Cover Page
Cover Page - shares | 9 Months Ended | |
Aug. 23, 2020 | Sep. 30, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 23, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-06631 | |
Entity Registrant Name | LEVI STRAUSS & CO | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-29 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000094845 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-0905160 | |
Entity Address, Address Line One | 1155 Battery Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94111 | |
City Area Code | 415 | |
Local Phone Number | 501-6000 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | LEVI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 66,461,001 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 330,721,606 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 23, 2020 | Nov. 24, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 1,353,042 | $ 934,237 |
Short-term investments | 72,279 | 80,741 |
Trade receivables, net of allowance for doubtful accounts of $17,437 and $6,172 | 543,257 | 782,846 |
Inventories: | ||
Raw materials | 3,932 | 4,929 |
Work-in-process | 4,091 | 3,319 |
Finished goods | 936,311 | 875,944 |
Total inventories | 944,334 | 884,192 |
Other current assets | 169,004 | 188,170 |
Total current assets | 3,081,916 | 2,870,186 |
Property, plant and equipment, net of accumulated depreciation of $1,071,260 and $1,054,267 | 447,869 | 529,558 |
Goodwill | 263,692 | 235,788 |
Other intangible assets, net | 48,624 | 42,782 |
Deferred tax assets, net | 500,701 | 407,905 |
Operating lease right-of-use assets, net (Note 1) | 985,497 | |
Other non-current assets | 218,970 | 146,199 |
Total assets | 5,547,269 | 4,232,418 |
Current Liabilities: | ||
Short-term debt | 23,941 | 7,621 |
Accounts payable | 461,501 | 360,324 |
Accrued salaries, wages and employee benefits | 162,866 | 223,374 |
Restructuring liabilities (Note 6) | 58,009 | 0 |
Accrued interest payable | 23,832 | 5,350 |
Accrued income taxes | 29,510 | 24,050 |
Accrued sales returns and allowances (Note 1) | 172,149 | 171,113 |
Short-term operating lease liability (Note 1) | 218,098 | |
Other accrued liabilities (Note 1) | 424,272 | 375,372 |
Total current liabilities | 1,574,178 | 1,167,204 |
Long-term debt | 1,543,302 | 1,006,745 |
Postretirement medical benefits | 59,294 | 64,006 |
Pension liability | 174,183 | 193,214 |
Long-term employee related benefits | 93,783 | 84,957 |
Long-term income tax liabilities | 7,049 | 10,486 |
Long-term operating lease liability (Note 1) | 852,366 | |
Other long-term liabilities | 51,843 | 134,249 |
Total liabilities | 4,355,998 | 2,660,861 |
Commitments and contingencies | ||
Levi Strauss & Co. stockholders’ equity | ||
Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 65,810,175 shares and 53,079,235 shares issued and outstanding as of August 23, 2020 and November 24, 2019, respectively; and 422,000,000 Class B shares authorized, 331,312,315 shares and 340,674,741 shares issued and outstanding, as of August 23, 2020 and November 24, 2019, respectively | 397 | 394 |
Additional paid-in capital | 621,432 | 657,659 |
Accumulated other comprehensive loss | (487,923) | (404,986) |
Retained earnings | 1,057,365 | 1,310,464 |
Total Levi Strauss & Co. stockholders’ equity | 1,191,271 | 1,563,531 |
Noncontrolling interest | 0 | 8,026 |
Total stockholders’ equity | 1,191,271 | 1,571,557 |
Total liabilities and stockholders’ equity | $ 5,547,269 | $ 4,232,418 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 23, 2020 | Nov. 24, 2019 |
ASSETS | ||
Accumulated depreciation | $ 1,071,260 | $ 1,054,267 |
Current Assets: | ||
Allowance for doubtful accounts | $ 17,437 | $ 6,172 |
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 | 65,810,175 | 53,079,235 |
Common stock, shares outstanding | 65,810,175 | 53,079,235 |
Common Class B [Member] | ||
Levi Strauss & Co. stockholders’ equity | ||
Common stock, shares authorized | 422,000,000 | 422,000,000 |
Common stock, shares issued | 331,312,315 | 340,674,741 |
Common stock, shares outstanding | 331,312,315 | 340,674,741 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Income Statement [Abstract] | ||||
Net revenues | $ 1,063,085 | $ 1,447,081 | $ 3,066,753 | $ 4,194,479 |
Cost of goods sold | 485,687 | 680,335 | 1,480,376 | 1,944,502 |
Gross profit | 577,398 | 766,746 | 1,586,377 | 2,249,977 |
Selling, general and administrative expenses | 484,002 | 595,528 | 1,695,072 | 1,814,949 |
Restructuring charges, net | 1,071 | 0 | 68,442 | 0 |
Operating income (loss) | 92,325 | 171,218 | (177,137) | 435,028 |
Interest expense | (28,437) | (15,292) | (56,337) | (47,962) |
Underwriter commission paid on behalf of selling stockholders | 0 | 0 | 0 | 24,860 |
Other expense, net | (12,274) | (4,369) | (8,269) | (2,849) |
Income (loss) before income taxes | 51,614 | 151,557 | (241,743) | 359,357 |
Income tax (benefit) expense | 24,565 | 27,340 | (57,932) | 60,182 |
Net income (loss) | 27,049 | 124,217 | (183,811) | 299,175 |
Net loss attributable to noncontrolling interest | 0 | 292 | 0 | 141 |
Net income (loss) attributable to Levi Strauss & Co. | $ 27,049 | $ 124,509 | $ (183,811) | $ 299,316 |
Earnings (loss) per common share attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.07 | $ 0.32 | $ (0.46) | $ 0.77 |
Diluted (usd per share) | $ 0.07 | $ 0.30 | $ (0.46) | $ 0.73 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 397,711,322 | 394,169,688 | 397,010,522 | 387,289,913 |
Diluted (in shares) | 407,677,385 | 413,639,749 | 397,010,522 | 407,844,136 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 27,049 | $ 124,217 | $ (183,811) | $ 299,175 |
Other comprehensive income (loss), before related income taxes: | ||||
Pension and postretirement benefits | 3,640 | 3,431 | 13,844 | 10,317 |
Derivative instruments | (63,271) | 9,215 | (50,068) | 23,619 |
Foreign currency translation gains (losses) | 36,915 | (6,523) | (1,974) | (11,280) |
Unrealized gains on marketable securities | 6,104 | 475 | 5,313 | 1,694 |
Total other comprehensive income (loss), before related income taxes | (16,612) | 6,598 | (32,885) | 24,350 |
Income taxes benefit (expense) related to items of other comprehensive income (loss) | 6,385 | (1,568) | 4,392 | (5,741) |
Comprehensive income (loss), net of income taxes | 16,822 | 129,247 | (212,304) | 317,784 |
Comprehensive loss (income) attributable to noncontrolling interest | 0 | 68 | 0 | (334) |
Comprehensive income (loss) attributable to Levi Strauss & Co. | $ 16,822 | $ 129,315 | $ (212,304) | $ 317,450 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative effect of adoption of new accounting standards | Class A & Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative effect of adoption of new accounting standards | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative effect of adoption of new accounting standards | Noncontrolling Interest |
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 income (loss) | 299,175 | 299,316 | (141) | ||||||
Other comprehensive income/loss, net of tax | 18,609 | 18,134 | 475 | ||||||
Stock-based compensation and dividends, net | 31,859 | 3 | 31,942 | (86) | |||||
Reclassification to temporary equity | (23,845) | (506) | (23,339) | ||||||
Repurchase of common stock | (3,088) | (165) | (2,923) | ||||||
Shares surrendered for tax withholdings on equity awards | (25,522) | (25,522) | |||||||
Reclassification from temporary equity in connection with initial public offering | 322,985 | 351,185 | (28,200) | ||||||
Issuance of Class A common stock in connection with initial public offering | 234,583 | 14 | 234,569 | ||||||
Cancel liability-settled awards and replace with equity-settled awards in connection with initial public offering | 56,130 | 56,130 | |||||||
Cash dividends declared ($0.16 and $0.29 per share for Nine Months Ended August 23, 2020 and August 25, 2019) | (110,000) | (110,000) | |||||||
Ending balance at Aug. 25, 2019 | 1,468,345 | 393 | 647,633 | 1,219,089 | (406,450) | 7,680 | |||
Beginning balance at May. 26, 2019 | 1,321,253 | 392 | 629,703 | 1,094,666 | (411,256) | 7,748 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 124,217 | 124,509 | (292) | ||||||
Other comprehensive income/loss, net of tax | 5,030 | 4,806 | 224 | ||||||
Stock-based compensation and dividends, net | 17,845 | 1 | 17,930 | (86) | |||||
Ending balance at Aug. 25, 2019 | 1,468,345 | 393 | 647,633 | 1,219,089 | (406,450) | 7,680 | |||
Beginning balance at Nov. 24, 2019 | 1,571,557 | $ 5,180 | 394 | 657,659 | 1,310,464 | $ 59,624 | (404,986) | $ (54,444) | 8,026 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (183,811) | (183,811) | |||||||
Other comprehensive income/loss, net of tax | (28,493) | (28,493) | |||||||
Stock-based compensation and dividends, net | 37,242 | 6 | 37,460 | (224) | |||||
Employee stock purchase plan | 6,171 | 6,171 | |||||||
Repurchase of common stock | (56,243) | (3) | (56,240) | ||||||
Shares surrendered for tax withholdings on equity awards | (79,858) | (79,858) | |||||||
Changes in ownership of noncontrolling interest | (16,835) | (8,809) | (8,026) | ||||||
Cash dividends declared ($0.16 and $0.29 per share for Nine Months Ended August 23, 2020 and August 25, 2019) | (63,639) | (63,639) | |||||||
Ending balance at Aug. 23, 2020 | 1,191,271 | 397 | 621,432 | 1,057,365 | (487,923) | 0 | |||
Beginning balance at May. 24, 2020 | 1,165,206 | 396 | 611,993 | 1,030,513 | (477,696) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 27,049 | 27,049 | |||||||
Other comprehensive income/loss, net of tax | (10,227) | (10,227) | |||||||
Stock-based compensation and dividends, net | 11,644 | 1 | 11,840 | (197) | |||||
Employee stock purchase plan | 1,889 | 1,889 | |||||||
Shares surrendered for tax withholdings on equity awards | (4,290) | (4,290) | |||||||
Ending balance at Aug. 23, 2020 | $ 1,191,271 | $ 397 | $ 621,432 | $ 1,057,365 | $ (487,923) | $ 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Aug. 23, 2020 | Aug. 25, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.16 | $ 0.29 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Aug. 23, 2020 | Aug. 25, 2019 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (183,811) | $ 299,175 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 104,997 | 90,305 |
Property, plant, equipment, and right-of-use asset impairments | 60,968 | 939 |
Unrealized foreign exchange losses | 5,706 | 19,625 |
Realized gains on settlement of forward foreign exchange contracts not designated for hedge accounting | (17,636) | (9,309) |
Employee benefit plans’ amortization from accumulated other comprehensive loss and curtailment loss | 13,845 | 10,317 |
Stock-based compensation | 37,242 | 31,859 |
Allowance for doubtful accounts | 10,697 | 544 |
Other, net | 6,120 | 1,897 |
Benefit from deferred income taxes | (87,871) | (20,352) |
Change in operating assets and liabilities, net of effect of acquisition: | ||
Trade receivables | 219,779 | (21,387) |
Inventories | (47,289) | (79,355) |
Accounts payable, accrued liabilities, and operating leases, net of right-of-use assets | 199,393 | (26,541) |
Restructuring liabilities | 57,762 | 0 |
Income tax liabilities | (9,466) | 34,918 |
Accrued salaries, wages and employee benefits and long-term employee related benefits | (82,497) | (88,817) |
Other operating assets and liabilities, net | (47,074) | (38,281) |
Net cash provided by operating activities | 240,865 | 205,537 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (89,487) | (128,041) |
Payments for business acquisition | (54,282) | 0 |
Proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting | 17,636 | 9,309 |
Payments to acquire short-term investments | (67,458) | (94,702) |
Proceeds from sale, maturity and collection of short-term investments | 75,863 | 15,057 |
Net cash used for investing activities | (117,728) | (198,377) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of long-term debt | 502,500 | 0 |
Proceeds from senior revolving credit facility | 300,000 | 0 |
Repayments of senior revolving credit facility | (300,000) | 0 |
Proceeds from short-term credit facilities | 8,936 | 25,259 |
