QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Accelerated filer ¨ | Emerging growth company | |||||||
Non-accelerated filer ¨ | Smaller reporting company |
Page Number | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
Item 1. | CONSOLIDATED FINANCIAL STATEMENTS |
(Unaudited) | |||||||||||
February 26, 2023 | November 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments in marketable securities | |||||||||||
Trade receivables, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Deferred tax assets, net | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Short-term debt | |||||||||||
Accounts payable | |||||||||||
Accrued salaries, wages and employee benefits | |||||||||||
Accrued sales returns and allowances | |||||||||||
Short-term operating lease liabilities | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term operating lease liabilities | |||||||||||
Long-term employee related benefits and other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ Equity: | |||||||||||
Common stock — $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions, except per share amounts) (Unaudited) | |||||||||||
Net revenues | $ | $ | |||||||||
Cost of goods sold | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative expenses | |||||||||||
Operating income | |||||||||||
Interest expense | ( | ( | |||||||||
Other (expense) income, net | ( | ||||||||||
Income before income taxes | |||||||||||
Income tax expense | |||||||||||
Net income | $ | $ | |||||||||
Earnings per common share attributable to common stockholders: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted-average common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) (Unaudited) | |||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss), before related income taxes: | |||||||||||
Pension and postretirement benefits | |||||||||||
Derivative instruments | ( | ( | |||||||||
Foreign currency translation gains (losses) | ( | ||||||||||
Unrealized gains (losses) on marketable securities | ( | ||||||||||
Total other comprehensive income (loss), before related income taxes | ( | ||||||||||
Income tax (expense) benefit related to items of other comprehensive income (loss) | ( | ||||||||||
Comprehensive income, net of income taxes | $ | $ | |||||||||
Three Months Ended February 26, 2023 | |||||||||||||||||||||||||||||
Class A & Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | |||||||||||||||||||||||||||||
Balance at November 27, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | ||||||||||||||||||||||||||
Stock-based compensation and dividends, net | — | — | |||||||||||||||||||||||||||
Employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||
Repurchase of common stock | — | ( | — | ( | |||||||||||||||||||||||||
Tax withholdings on equity awards | — | ( | — | — | ( | ||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Balance at February 26, 2023 | $ | $ | $ | $ | ( | $ |
Three Months Ended February 27, 2022 | |||||||||||||||||||||||||||||
Class A & Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | |||||||||||||||||||||||||
(Dollars in millions) (Unaudited) | |||||||||||||||||||||||||||||
Balance at November 28, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Net Income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ( | ||||||||||||||||||||||||
Stock-based compensation and dividends, net | — | ||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||
Repurchase of common stock | — | ( | — | ( | |||||||||||||||||||||||||
Tax withholdings on equity awards | — | ( | — | — | ( | ||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Balance at February 27, 2022 | $ | $ | $ | $ | ( | $ |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) (Unaudited) | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Property, plant, equipment impairment, and early lease terminations, net | |||||||||||
Stock-based compensation | |||||||||||
(Benefit from) provision for deferred income taxes | ( | ||||||||||
Other, net | ( | ||||||||||
Net change in operating assets and liabilities | ( | ( | |||||||||
Net cash (used for) provided by operating activities | ( | ||||||||||
Cash Flows from Investing Activities: | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting | |||||||||||
Payments to acquire short-term investments | ( | ||||||||||
Proceeds from sale, maturity and collection of short-term investments | |||||||||||
Net cash used for investing activities | ( | ( | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Proceeds from senior revolving credit facility | |||||||||||
Repurchase of common stock | ( | ( | |||||||||
Tax withholdings on equity awards | ( | ( | |||||||||
Dividend to stockholders | ( | ( | |||||||||
Other financing, net | |||||||||||
Net cash provided by (used for) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | ( | ( | |||||||||
Net decrease in cash and cash equivalents and restricted cash | ( | ( | |||||||||
Beginning cash and cash equivalents, and restricted cash | |||||||||||
Ending cash and cash equivalents, and restricted cash | |||||||||||
Less: Ending restricted cash | ( | ( | |||||||||
Ending cash and cash equivalents | $ | $ | |||||||||
Noncash Investing Activity: | |||||||||||
Property, plant and equipment acquired and not yet paid at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for income taxes during the period, net of refunds |
February 26, 2023 | November 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Raw materials | $ | $ | |||||||||
Work-in-progress | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
February 26, 2023 | November 27, 2022 | ||||||||||||||||||||||||||||||||||
Fair Value Estimated Using | Fair Value Estimated Using | ||||||||||||||||||||||||||||||||||
Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Financial assets carried at fair value | |||||||||||||||||||||||||||||||||||
Rabbi trust assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Short-term investments in marketable securities | |||||||||||||||||||||||||||||||||||
Derivative instruments(3) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Financial liabilities carried at fair value | |||||||||||||||||||||||||||||||||||
Derivative instruments(3) | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
November 27, 2022 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Available for sale investments | |||||||||||||||||||||||
Short-term investments in marketable securities | $ | $ | $ | ( | $ | ||||||||||||||||||
February 26, 2023 | November 27, 2022 | ||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Financial liabilities carried at adjusted historical cost | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
February 26, 2023 | November 27, 2022 | ||||||||||||||||||||||||||||||||||
Assets | (Liabilities) | Derivative Net Carrying Value | Assets | (Liabilities) | Derivative Net Carrying Value | ||||||||||||||||||||||||||||||
Carrying Value | Carrying Value | Carrying Value | Carrying Value | ||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Foreign exchange risk cash flow hedges(1) | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Foreign exchange risk cash flow hedges(2) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Forward foreign exchange contracts(1) | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Forward foreign exchange contracts(2) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Non-derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Euro senior notes | $ | $ | ( | $ | $ | ( |
February 26, 2023 | November 27, 2022 | ||||||||||||||||||||||||||||||||||
Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet | Gross Amounts Not Offset in the Balance Sheet | Net Amounts of Assets / (Liabilities) | Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet | Gross Amounts Not Offset in the Balance Sheet | Net Amounts of Assets / (Liabilities) | ||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
Foreign exchange risk contracts and forward foreign exchange contracts | |||||||||||||||||||||||||||||||||||
Financial assets | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Financial liabilities | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Total | $ | ( | $ | ||||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in AOCL (Effective Portion) | Amount of Gain (Loss) Reclassified from AOCL into Net Income(1) | ||||||||||||||||||||||
As of February 26, 2023 | As of November 27, 2022 | Three Months Ended | |||||||||||||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Foreign exchange risk contracts | $ | $ | $ | $ | |||||||||||||||||||
