Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Nov. 25, 2018 | Jan. 30, 2019 | May 27, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LEVI STRAUSS & CO | ||
Entity Central Index Key | 94,845 | ||
Current Fiscal Year End Date | --11-25 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 25, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 37,602,843 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 713,120 | $ 633,622 |
Trade receivables, net of allowance for doubtful accounts of $10,037 and $11,726 | 534,164 | 485,485 |
Inventories: | ||
Raw materials | 3,681 | 3,858 |
Work-in-process | 2,977 | 3,008 |
Finished goods | 877,115 | 752,530 |
Total inventories | 883,773 | 759,396 |
Other current assets | 157,002 | 118,724 |
Total current assets | 2,288,059 | 1,997,227 |
Property, plant and equipment, net of accumulated depreciation of $974,206 and $951,249 | 460,613 | 424,463 |
Goodwill | 236,246 | 237,327 |
Other intangible assets, net | 42,835 | 42,893 |
Deferred tax assets, net | 397,791 | 537,923 |
Other non-current assets | 117,116 | 118,005 |
Total assets | 3,542,660 | 3,357,838 |
Current Liabilities: | ||
Short-term debt | 31,935 | 38,451 |
Accounts payable | 351,329 | 289,505 |
Accrued salaries, wages and employee benefits | 298,990 | 227,251 |
Accrued interest payable | 6,089 | 6,327 |
Accrued income taxes | 15,466 | 16,020 |
Other accrued liabilities | 348,390 | 301,516 |
Total current liabilities | 1,052,199 | 879,070 |
Long-term debt | 1,020,219 | 1,038,860 |
Postretirement medical benefits | 74,181 | 89,248 |
Pension liability | 195,639 | 314,525 |
Long-term employee related benefits | 107,556 | 90,998 |
Long-term income tax liabilities | 9,805 | 20,457 |
Other long-term liabilities | 116,462 | 95,257 |
Total liabilities | 2,576,061 | 2,528,415 |
Commitments and contingencies | ||
Temporary equity | 299,140 | 127,035 |
Levi Strauss & Co. stockholders’ equity | ||
Common stock — $.01 par value; 270,000,000 shares authorized; 37,602,843 shares and 37,521,447 shares issued and outstanding, respectively | 376 | 375 |
Accumulated other comprehensive loss | (424,584) | (404,381) |
Retained earnings | 1,084,321 | 1,100,916 |
Total Levi Strauss & Co. stockholders’ equity | 660,113 | 696,910 |
Noncontrolling interest | 7,346 | 5,478 |
Total stockholders’ equity | 667,459 | 702,388 |
Total liabilities, temporary equity and stockholders’ equity | $ 3,542,660 | $ 3,357,838 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 |
Current Assets: | ||
Allowance for doubtful accounts | $ 10,037 | $ 11,726 |
Accumulated depreciation | $ 974,206 | $ 951,249 |
Levi Strauss & Co. stockholders’ equity | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 270,000,000 | 270,000,000 |
Common stock, shares issued (shares) | 37,602,843 | 37,521,447 |
Common stock, shares outstanding (shares) | 37,602,843 | 37,521,447 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2018 | Aug. 26, 2018 | May 27, 2018 | Feb. 25, 2018 | Nov. 26, 2017 | Aug. 27, 2017 | May 28, 2017 | Feb. 26, 2017 | Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Income Statement [Abstract] | |||||||||||
Net revenues | $ 1,591,860 | $ 1,394,153 | $ 1,245,742 | $ 1,343,685 | $ 1,465,793 | $ 1,268,391 | $ 1,067,855 | $ 1,101,991 | $ 5,575,440 | $ 4,904,030 | $ 4,552,739 |
Cost of goods sold | 744,448 | 652,591 | 574,865 | 605,561 | 682,638 | 611,762 | 509,463 | 537,438 | 2,577,465 | 2,341,301 | 2,223,727 |
Gross profit | 847,412 | 741,562 | 670,877 | 738,124 | 783,155 | 656,629 | 558,392 | 564,553 | 2,997,975 | 2,562,729 | 2,329,012 |
Selling, general and administrative expenses | 719,584 | 582,953 | 594,353 | 564,025 | 633,297 | 510,309 | 495,741 | 456,213 | 2,460,915 | 2,095,560 | 1,866,805 |
Operating income | 127,828 | 158,609 | 76,524 | 174,099 | 149,858 | 146,320 | 62,651 | 108,340 | 537,060 | 467,169 | 462,207 |
Interest expense | (9,637) | (15,697) | (14,465) | (15,497) | (16,298) | (14,476) | (17,895) | (19,934) | (55,296) | (68,603) | (73,170) |
Loss on early extinguishment of debt | 0 | 0 | (22,793) | 0 | 0 | (22,793) | 0 | ||||
Other income (expense), net | 17,214 | (3,032) | 13,653 | (9,577) | 5,421 | (14,734) | (18,087) | 408 | 18,258 | (26,992) | 18,223 |
Income before income taxes | 135,405 | 139,880 | 75,712 | 149,025 | 138,981 | 117,110 | 3,876 | 88,814 | 500,022 | 348,781 | 407,260 |
Income tax expense | 38,145 | 10,299 | (1,320) | 167,654 | 21,748 | 27,631 | (13,847) | 28,693 | 214,778 | 64,225 | 116,051 |
Net income | 97,260 | 129,581 | 77,032 | (18,629) | 117,233 | 89,479 | 17,723 | 60,121 | 285,244 | 284,556 | 291,209 |
Net income attributable to noncontrolling interest | (162) | 543 | (2,100) | (383) | (1,481) | (1,487) | (207) | 22 | (2,102) | (3,153) | (157) |
Net income attributable to Levi Strauss & Co. | $ 97,098 | $ 130,124 | $ 74,932 | $ (19,012) | $ 115,752 | $ 87,992 | $ 17,516 | $ 60,143 | $ 283,142 | $ 281,403 | $ 291,052 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 285,244 | $ 284,556 | $ 291,209 |
Pension and postretirement benefits | 4,336 | 30,125 | (22,925) |
Net investment hedge gains (losses) | 21,280 | (59,945) | (829) |
Foreign currency translation (losses) gains | (43,713) | 40,256 | (30,380) |
Unrealized (losses) gains on marketable securities | (1,488) | 3,379 | 143 |
Total other comprehensive (loss) income, before related income taxes | (19,585) | 13,815 | (53,991) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (852) | 9,223 | 6,211 |
Comprehensive income, net of income taxes | 264,807 | 307,594 | 243,429 |
Comprehensive income attributable to noncontrolling interest | (1,868) | (3,258) | (625) |
Comprehensive income attributable to Levi Strauss & Co. | $ 262,939 | $ 304,336 | $ 242,804 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Beginning balance at Nov. 29, 2015 | $ 331,863 | $ 375 | $ 3,291 | $ 705,668 | $ (379,066) | $ 1,595 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 291,209 | 0 | 0 | 291,052 | 0 | 157 |
Other comprehensive (loss) income, net of tax | (47,780) | 0 | 0 | 0 | (48,248) | 468 |
Stock-based compensation and dividends, net | 9,609 | 0 | 9,649 | (40) | 0 | 0 |
Reclassification to temporary equity | (10,563) | 0 | (10,563) | 0 | 0 | 0 |
Repurchase of common stock | (2,563) | 0 | (932) | (1,631) | 0 | 0 |
Cash dividends paid | (60,000) | 0 | 0 | (60,000) | 0 | 0 |
Ending balance at Nov. 27, 2016 | 511,775 | 375 | 1,445 | 935,049 | (427,314) | 2,220 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 284,556 | 0 | 0 | 281,403 | 0 | 3,153 |
Other comprehensive (loss) income, net of tax | 23,038 | 0 | 0 | 0 | 22,933 | 105 |
Stock-based compensation and dividends, net | 25,810 | 2 | 25,878 | (70) | 0 | 0 |
Reclassification to temporary equity | (47,689) | 0 | (13,575) | (34,114) | 0 | 0 |
Repurchase of common stock | (25,102) | (2) | (13,748) | (11,352) | 0 | 0 |
Cash dividends paid | (70,000) | 0 | 0 | (70,000) | 0 | 0 |
Ending balance at Nov. 26, 2017 | 702,388 | 375 | 0 | 1,100,916 | (404,381) | 5,478 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 285,244 | 0 | 0 | 283,142 | 0 | 2,102 |
Other comprehensive (loss) income, net of tax | (20,437) | 0 | 0 | 0 | (20,203) | (234) |
Stock-based compensation and dividends, net | 18,407 | 3 | 18,471 | (67) | 0 | 0 |
Reclassification to temporary equity | (172,104) | 0 | 11,232 | (183,336) | 0 | 0 |
Repurchase of common stock | (56,039) | (2) | (29,703) | (26,334) | 0 | 0 |
Cash dividends paid | (90,000) | 0 | 0 | (90,000) | 0 | 0 |
Ending balance at Nov. 25, 2018 | $ 667,459 | $ 376 | $ 0 | $ 1,084,321 | $ (424,584) | $ 7,346 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Cash Flows from Operating Activities: | |||
Net income | $ 285,244 | $ 284,556 | $ 291,209 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 120,205 | 117,387 | 103,878 |
Unrealized foreign exchange (gains) losses | (30,804) | 24,731 | (5,853) |
Realized loss (gain) on settlement of forward foreign exchange contracts not designated for hedge accounting | 19,974 | 5,773 | (17,175) |
Employee benefit plans’ amortization from accumulated other comprehensive loss and settlement losses | 4,336 | 30,125 | 14,991 |
Loss on extinguishment of debt, net of write-off of unamortized debt issuance costs | 0 | 22,793 | 0 |
Stock-based compensation | 18,407 | 25,809 | 9,333 |
Deferred income taxes | 134,258 | (486) | 66,078 |
Other, net | 7,395 | 8,005 | 2,813 |
Change in operating assets and liabilities: | |||
Trade receivables | (60,474) | 3,981 | 6,150 |
Inventories | (147,389) | (14,409) | (121,379) |
Other current assets | (30,870) | 1,828 | (22,944) |
Other non-current assets | (3,189) | (6,862) | (9,103) |
Accounts payable and other accrued liabilities | 161,039 | 35,714 | 43,040 |
Restructuring liabilities | (420) | (4,274) | (17,290) |
Income tax liabilities | (8,590) | 2,478 | 7,653 |
Accrued salaries, wages and employee benefits and long-term employee related benefits | (44,887) | (9,408) | (49,880) |
Other long-term liabilities | (3,864) | (1,800) | 5,029 |
Net cash provided by operating activities | 420,371 | 525,941 | 306,550 |
Cash Flows from Investing Activities: | |||
Purchases of property, plant and equipment | (159,413) | (118,618) | (102,950) |
Proceeds from sale of assets | 0 | 0 | 17,427 |
Proceeds (payments) on settlement of forward foreign exchange contracts not designated for hedge accounting | (19,974) | (5,773) | 17,175 |
Net cash used for investing activities | (179,387) | (124,391) | (68,348) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of long-term debt | 0 | 502,835 | 0 |
Repayments of long-term debt and capital leases | 0 | (525,000) | (36,092) |
Proceeds from senior revolving credit facility | 0 | 0 | 180,000 |
Repayments of senior revolving credit facility | 0 | 0 | (279,000) |
Proceeds from short-term credit facilities | 31,929 | 35,333 | 29,154 |
Repayments of short-term credit facilities | (28,230) | (29,764) | (18,219) |
Other short-term borrowings, net | (4,977) | (6,231) | 13,475 |
Payment of debt extinguishment costs | 0 | (21,902) | 0 |
Debt issuance costs | 0 | (10,366) | 0 |
Repurchase of common stock | (56,039) | (25,102) | (2,563) |
Dividend to stockholders | (90,000) | (70,000) | (60,000) |
Other financing, net | (907) | (1,536) | (304) |
Net cash (used for) provided by financing activities | (148,224) | (151,733) | (173,549) |
Effect of exchange rate changes on cash and cash equivalents | (13,262) | 8,242 | (7,661) |
Net increase (decrease) in cash and cash equivalents | 79,498 | 258,059 | 56,992 |
Beginning cash and cash equivalents | 633,622 | 375,563 | 318,571 |
Ending cash and cash equivalents | 713,120 | 633,622 | 375,563 |
Noncash Investing Activity: | |||
Property, plant and equipment acquired and not yet paid at end of period | 23,099 | 22,664 | 19,903 |
Property, plant and equipment additions due to build-to-suit lease transactions | 2,750 | 19,888 | 0 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest during the period | 51,200 | 52,097 | 67,052 |
Income taxes | $ 96,277 | $ 54,602 | $ 57,148 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Nov. 25, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Levi Strauss & Co. (the "Company") is one of the world’s largest brand-name apparel companies. The Company designs, markets and sells – directly or through third parties and licensees – products that include jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear and related accessories, for men, women and children around the world under the Levi’s ® , Dockers ® , Signature by Levi Strauss & Co.™ and Denizen ® brands. The Company operates its business through three geographic regions: Americas, Europe and Asia. Basis of Presentation and Principles of Consolidation The 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"). All significant intercompany balances and transactions have been eliminated. The Company is privately held primarily by descendants of the family of its founder, Levi Strauss, and their relatives. 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. Fiscal years 2018 , 2017 and 2016 were 52 -week years, ending on November 25, 2018 , November 26, 2017 and November 27, 2016 , respectively. Each quarter of fiscal years 2018 , 2017 and 2016 consisted of 13 weeks. All references to years relate to fiscal years rather than calendar years. Subsequent events have been evaluated through the issuance date of these financial statements. Out-of-period Adjustments For the year ended November 26, 2017 , the Company's results include an out-of-period adjustment, which increased selling, general and administrative expenses by $8.3 million and decreased net income by $5.1 million . This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest in awards after retirement. The Company has evaluated the effects of this out-of-period adjustment, both qualitatively and quantitatively, and concluded that the correction of this amount was not material to the current period or the periods in which they originated, including quarterly reporting. Reclassification Certain amounts in Note 20 "Business Segment Information" have been conformed to the November 25, 2018 presentation. Effective as of the beginning of 2017, certain of the Company's global expenses that support all of the Company's regional business segments, including global e-commerce infrastructure and global brand merchandising, marketing and design, previously recorded centrally in Americas segment and Corporate expenses, have now been allocated to the Company's three regional business segments, and reported in their operating results. Business segment information for the prior-year periods has been revised to reflect this change in presentation. Certain amounts in Note 5 "Derivatives" and Note 20 "Business Segment Information" have been conformed to the November 25, 2018 presentation. Effective as of the beginning of 2018, the Company recorded and presented the fair value of its derivative assets and liabilities on a gross basis in the consolidated balance sheets based on contractual maturity dates, including those subject to master netting arrangements. Derivative and business segment information for the prior-year periods has been revised to reflect this change in presentation. Certain insignificant amounts on the consolidated balance sheets and consolidated statements of cash flows have been conformed to the November 25, 2018 presentation. 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. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at fair value. Accounts Receivable, Net The Company extends credit to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. The Company estimates the allowance for doubtful accounts based upon an analysis of the aging of accounts receivable at the date of the consolidated financial statements, assessments of collectability based on historic trends, customer-specific circumstances, and an evaluation of economic conditions. Actual write-off of receivables may differ from estimates due to changes in customer and economic circumstances. Inventory Valuation The Company values inventories at the lower of cost or net realizable value. Inventory cost is determined using the first-in first-out method. The Company includes product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating its remaining manufacturing facilities, including the related depreciation expense, in the cost of inventories. The Company estimates quantities of slow-moving and obsolete inventory, by reviewing on-hand quantities, outstanding purchase obligations and forecasted sales. The Company determines inventory net realizable value by estimating expected selling prices based on the Company's historical recovery rates for slow-moving and obsolete inventory and other factors, such as market conditions, expected channel of distribution and current consumer preferences. Income Tax Significant judgment is required in determining the Company's worldwide income tax provision. In the ordinary course of a global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise from examinations in various jurisdictions and assumptions and estimates used in evaluating the need for valuation allowances. The Tax Cuts and Jobs Act (the "Tax Act") was enacted in the United States on December 22, 2017 and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% and a deemed repatriation of foreign earnings. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring the Company's U.S. deferred tax assets and liabilities and reassessing the net realizability of the Company's deferred tax assets and liabilities. The Company has completed its analysis and accounting with respect to these items. However, changes in law, interpretations, and facts may result in adjustments to these amounts. The Company is subject to income taxes in both the United States and numerous foreign jurisdictions. The Company computes its provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carryforwards. All deferred income taxes are classified as non-current on the Company's consolidated balance sheets. Deferred tax assets and liabilities are measured using the currently enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. Significant judgments are required in order to determine the realizability of these deferred tax assets. In assessing the need for a valuation allowance, the Company's management evaluates all significant available positive and negative evidence, including historical operating results, estimates of future taxable income and the existence of prudent and feasible tax planning strategies. The Company continuously reviews issues raised in connection with all ongoing examinations and open tax years to evaluate the adequacy of its tax liabilities. The Company evaluates uncertain tax positions under a two-step approach. The first step is to evaluate the uncertain tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination based on its technical merits. The second step, for those positions that meet the recognition criteria, is to measure the tax benefit as the largest amount that is more than fifty percent likely to be realized. The Company believes that its recorded tax liabilities are adequate to cover all open tax years based on its assessment. This assessment relies on estimates and assumptions and involves significant judgments about future events. To the extent that the Company's view as to the outcome of these matters change, the Company will adjust income tax expense in the period in which such determination is made. The Company classifies interest and penalties related to income taxes as income tax expense. Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation. The cost is depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs relating to internal-use software development are capitalized when incurred during the application development phase. Buildings are depreciated over 20 to 40 years, and leasehold improvements are depreciated over the lesser of the life of the improvement or the initial lease term. Buildings and leasehold improvements includes build-to-suit assets related to the construction of a building or leasehold improvement (generally on property owned by the landlord) when the Company concludes it has substantially all of the risks of ownership during construction of a leased property and therefore is deemed the owner of the project. Accordingly, the Company recorded an asset representing the total costs of the buildings and improvements, including the costs paid by the lessor (the legal owner of the buildings), with corresponding liabilities. Upon completion of construction of each building, the Company did not meet the sale-leaseback criteria for de-recognition of the building assets and liabilities. Therefore the leases are accounted for as lease financing obligations. See Note 13 "Commitments and Contingencies". The related financing obligation is recorded in "other long-term liabilities". Machinery and equipment includes furniture and fixtures, automobiles and trucks, and networking communication equipment, and is depreciated over a range from three to 20 years. Capitalized internal-use software is depreciated over periods ranging from three to seven years. Goodwill and Other Intangible Assets Goodwill resulted primarily from a 1985 acquisition of the Company by Levi Strauss Associates Inc., a former parent company that was subsequently merged into the Company in 1996, and the Company's 2009 acquisitions. Goodwill is not amortized. Intangible assets are comprised of owned trademarks with indefinite useful lives which are not being amortized and acquired contractual rights. Impairment The Company reviews its goodwill and other non-amortized intangible assets for impairment annually in the fourth quarter of its fiscal year, or more frequently as warranted by events or changes in circumstances which indicate that the carrying amount may not be recoverable. The Company qualitatively assesses goodwill and non-amortized intangible assets to determine whether it is more likely than not that the fair value of a reporting unit or other non-amortized intangible asset is less than its carrying amount. During fiscal year 2018 , the Company performed this analysis by examining key events and circumstances affecting fair value and determined it is more likely than not that the reporting unit's fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s goodwill or other non-amortized intangible asset for impairment. If goodwill is not qualitatively assessed or if goodwill is qualitatively assessed and it is determined it is not more likely than not that the reporting unit's fair value is greater than its carrying amount, a two-step quantitative approach is utilized. In the first step, the Company compares the carrying value of the reporting unit or applicable asset to its fair value, which the Company estimates using a discounted cash flow analysis or by comparison with the market values of similar assets. If the carrying amount of the reporting unit or asset exceeds its estimated fair value, the Company performs the second step, and determines the impairment loss, if any, as the excess of the carrying value of the goodwill or intangible asset over its fair value. The Company reviews its other long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the expected future undiscounted cash flows, the Company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. To determine the fair value of impaired assets, the Company utilizes the valuation technique or techniques deemed most appropriate based on the nature of the impaired asset and the data available, which may include the use of quoted market prices, prices for similar assets or other valuation techniques such as discounted future cash flows or earnings. Debt Issuance Costs The Company capitalizes debt issuance costs on its senior revolving credit facility, which are included in "Other non-current assets" on the Company's consolidated balance sheets. Capitalized debt issuance costs on the Company's unsecured long-term debt are presented as a reduction to the debt outstanding on the Company's consolidated balance sheets. The unsecured long-term debt issuance costs are generally amortized utilizing the effective interest method whereas the senior revolving credit facility issuance costs are amortized utilizing the straight-line method. Amortization of debt issuance costs is included in "Interest expense" in the consolidated statements of income. Deferred Rent The Company is obligated under operating leases of property for manufacturing, finishing and distribution facilities, office space, retail stores and equipment. Rental expense relating to operating leases are recognized on a straight-line basis over the lease term after consideration of lease incentives and scheduled rent escalations beginning as of the date the Company takes physical possession or control of the property. Differences between rental expense and actual rental payments are recorded as deferred rent liabilities included in "Other accrued liabilities" and "Other long-term liabilities" on the consolidated balance sheets. Fair Value of Financial Instruments The fair values of the Company's financial instruments reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value estimates presented in these financial statements are based on information available to the Company as of November 25, 2018 and November 26, 2017 . The carrying values of cash and cash equivalents, trade receivables and short-term borrowings approximate fair value since they are short term in nature. The Company has estimated the fair value of its other financial instruments using the market and income approaches. Rabbi trust assets and forward foreign exchange contracts are carried at their fair values. The Company's debt instruments are carried at historical cost and adjusted for amortization of premiums, discounts, or deferred financing costs, foreign currency fluctuations and principal payments. Pension and Postretirement Benefits The Company has several non-contributory defined benefit retirement plans covering eligible employees. The Company also provides certain health care benefits for U.S. employees who meet age, participation and length of service requirements at retirement. In addition, the Company sponsors other retirement or post-employment plans for its foreign employees in accordance with local government programs and requirements. