Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Feb. 28, 2016 | Apr. 07, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LEVI STRAUSS & CO | |
Entity Central Index Key | 94,845 | |
Document Type | 10-Q | |
Document Period End Date | Feb. 28, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --11-27 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,452,319 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2016 | Nov. 29, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 271,101 | $ 318,571 |
Trade receivables, net of allowance for doubtful accounts of $11,043 and $11,025 | 388,620 | 498,196 |
Inventories: | ||
Raw materials | 3,382 | 3,368 |
Work-in-process | 3,696 | 3,031 |
Finished goods | 733,213 | 600,460 |
Total inventories | 740,291 | 606,859 |
Other current assets | 109,410 | 104,523 |
Total current assets | 1,509,422 | 1,528,149 |
Property, plant and equipment, net of accumulated depreciation of $825,536 and $811,013 | 386,272 | 390,829 |
Goodwill | 235,541 | 235,041 |
Other intangible assets, net | 43,170 | 43,350 |
Non-current deferred tax assets, net | 569,936 | 580,640 |
Other non-current assets | 93,890 | 106,386 |
Total assets | 2,838,231 | 2,884,395 |
Current Liabilities: | ||
Short-term debt | 40,779 | 114,978 |
Long-term Debt, Current Maturities | 35,394 | 32,625 |
Accounts payable | 267,033 | 238,309 |
Accrued salaries, wages and employee benefits | 133,269 | 182,430 |
Restructuring liabilities | 15,736 | 20,141 |
Accrued interest payable | 21,004 | 5,510 |
Accrued income taxes | 17,190 | 6,567 |
Other accrued liabilities | 296,516 | 245,607 |
Total current liabilities | 826,921 | 846,167 |
Long-term debt | 1,005,243 | 1,004,938 |
Long-term capital leases | 12,466 | 12,320 |
Postretirement medical benefits | 102,071 | 105,240 |
Pension liability | 348,921 | 358,443 |
Long-term employee related benefits | 59,938 | 73,342 |
Long-term income tax liabilities | 27,359 | 26,312 |
Other long-term liabilities | 57,140 | 56,987 |
Total liabilities | $ 2,440,059 | $ 2,483,749 |
Commitments and contingencies | ||
Temporary equity | $ 76,538 | $ 68,783 |
Levi Strauss & Co. stockholders’ equity | ||
Common stock — $.01 par value; 270,000,000 shares authorized; 37,460,145 shares and 37,460,145 shares issued and outstanding | 375 | 375 |
Additional paid-in capital | 0 | 3,291 |
Retained earnings | 705,985 | 705,668 |
Accumulated other comprehensive loss | (386,995) | (379,066) |
Total Levi Strauss & Co. stockholders’ equity | 319,365 | 330,268 |
Noncontrolling interest | 2,269 | 1,595 |
Total stockholders’ equity | 321,634 | 331,863 |
Total liabilities, temporary equity and stockholders’ equity | $ 2,838,231 | $ 2,884,395 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2016 | Nov. 29, 2015 |
ASSETS | ||
Accumulated depreciation | $ 825,536 | $ 811,013 |
Current Assets: | ||
Allowance for doubtful accounts | $ 11,043 | $ 11,025 |
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 | 37,460,145 | 37,460,145 |
Common stock, shares outstanding | 37,460,145 | 37,460,145 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2016 | Mar. 01, 2015 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,056,500 | $ 1,055,075 |
Cost of goods sold | 496,902 | 518,010 |
Gross profit | 559,598 | 537,065 |
Selling, general and administrative expenses | 441,163 | 425,282 |
Restructuring, net | 1,848 | 4,338 |
Operating income | 116,587 | 107,445 |
Interest expense | (14,902) | (23,312) |
Other expense, net | (2,219) | (26,028) |
Income before income taxes | 99,466 | 58,105 |
Income tax expense | 33,175 | 19,822 |
Net income | 66,291 | 38,283 |
Net (income) loss attributable to noncontrolling interest | (455) | 109 |
Net income attributable to Levi Strauss & Co. | $ 65,836 | $ 38,392 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2016 | Mar. 01, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 66,291 | $ 38,283 |
Pension and postretirement benefits | 3,582 | 4,607 |
Net investment hedge (losses) gains | (664) | 141 |
Foreign currency translation losses | (7,575) | (10,532) |
Unrealized (losses) gains on marketable securities | (1,829) | 113 |
Total other comprehensive loss, before related income taxes | (6,486) | (5,671) |
Income tax expense related to items of other comprehensive income | (1,224) | (1,549) |
Comprehensive income, net of income taxes | 58,581 | 31,063 |
Comprehensive (income) loss attributable to noncontrolling interest | (674) | 132 |
Comprehensive income attributable to Levi Strauss & Co. | $ 57,907 | $ 31,195 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2016 | Mar. 01, 2015 | ||
Cash Flows from Operating Activities: | |||
Net income | $ 66,291 | $ 38,283 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 25,111 | 26,475 | |
Asset impairments | 459 | 184 | |
(Gain) loss on disposal of assets | (12) | 26 | |
Unrealized foreign exchange losses | 8,348 | 7,489 | |
Realized (gain) loss on settlement of forward foreign exchange contracts not designated for hedge accounting | (12,967) | 3,960 | |
Employee benefit plans’ amortization from accumulated other comprehensive loss | 3,734 | 4,272 | |
Noncash restructuring charges | [1] | 0 | 335 |
Amortization of premium, discount and debt issuance costs | 620 | 557 | |
Stock-based compensation | (1,053) | 3,600 | |
Allowance for doubtful accounts | 498 | 519 | |
Change in operating assets and liabilities: | |||
Trade receivables | 104,777 | 129,587 | |
Inventories | (134,923) | 30,939 | |
Other current assets | (2,758) | (12,647) | |
Other non-current assets | (1,425) | 746 | |
Accounts payable and other accrued liabilities | 49,462 | (106,432) | |
Restructuring Liabilities | (5,614) | (16,009) | |
Income tax liabilities | 23,654 | 409 | |
Accrued salaries, wages and employee benefits and long-term employee related benefits | (78,302) | (74,484) | |
Other long-term liabilities | 178 | (201) | |
Other, net | 0 | 21 | |
Net cash provided by operating activities | 46,078 | 37,629 | |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (30,746) | (21,152) | |
Proceeds from sales of assets | 21 | 11 | |