Realized forward foreign exchange swaps (2) | |||||||||||||||||||||||
Yen-denominated Eurobonds | ( | ( | |||||||||||||||||||||
Euro-denominated senior notes | ( | ( | |||||||||||||||||||||
Cumulative income taxes | |||||||||||||||||||||||
Total | $ | ( | $ |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Amount of Gain (Loss) on Cash Flow Hedge Activity | |||||||||||
Net revenues | $ | $ | ( | ||||||||
Cost of goods sold | $ | $ |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Realized loss | $ | $ | ( | ||||||||
Unrealized gain | ( | ||||||||||
Total | $ | $ |
February 26, 2023 | November 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Other accrued liabilities | |||||||||||
Accrued non-trade payables | $ | $ | |||||||||
Accrued advertising and promotion | |||||||||||
Taxes other than income taxes payable | |||||||||||
Accrued property, plant and equipment | |||||||||||
Accrued income taxes | |||||||||||
Fair value derivatives | |||||||||||
Restructuring liabilities | |||||||||||
Accrued interest payable | |||||||||||
Accrued rent | |||||||||||
Other | |||||||||||
Total other accrued liabilities | $ | $ | |||||||||
February 26, 2023 | November 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Long-term debt | |||||||||||
Unsecured: | |||||||||||
$ | $ | ||||||||||
Total long-term debt | $ | $ | |||||||||
Short-term debt | |||||||||||
Secured: | |||||||||||
Senior revolving credit facility | $ | $ | |||||||||
Unsecured: | |||||||||||
Short-term borrowings | |||||||||||
Total short-term debt | $ | $ | |||||||||
Total debt | $ | $ |
Three Months Ended February 26, 2023 | |||||||||||||||||||||||||||||
Pension and Postretirement Benefits(1) | Translation Adjustments | Unrealized (Loss) Gain on Marketable Securities(1) | |||||||||||||||||||||||||||
Derivative Instruments(2) | Foreign Currency Translation | Total | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income at November 27, 2022 | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ( | |||||||||||||||||||||||||||
Net increase (decrease) in other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income at February 26, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended February 27, 2022 | |||||||||||||||||||||||||||||
Pension and Postretirement Benefits(1) | Translation Adjustments | Unrealized Gain (Loss) on Marketable Securities(1) | |||||||||||||||||||||||||||
Derivative Instruments(2) | Foreign Currency Translation | Total | |||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income at November 28, 2021 | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ||||||||||||||||||||||||||||
Net increase (decrease) in other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||
Accumulated other comprehensive (loss) income at February 27, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended February 26, 2023 | |||||||||||||||||||||||||||||
Levi's Brands | |||||||||||||||||||||||||||||
Americas | Europe | Asia | Other Brands | Total | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Net revenues by channel: | |||||||||||||||||||||||||||||
Wholesale | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Direct-to-consumer | |||||||||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ | $ |
Three Months Ended February 27, 2022 | |||||||||||||||||||||||||||||
Levi's Brands | |||||||||||||||||||||||||||||
Americas | Europe | Asia | Other Brands | Total | |||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Net revenues by channel: | |||||||||||||||||||||||||||||
Wholesale | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Direct-to-consumer | |||||||||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ | $ |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Foreign exchange management gains(1) | $ | $ | |||||||||
Foreign currency transaction losses(2) | ( | ( | |||||||||
Marketable securities losses(3) | ( | ||||||||||
COVID-19 government subsidy gain(4) | |||||||||||
Other, net | |||||||||||
Total other (expense) income, net | $ | ( | $ |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions, except per share amounts) | |||||||||||
Numerator: | |||||||||||
Net income | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding - basic | |||||||||||
Dilutive effect of stock awards | |||||||||||
Weighted-average common shares outstanding - diluted | |||||||||||
Earnings per common share attributable to common stockholders: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Net revenues: | |||||||||||
Americas | $ | $ | |||||||||
Europe | |||||||||||
Asia | |||||||||||
Other Brands | |||||||||||
Total net revenues | $ | $ | |||||||||
Operating income: | |||||||||||
Americas | $ | $ | |||||||||
Europe | |||||||||||
Asia | |||||||||||
Other Brands | |||||||||||
Restructuring charges, net | ( | ||||||||||
Corporate expenses | ( | ( | |||||||||
Total operating income | |||||||||||
Interest expense | ( | ( | |||||||||
Other (expense) income, net | ( | ||||||||||
Income before income taxes | $ | $ |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | |||||||||||||||||||||||||||||
February 26, 2023 | February 27, 2022 | % Increase (Decrease) | February 26, 2023 | February 27, 2022 | |||||||||||||||||||||||||
% of Net Revenues | % of Net Revenues | ||||||||||||||||||||||||||||
(Dollars and shares in millions, except per share amounts) | |||||||||||||||||||||||||||||
Net revenues | $ | 1,688.9 | $ | 1,591.6 | 6.1 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||
Cost of goods sold | 746.6 | 648.0 | 15.2 | % | 44.2 | % | 40.7 | % | |||||||||||||||||||||
Gross profit | 942.3 | 943.6 | (0.1) | % | 55.8 | % | 59.3 | % | |||||||||||||||||||||
Selling, general and administrative expenses | 784.9 | 709.4 | 10.6 | % | 46.5 | % | 44.6 | % | |||||||||||||||||||||
Operating income | 157.4 | 234.2 | (32.8) | % | 9.3 | % | 14.7 | % | |||||||||||||||||||||
Interest expense | (10.7) | (4.2) | (154.8) | % | (0.6) | % | (0.3) | % | |||||||||||||||||||||
Other (expense) income, net | (7.5) | 15.9 | (147.2) | % | (0.4) | % | 1.0 | % | |||||||||||||||||||||
Income before income taxes | 139.2 | 245.9 | (43.4) | % | 8.2 | % | 15.4 | % | |||||||||||||||||||||
Income tax expense | 24.5 | 50.1 | (51.1) | % | 1.5 | % | 3.1 | % | |||||||||||||||||||||
Net income | $ | 114.7 | $ | 195.8 | (41.4) | % | 6.8 | % | 12.3 | % | |||||||||||||||||||
Earnings per common share attributable to common stockholders: | |||||||||||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.49 | (40.8) | % | * | * | |||||||||||||||||||||
Diluted | $ | 0.29 | $ | 0.48 | (39.6) | % | * | * | |||||||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||||||||
Basic | 396.0 | 399.4 | (0.9) | % | * | * | |||||||||||||||||||||||
Diluted | 400.4 | 407.0 | (1.6) | % | * | * |
Three Months Ended | |||||||||||||||||||||||
% Increase (Decrease) | |||||||||||||||||||||||
February 26, 2023 | February 27, 2022 | As Reported | Constant Currency | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Levi's Brands: | |||||||||||||||||||||||
Americas | $ | 823.0 | $ | 765.9 | 7.5 | % | 6.9 | % | |||||||||||||||
Europe | 455.1 | 469.4 | (3.0) | % | 1.5 | % | |||||||||||||||||
Asia | 289.5 | 258.4 | 12.0 | % | 22.2 | % | |||||||||||||||||
Total Levi's Brands net revenues | 1,567.6 | 1,493.7 | 4.9 | % | 7.8 | % | |||||||||||||||||
Other Brands | 121.3 | 97.9 | 23.9 | % | 24.6 | % | |||||||||||||||||
Total net revenues | $ | 1,688.9 | $ | 1,591.6 | 6.1 | % | 8.8 | % |
Three Months Ended | |||||||||||||||||
February 26, 2023 | February 27, 2022 | % Increase | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net revenues | $ | 1,688.9 | $ | 1,591.6 | 6.1 | % | |||||||||||
Cost of goods sold | 746.6 | 648.0 | 15.2 | % | |||||||||||||
Gross profit | $ | 942.3 | $ | 943.6 | (0.1) | % | |||||||||||
Gross margin | 55.8 | % | 59.3 | % |
Three Months Ended | |||||||||||||||||||||||||||||
February 26, 2023 | February 27, 2022 | % Increase (Decrease) | February 26, 2023 | February 27, 2022 | |||||||||||||||||||||||||
% of Net Revenues | % of Net Revenues | ||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||
Selling | $ | 346.0 | $ | 312.2 | 10.8 | % | 20.5 | % | 19.6 | % | |||||||||||||||||||
Advertising and promotion | 103.2 | 92.7 | 11.3 | % | 6.1 | % | 5.8 | % | |||||||||||||||||||||
Administration | 127.4 | 131.0 | (2.7) | % | 7.5 | % | 8.2 | % | |||||||||||||||||||||
Other | 196.9 | 175.5 | 12.2 | % | 11.7 | % | 11.0 | % | |||||||||||||||||||||
Restructuring charges, net | 11.4 | (2.0) | * | 0.7 | % | (0.1) | % | ||||||||||||||||||||||
Total SG&A | $ | 784.9 | $ | 709.4 | 10.6 | % | 46.5 | % | 44.6 | % |