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations. The Company recognizes either an asset or a liability for any plan's funded status in its consolidated balance sheets. The Company measures changes in funded status using actuarial models which utilize an attribution approach that generally spreads individual events over the estimated service lives of the remaining employees in the plan. For plans where participants will not earn additional benefits by rendering future service, which includes the Company's U.S. plans, individual events are spread over the plan participants' estimated remaining lives. The Company's policy is to fund its retirement plans based upon actuarial recommendations and in accordance with applicable laws, income tax regulations and credit agreements. Net pension and postretirement benefit income or expense is generally determined using assumptions which include expected long-term rates of return on plan assets, discount rates, compensation rate increases and medical and mortality trend rates. The Company considers several factors including historical rates, expected rates and external data to determine the assumptions used in the actuarial models. Employee Incentive Compensation The Company maintains short-term and long-term employee incentive compensation plans. Provisions for employee incentive compensation are recorded in "Accrued salaries, wages and employee benefits" and "Long-term employee related benefits" on the Company's consolidated balance sheets. The Company accrues the related compensation expense over the period of the plan and changes in the liabilities for these incentive plans generally correlate with the Company's financial results and projected future financial performance. Stock-Based Compensation The Company has stock-based incentive plans which allow for the issuance of cash or equity-settled awards to certain employees and non-employee directors. The Company recognizes stock-based compensation expense for share-based awards that are classified as equity based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. The cash-settled awards are classified as liabilities and stock-based compensation expense is measured using fair value at the end of each reporting period until settlement. The Company's common stock is not listed on any established stock exchange. Accordingly, the stock's fair value on the grant date is established by the Company's board of directors (the "Board") based on factors including the most recent valuation conducted by a third-party valuation firm. For each reporting period, the common stock's fair value is estimated based upon an internally derived valuation consistent with the valuation methodology employed on the grant date. Determining the fair value of the Company's stock requires complex judgments. The valuation process includes comparison of the Company's historical and estimated future financial results with selected publicly-traded companies and application of a discount for the illiquidity of the stock to derive the fair value of the stock. The Company uses this valuation for, among other things, making determinations under its stock-based compensation plans, such as the grant date fair value, redemption and intrinsic value of the awards. For stock appreciation rights that are classified as equity, the Company uses the Black-Scholes valuation model to estimate the grant date fair value, unless the awards are subject to a market condition, in which case the Company uses a Monte Carlo simulation valuation model. The grant date fair value of equity-classified restricted stock units that are not subject to a market condition, is based on the fair value of the Company's common stock on the date of grant, adjusted to reflect the absence of dividends for those awards that are not entitled to dividend equivalents. For restricted stock units that include a market condition, the Company uses a Monte Carlo simulation valuation model to estimate the grant date fair value. For share-based awards that are classified as liabilities, the fair value of the awards is estimated using the intrinsic value method, which is based on the Company's common stock fair value on each measurement date. The Black-Scholes option pricing model and the Monte Carlo simulation model require the input of highly subjective assumptions including volatility. Due to the fact that the Company's common stock is not publicly traded, the computation of expected volatility is based on the average of the historical and implied volatilities over the expected life of the awards, of a representative peer group of publicly-traded entities. Other assumptions include expected life, risk-free rate of interest and dividend yield. For equity awards with a service condition, the expected life is derived based on historical experience and expected future post-vesting termination and exercise patterns. For equity awards with a performance condition, the expected life is computed using the simplified method until historical experience is available. The risk-free interest rate is based on zero coupon U.S. Treasury bond rates corresponding to the expected life of the awards. Dividend assumptions are based on historical experience. Due to the job function of the award recipients, the Company has included stock-based compensation cost in "Selling, general and administrative expenses" in the consolidated statements of income. Self-Insurance Up to certain limits, the Company self-insures various loss exposures primarily relating to workers' compensation risk and employee and eligible retiree medical health benefits. The Company carries insurance policies covering claim exposures which exceed predefined amounts, per occurrence and/or in the aggregate. Accruals for losses are made based on the Company's claims experience and actuarial assumptions followed in the insurance industry, including provisions for incurred but not reported losses. Derivative Financial Instruments and Hedging Activities The Company recognizes all derivatives as assets and liabilities at their fair values, which are included in "Other current assets", "Other non-current assets", "Other accrued liabilities" or "Other long-term liabilities" on the Company's consolidated balance sheets. The Company uses derivatives to manage exposures that are sensitive to changes in market conditions, such as foreign currency risk. Additionally, some of the Company's contracts contain provisions that are accounted for as embedded derivative instruments. The Company does not designate its derivative instruments for hedge accounting; changes in the fair values of these instruments are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The non-derivative instruments the Company designates and that qualify for hedge accounting treatment hedge the Company's net investment position in certain of its foreign subsidiaries. For these instruments, the Company documents the hedge designation by identifying the hedging instrument, the nature of the risk being hedged and the approach for measuring hedge effectiveness. The ineffective portions of these hedges are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The effective portions of these hedges are recorded in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets and are not reclassified to earnings until the related net investment position has been liquidated. Foreign Currency The functional currency for most of the Company's foreign operations is the applicable local currency. For those operations, assets and liabilities are translated into U.S. Dollars using period-end exchange rates; income and expenses are translated at average monthly exchange rates; and equity accounts are translated at historical rates. Net changes resulting from such translations are recorded as a component of translation adjustments in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets. Foreign currency transactions are transactions denominated in a currency other than the entity's functional currency. At each balance sheet date, each entity remeasures the recorded balances related to foreign-currency transactions using the period-end exchange rate. Unrealized gains or losses arising from the remeasurement of these balances are recorded in "Other income (expense), net" in the Company's consolidated statements of income. In addition, at the settlement date of foreign currency transactions, the realized foreign currency gains or losses are recorded in "Other income (expense), net" in the Company's consolidated statements of income to reflect the difference between the rate effective at the settlement date and the historical rate at which the transaction was originally recorded. Noncontrolling Interest Noncontrolling interest includes a 16.4% minority interest of third parties in Levi Strauss Japan K.K., the Company's Japanese subsidiary. Revenue Recognition Net sales is primarily comprised of sales of products to wholesale customers, including franchised stores, and direct sales to consumers at the Company's company-operated and e-commerce stores and at the Company's company-operated shop-in-shops located within department stores. The Company recognizes revenue on sales of products when the goods are shipped or delivered and title to the goods passes to the customer provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectibility is reasonably assured. The revenue is recorded net of an allowance for estimated returns, discounts and retailer promotions and other similar incentives. Licensing revenues from the use of the Company's trademarks in connection with the manufacturing, advertising, and distribution of trademarked products by third-party licensees are earned and recognized as products are sold by licensees based on royalty rates set forth in the licensing agreements. The Company recognizes allowances for estimated returns in the period in which the related sale is recorded. The Company recognizes allowances for estimated discounts, retailer promotions and other similar incentives at the later of the period in which the related sale is recorded or the period in which the sales incentive is offered to the customer. The Company estimates non-volume based allowances based on historical rates as well as customer and product-specific circumstances. Sales and value-added taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Company's consolidated statements of income. Net sales to the Company's ten largest customers totaled 27% , 28% and 30% of net revenues for 2018 , 2017 and 2016 , respectively. No customer represented 10% or more of net revenues in any of these years. Cost of Goods Sold Cost of goods sold includes the expenses incurred to acquire and produce inventory for sale, including product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating the Company's remaining manufacturing facilities, including the related depreciation expense. Selling, General and Administrative Expenses Selling, general and administrative expenses ("SG&A") are primarily comprised of costs relating to advertising, marketing, selling, distribution, information technology and other corporate functions. Selling costs include, among other things, all occupancy costs associated with company-operated stores and with the Company's company-operated shop-in-shops located within department stores. The Company expenses advertising costs as incurred. For 2018 , 2017 and 2016 , total advertising expense was $400.3 million , $323.3 million and $284.0 million , respectively. Distribution costs include costs related to receiving and inspection at distribution centers, warehousing, shipping to the Company's customers, handling and certain other activities associated with the Company's distribution network. These expenses totaled $208.8 million , $173.4 million , and $168.3 million for 2018 , 2017 and 2016 , respectively. Recently Issued Accounting Standards The following recently issued accounting standards, all of which are FASB Accounting Standards Updates ("ASU"), have been grouped by their required effective dates for the Company: First Quarter of 2019 • In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of net periodic benefit costs requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, expected return on plan assets, amortization of prior service costs or credits, curtailments and settlements, actuarial gains and losses, etc.). Accordingly, the Company determined this will impact the Company's Consolidated Statements of Income, as the service cost components of net periodic benefit costs will be reported within operating income and the other components of net periodic benefit costs will be reported in the Other Income (Expense), Net line item. The presentation change in the Consolidated Statements of Income requires application on a retrospective basis. A practical expedient is permitted under the guidance which allows the Company to use information previously disclosed in the pension and other postretirement benefit plans footnote as the basis to apply the retrospective presentation requirements. • In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting . ASU 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The Company determined the adoption of this standard does not have a material impact on its consolidated financial statements. • In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Under the new standard and its related amendments (collectively known as Accounting Standards Codification 606 ("ASC 606")), an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Enhanced disclosures will be required regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has established an implementation team to assist with its assessment of the impact that the new standard will have on its processes and controls, consolidated financial statements and related disclosures. This includes a review of current accounting policies and practices to identify potential differences that would result from applying ASC 606. The Company has identified its major revenue streams as sales of products to wholesale customers, including franchised stores, direct sales to consumers at company-operated stores, including e |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Nov. 25, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The components of property, plant and equipment ("PP&E") were as follows: November 25, 2018 November 26, 2017 (Dollars in thousands) Land $ 8,197 $ 8,239 Buildings and leasehold improvements 466,256 422,168 Machinery and equipment 471,015 452,950 Capitalized internal-use software 453,943 450,558 Construction in progress 35,408 41,797 Subtotal 1,434,819 1,375,712 Accumulated depreciation (974,206 ) (951,249 ) PP&E, net $ 460,613 $ 424,463 Depreciation expense for the years ended November 25, 2018 , November 26, 2017 , and November 27, 2016 , was $120.2 million , $117.4 million and $103.7 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Nov. 25, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by business segment for the years ended November 25, 2018 and November 26, 2017 , were as follows: Americas Europe Asia Total (Dollars in thousands) Balance, November 27, 2016 $ 207,723 $ 25,341 $ 1,216 $ 234,280 Foreign currency fluctuation 42 2,983 22 3,047 Balance, November 26, 2017 207,765 28,324 1,238 237,327 Foreign currency fluctuation (34 ) (1,060 ) 13 (1,081 ) Balance, November 25, 2018 $ 207,731 $ 27,264 $ 1,251 $ 236,246 Other intangible assets, net, were as follows: November 25, 2018 November 26, 2017 Gross Carrying Value Accumulated Amortization Total Gross Carrying Value Accumulated Amortization Total (Dollars in thousands) Non-amortized intangible assets: Trademarks $ 42,743 $ — $ 42,743 $ 42,743 $ — $ 42,743 Amortized intangible assets: Acquired contractual rights 462 (370 ) 92 480 (330 ) 150 Total $ 43,205 $ (370 ) $ 42,835 $ 43,223 $ (330 ) $ 42,893 For the year ended November 27, 2016 , amortization of these intangible assets was $0.2 million . The amortization of these intangible assets in the years ended November 25, 2018 and November 26, 2017 is immaterial. As of November 25, 2018 , there was no impairment to the carrying value of the Company's goodwill or non-amortized intangible assets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Nov. 25, 2018 | |
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: November 25, 2018 November 26, 2017 Fair Value Estimated Using Fair Value Estimated Using Fair Value Level 1 Inputs (1) Level 2 Inputs (2) Fair Value Level 1 Inputs (1) Level 2 Inputs (2) (Dollars in thousands) Financial assets carried at fair value Rabbi trust assets $ 34,385 $ 34,385 $ — $ 31,139 $ 31,139 $ — Forward foreign exchange contracts (3) 18,372 — 18,372 6,296 — 6,296 Total $ 52,757 $ 34,385 $ 18,372 $ 37,435 $ 31,139 $ 6,296 Financial liabilities carried at fair value Forward foreign exchange contracts (3) $ 4,447 $ — $ 4,447 $ 23,799 $ — $ 23,799 _____________ (1) Fair values estimated using Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities. See Note 12 for more information on rabbi trust assets. (2) Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3) The Company’s over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Effective as of the first quarter of 2018, the Company recorded and presented the fair values of derivative over-the-counter forward foreign exchange contracts on a gross basis in its consolidated balance sheets, including those subject to master netting arrangements. The comparative period was revised to reflect the change from a net basis to a gross basis. The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost: November 25, 2018 November 26, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1) $ 487,272 $ 478,774 $ 485,419 $ 507,185 3.375% senior notes due 2027 (1)(2) 538,219 546,238 559,037 590,266 Short-term borrowings 32,470 32,470 38,727 38,727 Total $ 1,057,961 $ 1,057,482 $ 1,083,183 $ 1,136,178 _____________ (1) Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. (2) On February 28, 2017, the Company issued €475 million in aggregate principal amount of 3.375% senior notes due 2027. On March 3, 2017, the Company completed a cash tender offer for $370.3 million of the 6.875% senior notes due 2022 and the remaining $154.7 million was called on March 31, 2017 for redemption on May 1, 2017. See Note 6 for additional information. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Nov. 25, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company's foreign currency management objective is to minimize the effect of fluctuations in foreign exchange rates on nonfunctional currency cash flows and selected assets or liabilities without exposing the Company to additional risk associated with transactions that could be regarded as speculative. Forward exchange contracts on various currencies are entered into to manage foreign currency exposures associated with certain product sourcing activities, some intercompany sales, foreign subsidiaries' royalty payments, interest payments, earnings repatriations, net investment in foreign operations and funding activities. The Company manages certain forecasted foreign currency exposures and uses a centralized currency management operation to take advantage of potential opportunities to naturally offset foreign currency exposures against each other. The Company had designated a portion of its outstanding Euro-denominated senior notes as a net investment hedge to manage foreign currency exposures in its foreign operations. The Company does not apply hedge accounting to its derivative transactions. As of November 25, 2018 , the Company had forward foreign exchange contracts to buy $981.8 million and to sell $193.5 million against various foreign currencies. These contracts are at various exchange rates and expire at various dates through February 2020 . Effective as of the first quarter of 2018, the Company recorded and presented the fair value of its derivative assets and liabilities on a gross basis in the consolidated balance sheets based on contractual maturity dates, including those subject to master netting arrangements. The comparative period was revised to reflect the change from a net basis to a gross basis. The table below provides data about the carrying values of derivative instruments and non-derivative instruments: November 25, 2018 November 26, 2017 Assets (Liabilities) Derivative Net Carrying Value Assets (Liabilities) Derivative Net Carrying Value Carrying Value Carrying Value Carrying Value Carrying Value (Dollars in thousands) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 18,372 $ — $ 18,372 $ 6,296 $ — $ 6,296 Forward foreign exchange contracts (2) — (4,447 ) (4,447 ) — (23,799 ) (23,799 ) Total $ 18,372 $ (4,447 ) $ 6,296 $ (23,799 ) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (541,500 ) $ — $ (562,780 ) _____________ (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: November 25, 2018 November 26, 2017 Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amount of Assets / (Liabilities) Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amount of Assets / (Liabilities) (Dollars in thousands) Over-the-counter forward foreign exchange contracts Financial assets $ 16,417 $ (1,756 ) $ 14,661 $ 3,218 $ (3,146 ) $ 72 Financial liabilities (2,181 ) 1,756 (425 ) (20,876 ) 3,146 (17,730 ) Total $ 14,236 $ (17,658 ) Embedded derivative contracts Financial assets $ 1,955 $ — $ 1,955 $ 3,078 $ — $ 3,078 Financial liabilities (2,266 ) — (2,266 ) (2,923 ) — (2,923 ) Total $ (311 ) $ 155 The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets, and in "Other income (expense), net" in the Company’s consolidated statements of income: Gain or (Loss) Recognized in AOCI (Effective Portion) Gain or (Loss) Recognized in Other Income (Expense), Net (Ineffective Portion and Amount Excluded from Effectiveness Testing) As of As of Year Ended November 25, November 26, November 25, November 26, November 27, (Dollars in thousands) Forward foreign exchange contracts $ 4,637 $ 4,637 Yen-denominated Eurobonds (19,811 ) (19,811 ) $ — $ — $ 2,627 Euro-denominated senior notes (54,416 ) (75,697 ) — — — Cumulative income taxes 29,703 35,253 Total $ (39,887 ) $ (55,618 ) The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in "Other income (expense), net" in the Company’s consolidated statements of income: Year Ended November 25, November 26, November 27, (Dollars in thousands) Forward foreign exchange contracts: Realized (loss) gain $ (19,974 ) $ (5,773 ) $ 17,175 Unrealized gain (loss) (1) 31,141 (35,394 ) (1,315 ) Total $ 11,167 $ (41,167 ) $ 15,860 _____________ (1) The unrealized gain in 2018 is primarily driven by gains on contracts to sell the Euro, the Mexican Peso and the British Pound, as a result of the U.S. Dollar strengthening at year end. The unrealized loss in 2017 is primarily driven by losses on contracts to sell the Mexican Peso, the Euro and the British Pound, as a result of the U.S. Dollar weakening at year end. |