Proceeds (payments) on settlement of forward foreign exchange contracts not designated for hedge accounting | 12,967 | (3,960) | |
Net cash used for investing activities | (17,758) | (25,101) | |
Cash Flows from Financing Activities: | |||
Repayments of capital leases | 781 | 741 | |
Proceeds from senior revolving credit facility | 75,000 | 35,000 | |
Repayments of senior revolving credit facility | (154,000) | (135,000) | |
Proceeds from short-term credit facilities | 9,208 | 7,753 | |
Repayments of short-term credit facilities | (6,763) | (5,045) | |
Other short-term borrowings, net | 3,102 | 689 | |
Change in restricted cash, net | 663 | 736 | |
Excess tax benefits from stock-based compensation | 0 | 75 | |
Net cash used for financing activities | (73,571) | (96,533) | |
Effect of exchange rate changes on cash and cash equivalents | (2,219) | (11,520) | |
Net decrease in cash and cash equivalents | (47,470) | (95,525) | |
Beginning cash and cash equivalents | 318,571 | 298,255 | |
Ending cash and cash equivalents | 271,101 | ||
Noncash Investing and Financing Items [Abstract] | |||
Purchases of property, plant and equipment not yet paid at end of period | 14,244 | 9,993 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest during the period | 1,176 | 2,020 | |
Cash paid for income taxes during the period, net of refunds | $ 11,164 | $ 18,049 | |
[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" on the Company's consolidated balance sheets. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2016 | |
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 29, 2015 , included in the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (“SEC”) on February 11, 2016. 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 February 28, 2016 , may not be indicative of the results to be expected for any other interim period or the year ending November 27, 2016 . 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 2016 and 2015 consists of 13 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. The Company's consolidated statements of comprehensive income has been reclassified to present the components of other comprehensive income before related income tax effects with one amount shown for aggregate income tax expense related to the total of other comprehensive income items. Amounts were previously presented net of related income tax effects. There was no change to total comprehensive income, net of income taxes, and the change was immaterial to the financial statements taken as a whole. 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 and footnote disclosures, from those disclosed in the Company’s 2015 Annual Report on Form 10-K, except for the following, which have been grouped by their effective dates for the Company: First Quarter of 2018 • In March 2016, the FASB issued Accounting Standards Update No. 2016-06, Derivatives and Hedging (Topic 815) – Contingent Put and Call Options in Debt Instruments (“ASU 2016-06”), which will reduce diversity of practice in identifying embedded derivatives in debt instruments. ASU 2016-06 clarifies that the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. • In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. First Quarter of 2019 • In March 2016, the FASB issued Accounting Standards Update No. 2016-04, Liabilities – Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products (“ASU 2016-04”). ASU 2016-04 aligns recognition of the financial liabilities related to prepaid stored-value products (for example, prepaid gift cards), with Topic 606, Revenues from Contracts with Customers, for non-financial liabilities. In general, certain or these liabilities may be extinguished proportionally in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. • In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. First Quarter of 2020 • In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Feb. 28, 2016 | |
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: February 28, 2016 November 29, 2015 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 thousands) Financial assets carried at fair value Rabbi trust assets $ 24,892 $ 24,892 $ — $ 26,013 $ 26,013 $ — Forward foreign exchange contracts, net (3) 19,741 — 19,741 27,131 — 27,131 Total $ 44,633 $ 24,892 $ 19,741 $ 53,144 $ 26,013 $ 27,131 Financial liabilities carried at fair value Forward foreign exchange contracts, net (3) $ 9,373 $ — $ 9,373 $ 7,809 $ — $ 7,809 _____________ (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: February 28, 2016 November 29, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (Dollars in thousands) Financial liabilities carried at adjusted historical cost Senior revolving credit facility $ 20,031 $ 20,031 $ 99,020 $ 99,020 4.25% Yen-denominated Eurobonds due 2016 (1) 35,861 36,480 32,736 33,593 6.875% senior notes due 2022 (1) 536,519 575,871 527,715 570,355 5.00% senior notes due 2025 (1) 488,749 486,347 482,145 480,945 Short-term borrowings 20,806 20,806 15,996 15,996 Total $ 1,101,966 $ 1,139,535 $ 1,157,612 $ 1,199,909 _____________ (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 Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Feb. 28, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As of February 28, 2016 , the Company had forward foreign exchange contracts to buy $725.7 million and to sell $271.0 million against various foreign currencies. These contracts are at various exchange rates and expire at various dates through November 2017. The table below provides data about the carrying values of derivative instruments and non-derivative instruments: February 28, 2016 November 29, 2015 Assets (Liabilities) Derivative Net Carrying Value Assets (Liabilities) Derivative Net Carrying Value Carrying Value Carrying Value Carrying Value Carrying Value (Dollars in thousands) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 25,123 $ (5,382 ) $ 19,741 $ 31,808 $ (4,677 ) $ 27,131 Forward foreign exchange contracts (2) 1,668 (11,041 ) (9,373 ) 253 (8,062 ) (7,809 ) Total $ 26,791 $ (16,423 ) $ 32,061 $ (12,739 ) Non-derivatives designated as hedging instruments Yen-denominated Eurobonds $ — $ (8,496 ) $ — $ (7,832 ) _____________ (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: February 28, 2016 November 29, 2015 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 $ 26,211 $ (7,050 ) $ 19,161 $ 30,837 $ (4,930 ) $ 25,907 Financial liabilities (9,690 ) 7,050 (2,640 ) (7,599 ) 4,930 (2,669 ) Total $ 16,521 $ 23,238 Embedded derivative contracts Financial assets $ 580 $ — $ 580 $ 1,224 $ — $ 1,224 Financial liabilities (6,733 ) — (6,733 ) (5,140 ) — (5,140 ) Total $ (6,153 ) $ (3,916 ) 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 expense, net” in the Company’s consolidated statements of income: Gain or (Loss) Recognized in AOCI (Effective Portion) Gain or (Loss) Recognized in Other expense, net (Ineffective Portion and Amount Excluded from Effectiveness Testing) As of As of Three Months Ended February 28, November 29, February 28, March 1, (Dollars in thousands) Forward foreign exchange contracts $ 4,637 $ 4,637 Yen-denominated Eurobonds (19,646 ) (18,982 ) $ (2,103 ) $ 346 Euro senior notes (15,751 ) (15,751 ) — — Cumulative income taxes 12,104 11,849 Total $ (18,656 ) $ (18,247 ) The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in “Other expense, net” in the Company’s consolidated statements of income: Gain or (Loss) Three Months Ended February 28, March 1, (Dollars in thousands) Forward foreign exchange contracts: Realized $ 12,967 $ (3,960 ) Unrealized (9,231 ) 11,868 Total $ 3,736 $ 7,908 |
Debt
Debt | 3 Months Ended |
Feb. 28, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT February 28, November 29, (Dollars in thousands) Long-term debt Unsecured: 6.875% senior notes due 2022 524,689 524,807 5.00% senior notes due 2025 480,554 480,131 Total unsecured long-term debt $ 1,005,243 $ 1,004,938 Short-term debt and current maturities of long-term debt Secured: Senior revolving credit facility $ 20,000 $ 99,000 Unsecured: Current maturities of 4.25% Yen-denominated Eurobonds due 2016 35,394 32,625 Short-term borrowings 20,779 15,978 Total short-term debt and current maturities of long-term debt $ 76,173 $ 147,603 Total debt $ 1,081,416 $ 1,152,541 Senior Revolving Credit Facility The Company’s unused availability under its senior secured revolving credit facility was $739.7 million at February 28, 2016 , as the Company’s total availability of $798.2 million was reduced by $58.5 million of letters of credit and other credit usage allocated under the credit facility. Interest Rates on Borrowings The Company’s weighted-average interest rate on average borrowings outstanding during the three months ended February 28, 2016 , was 6.26% as compared to 7.65% in the same period of 2015 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Feb. 28, 2016 | |
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 February 28, March 1, February 28, March 1, (Dollars in thousands) Net periodic benefit cost: Service cost $ 2,058 $ 2,128 $ 50 $ 63 Interest cost (1) 9,472 11,840 806 1,147 Expected return on plan assets (12,134 ) (12,717 ) — — Amortization of prior service benefit (15 ) (16 ) — — Amortization of actuarial loss 3,007 3,160 742 1,128 Curtailment loss — 335 — — Net periodic benefit cost 2,388 4,730 1,598 2,338 Changes in accumulated other comprehensive loss: Actuarial loss 152 — — — Amortization of prior service benefit 15 16 — — Amortization of actuarial loss (3,007 ) (3,160 ) (742 ) (1,128 ) Curtailment loss — (335 ) — — Total recognized in accumulated other comprehensive loss (2,840 ) (3,479 ) (742 ) (1,128 ) Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ (452 ) $ 1,251 $ 856 $ 1,210 _____________ (1) The decrease in interest cost is primarily due to the election made at the end of 2015 to adopt the spot-rate approach to determine the interest cost component of pension and postretirement expense. |
Restructuring
Restructuring | 3 Months Ended |
Feb. 28, 2016 | |
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 Company expects that the majority of the actions related to the global productivity initiative will be implemented through the end of 2016, 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 February 28, 2016 , the Company recognized restructuring charges, net, of $1.8 million , as compared to $4.3 million for the same period in 2015 . These restructuring charges were recorded in "Restructuring, net" in the Company's consolidated statements of income. Related charges of $1.5 million for the three months ended February 28, 2016 , as compared to $8.0 million for the same period in 2015 , 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 are expected to 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 recognized to date are expected to continue through 2017. The table below summarizes the components of charges included in “Restructuring, net” in the Company’s consolidated statements of income: Three Months Ended February 28, March 1, (Dollars in thousands) Restructuring, net: Severance and employee-related benefits (1) $ 1,445 $ 5,320 Adjustments to severance and employee-related benefits 279 (1,249 ) Lease and other contract termination costs — — Other (2) 124 414 Adjustments to other — (482 ) Noncash pension and postretirement curtailment losses, net (3) — 335 Total $ 1,848 $ 4,338 _____________ (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" on 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. The following table summarizes the activities associated with restructuring liabilities for the three months ended February 28, 2016 , and 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 February 28, 2016 Liabilities Adjustments Foreign Currency Fluctuation Liabilities November 29, 2015 Charges Payments February 28, 2016 (Dollars in thousands) Severance and employee-related benefits $ 20,774 $ 1,445 $ 279 $ (7,339 ) $ 515 $ 15,674 Lease and other contract termination costs — — — — — — Other 964 124 — (124 ) — 964 Total $ 21,738 $ 1,569 $ 279 $ (7,463 ) $ 515 $ 16,638 Current portion $ 20,141 $ 15,736 Long-term portion 1,597 902 Total $ 21,738 $ 16,638 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 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Feb. 28, 2016 | |