Three Months Ended | ||||||||||||||||||||||||||||||||
February 26, 2023 | February 27, 2022 | % Increase (Decrease) | February 26, 2023 | February 27, 2022 | ||||||||||||||||||||||||||||
% of Net Revenues | % of Net Revenues | |||||||||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Operating income: | ||||||||||||||||||||||||||||||||
Levi's Brands: | ||||||||||||||||||||||||||||||||
Americas | $ | 134.6 | $ | 177.8 | (24.3) | % | 16.4 | % | 23.2 | % | ||||||||||||||||||||||
Europe | 117.4 | 136.8 | (14.2) | % | 25.8 | % | 29.1 | % | ||||||||||||||||||||||||
Asia | 53.7 | 43.6 | 23.2 | % | 18.5 | % | 16.9 | % | ||||||||||||||||||||||||
Total Levi's Brands operating income | 305.7 | 358.2 | (14.7) | % | 19.5 | % | 24.0 | % | ||||||||||||||||||||||||
Other Brands | 3.4 | 9.6 | (64.0) | % | 2.8 | % | 9.8 | % | ||||||||||||||||||||||||
Restructuring charges, net | (11.4) | 2.0 | * | (0.7) | % | v | 0.1 | % | v | |||||||||||||||||||||||
Corporate expenses | (140.3) | (135.6) | (3.5) | % | (8.3) | % | v | (8.5) | % | v | ||||||||||||||||||||||
Total operating income | $ | 157.4 | $ | 234.2 | (32.8) | % | 9.3 | % | v | 14.7 | % | v | ||||||||||||||||||||
Operating margin | 9.3 | % | 14.7 | % |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
Cash (used for) provided by operating activities | $ | (160.8) | $ | 86.1 | |||||||
Cash used for investing activities | (19.1) | (78.2) | |||||||||
Cash provided by (used for) financing activities | 77.8 | (139.3) | |||||||||
Cash and cash equivalents at period end | 321.8 | 678.4 |
Most comparable GAAP measure | Non-GAAP measure | Non-GAAP measure definition | ||||||||||||
Gross profit | Adjusted gross profit | Gross profit excluding COVID-19 and acquisition related inventory costs | ||||||||||||
Gross margin | Adjusted gross margin | Adjusted gross profit as a percentage of net revenues | ||||||||||||
Selling, general and administration ("SG&A") expenses | Adjusted SG&A | SG&A expenses excluding changes in fair value on cash-settled stock-based compensation, COVID-19 related charges, acquisition and integration related charges, impairment charges and early termination gains, net and restructuring and restructuring related charges, severance and other, net. | ||||||||||||
SG&A margin | Adjusted SG&A margin | Adjusted SG&A as a percentage of net revenues | ||||||||||||
Net income | Adjusted EBIT | Net income excluding income tax expense, interest expense, other (income) expense, net, impact of changes in fair value on cash-settled stock-based compensation, COVID-19 related inventory costs and other charges, acquisition and integration related charges, and restructuring and restructuring related charges, severance and other, net. | ||||||||||||
Net income margin | Adjusted EBIT margin | Adjusted EBIT as a percentage of net revenues. | ||||||||||||
Net income | Adjusted EBITDA | Adjusted EBIT excluding depreciation and amortization expense | ||||||||||||
Net income | Adjusted net income | Net income excluding loss on early extinguishment of debt, COVID-19 government subsidy gains, unrealized gains on marketable securities originating in prior years, charges related to the impact of changes in fair value on cash-settled stock-based compensation, COVID-19 related inventory costs and other charges, acquisition and integration related charges, and restructuring and restructuring related charges, severance and other, net, and re-measurement of our deferred tax assets and liabilities based on the lower rates as a result of the Tax Cuts and Jobs Act ("Tax Act"), adjusted to give effect to the income tax impact of such adjustments. | ||||||||||||
Net income margin | Adjusted net income margin | Adjusted net income as a percentage of net revenues | ||||||||||||
Diluted earnings per share | Adjusted diluted earnings per share | Adjusted net income per weighted-average number of diluted common shares outstanding |
Three Months Ended February 26, 2023 | |||||||||||||||||
As reported | Non-GAAP Adjustments | As adjusted | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net revenues | $ | 1,688.9 | $ | — | $ | 1,688.9 | |||||||||||
Cost of goods sold | 746.6 | — | 746.6 | ||||||||||||||
Gross profit/Adjusted gross profit | 942.3 | — | 942.3 | ||||||||||||||
Gross margin/Adjusted gross margin | 55.8 | % | 55.8 | % | |||||||||||||
SG&A expenses/Adjusted SG&A(1) | 784.9 | (27.9) | 757.0 | ||||||||||||||
SG&A margin/Adjusted SG&A margin | 46.5 | % | 44.8 | % | |||||||||||||
Operating income/Adjusted EBIT(2) | 157.4 | 27.9 | 185.3 | ||||||||||||||
Operating margin/Adjusted EBIT margin(2) | 9.3 | % | 11.0 | % | |||||||||||||
Interest expense | (10.7) | — | (10.7) | ||||||||||||||
Other expense, net | (7.5) | — | (7.5) | ||||||||||||||
Income before income taxes | 139.2 | 27.9 | 167.1 | ||||||||||||||
Income tax expense(3) | 24.5 | 7.7 | 32.2 | ||||||||||||||
Net income/Adjusted net income | $ | 114.7 | $ | 20.2 | $ | 134.9 | |||||||||||
Net income margin/Adjusted net income margin | 6.8 | % | 8.0 | % | |||||||||||||
Diluted earnings per share/Adjusted diluted earnings per share | $ | 0.29 | $ | 0.05 | $ | 0.34 |
Three Months Ended February 27, 2022 | |||||||||||||||||
As reported | Non-GAAP Adjustments | As adjusted | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
Net revenues | $ | 1,591.6 | $ | — | $ | 1,591.6 | |||||||||||
Cost of goods sold | 648.0 | (2.0) | 646.0 | ||||||||||||||
Gross profit/Adjusted gross profit(1) | 943.6 | 2.0 | 945.6 | ||||||||||||||
Gross margin/Adjusted gross margin | 59.3 | % | 59.4 | % | |||||||||||||
SG&A expenses/Adjusted SG&A(2) | 709.4 | (1.7) | 707.7 | ||||||||||||||
SG&A margin/Adjusted SG&A margin | 44.6 | % | 44.5 | % | |||||||||||||
Operating income/Adjusted EBIT(3) | 234.2 | 3.7 | 237.9 | ||||||||||||||
Operating margin/Adjusted EBIT margin(3) | 14.7 | % | 14.9 | % | |||||||||||||
Interest expense | (4.2) | — | (4.2) | ||||||||||||||
Other income, net(4) | 15.9 | (12.5) | 3.4 | ||||||||||||||
Income before income taxes | 245.9 | (8.8) | 237.1 | ||||||||||||||
Income tax expense(5) | 50.1 | (2.2) | 47.9 | ||||||||||||||
Net income/Adjusted net income | $ | 195.8 | $ | (6.6) | $ | 189.2 | |||||||||||
Net income margin/Adjusted net income margin | 12.3 | % | 11.9 | % | |||||||||||||
Diluted earnings per share/Adjusted diluted earnings per share | $ | 0.48 | $ | (0.02) | $ | 0.46 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
February 26, 2023 | February 27, 2022 | February 26, 2023 | February 27, 2022 | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Most comparable GAAP measure: | |||||||||||||||||||||||
Net income | $ | 114.7 | $ | 195.8 | $ | 488.0 | $ | 606.8 | |||||||||||||||
Non-GAAP measure: | |||||||||||||||||||||||
Net income | $ | 114.7 | $ | 195.8 | $ | 488.0 | $ | 606.8 | |||||||||||||||
Income tax expense | 24.5 | 50.1 | 54.9 | 64.6 | |||||||||||||||||||
Interest expense | 10.7 | 4.2 | 32.2 | 53.8 | |||||||||||||||||||
Other expense (income), net | 7.5 | (15.9) | (5.4) | (18.4) | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 36.5 | |||||||||||||||||||
Impact of changes in fair value on cash-settled stock-based compensation | — | 0.6 | — | 3.9 | |||||||||||||||||||
COVID-19 related inventory costs and other charges | — | — | 5.3 | (5.6) | |||||||||||||||||||
Acquisition and integration related charges(1) | 1.3 | 4.1 | 5.2 | 11.8 | |||||||||||||||||||
Impairment charges and early termination gains, net(2) | 14.7 | — | 47.9 | — | |||||||||||||||||||
Restructuring and restructuring related charges, severance and other, net(3) | 11.9 | (1.0) | 32.3 | 23.4 | |||||||||||||||||||
Adjusted EBIT | $ | 185.3 | $ | 237.9 | $ | 660.4 | $ | 776.8 | |||||||||||||||
Depreciation and amortization(4) | 38.4 | 37.8 | 155.1 | 144.6 | |||||||||||||||||||
Adjusted EBITDA | $ | 223.7 | $ | 275.7 | $ | 815.5 | $ | 921.4 | |||||||||||||||
Adjusted EBIT margin | 11.0 | % | 14.9 | % | |||||||||||||||||||
February 26, 2023 | November 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
(Unaudited) | |||||||||||
Most comparable GAAP measure: | |||||||||||
Total debt, excluding finance leases | $ | 1,155.6 | $ | 996.2 | |||||||
Non-GAAP measure: | |||||||||||
Total debt, excluding finance leases | $ | 1,155.6 | $ | 996.2 | |||||||
Cash and cash equivalents | (321.8) | (429.6) | |||||||||
Short-term investments in marketable securities | — | (70.6) | |||||||||
Net debt | $ | 833.8 | $ | 496.0 |
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
(Unaudited) | |||||||||||
Total debt, excluding finance leases | $ | 1,155.6 | $ | 1,024.7 | |||||||