Debt
Debt | 12 Months Ended |
Nov. 25, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table presents the Company's debt: November 25, November 26, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 $ 485,605 $ 483,683 3.375% senior notes due 2027 534,614 555,177 Total long-term debt $ 1,020,219 $ 1,038,860 Short-term debt Short-term borrowings 31,935 38,451 Total debt $ 1,052,154 $ 1,077,311 Senior Revolving Credit Facility The Company is a party to a Second Amended and Restated Credit Agreement that provides for a senior secured revolving credit facility. The credit facility is an asset-based facility, in which the borrowing availability is primarily based on the value of the U.S. Levi's ® trademarks and the levels of certain eligible cash, accounts receivable and inventory in the United States and Canada. Availability, interest and maturity. The maximum availability under the credit facility is $850.0 million , of which $800.0 million is available to the Company for revolving loans in U.S. Dollars and $50.0 million is available to the Company for revolving loans in either U.S. or Canadian Dollars. Subject to the availability under the borrowing base, the Company may make and repay borrowings from time to time until the maturity of the credit facility. The Company may make voluntary prepayments of borrowings at any time and must make mandatory prepayments if certain events occur. Of the maximum availability of $850.0 million , the U.S. Levi’s ® trademarks are deemed to add the lesser of (i) $350.0 million and (ii) 65% of the net orderly liquidation value of such trademarks to the borrowing base. Upon the maturity date of May 23, 2022, all of the obligations outstanding under the credit facility become due. The interest rate for borrowings under the credit facility is LIBOR plus 125-175 basis points, depending on borrowing base availability, and the rate for undrawn availability is 20 basis points. The Company’s unused availability under its amended and restated senior secured revolving credit facility was $805.2 million at November 25, 2018 , as the Company’s total availability of $850.0 million , based on the collateral levels discussed above, was reduced by $42.3 million of stand-by letters of credit and by $2.5 million of other credit-related instruments. The Company has stand-by letters of credit with various international banks under the Company's credit facility serving as guarantees to cover U.S. workers' compensation claims and working capital requirements for certain subsidiaries, primarily in India. The Second Amended and Restated Credit Agreement also provides that the Company may increase the availability under the Company's credit facility up to the greater of (i) $1.6 billion in the aggregate and (ii) an amount that would not cause the Company's secured leverage ratio (as defined in the Second Amended and Restated Credit Agreement) to exceed 3.25 to 1.00, in each case if certain conditions are met. Guarantees and security. The Company's obligations under the Second Amended and Restated Credit Agreement are guaranteed by its domestic subsidiaries. The obligations under the Second Amended and Restated Credit Agreement are secured by specified domestic assets, including certain U.S. trademarks associated with the Levi's ® brand and accounts receivable, goods and inventory in the United States. Additionally, the obligations of Levi Strauss & Co. (Canada) Inc. under the credit agreement are secured by Canadian accounts receivable, goods, inventory and other Canadian assets. The lien on the U.S. Levi's ® trademarks and related intellectual property may be released at the Company's discretion subject to certain conditions, and such release would reduce the borrowing base. Covenants. The Second Amended and Restated Credit Agreement contains customary covenants restricting the Company's activities, as well as those of the Company's subsidiaries, including limitations on the ability to sell assets, engage in mergers, or other fundamental changes, enter into capital leases or certain leases not in the ordinary course of business, enter into transactions involving related parties or derivatives, incur or prepay indebtedness, grant liens or negative pledges on the Company's assets, make loans or other investments, pay dividends or repurchase stock or other securities, guarantee third-party obligations, engage in sale leasebacks and make changes in the Company's corporate structure. There are exceptions to these covenants, and some are only applicable when unused availability falls below specified thresholds. In addition, the Second Amended and Restated Credit Agreement includes, as a financial covenant, a springing fixed charge coverage ratio of 1.0 to 1.0, which arises when availability falls below a specified threshold. Events of default. The Second Amended and Restated Credit Agreement contains customary events of default, including payment failures, breaches of representations and warranties, failure to comply with covenants, failure to satisfy other obligations under the credit agreements or related documents, defaults in respect of other indebtedness, bankruptcy, insolvency and inability to pay debts when due, material judgments, pension plan terminations or specified underfunding, substantial stock ownership changes, failure of certain provisions of any guarantee or security document supporting the Company's credit facility to be in full force and effect, change of control and specified changes in the composition of the Board. The cross-default provisions in the Second Amended and Restated Credit Agreement apply if a default occurs on other indebtedness of the Company or the guarantors in excess of $50.0 million and the applicable grace period in respect of the indebtedness has expired, such that the lenders of or trustee for the defaulted indebtedness have the right to accelerate. If an event of default occurs under the Second Amended and Restated Credit Agreement, subject to any applicable grace period, the lenders may terminate their commitments, declare immediately payable all borrowings under the credit facility and foreclose on the collateral. Senior Notes due 2025 Principal, interest, and maturity. On April 27, 2015, the Company issued $500.0 million in aggregate principal amount of 5.00% senior notes due 2025 (the "Senior Notes due 2025") to qualified institutional buyers and to purchasers outside the United States, which were later exchanged for new notes in the same principal amount with substantially identical terms, except that the new notes were registered under the Securities Act of 1933, as amended (the "Securities Act"). The Senior Notes due 2025 will mature on May 1, 2025. Interest on the Senior Notes due 2025 is payable semi-annually in arrears on May 1 and November 1. Ranking. The Senior Notes due 2025 are not guaranteed by any of the Company's subsidiaries and are unsecured obligations. Accordingly, they: • rank equal in right of payment with all of the Company's other existing and future unsecured and unsubordinated debt; • rank senior in right of payment to the Company's future debt and other obligations that are, by their terms, expressly subordinated in right of payment to the Senior Notes due 2025; • are effectively subordinated in right of payment to all of the Company's existing and future senior secured debt and other obligations (including the credit facility) to the extent of the value of the collateral securing such debt; and • are structurally subordinated to all obligations of each of the Company's subsidiaries. Optional redemption. At any time prior to May 1, 2020, the Company may redeem some or all of the Senior Notes due 2025 at a price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption, and a "make-whole" premium. On or after May 1, 2020, the Company may redeem some or all of the Senior Notes due 2025, at once or over time, at redemption prices specified in the indenture governing the Senior Notes due 2025, plus accrued and unpaid interest, if any, to the date of redemption. In addition, at any time prior to May 1, 2018, the Company may redeem up to a maximum of 40% of the original aggregate principal amount of the Senior Notes due 2025 with the proceeds of certain equity offerings at a redemption price of 105% of the principal amount of the Senior Notes due 2025, plus accrued and unpaid interest, if any, to the date of redemption. The Company recorded a discount of $13.9 million in conjunction with the issuance of the Senior Notes due 2025, related to tender and redemption premiums paid to certain holders of the Senior Notes due 2020 who participated in the issuance of the Senior Notes due 2025, which will be amortized to interest expense over the term of the notes. Mandatory redemption, Offer to Purchase and Open Market Purchases. The Company is not required to make any sinking fund payments with respect to the Senior Notes due 2025. However, under certain circumstances in the event of an asset sale or as described under "Change of Control" below, the Company may be required to offer to purchase the Senior Notes due 2025. The Company may from time to time purchase the Senior Notes due 2025 in the open market or otherwise. Covenants. The 2025 indenture contains covenants that limit, among other things, the Company’s and certain of the Company’s subsidiaries’ ability to incur additional debt, make certain restricted payments, consummate specified asset sales, enter into transactions with affiliates, and incur liens, and that, impose restrictions on the ability of its subsidiaries to pay dividends or make payments to the Company and its restricted subsidiaries, merge or consolidate with another person, and dispose of all or substantially all of the Company’s assets or its restricted subsidiaries' assets. The 2025 indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment of principal, premium or interest, breach of covenants in the 2025 indenture, payment defaults or acceleration of certain other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the trustee under the 2025 indenture or the holders of at least 25% in principal amount of the then outstanding Senior Notes due 2025 may declare all the Senior Notes due 2025 to be due and payable immediately. Change of control. Upon the occurrence of a change in control (as defined in the 2025 indenture), each holder of the Senior Notes due 2025 may require us to repurchase all or a portion of the Senior Notes due 2025 in cash at a price equal to 101% of the principal amount of the Senior Notes due 2025 to be repurchased, plus accrued and unpaid interest, if any, to the date of purchase. Senior Notes due 2027 Principal, interest and maturity. On February 28, 2017, the Company issued €475.0 million in aggregate principal amount of 3.375% senior notes due 2027 (the "Senior Notes due 2027") to qualified institutional buyers and to purchasers outside the United States, which were later exchanged for new notes in the same principal amount with substantially identical terms, except that the new notes were registered under the Securities Act. The Senior Notes due 2027 will mature on March 15, 2027. Interest on the Senior Notes due 2027 is payable semi-annually in arrears on March 15 and September 15. Ranking. The Senior Notes due 2027 are not guaranteed by any of the Company's subsidiaries and are unsecured obligations. Accordingly, they: • rank equal in right of payment with all of the Company's other existing and future unsecured and unsubordinated debt; • rank senior in right of payment to the Company's future debt and other obligations that are, by their terms, expressly subordinated in right of payment to the Senior Notes due 2027; • are effectively subordinated in right of payment to all of the Company's existing and future senior secured debt and other obligations (including the credit facility) to the extent of the value of the collateral securing such debt; and • are structurally subordinated to all obligations of each of the Company's subsidiaries. Optional redemption. At any time prior to March 15, 2020, the Company may redeem up to a maximum of 40% of the aggregate principal amount of the Senior Notes due 2027 with the proceeds of certain equity offerings at a redemption price of 103.375% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption. In addition, the Company may redeem some or all of the Senior Notes due 2027 prior to March 15, 2022, at a price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption, and a "make-whole" premium. On or after March 15, 2022, the Company may redeem some or all of the Senior Notes due 2027, at once or over time, at redemption prices specified in the indenture governing the Senior Notes due 2027, or the 2027 indenture, and together with the 2025 indenture, the indentures, plus accrued and unpaid interest, if any, to the date of redemption. Mandatory redemption, offer to purchase and open market purchases. The Company is not required to make any sinking fund payments with respect to the Senior Notes due 2027. However, under certain circumstances in the event of an asset sale or as described under "Change of Control" below, the Company may be required to offer to purchase the Senior Notes due 2027. The Company may from time to time purchase the Senior Notes due 2027 in the open market or otherwise. Covenants. The 2027 indenture contains covenants that limit, among other things, the Company’s and certain of the Company’s subsidiaries’ ability to incur additional debt, pay dividends or make other restricted payments, consummate specified asset sales, enter into transactions with affiliates and incur liens, and that impose restrictions on the ability of its subsidiaries to pay dividends or make payments to the Company and its restricted subsidiaries, merge or consolidate with another person, and sell, assign, transfer, lease convey or otherwise dispose of all or substantially all of the Company’s assets or the assets of its restricted subsidiaries. The 2027 indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment of principal, premium or interest, breach of covenants, in the 2027 indenture, payment defaults or acceleration of certain other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the trustee under the 2027 indenture or the holders of at least 25% in principal amount of the then outstanding Senior Notes due 2027 may declare all the Senior Notes due 2027 to be due and payable immediately. Change of control. Upon the occurrence of a change in control (as defined in the 2027 indenture), each holder of the Senior Notes due 2027 may require the Company to repurchase all or a portion of the Senior Notes due 2027 in cash at a price equal to 101% of the principal amount of the Senior Notes due 2027 to be repurchased, plus accrued and unpaid interest, if any, to the date of purchase. Use of Proceeds and Loss on Early Extinguishment of Debt . On March 3, 2017, the Company completed a cash tender offer for $370.3 million of the 6.875% Senior Notes due 2022 and the remaining $154.7 million was called on March 31, 2017 for redemption on May 1, 2017. The tender offer and redemption, as well as underwriting fees associated with the new issuance, were primarily funded with the proceeds from the issuance of the Senior Notes due 2027, as well as cash on hand. The Company recorded a $22.8 million loss on early extinguishment of debt in 2017. The loss includes $21.9 million of tender and call premiums on the retired debt. Short-term Borrowings Short-term borrowings consist of term loans and revolving credit facilities at various foreign subsidiaries that the Company expects to either pay over the next 12 months or refinance at the end of their applicable terms. Certain of these borrowings are guaranteed by stand-by letters of credit issued under the Company's amended and restated senior secured revolving credit facility. Principal Payments on Debt The table below sets forth, as of November 25, 2018 , the Company's required aggregate short-term and long-term debt principal payments (inclusive of premium and discount): (Dollars in thousands) 2019 $ 31,935 2020 — 2021 — 2022 — 2023 — Thereafter 1,031,866 Total future debt principal payments $ 1,063,801 Interest Rates on Borrowings The Company’s weighted-average interest rate on average borrowings outstanding during 2018 , 2017 and 2016 was 5.01% , 5.60% and 6.37% , respectively. The weighted-average interest rate on average borrowings outstanding includes the amortization of capitalized issuance costs, including underwriting fees and other expenses, and excludes interest on obligations to participants under deferred compensation plans. Dividends and Restrictions The terms of the indentures relating to the Company's unsecured notes and its amended and restated senior secured revolving credit facility agreement contain covenants that restrict the Company's ability to pay dividends to its stockholders. For information about the Company's dividend payments, see Note 14 . As of November 25, 2018 , and at the time the dividends were paid, the Company met the requirements of its debt instruments. Subsidiaries of the Company that are not wholly-owned subsidiaries and that are "restricted subsidiaries" under the Company’s indentures are permitted under the indentures to pay dividends to all stockholders either on a pro rata basis or on a basis that results in the receipt by the Company or a restricted subsidiary that is the parent of the restricted subsidiary of dividends or distributions of greater value than it would receive on a pro rata basis. The terms of the indentures relating to the Company's unsecured notes and its amended and restated senior secured revolving credit facility agreement contain covenants that restrict (in each case subject to certain exceptions) the Company or any restricted subsidiary from entering into any arrangements that would restrict the payment of dividends or of any obligation owed by the restricted subsidiary to the Company or any other restricted subsidiary, the making of any loans or advances to the Company or any other restricted subsidiary, or transferring any of its property to the Company or any other restricted subsidiary. |
Guarantees
Guarantees | 12 Months Ended |