Repayments of short-term credit facilities | (5,245) | (38,280) |
Other short-term borrowings, net | 12,980 | 9,486 |
Payment of debt issuance costs | (6,459) | 0 |
Proceeds from issuance of Class A common stock | 0 | 254,329 |
Payments For Underwriter Commission and Other Offering Costs | 0 | (19,746) |
Proceeds from employee stock purchase plan | 6,173 | 0 |
Repurchase of common stock | (56,243) | (3,088) |
Repurchase of shares surrendered for tax withholdings on equity awards | (79,857) | (25,522) |
Payments to noncontrolling interests | (16,090) | 0 |
Dividend to stockholders | (63,639) | (55,000) |
Other financing, net | (535) | (643) |
Net cash provided by financing activities | 302,521 | 146,795 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (6,914) | (3,357) |
Net increase in cash and cash equivalents and restricted cash | 418,744 | 150,598 |
Beginning cash and cash equivalents, and restricted cash | 934,753 | 713,698 |
Ending cash and cash equivalents, and restricted cash | 1,353,497 | 864,296 |
Less: Ending restricted cash | (455) | (523) |
Ending cash and cash equivalents | 1,353,042 | 863,773 |
Noncash Investing and Financing Activity: | ||
Property, plant and equipment acquired and not yet paid at end of period | 33,255 | 21,573 |
Property, plant and equipment additions due to build-to-suit lease transactions | 0 | 10,861 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest during the period | 38,036 | 29,621 |
Cash paid for income taxes during the period, net of refunds | $ 34,657 | $ 80,159 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Aug. 23, 2020 | |
Accounting Policies [Abstract] | |
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. In March 2019, the Company completed an initial public offering ("IPO") of its Class A common stock, as a result of which its Class A common stock began trading on the New York Stock Exchange under the symbol "LEVI". 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 24, 2019, included in the Company's 2019 Annual Report on Form 10-K. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. 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 nine months ended August 23, 2020 may not be indicative of the results to be expected for any other interim period or the year ending November 29, 2020. 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 2020 and 2019 consists of 13 weeks, with the exception of the fourth quarter of 2020, which will consist of 14 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters. COVID-19 Update The COVID-19 pandemic has materially impacted the Company's business and results of operations in 2020. Based on our initial estimates of the adverse impacts from the COVID-19 pandemic on the business, $242.0 million in incremental charges were recorded during the second quarter of fiscal 2020. During the three-month period ended August 23, 2020, $11.0 million of net reductions in the charges were recognized, consisting of $7.9 million in reductions of adverse fabric purchase commitments and inventory reserves and $6.6 million in recoveries of receivables previously estimated to be not collectible, offset by incremental restructuring and other costs incurred in response to the global pandemic. On a year-to-date basis, the net $231.0 million in charges consisted of $68.4 million of restructuring charges, COVID-19 related inventory costs of $77.9 million, and charges for customer receivables, asset impairments and other related charges of $84.7 million. For more information on the restructuring charges, refer to Note 6. Substantially all of our company-operated stores were temporarily closed for varying periods of time throughout the second quarter. At the start of the third quarter, approximately half of our owned and operated retail stores were closed, with the majority reopened by mid-July but, in many cases, with reduced operating hours and occupancy levels. Our wholesale customers, including third-party retailers and franchise partners, have also experienced significant business disruptions, including lower traffic and consumer demand, resulting in decreased shipments to these customers. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law in the United States. The CARES Act provides relief to U.S. Corporations through financial assistance programs and modifications to certain income tax provisions. The Company is applying certain beneficial provisions of the CARES Act, including the net operating loss carryback provision. Refer to Note 13 for more information. The Company also assessed the impacts of the pandemic on the estimates and assumptions used in preparing these consolidated financial statements. The estimates and assumptions used in these assessments were based on management’s judgment and may be subject to change as new events occur and additional information is obtained. In particular, significant uncertainty remains about the duration and extent of the impact of the COVID-19 pandemic and its resulting impact on global economic conditions. If economic conditions caused by the pandemic do not recover as currently estimated by management, the Company’s financial condition, cash flows and results of operations may be further materially impacted. See below for areas that required more judgments and estimates as a result of COVID-19. Inventory Valuation and Adverse Purchase Commitments The Company values inventory at the lower of cost or net realizable value. Net realizable value is determined by estimating expected selling prices based on anticipated recovery rates for slow-moving and obsolete inventory and other factors, such as market conditions, expected channel of distribution and current consumer demand and preferences. During the second quarter of 2020, an initial estimate of incremental inventory reserves directly related to the expected impact of COVID-19 on forecasted sales and expected selling prices was recorded. During the third quarter of fiscal 2020 and based on the actual selling prices of reserved products, the COVID-19 related impact on inventory valuation was reduced by $1.8 million. For the nine months ended August 23, 2020, the net COVID-19 related impact on inventory valuation, recognized within cost of goods sold, was $48.1 million. The Company also has minimum inventory purchase commitments, including fabric commitments, with suppliers that secure a portion of material needs for future seasons. In light of the COVID-19 pandemic and in response to decreased demand, some of the Company's orders were canceled and a charge for estimated adverse purchase commitments was recorded in the second quarter of fiscal 2020. During the third quarter, the Company recorded a net reduction of $6.1 million in its charge for inventory purchase commitments based on updated demand and actual claims received from suppliers. For the nine months ended August 23, 2020, the net charge of $29.8 million was reflected in cost of goods sold in the Company's consolidated statement of operations. As of August 23, 2020, adverse purchase commitments of $32.5 million, which primarily relate to fabric liabilities as a result of the COVID-19 pandemic, were included in "Other accrued liabilities" in the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable are recorded net of an allowance for doubtful accounts. The Company estimates the allowance for doubtful accounts based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated bankruptcies, customer-specific circumstances and an evaluation of current economic conditions. During the three-month period ended August 23, 2020, the Company recognized a reduction of $6.6 million in COVID-19 related charges, which were initially recorded in the second quarter, primarily due to recoveries of receivables previously estimated to be not collectible. For the nine months ended August 23, 2020, $21.0 million in total COVID-19 related charges were recorded related to accounts receivable including an incremental allowance for doubtful accounts of $8.5 million, and other allowances as a result of changes in customers' financial condition, actual and anticipated bankruptcies and other associated claims. Long-Lived Assets The Company reviews its other long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may be impaired. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows and other quantitative and qualitative factors. Expected future cash flows decreased due to the anticipated COVID-19 related impact on foot traffic and consumer spending trends. As a result, during the second quarter of 2020, the Company recorded $54.1 million of non-cash impairment charges, of which $43.0 million and $11.1 million were related to the impairment of certain store right-of-use and other store assets, respectively. An additional $6.3 million was recognized related to other property and equipment. There were no additional impairment charges recorded in the three-month period ended August 23, 2020. The impairment charges are included in selling, general and administrative expenses ("SG&A") in the accompanying consolidated statements of operations for the nine-month period ended August 23, 2020. 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. As a result of uncertainty and frequently changing information regarding the COVID-19 pandemic and its impact on global economic conditions, estimates may change frequently and in the near term. Reclassification Certain insignificant amounts on the consolidated balance sheets and consolidated statements of cash flow have been conformed to the August 23, 2020 presentation. The Jeans Company Acquisition In December 2019, the Company completed an acquisition of all operating assets related to Levi’s ® and Dockers ® brands from The Jeans Company ("TJC"), the Company's distributor in Chile, Peru and Bolivia, for $52.2 million in cash, plus transaction costs. This includes 78 Levi’s ® and Dockers ® retail stores and one e-commerce site, distribution with the region’s leading multi-brand retailers, and the logistical operations within these markets. The total fair value of assets acquired was $52.2 million and include goodwill, inventory, intangible and fixed assets. The goodwill and intangibles recognized as a result of the acquisition were $22.8 million and $9.2 million, respectively. Restructuring Liabilities Upon approval of a restructuring plan, the Company records restructuring liabilities for employee severance and related termination benefits when they become probable and estimable for recurring arrangements. The Company records other costs associated with exit activities as they are incurred. The long-term portion of restructuring liabilities is included in “Other long-term liabilities” in the Company’s consolidated balance sheets. See Note 6 for more information. Share Repurchases In January 2020, the Company's Board of Directors (the "Board") approved a share repurchase program that authorizes the repurchase of up to $100 million of the Company's Class A common stock. During the six months ended May 24, 2020, 3 million shares were repurchased for $56.2 million, plus broker's commissions, in the open market. This equates to an average repurchase price of approximately $18.73 per share. As of the second quarter of fiscal 2020, the Company has suspended its share buyback program until further notice. The Company accounts for share repurchases by charging the excess of repurchase price over the repurchased Class A common stock's par value entirely to retained earnings. All repurchased shares are retired and become authorized but unissued shares. The Company accrues for the shares purchased under the share repurchase plan based on the trade date. The Company may terminate or limit the share repurchase program at any time. Noncontrolling Interest In January 2020, the Company completed an all cash tender offer for the acquisition of the remaining 16.4% minority interest shares of Levi Strauss Japan K.K.'s common stock for a total purchase price of $13.6 million, plus transaction costs. As a result, Levi Strauss Japan K.K. has become a wholly owned