Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 01, 2015 | Apr. 09, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LEVI STRAUSS & CO | |
Entity Central Index Key | 94845 | |
Document Type | 10-Q | |
Document Period End Date | 1-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -18 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | Yes | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,419,788 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 01, 2015 | Nov. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $202,730 | $298,255 |
Trade receivables, net of allowance for doubtful accounts of $11,533 and $12,704 | 368,808 | 481,981 |
Inventories: | ||
Raw materials | 4,053 | 4,501 |
Work-in-process | 4,076 | 5,056 |
Finished goods | 585,481 | 591,359 |
Total inventories | 593,610 | 600,916 |
Deferred tax assets, net | 166,645 | 178,015 |
Other current assets | 119,294 | 99,347 |
Total current assets | 1,451,087 | 1,658,514 |
Property, plant and equipment, net of accumulated depreciation of $792,643 and $784,493 | 372,452 | 392,062 |
Goodwill | 236,090 | 238,921 |
Other intangible assets, net | 45,053 | 45,898 |
Non-current deferred tax assets, net | 486,560 | 488,398 |
Other non-current assets | 99,860 | 100,280 |
Total assets | 2,691,102 | 2,924,073 |
Current Liabilities: | ||
Short-term debt | 33,847 | 131,524 |
Accounts payable | 197,290 | 234,892 |
Accrued salaries, wages and employee benefits | 139,149 | 178,470 |
Restructuring liabilities | 42,596 | 57,817 |
Accrued interest payable | 25,028 | 5,679 |
Accrued income taxes | 10,051 | 9,432 |
Other accrued liabilities | 260,619 | 263,182 |
Total current liabilities | 708,580 | 880,996 |
Long-term debt | 1,091,622 | 1,092,478 |
Long-term capital leases | 11,423 | 11,619 |
Postretirement medical benefits | 116,377 | 122,213 |
Pension liability | 386,446 | 406,398 |
Long-term employee related benefits | 69,434 | 80,066 |
Long-term income tax liabilities | 34,473 | 35,821 |
Other long-term liabilities | 55,890 | 62,363 |
Total liabilities | 2,474,245 | 2,691,954 |
Commitments and contingencies | ||
Temporary equity | 79,921 | 77,664 |
Levi Strauss & Co. stockholders’ equity | ||
Common stock — $.01 par value; 270,000,000 shares authorized; 37,437,470 shares and 37,430,283 shares issued and outstanding | 374 | 374 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 518,020 | 528,209 |
Accumulated other comprehensive loss | -382,537 | -375,340 |
Total Levi Strauss & Co. stockholders’ equity | 135,857 | 153,243 |
Noncontrolling interest | 1,079 | 1,212 |
Total stockholders’ equity | 136,936 | 154,455 |
Total liabilities, temporary equity and stockholders’ equity | $2,691,102 | $2,924,073 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 01, 2015 | Nov. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ||
Net of accumulated depreciation | $792,643 | $784,493 |
Current Assets: | ||
Net of allowance for doubtful accounts | $11,533 | $12,704 |
Levi Strauss & Co. stockholders’ equity | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 270,000,000 | 270,000,000 |
Common stock, shares issued | 37,437,470 | 37,430,283 |
Common stock, shares outstanding | 37,437,470 | 37,430,283 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Income Statement [Abstract] | ||
Net revenues | $1,055,075 | $1,129,990 |
Cost of goods sold | 518,010 | 553,637 |
Gross profit | 537,065 | 576,353 |
Selling, general and administrative expenses | 425,282 | 424,762 |
Restructuring, net | 4,338 | 57,935 |
Operating income | 107,445 | 93,656 |
Interest expense | -23,312 | -31,829 |
Other income (expense), net | -26,028 | 4,183 |
Income before income taxes | 58,105 | 66,010 |
Income tax expense | 19,822 | 16,387 |
Net income | 38,283 | 49,623 |
Net loss attributable to noncontrolling interest | 109 | 348 |
Net income attributable to Levi Strauss & Co. | $38,392 | $49,971 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $38,283 | $49,623 |
Pension and postretirement benefits | 4,099 | 2,302 |
Net investment hedge gains (losses) | 87 | -4,228 |
Foreign currency translation losses | -11,476 | -4,114 |
Unrealized gain on marketable securities | 70 | 39 |
Total other comprehensive loss | -7,220 | -6,001 |
Comprehensive income | 31,063 | 43,622 |
Comprehensive loss attributable to noncontrolling interest | 132 | 389 |
Comprehensive income attributable to Levi Strauss & Co. | $31,195 | $44,011 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 | ||
Cash Flows from Operating Activities: | ||||
Net income | $38,283 | $49,623 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 26,475 | 26,945 | ||
Asset impairments | 184 | 234 | ||
Loss on disposal of assets | -26 | -3 | ||
Unrealized foreign exchange losses (gains) | 7,489 | -3,785 | ||
Realized loss (gain) on settlement of forward foreign exchange contracts not designated for hedge accounting | 3,960 | -5,915 | ||
Employee benefit plans’ amortization from accumulated other comprehensive loss | 4,272 | 3,692 | ||
Noncash restructuring charges | 335 | [1] | 957 | [1] |
Amortization of deferred debt issuance costs | 926 | 1,099 | ||
Stock-based compensation | 3,600 | 2,314 | ||
Allowance for doubtful accounts | 519 | 703 | ||
Change in operating assets and liabilities: | ||||
Trade receivables | 129,587 | 63,555 | ||
Inventories | 30,939 | -55,739 | ||
Other current assets | -12,647 | -8,749 | ||
Other non-current assets | -2,048 | 168 | ||
Accounts payable and other accrued liabilities | -106,432 | -45,417 | ||
Restructuring Liabilities | -16,009 | 56,978 | ||
Income tax liabilities | 3,203 | 3,020 | ||
Accrued salaries, wages and employee benefits and long-term employee related benefits | -74,484 | -53,302 | ||
Other long-term liabilities | -201 | -326 | ||
Other, net | -348 | -384 | ||
Net cash provided by operating activities | 37,629 | 35,674 | ||
Cash Flows from Investing Activities: | ||||
Purchases of property, plant and equipment | -21,152 | -20,434 | ||
Proceeds from sale of assets | 11 | 47 | ||
(Payments) proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting | -3,960 | 5,915 | ||
Acquisitions, net of cash acquired | 0 | -75 | ||
Net cash used for investing activities | -25,101 | -14,547 | ||
Cash Flows from Financing Activities: | ||||
Repayments of long-term debt and capital leases | -741 | -1,029 | ||
Proceeds from senior revolving credit facility | 35,000 | 0 | ||
Repayments of senior revolving credit facility | 135,000 | 0 | ||
Proceeds from short-term credit facilities | 7,753 | 3,088 | ||
Repayments of short-term credit facilities | -5,045 | -2,423 | ||
Short-term borrowings, net | 689 | -7,179 | ||
Restricted cash | 736 | 560 | ||
Excess tax benefits from stock-based compensation | 75 | 29 | ||
Net cash used for financing activities | -96,533 | -6,954 | ||
Effect of exchange rate changes on cash and cash equivalents | -11,520 | -601 | ||
Net (decrease) increase in cash and cash equivalents | -95,525 | 13,572 | ||
Beginning cash and cash equivalents | 298,255 | 489,258 | ||
Ending cash and cash equivalents | 202,730 | 502,830 | ||
Noncash Investing and Financing Items [Abstract] | ||||
Capital Expenditures Incurred but Not yet Paid | 9,993 | 5,209 | ||
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest during the period | 2,020 | 2,490 | ||
Cash paid for income taxes during the period, net of refunds | $18,049 | $13,441 | ||
[1] | Noncash pension and postretirement curtailment gains or losses resulting from the global productivity initiative are included in restructuring charges, with the associated liabilities included in "Pension liability" and "Postretirement medical benefits" in the Company's consolidated balance sheets. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | |
Mar. 01, 2015 | ||
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, jackets, footwear and related accessories for men, women and children around the world under the Levi’s®, Dockers®, Signature by Levi Strauss & Co.™ and Denizen® brands. The Company operates its business through three geographic regions: Americas, Europe and Asia. | ||
Basis of Presentation and Principles of Consolidation | ||
The unaudited consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries are prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information. 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. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended November 30, 2014, included in the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (“SEC”) on February 12, 2015. | ||