Nov. 25, 2018 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES Indemnification agreements. In the ordinary course of business, the Company enters into agreements containing indemnification provisions under which the Company agrees to indemnify the other party for specified claims and losses. For example, the Company's trademark license agreements, real estate leases, consulting agreements, logistics outsourcing agreements, securities purchase agreements and credit agreements typically contain such provisions. This type of indemnification provision obligates the Company to pay certain amounts associated with claims brought against the other party as the result of trademark infringement, negligence or willful misconduct of Company employees, breach of contract by the Company including inaccuracy of representations and warranties, specified lawsuits in which the Company and the other party are co-defendants, product claims and other matters. These amounts generally are not readily quantifiable; the maximum possible liability or amount of potential payments that could arise out of an indemnification claim depends entirely on the specific facts and circumstances associated with the claim. The Company has insurance coverage that minimizes the potential exposure to certain of such claims. The Company also believes that the likelihood of material payment obligations under these agreements to third parties is low. Covenants. The Company's long-term debt agreements and the Second Amended and Restated Credit Agreement contain customary covenants restricting its activities as well as those of its subsidiaries, including limitations on its and its subsidiaries' ability to sell assets; engage in mergers; enter into capital leases or certain leases not in the ordinary course of business; enter into transactions involving related parties or derivatives; incur or prepay indebtedness or grant liens or negative pledges on its assets; make loans or other investments; pay dividends or repurchase stock or other securities; guaranty third-party obligations; make capital expenditures; and make changes in its corporate structure. For additional information, see Note 6 . As of November 25, 2018 , the Company was in compliance with all of these covenants. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Nov. 25, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension plans. The Company has several non-contributory defined benefit retirement plans covering eligible employees. Plan assets are invested in a diversified portfolio of securities including stocks, bonds, cash equivalents and other alternative investments including real estate investment trust funds. Benefits payable under the plans are based on years of service, final average compensation, or both. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations. Postretirement plans. The Company maintains plans that provide postretirement benefits to eligible employees, principally health care, to substantially all U.S. retirees and their qualified dependents. These plans were established with the intention that they would continue indefinitely. However, the Company retains the right to amend, curtail or discontinue any aspect of the plans at any time. The plans are contributory and contain certain cost-sharing features, such as deductibles and coinsurance. The Company's policy is to fund postretirement benefits as claims and premiums are paid. The following tables summarize activity of the Company's defined benefit pension plans and postretirement benefit plans: Pension Benefits Postretirement Benefits 2018 2017 2018 2017 (Dollars in thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 1,243,852 $ 1,191,934 $ 98,675 $ 112,451 Service cost (1) 3,602 3,427 113 172 Interest cost 36,070 36,853 2,718 3,148 Plan participants' contribution 570 570 4,105 4,376 Actuarial (gain) loss (1)(2) (69,602 ) 65,669 (6,353 ) (5,516 ) Net curtailment loss 113 132 — — Impact of foreign currency changes (6,983 ) 15,545 — — Plan settlements (63 ) (410 ) — — Net benefits paid (70,839 ) (69,868 ) (16,351 ) (15,956 ) Benefit obligation at end of year $ 1,136,720 $ 1,243,852 $ 82,907 $ 98,675 Change in plan assets: Fair value of plan assets at beginning of year 948,706 837,322 — — Actual (loss) return on plan assets (3) (36,468 ) 117,188 — — Employer contribution (4) 122,492 52,386 12,246 11,580 Plan participants' contributions 570 570 4,105 4,376 Plan settlements (63 ) (410 ) — — Impact of foreign currency changes (5,822 ) 11,518 — — Net benefits paid (70,839 ) (69,868 ) (16,351 ) (15,956 ) Fair value of plan assets at end of year 958,576 948,706 — — Unfunded status at end of year $ (178,144 ) $ (295,146 ) $ (82,907 ) $ (98,675 ) _____________ (1) Classification of service cost and actuarial loss related to U.S. and U.K. pension plans for 2017 have been conformed to the 2018 presentation. (2) 2018 actuarial gains and 2017 actuarial losses in the Company's pension benefit plans resulted from changes in discount rate assumptions. Changes in financial markets during 2018 including an increase in corporate bond yield indices, resulted in a decrease in benefit obligations. Changes in financial markets during 2017 including a decrease in corporate bond yield indices, resulted in an increase in benefit obligations. (3) The decrease in return on plan assets in the Company's pension benefit plans in 2018 was primarily due to worse-than-expected asset performance of U.S. and international equity securities. (4) The increase in employer contributions to the Company's pension benefit plans is due to additional planned contributions made during the year. Amounts recognized in the Company's consolidated balance sheets as of November 25, 2018 and November 26, 2017 , consist of the following: Pension Benefits Postretirement Benefits 2018 2017 2018 2017 (Dollars in thousands) Unfunded status recognized on the balance sheet: Prepaid benefit cost $ 22,738 $ 24,644 $ — $ — Accrued benefit liability – current portion (9,390 ) (9,316 ) (8,725 ) (9,427 ) Accrued benefit liability – long-term portion (191,491 ) (310,474 ) (74,182 ) (89,248 ) $ (178,143 ) $ (295,146 ) $ (82,907 ) $ (98,675 ) Accumulated other comprehensive loss: Net actuarial loss $ (365,424 ) $ (362,602 ) $ (14,652 ) $ (21,878 ) Net prior service benefit 351 419 — — $ (365,073 ) $ (362,183 ) $ (14,652 ) $ (21,878 ) The accumulated benefit obligation for all defined benefit plans was $1.1 billion and $1.2 billion at November 25, 2018 and November 26, 2017 . Information for the Company's defined benefit plans with an accumulated or projected benefit obligation in excess of plan assets is as follows: Pension Benefits 2018 2017 (Dollars in thousands) Accumulated benefit obligations in excess of plan assets: Aggregate accumulated benefit obligation $ 986,084 $ 1,091,856 Aggregate fair value of plan assets 792,427 775,859 Projected benefit obligations in excess of plan assets: Aggregate projected benefit obligation $ 1,028,074 $ 1,131,873 Aggregate fair value of plan assets 827,193 812,082 The components of the Company's net periodic benefit cost were as follows: Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (Dollars in thousands) Net periodic benefit cost: Service cost (1) $ 3,602 $ 3,427 $ 2,701 $ 113 $ 172 $ 200 Interest cost 36,070 36,853 37,819 2,718 3,148 3,223 Expected return on plan assets (1) (48,830 ) (42,033 ) (42,889 ) — — — Amortization of prior service benefit (65 ) (62 ) (61 ) — — — Amortization of actuarial gain / loss 12,650 13,489 12,036 872 1,271 2,967 Curtailment (gain) loss 38 106 (140 ) — — — Net settlement (gain) loss (102 ) 126 49 — — — Net periodic benefit cost 3,363 11,906 9,515 3,703 4,591 6,390 Changes in accumulated other comprehensive loss: Actuarial loss (gain) 15,373 (9,785 ) 32,187 (6,354 ) (5,516 ) 5,556 Amortization of prior service benefit 65 62 61 — — — Amortization of actuarial gain / loss (12,650 ) (13,489 ) (12,036 ) (872 ) (1,271 ) (2,967 ) Curtailment gain — — 173 — — — Net settlement gain (loss) 102 (126 ) (49 ) — — — Total recognized in accumulated other comprehensive loss 2,890 (23,338 ) 20,336 (7,226 ) (6,787 ) 2,589 Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ 6,253 $ (11,432 ) $ 29,851 $ (3,523 ) $ (2,196 ) $ 8,979 _____________ (1) Classification of service cost and expected return on plan assets related to U.S. and U.K. pension plans for 2017 and 2016 have been conformed to the 2018 presentation. The amounts that will be amortized from "Accumulated other comprehensive loss" into net periodic benefit cost in 2019 for the Company's defined benefit pension and postretirement benefit plans are expected to be $13.3 million and $0.5 million , respectively. Assumptions used in accounting for the Company's benefit plans were as follows: Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.4% 3.8% 4.0% 3.4% 3.7% 3.8% Expected long-term rate of return on plan assets 5.4% 5.8% 5.9% Rate of compensation increase 3.4% 3.4% 3.4% Weighted-average assumptions used to determine benefit obligations: Discount rate 4.1% 3.4% 3.8% 4.2% 3.4% 3.7% Rate of compensation increase 3.4% 3.4% 3.4% Assumed health care cost trend rates were as follows: Health care trend rate assumed for next year 5.9% 6.3% 6.4% Rate trend to which the cost trend is assumed to decline 4.4% 4.4% 4.4% Year that rate reaches the ultimate trend rate 2037 2037 2038 For the Company's U.S. benefit plans, the discount rate used to determine the present value of the future pension and postretirement plan obligations was based on a yield curve constructed from a portfolio of high quality corporate bonds with various maturities. Each year's expected future benefit payments are discounted to their present value at the appropriate yield curve rate, thereby generating the overall discount rate. The Company utilized a variety of country-specific third-party bond indices to determine the appropriate discount rates to use for the benefit plans of its foreign subsidiaries. The Company bases the overall expected long-term rate of return on assets on anticipated long-term returns of individual asset classes and each pension plans' target asset allocation strategy based on current economic conditions. For the U.S. pension plan, the expected long-term returns for each asset class are determined through a mean-variance model to estimate 20 -year returns for the plan. Health care cost trend rate assumptions are not a significant input in the calculation of the amounts reported for the Company's postretirement benefits plans. A one percentage-point change in assumed health care cost trend rates would have no significant effect on the total service and interest cost components or on the postretirement benefit obligation. Consolidated pension plan assets relate primarily to the U.S. pension plan. The Company utilizes the services of independent third-party investment managers to oversee the management of U.S. pension plan assets. The Company's investment strategy is to invest plan assets in a diversified portfolio of domestic and international equity securities, fixed income securities and real estate and other alternative investments with the objective to provide a regular and reliable source of assets to meet the benefit obligation of the pension plans. Prohibited investments for the U.S. pension plan include certain privately placed or other non-marketable debt instruments, letter stock, commodities or commodity contracts and derivatives of mortgage-backed securities, such as interest-only, principal-only or inverse floaters. The current target allocation percentages for the Company's U.S. pension plan assets are 25% for equity securities and real estate with an allowable deviation of plus or minus 4% and 75% for fixed income securities with an allowable deviation of plus or minus 4%. The fair value of the Company's pension plan assets by asset class are as follows: Year Ended November 25, 2018 Asset Class Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Cash and cash equivalents $ 3,818 $ 3,818 $ — $ — Equity securities (1) U.S. large cap 91,663 — 91,663 — U.S. small cap 10,871 — 10,871 — International 86,974 — 86,974 — Fixed income securities (2) 714,034 — 714,034 — Other alternative investments Real estate (3) 35,265 — 35,265 — Private equity (4) 383 — — 383 Hedge fund (5) 11,389 — 11,389 — Other (6) 4,179 — 4,179 — Total investments at fair value $ 958,576 $ 3,818 $ 954,375 $ 383 Year Ended November 26, 2017 Asset Class Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Cash and cash equivalents $ 1,164 $ 1,164 $ — $ — Equity securities (1) U.S. large cap 209,568 — 209,568 — U.S. small cap 42,874 — 42,874 — International 141,924 — 141,924 — Fixed income securities (2) 463,617 — 463,617 — Other alternative investments Real estate (3) 69,546 — 69,546 — Private equity (4) 764 — — 764 Hedge fund (5) 14,934 — 14,934 — Other (6) 4,315 — 4,315 — Total investments at fair value $ 948,706 $ 1,164 $ 946,778 $ 764 _____________ (1) Primarily comprised of equity index funds that track various market indices. (2) Predominantly includes bond index funds that invest in long-term U.S. government and investment grade corporate bonds. (3) Primarily comprised of investments in U.S. Real Estate Investment Trusts. (4) Represents holdings in a diversified portfolio of private equity funds and direct investments in companies located primarily in North America. Fair values are determined by investment fund managers using primarily unobservable market data. (5) Primarily invested in a diversified portfolio of equities, bonds, alternatives and cash with a low tolerance for capital loss. (6) Primarily relates to accounts held and managed by a third-party insurance company for employee-participants in Belgium. Fair values are based on accumulated plan contributions plus a contractually-guaranteed return plus a share of any incremental investment fund profits. The fair value of plan assets are composed of U.S. plan assets of $792.4 million and non-U.S. plan assets of $166.2 million . The fair values of the substantial majority of the equity, fixed income and real estate investments are based on the net asset value of commingled trust funds that passively track various market indices. The Company's estimated future benefit payments to participants, which reflect expected future service, as appropriate are anticipated to be paid as follows: Pension Benefits Postretirement Benefits Total (Dollars in thousands) 2019 $ 68,292 $ 10,413 $ 78,705 2020 67,640 9,995 77,635 2021 68,115 9,633 77,748 2022 69,933 9,172 79,105 2023 70,040 8,579 78,619 2024-2028 355,238 34,622 389,860 At November 25, 2018 , the Company's contributions to its pension plans in 2019 are estimated to be $16 million . |
Employee Investment Plans
Employee Investment Plans | 12 Months Ended |
Nov. 25, 2018 | |
Disclosure of Employee Investment Plans [Abstract] | |
EMPLOYEE INVESTMENT PLANS | EMPLOYEE INVESTMENT PLANS The Company's Employee Savings and Investment Plan ("ESIP") is a qualified plan that covers eligible U.S. payroll employees. The Company matches 125% of ESIP participant's contributions to all funds maintained under the qualified plan up to the first 6.0% of eligible compensation. Total amounts charged to expense for the Company's employee investment plans for the years ended November 25, 2018 , November 26, 2017 and November 27, 2016 , were $14.9 million , $13.4 million and $12.0 million , respectively. |
Employee Incentive Compensation
Employee Incentive Compensation Plans | 12 Months Ended |
Nov. 25, 2018 | |
Schedule of Employee Incentive Compensation Plan [Abstract] | |
EMPLOYEE INCENTIVE COMPENSATION PLANS | EMPLOYEE INCENTIVE COMPENSATION PLANS Annual Incentive Plan The Annual Incentive Plan ("AIP") provides a cash bonus that is earned based upon the Company's business unit and consolidated financial results as measured against pre-established internal targets and upon the performance and job level of the individual. Total amounts charged to expense for this plan for the years ended November 25, 2018 , November 26, 2017 , and November 27, 2016 were $114.3 million , $88.0 million and $68.3 million , respectively. Total amounts accrued for this plan as of November 25, 2018 , and November 26, 2017 were $114.4 million and $85.4 million , respectively. The increase in the amounts charged to expense and liability balance in comparison to prior year reflects outperformance against the Company's internally-set objectives. Long-Term Incentive Plans 2016 Equity Incentive Plan ("EIP"). In July 2006, the Board adopted, and the stockholders approved, the EIP. The EIP was subsequently amended in 2011 and 2014 and then amended and restated by the Board and approved by the stockholders in April 2016. For more information on this plan, see Note 11 . Cash Long-Term Incentive Plan ("LTIP"). The Company established a long-term cash incentive plan effective at the beginning of 2005. In 2017, this program was replaced by cash-settled phantom restricted stock units. Refer to Note 11 for more information. Executive officers are not participants in this plan. Performance will be measured at the end of a three -year period based on the Company's performance against the following pre-established targets: (i) the target compound annual growth rate in the Company's net revenues over the three -year period; (ii) the Company's average margin of net earnings over the three -year period adjusted for certain items such as interest and taxes and total stockholder return over the three -year period relative to an expanded peer group. Awards will be paid out in the quarter following the end of the three -year period based on Company performance against the pre-established targets. The Company recorded expense for the LTIP of $4.1 million , $4.5 million and $4.9 million for the years ended November 25, 2018 , November 26, 2017 and November 27, 2016 , respectively. As of November 25, 2018 and November 26, 2017 , the Company had accrued a total of $8.1 million and $10.6 million , respectively, for the LTIP. |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended |
Nov. 25, 2018 | |
Share-based Compensation [Abstract] | |
STOCK-BASED INCENTIVE COMPENSATION PLANS | STOCK-BASED INCENTIVE COMPENSATION PLANS The Company recognized stock-based compensation expense of $89.8 million , $57.1 million and $20.3 million , and related income tax benefits of $22.3 million , $22.0 million and $7.8 million , respectively, for the years ended November 25, 2018 , November 26, 2017 and November 27, 2016 , respectively. As of November 25, 2018 , there was $67.3 million of total unrecognized compensation cost related to unvested equity and liability awards, which cost is expected to be recognized over a weighted-average period of 2.09 years. No stock-based compensation cost has been capitalized in the accompanying consolidated financial statements. For the year ended November 26, 2017 , the Company's results include an out-of-period adjustment, which increased selling, general and administrative expenses by $8.3 million and decreased net income by $5.1 million . This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest in awards after retirement. 2016 Equity Incentive Plan Under the Company's EIP, a variety of stock awards, including stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights ("SARs") and cash or equity settled awards may be granted. The aggregate number of shares of common stock authorized for issuance under the EIP is 8,000,000 shares. At November 25, 2018 , the number of shares available for issuance is 3,825,124 shares. Under the EIP, stock awards and SARs have a maximum contractual term of seven years and generally must have an exercise price at least equal to the fair market value of the Company's common stock on the grant date. Awards generally vest according to terms determined at the time of grant, or as otherwise determined by the Board in its discretion. Upon the exercise of a stock-settled SAR, the participant will receive shares of common stock. The number of shares of common stock issued per SAR unit exercised is equal to (i) the excess of the per-share fair market value of the Company's common stock on the date of exercise over the exercise price of the SAR, divided by (ii) the per-share fair market value of the Company's common stock on the date of exercise. Effective in 2017, stock-settled RSUs which include service or performance conditions were issued to certain employees. Each recipient's vested RSUs are converted to a share of common stock within 30 days of vesting. These RSUs do not have "dividend equivalent rights". Non-employee members of the Board receive RSUs annually. Each recipient's vested RSUs are converted to a share of common stock six months after their discontinuation of service with the Company. The RSUs additionally have "dividend equivalent rights" of which dividends paid by the Company on its common stock are credited by the equivalent addition of RSUs. Shares of common stock will be issued from the Company's authorized but unissued shares and are subject to the Stockholders' Agreement that governs all shares. Shares of common stock issued under the EIP contain certain repurchase rights, which may be exercised only with respect to shares of the Company's common stock that have been held by a participant for at least six months following their issuance date. As a result, the holder is exposed to the risk and rewards of ownership for a reasonable period of time. Accordingly, the SARs and RSUs are classified as equity awards. Stock-based awards settled in cash are classified as liability awards based on expected vesting and included as a component of "Accrued salaries, wages and employee benefits" or "Other long-term liabilities" on the accompanying consolidated balance sheets. Temporary equity. Equity-classified stock-based awards that may be settled in cash at the option of the holder are presented on the balance sheet outside of permanent equity. Accordingly, "temporary equity" on the accompanying consolidated balance sheets includes the redemption value of these awards generally related to the elapsed service period since the grant date reflecting patterns of compensation cost recognition, as well as the fair value of the common stock issued pursuant to the EIP. The increase in temporary equity from the year ended November 26, 2017 to November 25, 2018 was primarily due to an appreciation in the fair value of the Company's common stock price and additional compensation cost recognition for awards. Equity Awards SARs. The Company grants SARs, which include service or performance conditions, to a small group of the Company's senior executives. SARs with service conditions ("Service SARs") vest from three-and-a-half to four years, and have maximum contractual lives of seven years. SARs with performance conditions ("Performance SARs") vest at varying unit amounts, up to 150% of those awarded, based on the attainment of certain three -year cumulative performance goals and have maximum contractual lives of seven years. The Company did not grant Performance SARs in 2017 or 2018. SARs activity during the year ended November 25, 2018 was as follows: Service SARs Performance-based SARs Units Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Units Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (Units and dollars in thousands) Outstanding at November 26, 2017 2,530 $ 54.52 3.5 1,079 $ 60.52 4.1 Granted 155 96.00 — — Exercised (873 ) 42.47 (137 ) 61.92 Forfeited (25 ) 85.44 (50 ) 64.72 Performance adjustment — — 29 74.40 Outstanding at November 25, 2018 1,787 $ 63.57 3.4 921 $ 60.53 3.1 Vested and expected to vest at November 25, 2018 1,775 $ 63.48 3.4 $ 146,428 1,002 $ 60.64 3.2 $ 85,513 Exercisable at November 25, 2018 1,253 $ 59.16 2.7 $ 108,844 566 $ 59.62 2.3 $ 48,853 The aggregate intrinsic values are calculated as the difference between the exercise price of the underlying SARs and the fair value of the Company's common stock that were in-the-money at that date. November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Aggregate intrinsic value of Service SARs exercised during the year $ 53,398 $ 25,572 $ 1,443 Aggregate intrinsic value of Performance SARs exercised during the year $ 6,777 $ 883 $ 986 Unrecognized future compensation costs as of November 25, 2018 of $3.4 million for Service SARs and $0.2 million for Performance SARs are expected to be recognized over weighted-average periods of 1.71 years and 0.17 years, respectively. The Company believes it is probable that the performance-based SARs will vest. The weighted-average grant date fair value of SARs was estimated using the Black-Scholes option valuation model, unless the awards were subject to market conditions, in which case the Company utilized the Monte Carlo simulation model. The weighted-average grant date fair values and corresponding weighted-average assumptions used in the Black-Scholes option valuation model were as follows: Service SARs Granted Performance SARs Granted 2018 2017 2016 2016 Weighted-average grant date fair value $ 26.14 $ 16.13 $ 15.74 $ 15.94 Weighted-average assumptions: Expected life (in years) 4.9 4.9 4.8 5.0 Expected volatility 35.7 % 32.5 % 36.4 % 36.3 % Risk-free interest rate 2.5 % 1.9 % 1.1 % 1.1 % Expected dividend 2.5 % 2.7 % 2.5 % 2.5 % The weighted-average grant date fair value of SARs subject to market conditions was estimated using a Monte Carlo simulation model. The weighted-average grant date fair values and corresponding weighted-average assumptions used in the model were as follows: Performance SARs Granted 2016 Weighted-average grant date fair value $ 20.56 Weighted-average assumptions: Expected life (in years) 4.8 Expected