subsidiary. Prior to this transaction, the noncontrolling interest included a 16.4% minority interest of third parties in Levi Strauss Japan K.K., the Company's Japanese subsidiary. Changes in Accounting Principles • In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 elected the transition method that applies the new lease standard at the adoption date instead of the earliest period presented. The Company elected the practical expedient to not separate lease components from nonlease components for all leases. Additionally, the Company made an accounting policy election to keep leases with an initial 12-month term or less off of the balance sheet and recognize these lease payments within the consolidated statements of operations on a straight-line basis over the term of the lease. The Company elected the package of transition practical expedients which allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for existing leases. The Company adopted this standard in the first quarter of fiscal 2020. Upon adoption, the Company recognized $1.0 billion of total operating lease liabilities and $1.0 billion of operating lease ROU assets, as well as removed $61 million of existing deferred rent liabilities, which was recorded as an offset against the ROU assets. In addition, the Company removed $43 million and $53 million of existing assets and liabilities related to build-to-suit lease arrangements, respectively. The difference of $10 million was recognize in retained earnings as of the date of initial application. The adoption of the standard did not have a material impact on the consolidated statements of operations or consolidated statements of cash flows. Refer to Note 8 for more information on the Company's lease arrangements. • In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . ASU 2018-02 addresses certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from the Tax Act enacted on December 22, 2017. The Company adopted this standard in the first quarter of fiscal 2020. As a result of the adoption, a $54.4 million adjustment was included in retained earnings with an offsetting adjustment to accumulated other comprehensive income (loss). • Effective February 24, 2020, the Company early adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment issued by the FASB in January 2017, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The impact of the new standard will depend on the specific facts and circumstances of future individual goodwill impairments, if any. 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 2019 Annual Report on Form 10-K, except for the following: First Quarter 2021 • In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for the Company in the first quarter of fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. First Quarter 2022 • In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . The ASU is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. First Quarter 2023 • In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Aug. 23, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company’s financial instruments that are carried at fair value: August 23, 2020 November 24, 2019 Fair Value Estimated Fair Value Estimated 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 $ 66,596 $ 66,596 $ — $ 49,207 $ 49,207 $ — Short-term investments in marketable securities 72,279 72,279 80,741 — 80,741 Derivative instruments (3) 6,266 — 6,266 16,323 — 16,323 Total $ 145,141 $ 66,596 $ 78,545 $ 146,271 $ 49,207 $ 97,064 Financial liabilities carried at fair value Derivative instruments (3) 9,981 — 9,981 8,123 — 8,123 Total $ 9,981 $ — $ 9,981 $ 8,123 $ — $ 8,123 _____________ (1) Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of 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: August 23, 2020 November 24, 2019 Carrying Estimated Fair Carrying Estimated Fair (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1) $ 1,001,245 $ 1,024,651 $ 489,299 $ 505,757 3.375% senior notes due 2027 (1) 565,603 576,759 522,524 556,266 Short-term borrowings 23,954 23,954 7,621 7,621 Total $ 1,590,802 $ 1,625,364 $ 1,019,444 $ 1,069,644 _____________ (1) Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Aug. 23, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Designated Cash Flow Hedges The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales. The Company’s global sourcing organization uses the U.S. dollar as its functional currency and is primarily exposed to changes in functional currency equivalent cash flows from anticipated inventory purchases, as it procures inventory on behalf of subsidiaries with 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 Cost of goods sold for hedges of anticipated inventory purchases and in Net revenues for hedges of anticipated sales on a straight-line basis over the life of the contract. In each accounting period, differences between the change in fair value of the forward points and the amount recognized on a straight-line basis is recognized in other comprehensive income (loss). There was no hedge ineffectiveness for the nine months ended August 23, 2020. 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 (expense), net" in the Company’s consolidated statements of operations. As of August 23, 2020, the Company had forward foreign exchange contracts derivatives that were not designated as hedges in qualifying hedging relationships, of which $516.4 million were contracts to buy and $176.8 million were contracts to sell various foreign currencies. These contracts are at various exchange rates and expire at various dates through February 2022. The table below provides data about the carrying values of derivative and non-derivative instruments: August 23, 2020 November 24, 2019 Assets (Liabilities) Derivative Assets (Liabilities) Derivative Carrying Carrying Carrying Carrying (Dollars in thousands) Derivatives designated as hedging instruments Foreign exchange risk cash flow hedges (1) $ 2,955 $ — $ 2,955 $ 6,149 $ — $ 6,149 Foreign exchange risk cash flow hedges (2) — (8,062) (8,062) — (3,809) (3,809) Total $ 2,955 $ (8,062) $ 6,149 $ (3,809) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 6,283 $ (2,972) $ 3,311 $ 16,323 $ (6,149) $ 10,174 Forward foreign exchange contracts (2) 8,062 (9,981) (1,919) 3,813 (8,127) (4,314) Total $ 14,345 $ (12,953) $ 20,136 $ (14,276) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (563,350) $ — $ (525,255) _____________ (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: August 23, 2020 November 24, 2019 Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts (Dollars in thousands) Foreign exchange risk contracts and forward foreign exchange contracts Financial assets $ 17,300 $ (3,997) $ 13,303 $ 21,839 $ (10,142) $ 11,697 Financial liabilities (21,015) 3,997 (17,018) (16,290) 10,142 (6,148) Total $ (3,715) $ 5,549 Embedded derivative contracts Financial assets $ — $ — $ — $ 4,446 $ — $ 4,446 Financial liabilities — — — (1,795) — (1,795) Total $ — $ 2,651 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) Amount of Gain (Loss) Reclassified from AOCI into Net Income (Loss) (1) As of As of Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Foreign exchange risk contracts $ (9,192) $ 2,781 $ 4,446 $ 869 $ 9,869 $ 1,586 Realized forward foreign exchange swaps (2) 4,637 4,637 — — — — Yen-denominated Eurobonds (19,811) (19,811) — — — — Euro-denominated senior notes (76,266) (38,171) — — — — Cumulative income taxes 28,212 25,606 — — — — Total $ (72,420) $ (24,958) _____________ (1) Amounts reclassified from AOCI were classified as net revenues and cost of goods sold on the consolidated statements of operations. (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, a $8.6 million loss from cash flow hedges is expected to be reclassified from AOCI into net income (loss). The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the consolidated statements of operations: Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 1,325 $ (812) $ (270) $ (3,257) Cost of goods sold $ 3,121 $ 1,681 $ 10,139 $ 4,843 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 operations: Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Realized gain $ 979 $ 979 $ 12,068 $ 8,739 Unrealized gain (loss) (11,692) 535 (1,954) (9,102) Total $ (10,713) $ 1,514 $ 10,114 $ (363) |
Debt
Debt | 9 Months Ended |
Aug. 23, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table presents the Company's debt: August 23, November 24, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 $ 985,519 $ 487,632 3.375% senior notes due 2027 557,783 519,113 Total long-term debt $ 1,543,302 $ 1,006,745 Short-term debt Short-term borrowings 23,941 7,621 Total long-term and short-term debt $ 1,567,243 $ 1,014,366 Senior Notes due 2025 On April 17, 2020, the Company issued an additional $500 million in aggregate principal amount of 5.00% senior notes under the indenture dated April 27, 2015 pursuant to which the Company previously issued $500 million in principal amount of its 5.00% senior notes maturing May 1, 2025 (collectively, the "Senior Notes due 2025"). The Senior Notes due 2025 are treated as a single series and are unsecured obligations that rank equally with all of the Company’s other existing and future unsecured and unsubordinated debt. The additional notes were issued through an institutional private placement and holders will be able to exchange the additional notes for notes with the same principal amount and with substantially identical terms, except that the notes to be received in exchange will be registered under the Securities Act of 1933, as amended (the “Securities Act”). The additional notes were sold at an offering price equal to 100.50% of their principal amount. The net proceeds after initial purchaser discounts and commissions and offering expenses were approximately $496 million and are being used towards general corporate purposes. The Company may redeem some or all of the Senior Notes due 2025 prior to May 1, 2020, at a price equal to 100% of the principal amount, plus an applicable premium and accrued and unpaid interest, if any, to the date of redemption, and a “make-whole” premium; on or after this date, the Company may redeem all or any portion of the notes, at once or over time, at redemption prices specified in the indenture governing the notes, plus accrued and unpaid interest, if any, to the date of redemption. Senior Revolving Credit Facility The Company's unused availability under its senior secured revolving credit facility (the "Credit Facility") was $608.0 million at August 23, 2020, as the Company's total availability of $638.5 million was reduced by $30.5 million of letters of credit and other credit usage allocated under the Credit Facility. In April 2020, as a precautionary measure to maximize liquidity and to increase available cash on hand in response to the pandemic, the Company drew down $300 million on its senior secured revolving credit facility. In June 2020, the Company subsequently repaid this $300 million draw down in full. As detailed in the Credit Facility, additional draws from the Credit Facility, to the extent they exceed certain levels based on the Company’s borrowing base, could create additional restrictions on the Company, including limitations on (i) certain investment activities, (ii) payment of dividends and (iii) prepayment of certain other indebtedness. Interest Rates on Borrowings The Company’s weighted-average interest rate on average borrowings outstanding during the three and nine months ended August 23, 2020 was 4.78% and 4.65%, respectively, as compared to 5.30% and 5.28%, respectively, during the same periods of 2019. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Aug. 23, 2020 | |
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 Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Net periodic benefit cost: Pension benefits $ 1,830 $ 3,975 $ 5,186 $ 11,968 Postretirement benefits 509 893 1,528 2,679 Net periodic benefit cost $ 2,339 $ 4,868 $ 6,714 $ 14,647 |
Restructuring
Restructuring | 9 Months Ended |
