, 2017 and December 2, 2016 were as follows (in thousands):



	2017							2016
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Purchased technology	$	223,252	$	(110,433	)	$	112,819	$	149,253	$	(82,091	)	$	67,162
Customer contracts and relationships	$	577,484	$	(356,613	)	$	220,871	$	541,366	$	(274,380	)	$	266,986
Trademarks	76,255		(56,094		)	20,161		76,355		(46,846		)	29,509
Acquired rights to use technology	71,130		(54,223		)	16,907		87,403		(60,929		)	26,474
Localization	603		(170		)	433		631		(177		)	454
Other intangibles	38,693		(24,226		)	14,467		38,693		(14,873		)	23,820
Total other intangible assets	$	764,165	$	(491,326	)	$	272,839	$	744,448	$	(397,205	)	$	347,243
Purchased and other intangible assets, net	$	987,417	$	(601,759	)	$	385,658	$	893,701	$	(479,296	)	$	414,405

In fiscal 2017, certain purchased intangibles associated with our acquisitions in prior years and certain other acquired rights to use technology became fully amortized and were removed from the Consolidated Balance Sheets. In fiscal 2016, purchased intangibles associated with our acquisition of EchoSign and certain other acquired rights to use technology became fully amortized and were removed from the Consolidated Balance Sheets.

Amortization expense related to purchased and other intangible assets was $153.6 million, $152.4 million, and $174.5 million for fiscal 2017, 2016 and 2015 respectively. Of these amounts, $76.1 million, $71.1 million, and $104.4 million were included in cost of sales for fiscal 2017, 2016 and 2015 respectively.

Purchased and other intangible assets are amortized over their estimated useful lives of 1 to 14 years. As of December 1, 2017, we expect amortization expense in future periods to be as follows (in thousands):



Fiscal Year	Purchased Technology		Other Intangible Assets
2018	$	37,984	$	97,726
2019	34,404		69,733
2020	32,111		39,658
2021	7,203		17,304
2022	1,117		14,297
Thereafter	—		34,121
Total expected amortization expense	$	112,819	$	272,839

- 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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