volatility 36.5 % Risk-free interest rate 1.5 % Expected dividend 2.6 % Service and Performance RSUs . The Company grants RSUs, which include service or performance conditions, to a small group of the Company's senior executives. RSUs with service conditions ("Service RSUs") granted during 2018 vest in four annual equal installments of 25% beginning on the first anniversary of the date granted subject to continued employment. Service RSUs granted in 2017 cliff vest in three years subject to continued employment. RSUs with performance conditions ("Performance RSUs") vest at varying unit amounts, up to 200% of those awarded, based on the attainment of certain three-year cumulative performance goals over a three year performance period subject to continued employment. Service and Performance RSU activity during the year ended November 25, 2018 was as follows: Service RSUs Performance RSUs Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) (Units in thousands) Outstanding at November 26, 2017 55 $ 69.00 2.4 109 $ 69.00 2.4 Granted 53 96.00 84 96.00 Forfeited (4 ) 96.00 (19 ) 80.72 Outstanding at November 25, 2018 104 $ 81.67 1.7 174 $ 80.75 1.4 Unrecognized future compensation cost as of November 25, 2018 of $2.2 million for Service RSUs and $3.1 million for Performance RSUs are expected to be recognized over a weighted-average period of 1.98 years and 1.37 years, respectively. The Board estimated the grant date fair value of Service and Performance RSUs using factors including the most recent valuation conducted by a third-party valuation firm, unless the awards were subject to market conditions, in which case it utilized the Monte Carlo simulation model. During 2018 and 2017, the weighted-average grant date fair value for Service RSUs and Performance RSUs granted without a market condition was $91.63 and $64.86 , respectively. The weighted-average grant date fair value and corresponding weighted-average assumptions used in the Monte Carlo valuation model were as follows: Performance RSU Granted 2018 2017 Weighted-average grant date fair value $ 104.53 $ 82.33 Weighted-average assumptions: Expected life (in years) 3.0 3.0 Expected volatility 37.2 % 33.5 % Risk-free interest rate 2.3 % 1.4 % Expected dividend 2.5 % 2.7 % RSUs to the Board of Directors . The Company grants RSUs to certain members of its Board ("Board RSUs"). The total fair value of Board RSUs granted to during the year ended November 25, 2018 of $1.5 million was estimated using the fair value of the Company's common stock. The total fair value of RSUs outstanding, vested and expected to vest was $10.1 million and $6.5 million as of November 25, 2018 and November 26, 2017 , respectively. Board RSUs vest in a series of three equal installments at 13 months, 24 months and 36 months following the date of grant subject to continued service. However, if the recipient's continuous service terminates for a reason other than cause after the first vesting installment, but prior to full vesting, then the remaining unvested portion of the award becomes fully vested as of the date of such termination. Liability Awards The Company grants cash settled phantom restricted stock units, which include service or performance conditions, to select levels of the Company’s management. Upon vesting of a phantom restricted stock unit, the participant will receive a cash payout in an amount equal to the vested units multiplied by the fair value of the Company’s common stock at the end of the service or performance period. Phantom restricted stock units with service conditions ("Phantom Service RSUs") granted during 2018 vest in four annual equal installments of 25% beginning on the first anniversary of the date granted subject to continued employment. The Phantom Service RSUs granted in 2017 cliff vest in three years subject to continued employment. For Phantom Service RSUs prior to 2017, the actual number of Phantom Service RSUs to vest is subject to a minimum and maximum, based on the fair value of the common stock at the end of the three -year performance period. Phantom restricted stock units with performance conditions ("Phantom Performance RSUs") vest at varying unit amounts, up to 200% of those awarded, based on attainment of certain three-year cumulative performance goals and subject to continued employment. Liability award activity during the year ended November 25, 2018 was as follows: Phantom Service RSUs Phantom Performance RSUs Units Weighted-Average Fair Value Fair Value At Period End Units Weighted-Average Fair Value Fair Value At Period End Outstanding at November 26, 2017 875 $ 67.88 $ 84.50 104 $ 69.30 $ 84.50 Granted 300 97.71 87 96.68 Vested (195 ) 74.47 — — Performance adjustment 9 69.06 — — Forfeited (79 ) 72.43 (20 ) 77.99 Outstanding at November 25, 2018 910 $ 75.92 $ 146.00 171 $ 82.21 $ 146.00 Expected to vest at November 25, 2018 847 $ 75.33 $ 146.00 153 $ 81.84 $ 146.00 The total fair value of Phantom Service RSU awards vested during 2018 , 2017 and 2016 was $17.0 million , $9.2 million and $15.8 million , respectively. The weighted-average fair value of Phantom Service RSUs at the grant date was estimated based on the fair value of the Company's common stock. The Company accrued for $94.5 million of Phantom Service RSUs and Phantom Performance RSUs as of November 25, 2018 . Unrecognized future compensation cost as of November 25, 2018 of $46.4 million for Phantom Service RSUs and $11.9 million for Phantom Performance RSUs are expected to be recognized over a weighted-average period of 2.28 years and 1.73 years, respectively. The Company believes it is probable that the liability awards will vest. |
Long-Term Employee Related Bene
Long-Term Employee Related Benefits | 12 Months Ended |
Nov. 25, 2018 | |
Compensation Related Costs [Abstract] | |
LONG-TERM EMPLOYEE RELATED BENEFITS | LONG-TERM EMPLOYEE RELATED BENEFITS Long-term employee-related benefit liabilities primarily consist of the Company's liabilities for its deferred compensation plans. Deferred compensation plan for executives and outside directors, established January 1, 2003. The Company has a non-qualified deferred compensation plan for executives and outside directors that was established on January 1, 2003 and amended thereafter. The deferred compensation plan obligations are payable in cash upon retirement, termination of employment and/or certain other times in a lump-sum distribution or in installments, as elected by the participant in accordance with the plan. As of November 25, 2018 and November 26, 2017 , these plan liabilities totaled $34.2 million and $29.4 million . The Company held funds of $34.4 million and $31.1 million in an irrevocable grantor's rabbi trust as of November 25, 2018 and November 26, 2017 , respectively, related to this plan. Rabbi trust assets are classified as available-for-sale marketable securities and are included in "Other current assets" or "Other non-current assets" on the Company's consolidated balance sheets. Unrealized gains and losses on these marketable securities are reported as a separate component of stockholders' equity and included in AOCI on the Company's consolidated balance sheets. Deferred compensation plan for executives, prior to January 1, 2003. The Company also maintains a non-qualified deferred compensation plan for certain management employees relating to compensation deferrals for the period prior to January 1, 2003. The rabbi trust is not a feature of this plan. As of November 25, 2018 and November 26, 2017 , liabilities for this plan totaled $28.4 million and $31.8 million , respectively. Interest earned by the participants in deferred compensation plans was $0.7 million , $8.1 million and $2.5 million for the years ended November 25, 2018 , November 26, 2017 and November 27, 2016 , respectively. The charges were included in "interest expense" in the Company's consolidated statements of income. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Nov. 25, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company is obligated under operating leases and lease financing obligations for manufacturing, finishing and distribution facilities, office space, retail stores and equipment. At November 25, 2018 , future minimum payments under operating leases and lease financing obligations were as follows: Future Minimum Payments (Dollars in thousands) 2019 $ 215,634 2020 185,902 2021 152,512 2022 129,675 2023 98,319 Thereafter 281,482 Total future minimum lease payments $ 1,063,524 In general, leases relating to real estate may include renewal options of various length. The San Francisco headquarters office lease contains multiple renewal options of up to 57 years . Rental expense for the years ended November 25, 2018 , November 26, 2017 and November 27, 2016 was $258.6 million , $220.2 million and $204.6 million , respectively. At November 25, 2018 , the lease financing obligation balance was $34.0 million , the majority of which is recorded in "Other long-term liabilities". The remaining minimum payments under the lease financing obligations are $43.8 million . The lease financing obligation balance at the end of the lease term will be approximately $21.1 million which approximates the net book value of the buildings to be relinquished to the lessor. As of November 25, 2018 , and November 26, 2017 , the gross carrying values of assets related to build-to-suit lease arrangements accounted for as lease financing obligations were $44.6 million and $34.0 million , respectively, with associated accumulated depreciation of $3.1 million and $1.8 million , respectively. Forward Foreign Exchange Contracts The Company uses over-the-counter derivative instruments to manage its exposure to foreign currencies. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the forward foreign exchange contracts. However, the Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. See Note 5 for additional information. Other Contingencies Litigation. In the ordinary course of business, the Company has various pending cases involving contractual matters, facility and employee-related matters, distribution matters, product liability claims, trademark infringement and other matters. The Company does not believe any of these pending legal proceedings will have a material impact on its financial condition, results of operations or cash flows. Customs Duty Audits . The Company imports both raw materials and finished garments into all of its operating regions and as such, is subject to numerous countries' complex customs laws and regulations with respect to its import and export activity. The Company is currently undergoing audit assessments and the related legal appeal processes with various customs authorities. While the Company is vigorously defending its position and does not believe any of the claims for customs duty and related charges have merit, the ultimate resolution of these assessments and legal proceedings are subject to risk and uncertainty. |
Dividend
Dividend | 12 Months Ended |
Nov. 25, 2018 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND The Company paid cash dividends totaling $90 million on its common stock in two $45 million installments in the first and fourth quarters of 2018 . In 2017, cash dividends of $70 million were paid in two $35 million installments in the first and fourth quarters of the year. In 2016, cash dividends of $60 million were paid in the second quarter of the year. Subsequent to the Company's year end, the Board declared a cash dividend on its common stock of $110 million , payable in two $55 million installments. The Company expects to pay the first installment in the first quarter of 2019 and the second installment in the fourth quarter of 2019. The Company does not have an established annual dividend policy. The Company will continue to review its ability to pay cash dividends at least annually, and dividends may be declared at the discretion of the Board depending upon, among other factors, the Company's financial condition and compliance with the terms of the Company's debt agreements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Nov. 25, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive income (loss) is summarized below: Levi Strauss & Co. Noncontrolling Interest Pension and Postretirement Benefits Translation Adjustments Unrealized Gain (Loss) on Marketable Securities Net Investment Hedges Foreign Currency Translation Total Foreign Currency Translation Totals (Dollars in thousands) Accumulated other comprehensive (loss) income at November 29, 2015 $ (236,340 ) $ (18,247 ) $ (126,359 ) $ 1,880 $ (379,066 ) $ 8,965 $ (370,101 ) Gross changes (22,925 ) (829 ) (30,848 ) 143 (54,459 ) 468 (53,991 ) Tax 7,238 319 (1,291 ) (55 ) 6,211 — 6,211 Other comprehensive income (loss), net of tax (15,687 ) (510 ) (32,139 ) 88 (48,248 ) 468 (47,780 ) Accumulated other comprehensive (loss) income at November 27, 2016 (252,027 ) (18,757 ) (158,498 ) 1,968 (427,314 ) 9,433 (417,881 ) Gross changes 30,125 (59,945 ) 40,151 3,379 13,710 105 13,815 Tax (10,279 ) 23,084 (2,283 ) (1,299 ) 9,223 — 9,223 Other comprehensive (loss) income, net of tax 19,846 (36,861 ) 37,868 2,080 22,933 105 23,038 Accumulated other comprehensive (loss) income at November 26, 2017 (232,181 ) (55,618 ) (120,630 ) 4,048 (404,381 ) 9,538 (394,843 ) Gross changes 4,336 21,280 (43,479 ) (1,488 ) (19,351 ) (234 ) (19,585 ) Tax (1,178 ) (5,549 ) 5,487 388 (852 ) — (852 ) Other comprehensive (loss) income, net of tax 3,158 15,731 (37,992 ) (1,100 ) (20,203 ) (234 ) (20,437 ) Accumulated other comprehensive (loss) income at November 25, 2018 $ (229,023 ) $ (39,887 ) $ (158,622 ) $ 2,948 $ (424,584 ) $ 9,304 $ (415,280 ) No material amounts were reclassified out of "Accumulated other comprehensive loss" into net income other than those that pertain to the Company's pension and postretirement benefit plans. See Note 8 for additional information. These amounts are included in "Selling, general and administrative expenses" in the Company's consolidated statements of income. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Nov. 25, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET The following table summarizes significant components of "Other income (expense), net": Year Ended November 25, November 26, November 27, (Dollars in thousands) Foreign exchange management gains (losses) (1) $ 11,167 $ (41,167 ) $ 15,860 Foreign currency transaction (losses) gains (2) (7,498 ) 7,853 (7,166 ) Interest income 9,400 3,380 1,376 Investment income 734 629 976 Other 4,455 2,313 7,177 Total other income (expense), net $ 18,258 $ (26,992 ) $ 18,223 _____________ (1) Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2018 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro and the British Pound. Losses in 2017 were primarily due to unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, the Euro and the British Pound. Gains in 2016 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso. (2) Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Gains in 2017 were primarily due to the strengthening of the Mexican Peso and Euro against the US dollar. Losses in 2016 were primarily due to the weakening of various currencies against the U.S. Dollar. |
Income Taxes
Income Taxes | 12 Months Ended |
Nov. 25, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's income tax expense was $214.8 million , $64.2 million and $116.1 million and the Company's effective income tax rate was 43.0% , 18.4% and 28.5% for the years ended November 25, 2018 , November 26, 2017 and November 27, 2016 , respectively. The Tax Act enacted in the United States on December 22, 2017 includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% and a deemed repatriation of foreign earnings. The increase in the effective tax rate in 2018 as compared to 2017 was primarily driven by a one-time tax charge related to the impact of the Tax Act described above and proportionately less tax benefit from the lower tax cost of foreign operations, partially offset by the lower U.S. federal statutory tax rate. The decrease in the effective tax rate in 2017 as compared to 2016 was primarily due to additional net foreign tax credits from repatriations from foreign operations as compared to 2016 and release of valuation allowances on deferred tax assets of foreign subsidiaries, primarily Japan. The Company's income tax expense differed from the amount computed by applying the U.S. federal statutory income tax rate of 22.4% to income before income taxes as follows: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Income tax expense at U.S. federal statutory rate $ 111,755 22.4 % $ 122,073 35.0 % $ 142,541 35.0 % State income taxes, net of U.S. federal impact 11,102 2.2 % 7,598 2.2 % 6,943 1.7 % Change in valuation allowance (9,239 ) (1.9 )% (9,624 ) (2.8 )% — — % Impact of foreign operations (21,674 ) (4.3 )% (50,650 ) (14.5 )% (28,727 ) (7.1 )% Reassessment of tax liabilities (12,552 ) (2.5 )% (5,553 ) (1.6 )% (2,387 ) (0.6 )% Stock-based compensation (1) (10,715 ) (2.1 )% (5,602 ) (1.6 )% — — % Deduction related to subsidiaries — — % — — % (6,788 ) (1.7 )% Other, including non-deductible expenses (1) 2,742 0.5 % 5,983 1.7 % 4,469 1.2 % Impact of US Tax Act 143,359 28.7 % — — % — — % Total $ 214,778 43.0 % $ 64,225 18.4 % $ 116,051 28.5 % _____________ (1) Classification of stock-based compensation for 2017 has been conformed to the November 25, 2018 presentation. Impact of foreign operations. The tax rate benefit in 2018 decreased as compared to 2017 primarily because the new U.S. federal income tax rate more closely aligns with the tax rates in our foreign jurisdictions. The tax rate benefit in 2017 as compared to 2016 is due to $32.0 million impact resulting from favorable mix of earnings in jurisdictions with lower effective tax rates and $18.6 million from actual and deemed repatriation of foreign earnings. Release of Valuation Allowance. The $9.2 million tax benefit in 2018 is primarily due to the release of valuation allowances on deferred tax assets of certain foreign subsidiaries, primarily in Japan where management concluded that it is more likely than not that such assets will be realized. Reassessment of tax liabilities. The $12.6 million tax benefit in 2018 is primarily attributable to finalization of a foreign audit. The $5.6 million tax benefit in 2017 is primarily attributable to the remeasurement of a tax position and the lapse of statutes of limitations in various jurisdictions. Deduction related to subsidiaries. In 2016, the $6.8 million benefit is primarily related to a discrete tax benefit attributable to deductions for worthless debts in a consolidated subsidiary. The U.S. and foreign components of income before income taxes were as follows: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Domestic $ 151,229 $ 67,407 $ 189,478 Foreign 348,793 281,374 217,782 Total income before income taxes $ 500,022 $ 348,781 $ 407,260 Income tax expense consisted of the following: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) U.S. Federal Current $ 12,468 $ 7,936 $ 7,122 Deferred 126,210 1,240 66,840 $ 138,678 $ 9,176 $ 73,962 U.S. State Current $ 6,447 $ 3,441 $ 2,097 Deferred 4,655 4,157 4,846 $ 11,102 $ 7,598 $ 6,943 Foreign Current $ 61,605 $ 53,334 $ 40,754 Deferred 3,393 (5,883 ) (5,608 ) $ 64,998 $ 47,451 $ 35,146 Consolidated Current $ 80,520 $ 64,711 $ 49,973 Deferred 134,258 (486 ) 66,078 Total income tax expense $ 214,778 $ 64,225 $ 116,051 The Tax Act was enacted in the United States on December 22, 2017. The Tax Act introduced many changes, including lowering the U.S. corporate tax rate from 35% to 21%, changes in incentives, provisions to prevent U.S. base erosion and significant changes in the taxation of international income, and provisions which allow for the repatriation of foreign earnings without U.S. tax. By operation of tax law, the Company applied a blended U.S. statutory federal income tax rate of 22.4% for fiscal year 2018 based on the pro rata number of days in the fiscal year before and after the effective date of the Tax Act. The enactment of the Tax Act resulted in a charge of $143.4 million to tax expense for the year ended November 25, 2018 . This charge was comprised of a $95.6 million re-measurement of the Company's deferred tax assets and liabilities based on the lower rates at which they are expected to reverse in the future, a $37.5 million one-time U.S. transition tax on undistributed foreign earnings, and a $10.3 million charge related to foreign and state tax costs associated with the future remittance of undistributed earnings of foreign subsidiaries. Deferred Tax Assets and Liabilities The Company's deferred tax assets and deferred tax liabilities were as follows: November 25, 2018 November 26, 2017 (Dollars in thousands) Deferred tax assets Foreign tax credit carryforwards $ 133,620 $ 123,593 State net operating loss carryforwards 9,708 8,302 Foreign net operating loss carryforwards 52,327 59,157 Employee compensation and benefit plans 144,597 214,798 Advance royalties 22,366 46,757 Accrued liabilities 22,119 29,169 Sales returns and allowances 20,342 39,030 Inventory 9,985 19,553 Property, plant and equipment 11,380 8,826 Unrealized foreign exchange gains or losses 5,467 23,058 Other (1) 9,749 18,197 Total gross deferred tax assets 441,660 590,440 Less: Valuation allowance (21,970 ) (38,692 ) Deferred tax assets, net of valuation allowance 419,690 551,748 Deferred tax liabilities U.S. Branches (1) (19,107 ) (17,128 ) Residual tax liability on unremitted foreign earnings (5,737 ) — Total deferred tax liabilities (24,844 ) (17,128 ) Total net deferred tax assets $ 394,846 $ 534,620 _____________ (1) Classification of U.S. Branch deferred taxes for 2017 has been conformed to the November 25, 2018 presentation. Foreign tax credit carryforwards . The foreign tax credit carryforwards at November 25, 2018 , are subject to expiration through 2027 if not utilized. Foreign net operating loss carryforwards. As of November 25, 2018 , the Company had a deferred tax asset of $51.4 million for foreign net operating loss carryforwards of $192.4 million . Of these operating losses $91.4 million are subject to expiration through 2028. The remaining $101.0 million are available as indefinite carryforwards under applicable tax law. Valuation Allowance. The following table details the changes in valuation allowance during the year ended November 25, 2018 : Valuation Allowance at November 26, 2017 Changes in Related Gross Deferred Tax Asset Change / (Release) Valuation Allowance at November 25, 2018 (Dollars in thousands) U.S. state net operating loss carryforwards $ 1,520 $ 576 $ — $ 2,096 Foreign net operating loss carryforwards and other foreign deferred tax assets 37,172 (1,056 ) (16,242 ) 19,874 $ 38,692 $ (480 ) $ (16,242 ) $ 21,970 At November 25, 2018 , the Company's valuation allowance primarily related to its gross deferred tax assets for state and foreign net operating loss carryforwards, which reduced such assets to the amount that will more likely than not be realized. The $16.2 million