Last Twelve Months Adjusted EBITDA(1) | $ | 815.5 | $ | 921.4 | |||||||
Leverage ratio | 1.4 | 1.1 |
Three Months Ended | |||||||||||
February 26, 2023 | February 27, 2022 | ||||||||||
(Dollars in millions) | |||||||||||
(Unaudited) | |||||||||||
Most comparable GAAP measure: | |||||||||||
Net cash (used for) provided by operating activities | $ | (160.8) | $ | 86.1 | |||||||
Net cash used for investing activities | (19.1) | (78.2) | |||||||||
Net cash provided by (used for) financing activities | 77.8 | (139.3) | |||||||||
Non-GAAP measure: | |||||||||||
Net cash (used for) provided by operating activities | $ | (160.8) | $ | 86.1 | |||||||
Purchases of property, plant and equipment | (110.9) | (73.6) | |||||||||
Adjusted free cash flow | $ | (271.7) | $ | 12.5 | |||||||
Three Months Ended | |||||||||||||||||
February 26, 2023 | February 27, 2022 | % Increase (Decrease) | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Total net revenues | |||||||||||||||||
As reported | $ | 1,688.9 | $ | 1,591.6 | 6.1 | % | |||||||||||
Impact of foreign currency exchange rates | — | (39.7) | * | ||||||||||||||
Constant-currency net revenues | $ | 1,688.9 | $ | 1,551.9 | 8.8 | % | |||||||||||
Americas | |||||||||||||||||
As reported | $ | 823.0 | $ | 765.9 | 7.5 | % | |||||||||||
Impact of foreign currency exchange rates | — | 3.6 | * | ||||||||||||||
Constant-currency net revenues - Americas | $ | 823.0 | $ | 769.5 | 6.9 | % | |||||||||||
Europe | |||||||||||||||||
As reported | $ | 455.1 | $ | 469.4 | (3.0) | % | |||||||||||
Impact of foreign currency exchange rates | — | (21.2) | * | ||||||||||||||
Constant-currency net revenues - Europe | $ | 455.1 | $ | 448.2 | 1.5 | % | |||||||||||
Asia | |||||||||||||||||
As reported | $ | 289.5 | $ | 258.4 | 12.0 | % | |||||||||||
Impact of foreign currency exchange rates | — | (21.5) | * | ||||||||||||||
Constant-currency net revenues - Asia | $ | 289.5 | $ | 236.9 | 22.2 | % | |||||||||||
Other Brands | |||||||||||||||||
As reported | $ | 121.3 | $ | 97.9 | 23.9 | % | |||||||||||
Impact of foreign currency exchange rates | — | (0.6) | * | ||||||||||||||
Constant-currency net revenues - Other Brands | $ | 121.3 | $ | 97.3 | 24.6 | % |
Three Months Ended | |||||||||||||||||
February 26, 2023 | February 27, 2022 | % Increase (Decrease) | |||||||||||||||
(Dollars in millions) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Adjusted EBIT(1) | $ | 185.3 | $ | 237.9 | (22.1) | % | |||||||||||
Impact of foreign currency exchange rates | — | (8.7) | * | ||||||||||||||
Constant-currency Adjusted EBIT | $ | 185.3 | $ | 229.2 | (19.2) | % | |||||||||||
Adjusted EBIT margin | 11.0 | % | 14.9 | % | (26.2) | % | |||||||||||
Impact of foreign currency exchange rates | — | (0.1) | * | ||||||||||||||
Constant-currency Adjusted EBIT margin(2) | 11.0 | % | 14.8 | % | (25.7) | % |
Three Months Ended | |||||||||||||||||
February 26, 2023 | February 27, 2022 | % Increase (Decrease) | |||||||||||||||
(Dollars in millions, except per share amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Adjusted net income (1) | $ | 134.9 | $ | 189.2 | (28.7) | % | |||||||||||
Impact of foreign currency exchange rates | — | (7.6) | * | ||||||||||||||
Constant-currency Adjusted net income | $ | 134.9 | $ | 181.6 | (25.7) | % | |||||||||||
Constant-currency Adjusted net income margin(2) | 8.0 | % | 11.7 | % | |||||||||||||
Adjusted diluted earnings per share | $ | 0.34 | $ | 0.46 | (26.1) | % | |||||||||||
Impact of foreign currency exchange rates | — | (0.01) | * | ||||||||||||||
Constant-currency Adjusted diluted earnings per share | $ | 0.34 | $ | 0.45 | (24.4) | % |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total number of shares purchased(1) | Average price paid per share(2) | Total number of shares purchased as part of publicly announced plans or programs(1) | Approximate maximum dollar value of shares that may yet be purchased under the plans or programs(1) | |||||||||||||||||||
November 28, 2022 - January 1, 2023 | — | $ | — | — | $ | 688,609,045 | |||||||||||||||||
January 2, 2023 - January 29, 2023 | 31,331 | $ | 17.94 | 31,331 | $ | 688,046,854 | |||||||||||||||||
January 30, 2023 - February 26, 2023 | 423,545 | $ | 17.97 | 423,545 | $ | 680,434,314 | |||||||||||||||||
Total | 454,876 | $ | 17.97 | 454,876 |
Item 3. | DEFAULTS UPON SENIOR SECURITIES |
Item 4. | MINE SAFETY DISCLOSURES |
Item 5. | OTHER INFORMATION |
Item 6. | EXHIBITS |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Description of Document | Form | SEC File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||
3.1 | 8-K | 001-06631 | 3.1 | 3/25/2019 | ||||||||||||||||||||||||||||
3.2 | 10-K | 001-06631 | 3.2 | 1/27/2021 | ||||||||||||||||||||||||||||
10.1 | ||||||||||||||||||||||||||||||||
31.1 | ||||||||||||||||||||||||||||||||
31.2 | ||||||||||||||||||||||||||||||||
32.1† | ||||||||||||||||||||||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. Filed herewith. | |||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. Filed herewith. | |||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. Filed herewith. | |||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. Filed herewith. | |||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. Filed herewith. | |||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. Filed herewith. | |||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained within Exhibit 101). Filed herewith. | |||||||||||||||||||||||||||||||
Date: | April 6, 2023 | LEVI STRAUSS & CO. | |||||||||
(Registrant) | |||||||||||
By: | /s/ LISA W. STIRLING | ||||||||||
Lisa W. Stirling Vice President and Global Controller | |||||||||||
(Principal Accounting Officer and Duly Authorized Officer) |
LEVI STRAUSS & CO., as U.S. Borrower | |||||||||||||||||||||||||||||
By: | /s/ Lauren Dudley | ||||||||||||||||||||||||||||
Name: | Lauren Dudley | ||||||||||||||||||||||||||||
Title: | Vice President and Treasurer |
LEVI STRAUSS & CO. (CANADA) INC., | |||||||||||||||||||||||||||||
as Canadian Borrower | |||||||||||||||||||||||||||||
By: | /s/ Lauren Dudley | ||||||||||||||||||||||||||||
Name: | Lauren Dudley | ||||||||||||||||||||||||||||
Title: | Vice President and Treasurer |
JPMORGAN CHASE BANK, N.A., individually and as | |||||||||||||||||||||||||||||
Administrative Agent | |||||||||||||||||||||||||||||
By: | /s/ Sean Bodkin | ||||||||||||||||||||||||||||
Name: | Sean Bodkin | ||||||||||||||||||||||||||||
Title: | Executive Director |
JPMORGAN CHASE BANK, N.A., TORONTO | |||||||||||||||||||||||||||||
BRANCH, individually and as Multicurrency | |||||||||||||||||||||||||||||
Administrative Agent | |||||||||||||||||||||||||||||
By: | /s/ Sean Bodkin | ||||||||||||||||||||||||||||
Name: | Sean Bodkin | ||||||||||||||||||||||||||||
Title: | Executive Director |
JPMORGAN CHASE BANK, N.A., as a Lender | |||||||||||||||||||||||||||||
BRANCH, individually and as Multicurrency | |||||||||||||||||||||||||||||
Administrative Agent | |||||||||||||||||||||||||||||
By: | /s/ Sean Bodkin | ||||||||||||||||||||||||||||
Name: | Sean Bodkin | ||||||||||||||||||||||||||||
Title: | Executive Director |
BANK OF THE WEST, as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Nicki Schroeder | ||||||||||||||||||||||||||||
Name: | Nicki Schroeder | ||||||||||||||||||||||||||||
Title: | Director |
BNP Paribas, as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Guelay Mese | ||||||||||||||||||||||||||||
Name: | Guelay Mese | ||||||||||||||||||||||||||||
Title: | Managing Director |
By: | /s/ Andrew Aran | ||||||||||||||||||||||||||||
Name: | Andrew Aran | ||||||||||||||||||||||||||||
Title: | Vice President |
BANK OF AMERICA, N.A., as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Chad Shimabukuro | ||||||||||||||||||||||||||||
Name: | Chad Shimabukuro | ||||||||||||||||||||||||||||
Title: | Vice President |
BANK OF AMERICA, N.A. (CANADA BRANCH), as | |||||||||||||||||||||||||||||
a Lender | |||||||||||||||||||||||||||||
By: | /s/ Sylwia Durkiewicz | ||||||||||||||||||||||||||||
Name: | Sylwia Durkiewicz | ||||||||||||||||||||||||||||
Title: | Vice President |
HSBC BANK USA, N.A., as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Gillian S Jean-Marie | ||||||||||||||||||||||||||||
Name: | Gillian S Jean-Marie | ||||||||||||||||||||||||||||
Title: | Vice President |
HSBC BANK CANADA, as a Lender | |||||||||||||||||||||||||||||
By: | s/ James Sanders | ||||||||||||||||||||||||||||
Name: | James Sanders | ||||||||||||||||||||||||||||
Title: | Director |
By: | /s/ Scott Lampard | ||||||||||||||||||||||||||||
