Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
May 26, 2019 | Jul. 03, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | LEVI STRAUSS & CO | |
Entity Central Index Key | 0000094845 | |
Current Fiscal Year End Date | --11-24 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | May 26, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | No | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 350,332,920 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 42,166,667 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 860,933 | $ 713,120 |
Short-term investments | 79,736 | 0 |
Trade receivables, net of allowance for doubtful accounts of $9,876 and $10,037 | 574,389 | 534,164 |
Inventories: | ||
Raw materials | 5,275 | 3,681 |
Work-in-process | 2,933 | 2,977 |
Finished goods | 887,111 | 877,115 |
Total inventories | 895,319 | 883,773 |
Other current assets | 196,769 | 157,002 |
Total current assets | 2,607,146 | 2,288,059 |
Property, plant and equipment, net of accumulated depreciation of $1,014,365 and $974,206 | 480,515 | 460,613 |
Goodwill | 235,688 | 236,246 |
Other intangible assets, net | 42,808 | 42,835 |
Deferred tax assets, net | 414,620 | 397,791 |
Other non-current assets | 128,616 | 117,116 |
Total assets | 3,909,393 | 3,542,660 |
Current Liabilities: | ||
Short-term debt | 11,481 | 31,935 |
Accounts payable | 339,497 | 351,329 |
Accrued salaries, wages and employee benefits | 164,788 | 298,990 |
Accrued interest payable | 5,787 | 6,089 |
Accrued income taxes | 34,579 | 15,466 |
Accrued Sales Commission | 116,282 | 0 |
Other accrued liabilities | 435,300 | 348,390 |
Total current liabilities | 1,107,714 | 1,052,199 |
Long-term debt | 1,011,119 | 1,020,219 |
Postretirement medical benefits | 70,147 | 74,181 |
Pension liability | 190,588 | 195,639 |
Long-term employee related benefits | 79,517 | 107,556 |
Long-term income tax liabilities | 11,339 | 9,805 |
Other long-term liabilities | 117,716 | 116,462 |
Total liabilities | 2,588,140 | 2,576,061 |
Commitments and contingencies | ||
Temporary equity | 0 | 299,140 |
Levi Strauss & Co. stockholders’ equity | ||
Common stock — $.001 par value; 1,200,000,000 Class A shares authorized, 42,166,667 shares and no shares issued and outstanding as of May 26, 2019 and November 25, 2018, respectively; and 422,000,000 Class B shares authorized, 350,332,920 shares and 376,028,430 shares issued and outstanding, as of May 26, 2019 and November 25, 2018, respectively | 392 | 376 |
Additional paid-in capital | 629,703 | 0 |
Accumulated other comprehensive loss | (411,256) | (424,584) |
Retained earnings | 1,094,666 | 1,084,321 |
Total Levi Strauss & Co. stockholders’ equity | 1,313,505 | 660,113 |
Noncontrolling interest | 7,748 | 7,346 |
Total stockholders’ equity | 1,321,253 | 667,459 |
Total liabilities, temporary equity and stockholders’ equity | $ 3,909,393 | $ 3,542,660 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 |
ASSETS | ||
Accumulated depreciation | $ 1,014,365 | $ 974,206 |
Current Assets: | ||
Allowance for doubtful accounts | $ (9,876) | $ (10,037) |
Common Class A [Member] | ||
Levi Strauss & Co. stockholders’ equity | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 42,166,667 | 0 |
Common stock, shares outstanding | 42,166,667 | 0 |
Common Class B [Member] | ||
Levi Strauss & Co. stockholders’ equity | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 422,000,000 | 422,000,000 |
Common stock, shares issued | 350,332,920 | 376,028,430 |
Common stock, shares outstanding | 350,332,920 | 376,028,430 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Income Statement [Abstract] | ||||
Net revenues | $ 1,312,940 | $ 1,245,742 | $ 2,747,398 | $ 2,589,427 |
Cost of goods sold | 612,517 | 574,865 | 1,264,167 | 1,180,426 |
Gross profit | 700,423 | 670,877 | 1,483,231 | 1,409,001 |
Selling, general and administrative expenses | 637,525 | 593,595 | 1,219,421 | 1,156,797 |
Operating income | 62,898 | 77,282 | 263,810 | 252,204 |
Interest expense | (15,126) | (14,465) | (32,670) | (29,962) |
Underwriter commission paid on behalf of selling stockholders | (24,860) | 0 | (24,860) | 0 |
Other income, net | 3,166 | 12,895 | 1,520 | 2,495 |
Income before income taxes | 26,078 | 75,712 | 207,800 | 224,737 |
Income tax (benefit) expense | (2,429) | (1,320) | 32,842 | 166,334 |
Net income | 28,507 | 77,032 | 174,958 | 58,403 |
Net income attributable to noncontrolling interest | (277) | (2,100) | (151) | (2,483) |
Net income attributable to Levi Strauss & Co. | $ 28,230 | $ 74,932 | $ 174,807 | $ 55,920 |
Earnings per common share attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.07 | $ 0.20 | $ 0.46 | $ 0.15 |
Diluted (usd per share) | $ 0.07 | $ 0.19 | $ 0.44 | $ 0.14 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 389,518,461 | 377,132,162 | 383,278,398 | 376,384,657 |
Diluted (in shares) | 409,332,997 | 387,764,580 | 401,405,411 | 387,130,124 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28,507 | $ 77,032 | $ 174,958 | $ 58,403 |
Other comprehensive income (loss), before related income taxes: | ||||
Pension and postretirement benefits | 3,464 | 3,157 | 6,886 | 6,517 |
Derivative instruments | 12,667 | 28,975 | 14,404 | 6,127 |
Foreign currency translation losses | (8,843) | (34,353) | (4,757) | (14,572) |
Unrealized gains (losses) on marketable securities | 329 | (116) | 1,219 | 174 |
Total other comprehensive income (loss), before related income taxes | 7,617 | (2,337) | 17,752 | (1,754) |
Income taxes expense related to items of other comprehensive income | (2,432) | (7,229) | (4,173) | (2,383) |
Comprehensive income, net of income taxes | 33,692 | 67,466 | 188,537 | 54,266 |
Comprehensive income attributable to noncontrolling interest | (348) | (1,939) | (402) | (2,583) |
Comprehensive income attributable to Levi Strauss & Co. | $ 33,344 | $ 65,527 | $ 188,135 | $ 51,683 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
May 26, 2019 | May 27, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 174,958 | $ 58,403 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 58,745 | 64,695 |
Unrealized foreign exchange losses (gains) | 14,899 | (10,678) |
Realized (gain) loss on settlement of forward foreign exchange contracts not designated for hedge accounting | (7,134) | 18,148 |
Employee benefit plans’ amortization from accumulated other comprehensive loss and settlement loss | 6,886 | 6,517 |
Stock-based compensation | 14,014 | 10,822 |
Other, net | 1,813 | 3,767 |
(Benefit from) provision for deferred income taxes | (19,937) | 135,168 |
Change in operating assets and liabilities: | ||
Trade receivables | 119,916 | 135,739 |
Inventories | (32,628) | (95,690) |
Other current assets | (22,546) | (1,580) |
Other non-current assets | (5,198) | (7,435) |
Accounts payable and other accrued liabilities | (47,137) | 38,284 |
Restructuring liabilities | (126) | (254) |
Income tax liabilities | 20,675 | (980) |
Accrued salaries, wages and employee benefits and long-term employee related benefits | (115,443) | (127,321) |
Other long-term liabilities | 56 | (47) |
Net cash provided by operating activities | 161,813 | 227,558 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (76,961) | (61,153) |
Proceeds (Payments) on settlement of forward foreign exchange contracts not designated for hedge accounting | 13,125 | (18,148) |
Payments to acquire short-term investments | (84,829) | 0 |
Proceeds from sale, maturity and collection of short-term investments | 5,481 | 0 |
Net cash used for investing activities | (143,184) | (79,301) |
Cash Flows from Financing Activities: | ||
Proceeds from short-term credit facilities | 17,929 | 22,689 |
Repayments of short-term credit facilities | (27,866) | (20,673) |
Other short-term borrowings, net | (9,422) | (14,537) |
Proceeds from issuance of Class A common stock | 254,329 | 0 |
Payments for underwriter commission and other offering costs | (19,746) | 0 |
Repurchase of common stock, including shares surrendered for tax withholdings on equity award exercises | (28,610) | (22,027) |
Dividend to stockholders | (55,000) | (45,000) |
Other financing, net | (565) | (644) |
Net cash provided by (used for) financing activities | 131,049 | (80,192) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,913) | (3,424) |
Net increase in cash and cash equivalents and restricted cash | 147,765 | 64,641 |
Beginning cash and cash equivalents, and restricted cash | 713,698 | 634,691 |
Ending cash and cash equivalents, and restricted cash | 861,463 | 699,332 |
Less: Ending restricted cash | (530) | (608) |
Ending cash and cash equivalents | 860,933 | 698,724 |
Noncash Investing Activity: | ||
Property, plant and equipment acquired and not yet paid at end of period | 14,775 | 14,454 |
Property, plant and equipment additions due to build-to-suit lease transactions | 10,861 | 1,822 |
Realized loss on foreign currency contracts not yet paid at end of period | 5,990 | 0 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest during the period | 26,849 | 25,824 |
Cash paid for income taxes during the period, net of refunds | $ 52,800 | $ 35,066 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Class A & Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Noncontrolling Interest |
Beginning balance at Nov. 26, 2017 | $ 702,388 | $ 375 | $ 0 | $ 1,100,916 | $ (404,381) | $ 5,478 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (18,629) | (19,012) | 383 | |||
Other comprehensive income/loss, net of tax | 5,428 | 5,167 | 261 | |||
Stock-based compensation and dividends, net | 5,256 | 2 | 5,254 | |||
Reclassification to temporary equity | (32,999) | 9,590 | (42,589) | |||
Repurchase of common stock | (14,844) | (14,844) | ||||
Cash dividends declared | (90,000) | (90,000) | ||||
Ending balance at Feb. 25, 2018 | 556,600 | 377 | 0 | 949,315 | (399,214) | 6,122 |
Beginning balance at Nov. 26, 2017 | 702,388 | 375 | 0 | 1,100,916 | (404,381) | 5,478 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 58,403 | |||||
Ending balance at May. 27, 2018 | 592,215 | 377 | 0 | 992,396 | (408,619) | 8,061 |
Beginning balance at Feb. 25, 2018 | 556,600 | 377 | 0 | 949,315 | (399,214) | 6,122 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 77,032 | 74,932 | 2,100 | |||
Other comprehensive income/loss, net of tax | (9,566) | (9,405) | (161) | |||
Stock-based compensation and dividends, net | 5,566 | 5,566 | ||||
Reclassification to temporary equity | (30,234) | (2,438) | (27,796) | |||
Repurchase of common stock | (7,183) | (3,128) | (4,055) | |||
Ending balance at May. 27, 2018 | 592,215 | 377 | 0 | 992,396 | (408,619) | 8,061 |
Beginning balance at Nov. 25, 2018 | 667,459 | 376 | 0 | 1,084,321 | (424,584) | 7,346 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 146,451 | 146,577 | (126) | |||
Other comprehensive income/loss, net of tax | 8,394 | 8,214 | 180 | |||
Stock-based compensation and dividends, net | 1,497 | 1,497 | ||||
Reclassification to temporary equity | (23,845) | (506) | (23,339) | |||
Repurchase of common stock | (3,914) | (991) | (2,923) | |||
Cash dividends declared | (110,000) | (110,000) | ||||
Ending balance at Feb. 24, 2019 | 686,042 | 376 | 0 | 1,094,636 | (416,370) | 7,400 |