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 2015 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 |
Feb. 28, 2016 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND The Company's Board of Directors (the “Board”) declared a cash dividend of $60.0 million in the first quarter of 2016 , payable in the second quarter of 2016 to stockholders of record at the close of business on February 19, 2016. Dividend payable is included in "Other accrued liabilities" on the Company's consolidated balance sheets. Subsequent to the Company's quarter-end, on April 7, 2016, 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 Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Feb. 28, 2016 | |
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: February 28, November 29, (Dollars in thousands) Pension and postretirement benefits $ (234,166 ) $ (236,340 ) Net investment hedge losses (18,656 ) (18,247 ) Foreign currency translation losses (125,743 ) (117,394 ) Unrealized gains on marketable securities 754 1,880 Accumulated other comprehensive loss (377,811 ) (370,101 ) Accumulated other comprehensive income attributable to noncontrolling interest 9,184 8,965 Accumulated other comprehensive loss attributable to Levi Strauss & Co. $ (386,995 ) $ (379,066 ) No material 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 Company's consolidated statements of income. |
Other Expense, Net
Other Expense, Net | 3 Months Ended |
Feb. 28, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE, NET | OTHER EXPENSE, NET The following table summarizes significant components of “Other expense, net”: Three Months Ended February 28, March 1, (Dollars in thousands) Foreign exchange management gains (1) $ 3,736 $ 7,908 Foreign currency transaction losses (2) (8,203 ) (35,959 ) Interest income 209 460 Investment income 708 439 Other 1,331 1,124 Total other expense, net $ (2,219 ) $ (26,028 ) _____________ (1) Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2016 and 2015 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, partially offset in 2016 by unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro. (2) Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in 2016 were primarily due to the weakening of various currencies against the Euro. 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 |
Feb. 28, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rate was 33.4% for the three months ended February 28, 2016 , compared to 34.1% for the same period ended March 1, 2015 . |
Related Parties
Related Parties | 3 Months Ended |
Feb. 28, 2016 | |
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 February 28, 2016 , the Company donated $0.3 million to the Levi Strauss Foundation as compared to $5.9 million for the same prior-year period. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Feb. 28, 2016 | |
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. Business segment information for the Company is as follows: Three Months Ended February 28, March 1, (Dollars in thousands) Net revenues: Americas $ 571,185 $ 574,087 Europe 276,486 277,488 Asia 208,829 203,500 Total net revenues $ 1,056,500 $ 1,055,075 Operating income: Americas $ 81,749 $ 102,292 Europe 61,709 58,189 Asia 46,605 47,340 Regional operating income 190,063 207,821 Corporate: Restructuring, net 1,848 4,338 Restructuring-related charges 1,497 8,007 Other corporate staff costs and expenses 70,131 88,031 Corporate expenses 73,476 100,376 Total operating income 116,587 107,445 Interest expense (14,902 ) (23,312 ) Other expense, net (2,219 ) (26,028 ) Income before income taxes $ 99,466 $ 58,105 |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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 2016 and 2015 consists of 13 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. |
Reclassifications [Text Block] | The Company's consolidated statements of comprehensive income has been reclassified to present the components of other comprehensive income before related income tax effects with one amount shown for aggregate income tax expense related to the total of other comprehensive income items. Amounts were previously presented net of related income tax effects. There was no change to total comprehensive income, net of income taxes, and the change was immaterial to the financial statements taken as a whole. |
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 and footnote disclosures, from those disclosed in the Company’s 2015 Annual Report on Form 10-K, except for the following, which have been grouped by their effective dates for the Company: First Quarter of 2018 • In March 2016, the FASB issued Accounting Standards Update No. 2016-06, Derivatives and Hedging (Topic 815) – Contingent Put and Call Options in Debt Instruments (“ASU 2016-06”), which will reduce diversity of practice in identifying embedded derivatives in debt instruments. ASU 2016-06 clarifies that the nature of an exercise contingency is not subject to the “clearly and closely” criteria for purposes of assessing whether the call or put option must be separated from the debt instrument and accounted for separately as a derivative. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. • In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. First Quarter of 2019 • In March 2016, the FASB issued Accounting Standards Update No. 2016-04, Liabilities – Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products (“ASU 2016-04”). ASU 2016-04 aligns recognition of the financial liabilities related to prepaid stored-value products (for example, prepaid gift cards), with Topic 606, Revenues from Contracts with Customers, for non-financial liabilities. In general, certain or these liabilities may be extinguished proportionally in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. • In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. First Quarter of 2020 • In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 must be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and footnote disclosures. |