Name: | Scott Lampard | ||||||||||||||||||||||||||||
Title: | Managing Director |
MUFG Bank, LTD., as a Lender | |||||||||||||||||||||||||||||
MUFG Bank, LTD. | |||||||||||||||||||||||||||||
(Name of Institution including branch if applicable) | |||||||||||||||||||||||||||||
By: | /s/ Peter Otoki | ||||||||||||||||||||||||||||
Name: | Peter Otoki | ||||||||||||||||||||||||||||
Title: | Vice President |
ROYAL BANK OF CANADA, as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Vir C. Advani | ||||||||||||||||||||||||||||
Name: | Vir C. Advani | ||||||||||||||||||||||||||||
Title: | Vice President, Corporate Client Group | ||||||||||||||||||||||||||||
Asset Based Lending |
Santander Bank, N.A., as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Jennifer Baydian | ||||||||||||||||||||||||||||
Name: | Jennifer Baydian | ||||||||||||||||||||||||||||
Title: | Senior Vice President | ||||||||||||||||||||||||||||
STANDARD CHARTERED BANK, as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Kristopher Tracy | ||||||||||||||||||||||||||||
Name: | Kristopher Tracy | ||||||||||||||||||||||||||||
Title: | Director, Financing Solution | ||||||||||||||||||||||||||||
THE BANK OF NOVA SCOTIA, as a Lender | |||||||||||||||||||||||||||||
By: | s/ Frans Braniotis | ||||||||||||||||||||||||||||
Name: | Frans Braniotis | ||||||||||||||||||||||||||||
Title: | Managing Director | ||||||||||||||||||||||||||||
Truist Bank, as a Lender | |||||||||||||||||||||||||||||
By: | /s/ Cathleen Marston | ||||||||||||||||||||||||||||
Name: | Cathleen Marston | ||||||||||||||||||||||||||||
Title: | Vice President | ||||||||||||||||||||||||||||
Goldman Sachs Bank USA, as a Lender | |||||||||||||||||||||||||||||
Goldman Sachs Bank USA | |||||||||||||||||||||||||||||
(Name of Institution including branch if applicable) | |||||||||||||||||||||||||||||
By: | /s/ Keshia Leday | ||||||||||||||||||||||||||||
Name: | Keshia Leday | ||||||||||||||||||||||||||||
Title: | Authorized Signatory | ||||||||||||||||||||||||||||
/s/ CHARLES V. BERGH | ||||||||
Charles V. Bergh | ||||||||
President and Chief Executive Officer |
/s/ HARMIT SINGH | ||||||||
Harmit Singh | ||||||||
Executive Vice President and Chief Financial and Growth Officer |
/s/ CHARLES V. BERGH | ||||||||
Charles V. Bergh | ||||||||
President and Chief Executive Officer | ||||||||
April 6, 2023 |
/s/ HARMIT SINGH | ||||||||
Harmit Singh | ||||||||
Executive Vice President and Chief Financial and Growth Officer | ||||||||
April 6, 2023 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Feb. 26, 2023 |
Nov. 27, 2022 |
---|---|---|
Common Class A [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 97,288,774 | 96,028,351 |
Common stock, shares outstanding | 97,288,774 | 96,028,351 |
Common Class B [Member] | ||
Common stock, shares authorized | 422,000,000 | 422,000,000 |
Common stock, shares issued | 299,087,988 | 297,703,442 |
Common stock, shares outstanding | 299,087,988 | 297,703,442 |
Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | |
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Feb. 26, 2023 |
Feb. 27, 2022 |
|
Income Statement [Abstract] | ||
Net revenues | $ 1,688.9 | $ 1,591.6 |
Cost of goods sold | 746.6 | 648.0 |
Gross profit | 942.3 | 943.6 |
Selling, general and administrative expenses | 784.9 | 709.4 |
Operating income | 157.4 | 234.2 |
Interest expense | (10.7) | (4.2) |
Other (expense) income, net | (7.5) | 15.9 |
Income before income taxes | 139.2 | 245.9 |
Income tax expense | 24.5 | 50.1 |
Net income | $ 114.7 | $ 195.8 |
Earnings per common share attributable to common stockholders: | ||
Basic (usd per share) | $ 0.29 | $ 0.49 |
Diluted (usd per share) | $ 0.29 | $ 0.48 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 395,956,182 | 399,445,106 |
Diluted (in shares) | 400,360,529 | 407,017,092 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 114.7 | $ 195.8 |
Other comprehensive income (loss), before related income taxes: | ||
Pension and postretirement benefits | 2.3 | 2.2 |
Derivative instruments | (24.8) | (4.2) |
Foreign currency translation gains (losses) | 28.1 | (11.1) |
Unrealized gains (losses) on marketable securities | 0.7 | (6.0) |
Total other comprehensive income (loss), before related income taxes | 6.3 | (19.1) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (3.1) | 2.1 |
Comprehensive income, net of income taxes | $ 117.9 | $ 178.8 |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.12 | $ 0.10 |
Significant Accounting Policies |
3 Months Ended |
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Feb. 26, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Levi Strauss & Co. (the "Company") is one of the world’s largest brand-name apparel companies. The Company designs, markets and sells – directly or through third parties and licensees – products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, activewear, footwear and related accessories for men, women and children around the world under the Levi’s®, Signature by Levi Strauss & Co.™, Denizen®, Dockers® and Beyond Yoga® brands. Basis of Presentation and Principles of Consolidation The interim consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries, including the notes, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") applicable to interim period financial statements and do not include all of the information and disclosures required by generally accepted accounting principles in the United States ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments necessary for a fair statement of the financial position and the results of operations for the periods presented have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended November 27, 2022, included in the Company's 2022 Annual Report on Form 10-K. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. The results of operations for the three months ended February 26, 2023 may not be indicative of the results to be expected for any other interim period or the year ending November 26, 2023. The Company’s fiscal year ends on the last Sunday of November in each year, although the fiscal years of certain foreign subsidiaries end on November 30. Each quarter of both fiscal years 2023 and 2022 consists of 13 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. Accounts Receivable Accounts receivable are recorded net of an allowance for credit losses. The Company estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated bankruptcies, customer-specific circumstances and an evaluation of current economic conditions. The allowance for credit losses was $7.2 million and $7.5 million as of February 26, 2023 and November 27, 2022, respectively. Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may be impaired. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows and other quantitative and qualitative factors. Property, plant and equipment, net includes accumulated depreciation of $1.2 billion and $1.2 billion as of February 26, 2023 and November 27, 2022, respectively. In the first quarter of 2023, the Company recorded $18.6 million in charges primarily relate to the impairment of capitalized internal-use software, as a result of the decision to discontinue certain technology projects in connection with the overall restructuring initiative. For more on the restructuring, refer to Note 7. The impairment charges are included in selling, general and administrative expenses ("SG&A") in the accompanying consolidated statements of income. Share Repurchases During the three months ended February 26, 2023, the Company repurchased 0.5 million shares for $8.1 million, plus broker's commissions, in the open market. This equates to an average repurchase price of approximately $17.97 per share. During the three months ended February 27, 2022, the Company repurchased 3.0 million shares for $71.5 million, plus broker's commissions, in the open market. This equates to an average repurchase price of approximately $23.56 per share. The Company accounts for share repurchases by charging the excess of repurchase price over the repurchased Class A common stock's par value entirely to retained earnings. All repurchased shares are retired and become authorized but unissued shares. The Company accrues for the shares purchased under the share repurchase plan based on the trade date. The Company may terminate or limit the share repurchase program at any time. Reclassification Certain amounts on the consolidated balance sheets and statements of cash flow have been conformed to the February 26, 2023 presentation. Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the 2022 Annual Report on Form 10-K