Beginning balance at Nov. 25, 2018 | 667,459 | 376 | 0 | 1,084,321 | (424,584) | 7,346 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 174,958 | |||||
Ending balance at May. 26, 2019 | 1,321,253 | 392 | 629,703 | 1,094,666 | (411,256) | 7,748 |
Beginning balance at Feb. 24, 2019 | 686,042 | 376 | 0 | 1,094,636 | (416,370) | 7,400 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 28,507 | 28,230 | 277 | |||
Other comprehensive income/loss, net of tax | 5,185 | 5,114 | 71 | |||
Stock-based compensation and dividends, net | 12,517 | 2 | 12,515 | |||
Reclassification to temporary equity | 322,985 | (28,200) | ||||
Repurchase of common stock | (24,696) | (24,696) | ||||
Issuance of Class A common stock in connection with initial public offering (Note 1) | 234,583 | 14 | 234,569 | |||
Cancel liability-settled awards and replace with equity-settled awards in connection with initial public offering (Note 1) | 56,130 | 56,130 | ||||
Ending balance at May. 26, 2019 | $ 1,321,253 | $ 392 | $ 629,703 | $ 1,094,666 | $ (411,256) | $ 7,748 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Feb. 24, 2019 | Feb. 25, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.29 | $ 0.24 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
May 26, 2019 | |
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. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended November 25, 2018 , included in the Company's final prospectus related to its initial public offering ("IPO"), dated March 20, 2019 (File No. 333-229630) (the "Prospectus"), filed with the Securities and Exchange Commission ("SEC") pursuant to Rule 424(b) under the Securities Act of 1933, as amended. 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 in the unaudited consolidated financial statements not misleading. The results of operations for the three and six months ended May 26, 2019 may not be indicative of the results to be expected for any other interim period or the year ending November 24, 2019. 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 2019 and 2018 consists of 13 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters. Reclassification Certain insignificant amounts on the consolidated statements of cash flows have been conformed to the May 26, 2019 presentation. Stock Split On February 12, 2019, the Company’s stockholders approved an amendment to the Company’s certificate of incorporation (the "Amendment") to effect a ten-for-one stock split of shares of the Company’s outstanding common stock, such that each share of common stock, $0.01 par value, became ten shares of common stock, $0.001 par value per share. In addition, the Amendment increased the number of authorized shares of the Company's common stock by 930,000,000 to 1,200,000,000 . The Amendment became effective on March 4, 2019 when filed with the Secretary of State of the State of Delaware. All share and per-share data in the unaudited consolidated financial statements and notes has been retroactively adjusted to reflect the stock split for all periods presented. Initial Public Offering In March 2019, the Company completed its IPO in which it issued and sold 14,960,557 shares of Class A common stock at a public offering price of $17.00 per share. The Company received net proceeds of $234.6 million after deducting underwriting discounts and commissions of $13.6 million and other direct and incremental offering expenses of $6.1 million . The Company agreed to pay all underwriting discounts and commissions applicable to the sales of shares of Class A common stock by the selling stockholders. This amount, $24.9 million , was paid at completion of the IPO in March 2019 and was recorded as non-operating expense in the second quarter of 2019. Additionally, the Company incurred $3.5 million of other costs associated with the IPO that were recorded in selling, general and administrative expenses ("SG&A"). In connection with the IPO, on March 19, 2019 the Company's Board of Directors approved the cancellation of the majority of the outstanding unvested cash-settled restricted stock units ("RSU's") and their concurrent replacement with similar equity-settled RSUs ("Replacement Awards"), pursuant to the Company's 2016 Equity Incentive Plan (the "2016 Plan"). RSUs for certain foreign affiliates will continue to be cash-settled. Other than the form of settlement, all other terms of the awards (including their vesting schedules) are the same. Prior to this modification, the cash-settled awards were classified as liabilities and stock-based compensation expense was measured using the fair value at the end of each reporting period. After the modification, the stock-based compensation expense for these awards was measured using the modification date fair value. As a result of the modification, accrued stock-based compensation expense of $45.8 million and $10.3 million were reclassified on the Company's consolidated balance sheets from accrued salaries, wages and employee benefits and other long-term liabilities, respectively, to additional paid in capital. Refer to Note 6 for more information. Prior to the IPO, the holders of shares issued under the 2016 Plan could require the Company to repurchase such shares at the then-current market value pursuant to a contractual put right. Equity-classified stock-based awards that may be settled in cash at the option of the holder were presented on the Company's consolidated balance sheets outside of permanent equity. Accordingly, temporary equity on the Company's consolidated balance sheets includes the redemption value of these awards generally related to the elapsed service period since the grant date reflecting patterns of compensation cost recognition, as well as the fair value of the Company's common stock issued pursuant to the 2016 Plan. Upon the completion of the IPO in the second quarter of 2019, this contractual put right was terminated and these awards are no longer presented as temporary equity. As a result, the balance in temporary equity as of immediately prior to the IPO of $351.2 million was reclassified to additional paid in capital. Refer to Note 6 for more information. On February 12, 2019, the Company’s stockholders also approved the adoption of an amended and restated certificate of incorporation (the "IPO Certificate") and amended and restated bylaws. The IPO Certificate provides for two classes of common stock: Class A common stock, par value $0.001 per share, and Class B common stock, par value $0.001 per share. All common stock outstanding at the time of the IPO converted automatically into Class B common stock, each having ten votes per share. Shares of Class A common stock, each having one vote per share, were sold in the IPO. Shares of Class B common stock sold by selling stockholders in the IPO automatically converted into shares of Class A common stock in connection with such sale. Holders of Class B common stock can voluntarily convert their shares into Class A common stock if and when they wish to do so in order to sell their shares to the public. On February 12, 2019, the Company’s stockholders approved the Company's 2019 Equity Incentive Plan (the "2019 Plan") and the Company's 2019 Employee Stock Purchase Plan (the "2019 ESPP"), each of which became effective on March 20, 2019, the effective date of the IPO registration statement. The maximum number of shares of the Company’s Class A common stock that may be issued under the 2019 Plan is 40,000,000 . The 2019 ESPP authorizes the issuance of 12,000,000 shares of the Company’s Class A common stock and is subject to automatic annual increases. 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. Changes in Accounting Principle • In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Under the new standard and its related amendments (collectively known as Accounting Standards Codification 606 ("ASC 606")), an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Enhanced disclosures are required regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has identified certain changes in balance sheet classification under ASC 606. Allowances for estimated returns, discounts and retailer promotions and other similar incentives are presented as other accrued liabilities rather than netted within accounts receivable and the estimated cost of inventory associated with allowances for estimated returns are included as other current assets rather than inventories. The Company adopted the standard as of November 26, 2018 using the modified retrospective approach and determined there is no impact to retained earnings upon adoption. Refer to Note 10 for more information. The following table presents the related effect of the adoption of Topic 606 on the Consolidated Balance Sheets: May 26, 2019 As Reported Remove Effect of Adoption Balances Without Adoption of Topic 606 (Dollars in thousands) Trade receivables, net of allowance for doubtful accounts $ 574,389 $ 164,840 $ 409,549 Inventories: Finished goods 887,111 (17,827 ) 904,938 Other current assets 196,769 17,827 178,942 Total current assets 2,607,146 164,840 2,442,306 Total assets 3,909,393 164,840 3,744,553 Accrued sales allowances 116,282 116,282 — Other accrued liabilities 435,300 48,558 386,742 Total current liabilities 1,107,714 164,840 942,874 Total liabilities, temporary equity and stockholders' equity $ 3,909,393 $ 164,840 $ 3,744,553 • In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. Restricted cash is reported in Other non-current assets in the Company's Consolidated Balance Sheets. The Company adopted this standard in the first quarter of 2019, and other than the change in presentation within the Consolidated Statements of Cash Flows, the adoption of ASU 2016-18 did not have an impact on the Company's consolidated financial statements. • In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 changes the income statement presentation of net periodic benefit costs requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, expected return on plan assets, amortization of prior service costs or credits, curtailments and settlements, actuarial gains and losses, etc.). Accordingly, the Company determined this impacts the Company's Consolidated Statements of Income, as the service cost components of net periodic benefit costs are reported within operating income and the other components of net periodic benefit costs are reported in the Other Income, Net line item. The presentation change in the Consolidated Statements of Income requires application on a retrospective basis. A practical expedient is permitted under the guidance which allows the Company to use information previously disclosed in the pension and other postretirement benefit plans footnote as the basis to apply the retrospective presentation requirements. As a result of the Company's adoption of this standard, other components of net periodic benefit costs, primarily interest costs and investment earnings, of $4.0 million and $0.8 million for the three months ended May 26, 2019 and May 27, 2018 , respectively, and $8.0 million and $1.6 million for the six months ended May 26, 2019 and May 27, 2018 , respectively, were included in Other Income, Net line item rather than selling, general and administrative expenses in the Company's Consolidated Statements of Income. This reclassified amount will be $3.4 million for the year ended November 25, 2018. • In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. This ASU creates more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. The Company adopted this standard during the first quarter of 2019 upon entering into foreign exchange risk contracts designated as hedges. 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 Prospectus, except for the following: First Quarter of 2020 • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for operating or financing lease arrangements exceeding a 12-month term, a right-of-use asset and a lease obligation will be recognized on the balance sheet of the lessee while the income statement will reflect lease expense for operating leases and amortization and interest expense for financing leases. The Company has identified leases for real estate, personal property and other arrangements. The new standard is required to be applied using a modified retrospective approach with two adoption methods permissible. The Company expects to elect the transition method that applies the new lease standard at the adoption date instead of the earliest period presented. Given the significant number of leases, the Company anticipates the new guidance will have a material impact on the consolidated balance sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