Aug. 23, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In April 2020, the Board endorsed a restructuring initiative designed to reduce costs, streamline operations and support agility. On July 7, 2020, the Company announced and began to implement the restructuring initiative, which the Company expects to substantially complete by the middle of fiscal year 2021. The adverse impacts of the COVID-19 pandemic on the Company's business necessitated cost reduction actions while plans to streamline operations continue to be developed. The initiative includes the elimination of approximately 15% of the Company's global non-retail and non-manufacturing positions and is expected to result in approximately $100 million in annual cost savings. For the three and nine months ended August 23, 2020, the Company recognized restructuring charges of $1.1 million and $68.4 million, respectively, which were recorded on a separate line item in the Company's consolidated statements of operations. The charges primarily relate to severance benefits, based on separation benefits provided by Company policy or statutory benefit plans. The Company estimates that it will incur future additional charges related to this restructuring initiative. The following tables summarize the activities associated with restructuring liabilities for the three and nine months ended August 23, 2020. In the tables below, "Charges" represents the initial charge related to the restructuring activity, "Payments" consists of cash payments for severance and employee-related benefits, and "Foreign Currency Fluctuations and Other Adjustments" includes foreign currency fluctuations as well as revisions of estimates related to severance and employee-related benefits. As of August 23, 2020, $58.0 million and $3.5 million were classified as restructuring liabilities and other long-term liabilities, respectively, within the Company's consolidated balance sheet. Three Months Ended August 23, 2020 Liabilities (1) Charges Payments Foreign Currency Fluctuations Liabilities (1) May 24, August 23, (Dollars in thousands) Severance and employee-related benefits $ 65,878 $ 550 $ (5,138) $ 182 $ 61,472 _____________ (1) Excludes $1.6 million and $2.1 million, respectively, of pension and postretirement curtailment losses recorded in AOCI as of May 24, 2020 and August 23, 2020. Nine Months Ended August 23, 2020 Liabilities Charges Payments Foreign Currency Fluctuations Liabilities (1) November 24, August 23, (Dollars in thousands) Severance and employee-related benefits $ — $ 66,428 $ (5,138) $ 182 $ 61,472 _____________ (1) Excludes $2.1 million of pension and postretirement curtailment losses recorded in AOCI as of August 23, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Aug. 23, 2020 | |
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 claims, complaints and pending cases, including contractual matters, facility and employee-related matters, distribution matters, product liability matters, intellectual property matters, bankruptcy preference matters, and tax and administrative matters. The Company establishes loss provisions for these ordinary course claims as well as other matters in which losses are probable and can be reasonably estimated. As of August 23, 2020, the Company has recorded certain reserves for these matters which are not material. The Company does not believe any of these pending claims, complaints and legal proceedings will have a material impact on its financial condition, results of operations or cash flows. Customs Duty Audits. The Company imports both raw materials and finished garments into all of its 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 has various pending audit assessments in connection with these activities. 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. Inventory Purchase Commitments. The Company also has minimum inventory purchase commitments, including fabric commitments, with suppliers that secure a portion of material needs for future seasons. In light of the COVID-19 pandemic and in response to decreased demand, some of the Company's orders were canceled and a charge for estimated adverse purchase commitments was recorded in the second quarter of fiscal 2020. During the third quarter, the Company recorded a net reduction of $6.1 million in its charge for inventory purchase commitments based on updated demand and actual claims received from suppliers. For the nine months ended August 23, 2020, the net charge of $29.8 million was reflected in cost of goods sold in the Company's consolidated statement of operations. As of August 23, 2020, adverse purchase commitments of $32.5 million, which primarily relate to fabric liabilities as a result of the COVID-19 pandemic, were included in "Other accrued liabilities" in the accompanying consolidated balance sheets. |
Leases
Leases | 9 Months Ended |
Aug. 23, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The Company primarily leases retail store space, certain distribution and warehouse facilities, office space, equipment and other non-real estate assets. The Company determines if an arrangement is a lease at inception and begins recording lease activity at the commencement date, which is generally the date on which the Company takes possession of or controls the physical use of the asset. Right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. The Company's incremental borrowing rates, which are based on the information available at commencement date, are used to determine the present value of future lease payments unless the implicit rate is readily determinable. As of and for the three and nine months ended August 23, 2020, finance leases were not a material component of the Company's lease portfolio. Lease agreements may contain rent escalation clauses, renewal or termination options, rent holidays or certain landlord incentives, including tenant improvement allowances. Right-of-use assets are reduced by the amount of lease incentives. The lease term includes the non-cancelable period of the lease and may include options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. Certain lease agreements include variable lease payments, which are based on a percent of retail sales over specified levels or adjust periodically for inflation. Lease expense is recognized in SG&A within the Company's consolidated statements of operations, based on the underlying nature of the leased asset. For the three and nine months ended August 23, 2020, lease expense primarily consisted of operating lease costs of $70.9 million and $229.3 million, respectively, including $4.0 million and $31.5 million, respectively, primarily related to variable lease costs and an immaterial amount of short-term lease costs. Amounts of future undiscounted cash flows related to operating lease payments over the lease term are as follows and are reconciled to the present value of the operating lease liabilities as recorded on the Company's consolidated balance sheets. August 23, 2020 (1) (Dollars in thousands) 2020 $ 67,251 2021 242,695 2022 207,118 2023 166,182 2024 134,646 Thereafter 324,909 Total undiscounted future cash flows related to lease payments 1,142,801 Less: Interest 72,337 Present value of lease liabilities $ 1,070,464 _____________ (1) Excludes $7.7 million of future operating lease payments for lease agreements signed but not yet commenced. The following table includes the weighted average remaining lease terms, in years, and the weighted average discount rate used to calculate the present value of operating lease liabilities: August 23, Weighted-average remaining lease term (years) 5.9 Weighted-average discount rate 2.26 % The table below includes supplemental cash and non-cash information related to operating leases: August 23, (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 176,744 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 111,151 _____________ (1) Excludes the amount initially capitalized in conjunction with the adoption of Topic 842. Amounts of minimum future annual commitments under non-cancelable operating leases and lease financing obligations in accordance with Topic 840 were as follows: November 24, (Dollars in thousands) 2020 $ 234,092 2021 203,483 2022 174,536 2023 140,278 2024 111,176 Thereafter 284,114 Total undiscounted future cash flows related to lease payments $ 1,147,679 |
Dividend
Dividend | 9 Months Ended |
Aug. 23, 2020 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND Dividends are declared at the discretion of the Board. In January and April 2020, the Company declared quarterly cash dividends of $0.08 per share to holders of record of its Class A and Class B common stock. Dividends in the amount of $63.6 million were paid during the nine months ended August 23, 2020. The Company determined not to declare dividends in the third and fourth fiscal quarters of 2020. The Company does not have an established dividend policy. The Board reviews the Company's ability to pay dividends on an ongoing basis and establishes the dividend amount based on the Company's financial condition, results of operations, capital requirements, current and projected cash flows and other factors, and any restrictions related to the terms of the Company’s debt agreements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Aug. 23, 2020 | |
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: August 23, November 24, August 25, (Dollars in thousands) Pension and postretirement benefits $ (257,676) $ (220,859) $ (221,278) Derivative instruments (72,420) (24,958) (21,705) Foreign currency translation losses (169,024) (155,841) (157,980) Unrealized gains on marketable securities 11,197 6,288 4,291 Accumulated other comprehensive loss (487,923) (395,370) (396,672) Accumulated other comprehensive income attributable to noncontrolling interest (1) — 9,616 9,778 Accumulated other comprehensive loss attributable to Levi Strauss & Co. $ (487,923) $ (404,986) $ (406,450) _____________ (1) On January 9, 2020, Company completed an all cash tender offer for the acquisition of the remaining minority interest shares of Levi Strauss Japan K.K. Refer to Note 1 for additional information. |
Net Revenues
Net Revenues | 9 Months Ended |
Aug. 23, 2020 | |
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 August 23, 2020 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 404,529 $ 222,777 $ 41,484 $ 668,790 Direct-to-consumer 145,269 167,596 81,430 394,295 Total net revenues $ 549,798 $ 390,373 $ 122,914 $ 1,063,085 Nine Months Ended August 23, 2020 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 1,071,835 $ 569,918 $ 204,087 $ 1,845,840 Direct-to-consumer 506,271 462,421 252,221 1,220,913 Total net revenues $ 1,578,106 $ 1,032,339 $ 456,308 $ 3,066,753 _____________ (1) For the three-month and nine-month periods ended August 23, 2020, net revenues from both channels were adversely impacted by temporary store closures and reduced traffic and consumer demand as a result of the COVID-19 pandemic, with the majority of the impact occurring in the second quarter when the majority of company-operated and wholesale customer doors were temporarily closed. See Note 1 for more information. Three Months Ended August 25, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 548,214 $ 272,484 $ 122,114 $ 942,812 Direct-to-consumer 222,603 190,774 90,892 504,269 Total net revenues $ 770,817 $ 463,258 $ 213,006 $ 1,447,081 Nine Months Ended August 25, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 1,519,973 $ 733,397 $ 370,425 $ 2,623,795 Direct-to-consumer 660,806 592,906 316,972 1,570,684 Total net revenues $ 2,180,779 $ 1,326,303 $ 687,397 $ 4,194,479 The Company did not have any material contract assets or contract liabilities recorded in the consolidated balance sheets as of August 23, 2020 and November 24, 2019 |
Other Income, Net
Other Income, Net | 9 Months Ended |