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Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES The following table presents the Company's inventory balances:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company’s financial instruments that are carried at fair value:
_____________ (1)Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of marketable equity securities. (2)Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly, and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. Short-term investments in marketable securities consist of fixed income securities. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3)The Company’s cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 4 for more information. The following table presents the amortized cost, gross unrealized gains (losses) and fair values of the Company’s available for sale investments:
The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost:
_____________ (1)Fair values are estimated using Level 2 inputs and incorporate mid-market price quotes. Level 2 inputs are inputs other than quoted prices, that are observable for the liability, either directly or indirectly and include among other things, quoted prices for similar liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable.
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Designated Cash Flow Hedges The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales. The Company’s global sourcing organization uses the U.S. Dollar as its functional currency and is primarily exposed to changes in functional currency equivalent cash flows from anticipated inventory purchases, as it procures inventory on behalf of subsidiaries with the Euro, Australian Dollar and Japanese Yen functional currencies. The Mexico subsidiary uses the Mexican Peso as its functional currency and is exposed as it procures inventory in the U.S. Dollar. Additionally, a European subsidiary uses Euros as its functional currency and is exposed to anticipated non-functional currency denominated sales. The Company manages these risks by using currency forward contracts formally designated and effective as cash flow hedges. Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures. For forward contracts, forward points are excluded from the determination of hedge effectiveness and are included in cost of goods sold for hedges of anticipated inventory purchases and in net revenues for hedges of anticipated sales on a straight-line basis over the life of the contract. In each accounting period, differences between the change in fair value of the forward points and the amount recognized on a straight-line basis is recognized in other comprehensive income (loss). Net Investment Hedges The Company designates certain non-derivative instruments as net investment hedges to hedge the Company's net investment position in certain of its foreign subsidiaries. For these instruments, the Company documents the hedge designation by identifying the hedging instrument, the nature of the risk being hedged and the approach for measuring hedge effectiveness. The ineffective portions of these hedges are recorded in "Other (expense) income, net" in the Company's consolidated statements of income. The effective portions of these hedges are recorded in "Accumulated other comprehensive loss" ("AOCL") on the Company's consolidated balance sheets and are not reclassified to earnings until the related net investment position has been liquidated. Non-designated Cash Flow Hedges The Company enters into derivative instruments not designated as hedges. These derivative instruments are not speculative and are used to manage the Company’s exposure to certain product sourcing activities, some intercompany sales, foreign subsidiaries' royalty payments, interest payments, earnings repatriations, net investment in foreign operations and funding activities but the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in "Other (expense) income, net" in the Company’s consolidated statements of income. As of February 26, 2023, the Company had forward foreign exchange contracts derivatives that were not designated as hedges in qualifying hedging relationships, of which $993.9 million were contracts to buy and $645.9 million were contracts to sell various foreign currencies. These contracts are at various exchange rates and expire at various dates through May 2024. The table below provides data about the carrying values of derivative and non-derivative instruments:
_____________ (1)Included in "Other current assets" or "Other non-current assets" on the Company’s consolidated balance sheets. (2)Included in "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets. The Company's over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sheets based on maturity dates, including those subject to master netting arrangements. The table below presents the gross and net amounts of these contracts recognized on the Company's consolidated balance sheets by type of financial instrument:
The table below provides data about the amount of gains and losses related to derivative instruments designated as cash flow hedges and non-derivative instruments designated as net investment hedges included in AOCL on the Company’s consolidated balance sheets:
_____________ (1)Amounts reclassified from AOCL were classified as net revenues and cost of goods sold on the Company's consolidated statements of income. (2)Prior to and during 2005, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCL and are not reclassified to earnings until the related net investment position has been liquidated. There was no hedge ineffectiveness for the three months ended February 26, 2023. Within the next 12 months, a $8.1 million gain from cash flow hedges is expected to be reclassified from AOCL into net income. The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the consolidated statements of income:
The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other (expense) income, net" in the Company's consolidated statements of income:
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Other Accrued Liabilities |
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES The following table presents the Company's other accrued liabilities:
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Debt |
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The following table presents the Company's debt:
Senior Revolving Credit Facility The Company's unused availability under the Credit Facility was $835.1 million at February 26, 2023, as the Company's total availability of $850.0 million was reduced by $14.9 million of letters of credit and other credit usage allocated under the Credit Facility. On February 27, 2023, subsequent to quarter end, the Company borrowed an additional $50.0 million under its Credit Facility for total outstanding $200.0 million. Interest Rates on Borrowings The Company’s weighted-average interest rate on average borrowings outstanding during the three months ended February 26, 2023 was 3.86%, as compared to 3.83% during the same period of 2022.
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Restructuring Activities |
3 Months Ended |
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Feb. 26, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES In the fourth quarter of 2022, the Company began a restructuring initiative designed to reduce costs and streamline operations in support of enterprise prioritization efforts. The plan is expected to continue through 2023 and will include further prioritization, cost reductions, and organizational changes. For the three-month period ended February 26, 2023, the Company recognized net restructuring charges of $11.4 million, which primarily relate to severance benefits, based on separation benefits provided by Company policy or statutory benefit plans. The Company also recognized $18.2 million in charges related to the impairment of capitalized internal-use software, as a result of the decision to discontinue certain technology projects. Both charges were recorded in SG&A in the accompanying consolidated statements of income. For the three-month period ended February 27, 2022, the Company recognized a net reduction in restructuring charges of $2.0 million, which was recorded in SG&A in the accompanying consolidated statements of income. The charges represent revisions of estimates around severance and employee-related benefits in relation to the previous restructuring initiative.