May 26, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Beginning the first quarter of 2019, the Company invested in short-term investments. Changes in the fair value of these marketable securities are recognized in accumulated other comprehensive income or loss. The following table presents the Company’s financial instruments that are carried at fair value: May 26, 2019 November 25, 2018 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 $ 45,707 $ 45,707 $ — $ 34,385 $ 34,385 $ — Short-term investments in marketable securities 79,736 — 79,736 — — — Derivative instruments (3) 21,914 — 21,914 18,372 — 18,372 Total $ 147,357 $ 45,707 $ 101,650 $ 52,757 $ 34,385 $ 18,372 Financial liabilities carried at fair value Derivative instruments (3) 12,226 — 12,226 4,447 — 4,447 Total $ 12,226 $ — $ 12,226 $ 4,447 $ — $ 4,447 _____________ (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. Short-term investments in marketable securities consist of fixed income securities. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3) The Company’s cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 3 for more information. 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: May 26, 2019 November 25, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1) $ 488,323 $ 501,704 $ 487,272 $ 478,774 3.375% senior notes due 2027 (1) 528,104 554,331 538,219 546,238 Short-term borrowings 11,719 11,719 32,470 32,470 Total $ 1,028,146 $ 1,067,754 $ 1,057,961 $ 1,057,482 _____________ (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 | 6 Months Ended |
May 26, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Accounting Policy Financial Statement Presentation The Company records all derivatives on the balance sheet at fair value, which are included in "Other current assets", "Other non-current assets", "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets. The portion of the fair value that represents cash flow occurring within one year are classified as current and the portion related to cash flows occurring beyond one year are classified as non-current. The cash flows from the designated derivative instruments used as hedges are classified in the Company's consolidated statements of cash flows in the same section as the cash flows of the hedged item. Cash Flow Hedges The Company's cash flow hedges are recorded in "Other comprehensive loss" and are not reclassified to earnings until the related net investment position has been liquidated. As a result of ASU 2017-12, for foreign exchange forward contracts accounted for as cash flow hedges, the ineffective portion (if any) will not be separately recorded. The classification of effective hedge results on the Company's consolidated statements of income (loss) is the same as that of the underlying exposure. For foreign exchange risk cash flow hedges, forward points are excluded from the assessment of hedge effectiveness and are recognized in "Net Revenues" or "Costs of goods sold" on a straight-line basis over the life of the contract. In each accounting period, differences between the change in fair value of the forward points and the amount recognized on a straight-line basis is recognized in "Other comprehensive income". Net Investment Hedges The Company designates certain non-derivative instruments as net investment hedges to hedge the Company's net investment position in certain of its foreign subsidiaries. For these instruments, the Company documents the hedge designation by identifying the hedging instrument, the nature of the risk being hedged and the approach for measuring hedge effectiveness. The ineffective portions of these hedges are recorded in "Other income, net" in the Company's consolidated statements of income. The effective portions of these hedges are recorded in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets and are not reclassified to earnings until the related net investment position has been liquidated. No Hedging Designation The Company may also enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting. For derivatives not designated for hedge accounting, changes in the fair value are recorded in "Other income, net" in the Company’s consolidated statements of income. The Company's foreign currency management objective is to minimize the effect of fluctuations in foreign exchange rates on nonfunctional currency cash flows and selected assets or liabilities without exposing the Company to additional risk associated with transactions that could be regarded as speculative. The Company manages certain forecasted foreign currency exposures and uses a centralized currency management operation to take advantage of potential opportunities to naturally offset foreign currency exposures against each other. Designated Cash Flow Hedges The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales. The Company’s global sourcing organization uses the U.S. dollar as its functional currency and is primarily exposed to changes in functional currency equivalent cash flows from anticipated inventory purchases, as it procures inventory on behalf of subsidiaries with Euro functional currencies. Additionally, a European subsidiary uses Euros as its functional currency and is exposed to anticipated non-functional currency denominated sales. The Company manages these risks by using currency forward contracts formally designated and effective as cash flow hedges. Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures. For forward contracts, forward points are excluded from the determination of hedge effectiveness and are included in current Cost of sales for hedges of anticipated inventory purchases and in Net Revenues for hedges of anticipated sales on a straight-line basis over the life of the contract. In each accounting period, differences between the change in fair value of the forward points and the amount recognized on a straight-line basis is recognized in other comprehensive income. There was no hedge ineffectiveness for the six months ended May 26, 2019 . Net Investment Hedges The Company has designated a portion of its outstanding Euro-denominated senior notes as a net investment hedge to manage foreign currency exposures in its foreign operations. Non-designated Cash Flow Hedges The Company enters into derivative instruments not designated as hedges. These derivative instruments are not speculative and are used to manage the Company’s exposure to certain product sourcing activities, some intercompany sales, foreign subsidiaries' royalty payments, interest payments, earnings repatriations, net investment in foreign operations and funding activities but the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in "Other income, net" in the Company’s consolidated statements of income. As of May 26, 2019 , the Company had forward foreign exchange contracts derivatives that were not designated as hedges in qualifying hedging relationships, of which $1.1 billion were contracts to buy and $606.6 million were contracts to sell various foreign currencies. These contracts are at various exchange rates and expire at various dates through May 2020 . The table below provides data about the carrying values of derivative instruments and non-derivative instruments: May 26, 2019 November 25, 2018 Assets (Liabilities) Derivative Net Carrying Value Assets (Liabilities) Derivative Net Carrying Value Carrying Carrying Carrying Carrying (Dollars in thousands) Derivatives designated as hedging instruments Foreign exchange risk cash flow hedges (1) $ 8,340 $ — $ 8,340 $ — $ — $ — Foreign exchange risk cash flow hedges (2) — (2,576 ) (2,576 ) — — — Total $ 8,340 $ (2,576 ) $ — $ — Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) 21,912 (8,338 ) 13,574 18,372 — 18,372 Forward foreign exchange contracts (2) 2,569 (12,219 ) (9,650 ) — (4,447 ) (4,447 ) Total $ 24,481 $ (20,557 ) $ 18,372 $ (4,447 ) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (531,050 ) $ — $ (541,500 ) _____________ (1) Included in "Other current assets" or "Other non-current assets" on the Company’s consolidated balance sheets. (2) Included in "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets. The Company's over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sheets based on maturity dates, including those subject to master netting arrangements. The table below presents the gross and net amounts of these contracts recognized on the Company's consolidated balance sheets by type of financial instrument: May 26, 2019 November 25, 2018 Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amounts of Assets / (Liabilities) Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amounts of Assets / (Liabilities) (Dollars in thousands) Foreign exchange risk contracts and forward foreign exchange contracts Financial assets $ 30,234 $ (10,194 ) $ 20,040 $ 16,417 $ (1,756 ) $ 14,661 Financial liabilities (21,318 ) 10,194 (11,124 ) (2,181 ) 1,756 (425 ) Total $ 8,916 $ 14,236 Embedded derivative contracts Financial assets $ 2,587 $ — $ 2,587 $ 1,955 $ — $ 1,955 Financial liabilities (1,815 ) — (1,815 ) (2,266 ) — (2,266 ) Total $ 772 $ (311 ) The table below provides data about the amount of gains and losses related to derivative instruments designated as cash flow hedges and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets: Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Reclassified from AOCI into Net Income (1) As of As of Three Months Ended Six Months Ended May 26, November 25, May 26, May 27, May 26, May 27, (Dollars in thousands) Foreign exchange risk contracts $ 3,954 $ — $ (163 ) $ — $ 717 $ — Realized forward foreign exchange swaps (2) 4,637 4,637 — — — — Yen-denominated Eurobonds (19,811 ) (19,811 ) — — — — Euro-denominated senior notes (43,966 ) (54,416 ) — — — — Cumulative income taxes 26,564 29,703 — — — — Total $ (28,622 ) $ (39,887 ) _____________ (1) Amounts reclassified from AOCI were classified as net revenues and costs of goods sold on the consolidated statements of income. (2) Prior to and during 2005, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCI and are not reclassified to earnings until the related net investment position has been liquidated. Within the next 12 months, $3.8 million of cash flow hedges are expected to be reclassified from AOCI into net income. The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the Consolidated Statements of Income for the three and six months ended May 26, 2019 : May 26, Three Months Ended Six Months Ended Amount of Gain (Loss) on Cash Flow Hedge Activity: (Dollars in thousands) Revenues $ (1,985 ) $ (2,444 ) Cost of Goods Sold $ 1,822 $ 3,161 The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other income, net" in the Company's consolidated statements of income: Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Realized gain (loss) $ 3,147 $ (7,845 ) $ 7,760 $ (18,148 ) Unrealized gain (loss) 1,115 21,556 (9,637 ) 15,772 Total $ 4,262 $ 13,711 $ (1,877 ) $ (2,376 ) |