The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. Management believes the disclosures are adequate to make the information presented herein not misleading. The results of operations for the three months ended March 1, 2015, may not be indicative of the results to be expected for any other interim period or the year ending November 29, 2015. | ||
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 2015 and 2014 consists of 13 weeks, with the exception of the fourth quarter of 2014, which consisted of 14 weeks. All references to years relate to fiscal years rather than calendar years. | ||
Subsequent events have been evaluated through the issuance date of these financial statements. | ||
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. | ||
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, from those disclosed in the Company’s 2014 Annual Report on Form 10-K, except for the following, which will become effective for the Company in the first quarter of 2017: | ||
• | In April 2015, the FASB issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnotes disclosures. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||||||||||
Mar. 01, 2015 | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Fair Value Estimated | Fair Value Estimated | |||||||||||||||||||||||
Using | Using | |||||||||||||||||||||||
Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||
Rabbi trust assets | $ | 26,444 | $ | 26,444 | $ | — | $ | 25,891 | $ | 25,891 | $ | — | ||||||||||||
Forward foreign exchange contracts, net(3) | 22,886 | — | 22,886 | 10,511 | — | 10,511 | ||||||||||||||||||
Total | $ | 49,330 | $ | 26,444 | $ | 22,886 | $ | 36,402 | $ | 25,891 | $ | 10,511 | ||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||
Forward foreign exchange contracts, net(3) | $ | 9,671 | $ | — | $ | 9,671 | $ | 10,353 | $ | — | $ | 10,353 | ||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Fair values estimated using Level 1 inputs are inputs which 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 a diversified portfolio of equity, fixed income and other 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. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. | |||||||||||||||||||||||
-3 | 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. | |||||||||||||||||||||||
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: | ||||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Carrying | Estimated Fair Value | Carrying | Estimated Fair Value | |||||||||||||||||||||
Value | Value | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Financial liabilities carried at adjusted historical cost | ||||||||||||||||||||||||
Senior revolving credit facility | $ | — | $ | — | $ | 100,098 | $ | 100,098 | ||||||||||||||||
4.25% Yen-denominated Eurobonds due 2016(1) | 33,983 | 35,198 | 34,108 | 35,383 | ||||||||||||||||||||
7.625% senior notes due 2020(1) | 536,898 | 565,117 | 526,779 | 556,967 | ||||||||||||||||||||
6.875% senior notes due 2022(1) | 545,256 | 600,567 | 536,501 | 583,848 | ||||||||||||||||||||
Short-term borrowings | 33,923 | 33,923 | 31,742 | 31,742 | ||||||||||||||||||||
Total | $ | 1,150,060 | $ | 1,234,805 | $ | 1,229,228 | $ | 1,308,038 | ||||||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||
Mar. 01, 2015 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||||
As of March 1, 2015, the Company had forward foreign exchange contracts to buy $544.4 million and to sell $292.5 million against various foreign currencies. These contracts are at various exchange rates and expire at various dates through August 2016. | ||||||||||||||||||||||||
The table below provides data about the carrying values of derivative instruments and non-derivative instruments: | ||||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Assets | (Liabilities) | Derivative Net Carrying Value | Assets | (Liabilities) | Derivative Net Carrying Value | |||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | |||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Forward foreign exchange contracts(1) | $ | 25,338 | $ | (2,452 | ) | $ | 22,886 | $ | 15,587 | $ | (5,076 | ) | $ | 10,511 | ||||||||||
Forward foreign exchange contracts(2) | 2,125 | (11,796 | ) | (9,671 | ) | 1,833 | (12,186 | ) | (10,353 | ) | ||||||||||||||
Total | $ | 27,463 | $ | (14,248 | ) | $ | 17,420 | $ | (17,262 | ) | ||||||||||||||
Non-derivatives designated as hedging instruments | ||||||||||||||||||||||||
Yen-denominated Eurobonds | $ | — | $ | (9,714 | ) | $ | — | $ | (10,195 | ) | ||||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Included in “Other current assets” or “Other non-current assets” on the Company’s consolidated balance sheets. | |||||||||||||||||||||||
-2 | Included in “Other accrued 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. The table below presents, by type of financial instrument, the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized on the Company's consolidated balance sheets: | ||||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Gross Amounts of Recognized Assets / (Liabilities) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets / (Liabilities) Presented in the Statement of Financial Position | Gross Amounts of Recognized Assets / (Liabilities) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets / (Liabilities) Presented in the Statement of Financial Position | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Over-the-counter forward foreign exchange contracts | ||||||||||||||||||||||||
Financial assets | $ | 26,417 | $ | (4,577 | ) | $ | 21,840 | $ | 15,555 | $ | (6,908 | ) | $ | 8,647 | ||||||||||
Financial liabilities | (6,038 | ) | 4,577 | (1,461 | ) | (9,587 | ) | 6,908 | (2,679 | ) | ||||||||||||||
Total | $ | 20,379 | $ | 5,968 | ||||||||||||||||||||
Embedded derivative contracts | ||||||||||||||||||||||||
Financial assets | $ | 1,046 | $ | — | $ | 1,046 | $ | 1,865 | $ | — | $ | 1,865 | ||||||||||||
Financial liabilities | (8,210 | ) | — | (8,210 | ) | (7,675 | ) | — | (7,675 | ) | ||||||||||||||
Total | $ | (7,164 | ) | $ | (5,810 | ) | ||||||||||||||||||
The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as net investment hedges included in “Accumulated other comprehensive loss” (“AOCI”) on the Company’s consolidated balance sheets, and in “Other income (expense), net” in the Company’s consolidated statements of income: | ||||||||||||||||||||||||
Gain or (Loss) | Gain or (Loss) Recognized in Other Income (Expense), net (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||
Recognized in AOCI | ||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
As of | As of | Three Months Ended | ||||||||||||||||||||||
March 1, | November 30, | March 1, | February 23, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 4,637 | $ | 4,637 | ||||||||||||||||||||
Yen-denominated Eurobonds | (19,226 | ) | (19,367 | ) | $ | 346 | $ | 217 | ||||||||||||||||
Euro senior notes | (15,751 | ) | (15,751 | ) | — | — | ||||||||||||||||||
Cumulative income taxes | 8,706 | 8,760 | ||||||||||||||||||||||
Total | $ | (21,634 | ) | $ | (21,721 | ) | ||||||||||||||||||
The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in “Other income (expense), net” in the Company’s consolidated statements of income: | ||||||||||||||||||||||||
Gain or (Loss) | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 1, | February 23, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Forward foreign exchange contracts: | ||||||||||||||||||||||||
Realized | $ | (3,960 | ) | $ | 5,915 | |||||||||||||||||||
Unrealized | 11,868 | (1,479 | ) | |||||||||||||||||||||
Total | $ | 7,908 | $ | 4,436 | ||||||||||||||||||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
DEBT | DEBT | |||||||
March 1, | November 30, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Long-term debt | ||||||||
Unsecured: | ||||||||
4.25% Yen-denominated Eurobonds due 2016 | $ | 33,498 | $ | 33,985 | ||||
7.625% senior notes due 2020 | 525,000 | 525,000 | ||||||
6.875% senior notes due 2022 | 533,124 | 533,493 | ||||||
Total unsecured | 1,091,622 | 1,092,478 | ||||||
Total long-term debt | $ | 1,091,622 | $ | 1,092,478 | ||||
Short-term debt | ||||||||
Secured: | ||||||||
Senior revolving credit facility | $ | — | $ | 100,000 | ||||
Unsecured: | ||||||||
Short-term borrowings | 33,847 | 31,524 | ||||||
Total short-term debt | $ | 33,847 | $ | 131,524 | ||||
Total long-term and short-term debt | $ | 1,125,469 | $ | 1,224,002 | ||||
Senior Revolving Credit Facility | ||||||||