Aug. 23, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER EXPENSE, NET The following table summarizes significant components of "Other expense, net": Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Foreign exchange management gains (losses) (1) $ (10,712) $ 1,514 $ 10,114 $ (363) Foreign currency transaction losses (2) (3,052) (6,671) (25,138) (9,634) Interest income 1,547 4,986 7,685 12,644 Investment income 501 493 1,244 1,506 Other, net (558) (4,691) (2,174) (7,002) Total other expense, net $ (12,274) $ (4,369) $ (8,269) $ (2,849) _____________ (1) Gains and losses on forward foreign exchange contracts primarily resulted from currency fluctuations relative to negotiated contract rates. Losses in the three-month period ended August 23, 2020 were primarily due to unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, Canadian Dollar and Australian Dollar. Gains in the nine-month period ended August 23, 2020 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro and Mexican Peso, partially offset by unfavorable position on the British Pound. |
Income Taxes
Income Taxes | 9 Months Ended |
Aug. 23, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On March 27, 2020, the CARES Act was signed into law in the United States. The CARES Act includes certain provisions that affect income taxes, including temporary five-year net operating loss carryback provisions and a modification of interest deduction limitations. The Company's effective income tax rate for the three months ended August 23, 2020 was 47.6% and reflects a $24.6 million income tax expense recorded on $51.6 million of pre-tax income. The effective income tax rate for the three months ended August 25, 2019 was 18.0% and reflects a $27.3 million income tax expense recorded on $151.6 million of pre-tax income. The increase in the effective tax rate in the quarter was primarily the result of a decline in the annual effective tax rate which was driven by a $7.1 million reduction in the tax benefit for losses carried back under the CARES Act. The Company initially recorded a tax benefit related to the CARES Act in the second quarter and such amount was updated during the three months ended August 23, 2020. The effective income tax rate for the nine months ended August 23, 2020 was 24.0% and reflects a $57.9 million income tax benefit recorded on $241.7 million of pre-tax losses. The effective income tax rate for the nine months ended August 25, 2019 was 16.7% and reflects a $60.2 million income tax expense recorded on $359.4 million of pre-tax income. The increase in the effective tax rate was primarily driven by discrete tax benefits of $22.0 million attributable to employees exercising stock-based equity awards in 2020 and $1.9 million related to net operating loss carryback provisions under the CARES Act. These were partially offset by valuation allowance charges in 2020 of $17.7 million on deferred tax assets that are not more likely than not to be realized. |
Earnings (Loss) Per Share Attri
Earnings (Loss) Per Share Attributable to Common Stockholders | 9 Months Ended |
Aug. 23, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Common Stockholders | EARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table sets forth the computation of the Company's basic and diluted earnings (loss) per share: Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands, except per share amounts) Numerator: Net income (loss) attributable to Levi Strauss & Co. $ 27,049 $ 124,509 $ (183,811) $ 299,316 Denominator: Weighted-average common shares outstanding - basic 397,711,322 394,169,688 397,010,522 387,289,913 Dilutive effect of stock awards 9,966,063 19,470,061 — 20,554,223 Weighted-average common shares outstanding - diluted 407,677,385 413,639,749 397,010,522 407,844,136 Earnings (loss) per common share attributable to common stockholders: Basic $ 0.07 $ 0.32 $ (0.46) $ 0.77 Diluted $ 0.07 $ 0.30 $ (0.46) $ 0.73 Anti-dilutive securities excluded from calculation of diluted earnings (loss) per share attributable to common stockholders 3,214,295 — — — |
Related Parties
Related Parties | 9 Months Ended |
Aug. 23, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIESCharles V. Bergh, President and Chief Executive Officer, and Marc Rosen, Executive Vice President and President of Levi Strauss Americas, are members of the Board of Directors of the Levi Strauss Foundation, which is not a consolidated entity of the Company. Seth R. Jaffe, Executive Vice President and General Counsel, is Vice President of the Levi Strauss Foundation. During the three-month and nine-month periods ended August 23, 2020, the Company donated $0.4 million and $9.5 million, respectively, to the Levi Strauss Foundation as compared to $0.4 million and $9.3 million for the same prior-year periods. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Aug. 23, 2020 | |
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 Nine Months Ended August 23, 2020 (1) August 25, August 23, 2020 (1) August 25, (Dollars in thousands) Net revenues: Americas $ 549,798 $ 770,817 $ 1,578,106 $ 2,180,779 Europe 390,373 463,258 1,032,339 1,326,303 Asia 122,914 213,006 456,308 687,397 Total net revenues $ 1,063,085 $ 1,447,081 $ 3,066,753 $ 4,194,479 Operating income (loss): Americas $ 92,294 $ 151,558 $ 178,585 $ 376,845 Europe 87,611 102,911 152,290 283,244 Asia (23,301) 17,410 (19,132) 77,438 Regional operating income (loss) 156,604 271,879 311,743 737,527 Corporate: Restructuring 1,071 — 68,442 — Other corporate staff costs and expenses (2) 63,208 100,661 420,438 302,499 Corporate expenses 64,279 100,661 488,880 302,499 Total operating income (loss) 92,325 171,218 (177,137) 435,028 Interest expense (28,437) (15,292) (56,337) (47,962) Underwriter commission paid on behalf of selling stockholders — — — (24,860) Other income, net (12,274) (4,369) (8,269) (2,849) Income (loss) before income taxes $ 51,614 $ 151,557 $ (241,743) $ 359,357 _____________ (1) For the three-month and nine-month periods ended August 23, 2020, the Company's business and results of operations were impacted by temporary store closures and reduced traffic and consumer demand as a result of the COVID-19 pandemic, with the majority of the impact occurring in the second quarter as most company-operated and wholesale customer doors were temporarily closed. Refer to Note 1 for more information. (2) Corporate staff costs and expenses for the three-month and nine-month periods ended August 23, 2020 includes incremental COVID-19 related charges that management does not attribute to any of the regional segments in order to provide increased transparency and comparability of regional performance. During the three-month period ended August 23, 2020, the Company recognized a $1.8 million reduction in incremental inventory reserves related to the Europe regional segment and charges for adverse fabric purchase commitments of $2.0 million related to the Asia regional segment. Recoveries of doubtful accounts of $6.6 million was recognized, of which $6.3 million and $0.3 million, were related to the Europe and Asia regional segments, respectively. During the nine-month period ended August 23, 2020, the Company recognized $48.1 million of incremental inventory reserves of which $28.8 million, $11.7 million and $7.6 million were related to the Americas, Europe and Asia regional segments, respectively, and charges for adverse fabric purchase commitments of $2.0 million related to the Asia regional segment. Net charges related to incremental allowance for doubtful accounts of $8.5 million were recognized, of which $6.3 million and $2.2 million were related to the Americas and Europe regional segments, respectively. Additionally, the Company recognized $54.1 million in impairment of long-lived assets related to certain retail locations, of which $48.6 million, $3.7 million and $1.8 million, were related to the Americas, Europe and Asia regional segments, respectively. Refer to Note 1 for additional information. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Aug. 23, 2020 | |
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 2020 and 2019 consists of 13 weeks, with the exception of the fourth quarter of 2020, which will consist of 14 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 | Changes in Accounting Principles • In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 elected the transition method that applies the new lease standard at the adoption date instead of the earliest period presented. The Company elected the practical expedient to not separate lease components from nonlease components for all leases. Additionally, the Company made an accounting policy election to keep leases with an initial 12-month term or less off of the balance sheet and recognize these lease payments within the consolidated statements of operations on a straight-line basis over the term of the lease. The Company elected the package of transition practical expedients which allowed the Company to carry forward prior conclusions related to: (i) whether any expired or existing contracts contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for existing leases. The Company adopted this standard in the first quarter of fiscal 2020. Upon adoption, the Company recognized $1.0 billion of total operating lease liabilities and $1.0 billion of operating lease ROU assets, as well as removed $61 million of existing deferred rent liabilities, which was recorded as an offset against the ROU assets. In addition, the Company removed $43 million and $53 million of existing assets and liabilities related to build-to-suit lease arrangements, respectively. The difference of $10 million was recognize in retained earnings as of the date of initial application. The adoption of the standard did not have a material impact on the consolidated statements of operations or consolidated statements of cash flows. Refer to Note 8 for more information on the Company's lease arrangements. • In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . ASU 2018-02 addresses certain stranded income tax effects in accumulated other comprehensive income (loss) resulting from the Tax Act enacted on December 22, 2017. The Company adopted this standard in the first quarter of fiscal 2020. As a result of the adoption, a $54.4 million adjustment was included in retained earnings with an offsetting adjustment to accumulated other comprehensive income (loss). • Effective February 24, 2020, the Company early adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment issued by the FASB in January 2017, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Under this guidance, if the carrying amount of a reporting unit exceeds its estimated fair value, an impairment charge shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The impact of the new standard will depend on the specific facts and circumstances of future individual goodwill impairments, if any. 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 2019 Annual Report on Form 10-K, except for the following: First Quarter 2021 • In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for the Company in the first quarter of fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. First Quarter 2022 • In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes . The ASU is intended to enhance and simplify aspects of the income tax accounting guidance in ASC 740 as part of the FASB's simplification initiative. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. First Quarter 2023 • In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
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: August 23, 2020 November 24, 2019 Fair Value Estimated Fair Value Estimated 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 $ 66,596 $ 66,596 $ — $ 49,207 $ 49,207 $ — Short-term investments in marketable securities 72,279 72,279 80,741 — 80,741 Derivative instruments (3) 6,266 — 6,266 16,323 — 16,323 Total $ 145,141 $ 66,596 $ 78,545 $ 146,271 $ 49,207 $ 97,064 Financial liabilities carried at fair value Derivative instruments (3) 9,981 — 9,981 8,123 — 8,123 Total $ 9,981 $ — $ 9,981 $ 8,123 $ — $ 8,123 _____________ (1) Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of 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. |