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Commitments and Contingencies |
3 Months Ended |
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Feb. 26, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Forward Foreign Exchange Contracts The Company uses cash flow hedge derivative instruments to manage its exposure to foreign currencies. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the forward foreign exchange contracts. However, the Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. See Note 4 for additional information. Other Contingencies Litigation. In the ordinary course of business, the Company has various claims, complaints and pending cases, including contractual matters, facility and employee-related matters, distribution matters, product liability matters, intellectual property matters, bankruptcy preference matters, and tax and administrative matters. The Company establishes loss provisions for these ordinary course claims as well as other matters in which losses are probable and can be reasonably estimated. The Company does not believe any of these pending claims, complaints and legal proceedings will have a material impact on its financial condition, results of operations or cash flows. Customs Duty Audits. The Company imports both raw materials and finished garments into all of its geographic regions and, as such, is subject to numerous countries' complex customs laws and regulations with respect to its import and export activity. The Company has various pending audit assessments in connection with these activities. As of February 26, 2023, the Company has recorded certain reserves for these matters which are not material. The Company does not believe any of the claims for customs duty and related charges will have a material impact on its financial condition, results of operations or cash flows.
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Dividends |
3 Months Ended |
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Feb. 26, 2023 | |
Dividends [Abstract] | |
DIVIDENDS | DIVIDENDS Dividends are declared at the discretion of the Board. In January 2023 and 2022, the Company declared cash dividends of $0.12 and $0.10 per share, respectively, to holders of record of its Class A and Class B common stock. Dividends in the amount of $47.6 million and $39.9 million, respectively, were paid out during the three months ended February 26, 2023 and February 27, 2022. The Company does not have an established dividend policy. The Board reviews the Company's ability to pay dividends on an ongoing basis and establishes the dividend amount based on the Company's financial condition, results of operations, capital requirements, current and projected cash flows and other factors, and any restrictions related to the terms of the Company’s debt agreements. Subsequent to the Company's quarter end, a cash dividend of $0.12 per share was declared to holders of record of its Class A and Class B common stock at the close of business on May 4, 2023, for a total quarterly dividend of approximately $47 million.
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a summary of the components of "Accumulated other comprehensive loss," net of related income taxes:
_____________ (1)Amounts reclassified were recorded in other (expense) income, net. (2)Amounts reclassified were recorded within net revenues and cost of goods sold. For more information, refer to Note 4.
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Net Revenues |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | NET REVENUES Disaggregated Revenue The table below provides the Company's revenues disaggregated by segment and channel.
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Other Income, Net |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME, NET | OTHER (EXPENSE) INCOME, NET The following table summarizes significant components of "Other (expense) income, net":
_____________ (1)Gains on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. (2)Foreign currency transaction losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in the three-month period ended February 26, 2023 were primarily due to U.S. Dollar weakening against the Euro and the Mexican Peso. (3)Marketable securities losses includes unrealized gains and losses from marketable equity securities held in an irrevocable grantor’s Rabbi trust in connection with the Company's deferred compensation plan. (4)COVID-19 government subsidy gain reflects a payment received from the German government as reimbursement for COVID-19 losses incurred in prior years.
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Income Taxes |
3 Months Ended |
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Feb. 26, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate was 17.6% for the three months ended February 26, 2023, compared to 20.4% for the same prior-year period. |
Earnings Per Share Attributable to Common Stockholders |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table sets forth the computation of the Company's basic and diluted earnings per share:
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Related Parties |
3 Months Ended |
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Feb. 26, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIESCharles V. Bergh, President and Chief Executive Officer is a member of the board of directors of the Levi Strauss Foundation, which is not a consolidated entity of the Company. Seth R. Jaffe, Executive Vice President and Chief Legal Officer, is Vice President of the Levi Strauss Foundation. During the three months ended February 26, 2023, the Company donated $9.8 million to the Levi Strauss Foundation as compared to $11.4 million for the same prior-year period. |
Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company manages its business according to three reportable segments: Americas, Europe, and Asia, collectively comprising the Company's Levi's Brands business, which includes Levi's®, Signature by Levi Strauss & Co.™ and Denizen® brands. Other Brands, which includes Dockers® and Beyond Yoga® businesses do not meet the quantitative thresholds for reportable segments and therefore are presented under the caption of Other Brands. The Company considers its chief executive officer to be the Company’s chief operating decision maker. The Company’s chief operating decision maker manages business operations, evaluates performance and allocates resources based on the segments’ net revenues and operating income. Business segment information for the Company is as follows:
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Significant Accounting Policies (Policies) |
3 Months Ended |
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Feb. 26, 2023 | |
Accounting Policies [Abstract] | |
Consolidated entities policy | The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. |
Fiscal period | The Company’s fiscal year ends on the last Sunday of November in each year, although the fiscal years of certain foreign subsidiaries end on November 30. Each quarter of both fiscal years 2023 and 2022 consists of 13 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded net of an allowance for credit losses. The Company estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated bankruptcies, customer-specific circumstances and an evaluation of current economic conditions. |
Long-Lived Assets and Cloud Computing Arrangements | Long-Lived AssetsThe Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may be impaired. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows and other quantitative and qualitative factors. |
Shares Repurchases | Share Repurchases During the three months ended February 26, 2023, the Company repurchased 0.5 million shares for $8.1 million, plus broker's commissions, in the open market. This equates to an average repurchase price of approximately $17.97 per share. During the three months ended February 27, 2022, the Company repurchased 3.0 million shares for $71.5 million, plus broker's commissions, in the open market. This equates to an average repurchase price of approximately $23.56 per share. The Company accounts for share repurchases by charging the excess of repurchase price over the repurchased Class A common stock's par value entirely to retained earnings. All repurchased shares are retired and become authorized but unissued shares. The Company accrues for the shares purchased under the share repurchase plan based on the trade date. The Company may terminate or limit the share repurchase program at any time.
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New accounting pronouncements | Reclassification Certain amounts on the consolidated balance sheets and statements of cash flow have been conformed to the February 26, 2023 presentation. Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the 2022 Annual Report on Form 10-K
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Inventories (Tables) |
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | The following table presents the Company's inventory balances:
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets and liabilities carried at fair value | The following table presents the Company’s financial instruments that are carried at fair value:
_____________ (1)Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of marketable equity securities. (2)Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly, and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. Short-term investments in marketable securities consist of fixed income securities. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3)The Company’s cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 4 for more information.
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Available for sale investments | The following table presents the amortized cost, gross unrealized gains (losses) and fair values of the Company’s available for sale investments:
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Financial liabilities carried at adjusted historical cost | The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost:
_____________ (1)Fair values are estimated using Level 2 inputs and incorporate mid-market price quotes. Level 2 inputs are inputs other than quoted prices, that are observable for the liability, either directly or indirectly and include among other things, quoted prices for similar liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable.
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Derivative Instruments and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying values of derivative instruments and non-derivative instruments | The table below provides data about the carrying values of derivative and non-derivative instruments:
_____________ (1)Included in "Other current assets" or "Other non-current assets" on the Company’s consolidated balance sheets. (2)Included in "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets.
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Offsetting assets and liabilities | The Company's over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sheets based on maturity dates, including those subject to master netting arrangements. The table below presents the gross and net amounts of these contracts recognized on the Company's consolidated balance sheets by type of financial instrument:
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Gains and losses included in AOCI | The table below provides data about the amount of gains and losses related to derivative instruments designated as cash flow hedges and non-derivative instruments designated as net investment hedges included in AOCL on the Company’s consolidated balance sheets:
_____________ (1)Amounts reclassified from AOCL were classified as net revenues and cost of goods sold on the Company's consolidated statements of income. (2)Prior to and during 2005, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCL and are not reclassified to earnings until the related net investment position has been liquidated.
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Gains and losses included in statements of income | The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the consolidated statements of income:
The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other (expense) income, net" in the Company's consolidated statements of income:
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Other Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | The following table presents the Company's other accrued liabilities:
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term and short-term debt instruments | The following table presents the Company's debt:
|
Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive loss | The following is a summary of the components of "Accumulated other comprehensive loss," net of related income taxes:
_____________ (1)Amounts reclassified were recorded in other (expense) income, net. (2)Amounts reclassified were recorded within net revenues and cost of goods sold. For more information, refer to Note 4.
|
Net Revenues (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The table below provides the Company's revenues disaggregated by segment and channel.