The Company’s unused availability under its senior secured revolving credit facility was $717.0 million at March 1, 2015, as the Company’s total availability of $776.2 million was reduced by $59.2 million of letters of credit and other credit usage allocated under the credit facility. | ||||||||
Subsequent to the end of the first quarter, the Company borrowed approximately $50 million under its senior secured revolving credit facility. | ||||||||
Interest Rates on Borrowings | ||||||||
The Company’s weighted-average interest rate on average borrowings outstanding during the three months ended March 1, 2015, was 7.55% as compared to 7.91% in the same period of 2014. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||
Mar. 01, 2015 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS | |||||||||||||||
The following table summarizes the components of net periodic benefit cost and the changes recognized in “Accumulated other comprehensive loss” for the Company’s defined benefit pension plans and postretirement benefit plans: | ||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 1, | February 23, | March 1, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 2,128 | $ | 2,159 | $ | 63 | $ | 68 | ||||||||
Interest cost | 11,840 | 13,761 | 1,147 | 1,338 | ||||||||||||
Expected return on plan assets | (12,717 | ) | (13,843 | ) | — | — | ||||||||||
Amortization of prior service benefit | (16 | ) | (17 | ) | — | (1 | ) | |||||||||
Amortization of actuarial loss | 3,160 | 2,696 | 1,128 | 989 | ||||||||||||
Curtailment loss | 335 | 232 | — | 700 | ||||||||||||
Net settlement loss | — | 60 | — | — | ||||||||||||
Net periodic benefit cost | 4,730 | 5,048 | 2,338 | 3,094 | ||||||||||||
Changes in accumulated other comprehensive loss: | ||||||||||||||||
Amortization of prior service benefit | 16 | 17 | — | 1 | ||||||||||||
Amortization of actuarial loss | (3,160 | ) | (2,696 | ) | (1,128 | ) | (989 | ) | ||||||||
Curtailment loss | (335 | ) | — | — | — | |||||||||||
Net settlement loss | — | (25 | ) | — | — | |||||||||||
Total recognized in accumulated other comprehensive loss | (3,479 | ) | (2,704 | ) | (1,128 | ) | (988 | ) | ||||||||
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ | 1,251 | $ | 2,344 | $ | 1,210 | $ | 2,106 | ||||||||
Restructuring
Restructuring | 3 Months Ended | |||||||||||||||||||||||
Mar. 01, 2015 | ||||||||||||||||||||||||
Restructuring Liabilities Disclosures [Abstract] | ||||||||||||||||||||||||
Restructuring | RESTRUCTURING | |||||||||||||||||||||||
In 2014, the Company announced and began to implement a global productivity initiative designed to streamline operations and fuel long-term profitable growth. The global productivity initiative will continue to be implemented through the end of 2015, with a focus on redesigning business processes and identifying opportunities to reduce costs, increase efficiencies and further streamline processes in supporting functions, supply chain and planning. | ||||||||||||||||||||||||
For the three months ended March 1, 2015, and February 23, 2014, the Company recognized restructuring charges, net, of $4.3 million and $57.9 million, respectively, which were recorded in "Restructuring, net" in the Company's consolidated statements of income. Related charges of $8.0 million and $6.4 million for the three months ended March 1, 2015, and February 23, 2014, respectively, consist primarily of consulting fees for the Company's centrally-led cost-savings and productivity projects, as well as transition costs associated with the Company's decision to outsource certain global business service activities. These related charges represent costs incurred associated with ongoing operations which will benefit future periods and thus were recorded in "Selling, general and administrative expenses" in the Company's consolidated statements of income. Cash payments for charges are expected to continue through the first half of 2016. | ||||||||||||||||||||||||
The table below summarizes the components of charges included in “Restructuring, net” in the Company’s consolidated statements of income: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 1, | February 23, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Restructuring, net: | ||||||||||||||||||||||||
Severance and employee-related benefits(1) | $ | 5,320 | $ | 51,321 | ||||||||||||||||||||
Adjustments to severance and employee-related benefits | (1,249 | ) | — | |||||||||||||||||||||
Lease and other contract termination costs | — | — | ||||||||||||||||||||||
Other(2) | 414 | 5,657 | ||||||||||||||||||||||
Adjustments to other | (482 | ) | — | |||||||||||||||||||||
Noncash pension and postretirement curtailment losses, net(3) | 335 | 957 | ||||||||||||||||||||||
Total | $ | 4,338 | $ | 57,935 | ||||||||||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Severance and employee-related benefits relate to items such as severance, based on separation benefits provided by Company policy or statutory benefit plans, out-placement services and career counseling for employees affected by the global productivity initiative. | |||||||||||||||||||||||
-2 | Other restructuring costs are expensed as incurred and primarily relate to consulting fees and legal expenses associated with the execution of the restructuring initiative. | |||||||||||||||||||||||
-3 | Noncash pension and postretirement curtailment gains or losses resulting from the global productivity initiative are included in restructuring charges, with the associated liabilities included in "Pension liability" and "Postretirement medical benefits" in the Company's consolidated balance sheets. | |||||||||||||||||||||||
The Company is unable at this time to make a good faith determination of cost estimates, or ranges of cost estimates, for additional actions associated with the global productivity initiative. Final estimates for headcount, timing and charges in certain areas of the international business are subject to completion of applicable local works council and other consultative processes. | ||||||||||||||||||||||||
The following table summarizes the activities associated with restructuring liabilities for the three months ended March 1, 2015. In the table below, "Charges" represents the initial charge related to the restructuring activity. "Adjustments" includes revisions of estimates related to severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs. "Payments" consists of cash payments for severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs. | ||||||||||||||||||||||||
Three Months Ended March 1, 2015 | ||||||||||||||||||||||||
Liabilities | Adjustments | Foreign Currency Fluctuation | Liabilities | |||||||||||||||||||||
November 30, 2014 | Charges | Payments | March 1, 2015 | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Severance and employee-related benefits | $ | 56,963 | $ | 5,320 | $ | (1,249 | ) | $ | (13,681 | ) | $ | (3,738 | ) | $ | 43,615 | |||||||||
Lease and other contract termination costs | — | — | — | — | — | — | ||||||||||||||||||
Other | 6,400 | 414 | (482 | ) | (6,331 | ) | — | 1 | ||||||||||||||||
Total | $ | 63,363 | $ | 5,734 | $ | (1,731 | ) | $ | (20,012 | ) | $ | (3,738 | ) | $ | 43,616 | |||||||||
Current portion | $ | 57,817 | $ | 42,596 | ||||||||||||||||||||
Long-term portion | 5,546 | 1,020 | ||||||||||||||||||||||
Total | $ | 63,363 | $ | 43,616 | ||||||||||||||||||||
Three Months Ended February 23, 2014 | ||||||||||||||||||||||||
Liabilities | Adjustments | Foreign Currency Fluctuation | Liabilities | |||||||||||||||||||||
November 24, 2013 | Charges | Payments | February 23, 2014 | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Severance and employee-related benefits | $ | — | $ | 51,321 | $ | — | $ | — | $ | — | $ | 51,321 | ||||||||||||
Lease and other contract termination costs | — | — | — | — | — | — | ||||||||||||||||||
Other | — | 5,657 | — | — | — | 5,657 | ||||||||||||||||||
Total | $ | — | $ | 56,978 | $ | — | $ | — | $ | — | $ | 56,978 | ||||||||||||
Current portion | $ | — | $ | 56,978 | ||||||||||||||||||||
Long-term portion | — | — | ||||||||||||||||||||||
Total | $ | — | $ | 56,978 | ||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 01, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES |
Forward Foreign Exchange Contracts | |
The Company uses over-the-counter 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. Please see Note 3 for additional information. | |
Other Contingencies | |
Litigation. There have been no material developments with respect to the information previously reported in the Company’s 2014 Annual Report on Form 10-K related to legal proceedings. | |