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: August 23, 2020 November 24, 2019 Carrying Estimated Fair Carrying Estimated Fair (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1) $ 1,001,245 $ 1,024,651 $ 489,299 $ 505,757 3.375% senior notes due 2027 (1) 565,603 576,759 522,524 556,266 Short-term borrowings 23,954 23,954 7,621 7,621 Total $ 1,590,802 $ 1,625,364 $ 1,019,444 $ 1,069,644 _____________ (1) Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying values of derivative instruments and non-derivative instruments | The table below provides data about the carrying values of derivative and non-derivative instruments: August 23, 2020 November 24, 2019 Assets (Liabilities) Derivative Assets (Liabilities) Derivative Carrying Carrying Carrying Carrying (Dollars in thousands) Derivatives designated as hedging instruments Foreign exchange risk cash flow hedges (1) $ 2,955 $ — $ 2,955 $ 6,149 $ — $ 6,149 Foreign exchange risk cash flow hedges (2) — (8,062) (8,062) — (3,809) (3,809) Total $ 2,955 $ (8,062) $ 6,149 $ (3,809) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 6,283 $ (2,972) $ 3,311 $ 16,323 $ (6,149) $ 10,174 Forward foreign exchange contracts (2) 8,062 (9,981) (1,919) 3,813 (8,127) (4,314) Total $ 14,345 $ (12,953) $ 20,136 $ (14,276) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (563,350) $ — $ (525,255) _____________ (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: August 23, 2020 November 24, 2019 Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts (Dollars in thousands) Foreign exchange risk contracts and forward foreign exchange contracts Financial assets $ 17,300 $ (3,997) $ 13,303 $ 21,839 $ (10,142) $ 11,697 Financial liabilities (21,015) 3,997 (17,018) (16,290) 10,142 (6,148) Total $ (3,715) $ 5,549 Embedded derivative contracts Financial assets $ — $ — $ — $ 4,446 $ — $ 4,446 Financial liabilities — — — (1,795) — (1,795) Total $ — $ 2,651 |
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) Amount of Gain (Loss) Reclassified from AOCI into Net Income (Loss) (1) As of As of Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Foreign exchange risk contracts $ (9,192) $ 2,781 $ 4,446 $ 869 $ 9,869 $ 1,586 Realized forward foreign exchange swaps (2) 4,637 4,637 — — — — Yen-denominated Eurobonds (19,811) (19,811) — — — — Euro-denominated senior notes (76,266) (38,171) — — — — Cumulative income taxes 28,212 25,606 — — — — Total $ (72,420) $ (24,958) _____________ (1) Amounts reclassified from AOCI were classified as net revenues and cost of goods sold on the consolidated statements of operations. (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. |
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 operations: Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 1,325 $ (812) $ (270) $ (3,257) Cost of goods sold $ 3,121 $ 1,681 $ 10,139 $ 4,843 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 operations: Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Realized gain $ 979 $ 979 $ 12,068 $ 8,739 Unrealized gain (loss) (11,692) 535 (1,954) (9,102) Total $ (10,713) $ 1,514 $ 10,114 $ (363) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term and short-term debt instruments | The following table presents the Company's debt: August 23, November 24, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 $ 985,519 $ 487,632 3.375% senior notes due 2027 557,783 519,113 Total long-term debt $ 1,543,302 $ 1,006,745 Short-term debt Short-term borrowings 23,941 7,621 Total long-term and short-term debt $ 1,567,243 $ 1,014,366 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
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 Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Net periodic benefit cost: Pension benefits $ 1,830 $ 3,975 $ 5,186 $ 11,968 Postretirement benefits 509 893 1,528 2,679 Net periodic benefit cost $ 2,339 $ 4,868 $ 6,714 $ 14,647 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Three Months Ended August 23, 2020 Liabilities (1) Charges Payments Foreign Currency Fluctuations Liabilities (1) May 24, August 23, (Dollars in thousands) Severance and employee-related benefits $ 65,878 $ 550 $ (5,138) $ 182 $ 61,472 _____________ (1) Excludes $1.6 million and $2.1 million, respectively, of pension and postretirement curtailment losses recorded in AOCI as of May 24, 2020 and August 23, 2020. Nine Months Ended August 23, 2020 Liabilities Charges Payments Foreign Currency Fluctuations Liabilities (1) November 24, August 23, (Dollars in thousands) Severance and employee-related benefits $ — $ 66,428 $ (5,138) $ 182 $ 61,472 _____________ (1) Excludes $2.1 million of pension and postretirement curtailment losses recorded in AOCI as of August 23, 2020. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Liabilities | August 23, 2020 (1) (Dollars in thousands) 2020 $ 67,251 2021 242,695 2022 207,118 2023 166,182 2024 134,646 Thereafter 324,909 Total undiscounted future cash flows related to lease payments 1,142,801 Less: Interest 72,337 Present value of lease liabilities $ 1,070,464 _____________ (1) Excludes $7.7 million of future operating lease payments for lease agreements signed but not yet commenced. |
Assets And Liabilities, Lessee | The following table includes the weighted average remaining lease terms, in years, and the weighted average discount rate used to calculate the present value of operating lease liabilities: August 23, Weighted-average remaining lease term (years) 5.9 Weighted-average discount rate 2.26 % |
Supplemental Cash and Non-Cash Information | The table below includes supplemental cash and non-cash information related to operating leases: August 23, (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 176,744 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 111,151 _____________ (1) Excludes the amount initially capitalized in conjunction with the adoption of Topic 842. |
Schedule of Operating Lease and Financing Obligations | Amounts of minimum future annual commitments under non-cancelable operating leases and lease financing obligations in accordance with Topic 840 were as follows: November 24, (Dollars in thousands) 2020 $ 234,092 2021 203,483 2022 174,536 2023 140,278 2024 111,176 Thereafter 284,114 Total undiscounted future cash flows related to lease payments $ 1,147,679 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
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: August 23, November 24, August 25, (Dollars in thousands) Pension and postretirement benefits $ (257,676) $ (220,859) $ (221,278) Derivative instruments (72,420) (24,958) (21,705) Foreign currency translation losses (169,024) (155,841) (157,980) Unrealized gains on marketable securities 11,197 6,288 4,291 Accumulated other comprehensive loss (487,923) (395,370) (396,672) Accumulated other comprehensive income attributable to noncontrolling interest (1) — 9,616 9,778 Accumulated other comprehensive loss attributable to Levi Strauss & Co. $ (487,923) $ (404,986) $ (406,450) _____________ |
Net Revenues (Tables)
Net Revenues (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
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 August 23, 2020 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 404,529 $ 222,777 $ 41,484 $ 668,790 Direct-to-consumer 145,269 167,596 81,430 394,295 Total net revenues $ 549,798 $ 390,373 $ 122,914 $ 1,063,085 Nine Months Ended August 23, 2020 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 1,071,835 $ 569,918 $ 204,087 $ 1,845,840 Direct-to-consumer 506,271 462,421 252,221 1,220,913 Total net revenues $ 1,578,106 $ 1,032,339 $ 456,308 $ 3,066,753 _____________ (1) For the three-month and nine-month periods ended August 23, 2020, net revenues from both channels were adversely impacted by temporary store closures and reduced traffic and consumer demand as a result of the COVID-19 pandemic, with the majority of the impact occurring in the second quarter when the majority of company-operated and wholesale customer doors were temporarily closed. See Note 1 for more information. Three Months Ended August 25, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 548,214 $ 272,484 $ 122,114 $ 942,812 Direct-to-consumer 222,603 190,774 90,892 504,269 Total net revenues $ 770,817 $ 463,258 $ 213,006 $ 1,447,081 Nine Months Ended August 25, 2019 Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 1,519,973 $ 733,397 $ 370,425 $ 2,623,795 Direct-to-consumer 660,806 592,906 316,972 1,570,684 Total net revenues $ 2,180,779 $ 1,326,303 $ 687,397 $ 4,194,479 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | The following table summarizes significant components of "Other expense, net": Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands) Foreign exchange management gains (losses) (1) $ (10,712) $ 1,514 $ 10,114 $ (363) Foreign currency transaction losses (2) (3,052) (6,671) (25,138) (9,634) Interest income 1,547 4,986 7,685 12,644 Investment income 501 493 1,244 1,506 Other, net (558) (4,691) (2,174) (7,002) Total other expense, net $ (12,274) $ (4,369) $ (8,269) $ (2,849) _____________ (1) Gains and losses on forward foreign exchange contracts primarily resulted from currency fluctuations relative to negotiated contract rates. Losses in the three-month period ended August 23, 2020 were primarily due to unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, Canadian Dollar and Australian Dollar. Gains in the nine-month period ended August 23, 2020 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro and Mexican Peso, partially offset by unfavorable position on the British Pound. |
Earnings (Loss) Per Share Att_2
Earnings (Loss) Per Share Attributable to Common Stockholders (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
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 (loss) per share: Three Months Ended Nine Months Ended August 23, August 25, August 23, August 25, (Dollars in thousands, except per share amounts) Numerator: Net income (loss) attributable to Levi Strauss & Co. $ 27,049 $ 124,509 $ (183,811) $ 299,316 Denominator: Weighted-average common shares outstanding - basic 397,711,322 394,169,688 397,010,522 387,289,913 Dilutive effect of stock awards 9,966,063 19,470,061 — 20,554,223 Weighted-average common shares outstanding - diluted 407,677,385 413,639,749 397,010,522 407,844,136 Earnings (loss) per common share attributable to common stockholders: Basic $ 0.07 $ 0.32 $ (0.46) $ 0.77 Diluted $ 0.07 $ 0.30 $ (0.46) $ 0.73 Anti-dilutive securities excluded from calculation of diluted earnings (loss) per share attributable to common stockholders 3,214,295 — — — |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Aug. 23, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Business segment information for the Company is as follows: Three Months Ended Nine Months Ended August 23, 2020 (1) August 25, August 23, 2020 (1) August 25, (Dollars in thousands) Net revenues: Americas $ 549,798 $ 770,817 $ 1,578,106 $ 2,180,779 Europe 390,373 463,258 1,032,339 1,326,303 Asia 122,914 213,006 456,308 687,397 Total net revenues $ 1,063,085 $ 1,447,081 $ 3,066,753 $ 4,194,479 Operating income (loss): Americas $ 92,294 $ 151,558 $ 178,585 $ 376,845 Europe 87,611 102,911 152,290 283,244 Asia (23,301) 17,410 (19,132) 77,438 Regional operating income (loss) 156,604 271,879 311,743 737,527 Corporate: Restructuring 1,071 — 68,442 — Other corporate staff costs and expenses (2) 63,208 100,661 420,438 302,499 Corporate expenses 64,279 100,661 488,880 302,499 Total operating income (loss) 92,325 171,218 (177,137) 435,028 Interest expense (28,437) (15,292) (56,337) (47,962) Underwriter commission paid on behalf of selling stockholders — — — (24,860) Other income, net (12,274) (4,369) (8,269) (2,849) Income (loss) before income taxes $ 51,614 $ 151,557 $ (241,743) $ 359,357 _____________ (1) For the three-month and nine-month periods ended August 23, 2020, the Company's business and results of operations were impacted by temporary store closures and reduced traffic and consumer demand as a result of the COVID-19 pandemic, with the majority of the impact occurring in the second quarter as most company-operated and wholesale customer doors were temporarily closed. Refer to Note 1 