Fair Value of Financial Instr21
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Feb. 28, 2016 | |
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: February 28, 2016 November 29, 2015 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 thousands) Financial assets carried at fair value Rabbi trust assets $ 24,892 $ 24,892 $ — $ 26,013 $ 26,013 $ — Forward foreign exchange contracts, net (3) 19,741 — 19,741 27,131 — 27,131 Total $ 44,633 $ 24,892 $ 19,741 $ 53,144 $ 26,013 $ 27,131 Financial liabilities carried at fair value Forward foreign exchange contracts, net (3) $ 9,373 $ — $ 9,373 $ 7,809 $ — $ 7,809 _____________ (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: February 28, 2016 November 29, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (Dollars in thousands) Financial liabilities carried at adjusted historical cost Senior revolving credit facility $ 20,031 $ 20,031 $ 99,020 $ 99,020 4.25% Yen-denominated Eurobonds due 2016 (1) 35,861 36,480 32,736 33,593 6.875% senior notes due 2022 (1) 536,519 575,871 527,715 570,355 5.00% senior notes due 2025 (1) 488,749 486,347 482,145 480,945 Short-term borrowings 20,806 20,806 15,996 15,996 Total $ 1,101,966 $ 1,139,535 $ 1,157,612 $ 1,199,909 _____________ (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 He22
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Feb. 28, 2016 | |
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: February 28, 2016 November 29, 2015 Assets (Liabilities) Derivative Net Carrying Value Assets (Liabilities) Derivative Net Carrying Value Carrying Value Carrying Value Carrying Value Carrying Value (Dollars in thousands) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 25,123 $ (5,382 ) $ 19,741 $ 31,808 $ (4,677 ) $ 27,131 Forward foreign exchange contracts (2) 1,668 (11,041 ) (9,373 ) 253 (8,062 ) (7,809 ) Total $ 26,791 $ (16,423 ) $ 32,061 $ (12,739 ) Non-derivatives designated as hedging instruments Yen-denominated Eurobonds $ — $ (8,496 ) $ — $ (7,832 ) _____________ (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: February 28, 2016 November 29, 2015 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 $ 26,211 $ (7,050 ) $ 19,161 $ 30,837 $ (4,930 ) $ 25,907 Financial liabilities (9,690 ) 7,050 (2,640 ) (7,599 ) 4,930 (2,669 ) Total $ 16,521 $ 23,238 Embedded derivative contracts Financial assets $ 580 $ — $ 580 $ 1,224 $ — $ 1,224 Financial liabilities (6,733 ) — (6,733 ) (5,140 ) — (5,140 ) Total $ (6,153 ) $ (3,916 ) |
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 expense, net” in the Company’s consolidated statements of income: Gain or (Loss) Recognized in AOCI (Effective Portion) Gain or (Loss) Recognized in Other expense, net (Ineffective Portion and Amount Excluded from Effectiveness Testing) As of As of Three Months Ended February 28, November 29, February 28, March 1, (Dollars in thousands) Forward foreign exchange contracts $ 4,637 $ 4,637 Yen-denominated Eurobonds (19,646 ) (18,982 ) $ (2,103 ) $ 346 Euro senior notes (15,751 ) (15,751 ) — — Cumulative income taxes 12,104 11,849 Total $ (18,656 ) $ (18,247 ) |
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 expense, net” in the Company’s consolidated statements of income: Gain or (Loss) Three Months Ended February 28, March 1, (Dollars in thousands) Forward foreign exchange contracts: Realized $ 12,967 $ (3,960 ) Unrealized (9,231 ) 11,868 Total $ 3,736 $ 7,908 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Feb. 28, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term and short-term debt instruments | February 28, November 29, (Dollars in thousands) Long-term debt Unsecured: 6.875% senior notes due 2022 524,689 524,807 5.00% senior notes due 2025 480,554 480,131 Total unsecured long-term debt $ 1,005,243 $ 1,004,938 Short-term debt and current maturities of long-term debt Secured: Senior revolving credit facility $ 20,000 $ 99,000 Unsecured: Current maturities of 4.25% Yen-denominated Eurobonds due 2016 35,394 32,625 Short-term borrowings 20,779 15,978 Total short-term debt and current maturities of long-term debt $ 76,173 $ 147,603 Total debt $ 1,081,416 $ 1,152,541 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Feb. 28, 2016 | |
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 February 28, March 1, February 28, March 1, (Dollars in thousands) Net periodic benefit cost: Service cost $ 2,058 $ 2,128 $ 50 $ 63 Interest cost (1) 9,472 11,840 806 1,147 Expected return on plan assets (12,134 ) (12,717 ) — — Amortization of prior service benefit (15 ) (16 ) — — Amortization of actuarial loss 3,007 3,160 742 1,128 Curtailment loss — 335 — — Net periodic benefit cost 2,388 4,730 1,598 2,338 Changes in accumulated other comprehensive loss: Actuarial loss 152 — — — Amortization of prior service benefit 15 16 — — Amortization of actuarial loss (3,007 ) (3,160 ) (742 ) (1,128 ) Curtailment loss — (335 ) — — Total recognized in accumulated other comprehensive loss (2,840 ) (3,479 ) (742 ) (1,128 ) Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ (452 ) $ 1,251 $ 856 $ 1,210 _____________ (1) The decrease in interest cost is primarily due to the election made at the end of 2015 to adopt the spot-rate approach to determine the interest cost component of pension and postretirement expense. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Feb. 28, 2016 | |
Restructuring Liabilities Disclosures [Abstract] | |
Components of Charges Included in Restructuring, net | The table below summarizes the components of charges included in “Restructuring, net” in the Company’s consolidated statements of income: Three Months Ended February 28, March 1, (Dollars in thousands) Restructuring, net: Severance and employee-related benefits (1) $ 1,445 $ 5,320 Adjustments to severance and employee-related benefits 279 (1,249 ) Lease and other contract termination costs — — Other (2) 124 414 Adjustments to other — (482 ) Noncash pension and postretirement curtailment losses, net (3) — 335 Total $ 1,848 $ 4,338 _____________ (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" on the Company's consolidated balance sheets. |