In the ordinary course of business, the Company has various pending cases involving contractual matters, facility and employee-related matters, distribution matters, product liability claims, trademark infringement and other matters. The Company does not believe any of these pending legal proceedings will have a material impact on its financial condition, results of operations or cash flows. |
Dividend
Dividend | 3 Months Ended |
Mar. 01, 2015 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND |
The Company's Board of Directors (the “Board”) declared a cash dividend of $50.0 million in the first quarter of 2015, payable in the second quarter of 2015 to stockholders of record at the close of business on February 19, 2015. Dividend payable is included in "Other accrued liabilities" on the Company's consolidated balance sheets. Subsequent to the Company's quarter-end, on April 2, 2015, the Company paid the cash dividend. | |
The Company does not have an established annual dividend policy. The Company will continue to review its ability to pay cash dividends at least annually, and dividends may be declared at the discretion of the Board depending upon, among other factors, the Company's financial condition and compliance with the terms of the Company's debt agreements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
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: | ||||||||
March 1, | November 30, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Pension and postretirement benefits | $ | (257,355 | ) | $ | (261,454 | ) | ||
Net investment hedge losses | (21,634 | ) | (21,721 | ) | ||||
Foreign currency translation losses | (96,838 | ) | (85,362 | ) | ||||
Unrealized gain on marketable securities | 2,304 | 2,234 | ||||||
Accumulated other comprehensive loss | (373,523 | ) | (366,303 | ) | ||||
Accumulated other comprehensive income attributable to noncontrolling interest | 9,014 | 9,037 | ||||||
Accumulated other comprehensive loss attributable to Levi Strauss & Co. | $ | (382,537 | ) | $ | (375,340 | ) | ||
No amounts were reclassified out of "Accumulated other comprehensive loss" into net income other than those that pertain to the Company's pension and postretirement benefit plans. Please see Note 5 for additional information. These amounts are included in "Selling, general and administrative expenses" in the consolidated statements of income. |
Other_Income_Expense_Net
Other Income (Expense), Net | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET | |||||||
The following table summarizes significant components of “Other income (expense), net”: | ||||||||
Three Months Ended | ||||||||
March 1, | February 23, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Foreign exchange management gains(1) | $ | 7,908 | $ | 4,436 | ||||
Foreign currency transaction losses(2) | (35,959 | ) | (2,238 | ) | ||||
Interest income | 460 | 627 | ||||||
Investment income | 439 | 307 | ||||||
Other | 1,124 | 1,051 | ||||||
Total other income (expense), net | $ | (26,028 | ) | $ | 4,183 | |||
_____________ | ||||||||
-1 | Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2015 were primarily due to favorable currency fluctuations relative to negotiated contracts rates on positions to sell the Mexican Peso. | |||||||
-2 | Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in 2015 were primarily due to the weakening of various foreign currencies, particularly the Euro, against the U.S. Dollar. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 01, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
The effective income tax rate was 34.1% for the three months ended March 1, 2015, compared to 24.8% for the same period ended February 23, 2014. | |
The effective tax rate in the first quarter of 2014 included a tax benefit that the Company recorded as a result of reversing a deferred tax liability associated with the change in assertion during the quarter to indefinitely reinvest certain undistributed foreign earnings. The effective tax rate in 2015 reflected an increase in state income taxes due to higher projected domestic income in 2015. |
Related_Parties
Related Parties | 3 Months Ended |
Mar. 01, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES |
Robert D. Haas, Chairman Emeritus of the Company, Charles V. Bergh, President and Chief Executive Officer, Peter E. Haas Jr., a director of the Company, and Kelly McGinnis, Senior Vice President of Corporate Affairs and Chief Communications Officer, are board members of the Levi Strauss Foundation, which is not a consolidated entity of the Company. Seth R. Jaffe, Senior Vice President and General Counsel, is Vice President of the Levi Strauss Foundation. During the three-month period ended March 1, 2015, the Company donated $5.9 million to the Levi Strauss Foundation as compared to $5.2 million for the same prior-year period. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION | |||||||
The Company manages its business according to three regional segments: the Americas, Europe and Asia. 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 regional segments’ net revenues and operating income. | ||||||||
Effective as of the beginning of 2015, the Company's regional licensing revenue, previously recorded centrally in the Company's Americas region, was revised to be recorded in the Company's respective regions. Regional licensing revenues are not significant to any of the Company's regional segments individually in any of the periods presented herein, and accordingly, business segment information for the prior-year period has not been revised. | ||||||||
Business segment information for the Company is as follows: | ||||||||
Three Months Ended | ||||||||
March 1, | February 23, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Net revenues: | ||||||||
Americas | $ | 574,087 | $ | 626,836 | ||||
Europe | 277,488 | 300,426 | ||||||
Asia | 203,500 | 202,728 | ||||||
Total net revenues | $ | 1,055,075 | $ | 1,129,990 | ||||
Operating income: | ||||||||
Americas | $ | 102,292 | $ | 111,052 | ||||
Europe | 58,189 | 71,406 | ||||||
Asia | 47,340 | 46,902 | ||||||
Regional operating income | 207,821 | 229,360 | ||||||
Corporate: | ||||||||
Restructuring, net | 4,338 | 57,935 | ||||||
Restructuring-related charges | 8,007 | 6,441 | ||||||
Other corporate staff costs and expenses | 88,031 | 71,328 | ||||||
Corporate expenses | 100,376 | 135,704 | ||||||
Total operating income | 107,445 | 93,656 | ||||||
Interest expense | (23,312 | ) | (31,829 | ) | ||||
Other income (expense), net | (26,028 | ) | 4,183 | |||||
Income before income taxes | $ | 58,105 | $ | 66,010 | ||||
Significant_Accounting_Policie1
Significant Accounting Policies Significant Accounting Policies (Policies) | 3 Months Ended | |
Mar. 01, 2015 | ||
Accounting Policies [Abstract] | ||
Basis of accounting | The unaudited consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries are prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information. | |
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 2015 and 2014 consists of 13 weeks, with the exception of the fourth quarter of 2014, which consisted of 14 weeks. All references to years relate to fiscal years rather than calendar years. | |
Subsequent events | Subsequent events have been evaluated through the issuance date of these financial statements. | |
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. | |
New accounting pronouncements | 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, from those disclosed in the Company’s 2014 Annual Report on Form 10-K, except for the following, which will become effective for the Company in the first quarter of 2017: | |
• | In April 2015, the FASB issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnotes disclosures. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 01, 2015 | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Fair Value Estimated | Fair Value Estimated | |||||||||||||||||||||||
Using | Using | |||||||||||||||||||||||
Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Financial assets carried at fair value | ||||||||||||||||||||||||
Rabbi trust assets | $ | 26,444 | $ | 26,444 | $ | — | $ | 25,891 | $ | 25,891 | $ | — | ||||||||||||
Forward foreign exchange contracts, net(3) | 22,886 | — | 22,886 | 10,511 | — | 10,511 | ||||||||||||||||||
Total | $ | 49,330 | $ | 26,444 | $ | 22,886 | $ | 36,402 | $ | 25,891 | $ | 10,511 | ||||||||||||
Financial liabilities carried at fair value | ||||||||||||||||||||||||