Debt
Debt | 6 Months Ended |
May 26, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table presents the Company's debt: May 26, November 25, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 $ 486,587 $ 485,605 3.375% senior notes due 2027 524,532 534,614 Total long-term debt $ 1,011,119 $ 1,020,219 Short-term debt Short-term borrowings $ 11,481 $ 31,935 Total debt $ 1,022,600 $ 1,052,154 Senior Revolving Credit Facility The C ompany's unused availability under its senior secured revolving credit facility was $805.6 million at May 26, 2019 , as the Company's total availability of $837.0 million was reduced by $31.4 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 and six months ended May 26, 2019 was 5.32% and 5.27% , respectively, as compared to 5.19% and 5.00% , respectively, during the same periods of 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
May 26, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The following table summarizes the total net periodic benefit cost for the Company's defined pension plans and postretirement benefit plans: Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Net periodic benefit cost: Pension benefits $ 4,016 $ 766 $ 7,993 $ 1,615 Postretirement benefits 893 926 1,786 1,852 Net periodic benefit cost $ 4,909 $ 1,692 $ 9,779 $ 3,467 |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 6 Months Ended |
May 26, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED INCENTIVE COMPENSATION PLAN | STOCK-BASED INCENTIVE COMPENSATION PLANS Equity Awards Service and performance RSU activity during the six months ended May 26, 2019 was as follows: Service RSUs Performance RSUs Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) (Units in thousands) Outstanding at November 25, 2018 1,030 $ 8.17 1.7 1,744 $ 8.08 1.4 Granted 310 14.25 586 15.84 Vested (109 ) 8.80 — — Granted Replacement Awards 6,542 16.67 2,083 22.71 Forfeited (68 ) 16.67 (37 ) 22.23 Outstanding at May 26, 2019 7,705 $ 15.49 2.1 4,376 $ 16.10 1.5 Liability Awards Liability award activity during the six months ended May 26, 2019 was as follows: Phantom Service RSUs Phantom Performance RSUs Units Weighted-Average Fair Value Fair Value At Period End Units Weighted-Average Fair Value Fair Value At Period End (Units in thousands) Outstanding at November 25, 2018 9,100 $ 7.59 $ 14.60 1,710 $ 8.22 $ 14.60 Granted 1,793 14.88 504 14.88 Vested (3,542 ) 6.79 — — Canceled (6,542 ) 9.81 (2,083 ) 9.69 Forfeited (215 ) 8.59 (64 ) 9.45 Outstanding at May 26, 2019 594 $ 9.57 $ 22.06 67 $ 11.63 $ 22.06 Expected to vest at May 26, 2019 546 $ 9.47 $ 22.06 57 $ 11.47 $ 22.06 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
May 26, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Forward Foreign Exchange Contracts The Company uses cash flow hedge derivative instruments to manage its exposure to foreign currencies. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the forward foreign exchange contracts. However, the Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. See Note 3 for additional information. Other Contingencies Litigation. 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. Customs Duty Audits. The Company imports both raw materials and finished garments into all of its operating regions and as such, is subject to numerous countries complex customs laws and regulations with respect to its import and export activity. The Company is currently undergoing audit assessments and the related legal appeal processes with various customs authorities. While the Company is vigorously defending its position and does not believe any of the claims for customs duty and related charges have merit, the ultimate resolution of these assessments and legal proceedings are subject to risk and uncertainty. |
Dividend
Dividend | 6 Months Ended |
May 26, 2019 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND In January 2019 , the Company's Board of Directors declared two cash dividends of $55 million each. The first dividend was paid in the first quarter of 2019 . The second dividend will be paid in the fourth quarter of 2019 to the holders of record of the Company's Class A common stock and Class B common stock at the close of business on October 5, 2019 , and was recorded in "Other accrued liabilities" in the Company's consolidated balance sheets. The Company does not have an established 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 Company's Board of Directors 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 | 6 Months Ended |
May 26, 2019 | |
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: May 26, November 25, May 27, (Dollars in thousands) Pension and postretirement benefits $ (223,860 ) $ (229,023 ) $ (227,464 ) Derivative instruments (28,622 ) (39,887 ) (51,114 ) Foreign currency translation losses (153,103 ) (149,318 ) (124,578 ) Unrealized gains on marketable securities 3,885 2,948 4,175 Accumulated other comprehensive loss (401,700 ) (415,280 ) (398,981 ) Accumulated other comprehensive income attributable to noncontrolling interest 9,556 9,304 9,638 Accumulated other comprehensive loss attributable to Levi Strauss & Co. $ (411,256 ) $ (424,584 ) $ (408,619 ) Refer to Note 3 for insignificant amounts reclassified out of "Accumulated other comprehensive loss" into net income related to the Company's derivative instruments. Other insignificant amounts that pertain to the Company's pension and postretirement benefit plans were also reclassified out of "Accumulated other comprehensive loss" into "Other Income, net" in the Company's consolidated statements of income. |
Net Revenues
Net Revenues | 6 Months Ended |
May 26, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Net Revenues | NET REVENUES Disaggregated Revenue The table below provides the Company's revenues disaggregated by segment and channel. Three Months Ended May 26, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 487,958 $ 207,980 $ 115,736 $ 811,674 Direct-to-consumer 204,740 190,389 106,137 501,266 Total net revenues $ 692,698 $ 398,369 $ 221,873 $ 1,312,940 Six Months Ended May 26, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 971,759 $ 460,913 $ 248,311 $ 1,680,983 Direct-to-consumer 438,203 402,132 226,080 1,066,415 Total net revenues $ 1,409,962 $ 863,045 $ 474,391 $ 2,747,398 Three Months Ended May 27, 2018 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 480,680 $ 196,581 $ 108,693 $ 785,954 Direct-to-consumer 189,111 170,255 100,422 459,788 Total net revenues $ 669,791 $ 366,836 $ 209,115 $ 1,245,742 Six Months Ended May 27, 2018 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 929,422 $ 456,446 $ 228,326 $ 1,614,194 Direct-to-consumer 397,566 363,112 214,555 975,233 Total net revenues $ 1,326,988 $ 819,558 $ 442,881 $ 2,589,427 Wholesale channel revenues includes sales through third-party retailers such as department stores, specialty retailers, leading third-party e-commerce sites and franchise locations dedicated to the Company's brands. The Company also sells products directly to consumers, which are reflected in the direct-to-consumer ("DTC") channel, through a variety of formats, including company-operated mainline and outlet stores, company-operated e-commerce sites and select shop-in-shops located in department stores and other third-party retail locations. Revenue transactions generally comprise a single performance obligation which consists of the sale of products to customers either through wholesale or direct-to-consumer channels. The Company satisfies the performance obligation and records revenues when transfer of control has passed to the customer, based on the terms of sale. Transfer of control passes to wholesale customers upon shipment or upon receipt depending on the agreement with the customer. Within the Company's DTC channel, control generally transfers to the customer at the time of sale within company-operated retail stores and upon delivery to the customer with respect to e-commerce transactions. Licensing revenues are included in the Company's wholesale channel and represent approximately 2% of total revenues which are recognized over time based on the contractual term with variable amounts recognized only when royalties exceed contractual minimum royalty guarantees. Payment terms for wholesale transactions depend on the country of sale or agreement with the customer, and payment is generally required after shipment or receipt by the wholesale customer. Payment is due at the time of sale for retail store and e-commerce transactions. At May 26, 2019 , the Company did not have any material contract assets and or contract liabilities recorded in the consolidated balance sheets. Net revenues are recognized when the Company's performance obligations are satisfied upon transfer of control of promised goods. A customer is deemed to have control once they are able to direct the use and receive substantially all of the benefits of the product. This includes a present obligation to payment, the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. Consideration promised in the Company’s contracts with customers includes a variable amount related to anticipated sales returns, discounts and miscellaneous claims from customers. Estimates of discretionary authorized returns, discounts and claims are based on (1) historical rates, (2) specific identification of outstanding returns not yet received from customers and outstanding discounts and claims and (3) expected returns, discounts and claims not yet finalized with customers. Actual returns, discounts and claims in any future period are inherently uncertain and thus may differ from estimates recorded. The Company treats all shipping to the Company's customers, handling and certain other distribution activities as a fulfillment cost and recognizes these costs as SG&A. Sales and value-added taxes collected from customers and remitted to governmental authorities are presented on a net basis in the consolidated statements of income. |
Other Income, Net
Other Income, Net | 6 Months Ended |