Restructuring Liability Rollforward | The following table summarizes the activities associated with restructuring liabilities for the three months ended February 28, 2016 , and 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 February 28, 2016 Liabilities Adjustments Foreign Currency Fluctuation Liabilities November 29, 2015 Charges Payments February 28, 2016 (Dollars in thousands) Severance and employee-related benefits $ 20,774 $ 1,445 $ 279 $ (7,339 ) $ 515 $ 15,674 Lease and other contract termination costs — — — — — — Other 964 124 — (124 ) — 964 Total $ 21,738 $ 1,569 $ 279 $ (7,463 ) $ 515 $ 16,638 Current portion $ 20,141 $ 15,736 Long-term portion 1,597 902 Total $ 21,738 $ 16,638 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 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Feb. 28, 2016 | |
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: February 28, November 29, (Dollars in thousands) Pension and postretirement benefits $ (234,166 ) $ (236,340 ) Net investment hedge losses (18,656 ) (18,247 ) Foreign currency translation losses (125,743 ) (117,394 ) Unrealized gains on marketable securities 754 1,880 Accumulated other comprehensive loss (377,811 ) (370,101 ) Accumulated other comprehensive income attributable to noncontrolling interest 9,184 8,965 Accumulated other comprehensive loss attributable to Levi Strauss & Co. $ (386,995 ) $ (379,066 ) |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 3 Months Ended |
Feb. 28, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | The following table summarizes significant components of “Other expense, net”: Three Months Ended February 28, March 1, (Dollars in thousands) Foreign exchange management gains (1) $ 3,736 $ 7,908 Foreign currency transaction losses (2) (8,203 ) (35,959 ) Interest income 209 460 Investment income 708 439 Other 1,331 1,124 Total other expense, net $ (2,219 ) $ (26,028 ) _____________ (1) Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2016 and 2015 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, partially offset in 2016 by unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro. (2) Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in 2016 were primarily due to the weakening of various currencies against the Euro. 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 |
Feb. 28, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Business segment information for the Company is as follows: Three Months Ended February 28, March 1, (Dollars in thousands) Net revenues: Americas $ 571,185 $ 574,087 Europe 276,486 277,488 Asia 208,829 203,500 Total net revenues $ 1,056,500 $ 1,055,075 Operating income: Americas $ 81,749 $ 102,292 Europe 61,709 58,189 Asia 46,605 47,340 Regional operating income 190,063 207,821 Corporate: Restructuring, net 1,848 4,338 Restructuring-related charges 1,497 8,007 Other corporate staff costs and expenses 70,131 88,031 Corporate expenses 73,476 100,376 Total operating income 116,587 107,445 Interest expense (14,902 ) (23,312 ) Other expense, net (2,219 ) (26,028 ) Income before income taxes $ 99,466 $ 58,105 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments-Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Feb. 28, 2016 | Nov. 29, 2015 | |
Financial assets carried at fair value | |||
Rabbi trust assets | $ 24,892 | $ 26,013 | |
Forward foreign exchange contracts, net | [1] | 19,741 | 27,131 |
Total | 44,633 | 53,144 | |
Financial liabilities carried at fair value | |||
Forward foreign exchange contracts, net | [1] | 9,373 | 7,809 |
Level 1 Inputs [Member] | |||
Financial assets carried at fair value | |||
Rabbi trust assets | [2] | 24,892 | 26,013 |
Forward foreign exchange contracts, net | [1],[2] | 0 | 0 |
Total | [2] | 24,892 | 26,013 |
Financial liabilities carried at fair value | |||
Forward foreign exchange contracts, net | [1],[2] | 0 | 0 |
Level 2 Inputs [Member] | |||
Financial assets carried at fair value | |||
Rabbi trust assets | [3] | 0 | 0 |
Forward foreign exchange contracts, net | [1],[3] | 19,741 | 27,131 |
Total | [3] | 19,741 | 27,131 |
Financial liabilities carried at fair value | |||
Forward foreign exchange contracts, net | [1],[3] | $ 9,373 | $ 7,809 |
[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 Instr30
Fair Value of Financial Instruments-Adjusted Historical Cost (Details) - USD ($) $ in Thousands | Feb. 28, 2016 | Nov. 29, 2015 | |
Senior notes [Member] | 6.875% senior notes due 2022 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 6.875% | ||
Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 5.00% | ||
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 | $ 20,806 | $ 15,996 | |
Total financial liabilities carried at adjusted historical cost | 1,101,966 | 1,157,612 | |
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 | 536,519 | 527,715 | |
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | 488,749 | 482,145 | |
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 | 35,861 | 32,736 | |
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 | 20,806 | 15,996 | |
Total financial liabilities carried at adjusted historical cost | 1,139,535 | 1,199,909 | |
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 | [1] | 575,871 | 570,355 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term Debt, Fair Value | [1] | 486,347 | 480,945 |
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 | [1] | 36,480 | 33,593 |
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 | 20,031 | 99,020 | |
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 | $ 20,031 | $ 99,020 | |
[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 He31
Derivative Instruments and Hedging Activities-Balance Sheet (Details) - USD ($) $ in Thousands | Feb. 28, 2016 | Nov. 29, 2015 | |
Forward foreign exchange contracts [Member] | |||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | |||
Derivative asset, gross asset | $ 26,211 | $ 30,837 | |