Forward foreign exchange contracts, net(3) | $ | 9,671 | $ | — | $ | 9,671 | $ | 10,353 | $ | — | $ | 10,353 | ||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Fair values estimated using Level 1 inputs are inputs which 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 a diversified portfolio of equity, fixed income and other 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. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. | |||||||||||||||||||||||
-3 | 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. | |||||||||||||||||||||||
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: | |||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Carrying | Estimated Fair Value | Carrying | Estimated Fair Value | |||||||||||||||||||||
Value | Value | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Financial liabilities carried at adjusted historical cost | ||||||||||||||||||||||||
Senior revolving credit facility | $ | — | $ | — | $ | 100,098 | $ | 100,098 | ||||||||||||||||
4.25% Yen-denominated Eurobonds due 2016(1) | 33,983 | 35,198 | 34,108 | 35,383 | ||||||||||||||||||||
7.625% senior notes due 2020(1) | 536,898 | 565,117 | 526,779 | 556,967 | ||||||||||||||||||||
6.875% senior notes due 2022(1) | 545,256 | 600,567 | 536,501 | 583,848 | ||||||||||||||||||||
Short-term borrowings | 33,923 | 33,923 | 31,742 | 31,742 | ||||||||||||||||||||
Total | $ | 1,150,060 | $ | 1,234,805 | $ | 1,229,228 | $ | 1,308,038 | ||||||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 01, 2015 | ||||||||||||||||||||||||
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 instruments and non-derivative instruments: | |||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Assets | (Liabilities) | Derivative Net Carrying Value | Assets | (Liabilities) | Derivative Net Carrying Value | |||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | |||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||
Forward foreign exchange contracts(1) | $ | 25,338 | $ | (2,452 | ) | $ | 22,886 | $ | 15,587 | $ | (5,076 | ) | $ | 10,511 | ||||||||||
Forward foreign exchange contracts(2) | 2,125 | (11,796 | ) | (9,671 | ) | 1,833 | (12,186 | ) | (10,353 | ) | ||||||||||||||
Total | $ | 27,463 | $ | (14,248 | ) | $ | 17,420 | $ | (17,262 | ) | ||||||||||||||
Non-derivatives designated as hedging instruments | ||||||||||||||||||||||||
Yen-denominated Eurobonds | $ | — | $ | (9,714 | ) | $ | — | $ | (10,195 | ) | ||||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Included in “Other current assets” or “Other non-current assets” on the Company’s consolidated balance sheets. | |||||||||||||||||||||||
-2 | Included in “Other accrued liabilities” on the Company’s consolidated balance sheets. | |||||||||||||||||||||||
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. The table below presents, by type of financial instrument, the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized on the Company's consolidated balance sheets: | |||||||||||||||||||||||
March 1, 2015 | November 30, 2014 | |||||||||||||||||||||||
Gross Amounts of Recognized Assets / (Liabilities) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets / (Liabilities) Presented in the Statement of Financial Position | Gross Amounts of Recognized Assets / (Liabilities) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets / (Liabilities) Presented in the Statement of Financial Position | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Over-the-counter forward foreign exchange contracts | ||||||||||||||||||||||||
Financial assets | $ | 26,417 | $ | (4,577 | ) | $ | 21,840 | $ | 15,555 | $ | (6,908 | ) | $ | 8,647 | ||||||||||
Financial liabilities | (6,038 | ) | 4,577 | (1,461 | ) | (9,587 | ) | 6,908 | (2,679 | ) | ||||||||||||||
Total | $ | 20,379 | $ | 5,968 | ||||||||||||||||||||
Embedded derivative contracts | ||||||||||||||||||||||||
Financial assets | $ | 1,046 | $ | — | $ | 1,046 | $ | 1,865 | $ | — | $ | 1,865 | ||||||||||||
Financial liabilities | (8,210 | ) | — | (8,210 | ) | (7,675 | ) | — | (7,675 | ) | ||||||||||||||
Total | $ | (7,164 | ) | $ | (5,810 | ) | ||||||||||||||||||
Gains and losses included in AOCI | The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as net investment hedges included in “Accumulated other comprehensive loss” (“AOCI”) on the Company’s consolidated balance sheets, and in “Other income (expense), net” in the Company’s consolidated statements of income: | |||||||||||||||||||||||
Gain or (Loss) | Gain or (Loss) Recognized in Other Income (Expense), net (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||
Recognized in AOCI | ||||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
As of | As of | Three Months Ended | ||||||||||||||||||||||
March 1, | November 30, | March 1, | February 23, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Forward foreign exchange contracts | $ | 4,637 | $ | 4,637 | ||||||||||||||||||||
Yen-denominated Eurobonds | (19,226 | ) | (19,367 | ) | $ | 346 | $ | 217 | ||||||||||||||||
Euro senior notes | (15,751 | ) | (15,751 | ) | — | — | ||||||||||||||||||
Cumulative income taxes | 8,706 | 8,760 | ||||||||||||||||||||||
Total | $ | (21,634 | ) | $ | (21,721 | ) | ||||||||||||||||||
Gains and losses included in statements of income | The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in “Other income (expense), net” in the Company’s consolidated statements of income: | |||||||||||||||||||||||
Gain or (Loss) | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 1, | February 23, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Forward foreign exchange contracts: | ||||||||||||||||||||||||
Realized | $ | (3,960 | ) | $ | 5,915 | |||||||||||||||||||
Unrealized | 11,868 | (1,479 | ) | |||||||||||||||||||||
Total | $ | 7,908 | $ | 4,436 | ||||||||||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of long-term and short-term debt instruments | ||||||||
March 1, | November 30, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Long-term debt | ||||||||
Unsecured: | ||||||||
4.25% Yen-denominated Eurobonds due 2016 | $ | 33,498 | $ | 33,985 | ||||
7.625% senior notes due 2020 | 525,000 | 525,000 | ||||||
6.875% senior notes due 2022 | 533,124 | 533,493 | ||||||
Total unsecured | 1,091,622 | 1,092,478 | ||||||
Total long-term debt | $ | 1,091,622 | $ | 1,092,478 | ||||
Short-term debt | ||||||||
Secured: | ||||||||
Senior revolving credit facility | $ | — | $ | 100,000 | ||||
Unsecured: | ||||||||
Short-term borrowings | 33,847 | 31,524 | ||||||
Total short-term debt | $ | 33,847 | $ | 131,524 | ||||
Total long-term and short-term debt | $ | 1,125,469 | $ | 1,224,002 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||
Mar. 01, 2015 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Schedule of defined benefit plans disclosures | The following table summarizes the components of net periodic benefit cost and the changes recognized in “Accumulated other comprehensive loss” for the Company’s defined benefit pension plans and postretirement benefit plans: | |||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
March 1, | February 23, | March 1, | February 23, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 2,128 | $ | 2,159 | $ | 63 | $ | 68 | ||||||||
Interest cost | 11,840 | 13,761 | 1,147 | 1,338 | ||||||||||||
Expected return on plan assets | (12,717 | ) | (13,843 | ) | — | — | ||||||||||
Amortization of prior service benefit | (16 | ) | (17 | ) | — | (1 | ) | |||||||||
Amortization of actuarial loss | 3,160 | 2,696 | 1,128 | 989 | ||||||||||||
Curtailment loss | 335 | 232 | — | 700 | ||||||||||||
Net settlement loss | — | 60 | — | — | ||||||||||||
Net periodic benefit cost | 4,730 | 5,048 | 2,338 | 3,094 | ||||||||||||
Changes in accumulated other comprehensive loss: | ||||||||||||||||
Amortization of prior service benefit | 16 | 17 | — | 1 | ||||||||||||
Amortization of actuarial loss | (3,160 | ) | (2,696 | ) | (1,128 | ) | (989 | ) | ||||||||
Curtailment loss | (335 | ) | — | — | — | |||||||||||
Net settlement loss | — | (25 | ) | — | — | |||||||||||
Total recognized in accumulated other comprehensive loss | (3,479 | ) | (2,704 | ) | (1,128 | ) | (988 | ) | ||||||||
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ | 1,251 | $ | 2,344 | $ | 1,210 | $ | 2,106 | ||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 01, 2015 | ||||||||||||||||||||||||
Restructuring Liabilities Disclosures [Abstract] | ||||||||||||||||||||||||
Composition of Restructuring Charges | The table below summarizes the components of charges included in “Restructuring, net” in the Company’s consolidated statements of income: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 1, | February 23, | |||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Restructuring, net: | ||||||||||||||||||||||||