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Other Income, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other nonoperating income (expense) | The following table summarizes significant components of "Other (expense) income, net":
_____________ (1)Gains on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. (2)Foreign currency transaction losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in the three-month period ended February 26, 2023 were primarily due to U.S. Dollar weakening against the Euro and the Mexican Peso. (3)Marketable securities losses includes unrealized gains and losses from marketable equity securities held in an irrevocable grantor’s Rabbi trust in connection with the Company's deferred compensation plan. (4)COVID-19 government subsidy gain reflects a payment received from the German government as reimbursement for COVID-19 losses incurred in prior years.
|
Earnings Per Share Attributable to Common Stockholders (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company's basic and diluted earnings per share:
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Business Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Business segment information for the Company is as follows:
|
Significant Accounting Policies - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Feb. 26, 2023
USD ($)
region
$ / shares
shares
|
Feb. 27, 2022
USD ($)
$ / shares
shares
|
Nov. 27, 2022
USD ($)
|
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of geographical regions | region | 3 | ||
Allowance for credit loss | $ 7.2 | $ 7.5 | |
Impairment charges on long-lived assets | 18.6 | ||
Accumulated depreciation | 1,200.0 | 1,200.0 | |
Operating lease right-of-use assets, net | 955.0 | 970.0 | |
Long-term operating lease liabilities | $ 838.2 | $ 859.1 | |
Shares repurchased (in shares) | shares | 0.5 | 3.0 | |
Repurchased value | $ 8.1 | $ 71.5 | |
Average repurchase price (in dollars per share) | $ / shares | $ 17.97 | $ 23.56 |
Inventories (Details) - USD ($) $ in Millions |
Feb. 26, 2023 |
Nov. 27, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 13.7 | $ 12.3 |
Work-in-progress | 2.9 | 4.7 |
Finished goods | 1,318.6 | 1,399.8 |
Inventories | $ 1,335.2 | $ 1,416.8 |
Fair Value of Financial Instruments - Available for Sale Investments (Details) - Short-term Investments - Short-term investments in marketable securities $ in Millions |
Nov. 27, 2022
USD ($)
|
---|---|
Debt and Equity Securities, FV-NI [Line Items] | |
Amortized Cost | $ 71.1 |
Unrealized Gains | 0.3 |
Unrealized Losses | (0.8) |
Fair Value | $ 70.6 |
Derivative Instruments and Hedging Activities-Realized & Unrealized (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges expected to be reclassified from AOCI into net income within next 12 months | $ 8.1 | |
Revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 1.6 | $ (0.9) |
Cost of Goods Sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 9.5 | 1.5 |
Forward foreign exchange contracts [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized | 9.4 | (1.4) |
Unrealized | (5.6) | 3.7 |
Total | $ 3.8 | $ 2.3 |
Other Accrued Liabilities (Details) - USD ($) $ in Millions |
Feb. 26, 2023 |
Nov. 27, 2022 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued non-trade payables | $ 185.9 | $ 268.4 |
Accrued advertising and promotion | 55.8 | 57.1 |
Taxes other than income taxes payable | 48.6 | 53.2 |
Accrued property, plant and equipment | 39.3 | 93.3 |
Accrued income taxes | 35.1 | 13.1 |
Fair value derivatives | 21.0 | 7.5 |
Restructuring liabilities | 19.4 | 9.8 |
Accrued interest payable | 17.3 | 8.0 |
Accrued rent | 9.1 | 9.1 |
Other | 124.7 | 130.8 |
Total other accrued liabilities | $ 556.2 | $ 650.3 |
Debt-Table (Details) - USD ($) $ in Millions |
Feb. 26, 2023 |
Nov. 27, 2022 |
---|---|---|
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 993.6 | $ 984.5 |
Short-term debt | 162.0 | 11.7 |
Total debt | 1,155.6 | 996.2 |
3.375% Senior Notes Due 2027 | Senior Notes | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 499.6 | 490.6 |
Stated interest rate | 3.375% | |
3.50% Senior Notes Due 2031 | Senior Notes | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 494.0 | 493.9 |
Stated interest rate | 3.50% | |
Line of Credit | Senior revolving credit facility | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Short-term debt | $ 150.0 | 0.0 |
Borrowings | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Short-term debt | $ 12.0 | $ 11.7 |
Debt-Textuals (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Feb. 27, 2023 |
Feb. 26, 2023 |
Feb. 27, 2022 |
Nov. 27, 2022 |
|
Debt Instruments [Line Items] | ||||
Proceeds from senior revolving credit facility | $ 150,000,000.0 | $ 0 | ||
Short-term debt | $ 162,000,000.0 | $ 11,700,000 | ||
Weighted-average interest rate | 3.86% | 3.83% | ||
Senior revolving credit facility | Line of Credit | ||||
Debt Instruments [Line Items] | ||||
Short-term debt | $ 150,000,000.0 | $ 0 | ||
Senior revolving credit facility | Subsequent Event | Line of Credit | ||||
Debt Instruments [Line Items] | ||||
Short-term debt | $ 200,000,000 | |||
Senior revolving credit facility | ||||
Debt Instruments [Line Items] | ||||
Letter of credit limit | 835,100,000 | |||
Total availability | 850,000,000 | |||
Letters of credit and other credit usage | $ 14,900,000 | |||
Line of Credit | Senior revolving credit facility | Subsequent Event | ||||
Debt Instruments [Line Items] | ||||
Proceeds from senior revolving credit facility | $ 50,000,000 |
Restructuring Activities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Restructuring and Related Activities [Abstract] | ||
Restructuring charges, net | $ 11.4 | |
Impairment charges of capitalized internal-use software | $ 18.2 | |
Net reduction in restructuring charges | $ 2.0 |
Dividends (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
May 28, 2023 |
Feb. 26, 2023 |
Feb. 27, 2022 |
May 04, 2023 |
Jan. 31, 2023 |
Jan. 31, 2022 |
|
Class of Stock [Line Items] | ||||||
Dividend, fix amount (in dollars per share) | $ 0.12 | $ 0.10 | ||||
Dividend to stockholders | $ 47.6 | $ 39.9 | ||||
Forecast | ||||||
Class of Stock [Line Items] | ||||||
Dividend, fix amount (in dollars per share) | $ 0.12 | |||||
Dividend to stockholders | $ 47.0 |
Other Income, Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Other Income and Expenses [Abstract] | ||
Foreign exchange management gains (losses) | $ 3.8 | $ 2.3 |
Foreign currency transaction (losses) gains | (10.6) | (2.2) |
Marketable securities losses | (1.1) | 0.0 |
COVID-19 government subsidy gain | 0.0 | 12.5 |
Other, net | 0.4 | 3.3 |
Total other (expense) income, net | $ (7.5) | $ 15.9 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 17.60% | 20.40% |
Income tax expense | $ 24.5 | $ 50.1 |
Earnings Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Numerator: | ||
Net income | $ 114.7 | $ 195.8 |
Denominator: | ||
Weighted-average common shares outstanding - basic (in shares) | 395,956,182 | 399,445,106 |
Dilutive effect of stock awards (in shares) | 4,404,347 | 7,571,986 |
Weighted-average common shares outstanding - diluted (in shares) | 400,360,529 | 407,017,092 |
Earnings per common share attributable to common stockholders: | ||
Basic (usd per share) | $ 0.29 | $ 0.49 |
Diluted (usd per share) | $ 0.29 | $ 0.48 |
Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders (in shares) | 5,507,675 | 1,192,463 |
Related Parties (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Levi Strauss Foundation | ||
Related Party Transaction [Line Items] | ||
Related Party Donations | $ 9.8 | $ 11.4 |
Business Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Feb. 26, 2023 |
Feb. 27, 2022 |
|
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,688,900 | $ 1,591,600 |
Operating income (loss) | 157,400 | 234,200 |
Interest expense | (10,700) | (4,200) |
Other (expense) income, net | (7,500) | 15,900 |
Income before income taxes | 139,200 | 245,900 |
Asset impairment charges | 14,900 | 0 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 823,000 | 765,900 |
Operating income (loss) | 134,600 | 177,800 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 455,100 | 469,400 |
Operating income (loss) | 117,400 | 136,800 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 289,500 | 258,400 |
Operating income (loss) | 53,700 | 43,600 |
Other Brands | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 121,300 | 97,900 |
Operating income (loss) | 3,400 | 9,600 |
Corporate Segment | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges, net | 11,400 | 2,000 |
Corporate expenses | $ (140,300) | $ (135,600) |
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