Derivative asset, gross liability | (7,050) | (4,930) | |
Derivative asset, net | 19,161 | 25,907 | |
Derivative liability, gross asset | 7,050 | 4,930 | |
Derivative Liability, gross liability | (9,690) | (7,599) | |
Derivative Liability, net | (2,640) | (2,669) | |
Derivative, Fair Value, Net | 16,521 | 23,238 | |
Embedded Derivative Financial Instruments [Member] | |||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | |||
Derivative asset, gross asset | 580 | 1,224 | |
Derivative asset, gross liability | 0 | 0 | |
Derivative asset, net | 580 | 1,224 | |
Derivative liability, gross asset | 0 | 0 | |
Derivative Liability, gross liability | (6,733) | (5,140) | |
Derivative Liability, net | (6,733) | (5,140) | |
Derivative, Fair Value, Net | (6,153) | (3,916) | |
Carrying Value [Member] | Forward foreign exchange contracts [Member] | |||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | |||
Derivative asset, net | 26,791 | 32,061 | |
Derivative Liability, net | (16,423) | (12,739) | |
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 | [1] | 25,123 | 31,808 |
Derivative asset, gross liability | [1] | (5,382) | (4,677) |
Derivative asset, Net Carrying Value | [1] | 19,741 | 27,131 |
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 liability, gross asset | [2] | 1,668 | 253 |
Derivative Liability, gross liability | [2] | (11,041) | (8,062) |
Derivative liability, Net Carrying Value | [2] | (9,373) | (7,809) |
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 | (8,496) | $ (7,832) | |
Long [Member] | |||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | |||
Forward foreign exchange contracts | 725,700 | ||
Short [Member] | |||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | |||
Forward foreign exchange contracts | $ 271,000 | ||
[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 He32
Derivative Instruments and Hedging Activities-Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2016 | Mar. 01, 2015 | Nov. 29, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cumulative income taxes, gain or (loss) recognized in AOCI | $ 12,104 | $ 11,849 | |
Total, gain or (loss) recognized in AOCI | (18,656) | (18,247) | |
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 | (19,646) | (18,982) | |
Non-derivative hedging instruments-gain or (loss) recognized in other income | (2,103) | $ 346 | |
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 He33
Derivative Instruments and Hedging Activities-Realized & Unrealized (Details) - Forward foreign exchange contracts [Member] - Other Income [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2016 | Mar. 01, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized | $ 12,967 | $ (3,960) |
Unrealized | (9,231) | 11,868 |
Total | $ 3,736 | $ 7,908 |
Debt-Table (Details)
Debt-Table (Details) - USD ($) $ in Thousands | Feb. 28, 2016 | Nov. 29, 2015 | Mar. 01, 2015 |
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 1,005,243 | $ 1,004,938 | |
Short-term debt | 40,779 | 114,978 | |
Long-term Debt, Current Maturities | 35,394 | 32,625 | |
Short-term debt and current maturities of long-term debt | 76,173 | 147,603 | |
Long-term and short-term debt | 1,081,416 | 1,152,541 | |
4.25% Yen-denominated Eurobonds, due 2016 [Member] | Bonds [Member] | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt, Current Maturities | $ 35,394 | $ 32,625 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||
6.875% senior notes due 2022 [Member] | Senior notes [Member] | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 524,689 | 524,807 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | ||
5.00% Senior Notes, Due 2025 [Member] | Senior notes [Member] | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 480,554 | 480,131 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Senior revolving credit facility [Member] | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Short-term debt | $ 20,000 | 99,000 | |
Short-term borrowings [Member] | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Short-term debt | $ 20,779 | $ 15,978 |
Debt-Textuals (Details)
Debt-Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2016 | Mar. 01, 2015 | |
Debt Instruments [Line Items] | ||
Weighted-average interest rate | 6.26% | 7.65% |
Senior revolving credit facility [Member] | ||
Debt Instruments [Line Items] | ||
Unused availability | $ 739.7 | |
Line of Credit Facility, Current Borrowing Capacity | 798.2 | |
Letters of credit and other credit usage | $ (58.5) | |
6.875% senior notes due 2022 [Member] | Senior notes [Member] | ||
Debt Instruments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |
5.00% Senior Notes, Due 2025 [Member] | Senior notes [Member] | ||
Debt Instruments [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2016 | Mar. 01, 2015 | ||
Pension Benefits [Member] | |||
Net periodic benefit cost (income): | |||
Service cost | $ 2,058 | $ 2,128 | |
Interest cost | [1] | 9,472 | 11,840 |
Expected return on plan assets | (12,134) | (12,717) | |
Amortization of prior service benefit | (15) | (16) | |
Amortization of actuarial loss | 3,007 | 3,160 | |
Curtailment loss | 0 | 335 | |
Net periodic benefit cost | 2,388 | 4,730 | |
Changes in accumulated other comprehensive loss: | |||
Actuarial gain (loss) | 152 | 0 | |
Amortization of prior service benefit | 15 | 16 | |
Amortization of actuarial loss | (3,007) | (3,160) | |
Curtailment loss | 0 | (335) | |
Total recognized in accumulated other comprehensive loss | (2,840) | (3,479) | |
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | (452) | 1,251 | |
Postretirement Benefits [Member] | |||
Net periodic benefit cost (income): | |||
Service cost | 50 | 63 | |
Interest cost | [1] | 806 | 1,147 |
Expected return on plan assets | 0 | 0 | |
Amortization of prior service benefit | 0 | 0 | |
Amortization of actuarial loss | 742 | 1,128 | |
Curtailment loss | 0 | 0 | |
Net periodic benefit cost | 1,598 | 2,338 | |
Changes in accumulated other comprehensive loss: | |||
Actuarial gain (loss) | 0 | 0 | |
Amortization of prior service benefit | 0 | 0 | |