Severance and employee-related benefits(1) | $ | 5,320 | $ | 51,321 | ||||||||||||||||||||
Adjustments to severance and employee-related benefits | (1,249 | ) | — | |||||||||||||||||||||
Lease and other contract termination costs | — | — | ||||||||||||||||||||||
Other(2) | 414 | 5,657 | ||||||||||||||||||||||
Adjustments to other | (482 | ) | — | |||||||||||||||||||||
Noncash pension and postretirement curtailment losses, net(3) | 335 | 957 | ||||||||||||||||||||||
Total | $ | 4,338 | $ | 57,935 | ||||||||||||||||||||
_____________ | ||||||||||||||||||||||||
-1 | Severance and employee-related benefits relate to items such as severance, based on separation benefits provided by Company policy or statutory benefit plans, out-placement services and career counseling for employees affected by the global productivity initiative. | |||||||||||||||||||||||
-2 | Other restructuring costs are expensed as incurred and primarily relate to consulting fees and legal expenses associated with the execution of the restructuring initiative. | |||||||||||||||||||||||
-3 | Noncash pension and postretirement curtailment gains or losses resulting from the global productivity initiative are included in restructuring charges, with the associated liabilities included in "Pension liability" and "Postretirement medical benefits" in the Company's consolidated balance sheets. | |||||||||||||||||||||||
Restructuring Liability Rollforward | The following table summarizes the activities associated with restructuring liabilities for the three months ended March 1, 2015. In the table below, "Charges" represents the initial charge related to the restructuring activity. "Adjustments" includes revisions of estimates related to severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs. "Payments" consists of cash payments for severance, employee-related benefits, lease and other contract termination costs, and other restructuring costs. | |||||||||||||||||||||||
Three Months Ended March 1, 2015 | ||||||||||||||||||||||||
Liabilities | Adjustments | Foreign Currency Fluctuation | Liabilities | |||||||||||||||||||||
November 30, 2014 | Charges | Payments | March 1, 2015 | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Severance and employee-related benefits | $ | 56,963 | $ | 5,320 | $ | (1,249 | ) | $ | (13,681 | ) | $ | (3,738 | ) | $ | 43,615 | |||||||||
Lease and other contract termination costs | — | — | — | — | — | — | ||||||||||||||||||
Other | 6,400 | 414 | (482 | ) | (6,331 | ) | — | 1 | ||||||||||||||||
Total | $ | 63,363 | $ | 5,734 | $ | (1,731 | ) | $ | (20,012 | ) | $ | (3,738 | ) | $ | 43,616 | |||||||||
Current portion | $ | 57,817 | $ | 42,596 | ||||||||||||||||||||
Long-term portion | 5,546 | 1,020 | ||||||||||||||||||||||
Total | $ | 63,363 | $ | 43,616 | ||||||||||||||||||||
Three Months Ended February 23, 2014 | ||||||||||||||||||||||||
Liabilities | Adjustments | Foreign Currency Fluctuation | Liabilities | |||||||||||||||||||||
November 24, 2013 | Charges | Payments | February 23, 2014 | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Severance and employee-related benefits | $ | — | $ | 51,321 | $ | — | $ | — | $ | — | $ | 51,321 | ||||||||||||
Lease and other contract termination costs | — | — | — | — | — | — | ||||||||||||||||||
Other | — | 5,657 | — | — | — | 5,657 | ||||||||||||||||||
Total | $ | — | $ | 56,978 | $ | — | $ | — | $ | — | $ | 56,978 | ||||||||||||
Current portion | $ | — | $ | 56,978 | ||||||||||||||||||||
Long-term portion | — | — | ||||||||||||||||||||||
Total | $ | — | $ | 56,978 | ||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
Equity [Abstract] | ||||||||
Schedule of accumulated other comprehensive income (Loss) | The following is a summary of the components of “Accumulated other comprehensive loss,” net of related income taxes: | |||||||
March 1, | November 30, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Pension and postretirement benefits | $ | (257,355 | ) | $ | (261,454 | ) | ||
Net investment hedge losses | (21,634 | ) | (21,721 | ) | ||||
Foreign currency translation losses | (96,838 | ) | (85,362 | ) | ||||
Unrealized gain on marketable securities | 2,304 | 2,234 | ||||||
Accumulated other comprehensive loss | (373,523 | ) | (366,303 | ) | ||||
Accumulated other comprehensive income attributable to noncontrolling interest | 9,014 | 9,037 | ||||||
Accumulated other comprehensive loss attributable to Levi Strauss & Co. | $ | (382,537 | ) | $ | (375,340 | ) |
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
Other Income and Expenses [Abstract] | ||||||||
Schedule of other nonoperating income (expense) | The following table summarizes significant components of “Other income (expense), net”: | |||||||
Three Months Ended | ||||||||
March 1, | February 23, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Foreign exchange management gains(1) | $ | 7,908 | $ | 4,436 | ||||
Foreign currency transaction losses(2) | (35,959 | ) | (2,238 | ) | ||||
Interest income | 460 | 627 | ||||||
Investment income | 439 | 307 | ||||||
Other | 1,124 | 1,051 | ||||||
Total other income (expense), net | $ | (26,028 | ) | $ | 4,183 | |||
_____________ | ||||||||
-1 | Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2015 were primarily due to favorable currency fluctuations relative to negotiated contracts rates on positions to sell the Mexican Peso. | |||||||
-2 | Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in 2015 were primarily due to the weakening of various foreign currencies, particularly the Euro, against the U.S. Dollar. |
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | |||||||
Mar. 01, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Business segment information for the Company is as follows: | |||||||
Three Months Ended | ||||||||
March 1, | February 23, | |||||||
2015 | 2014 | |||||||
(Dollars in thousands) | ||||||||
Net revenues: | ||||||||
Americas | $ | 574,087 | $ | 626,836 | ||||
Europe | 277,488 | 300,426 | ||||||
Asia | 203,500 | 202,728 | ||||||
Total net revenues | $ | 1,055,075 | $ | 1,129,990 | ||||
Operating income: | ||||||||
Americas | $ | 102,292 | $ | 111,052 | ||||
Europe | 58,189 | 71,406 | ||||||
Asia | 47,340 | 46,902 | ||||||
Regional operating income | 207,821 | 229,360 | ||||||
Corporate: | ||||||||
Restructuring, net | 4,338 | 57,935 | ||||||
Restructuring-related charges | 8,007 | 6,441 | ||||||
Other corporate staff costs and expenses | 88,031 | 71,328 | ||||||
Corporate expenses | 100,376 | 135,704 | ||||||
Total operating income | 107,445 | 93,656 | ||||||
Interest expense | (23,312 | ) | (31,829 | ) | ||||
Other income (expense), net | (26,028 | ) | 4,183 | |||||
Income before income taxes | $ | 58,105 | $ | 66,010 | ||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details) | 3 Months Ended | ||
Mar. 01, 2015 | Nov. 30, 2014 | Feb. 23, 2014 | |
Accounting Policies [Abstract] | |||
Number of weeks in a quarter | P13W | P14W | P13W |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments-fair value (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 01, 2015 | Nov. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Financial assets carried at fair value | ||||
Rabbi trust assets | $26,444 | $25,891 | ||
Forward foreign exchange contracts, net | 22,886 | [1] | 10,511 | [1] |
Total | 49,330 | 36,402 | ||
Financial liabilities carried at fair value | ||||
Forward foreign exchange contracts, net | 9,671 | [1] | 10,353 | [1] |
Level 1 Inputs [Member] | ||||
Financial assets carried at fair value | ||||
Rabbi trust assets | 26,444 | [2] | 25,891 | [2] |
Forward foreign exchange contracts, net | 0 | [1],[2] | 0 | [1],[2] |
Total | 26,444 | [2] | 25,891 | [2] |
Financial liabilities carried at fair value | ||||
Forward foreign exchange contracts, net | 0 | [1],[2] | 0 | [1],[2] |
Level 2 Inputs [Member] | ||||
Financial assets carried at fair value | ||||
Rabbi trust assets | 0 | [3] | 0 | [3] |
Forward foreign exchange contracts, net | 22,886 | [1],[3] | 10,511 | [1],[3] |
Total | 22,886 | [3] | 10,511 | [3] |
Financial liabilities carried at fair value | ||||
Forward foreign exchange contracts, net | $9,671 | [1],[3] | $10,353 | [1],[3] |
[1] | 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. | |||
[2] | Fair values estimated using Level 1 inputs are inputs which 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 a diversified portfolio of equity, fixed income and other securities. | |||