May 26, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET The following table summarizes significant components of "Other income, net": Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Foreign exchange management gains (losses) (1) $ 4,261 $ 13,711 $ (1,877 ) $ (2,376 ) Foreign currency transaction (losses) gains (5,584 ) (2,698 ) (2,963 ) 619 Interest income 3,647 1,401 7,658 3,830 Investment income 6 — 1,013 428 Other, net (2) 836 481 (2,311 ) (6 ) Total other income, net (2) $ 3,166 $ 12,895 $ 1,520 $ 2,495 _____________ (1) Gains and losses on forward foreign exchange contracts primarily resulted from currency fluctuations relative to negotiated contract rates. Gains in the three months ended May 26, 2019 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro. Gains in the three months ended May 27, 2018 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro, Mexican Peso and British Pound. Beginning in the first quarter of 2019, the Company designated certain derivative instruments as cash flow hedges and as a a result, gains and losses for the effective portions of these hedges are recorded in "Accumulated other comprehensive loss". Refer to Note 3 for more information. (2) The amounts in Other income, net have been conformed to reflect the adoption of ASU 2017-07, "Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost" and include non-service cost component of net periodic benefit costs. Refer to Note 1 for more information. |
Income Taxes
Income Taxes | 6 Months Ended |
May 26, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"), which significantly changed U.S. tax law. The Tax Act lowered the Company’s U.S. statutory federal income tax rate from 35% to 21% effective on November 26, 2018. Beginning the first quarter of 2019, the Company's effective tax rate reflected a provision to tax Global Intangible Low-Taxed Income ("GILTI") of foreign subsidiaries and a tax benefit for Foreign Derived Intangible Income ("FDII"). The Company accounted for GILTI in the period in which it is incurred. The Company's effective income tax rate was 15.8% for the six months ended May 26, 2019 , compared to 74.0% for the same prior-year period. The decrease in the effective tax rate in 2019 as compared to 2018 was primarily driven by a 61% one-time tax charge in 2018 related to the impact of the Tax Act. Of the impact, 44% is due to remeasurement of deferred tax assets and liabilities and 17% is related to transition charges on undistributed foreign earnings. |
Earnings Per Share Attributable
Earnings Per Share Attributable to Common Stockholders | 6 Months Ended |
May 26, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Common Stockholders | EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic earnings per share attributable to common stockholders is calculated by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per share attributable to common stockholders adjusts the basic earnings per share attributable to common stockholders and the weighted-average number of common shares outstanding for the potentially dilutive impact of RSUs and stock appreciation rights using the treasury stock method. The following table sets forth the computation of the Company's basic and diluted earnings per share: Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands, except per share amounts) Numerator: Net income attributable to Levi Strauss & Co. $ 28,230 $ 74,932 $ 174,807 $ 55,920 Denominator: Weighted-average common shares outstanding - basic 389,518,461 377,132,162 383,278,398 376,384,657 Dilutive effect of stock awards 19,814,536 10,632,418 18,127,013 10,745,467 Weighted-average common shares outstanding - diluted 409,332,997 387,764,580 401,405,411 387,130,124 Earnings per common share attributable to common stockholders: Basic $ 0.07 $ 0.20 $ 0.46 $ 0.15 Diluted $ 0.07 $ 0.19 $ 0.44 $ 0.14 Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders — 2,817,830 — 7,564,301 |
Related Parties
Related Parties | 6 Months Ended |
May 26, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES Charles V. Bergh, President and Chief Executive Officer, Peter E. Haas Jr., a director of the Company, and Marc Rosen, Executive Vice President and President of Direct-to-Consumer, are board members of the Levi Strauss Foundation, which is not a consolidated entity of the Company. Seth R. Jaffe, Executive Vice President and General Counsel, is Vice President of the Levi Strauss Foundation. During the three and six months ended May 26, 2019 , the Company donated $0.4 million and $8.9 million , respectively, to the Levi Strauss Foundation as compared to $0.4 million and $6.9 million for the same prior-year periods. |
Business Segment Information
Business Segment Information | 6 Months Ended |
May 26, 2019 | |
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 Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Net revenues: Americas $ 692,698 $ 669,791 $ 1,409,962 $ 1,326,988 Europe 398,369 366,836 863,045 819,558 Asia 221,873 209,115 474,391 442,881 Total net revenues $ 1,312,940 $ 1,245,742 $ 2,747,398 $ 2,589,427 Operating income: Americas $ 101,631 $ 97,212 $ 225,287 $ 208,457 Europe 58,709 53,173 180,333 168,459 Asia 17,063 16,410 60,028 57,119 Regional operating income 177,403 166,795 465,648 434,035 Corporate expenses (1) 114,505 89,513 201,838 181,831 Total operating income 62,898 77,282 263,810 252,204 Interest expense (15,126 ) (14,465 ) (32,670 ) (29,962 ) Underwriter commission paid on behalf of selling stockholders (24,860 ) — (24,860 ) — Other income, net (1) 3,166 12,895 1,520 2,495 Income before income taxes $ 26,078 $ 75,712 $ 207,800 $ 224,737 _____________ (1) The amounts in Corporate expenses and Other income, net have been conformed to reflect the adoption of ASU 2017-07, "Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost" and include non-service cost component of net periodic benefit costs. Refer to Note 1 for more information. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
May 26, 2019 | |
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 2019 and 2018 consists of 13 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters. |
Use of estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. |
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 Prospectus, except for the following: First Quarter of 2020 • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for operating or financing lease arrangements exceeding a 12-month term, a right-of-use asset and a lease obligation will be recognized on the balance sheet of the lessee while the income statement will reflect lease expense for operating leases and amortization and interest expense for financing leases. The Company has identified leases for real estate, personal property and other arrangements. The new standard is required to be applied using a modified retrospective approach with two adoption methods permissible. The Company expects to elect the transition method that applies the new lease standard at the adoption date instead of the earliest period presented. Given the significant number of leases, the Company anticipates the new guidance will have a material impact on the consolidated balance sheets. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
May 26, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table presents the related effect of the adoption of Topic 606 on the Consolidated Balance Sheets: May 26, 2019 As Reported Remove Effect of Adoption Balances Without Adoption of Topic 606 (Dollars in thousands) Trade receivables, net of allowance for doubtful accounts $ 574,389 $ 164,840 $ 409,549 Inventories: Finished goods 887,111 (17,827 ) 904,938 Other current assets 196,769 17,827 178,942 Total current assets 2,607,146 164,840 2,442,306 Total assets 3,909,393 164,840 3,744,553 Accrued sales allowances 116,282 116,282 — Other accrued liabilities 435,300 48,558 386,742 Total current liabilities 1,107,714 164,840 942,874 Total liabilities, temporary equity and stockholders' equity $ 3,909,393 $ 164,840 $ 3,744,553 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
May 26, 2019 | |
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: May 26, 2019 November 25, 2018 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 $ 45,707 $ 45,707 $ — $ 34,385 $ 34,385 $ — Short-term investments in marketable securities 79,736 — 79,736 — — — Derivative instruments (3) 21,914 — 21,914 18,372 — 18,372 Total $ 147,357 $ 45,707 $ 101,650 $ 52,757 $ 34,385 $ 18,372 Financial liabilities carried at fair value Derivative instruments (3) 12,226 — 12,226 4,447 — 4,447 Total $ 12,226 $ — $ 12,226 $ 4,447 $ — $ 4,447 _____________ (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. Short-term investments in marketable securities consist of fixed income securities. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3) The Company’s cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 3 for more information. |
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: May 26, 2019 November 25, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1) $ 488,323 $ 501,704 $ 487,272 $ 478,774 3.375% senior notes due 2027 (1) 528,104 554,331 538,219 546,238 Short-term borrowings 11,719 11,719 32,470 32,470 Total $ 1,028,146 $ 1,067,754 $ 1,057,961 $ 1,057,482 _____________ (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 He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
May 26, 2019 | |
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: May 26, 2019 November 25, 2018 Assets (Liabilities) Derivative Net Carrying Value Assets (Liabilities) Derivative Net Carrying Value Carrying Carrying Carrying Carrying (Dollars in thousands) Derivatives designated as hedging instruments Foreign exchange risk cash flow hedges (1) $ 8,340 $ — $ 8,340 $ — $ — $ — Foreign exchange risk cash flow hedges (2) — (2,576 ) (2,576 ) — — — Total $ 8,340 $ (2,576 ) $ — $ — Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) 21,912 (8,338 ) 13,574 18,372 — 18,372 Forward foreign exchange contracts (2) 2,569 (12,219 ) (9,650 ) — (4,447 ) (4,447 ) Total $ 24,481 $ (20,557 ) $ 18,372 $ (4,447 ) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (531,050 ) $ — $ (541,500 ) _____________ (1) Included in "Other current assets" or "Other non-current assets" on the Company’s consolidated balance sheets. (2) Included in "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets. |
Offsetting assets and liabilities | The Company's over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sheets based on maturity dates, including those subject to master netting arrangements. The table below presents the gross and net amounts of these contracts recognized on the Company's consolidated balance sheets by type of financial instrument: May 26, 2019 November 25, 2018 Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amounts of Assets / (Liabilities) Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amounts of Assets / (Liabilities) (Dollars in thousands) Foreign exchange risk contracts and forward foreign exchange contracts Financial assets $ 30,234 $ (10,194 ) $ 20,040 $ 16,417 $ (1,756 ) $ 14,661 Financial liabilities (21,318 ) 10,194 (11,124 ) (2,181 ) 1,756 (425 ) Total $ 8,916 $ 14,236 Embedded derivative contracts Financial assets $ 2,587 $ — $ 2,587 $ 1,955 $ — $ 1,955 Financial liabilities (1,815 ) — (1,815 ) (2,266 ) — (2,266 ) Total $ 772 $ (311 ) |