for more information. (2) Corporate staff costs and expenses for the three-month and nine-month periods ended August 23, 2020 includes incremental COVID-19 related charges that management does not attribute to any of the regional segments in order to provide increased transparency and comparability of regional performance. During the three-month period ended August 23, 2020, the Company recognized a $1.8 million reduction in incremental inventory reserves related to the Europe regional segment and charges for adverse fabric purchase commitments of $2.0 million related to the Asia regional segment. Recoveries of doubtful accounts of $6.6 million was recognized, of which $6.3 million and $0.3 million, were related to the Europe and Asia regional segments, respectively. During the nine-month period ended August 23, 2020, the Company recognized $48.1 million of incremental inventory reserves of which $28.8 million, $11.7 million and $7.6 million were related to the Americas, Europe and Asia regional segments, respectively, and charges for adverse fabric purchase commitments of $2.0 million related to the Asia regional segment. Net charges related to incremental allowance for doubtful accounts of $8.5 million were recognized, of which $6.3 million and $2.2 million were related to the Americas and Europe regional segments, respectively. Additionally, the Company recognized $54.1 million in impairment of long-lived assets related to certain retail locations, of which $48.6 million, $3.7 million and $1.8 million, were related to the Americas, Europe and Asia regional segments, respectively. Refer to Note 1 for additional information. |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions | Jan. 09, 2020USD ($) | Aug. 23, 2020USD ($)region | May 24, 2020USD ($) | Aug. 25, 2019USD ($) | May 24, 2020USD ($) | Aug. 23, 2020USD ($)region$ / sharesshares | Aug. 25, 2019USD ($) | Jan. 31, 2020USD ($) | Nov. 24, 2019USD ($) | May 26, 2019USD ($) | Nov. 25, 2018USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Number of geographical regions | region | 3 | 3 | |||||||||
Reductions taken in connection with the pandemic | $ 11,000 | $ 242,000 | |||||||||
COVID-19 related inventory costs | (7,900) | $ (7,900) | |||||||||
Recoveries from receivables previously estimated to be not collectible | 6,600 | ||||||||||
Restructuring charges, inventory costs and other related charges | 231,000 | ||||||||||
Restructuring charges, net | 1,071 | $ 0 | 68,442 | $ 0 | |||||||
COVID-19 related inventory costs | 77,900 | ||||||||||
Other related charges | 84,700 | ||||||||||
Reduction to inventory valuation | (1,800) | (1,800) | |||||||||
Impact on inventory valuation recognized within cost of goods sold | 48,100 | ||||||||||
Net reduction in inventory purchase commitments | 6,100 | ||||||||||
Adverse purchase commitment | 32,500 | 32,500 | |||||||||
Charge related to customer receivables | 21,000 | ||||||||||
Incremental allowance for doubtful accounts | 8,500 | ||||||||||
Non-cash impairment charges | 54,100 | ||||||||||
Payments for business acquisition | 54,282 | 0 | |||||||||
Goodwill | 263,692 | $ 263,692 | $ 235,788 | ||||||||
Share repurchase program, authorized amount | $ 100,000 | ||||||||||
Shares repurchased (in shares) | shares | 3 | ||||||||||
Repurchased value | $ 56,200 | ||||||||||
Average repurchase price (in usd per share) | $ / shares | $ 18.73 | ||||||||||
Total operating lease liabilities | 1,070,464 | $ 1,070,464 | |||||||||
Operating lease ROU assets | 985,497 | 985,497 | |||||||||
Total stockholders' equity | 1,191,271 | 1,165,206 | 1,468,345 | $ 1,165,206 | 1,191,271 | 1,468,345 | 1,571,557 | $ 1,321,253 | $ 667,459 | ||
Cost of Goods Sold [Member] | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net reduction in inventory purchase commitments | 29,800 | ||||||||||
Accounting Standards Update 2016-02 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total operating lease liabilities | 1,000,000 | 1,000,000 | |||||||||
Operating lease ROU assets | 1,000,000 | 1,000,000 | |||||||||
Deferred rent liabilities | 61,000 | 61,000 | |||||||||
Build-to-suit lease arrangements, assets | 43,000 | 43,000 | |||||||||
Build-to-suit lease arrangements, liabilities | 53,000 | 53,000 | |||||||||
Total stockholders' equity | 10,000 | 10,000 | |||||||||
Cumulative effect of adoption of new accounting standards | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total stockholders' equity | 5,180 | ||||||||||
Accumulated Other Comprehensive Loss | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total stockholders' equity | $ (487,923) | (477,696) | $ (406,450) | (477,696) | $ (487,923) | $ (406,450) | (404,986) | $ (411,256) | $ (424,584) | ||
Accumulated Other Comprehensive Loss | Cumulative effect of adoption of new accounting standards | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total stockholders' equity | $ (54,444) | ||||||||||
The Jeans Company | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Payments for business acquisition | 52,200 | ||||||||||
Goodwill | 22,800 | 22,800 | |||||||||
Intangibles acquired | 9,200 | $ 9,200 | |||||||||
Levi Strauss Japan K.K. | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Minority interest | 16.40% | ||||||||||
Total purchase price of common stock | $ 13,600 | ||||||||||
Certain Store Right-of-Use Assets | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Non-cash impairment charges | 43,000 | ||||||||||
Other Store Assets | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Non-cash impairment charges | 11,100 | ||||||||||
Other Property and Equipment | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Non-cash impairment charges | $ 6,300 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments-Fair Value (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Aug. 23, 2020 | Nov. 24, 2019 |
Financial liabilities carried at fair value | ||
Total | $ 9,981 | $ 8,123 |
Fair Value [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 66,596 | 49,207 |
Short-term investments in marketable securities | 72,279 | 80,741 |
Forward foreign exchange contracts | 6,266 | 16,323 |
Total | 145,141 | 146,271 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 9,981 | 8,123 |
Fair Value [Member] | Level 1 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 66,596 | 49,207 |
Short-term investments in marketable securities | 0 | |
Forward foreign exchange contracts | 0 | 0 |
Total | 66,596 | 49,207 |
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 | 72,279 | 80,741 |
Forward foreign exchange contracts | 6,266 | 16,323 |
Total | 78,545 | 97,064 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 9,981 | 8,123 |
Total | $ 9,981 | $ 8,123 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments-Adjusted Historical Cost (Details) - USD ($) $ in Thousands | Aug. 23, 2020 | Nov. 24, 2019 |
Senior Notes | 5.00% Senior Notes, Due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 5.00% | |
Senior Notes | 3.375% Senior Notes Due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated interest rate | 3.375% | |
Fair Value, Recurring [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt carried at adjusted historical cost | $ 23,954 | $ 7,621 |
Total financial liabilities carried at adjusted historical cost | 1,590,802 | 1,019,444 |
Fair Value, Recurring [Member] | Carrying Value [Member] | Senior Notes | 5.00% Senior Notes, Due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at adjusted historical cost | 1,001,245 | 489,299 |
Fair Value, Recurring [Member] | Carrying Value [Member] | Senior Notes | 3.375% Senior Notes Due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at adjusted historical cost | 565,603 | 522,524 |
Fair Value, Recurring [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt carried at adjusted historical cost | 23,954 | 7,621 |
Total financial liabilities carried at adjusted historical cost | 1,625,364 | 1,069,644 |
Fair Value, Recurring [Member] | Fair Value [Member] | Senior Notes | 5.00% Senior Notes, Due 2025 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at adjusted historical cost | 1,024,651 | 505,757 |
Fair Value, Recurring [Member] | Fair Value [Member] | Senior Notes | 3.375% Senior Notes Due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt carried at adjusted historical cost | $ 576,759 | $ 556,266 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities-Balance Sheet (Details) - USD ($) $ in Thousands | Aug. 23, 2020 | Nov. 24, 2019 |
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 | (563,350) | 525,255 |
Forward foreign exchange contracts [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 17,300 | 21,839 |
Derivative asset, gross liability | (3,997) | (10,142) |
Derivative asset | 13,303 | 11,697 |
Derivative liability, gross asset | 3,997 | 10,142 |
Derivative Liability, gross liability | (21,015) | (16,290) |
Derivative Liability | (17,018) | (6,148) |
Derivative, Fair Value, Net | (3,715) | 5,549 |
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 | 2,955 | 6,149 |
Derivative Liability | (8,062) | (3,809) |
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 | 2,955 | 6,149 |
Derivative asset, gross liability | 0 | 0 |
Derivative asset, Net Carrying Value | 2,955 | 6,149 |
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 | (8,062) | (3,809) |
Derivative liability, Net Carrying Value | (8,062) | (3,809) |
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 | 14,345 | 20,136 |
Derivative Liability | (12,953) | (14,276) |
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 | 6,283 | 16,323 |
Derivative asset, gross liability | (2,972) | (6,149) |
Derivative asset, Net Carrying Value | 3,311 | 10,174 |
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 | 8,062 | 3,813 |
Derivative Liability, gross liability | (9,981) | (8,127) |
Derivative liability, Net Carrying Value | (1,919) | (4,314) |
Embedded Derivative Financial Instruments [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 0 | 4,446 |
Derivative asset, gross liability | 0 | 0 |
Derivative asset | 0 | 4,446 |
Derivative liability, gross asset | 0 | 0 |
Derivative Liability, gross liability | 0 | (1,795) |
Derivative Liability | 0 | (1,795) |
Derivative, Fair Value, Net | 0 | $ 2,651 |
Long [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Foreign exchange contracts | 516,400 | |
Short [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Foreign exchange contracts | $ 176,800 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities-Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | Nov. 24, 2019 | |
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | |||||
Cumulative income taxes, gain or (loss) recognized in AOCI | $ 28,212 | $ 28,212 | $ 25,606 | ||
Total, gain or (loss) recognized in AOCI | (72,420) | (72,420) | (24,958) | ||
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 | (9,192) | (9,192) | 2,781 | ||
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||||
Forward foreign exchange contracts, gain or (loss) reclassified from AOCI | 4,446 | 869 | 9,869 | 1,586 | |
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 | |||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | |||||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | (76,266) | (76,266) | $ (38,171) | ||
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 | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges expected to be reclassified from AOCI into net income within next 12 months | $ (8,600) | $ (8,600) | ||
Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 1,325 | $ (812) | (270) | $ (3,257) |
Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 3,121 | 1,681 | 10,139 | 4,843 |
Forward foreign exchange contracts [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized | 979 | 979 | 12,068 | 8,739 |
Unrealized | (11,692) | 535 | (1,954) | (9,102) |
Total | $ (10,713) | $ 1,514 | $ 10,114 | $ (363) |
Debt-Table (Details)
Debt-Table (Details) - USD ($) $ in Thousands | Aug. 23, 2020 | Nov. 24, 2019 |
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 1,543,302 | $ 1,006,745 |
Short-term debt | 23,941 | 7,621 |