[3] | 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. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments-adjusted historical cost (Details) (USD $) | Mar. 01, 2015 | Nov. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Senior notes [Member] | 7.625% senior notes due 2020 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 7.63% | |||
Senior notes [Member] | 6.875% senior notes due 2022 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 6.88% | |||
Bonds [Member] | 4.25% Yen-denominated Eurobonds, due 2016 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Stated interest rate | 4.25% | |||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term debt carried at adjusted historical cost | $33,923 | $31,742 | ||
Total financial liabilities carried at adjusted historical cost | 1,150,060 | 1,229,228 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Senior notes [Member] | 7.625% senior notes due 2020 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 536,898 | 526,779 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Senior notes [Member] | 6.875% senior notes due 2022 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 545,256 | 536,501 | ||
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Bonds [Member] | 4.25% Yen-denominated Eurobonds, due 2016 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 33,983 | 34,108 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term debt carried at adjusted historical cost | 33,923 | 31,742 | ||
Total financial liabilities carried at adjusted historical cost | 1,234,805 | 1,308,038 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Senior notes [Member] | 7.625% senior notes due 2020 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 565,117 | [1] | 556,967 | [1] |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Senior notes [Member] | 6.875% senior notes due 2022 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 600,567 | [1] | 583,848 | [1] |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Bonds [Member] | 4.25% Yen-denominated Eurobonds, due 2016 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term Debt, Fair Value | 35,198 | [1] | 35,383 | [1] |
Senior revolving credit facility [Member] | Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term debt carried at adjusted historical cost | 0 | 100,098 | ||
Senior revolving credit facility [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term debt carried at adjusted historical cost | $0 | $100,098 | ||
[1] | Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities-Balance Sheet (Details) (USD $) | Mar. 01, 2015 | Nov. 30, 2014 | ||
Forward foreign exchange contracts [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Derivative asset, gross asset | $26,417,000 | $15,555,000 | ||
Derivative asset, gross liability | 4,577,000 | 6,908,000 | ||
Derivative asset, net | 21,840,000 | 8,647,000 | ||
Derivative liability, gross asset | -4,577,000 | -6,908,000 | ||
Derivative Liability, gross liability | -6,038,000 | -9,587,000 | ||
Derivative Liability, net | -1,461,000 | -2,679,000 | ||
Derivative, Fair Value, Net | 20,379,000 | 5,968,000 | ||
Embedded Derivative Financial Instruments [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Derivative asset, gross asset | 1,046,000 | 1,865,000 | ||
Derivative asset, gross liability | 0 | 0 | ||
Derivative asset, net | 1,046,000 | 1,865,000 | ||
Derivative liability, gross asset | 0 | 0 | ||
Derivative Liability, gross liability | -8,210,000 | -7,675,000 | ||
Derivative Liability, net | -8,210,000 | -7,675,000 | ||
Derivative, Fair Value, Net | -7,164,000 | -5,810,000 | ||
Carrying Value [Member] | Forward foreign exchange contracts [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Derivative asset, net | 27,463,000 | 17,420,000 | ||
Derivative Liability, net | -14,248,000 | -17,262,000 | ||
Carrying Value [Member] | Other assets [Member] | Forward foreign exchange contracts [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Derivative asset, gross asset | 25,338,000 | [1] | 15,587,000 | [1] |
Derivative liability, gross asset | -2,452,000 | [1] | -5,076,000 | [1] |
Derivative asset, Net Carrying Value | 22,886,000 | [1] | 10,511,000 | [1] |
Carrying Value [Member] | Other accrued liabilities [Member] | Forward foreign exchange contracts [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Derivative asset, gross liability | 2,125,000 | [2] | 1,833,000 | [2] |
Derivative Liability, gross liability | -11,796,000 | [2] | -12,186,000 | [2] |
Derivative liability, Net Carrying Value | -9,671,000 | [2] | -10,353,000 | [2] |
Bonds [Member] | 4.25% Yen-denominated Eurobonds, due 2016 [Member] | Carrying Value [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Hedging assets | 0 | 0 | ||
Hedging liabilities | -9,714,000 | -10,195,000 | ||
Long [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Forward foreign exchange contracts | 544,400,000 | |||
Short [Member] | ||||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||||
Forward foreign exchange contracts | $292,500,000 | |||
[1] | Included in “Other current assets†or “Other non-current assets†on the Company’s consolidated balance sheets. | |||
[2] | Included in “Other accrued liabilities†on the Company’s consolidated balance sheets. |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities-Income Statement (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 | Nov. 30, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cumulative income taxes, gain or (loss) recognized in AOCI | $8,706 | $8,760 | |
Total, gain or (loss) recognized in AOCI | -21,634 | -21,721 | |
Forward foreign exchange contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Forward foreign exchange contracts, gain of (loss) recognized in AOCI | 4,637 | 4,637 | |
4.25% Yen-denominated Eurobonds, due 2016 [Member] | Bonds [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | -19,226 | -19,367 | |
Non-derivative hedging instruments-gain or (loss) recognized in other income | 346 | 217 | |
Euro Senior Notes [Member] | Senior notes [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | -15,751 | -15,751 | |
Non-derivative hedging instruments-gain or (loss) recognized in other income | $0 | $0 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities-Realized & Unrealized (Details) (Forward foreign exchange contracts [Member], Other Income [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Forward foreign exchange contracts [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized | ($3,960) | $5,915 |
Unrealized | 11,868 | -1,479 |
Total | $7,908 | $4,436 |
Debt_Table_Details
Debt Table (Details) (USD $) | Mar. 01, 2015 | Nov. 30, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $1,091,622 | $1,092,478 |
Short-term debt | 33,847 | 131,524 |
Long-term and short-term debt | 1,125,469 | 1,224,002 |
Unsecured: [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | 1,091,622 | 1,092,478 |
4.25% Yen-denominated Eurobonds, due 2016 [Member] | Bonds [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | 33,498 | 33,985 |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
7.625% senior notes due 2020 [Member] | Senior notes [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | 525,000 | 525,000 |
Debt Instrument, Interest Rate, Stated Percentage | 7.63% | |
6.875% senior notes due 2022 [Member] | Senior notes [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | 533,124 | 533,493 |
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |
Senior revolving credit facility [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Short-term debt | 0 | 100,000 |
Short-term borrowings [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Short-term debt | $33,847 | $31,524 |
Debt_Textuals_Details
Debt Textuals (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Debt Instruments [Line Items] | ||
Weighted-average interest rate | 7.55% | 7.91% |
Senior revolving credit facility [Member] | ||
Debt Instruments [Line Items] | ||
Unused availability | 717 | |
Line of Credit Facility, Current Borrowing Capacity | 776.2 | |
Letters of credit and other credit usage | -59.2 | |
Senior notes [Member] | 6.875% senior notes due 2022 [Member] | ||
Debt Instruments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |
Senior revolving credit facility [Member] | ||
Debt Instruments [Line Items] | ||
Short-term Debt | 50 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Changes in accumulated other comprehensive loss: | ||
Total recognized in accumulated other comprehensive loss | ($4,099) | ($2,302) |
Pension Benefits [Member] | ||
Net periodic benefit cost (income): | ||
Service cost | 2,128 | 2,159 |