Amortization of actuarial loss | (742) | (1,128) | |
Curtailment loss | 0 | 0 | |
Total recognized in accumulated other comprehensive loss | (742) | (1,128) | |
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ 856 | $ 1,210 | |
[1] | The decrease in interest cost is primarily due to the election made at the end of 2015 to adopt the spot-rate approach to determine the interest cost component of pension and postretirement expense. |
Restructuring-Liabilities Textu
Restructuring-Liabilities Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2016 | Mar. 01, 2015 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring Charges | $ 1,848 | $ 4,338 |
Corporate and Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other General and Administrative Expense | $ 1,497 | $ 8,007 |
Restructuring-Charges Table (De
Restructuring-Charges Table (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2016 | Mar. 01, 2015 | ||
Restructuring Cost and Reserve [Line Items] | |||
Initial Restructuring Charge | $ 1,569 | $ 5,734 | |
Restructuring Reserve, Accrual Adjustment | 279 | (1,731) | |
Noncash restructuring charges | [1] | 0 | 335 |
Restructuring Charges | 1,848 | 4,338 | |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Initial Restructuring Charge | [2] | 1,445 | 5,320 |
Restructuring Reserve, Accrual Adjustment | 279 | (1,249) | |
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 | [3] | 124 | 414 |
Restructuring Reserve, Accrual Adjustment | $ 0 | $ (482) | |
[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" on 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 Table
Restructuring-Liabilities Table (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Feb. 28, 2016 | Mar. 01, 2015 | Nov. 29, 2015 | Nov. 30, 2014 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Current | $ 15,736 | $ 42,596 | $ 20,141 | $ 57,817 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve | 21,738 | 63,363 | |||
Initial Restructuring Charge | 1,569 | 5,734 | |||
Restructuring Reserve, Accrual Adjustment | 279 | (1,731) | |||
Payments for Restructuring | (7,463) | (20,012) | |||
Restructuring Reserve, Translation Adjustment | 515 | (3,738) | |||
Restructuring Reserve | 16,638 | 43,616 | |||
Restructuring Reserve, Noncurrent | 902 | 1,020 | $ 1,597 | $ 5,546 | |
Employee Severance [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve | 20,774 | 56,963 | |||
Initial Restructuring Charge | [1] | 1,445 | 5,320 | ||
Restructuring Reserve, Accrual Adjustment | 279 | (1,249) | |||
Payments for Restructuring | (7,339) | (13,681) | |||
Restructuring Reserve, Translation Adjustment | 515 | (3,738) | |||
Restructuring Reserve | 15,674 | 43,615 | |||
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 | 964 | 6,400 | |||
Initial Restructuring Charge | [2] | 124 | 414 | ||
Restructuring Reserve, Accrual Adjustment | 0 | (482) | |||
Payments for Restructuring | (124) | (6,331) | |||
Restructuring Reserve, Translation Adjustment | 0 | 0 | |||
Restructuring Reserve | $ 964 | $ 1 | |||
[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) $ in Thousands | 3 Months Ended |
Feb. 28, 2016USD ($) | |
Dividends [Abstract] | |
Dividend declared | $ 60,000 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Feb. 28, 2016 | Nov. 29, 2015 |
Equity [Abstract] | ||
Pension and postretirement benefits | $ (234,166) | $ (236,340) |
Net investment hedge losses | (18,656) | (18,247) |
Foreign currency translation losses | (125,743) | (117,394) |
Unrealized gains on marketable securities | 754 | 1,880 |
Accumulated other comprehensive loss | (377,811) | (370,101) |
Accumulated other comprehensive income attributable to noncontrolling interest | 9,184 | 8,965 |
Accumulated other comprehensive loss attributable to Levi Strauss & Co. | $ (386,995) | $ (379,066) |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2016 | Mar. 01, 2015 | ||
Other Income and Expenses [Abstract] | |||
Foreign exchange management gains (losses) | [1] | $ 3,736 | $ 7,908 |
Foreign currency transaction (losses) gains | [2] | (8,203) | (35,959) |
Interest income | 209 | 460 | |
Investment income | 708 | 439 | |
Other | 1,331 | 1,124 | |
Total other expense, net | $ (2,219) | $ (26,028) | |
[1] | Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2016 and 2015 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, partially offset in 2016 by unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro. | ||
[2] | Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Losses in 2016 were primarily due to the weakening of various currencies against the Euro. 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 | |
Feb. 28, 2016 | Mar. 01, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 33.40% | 34.10% |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2016 | Mar. 01, 2015 | |
Levi Strauss Foundation [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Donations | $ 0.3 | $ 5.9 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | |
Feb. 28, 2016USD ($)Regional_Segments | Mar. 01, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Gain on disposal of assets | $ 12 | $ (26) |
Number of operating segments | Regional_Segments | 3 | |
Net revenues | $ 1,056,500 | 1,055,075 |
Operating income | 116,587 | 107,445 |
Restructuring Charges | 1,848 | 4,338 |
Interest expense | (14,902) | (23,312) |
Other expense, net | (2,219) | (26,028) |
Income before income taxes | 99,466 | 58,105 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Other General and Administrative Expense | 1,497 | 8,007 |
Other Selling, General and Administrative Expense | 70,131 | 88,031 |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 73,476 | 100,376 |
Regional operating income [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 190,063 | 207,821 |
AMEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 208,829 | 203,500 |
Operating income | 46,605 | 47,340 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 276,486 | 277,488 |
Operating income | 61,709 | 58,189 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 571,185 | 574,087 |
Operating income | $ 81,749 | $ 102,292 |