Long-term and short-term debt | 1,567,243 | 1,014,366 |
5.00% Senior Notes, Due 2025 | Senior Notes | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 985,519 | 487,632 |
Stated interest rate | 5.00% | |
3.375% Senior Notes Due 2027 | Senior Notes | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Long-term debt | $ 557,783 | 519,113 |
Stated interest rate | 3.375% | |
Short-term borrowings | ||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||
Short-term debt | $ 23,941 | $ 7,621 |
Debt-Textuals (Details)
Debt-Textuals (Details) - USD ($) | Apr. 17, 2020 | Jun. 30, 2020 | Apr. 30, 2020 | Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 |
Debt Instruments [Line Items] | |||||||
Weighted-average interest rate | 4.78% | 5.30% | 4.65% | 5.28% | |||
Senior Notes | 5.00% Senior Notes, Due 2025 | |||||||
Debt Instruments [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | $ 500,000,000 | |||||
Stated interest rate | 5.00% | 5.00% | |||||
Offering price | 100.50% | ||||||
Net proceeds | $ 496,000,000 | ||||||
Senior revolving credit facility | |||||||
Debt Instruments [Line Items] | |||||||
Unused availability | $ 608,000,000 | $ 608,000,000 | |||||
Total availability | 638,500,000 | 638,500,000 | |||||
Letters of credit and other credit usage | $ 30,500,000 | $ 30,500,000 | |||||
Proceeds from senior revolving credit facility | $ 300,000,000 | ||||||
Repayments of senior revolving credit facility | $ 300,000,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Net periodic benefit cost: | ||||
Net periodic benefit cost | $ 2,339 | $ 4,868 | $ 6,714 | $ 14,647 |
Total pension plan contributions | 3,200 | 17,700 | ||
Pension benefits | ||||
Net periodic benefit cost: | ||||
Net periodic benefit cost | 1,830 | 3,975 | 5,186 | 11,968 |
Postretirement benefits | ||||
Net periodic benefit cost: | ||||
Net periodic benefit cost | $ 509 | $ 893 | $ 1,528 | $ 2,679 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | Nov. 24, 2019 | |
Restructuring and Related Activities [Abstract] | |||||
Global non-retail and non-manufacturing positions, percentage eliminated | 15.00% | ||||
Approximate annualized savings | $ 100,000 | ||||
Restructuring charges, net | $ 1,071 | $ 0 | 68,442 | $ 0 | |
Restructuring liabilities | 58,009 | 58,009 | $ 0 | ||
Other long-term liabilities | $ 3,500 | $ 3,500 |
Restructuring - Restructuring L
Restructuring - Restructuring Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | May 24, 2020 | Aug. 23, 2020 | Aug. 25, 2019 | |
Restructuring Reserve [Roll Forward] | |||||
Charges | $ 1,071 | $ 0 | $ 68,442 | $ 0 | |
Severance and employee-related benefits | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Beginning Balance | 65,878 | $ 0 | 0 | ||
Charges | 550 | 66,428 | |||
Payments | (5,138) | (5,138) | |||
Foreign Currency Fluctuations and Other Adjustments | 182 | 182 | |||
Restructuring Reserve, Ending Balance | $ 61,472 | 65,878 | 61,472 | ||
Pension and postretirement curtailment losses recorded in AOCI | $ 1,600 | $ 2,100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Aug. 23, 2020USD ($) | Aug. 23, 2020USD ($) | |
Gain Contingencies [Line Items] | ||
Purchase Commitment Write-down | $ (6.1) | |
Adverse purchase commitment | $ 32.5 | $ 32.5 |
Cost of Goods Sold [Member] | ||
Gain Contingencies [Line Items] | ||
Purchase Commitment Write-down | $ (29.8) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Aug. 23, 2020 | Aug. 23, 2020 | |
Leases [Abstract] | ||
Operating lease costs | $ 70.9 | $ 229.3 |
Variable lease costs | $ 4 | $ 31.5 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liabilities (Details) $ in Thousands | Aug. 23, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 67,251 |
2021 | 242,695 |
2022 | 207,118 |
2023 | 166,182 |
2024 | 134,646 |
Thereafter | 324,909 |
Total undiscounted future cash flows related to lease payments | 1,142,801 |
Less: Interest | 72,337 |
Present value of lease liabilities | 1,070,464 |
Future operating lease payments, not yet commenced | $ 7,700 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) $ in Thousands | 9 Months Ended |
Aug. 23, 2020USD ($) | |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 5 years 10 months 24 days |
Weighted-average discount rate | 2.26% |
Operating cash outflows from operating leases | $ 176,744 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 111,151 |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating Lease and Financing Obligations (Details) $ in Thousands | Nov. 24, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 234,092 |
2021 | 203,483 |
2022 | 174,536 |
2023 | 140,278 |
2024 | 111,176 |
Thereafter | 284,114 |
Total undiscounted future cash flows related to lease payments | $ 1,147,679 |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Aug. 23, 2020 | Aug. 25, 2019 | Apr. 30, 2020 | Jan. 31, 2020 | |
Class of Stock [Line Items] | ||||
Dividend to stockholders | $ 63,639 | $ 55,000 | ||
Retained Earnings | ||||
Class of Stock [Line Items] | ||||
Dividend, fix amount (in dollars per share) | $ 0.08 | $ 0.08 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Aug. 23, 2020 | Nov. 24, 2019 | Aug. 25, 2019 |
Equity [Abstract] | |||
Pension and postretirement benefits | $ (257,676) | $ (220,859) | $ (221,278) |
Derivative instruments | (72,420) | (24,958) | (21,705) |
Foreign currency translation losses | (169,024) | (155,841) | (157,980) |
Unrealized gains on marketable securities | 11,197 | 6,288 | 4,291 |
Accumulated other comprehensive loss | (487,923) | (395,370) | (396,672) |
Accumulated other comprehensive income attributable to noncontrolling interest | 0 | 9,616 | 9,778 |
Accumulated other comprehensive loss attributable to Levi Strauss & Co. | $ (487,923) | $ (404,986) | $ (406,450) |
Net Revenues - Disaggregation o
Net Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 1,063,085 | $ 1,447,081 | $ 3,066,753 | $ 4,194,479 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 668,790 | 942,812 | 1,845,840 | 2,623,795 |
Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 394,295 | 504,269 | 1,220,913 | 1,570,684 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 549,798 | 770,817 | 1,578,106 | 2,180,779 |
Americas | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 404,529 | 548,214 | 1,071,835 | 1,519,973 |
Americas | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 145,269 | 222,603 | 506,271 | 660,806 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 390,373 | 463,258 | 1,032,339 | 1,326,303 |
Europe | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 222,777 | 272,484 | 569,918 | 733,397 |
Europe | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 167,596 | 190,774 | 462,421 | 592,906 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 122,914 | 213,006 | 456,308 | 687,397 |
Asia | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 41,484 | 122,114 | 204,087 | 370,425 |
Asia | Direct-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 81,430 | $ 90,892 | $ 252,221 | $ 316,972 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange management gains (losses) | $ (10,712) | $ 1,514 | $ 10,114 | $ (363) |
Foreign currency transaction (losses) gains | (3,052) | (6,671) | (25,138) | (9,634) |
Interest income | 1,547 | 4,986 | 7,685 | 12,644 |
Investment income | 501 | 493 | 1,244 | 1,506 |
Other, net | (558) | (4,691) | (2,174) | (7,002) |
Total other expense, net | $ (12,274) | $ (4,369) | $ (8,269) | $ (2,849) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 47.60% | 18.00% | 24.00% | 16.70% |
Income tax (benefit) expense | $ 24,565 | $ 27,340 | $ (57,932) | $ 60,182 |
Income (loss) before income taxes | 51,614 | $ 151,557 | (241,743) | $ 359,357 |
Discrete tax benefit related to net operating loss carryback under CARES Act | 7,100 | 1,900 | ||
Tax benefit from exercising of employee stock based compensation | 22,000 | |||
Valuation allowance on deferred tax assets | $ 17,700 | $ 17,700 |
Earnings (Loss) Per Share Att_3
Earnings (Loss) 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 | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Numerator: | ||||
Net income (loss) attributable to Levi Strauss & Co. | $ 27,049 | $ 124,509 | $ (183,811) | $ 299,316 |
Denominator: | ||||
Weighted-average common shares outstanding - basic (in shares) | 397,711,322 | 394,169,688 | 397,010,522 | 387,289,913 |
Dilutive effect of stock awards (in shares) | 9,966,063 | 19,470,061 | 0 | 20,554,223 |
Weighted-average common shares outstanding - diluted (in shares) | 407,677,385 | 413,639,749 | 397,010,522 | 407,844,136 |
Earnings (loss) per common share attributable to common stockholders: | ||||
Basic (usd per share) | $ 0.07 | $ 0.32 | $ (0.46) | $ 0.77 |
Diluted (usd per share) | $ 0.07 | $ 0.30 | $ (0.46) | $ 0.73 |
Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders (in shares) | 3,214,295 | 0 | 0 | 0 |
Potentially Dilutive Securities | ||||
Earnings (loss) per common share attributable to common stockholders: | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders (in shares) | 25,800,000 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020 | Aug. 25, 2019 | Aug. 23, 2020 | Aug. 25, 2019 | |
Levi Strauss Foundation | ||||
Related Party Transaction [Line Items] | ||||
Related Party Donations | $ 0.4 | $ 0.4 | $ 9.5 | $ 9.3 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 23, 2020USD ($) | Aug. 25, 2019USD ($) | Aug. 23, 2020USD ($)Regional_Segments | Aug. 25, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | Regional_Segments | 3 | |||
Net revenues | $ 1,063,085 | $ 1,447,081 | $ 3,066,753 | $ 4,194,479 |
Operating income (loss) | 92,325 | 171,218 | (177,137) | 435,028 |
Restructuring charges, net | 1,071 | 0 | 68,442 | 0 |
Interest expense | (28,437) | (15,292) | (56,337) | (47,962) |
Underwriter commission paid on behalf of selling stockholders | 0 | 0 | 0 | 24,860 |
Other expense, net | (12,274) | (4,369) | (8,269) | (2,849) |
Income (loss) before income taxes | 51,614 | 151,557 | (241,743) | 359,357 |
Reduction to inventory valuation | 1,800 | 1,800 | ||
Adverse purchase commitment | 32,500 | 32,500 | ||
Recoveries from receivables previously estimated to be not collectible | 6,600 | |||
Impact on inventory valuation recognized within cost of goods sold | 48,100 | |||
Incremental allowance for doubtful accounts | 8,500 | |||
Impairment of long-lived assets related to certain retail locations | 54,100 | |||
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 549,798 | 770,817 | 1,578,106 | 2,180,779 |
Operating income (loss) | 92,294 | 151,558 | 178,585 | 376,845 |
Impact on inventory valuation recognized within cost of goods sold | 28,800 | |||
Incremental allowance for doubtful accounts | 6,300 | |||
Impairment of long-lived assets related to certain retail locations | 48,600 | |||
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 390,373 | 463,258 | 1,032,339 | 1,326,303 |
Operating income (loss) | 87,611 | 102,911 | 152,290 | 283,244 |
Reduction to inventory valuation | 1,800 | 1,800 | ||
Recoveries from receivables previously estimated to be not collectible | 6,300 | |||
Impact on inventory valuation recognized within cost of goods sold | 11,700 | |||
Incremental allowance for doubtful accounts | 2,200 | |||
Impairment of long-lived assets related to certain retail locations | 3,700 | |||
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 122,914 | 213,006 | 456,308 | 687,397 |
Operating income (loss) | (23,301) | 17,410 | (19,132) | 77,438 |
Adverse purchase commitment | 2,000 | 2,000 | ||
Recoveries from receivables previously estimated to be not collectible | 300 | |||
Impact on inventory valuation recognized within cost of goods sold | 7,600 | |||
Impairment of long-lived assets related to certain retail locations | 1,800 | |||
Regional operating income (loss) | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 156,604 | 271,879 | 311,743 | 737,527 |
Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges, net | 1,071 | 0 | 68,442 | 0 |
Other corporate staff costs and expenses | 63,208 | 100,661 | 420,438 | 302,499 |
Corporate expenses | $ 64,279 | $ 100,661 | $ 488,880 | $ 302,499 |