release during 2018 was attributable to the release of valuation allowances on deferred tax assets, primarily in Japan. Unremitted earnings of certain foreign subsidiaries. The Company historically provided for U.S. income taxes on the undistributed earnings of foreign subsidiaries unless they were considered indefinitely reinvested outside the United States. At November 26, 2017, the Company asserted indefinite reinvestment on $264 million of undistributed foreign earnings and did not record any deferred tax liability with respect to the undistributed foreign earnings. These and other undistributed foreign earnings were subject to the U.S. one-time mandatory transition tax and are eligible to be repatriated to the United States without additional U.S. tax under the Tax Act. The Company has reevaluated its historic indefinite reinvestment assertion as a result of the enactment of the Tax Act and determined that any historical undistributed earnings through November 25, 2018 of foreign subsidiaries are no longer considered to be indefinitely reinvested. The Company has recorded a $10.3 million deferred tax expense related to foreign and state tax costs associated with the future remittance of these undistributed earnings of foreign subsidiaries. Taxes due under the GILTI provision. The Tax Act also includes provisions not yet effective for the Company, including a provision to tax global intangible low-taxed income ("GILTI") of foreign subsidiaries, which will be effective for the Company beginning November 26, 2018. In accordance with U.S. GAAP, the Company has made an accounting policy election to treat taxes due under the GILTI provision as a current period expense. Uncertain Income Tax Positions As of November 25, 2018 , the Company’s total gross amount of unrecognized tax benefits was $26.6 million , of which $24.2 million could impact the effective tax rate, if recognized, as compared to November 26, 2017 , when the Company’s total gross amount of unrecognized tax benefits was $33.8 million , of which $28.1 million could have impacted the effective tax rate, if recognized. The following table reflects the changes to the Company's unrecognized tax benefits for the year ended November 25, 2018 and November 26, 2017 : November 25, November 26, (Dollars in thousands) Unrecognized tax benefits beginning balance $ 33,786 $ 29,053 Increases related to current year tax positions 3,657 4,779 Increases related to tax positions from prior years 5,686 5,625 Decreases related to tax positions from prior years (13,731 ) (4,050 ) Settlement with tax authorities — — Lapses of statutes of limitation (1,811 ) (1,956 ) Other, including foreign currency translation (993 ) 335 Unrecognized tax benefits ending balance $ 26,594 $ 33,786 The Company evaluates all domestic and foreign audit issues and believes that it is reasonably possible that total gross unrecognized tax benefits could decrease by as much as $1.2 million within the next twelve months. As of November 25, 2018 and November 26, 2017 , accrued interest and penalties primarily relating to non-U.S. jurisdictions were $2.7 million and $2.5 million , respectively. The Company files income tax returns in the United States and in various foreign (including Belgium, Hong Kong and Mexico), state and local jurisdictions. With few exceptions, examinations have been completed by tax authorities or the statute of limitations has expired for United States federal, foreign, state and local income tax returns filed by the Company for years through 2008. |
Related Parties
Related Parties | 12 Months Ended |
Nov. 25, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES Charles V. Bergh, President and Chief Executive Officer, Peter E. Haas Jr., a director of the Company, Elizabeth O'Neill, Executive Vice President and President of Product, Innovation and Supply Chain, and Marc Rosen, Executive Vice President and President of Direct-to-Consumer, are board members of the Levi Strauss Foundation, which is not a consolidated entity of the Company. Seth R. Jaffe, Executive Vice President and General Counsel, is Vice President of the Levi Strauss Foundation. During fiscal years 2018 , 2017 , and 2016 , the Company donated $7.5 million , $7.3 million , and $6.9 million , respectively, to the Levi Strauss Foundation. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Nov. 25, 2018 | |
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. The Company reports net trade receivables and inventories by segment as that information is used by the chief operating decision maker in assessing segment performance. The Company does not report its other assets by segment as that information is not used by the chief operating decision maker in assessing segment performance. Effective as of the beginning of 2017, certain of the Company's global expenses that support all regional segments, including global e-commerce infrastructure and global brand merchandising, marketing and design, previously recorded centrally in the Americas segment and Corporate expenses, are now allocated to the three regional business segments and reported in operating results. Business segment information for the prior-year period has been revised to reflect the change in presentation. Business segment information for the Company is as follows: Year Ended November 25, November 26, November 27, (Dollars in thousands) Net revenues: Americas $ 3,042,664 $ 2,774,050 $ 2,683,008 Europe 1,646,236 1,312,276 1,091,362 Asia 886,540 817,704 778,369 Total net revenues $ 5,575,440 $ 4,904,030 $ 4,552,739 Operating income: Americas (1) $ 551,380 $ 529,310 $ 507,802 Europe (2) 292,903 198,662 154,829 Asia 86,573 78,257 80,862 Regional operating income 930,856 806,229 743,493 Corporate: Restructuring-related charges — — 7,195 Other corporate staff costs and expenses (3) 393,796 339,060 274,091 Corporate expenses 393,796 339,060 281,286 Total operating income 537,060 467,169 462,207 Interest expense (55,296 ) (68,603 ) (73,170 ) Loss on early extinguishment of debt — (22,793 ) — Other income (expense), net 18,258 (26,992 ) 18,223 Income before income taxes $ 500,022 $ 348,781 $ 407,260 _____________ (1) Included in Americas' operating income for the year ended November 27, 2016 is the recognition of $7.0 million benefit from resolution of a vendor dispute and related reversal of liabilities recorded in a prior period. (2) Included in Europe's operating income for the year ended November 27, 2016 is a gain of $6.1 million related to the sale-leaseback of the Company's distribution center in the United Kingdom in the second quarter of 2016. (3) Included in Corporate expenses for the year ended November 26, 2017 is the recognition of $8.3 million of stock-based compensation expense related to prior periods, for the correction of the periods used for the recognition of expense associated with employees eligible to vest in awards after retirement. Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Depreciation and amortization expense: Americas $ 43,478 $ 37,802 $ 30,322 Europe 22,658 17,479 12,574 Asia 10,750 9,836 8,210 Corporate 43,319 52,270 52,772 Total depreciation and amortization expense $ 120,205 $ 117,387 $ 103,878 November 25, 2018 Americas Europe Asia Unallocated Consolidated Total (Dollars in thousands) Assets: Trade receivables, net $ 362,825 $ 102,989 $ 54,266 $ 14,084 $ 534,164 Inventories 468,258 188,430 148,335 78,750 883,773 All other assets — — — 2,124,723 2,124,723 Total assets $ 3,542,660 November 26, 2017 Americas Europe Asia Unallocated Consolidated Total (Dollars in thousands) Assets: Trade receivables, net $ 322,712 $ 99,807 $ 52,029 $ 10,937 $ 485,485 Inventories 402,151 162,391 118,852 76,002 759,396 All other assets — — — 2,112,957 2,112,957 Total assets (1) $ 3,357,838 (1) Certain insignificant amounts on the consolidated balance sheet from the year ended November 26, 2017 have been conformed to the November 25, 2018 presentation. Geographic information for the Company was as follows: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Net revenues: United States $ 2,546,907 $ 2,347,860 $ 2,302,668 Foreign countries 3,028,533 2,556,170 2,250,071 Total net revenues $ 5,575,440 $ 4,904,030 $ 4,552,739 Net deferred tax assets: United States $ 313,644 $ 450,270 $ 444,295 Foreign countries 84,147 87,653 78,806 Total net deferred tax assets $ 397,791 $ 537,923 $ 523,101 Long-lived assets: United States $ 335,705 $ 312,656 $ 311,358 Foreign countries 154,767 141,660 108,332 Total long-lived assets $ 490,472 $ 454,316 $ 419,690 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Nov. 25, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Set forth below are the consolidated statements of operations for the first, second, third and fourth quarters of 2018 and 2017 . Year Ended November 25, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands) Net revenues $ 1,343,685 $ 1,245,742 $ 1,394,153 $ 1,591,860 Cost of goods sold 605,561 574,865 652,591 744,448 Gross profit 738,124 670,877 741,562 847,412 Selling, general and administrative expenses 564,025 594,353 582,953 719,584 Operating income 174,099 76,524 158,609 127,828 Interest expense (15,497 ) (14,465 ) (15,697 ) (9,637 ) Other (expense) income, net (9,577 ) 13,653 (3,032 ) 17,214 Income before income taxes 149,025 75,712 139,880 135,405 Income tax expense (benefit) 167,654 (1,320 ) 10,299 38,145 Net (loss) income (18,629 ) 77,032 129,581 97,260 Net (income) loss attributable to noncontrolling interest (383 ) (2,100 ) 543 (162 ) Net (loss) income attributable to Levi Strauss & Co. $ (19,012 ) $ 74,932 $ 130,124 $ 97,098 Year Ended November 26, 2017 First Quarter Second Quarter Third Fourth Quarter (Dollars in thousands) Net revenues $ 1,101,991 $ 1,067,855 $ 1,268,391 $ 1,465,793 Cost of goods sold 537,438 509,463 611,762 682,638 Gross profit 564,553 558,392 656,629 783,155 Selling, general and administrative expenses 456,213 495,741 510,309 633,297 Operating income 108,340 62,651 146,320 149,858 Interest expense (19,934 ) (17,895 ) (14,476 ) (16,298 ) Loss on early extinguishment of debt — (22,793 ) — — Other income (expense), net 408 (18,087 ) (14,734 ) 5,421 Income before income taxes 88,814 3,876 117,110 138,981 Income tax expense (benefit) 28,693 (13,847 ) 27,631 21,748 Net income 60,121 17,723 89,479 117,233 Net loss (income) attributable to noncontrolling interest 22 (207 ) (1,487 ) (1,481 ) Net income attributable to Levi Strauss & Co. $ 60,143 $ 17,516 $ 87,992 $ 115,752 _____________ (1) The third quarter of 2017 includes an out-of-period adjustment which increased selling, general and administrative expenses by $9.5 million and decreased net income by $5.8 million . This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest in awards after retirement. |
Schedule II_ Valuation and Qua
Schedule II: Valuation and Qualifying Acounts | 12 Months Ended |
Nov. 25, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II LEVI STRAUSS & CO. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts Balance at Beginning of Period Additions Charged to Expenses Deductions (1) Balance at End of Period (Dollars in thousands) November 25, 2018 $ 11,726 $ 2,284 $ 3,973 $ 10,037 November 26, 2017 $ 11,974 $ 1,645 $ 1,893 $ 11,726 November 27, 2016 $ 11,025 $ 2,195 $ 1,246 $ 11,974 Sales Returns Balance at Beginning of Period Additions Charged to Net Sales Deductions (1) Balance at End of Period (Dollars in thousands) November 25, 2018 $ 47,401 $ 245,665 $ 239,382 $ 53,684 November 26, 2017 $ 36,457 $ 211,741 $ 200,797 $ 47,401 November 27, 2016 $ 34,021 $ 195,718 $ 193,282 $ 36,457 Sales Discounts and Incentives Balance at Beginning of Period Additions Charged to Net Sales Deductions (1) Balance at End of Period (Dollars in thousands) November 25, 2018 $ 135,139 $ 357,929 $ 372,364 $ 120,704 November 26, 2017 $ 105,477 $ 342,169 $ 312,507 $ 135,139 November 27, 2016 $ 86,274 $ 325,843 $ 306,640 $ 105,477 Valuation Allowance Against Deferred Tax Assets Balance at Beginning of Period Charges/(Releases) to Tax Expense (Additions) / Deductions Balance at End of Period (Dollars in thousands) November 25, 2018 $ 38,692 $ (16,242 ) $ 480 $ 21,970 November 26, 2017 $ 68,212 $ (19,301 ) $ 10,219 $ 38,692 November 27, 2016 $ 75,753 $ (2,514 ) $ 5,027 $ 68,212 _____________ (1) The charges to the accounts are for the purposes for which the allowances were created. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 25, 2018 | |
Accounting Policies [Abstract] | |
Basis of accounting | The 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"). All significant intercompany balances and transactions have been eliminated. The Company is privately held primarily by descendants of the family of its founder, Levi Strauss, and their relatives. |
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. Fiscal years 2018 , 2017 and 2016 were 52 -week years, ending on November 25, 2018 , November 26, 2017 and November 27, 2016 , respectively. Each quarter of fiscal years 2018 , 2017 and 2016 consisted of 13 weeks. All references to years relate to fiscal years rather than calendar years. |
Subsequent events | Subsequent events have been evaluated through the issuance date of these financial statements. |
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. |
Cash and cash equivalents | The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at fair value. |
Accounts receivable, net | The Company extends credit to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. The Company estimates the allowance for doubtful accounts based upon an analysis of the aging of accounts receivable at the date of the consolidated financial statements, assessments of collectability based on historic trends, customer-specific circumstances, and an evaluation of economic conditions. Actual write-off of receivables may differ from estimates due to changes in customer and economic circumstances. |
Inventory valuation | The Company values inventories at the lower of cost or net realizable value. Inventory cost is determined using the first-in first-out method. The Company includes product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating its remaining manufacturing facilities, including the related depreciation expense, in the cost of inventories. The Company estimates quantities of slow-moving and obsolete inventory, by reviewing on-hand quantities, outstanding purchase obligations and forecasted sales. The Company determines inventory net realizable value by estimating expected selling prices based on the Company's historical recovery rates for slow-moving and obsolete inventory and other factors, such as market conditions, expected channel of distribution and current consumer preferences. |
Income tax assets and liabilities | Significant judgment is required in determining the Company's worldwide income tax provision. In the ordinary course of a global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise from examinations in various jurisdictions and assumptions and estimates used in evaluating the need for valuation allowances. The Tax Cuts and Jobs Act (the "Tax Act") was enacted in the United States on December 22, 2017 and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% and a deemed repatriation of foreign earnings. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring the Company's U.S. deferred tax assets and liabilities and reassessing the net realizability of the Company's deferred tax assets and liabilities. The Company has completed its analysis and accounting with respect to these items. However, changes in law, interpretations, and facts may result in adjustments to these amounts. The Company is subject to income taxes in both the United States and numerous foreign jurisdictions. The Company computes its provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carryforwards. All deferred income taxes are classified as non-current on the Company's consolidated balance sheets. Deferred tax assets and liabilities are measured using the currently enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. Significant judgments are required in order to determine the realizability of these deferred tax assets. In assessing the need for a valuation allowance, the Company's management evaluates all significant available positive and negative evidence, including historical operating results, estimates of future taxable income and the existence of prudent and feasible tax planning strategies. The Company continuously reviews issues raised in connection with all ongoing examinations and open tax years to evaluate the adequacy of its tax liabilities. The Company evaluates uncertain tax positions under a two-step approach. The first step is to evaluate the uncertain tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination based on its technical merits. The second step, for those positions that meet the recognition criteria, is to measure the tax benefit as the largest amount that is more than fifty percent likely to be realized. The Company believes that its recorded tax liabilities are adequate to cover all open tax years based on its assessment. This assessment relies on estimates and assumptions and involves significant judgments about future events. To the extent that the Company's view as to the outcome of these matters change, the Company will adjust income tax expense in the period in which such determination is made. The Company classifies interest and penalties related to income taxes as income tax expense. |
Property, plant and equipment | Property, plant and equipment are carried at cost, less accumulated depreciation. The cost is depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs relating to internal-use software development are capitalized when incurred during the application development phase. Buildings are depreciated over 20 to 40 years, and leasehold improvements are depreciated over the lesser of the life of the improvement or the initial lease term. Buildings and leasehold improvements includes build-to-suit assets related to the construction of a building or leasehold improvement (generally on property owned by the landlord) when the Company concludes it has substantially all of the risks of ownership during construction of a leased property and therefore is deemed the owner of the project. Accordingly, the Company recorded an asset representing the total costs of the buildings and improvements, including the costs paid by the lessor (the legal owner of the buildings), with corresponding liabilities. Upon completion of construction of each building, the Company did not meet the sale-leaseback criteria for de-recognition of the building assets and liabilities. Therefore the leases are accounted for as lease financing obligations. See Note 13 "Commitments and Contingencies". The related financing obligation is recorded in "other long-term liabilities". Machinery and equipment includes furniture and fixtures, automobiles and trucks, and networking communication equipment, and is depreciated over a range from three to 20 years. Capitalized internal-use software is depreciated over periods ranging from three to seven years. |
Goodwill and Intangible Assets | Goodwill resulted primarily from a 1985 acquisition of the Company by Levi Strauss Associates Inc., a former parent company that was subsequently merged into the Company in 1996, and the Company's 2009 acquisitions. Goodwill is not amortized. Intangible assets are comprised of owned trademarks with indefinite useful lives which are not being amortized and acquired contractual rights. Impairment The Company reviews its goodwill and other non-amortized intangible assets for impairment annually in the fourth quarter of its fiscal year, or more frequently as warranted by events or changes in circumstances which indicate that the carrying amount may not be recoverable. The Company qualitatively assesses goodwill and non-amortized intangible assets to determine whether it is more likely than not that the fair value of a reporting unit or other non-amortized intangible asset is less than its carrying amount. During fiscal year 2018 , the Company performed this analysis by examining key events and circumstances affecting fair value and determined it is more likely than not that the reporting unit's fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s goodwill or other non-amortized intangible asset for impairment. If goodwill is not qualitatively assessed or if goodwill is qualitatively assessed and it is determined it is not more likely than not that the reporting unit's fair value is greater than its carrying amount, a two-step quantitative approach is utilized. In the first step, the Company compares the carrying value of the reporting unit or applicable asset to its fair value, which the Company estimates using a discounted cash flow analysis or by comparison with the market values of similar assets. If the carrying amount of the reporting unit or asset exceeds its estimated fair value, the Company performs the second step, and determines the impairment loss, if any, as the excess of the carrying value of the goodwill or intangible asset over its fair value. The Company reviews its other long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the expected future undiscounted cash flows, the Company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. To determine the fair value of impaired assets, the Company utilizes the valuation technique or techniques deemed most appropriate based on the nature of the impaired asset and the data available, which may include the use of quoted market prices, prices for similar assets or other valuation techniques such as discounted future cash flows or earnings. |
Debt issuance costs | The Company capitalizes debt issuance costs on its senior revolving credit facility, which are included in "Other non-current assets" on the Company's consolidated balance sheets. Capitalized debt issuance costs on the Company's unsecured long-term debt are presented as a reduction to the debt outstanding on the Company's consolidated balance sheets. The unsecured long-term debt issuance costs are generally amortized utilizing the effective interest method whereas the senior revolving credit facility issuance costs are amortized utilizing the straight-line method. Amortization of debt issuance costs is included in "Interest expense" in the consolidated statements of income. |
Deferred rent | The Company is obligated under operating leases of property for manufacturing, finishing and distribution facilities, office space, retail stores and equipment. Rental expense relating to operating leases are recognized on a straight-line basis over the lease term after consideration of lease incentives and scheduled rent escalations beginning as of the date the Company takes physical possession or control of the property. Differences between rental expense and actual rental payments are recorded as deferred rent liabilities included in "Other accrued liabilities" and "Other long-term liabilities" on the consolidated balance sheets. |