Gains and losses included in AOCI | The table below provides data about the amount of gains and losses related to derivative instruments designated as cash flow hedges and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets: Amount of Gain (Loss) Recognized in OCI (Effective Portion) Amount of Gain (Loss) Reclassified from AOCI into Net Income (1) As of As of Three Months Ended Six Months Ended May 26, November 25, May 26, May 27, May 26, May 27, (Dollars in thousands) Foreign exchange risk contracts $ 3,954 $ — $ (163 ) $ — $ 717 $ — Realized forward foreign exchange swaps (2) 4,637 4,637 — — — — Yen-denominated Eurobonds (19,811 ) (19,811 ) — — — — Euro-denominated senior notes (43,966 ) (54,416 ) — — — — Cumulative income taxes 26,564 29,703 — — — — Total $ (28,622 ) $ (39,887 ) |
Gains and losses included in statements of income | The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the Consolidated Statements of Income for the three and six months ended May 26, 2019 : May 26, Three Months Ended Six Months Ended Amount of Gain (Loss) on Cash Flow Hedge Activity: (Dollars in thousands) Revenues $ (1,985 ) $ (2,444 ) Cost of Goods Sold $ 1,822 $ 3,161 The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other income, net" in the Company's consolidated statements of income: Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Realized gain (loss) $ 3,147 $ (7,845 ) $ 7,760 $ (18,148 ) Unrealized gain (loss) 1,115 21,556 (9,637 ) 15,772 Total $ 4,262 $ 13,711 $ (1,877 ) $ (2,376 ) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
May 26, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term and short-term debt instruments | The following table presents the Company's debt: May 26, November 25, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 $ 486,587 $ 485,605 3.375% senior notes due 2027 524,532 534,614 Total long-term debt $ 1,011,119 $ 1,020,219 Short-term debt Short-term borrowings $ 11,481 $ 31,935 Total debt $ 1,022,600 $ 1,052,154 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
May 26, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans disclosures | The following table summarizes the total net periodic benefit cost for the Company's defined pension plans and postretirement benefit plans: Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Net periodic benefit cost: Pension benefits $ 4,016 $ 766 $ 7,993 $ 1,615 Postretirement benefits 893 926 1,786 1,852 Net periodic benefit cost $ 4,909 $ 1,692 $ 9,779 $ 3,467 |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 6 Months Ended |
May 26, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted stock units award activity | Liability award activity during the six months ended May 26, 2019 was as follows: Phantom Service RSUs Phantom Performance RSUs Units Weighted-Average Fair Value Fair Value At Period End Units Weighted-Average Fair Value Fair Value At Period End (Units in thousands) Outstanding at November 25, 2018 9,100 $ 7.59 $ 14.60 1,710 $ 8.22 $ 14.60 Granted 1,793 14.88 504 14.88 Vested (3,542 ) 6.79 — — Canceled (6,542 ) 9.81 (2,083 ) 9.69 Forfeited (215 ) 8.59 (64 ) 9.45 Outstanding at May 26, 2019 594 $ 9.57 $ 22.06 67 $ 11.63 $ 22.06 Expected to vest at May 26, 2019 546 $ 9.47 $ 22.06 57 $ 11.47 $ 22.06 Service and performance RSU activity during the six months ended May 26, 2019 was as follows: Service RSUs Performance RSUs Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) (Units in thousands) Outstanding at November 25, 2018 1,030 $ 8.17 1.7 1,744 $ 8.08 1.4 Granted 310 14.25 586 15.84 Vested (109 ) 8.80 — — Granted Replacement Awards 6,542 16.67 2,083 22.71 Forfeited (68 ) 16.67 (37 ) 22.23 Outstanding at May 26, 2019 7,705 $ 15.49 2.1 4,376 $ 16.10 1.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
May 26, 2019 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The following is a summary of the components of "Accumulated other comprehensive loss," net of related income taxes: May 26, November 25, May 27, (Dollars in thousands) Pension and postretirement benefits $ (223,860 ) $ (229,023 ) $ (227,464 ) Derivative instruments (28,622 ) (39,887 ) (51,114 ) Foreign currency translation losses (153,103 ) (149,318 ) (124,578 ) Unrealized gains on marketable securities 3,885 2,948 4,175 Accumulated other comprehensive loss (401,700 ) (415,280 ) (398,981 ) Accumulated other comprehensive income attributable to noncontrolling interest 9,556 9,304 9,638 Accumulated other comprehensive loss attributable to Levi Strauss & Co. $ (411,256 ) $ (424,584 ) $ (408,619 ) |
Net Revenues (Tables)
Net Revenues (Tables) | 6 Months Ended |
May 26, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below provides the Company's revenues disaggregated by segment and channel. Three Months Ended May 26, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 487,958 $ 207,980 $ 115,736 $ 811,674 Direct-to-consumer 204,740 190,389 106,137 501,266 Total net revenues $ 692,698 $ 398,369 $ 221,873 $ 1,312,940 Six Months Ended May 26, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 971,759 $ 460,913 $ 248,311 $ 1,680,983 Direct-to-consumer 438,203 402,132 226,080 1,066,415 Total net revenues $ 1,409,962 $ 863,045 $ 474,391 $ 2,747,398 Three Months Ended May 27, 2018 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 480,680 $ 196,581 $ 108,693 $ 785,954 Direct-to-consumer 189,111 170,255 100,422 459,788 Total net revenues $ 669,791 $ 366,836 $ 209,115 $ 1,245,742 Six Months Ended May 27, 2018 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 929,422 $ 456,446 $ 228,326 $ 1,614,194 Direct-to-consumer 397,566 363,112 214,555 975,233 Total net revenues $ 1,326,988 $ 819,558 $ 442,881 $ 2,589,427 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
May 26, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | The following table summarizes significant components of "Other income, net": Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Foreign exchange management gains (losses) (1) $ 4,261 $ 13,711 $ (1,877 ) $ (2,376 ) Foreign currency transaction (losses) gains (5,584 ) (2,698 ) (2,963 ) 619 Interest income 3,647 1,401 7,658 3,830 Investment income 6 — 1,013 428 Other, net (2) 836 481 (2,311 ) (6 ) Total other income, net (2) $ 3,166 $ 12,895 $ 1,520 $ 2,495 _____________ (1) Gains and losses on forward foreign exchange contracts primarily resulted from currency fluctuations relative to negotiated contract rates. Gains in the three months ended May 26, 2019 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro. Gains in the three months ended May 27, 2018 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro, Mexican Peso and British Pound. Beginning in the first quarter of 2019, the Company designated certain derivative instruments as cash flow hedges and as a a result, gains and losses for the effective portions of these hedges are recorded in "Accumulated other comprehensive loss". Refer to Note 3 for more information. (2) The amounts in Other income, net have been conformed to reflect the adoption of ASU 2017-07, "Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost" and include non-service cost component of net periodic benefit costs. Refer to Note 1 for more information. |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
May 26, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company's basic and diluted earnings per share: Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands, except per share amounts) Numerator: Net income attributable to Levi Strauss & Co. $ 28,230 $ 74,932 $ 174,807 $ 55,920 Denominator: Weighted-average common shares outstanding - basic 389,518,461 377,132,162 383,278,398 376,384,657 Dilutive effect of stock awards 19,814,536 10,632,418 18,127,013 10,745,467 Weighted-average common shares outstanding - diluted 409,332,997 387,764,580 401,405,411 387,130,124 Earnings per common share attributable to common stockholders: Basic $ 0.07 $ 0.20 $ 0.46 $ 0.15 Diluted $ 0.07 $ 0.19 $ 0.44 $ 0.14 Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders — 2,817,830 — 7,564,301 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
May 26, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Business segment information for the Company is as follows: Three Months Ended Six Months Ended May 26, May 27, May 26, May 27, (Dollars in thousands) Net revenues: Americas $ 692,698 $ 669,791 $ 1,409,962 $ 1,326,988 Europe 398,369 366,836 863,045 819,558 Asia 221,873 209,115 474,391 442,881 Total net revenues $ 1,312,940 $ 1,245,742 $ 2,747,398 $ 2,589,427 Operating income: Americas $ 101,631 $ 97,212 $ 225,287 $ 208,457 Europe 58,709 53,173 180,333 168,459 Asia 17,063 16,410 60,028 57,119 Regional operating income 177,403 166,795 465,648 434,035 Corporate expenses (1) 114,505 89,513 201,838 181,831 Total operating income 62,898 77,282 263,810 252,204 Interest expense (15,126 ) (14,465 ) (32,670 ) (29,962 ) Underwriter commission paid on behalf of selling stockholders (24,860 ) — (24,860 ) — Other income, net (1) 3,166 12,895 1,520 2,495 Income before income taxes $ 26,078 $ 75,712 $ 207,800 $ 224,737 _____________ (1) The amounts in Corporate expenses and Other income, net have been conformed to reflect the adoption of ASU 2017-07, "Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost" and include non-service cost component of net periodic benefit costs. Refer to Note 1 for more information. |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands | Mar. 20, 2019USD ($) | Mar. 31, 2019USD ($)$ / sharesshares | May 26, 2019USD ($)region$ / sharesshares | Feb. 24, 2019USD ($) | May 27, 2018USD ($) | Feb. 25, 2018USD ($) | May 26, 2019USD ($)region$ / sharesshares | May 27, 2018USD ($) | Nov. 25, 2018USD ($)$ / sharesshares | Feb. 12, 2019voteclass$ / sharesshares | Feb. 11, 2019$ / sharesshares |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Number of geographical regions | region | 3 | 3 | |||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.01 | |||||||||
Selling, general and administrative expenses | $ 637,525 | $ 593,595 | $ 1,219,421 | $ 1,156,797 | |||||||
Reclassification to temporary equity | 322,985 | $ (23,845) | (30,234) | $ (32,999) | |||||||
Temporary equity | 0 | 0 | $ 299,140 | ||||||||
Net periodic benefit cost | 4,909 | 1,692 | 9,779 | 3,467 | |||||||
Accounting Standards Update 2017-07 [Member] | Other Income (Expense), Net [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Interest costs and investment earnings | 4,000 | 800 | $ 8,000 | $ 1,600 | |||||||
Net periodic benefit cost | $ 3,400 | ||||||||||
Additional Paid-In Capital | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Reclassification to temporary equity | $ (506) | $ (2,438) | $ 9,590 | ||||||||
IPO [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Number of classes of common stock | class | 2 | ||||||||||
IPO [Member] | Additional Paid-In Capital | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Reclassification to temporary equity | $ 351,185 | ||||||||||
IPO [Member] | Accrued Salaries, Wages and Employee Benefits [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Stock-based compensation expense | $ 45,800 | ||||||||||