Interest cost | 11,840 | 13,761 |
Expected return on plan assets | -12,717 | -13,843 |
Amortization of prior service benefit | -16 | -17 |
Amortization of actuarial loss | 3,160 | 2,696 |
Curtailment loss | 335 | 232 |
Net settlement loss | 0 | 60 |
Net periodic benefit cost | 4,730 | 5,048 |
Changes in accumulated other comprehensive loss: | ||
Amortization of prior service benefit | 16 | 17 |
Amortization of actuarial loss | -3,160 | -2,696 |
Curtailment gain (loss) | -335 | 0 |
Net settlement loss | 0 | -25 |
Total recognized in accumulated other comprehensive loss | -3,479 | -2,704 |
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | 1,251 | 2,344 |
Postretirement Benefits [Member] | ||
Net periodic benefit cost (income): | ||
Service cost | 63 | 68 |
Interest cost | 1,147 | 1,338 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service benefit | 0 | -1 |
Amortization of actuarial loss | 1,128 | 989 |
Curtailment loss | 0 | 700 |
Net settlement loss | 0 | 0 |
Net periodic benefit cost | 2,338 | 3,094 |
Changes in accumulated other comprehensive loss: | ||
Amortization of prior service benefit | 0 | 1 |
Amortization of actuarial loss | -1,128 | -989 |
Curtailment gain (loss) | 0 | 0 |
Net settlement loss | 0 | 0 |
Total recognized in accumulated other comprehensive loss | -1,128 | -988 |
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $1,210 | $2,106 |
Restructuring_Liabilities_Text
Restructuring Liabilities Textuals (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Restructuring and Related Activities [Abstract] | ||
Restructuring Charges | $4,338 | $57,935 |
Corporate and Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other General and Administrative Expense | $8,007 | $6,441 |
Restructuring_Charges_Table_De
Restructuring Charges Table (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Initial Restructuring Charge | $5,734 | $56,978 | ||
Restructuring Reserve, Accrual Adjustment | -1,731 | 0 | ||
Noncash restructuring charges | 335 | [1] | 957 | [1] |
Restructuring Charges | 4,338 | 57,935 | ||
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Initial Restructuring Charge | 5,320 | [2] | 51,321 | [2] |
Restructuring Reserve, Accrual Adjustment | -1,249 | 0 | ||
Contract Termination [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Initial Restructuring Charge | 0 | 0 | ||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Initial Restructuring Charge | 414 | [3] | 5,657 | [3] |
Restructuring Reserve, Accrual Adjustment | ($482) | $0 | ||
[1] | Noncash pension and postretirement curtailment gains or losses resulting from the global productivity initiative are included in restructuring charges, with the associated liabilities included in "Pension liability" and "Postretirement medical benefits" in the Company's consolidated balance sheets. | |||
[2] | Severance and employee-related benefits relate to items such as severance, based on separation benefits provided by Company policy or statutory benefit plans, out-placement services and career counseling for employees affected by the global productivity initiative. | |||
[3] | Other restructuring costs are expensed as incurred and primarily relate to consulting fees and legal expenses associated with the execution of the restructuring initiative. |
Restructuring_Liabilities_Tabl
Restructuring Liabilities Table (Details) (USD $) | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 | Nov. 30, 2014 | Nov. 24, 2013 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve, Current | $42,596 | $56,978 | $57,817 | $0 | ||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | 63,363 | 0 | ||||
Initial Restructuring Charge | 5,734 | 56,978 | ||||
Restructuring Reserve, Accrual Adjustment | -1,731 | 0 | ||||
Payments for Restructuring | -20,012 | 0 | ||||
Restructuring Reserve, Translation Adjustment | -3,738 | 0 | ||||
Restructuring Reserve | 43,616 | 56,978 | ||||
Restructuring Reserve, Noncurrent | 1,020 | 0 | 5,546 | 0 | ||
Employee Severance [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | 56,963 | 0 | ||||
Initial Restructuring Charge | 5,320 | [1] | 51,321 | [1] | ||
Restructuring Reserve, Accrual Adjustment | -1,249 | 0 | ||||
Payments for Restructuring | -13,681 | 0 | ||||
Restructuring Reserve, Translation Adjustment | -3,738 | 0 | ||||
Restructuring Reserve | 43,615 | 51,321 | ||||
Contract Termination [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | 0 | 0 | ||||
Initial Restructuring Charge | 0 | 0 | ||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | ||||
Payments for Restructuring | 0 | 0 | ||||
Restructuring Reserve, Translation Adjustment | 0 | 0 | ||||
Restructuring Reserve | 0 | 0 | ||||
Other Restructuring [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | 6,400 | 0 | ||||
Initial Restructuring Charge | 414 | [2] | 5,657 | [2] | ||
Restructuring Reserve, Accrual Adjustment | -482 | 0 | ||||
Payments for Restructuring | -6,331 | 0 | ||||
Restructuring Reserve, Translation Adjustment | 0 | 0 | ||||
Restructuring Reserve | $1 | $5,657 | ||||
[1] | Severance and employee-related benefits relate to items such as severance, based on separation benefits provided by Company policy or statutory benefit plans, out-placement services and career counseling for employees affected by the global productivity initiative. | |||||
[2] | Other restructuring costs are expensed as incurred and primarily relate to consulting fees and legal expenses associated with the execution of the restructuring initiative. |
Dividend_Details
Dividend (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 01, 2015 |
Dividends [Abstract] | |
Cash dividend declared | $50 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Mar. 01, 2015 | Nov. 30, 2014 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ||
Pension and postretirement benefits | ($257,355) | ($261,454) |
Net investment hedge losses | -21,634 | -21,721 |
Foreign currency translation losses | -96,838 | -85,362 |
Unrealized gain on marketable securities | 2,304 | 2,234 |
Accumulated other comprehensive loss | -373,523 | -366,303 |
Accumulated other comprehensive income attributable to noncontrolling interest | 9,014 | 9,037 |
Accumulated other comprehensive loss attributable to Levi Strauss & Co. | ($382,537) | ($375,340) |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 | ||
Other Income and Expenses [Abstract] | ||||
Foreign exchange management gains(1) | $7,908 | [1] | $4,436 | [1] |
Foreign currency transaction losses(2) | -35,959 | [2] | -2,238 | [2] |
Interest income | 460 | 627 | ||
Investment income | 439 | 307 | ||
Other | 1,124 | 1,051 | ||
Total other income (expense), net | ($26,028) | $4,183 | ||
[1] | Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2015 were primarily due to favorable currency fluctuations relative to negotiated contracts rates on positions to sell the Mexican Peso. | |||
[2] | Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in 2015 were primarily due to the weakening of various foreign currencies, particularly the Euro, against the U.S. Dollar. |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 01, 2015 | Feb. 23, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective rate | 34.10% | 24.80% |
Related_Parties_Details
Related Parties (Details) (Levi Strauss Foundation [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Levi Strauss Foundation [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Donations | $5.90 | $5.20 |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 01, 2015 | Feb. 23, 2014 |
Regional_Segments | ||
Segment Reporting Information [Line Items] | ||
Number of operating segments | 3 | |
Net revenues | $1,055,075 | $1,129,990 |
Operating income | 107,445 | 93,656 |
Restructuring Charges | 4,338 | 57,935 |
Interest expense | -23,312 | -31,829 |
Other income (expense), net | -26,028 | 4,183 |
Income before income taxes | 58,105 | 66,010 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Other General and Administrative Expense | 8,007 | 6,441 |
Other Selling, General and Administrative Expense | 88,031 | 71,328 |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 100,376 | 135,704 |
Regional operating income [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 207,821 | 229,360 |
AMEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 203,500 | 202,728 |
Operating income | 47,340 | 46,902 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 277,488 | 300,426 |
Operating income | 58,189 | 71,406 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 574,087 | 626,836 |
Operating income | $102,292 | $111,052 |