Fair value of financial instruments | The fair values of the Company's financial instruments reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value estimates presented in these financial statements are based on information available to the Company as of November 25, 2018 and November 26, 2017 . The carrying values of cash and cash equivalents, trade receivables and short-term borrowings approximate fair value since they are short term in nature. The Company has estimated the fair value of its other financial instruments using the market and income approaches. Rabbi trust assets and forward foreign exchange contracts are carried at their fair values. The Company's debt instruments are carried at historical cost and adjusted for amortization of premiums, discounts, or deferred financing costs, foreign currency fluctuations and principal payments. |
Pension and postretirement benefits | The Company has several non-contributory defined benefit retirement plans covering eligible employees. The Company also provides certain health care benefits for U.S. employees who meet age, participation and length of service requirements at retirement. In addition, the Company sponsors other retirement or post-employment plans for its foreign employees in accordance with local government programs and requirements. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations. The Company recognizes either an asset or a liability for any plan's funded status in its consolidated balance sheets. The Company measures changes in funded status using actuarial models which utilize an attribution approach that generally spreads individual events over the estimated service lives of the remaining employees in the plan. For plans where participants will not earn additional benefits by rendering future service, which includes the Company's U.S. plans, individual events are spread over the plan participants' estimated remaining lives. The Company's policy is to fund its retirement plans based upon actuarial recommendations and in accordance with applicable laws, income tax regulations and credit agreements. Net pension and postretirement benefit income or expense is generally determined using assumptions which include expected long-term rates of return on plan assets, discount rates, compensation rate increases and medical and mortality trend rates. The Company considers several factors including historical rates, expected rates and external data to determine the assumptions used in the actuarial models. |
Employee incentive compensation | The Company maintains short-term and long-term employee incentive compensation plans. Provisions for employee incentive compensation are recorded in "Accrued salaries, wages and employee benefits" and "Long-term employee related benefits" on the Company's consolidated balance sheets. The Company accrues the related compensation expense over the period of the plan and changes in the liabilities for these incentive plans generally correlate with the Company's financial results and projected future financial performance. |
Stock-based compensation | The Company has stock-based incentive plans which allow for the issuance of cash or equity-settled awards to certain employees and non-employee directors. The Company recognizes stock-based compensation expense for share-based awards that are classified as equity based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. The cash-settled awards are classified as liabilities and stock-based compensation expense is measured using fair value at the end of each reporting period until settlement. The Company's common stock is not listed on any established stock exchange. Accordingly, the stock's fair value on the grant date is established by the Company's board of directors (the "Board") based on factors including the most recent valuation conducted by a third-party valuation firm. For each reporting period, the common stock's fair value is estimated based upon an internally derived valuation consistent with the valuation methodology employed on the grant date. Determining the fair value of the Company's stock requires complex judgments. The valuation process includes comparison of the Company's historical and estimated future financial results with selected publicly-traded companies and application of a discount for the illiquidity of the stock to derive the fair value of the stock. The Company uses this valuation for, among other things, making determinations under its stock-based compensation plans, such as the grant date fair value, redemption and intrinsic value of the awards. For stock appreciation rights that are classified as equity, the Company uses the Black-Scholes valuation model to estimate the grant date fair value, unless the awards are subject to a market condition, in which case the Company uses a Monte Carlo simulation valuation model. The grant date fair value of equity-classified restricted stock units that are not subject to a market condition, is based on the fair value of the Company's common stock on the date of grant, adjusted to reflect the absence of dividends for those awards that are not entitled to dividend equivalents. For restricted stock units that include a market condition, the Company uses a Monte Carlo simulation valuation model to estimate the grant date fair value. For share-based awards that are classified as liabilities, the fair value of the awards is estimated using the intrinsic value method, which is based on the Company's common stock fair value on each measurement date. The Black-Scholes option pricing model and the Monte Carlo simulation model require the input of highly subjective assumptions including volatility. Due to the fact that the Company's common stock is not publicly traded, the computation of expected volatility is based on the average of the historical and implied volatilities over the expected life of the awards, of a representative peer group of publicly-traded entities. Other assumptions include expected life, risk-free rate of interest and dividend yield. For equity awards with a service condition, the expected life is derived based on historical experience and expected future post-vesting termination and exercise patterns. For equity awards with a performance condition, the expected life is computed using the simplified method until historical experience is available. The risk-free interest rate is based on zero coupon U.S. Treasury bond rates corresponding to the expected life of the awards. Dividend assumptions are based on historical experience. Due to the job function of the award recipients, the Company has included stock-based compensation cost in "Selling, general and administrative expenses" in the consolidated statements of income. |
Self-insurance | Up to certain limits, the Company self-insures various loss exposures primarily relating to workers' compensation risk and employee and eligible retiree medical health benefits. The Company carries insurance policies covering claim exposures which exceed predefined amounts, per occurrence and/or in the aggregate. Accruals for losses are made based on the Company's claims experience and actuarial assumptions followed in the insurance industry, including provisions for incurred but not reported losses. |
Derivative financial instruments and hedging activities | The Company recognizes all derivatives as assets and liabilities at their fair values, which are included in "Other current assets", "Other non-current assets", "Other accrued liabilities" or "Other long-term liabilities" on the Company's consolidated balance sheets. The Company uses derivatives to manage exposures that are sensitive to changes in market conditions, such as foreign currency risk. Additionally, some of the Company's contracts contain provisions that are accounted for as embedded derivative instruments. The Company does not designate its derivative instruments for hedge accounting; changes in the fair values of these instruments are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The non-derivative instruments the Company designates and that qualify for hedge accounting treatment hedge the Company's net investment position in certain of its foreign subsidiaries. For these instruments, the Company documents the hedge designation by identifying the hedging instrument, the nature of the risk being hedged and the approach for measuring hedge effectiveness. The ineffective portions of these hedges are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The effective portions of these hedges are recorded in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets and are not reclassified to earnings until the related net investment position has been liquidated. |
Foreign currency | The functional currency for most of the Company's foreign operations is the applicable local currency. For those operations, assets and liabilities are translated into U.S. Dollars using period-end exchange rates; income and expenses are translated at average monthly exchange rates; and equity accounts are translated at historical rates. Net changes resulting from such translations are recorded as a component of translation adjustments in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets. Foreign currency transactions are transactions denominated in a currency other than the entity's functional currency. At each balance sheet date, each entity remeasures the recorded balances related to foreign-currency transactions using the period-end exchange rate. Unrealized gains or losses arising from the remeasurement of these balances are recorded in "Other income (expense), net" in the Company's consolidated statements of income. In addition, at the settlement date of foreign currency transactions, the realized foreign currency gains or losses are recorded in "Other income (expense), net" in the Company's consolidated statements of income to reflect the difference between the rate effective at the settlement date and the historical rate at which the transaction was originally recorded. |
Revenue recognition | Net sales is primarily comprised of sales of products to wholesale customers, including franchised stores, and direct sales to consumers at the Company's company-operated and e-commerce stores and at the Company's company-operated shop-in-shops located within department stores. The Company recognizes revenue on sales of products when the goods are shipped or delivered and title to the goods passes to the customer provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectibility is reasonably assured. The revenue is recorded net of an allowance for estimated returns, discounts and retailer promotions and other similar incentives. Licensing revenues from the use of the Company's trademarks in connection with the manufacturing, advertising, and distribution of trademarked products by third-party licensees are earned and recognized as products are sold by licensees based on royalty rates set forth in the licensing agreements. The Company recognizes allowances for estimated returns in the period in which the related sale is recorded. The Company recognizes allowances for estimated discounts, retailer promotions and other similar incentives at the later of the period in which the related sale is recorded or the period in which the sales incentive is offered to the customer. The Company estimates non-volume based allowances based on historical rates as well as customer and product-specific circumstances. Sales and value-added taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Company's consolidated statements of income. Net sales to the Company's ten largest customers totaled 27% , 28% and 30% of net revenues for 2018 , 2017 and 2016 , respectively. No customer represented 10% or more of net revenues in any of these years. |
Cost goods sold | Cost of goods sold includes the expenses incurred to acquire and produce inventory for sale, including product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating the Company's remaining manufacturing facilities, including the related depreciation expense. |
Selling, general and administrative expenses | Selling, general and administrative expenses ("SG&A") are primarily comprised of costs relating to advertising, marketing, selling, distribution, information technology and other corporate functions. Selling costs include, among other things, all occupancy costs associated with company-operated stores and with the Company's company-operated shop-in-shops located within department stores. The Company expenses advertising costs as incurred. For 2018 , 2017 and 2016 , total advertising expense was $400.3 million , $323.3 million and $284.0 million , respectively. Distribution costs include costs related to receiving and inspection at distribution centers, warehousing, shipping to the Company's customers, handling and certain other activities associated with the Company's distribution network. These expenses totaled $208.8 million , $173.4 million , and $168.3 million for 2018 , 2017 and 2016 , respectively. |
Recently issued accounting standards | First Quarter of 2019 • In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of net periodic benefit costs requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, expected return on plan assets, amortization of prior service costs or credits, curtailments and settlements, actuarial gains and losses, etc.). Accordingly, the Company determined this will impact the Company's Consolidated Statements of Income, as the service cost components of net periodic benefit costs will be reported within operating income and the other components of net periodic benefit costs will be reported in the Other Income (Expense), Net line item. The presentation change in the Consolidated Statements of Income requires application on a retrospective basis. A practical expedient is permitted under the guidance which allows the Company to use information previously disclosed in the pension and other postretirement benefit plans footnote as the basis to apply the retrospective presentation requirements. • In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting . ASU 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The Company determined the adoption of this standard does not have a material impact on its consolidated financial statements. • In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. Under the new standard and its related amendments (collectively known as Accounting Standards Codification 606 ("ASC 606")), an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. Enhanced disclosures will be required regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has established an implementation team to assist with its assessment of the impact that the new standard will have on its processes and controls, consolidated financial statements and related disclosures. This includes a review of current accounting policies and practices to identify potential differences that would result from applying ASC 606. The Company has identified its major revenue streams as sales of products to wholesale customers, including franchised stores, direct sales to consumers at company-operated stores, including e-commerce, and company-operated shop-in-shops, and performed an analysis of its contracts with customers to evaluate the impact ASC 606 will have on the timing and classification of revenue. The majority of the Company's revenue relates to product sales of which revenue is recognized when products are shipped or delivered to the customer or provided directly to consumers through retail locations. In addition, impacts associated with variable consideration received for items such as loyalty rewards, gift cards, discounts and retailer promotions are not material as the Company is currently accounting for this consideration consistent with the new standard. The Company has identified certain changes in balance sheet classification under ASC 606. Allowances for estimated returns, discounts and retailer promotions and other similar incentives will be presented as other accrued liabilities rather than netted within accounts receivable and the estimated cost of inventory associated with allowances for estimated returns will be included as other current assets rather than inventories. The Company will be adopting the standard as of November 26, 2018 using the modified retrospective approach and determined there is no impact to retained earnings upon adoption. • In March 2016, the FASB issued ASU No. 2016-04, Liabilities - Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products which aligns recognition of prepaid stored-value product financial liabilities (for example, prepaid gift cards), with Topic 606, Revenues from Contracts with Customers , for non-financial liabilities. In general, certain of these liabilities may be extinguished proportionally in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. The Company determined the adoption of this standard will not have a material impact on its consolidated financial statements. • In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires that the income tax consequences of an intra-entity transfer of an asset other than inventory be recorded when the transfer occurs. Under this guidance, current income taxes and deferred income taxes will move when assets (such as intellectual property and property, plant and equipment) are transferred between consolidated subsidiaries. The Company determined the adoption of this standard will not have a material impact on its consolidated financial statements. • In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company determined the adoption of this standard will not have a material impact on its consolidated financial statements. First Quarter of 2020 • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for operating or financing lease arrangements exceeding a 12-month term, a right-of-use asset and a lease obligation will be recognized on the balance sheet of the lessee while the income statement will reflect lease expense for operating leases and amortization and interest expense for financing leases. The Company is in the process of gathering information to evaluate real estate, personal property, and other arrangements that may meet the definition of a lease. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics, including permitted transition methods. Given the significant number of leases, the Company anticipates the new guidance will have a material impact on the consolidated balance sheets. • In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 refines and expands hedge accounting for both financial and commodity risks. This ASU creates more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. In addition, this ASU makes certain targeted improvements to simplify the application of hedge accounting guidance. The Company expects to adopt this standard in the first quarter of 2019. • In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) . ASU 2018-02 addresses the effect of the change in the U.S. federal corporate tax rate due to the enactment of the December 22, 2017 Tax Act on items within accumulated other comprehensive income (loss). The guidance will be effective for the Company in the first quarter of fiscal 2020 with early adoption permitted. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. First Quarter of 2021 • In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates the two-step process that required identification of potential impairment and a separate measure of the actual impairment. The annual assessment of goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. • In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software (and hosting arrangements that include an internal-use software license). The guidance provides criteria for determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The capitalized implementation costs are required to be expensed over the term of the hosting arrangement. The guidance also clarifies the presentation requirements for reporting such costs in the entity’s financial statements. Early adoption is permitted. The Company is currently evaluating the impact that adopting this new accounting standard will have on its consolidated financial statements and related disclosures. Fourth Quarter of 2021 • In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20). ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Early adoption is permitted. The Company is currently evaluating the impact that adopting this new accounting standard will have on its related disclosures. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of property, plant and equipment ("PP&E") were as follows: November 25, 2018 November 26, 2017 (Dollars in thousands) Land $ 8,197 $ 8,239 Buildings and leasehold improvements 466,256 422,168 Machinery and equipment 471,015 452,950 Capitalized internal-use software 453,943 450,558 Construction in progress 35,408 41,797 Subtotal 1,434,819 1,375,712 Accumulated depreciation (974,206 ) (951,249 ) PP&E, net $ 460,613 $ 424,463 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill | The changes in the carrying amount of goodwill by business segment for the years ended November 25, 2018 and November 26, 2017 , were as follows: Americas Europe Asia Total (Dollars in thousands) Balance, November 27, 2016 $ 207,723 $ 25,341 $ 1,216 $ 234,280 Foreign currency fluctuation 42 2,983 22 3,047 Balance, November 26, 2017 207,765 28,324 1,238 237,327 Foreign currency fluctuation (34 ) (1,060 ) 13 (1,081 ) Balance, November 25, 2018 $ 207,731 $ 27,264 $ 1,251 $ 236,246 |
Other intangible assets | Other intangible assets, net, were as follows: November 25, 2018 November 26, 2017 Gross Carrying Value Accumulated Amortization Total Gross Carrying Value Accumulated Amortization Total (Dollars in thousands) Non-amortized intangible assets: Trademarks $ 42,743 $ — $ 42,743 $ 42,743 $ — $ 42,743 Amortized intangible assets: Acquired contractual rights 462 (370 ) 92 480 (330 ) 150 Total $ 43,205 $ (370 ) $ 42,835 $ 43,223 $ (330 ) $ 42,893 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
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: November 25, 2018 November 26, 2017 Fair Value Estimated Using Fair Value Estimated Using Fair Value Level 1 Inputs (1) Level 2 Inputs (2) Fair Value Level 1 Inputs (1) Level 2 Inputs (2) (Dollars in thousands) Financial assets carried at fair value Rabbi trust assets $ 34,385 $ 34,385 $ — $ 31,139 $ 31,139 $ — Forward foreign exchange contracts (3) 18,372 — 18,372 6,296 — 6,296 Total $ 52,757 $ 34,385 $ 18,372 $ 37,435 $ 31,139 $ 6,296 Financial liabilities carried at fair value Forward foreign exchange contracts (3) $ 4,447 $ — $ 4,447 $ 23,799 $ — $ 23,799 _____________ (1) Fair values estimated using Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities. See Note 12 for more information on rabbi trust assets. (2) Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3) The Company’s over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Effective as of the first quarter of 2018, the Company recorded and presented the fair values of derivative over-the-counter forward foreign exchange contracts on a gross basis in its consolidated balance sheets, including those subject to master netting arrangements. The comparative period was revised to reflect the change from a net basis to a gross basis. |