IPO [Member] | Other Noncurrent Liabilities [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Stock-based compensation expense | $ 10,300 | ||||||||||
Common Class A [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Increase amount (in shares) | shares | 930,000,000 | ||||||||||
Common stock, shares authorized | shares | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | |||||||
Common Class A [Member] | 2019 Equity Incentive Plan [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Number of shares authorized under plan | shares | 40,000,000 | ||||||||||
Common Class A [Member] | 2019 Employee Stock Purchase Plan [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Number of shares authorized under plan | shares | 12,000,000 | ||||||||||
Common Class A [Member] | IPO [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||||
Shares issued and sold (in shares) | shares | 14,960,557 | ||||||||||
Shares issued and sold (usd per share) | $ / shares | $ 17 | ||||||||||
Net proceeds | $ 234,600 | ||||||||||
Underwriting discounts and commissions paid | 13,600 | ||||||||||
Underwriting discounts and commissions paid on behalf of selling stockholders | $ 24,900 | ||||||||||
Offering expenses | $ 6,100 | ||||||||||
Selling, general and administrative expenses | $ 3,500 | ||||||||||
Number of votes per share of common stock | vote | 1 | ||||||||||
Common Class B [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock, shares authorized | shares | 422,000,000 | 422,000,000 | 422,000,000 | ||||||||
Common Class B [Member] | IPO [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||||
Number of votes per share of common stock | vote | 10 |
Significant Accounting Polici_5
Significant Accounting Policies - Modified Retrospective Method (Details) - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Trade receivables, net of allowance for doubtful accounts | $ 574,389 | $ 534,164 |
Inventories: Finished goods | 887,111 | 877,115 |
Other current assets | 196,769 | 157,002 |
Total current assets | 2,607,146 | 2,288,059 |
Total assets | 3,909,393 | 3,542,660 |
Accrued sales allowances | 116,282 | 0 |
Other accrued liabilities | 435,300 | 348,390 |
Total current liabilities | 1,107,714 | 1,052,199 |
Total liabilities, temporary equity and stockholders' equity | 3,909,393 | $ 3,542,660 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Trade receivables, net of allowance for doubtful accounts | 409,549 | |
Inventories: Finished goods | 904,938 | |
Other current assets | 178,942 | |
Total current assets | 2,442,306 | |
Total assets | 3,744,553 | |
Accrued sales allowances | 0 | |
Other accrued liabilities | 386,742 | |
Total current liabilities | 942,874 | |
Total liabilities, temporary equity and stockholders' equity | 3,744,553 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Trade receivables, net of allowance for doubtful accounts | 164,840 | |
Inventories: Finished goods | (17,827) | |
Other current assets | 17,827 | |
Total current assets | 164,840 | |
Total assets | 164,840 | |
Accrued sales allowances | 116,282 | |
Other accrued liabilities | 48,558 | |
Total current liabilities | 164,840 | |
Total liabilities, temporary equity and stockholders' equity | $ 164,840 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments-Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 |
Financial liabilities carried at fair value | ||
Total | $ 12,226 | $ 4,447 |
Fair Value [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 45,707 | 34,385 |
Short-term investments in marketable securities | 79,736 | 0 |
Forward foreign exchange contracts | 21,914 | 18,372 |
Total | 147,357 | 52,757 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 12,226 | 4,447 |
Fair Value [Member] | Level 1 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 45,707 | 34,385 |
Short-term investments in marketable securities | 0 | 0 |
Forward foreign exchange contracts | 0 | 0 |
Total | 45,707 | 34,385 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 0 | 0 |
Total | 0 | 0 |
Fair Value [Member] | Level 2 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 0 | 0 |
Short-term investments in marketable securities | 79,736 | 0 |
Forward foreign exchange contracts | 21,914 | 18,372 |
Total | 101,650 | 18,372 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 12,226 | 4,447 |
Total | $ 12,226 | $ 4,447 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments-Adjusted Historical Cost (Details) - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 |
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% | |
Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3.375% | |
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 | $ 11,719 | $ 32,470 |
Total financial liabilities carried at adjusted historical cost | 1,028,146 | 1,057,961 |
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 carried at adjusted historical cost | 488,323 | 487,272 |
Fair Value, Measurements, Recurring [Member] | Carrying Value [Member] | Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at adjusted historical cost | 528,104 | 538,219 |
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 | 11,719 | 32,470 |
Total financial liabilities carried at adjusted historical cost | 1,067,754 | 1,057,482 |
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 carried at adjusted historical cost | 501,704 | 478,774 |
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at adjusted historical cost | $ 554,331 | $ 546,238 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities-Balance Sheet (Details) - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 |
Carrying Value [Member] | Designated as Hedging Instrument [Member] | Bonds [Member] | Euro Senior Notes [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Hedging assets | $ 0 | $ 0 |
Hedging liabilities | (531,050) | (541,500) |
Forward foreign exchange contracts [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 30,234 | 16,417 |
Derivative asset, gross liability | (10,194) | (1,756) |
Derivative asset | 20,040 | 14,661 |
Derivative liability, gross asset | 10,194 | 1,756 |
Derivative Liability, gross liability | (21,318) | (2,181) |
Derivative Liability | (11,124) | (425) |
Derivative, Fair Value, Net | 8,916 | 14,236 |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset | 8,340 | 0 |
Derivative Liability | (2,576) | 0 |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Designated as Hedging Instrument [Member] | Other non-current assets [Member] | Cash Flow Hedging [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 8,340 | 0 |
Derivative asset, gross liability | 0 | 0 |
Derivative asset, Net Carrying Value | 8,340 | 0 |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Designated as Hedging Instrument [Member] | Other long-term liabilities [Member] | Cash Flow Hedging [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative liability, gross asset | 0 | 0 |
Derivative Liability, gross liability | (2,576) | 0 |
Derivative liability, Net Carrying Value | (2,576) | 0 |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset | 24,481 | 18,372 |
Derivative Liability | (20,557) | (4,447) |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | Other non-current assets [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 21,912 | 18,372 |
Derivative asset, gross liability | (8,338) | 0 |
Derivative asset, Net Carrying Value | 13,574 | 18,372 |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | Other long-term liabilities [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative liability, gross asset | 2,569 | 0 |
Derivative Liability, gross liability | (12,219) | (4,447) |
Derivative liability, Net Carrying Value | (9,650) | (4,447) |
Embedded Derivative Financial Instruments [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 2,587 | 1,955 |
Derivative asset, gross liability | 0 | 0 |
Derivative asset | 2,587 | 1,955 |
Derivative liability, gross asset | 0 | 0 |
Derivative Liability, gross liability | (1,815) | (2,266) |
Derivative Liability | (1,815) | (2,266) |
Derivative, Fair Value, Net | 772 | $ (311) |
Long [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Foreign exchange contracts | 1,100,000 | |
Short [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Foreign exchange contracts | $ 606,600 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities-Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | Nov. 25, 2018 | |
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | |||||
Cumulative income taxes, gain or (loss) recognized in AOCI | $ 26,564 | $ 26,564 | $ 29,703 | ||
Total, gain or (loss) recognized in AOCI | (28,622) | (28,622) | (39,887) | ||
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||||
Cumulative income taxes, gain or (loss) reclassified from AOCI | 0 | $ 0 | 0 | $ 0 | |
Forward foreign exchange contracts [Member] | |||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | |||||
Forward foreign exchange contracts, gain or (loss) recognized in AOCI | 3,954 | 3,954 | 0 | ||
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||||
Forward foreign exchange contracts, gain or (loss) reclassified from AOCI | (163) | 0 | 717 | 0 | |
Forward foreign exchange contracts [Member] | |||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | |||||
Forward foreign exchange contracts, gain or (loss) recognized in AOCI | 4,637 | 4,637 | 4,637 | ||
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||||
Forward foreign exchange contracts, gain or (loss) reclassified from AOCI | 0 | 0 | 0 | 0 | |
Yen-denominated Eurobonds [Member] | Bonds [Member] | |||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | |||||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | (19,811) | (19,811) | (19,811) | ||
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||||
Non-derivative hedging instruments, gain or (loss) reclassified from AOCI | 0 | 0 | 0 | 0 | |
Euro Senior Notes [Member] | Senior notes [Member] | |||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | |||||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | (43,966) | (43,966) | $ (54,416) | ||
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||||
Non-derivative hedging instruments, gain or (loss) reclassified from AOCI | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities-Realized & Unrealized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges expected to be reclassified from AOCI into net income within next 12 months | $ 3,800 | $ 3,800 | ||
Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) on Cash Flow Hedge Activity | (1,985) | (2,444) | ||
Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 1,822 | 3,161 | ||
Forward foreign exchange contracts [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized | 3,147 | $ (7,845) | 7,760 | $ (18,148) |
Unrealized | 1,115 | 21,556 | (9,637) | 15,772 |
Total | $ 4,262 | $ 13,711 | $ (1,877) | $ (2,376) |
Debt-Table (Details)
Debt-Table (Details) - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 |
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 1,011,119 | $ 1,020,219 |
Short-term debt | 11,481 | 31,935 |
Long-term and short-term debt | 1,022,600 | 1,052,154 |
5.00% Senior Notes, Due 2025 [Member] | Senior notes [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 486,587 | 485,605 |
Stated interest rate | 5.00% | |
3.375% Senior Notes Due 2027 [Member] | Senior notes [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 524,532 | 534,614 |
Stated interest rate | 3.375% | |
Short-term borrowings [Member] | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Short-term debt | $ 11,481 | $ 31,935 |
Debt-Textuals (Details)
Debt-Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Debt Instruments [Line Items] | ||||
Weighted-average interest rate | 5.32% | 5.19% | 5.27% | 5.00% |
Senior revolving credit facility [Member] | ||||
Debt Instruments [Line Items] | ||||
Unused availability | $ 805.6 | $ 805.6 | ||
Total availability | 837 | 837 | ||
Letters of credit and other credit usage | $ 31.4 | $ 31.4 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Net periodic benefit cost: | ||||
Net periodic benefit cost | $ 4,909 | $ 1,692 | $ 9,779 | $ 3,467 |
Pension Benefits [Member] | ||||
Net periodic benefit cost: | ||||
Net periodic benefit cost | 4,016 | 766 | 7,993 | 1,615 |
Postretirement Benefits [Member] | ||||
Net periodic benefit cost: | ||||
Net periodic benefit cost | $ 893 | $ 926 | $ 1,786 | $ 1,852 |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans - Activity (Details) - $ / shares shares in Thousands | May 26, 2019 | Nov. 25, 2018 | May 26, 2019 |
Service RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance, Units | 1,030 | ||
Granted, Units | 310 | ||
Vested, Units | (109) | ||
Granted Replaced Awards, Units | 6,542 | ||
Forfeited, Units | (68) | ||
Ending balance, Units | 7,705 | 1,030 | 7,705 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance, Weighted-Average Fair Value (in dollars per unit) | $ 8.17 | ||
Granted, Weighted-Average Fair Value (in dollars per unit) | 14.25 | ||
Vested, Weighted-Average Fair Value (in dollars per unit) | 8.80 | ||
Granted Replacement Awards, Weighted-Average Fair Value (in dollars per unit) | 16.67 | ||
Forfeited, Weighted-Average Fair Value (in dollars per unit) | 16.67 | ||
Ending balance, Weighted-Average Fair Value (in dollars per unit) | $ 15.49 | $ 8.17 | $ 15.49 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Weighted-Average Remaining Contractual Life (Years) | 2 years 1 month 6 days | 1 year 8 months 12 days | |
Performance RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance, Units | 1,744 | ||
Granted, Units | 586 | ||
Vested, Units | 0 | ||
Granted Replaced Awards, Units | 2,083 | ||
Forfeited, Units | (37) | ||
Ending balance, Units | 4,376 | 1,744 | 4,376 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance, Weighted-Average Fair Value (in dollars per unit) | $ 8.08 | ||
Granted, Weighted-Average Fair Value (in dollars per unit) | 15.84 | ||
Vested, Weighted-Average Fair Value (in dollars per unit) | 0 | ||
Granted Replacement Awards, Weighted-Average Fair Value (in dollars per unit) | 22.71 | ||
Forfeited, Weighted-Average Fair Value (in dollars per unit) | 22.23 | ||
Ending balance, Weighted-Average Fair Value (in dollars per unit) | $ 16.10 | $ 8.08 | $ 16.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Weighted-Average Remaining Contractual Life (Years) | 1 year 6 months | 1 year 4 months 24 days | |
Phantom Service RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance, Units | 9,100 | ||
Granted, Units | 1,793 | ||
Vested, Units | (3,542) | ||
Canceled, Units | (6,542) | ||
Forfeited, Units | (215) | ||
Ending balance, Units | 594 | 9,100 | 594 |
Expected to vest, Units | 546 | 546 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance, Weighted-Average Fair Value (in dollars per unit) | $ 7.59 | ||
Granted, Weighted-Average Fair Value (in dollars per unit) | 14.88 | ||
Vested, Weighted-Average Fair Value (in dollars per unit) | 6.79 | ||
Canceled, Weighted-Average Fair Value (in dollars per unit) | 9.81 | ||
Forfeited, Weighted-Average Fair Value (in dollars per unit) | 8.59 | ||
Ending balance, Weighted-Average Fair Value (in dollars per unit) | $ 9.57 | $ 7.59 | 9.57 |
Expected to vest, Weighted-Average Exercise Price (in dollars per unit) | 9.47 | 9.47 | |
Share-based Compensation Arrangement By Share-based Payment Award Non-Option Equity Instruments, Weighted Average Fair Value [Roll Forward] | |||
Beginning balance, Fair Value (in dollars per unit) | 14.60 | ||
Ending balance, Fair Value (in dollars per unit) | 22.06 | $ 14.60 | 22.06 |
Expected to vest (in dollars per unit) | $ 22.06 | $ 22.06 | |
Phantom Performance RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance, Units | 1,710 | ||
Granted, Units | 504 | ||
Vested, Units | 0 | ||
Canceled, Units | (2,083) | ||
Forfeited, Units | (64) | ||
Ending balance, Units | 67 | 1,710 | 67 |
Expected to vest, Units | 57 | 57 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance, Weighted-Average Fair Value (in dollars per unit) | $ 8.22 | ||
Granted, Weighted-Average Fair Value (in dollars per unit) | 14.88 | ||
Vested, Weighted-Average Fair Value (in dollars per unit) | 0 | ||
Canceled, Weighted-Average Fair Value (in dollars per unit) | 9.69 | ||
Forfeited, Weighted-Average Fair Value (in dollars per unit) | 9.45 | ||
Ending balance, Weighted-Average Fair Value (in dollars per unit) | $ 11.63 | $ 8.22 | 11.63 |
Expected to vest, Weighted-Average Exercise Price (in dollars per unit) | 11.47 | 11.47 | |
Share-based Compensation Arrangement By Share-based Payment Award Non-Option Equity Instruments, Weighted Average Fair Value [Roll Forward] | |||
Beginning balance, Fair Value (in dollars per unit) | 14.60 | ||
Ending balance, Fair Value (in dollars per unit) | 22.06 | $ 14.60 | 22.06 |
Expected to vest (in dollars per unit) | $ 22.06 | $ 22.06 |
Dividend (Details)
Dividend (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2019USD ($)installment | |
Dividends [Abstract] | |
Number of dividend installments declared | installment | 2 |
Dividend installments | $ | $ 55 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | May 26, 2019 | Nov. 25, 2018 | May 27, 2018 |
Equity [Abstract] | |||
Pension and postretirement benefits | $ (223,860) | $ (229,023) | $ (227,464) |
Derivative instruments | (28,622) | (39,887) | (51,114) |
Foreign currency translation losses | (153,103) | (149,318) | (124,578) |
Unrealized gains on marketable securities | 3,885 | 2,948 | 4,175 |
Accumulated other comprehensive loss | (401,700) | (415,280) | (398,981) |
Accumulated other comprehensive income attributable to noncontrolling interest | 9,556 | 9,304 | 9,638 |
Accumulated other comprehensive loss attributable to Levi Strauss & Co. | $ (411,256) | $ (424,584) | $ (408,619) |
Net Revenues - Disaggregation o
Net Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 1,312,940 | $ 1,245,742 | $ 2,747,398 | $ 2,589,427 |
Licensing Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of total revenue | 2.00% | 2.00% | ||
Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 811,674 | 785,954 | $ 1,680,983 | 1,614,194 |
Sales Channel, Directly to Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 501,266 | 459,788 | 1,066,415 | 975,233 |
Americas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 692,698 | 669,791 | 1,409,962 | 1,326,988 |
Americas [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 487,958 | 480,680 | 971,759 | 929,422 |
Americas [Member] | Sales Channel, Directly to Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 204,740 | 189,111 | 438,203 | 397,566 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 398,369 | 366,836 | 863,045 | 819,558 |
Europe [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 207,980 | 196,581 | 460,913 | 456,446 |
Europe [Member] | Sales Channel, Directly to Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 190,389 | 170,255 | 402,132 | 363,112 |
Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 221,873 | 209,115 | 474,391 | 442,881 |
Asia [Member] | Sales Channel, Through Intermediary [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 115,736 | 108,693 | 248,311 | 228,326 |
Asia [Member] | Sales Channel, Directly to Consumer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 106,137 | $ 100,422 | $ 226,080 | $ 214,555 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange management gains (losses) | $ 4,261 | $ 13,711 | $ (1,877) | $ (2,376) |
Foreign currency transaction (losses) gains | (5,584) | (2,698) | (2,963) | 619 |
Interest income | 3,647 | 1,401 | 7,658 | 3,830 |
Investment income | 6 | 0 | 1,013 | 428 |
Other, net(2) | 836 | 481 | (2,311) | (6) |
Total other income, net(2) | $ 3,166 | $ 12,895 | $ 1,520 | $ 2,495 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
May 26, 2019 | May 27, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 15.80% | 74.00% |
One-time tax charge | 61.00% | |
Remeasurement of deferred tax assets and liabilities | 44.00% | |
Transition charges on undistributed foreign earnings | 17.00% |
Earnings Per Share Attributab_3
Earnings Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Numerator: | ||||
Net income (loss) attributable to Levi Strauss & Co. | $ 28,230 | $ 74,932 | $ 174,807 | $ 55,920 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 389,518,461 | 377,132,162 | 383,278,398 | 376,384,657 |
Dilutive effect of stock awards (in shares) | 19,814,536 | 10,632,418 | 18,127,013 | 10,745,467 |
Weighted-average common shares outstanding - diluted (in shares) | 409,332,997 | 387,764,580 | 401,405,411 | 387,130,124 |
Earnings per common share attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.07 | $ 0.20 | $ 0.46 | $ 0.15 |
Diluted (usd per share) | $ 0.07 | $ 0.19 | $ 0.44 | $ 0.14 |
Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders (in shares) | 0 | 2,817,830 | 0 | 7,564,301 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 26, 2019 | May 27, 2018 | May 26, 2019 | May 27, 2018 | |
Levi Strauss Foundation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Donations | $ 0.4 | $ 0.4 | $ 8.9 | $ 6.9 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
May 26, 2019USD ($) | May 27, 2018USD ($) | May 26, 2019USD ($)Regional_Segments | May 27, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Regional_Segments | 3 | |||
Net revenues | $ 1,312,940 | $ 1,245,742 | $ 2,747,398 | $ 2,589,427 |
Operating income | 62,898 | 77,282 | 263,810 | 252,204 |
Interest expense | (15,126) | (14,465) | (32,670) | (29,962) |
Underwriter commission paid on behalf of selling stockholders | (24,860) | 0 | (24,860) | 0 |
Other income, net | 3,166 | 12,895 | 1,520 | 2,495 |
Income before income taxes | 26,078 | 75,712 | 207,800 | 224,737 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 692,698 | 669,791 | 1,409,962 | 1,326,988 |
Operating income | 101,631 | 97,212 | 225,287 | 208,457 |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 398,369 | 366,836 | 863,045 | 819,558 |
Operating income | 58,709 | 53,173 | 180,333 | 168,459 |
Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 221,873 | 209,115 | 474,391 | 442,881 |
Operating income | 17,063 | 16,410 | 60,028 | 57,119 |
Regional operating income [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 177,403 | 166,795 | 465,648 | 434,035 |
Corporate Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Corporate expenses | $ 114,505 | $ 89,513 | $ 201,838 | $ 181,831 |