Financial liabilities carried at adjusted historical cost | The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost: November 25, 2018 November 26, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1) $ 487,272 $ 478,774 $ 485,419 $ 507,185 3.375% senior notes due 2027 (1)(2) 538,219 546,238 559,037 590,266 Short-term borrowings 32,470 32,470 38,727 38,727 Total $ 1,057,961 $ 1,057,482 $ 1,083,183 $ 1,136,178 _____________ (1) Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. (2) On February 28, 2017, the Company issued €475 million in aggregate principal amount of 3.375% senior notes due 2027. On March 3, 2017, the Company completed a cash tender offer for $370.3 million of the 6.875% senior notes due 2022 and the remaining $154.7 million was called on March 31, 2017 for redemption on May 1, 2017. See Note 6 for additional information. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying values of derivative instruments and non-derivative instruments | The table below provides data about the carrying values of derivative instruments and non-derivative instruments: November 25, 2018 November 26, 2017 Assets (Liabilities) Derivative Net Carrying Value Assets (Liabilities) Derivative Net Carrying Value Carrying Value Carrying Value Carrying Value Carrying Value (Dollars in thousands) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 18,372 $ — $ 18,372 $ 6,296 $ — $ 6,296 Forward foreign exchange contracts (2) — (4,447 ) (4,447 ) — (23,799 ) (23,799 ) Total $ 18,372 $ (4,447 ) $ 6,296 $ (23,799 ) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (541,500 ) $ — $ (562,780 ) _____________ (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 table below presents the gross and net amounts of these contracts recognized on the Company's consolidated balance sheets by type of financial instrument: November 25, 2018 November 26, 2017 Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amount of Assets / (Liabilities) Gross Amounts of Assets / (Liabilities) Presented in the Balance Sheet Gross Amounts Not Offset in the Balance Sheet Net Amount of Assets / (Liabilities) (Dollars in thousands) Over-the-counter forward foreign exchange contracts Financial assets $ 16,417 $ (1,756 ) $ 14,661 $ 3,218 $ (3,146 ) $ 72 Financial liabilities (2,181 ) 1,756 (425 ) (20,876 ) 3,146 (17,730 ) Total $ 14,236 $ (17,658 ) Embedded derivative contracts Financial assets $ 1,955 $ — $ 1,955 $ 3,078 $ — $ 3,078 Financial liabilities (2,266 ) — (2,266 ) (2,923 ) — (2,923 ) Total $ (311 ) $ 155 |
Gains and losses included in AOCI | The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets, and in "Other income (expense), net" in the Company’s consolidated statements of income: Gain or (Loss) Recognized in AOCI (Effective Portion) Gain or (Loss) Recognized in Other Income (Expense), Net (Ineffective Portion and Amount Excluded from Effectiveness Testing) As of As of Year Ended November 25, November 26, November 25, November 26, November 27, (Dollars in thousands) Forward foreign exchange contracts $ 4,637 $ 4,637 Yen-denominated Eurobonds (19,811 ) (19,811 ) $ — $ — $ 2,627 Euro-denominated senior notes (54,416 ) (75,697 ) — — — Cumulative income taxes 29,703 35,253 Total $ (39,887 ) $ (55,618 ) |
Gains and losses included in statements of income | The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in "Other income (expense), net" in the Company’s consolidated statements of income: Year Ended November 25, November 26, November 27, (Dollars in thousands) Forward foreign exchange contracts: Realized (loss) gain $ (19,974 ) $ (5,773 ) $ 17,175 Unrealized gain (loss) (1) 31,141 (35,394 ) (1,315 ) Total $ 11,167 $ (41,167 ) $ 15,860 _____________ (1) The unrealized gain in 2018 is primarily driven by gains on contracts to sell the Euro, the Mexican Peso and the British Pound, as a result of the U.S. Dollar strengthening at year end. The unrealized loss in 2017 is primarily driven by losses on contracts to sell the Mexican Peso, the Euro and the British Pound, as a result of the U.S. Dollar weakening at year end. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term and short-term debt instruments | The following table presents the Company's debt: November 25, November 26, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 $ 485,605 $ 483,683 3.375% senior notes due 2027 534,614 555,177 Total long-term debt $ 1,020,219 $ 1,038,860 Short-term debt Short-term borrowings 31,935 38,451 Total debt $ 1,052,154 $ 1,077,311 |
Principal payments on short-term and long-term debt | The table below sets forth, as of November 25, 2018 , the Company's required aggregate short-term and long-term debt principal payments (inclusive of premium and discount): (Dollars in thousands) 2019 $ 31,935 2020 — 2021 — 2022 — 2023 — Thereafter 1,031,866 Total future debt principal payments $ 1,063,801 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of benefit obligations in excess of fair value of plan assets | The following tables summarize activity of the Company's defined benefit pension plans and postretirement benefit plans: Pension Benefits Postretirement Benefits 2018 2017 2018 2017 (Dollars in thousands) Change in benefit obligation: Benefit obligation at beginning of year $ 1,243,852 $ 1,191,934 $ 98,675 $ 112,451 Service cost (1) 3,602 3,427 113 172 Interest cost 36,070 36,853 2,718 3,148 Plan participants' contribution 570 570 4,105 4,376 Actuarial (gain) loss (1)(2) (69,602 ) 65,669 (6,353 ) (5,516 ) Net curtailment loss 113 132 — — Impact of foreign currency changes (6,983 ) 15,545 — — Plan settlements (63 ) (410 ) — — Net benefits paid (70,839 ) (69,868 ) (16,351 ) (15,956 ) Benefit obligation at end of year $ 1,136,720 $ 1,243,852 $ 82,907 $ 98,675 Change in plan assets: Fair value of plan assets at beginning of year 948,706 837,322 — — Actual (loss) return on plan assets (3) (36,468 ) 117,188 — — Employer contribution (4) 122,492 52,386 12,246 11,580 Plan participants' contributions 570 570 4,105 4,376 Plan settlements (63 ) (410 ) — — Impact of foreign currency changes (5,822 ) 11,518 — — Net benefits paid (70,839 ) (69,868 ) (16,351 ) (15,956 ) Fair value of plan assets at end of year 958,576 948,706 — — Unfunded status at end of year $ (178,144 ) $ (295,146 ) $ (82,907 ) $ (98,675 ) _____________ (1) Classification of service cost and actuarial loss related to U.S. and U.K. pension plans for 2017 have been conformed to the 2018 presentation. (2) 2018 actuarial gains and 2017 actuarial losses in the Company's pension benefit plans resulted from changes in discount rate assumptions. Changes in financial markets during 2018 including an increase in corporate bond yield indices, resulted in a decrease in benefit obligations. Changes in financial markets during 2017 including a decrease in corporate bond yield indices, resulted in an increase in benefit obligations. (3) The decrease in return on plan assets in the Company's pension benefit plans in 2018 was primarily due to worse-than-expected asset performance of U.S. and international equity securities. (4) The increase in employer contributions to the Company's pension benefit plans is due to additional planned contributions made during the year. |
Schedule of amounts recognized in balance sheet | Amounts recognized in the Company's consolidated balance sheets as of November 25, 2018 and November 26, 2017 , consist of the following: Pension Benefits Postretirement Benefits 2018 2017 2018 2017 (Dollars in thousands) Unfunded status recognized on the balance sheet: Prepaid benefit cost $ 22,738 $ 24,644 $ — $ — Accrued benefit liability – current portion (9,390 ) (9,316 ) (8,725 ) (9,427 ) Accrued benefit liability – long-term portion (191,491 ) (310,474 ) (74,182 ) (89,248 ) $ (178,143 ) $ (295,146 ) $ (82,907 ) $ (98,675 ) Accumulated other comprehensive loss: Net actuarial loss $ (365,424 ) $ (362,602 ) $ (14,652 ) $ (21,878 ) Net prior service benefit 351 419 — — $ (365,073 ) $ (362,183 ) $ (14,652 ) $ (21,878 ) |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | Information for the Company's defined benefit plans with an accumulated or projected benefit obligation in excess of plan assets is as follows: Pension Benefits 2018 2017 (Dollars in thousands) Accumulated benefit obligations in excess of plan assets: Aggregate accumulated benefit obligation $ 986,084 $ 1,091,856 Aggregate fair value of plan assets 792,427 775,859 Projected benefit obligations in excess of plan assets: Aggregate projected benefit obligation $ 1,028,074 $ 1,131,873 Aggregate fair value of plan assets 827,193 812,082 |
Schedule of defined benefit plans disclosures | The components of the Company's net periodic benefit cost were as follows: Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 (Dollars in thousands) Net periodic benefit cost: Service cost (1) $ 3,602 $ 3,427 $ 2,701 $ 113 $ 172 $ 200 Interest cost 36,070 36,853 37,819 2,718 3,148 3,223 Expected return on plan assets (1) (48,830 ) (42,033 ) (42,889 ) — — — Amortization of prior service benefit (65 ) (62 ) (61 ) — — — Amortization of actuarial gain / loss 12,650 13,489 12,036 872 1,271 2,967 Curtailment (gain) loss 38 106 (140 ) — — — Net settlement (gain) loss (102 ) 126 49 — — — Net periodic benefit cost 3,363 11,906 9,515 3,703 4,591 6,390 Changes in accumulated other comprehensive loss: Actuarial loss (gain) 15,373 (9,785 ) 32,187 (6,354 ) (5,516 ) 5,556 Amortization of prior service benefit 65 62 61 — — — Amortization of actuarial gain / loss (12,650 ) (13,489 ) (12,036 ) (872 ) (1,271 ) (2,967 ) Curtailment gain — — 173 — — — Net settlement gain (loss) 102 (126 ) (49 ) — — — Total recognized in accumulated other comprehensive loss 2,890 (23,338 ) 20,336 (7,226 ) (6,787 ) 2,589 Total recognized in net periodic benefit cost and accumulated other comprehensive loss $ 6,253 $ (11,432 ) $ 29,851 $ (3,523 ) $ (2,196 ) $ 8,979 _____________ (1) Classification of service cost and expected return on plan assets related to U.S. and U.K. pension plans for 2017 and 2016 have been conformed to the 2018 presentation. |
Schedule of assumptions used | Assumptions used in accounting for the Company's benefit plans were as follows: Pension Benefits Postretirement Benefits 2018 2017 2016 2018 2017 2016 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 3.4% 3.8% 4.0% 3.4% 3.7% 3.8% Expected long-term rate of return on plan assets 5.4% 5.8% 5.9% Rate of compensation increase 3.4% 3.4% 3.4% Weighted-average assumptions used to determine benefit obligations: Discount rate 4.1% 3.4% 3.8% 4.2% 3.4% 3.7% Rate of compensation increase 3.4% 3.4% 3.4% Assumed health care cost trend rates were as follows: Health care trend rate assumed for next year 5.9% 6.3% 6.4% Rate trend to which the cost trend is assumed to decline 4.4% 4.4% 4.4% Year that rate reaches the ultimate trend rate 2037 2037 2038 |
Fair values of pension plan assets | The fair value of the Company's pension plan assets by asset class are as follows: Year Ended November 25, 2018 Asset Class Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Cash and cash equivalents $ 3,818 $ 3,818 $ — $ — Equity securities (1) U.S. large cap 91,663 — 91,663 — U.S. small cap 10,871 — 10,871 — International 86,974 — 86,974 — Fixed income securities (2) 714,034 — 714,034 — Other alternative investments Real estate (3) 35,265 — 35,265 — Private equity (4) 383 — — 383 Hedge fund (5) 11,389 — 11,389 — Other (6) 4,179 — 4,179 — Total investments at fair value $ 958,576 $ 3,818 $ 954,375 $ 383 Year Ended November 26, 2017 Asset Class Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Cash and cash equivalents $ 1,164 $ 1,164 $ — $ — Equity securities (1) U.S. large cap 209,568 — 209,568 — U.S. small cap 42,874 — 42,874 — International 141,924 — 141,924 — Fixed income securities (2) 463,617 — 463,617 — Other alternative investments Real estate (3) 69,546 — 69,546 — Private equity (4) 764 — — 764 Hedge fund (5) 14,934 — 14,934 — Other (6) 4,315 — 4,315 — Total investments at fair value $ 948,706 $ 1,164 $ 946,778 $ 764 _____________ (1) Primarily comprised of equity index funds that track various market indices. (2) Predominantly includes bond index funds that invest in long-term U.S. government and investment grade corporate bonds. (3) Primarily comprised of investments in U.S. Real Estate Investment Trusts. (4) Represents holdings in a diversified portfolio of private equity funds and direct investments in companies located primarily in North America. Fair values are determined by investment fund managers using primarily unobservable market data. (5) Primarily invested in a diversified portfolio of equities, bonds, alternatives and cash with a low tolerance for capital loss. (6) Primarily relates to accounts held and managed by a third-party insurance company for employee-participants in Belgium. Fair values are based on accumulated plan contributions plus a contractually-guaranteed return plus a share of any incremental investment fund profits. |
Schedule of expected benefit payments | The Company's estimated future benefit payments to participants, which reflect expected future service, as appropriate are anticipated to be paid as follows: Pension Benefits Postretirement Benefits Total (Dollars in thousands) 2019 $ 68,292 $ 10,413 $ 78,705 2020 67,640 9,995 77,635 2021 68,115 9,633 77,748 2022 69,933 9,172 79,105 2023 70,040 8,579 78,619 2024-2028 355,238 34,622 389,860 |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Share-based Compensation [Abstract] | |
Stock appreciation rights award activity | November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Aggregate intrinsic value of Service SARs exercised during the year $ 53,398 $ 25,572 $ 1,443 Aggregate intrinsic value of Performance SARs exercised during the year $ 6,777 $ 883 $ 986 SARs activity during the year ended November 25, 2018 was as follows: Service SARs Performance-based SARs Units Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Units Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (Units and dollars in thousands) Outstanding at November 26, 2017 2,530 $ 54.52 3.5 1,079 $ 60.52 4.1 Granted 155 96.00 — — Exercised (873 ) 42.47 (137 ) 61.92 Forfeited (25 ) 85.44 (50 ) 64.72 Performance adjustment — — 29 74.40 Outstanding at November 25, 2018 1,787 $ 63.57 3.4 921 $ 60.53 3.1 Vested and expected to vest at November 25, 2018 1,775 $ 63.48 3.4 $ 146,428 1,002 $ 60.64 3.2 $ 85,513 Exercisable at November 25, 2018 1,253 $ 59.16 2.7 $ 108,844 566 $ 59.62 2.3 $ 48,853 |
Stock appreciation rights, valuation assumptions | e weighted-average grant date fair value and corresponding weighted-average assumptions used in the Monte Carlo valuation model were as follows: Performance RSU Granted 2018 2017 Weighted-average grant date fair value $ 104.53 $ 82.33 Weighted-average assumptions: Expected life (in years) 3.0 3.0 Expected volatility 37.2 % 33.5 % Risk-free interest rate 2.3 % 1.4 % Expected dividend 2.5 % 2.7 % R The weighted-average grant date fair values and corresponding weighted-average assumptions used in the Black-Scholes option valuation model were as follows: Service SARs Granted Performance SARs Granted 2018 2017 2016 2016 Weighted-average grant date fair value $ 26.14 $ 16.13 $ 15.74 $ 15.94 Weighted-average assumptions: Expected life (in years) 4.9 4.9 4.8 5.0 Expected volatility 35.7 % 32.5 % 36.4 % 36.3 % Risk-free interest rate 2.5 % 1.9 % 1.1 % 1.1 % Expected dividend 2.5 % 2.7 % 2.5 % 2.5 % The weighted-average grant date fair value of SARs subject to market conditions was estimated using a Monte Carlo simulation model. The weighted-average grant date fair values and corresponding weighted-average assumptions used in the model were as follows: Performance SARs Granted 2016 Weighted-average grant date fair value $ 20.56 Weighted-average assumptions: Expected life (in years) 4.8 Expected volatility 36.5 % Risk-free interest rate 1.5 % Expected dividend 2.6 % |
Restricted stock units award activity | Service and Performance RSU activity during the year ended November 25, 2018 was as follows: Service RSUs Performance RSUs Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) Units Weighted-Average Fair Value Weighted-Average Remaining Contractual Life (Years) (Units in thousands) Outstanding at November 26, 2017 55 $ 69.00 2.4 109 $ 69.00 2.4 Granted 53 96.00 84 96.00 Forfeited (4 ) 96.00 (19 ) 80.72 Outstanding at November 25, 2018 104 $ 81.67 1.7 174 $ 80.75 1.4 |
Total shareholder return plan activity | Liability award activity during the year ended November 25, 2018 was as follows: Phantom Service RSUs Phantom Performance RSUs Units Weighted-Average Fair Value Fair Value At Period End Units Weighted-Average Fair Value Fair Value At Period End Outstanding at November 26, 2017 875 $ 67.88 $ 84.50 104 $ 69.30 $ 84.50 Granted 300 97.71 87 96.68 Vested (195 ) 74.47 — — Performance adjustment 9 69.06 — — Forfeited (79 ) 72.43 (20 ) 77.99 Outstanding at November 25, 2018 910 $ 75.92 $ 146.00 171 $ 82.21 $ 146.00 Expected to vest at November 25, 2018 847 $ 75.33 $ 146.00 153 $ 81.84 $ 146.00 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | At November 25, 2018 , future minimum payments under operating leases and lease financing obligations were as follows: Future Minimum Payments (Dollars in thousands) 2019 $ 215,634 2020 185,902 2021 152,512 2022 129,675 2023 98,319 Thereafter 281,482 Total future minimum lease payments $ 1,063,524 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income (loss) is summarized below: Levi Strauss & Co. Noncontrolling Interest Pension and Postretirement Benefits Translation Adjustments Unrealized Gain (Loss) on Marketable Securities Net Investment Hedges Foreign Currency Translation Total Foreign Currency Translation Totals (Dollars in thousands) Accumulated other comprehensive (loss) income at November 29, 2015 $ (236,340 ) $ (18,247 ) $ (126,359 ) $ 1,880 $ (379,066 ) $ 8,965 $ (370,101 ) Gross changes (22,925 ) (829 ) (30,848 ) 143 (54,459 ) 468 (53,991 ) Tax 7,238 319 (1,291 ) (55 ) 6,211 — 6,211 Other comprehensive income (loss), net of tax (15,687 ) (510 ) (32,139 ) 88 (48,248 ) 468 (47,780 ) Accumulated other comprehensive (loss) income at November 27, 2016 (252,027 ) (18,757 ) (158,498 ) 1,968 (427,314 ) 9,433 (417,881 ) Gross changes 30,125 (59,945 ) 40,151 3,379 13,710 105 13,815 Tax (10,279 ) 23,084 (2,283 ) (1,299 ) 9,223 — 9,223 Other comprehensive (loss) income, net of tax 19,846 (36,861 ) 37,868 2,080 22,933 105 23,038 Accumulated other comprehensive (loss) income at November 26, 2017 (232,181 ) (55,618 ) (120,630 ) 4,048 (404,381 ) 9,538 (394,843 ) Gross changes 4,336 21,280 (43,479 ) (1,488 ) (19,351 ) (234 ) (19,585 ) Tax (1,178 ) (5,549 ) 5,487 388 (852 ) — (852 ) Other comprehensive (loss) income, net of tax 3,158 15,731 (37,992 ) (1,100 ) (20,203 ) (234 ) (20,437 ) Accumulated other comprehensive (loss) income at November 25, 2018 $ (229,023 ) $ (39,887 ) $ (158,622 ) $ 2,948 $ (424,584 ) $ 9,304 $ (415,280 ) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | The following table summarizes significant components of "Other income (expense), net": Year Ended November 25, November 26, November 27, (Dollars in thousands) Foreign exchange management gains (losses) (1) $ 11,167 $ (41,167 ) $ 15,860 Foreign currency transaction (losses) gains (2) (7,498 ) 7,853 (7,166 ) Interest income 9,400 3,380 1,376 Investment income 734 629 976 Other 4,455 2,313 7,177 Total other income (expense), net $ 18,258 $ (26,992 ) $ 18,223 _____________ (1) Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Gains in 2018 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Euro and the British Pound. Losses in 2017 were primarily due to unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, the Euro and the British Pound. Gains in 2016 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso. (2) Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Gains in 2017 were primarily due to the strengthening of the Mexican Peso and Euro against the US dollar. Losses in 2016 were primarily due to the weakening of various currencies against the U.S. Dollar. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The Company's income tax expense differed from the amount computed by applying the U.S. federal statutory income tax rate of 22.4% to income before income taxes as follows: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Income tax expense at U.S. federal statutory rate $ 111,755 22.4 % $ 122,073 35.0 % $ 142,541 35.0 % State income taxes, net of U.S. federal impact 11,102 2.2 % 7,598 2.2 % 6,943 1.7 % Change in valuation allowance (9,239 ) (1.9 )% (9,624 ) (2.8 )% — — % Impact of foreign operations (21,674 ) (4.3 )% (50,650 ) (14.5 )% (28,727 ) (7.1 )% Reassessment of tax liabilities (12,552 ) (2.5 )% (5,553 ) (1.6 )% (2,387 ) (0.6 )% Stock-based compensation (1) (10,715 ) (2.1 )% (5,602 ) (1.6 )% — — % Deduction related to subsidiaries — — % — — % (6,788 ) (1.7 )% Other, including non-deductible expenses (1) 2,742 0.5 % 5,983 1.7 % 4,469 1.2 % Impact of US Tax Act 143,359 28.7 % — — % — — % Total $ 214,778 43.0 % $ 64,225 18.4 % $ 116,051 28.5 % |
Schedule of income before income tax, domestic and foreign | The U.S. and foreign components of income before income taxes were as follows: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Domestic $ 151,229 $ 67,407 $ 189,478 Foreign 348,793 281,374 217,782 Total income before income taxes $ 500,022 $ 348,781 $ 407,260 |
Schedule of components of income tax expense (benefit) | Income tax expense consisted of the following: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) U.S. Federal Current $ 12,468 $ 7,936 $ 7,122 Deferred 126,210 1,240 66,840 $ 138,678 $ 9,176 $ 73,962 U.S. State Current $ 6,447 $ 3,441 $ 2,097 Deferred 4,655 4,157 4,846 $ 11,102 $ 7,598 $ 6,943 Foreign Current $ 61,605 $ 53,334 $ 40,754 Deferred 3,393 (5,883 ) (5,608 ) $ 64,998 $ 47,451 $ 35,146 Consolidated Current $ 80,520 $ 64,711 $ 49,973 Deferred 134,258 (486 ) 66,078 Total income tax expense $ 214,778 $ 64,225 $ 116,051 |
Schedule of deferred tax assets and liabilities | The Company's deferred tax assets and deferred tax liabilities were as follows: November 25, 2018 November 26, 2017 (Dollars in thousands) Deferred tax assets Foreign tax credit carryforwards $ 133,620 $ 123,593 State net operating loss carryforwards 9,708 8,302 Foreign net operating loss carryforwards 52,327 59,157 Employee compensation and benefit plans 144,597 214,798 Advance royalties 22,366 46,757 Accrued liabilities 22,119 29,169 Sales returns and allowances 20,342 39,030 Inventory 9,985 19,553 Property, plant and equipment 11,380 8,826 Unrealized foreign exchange gains or losses 5,467 23,058 Other (1) 9,749 18,197 Total gross deferred tax assets 441,660 590,440 Less: Valuation allowance (21,970 ) (38,692 ) Deferred tax assets, net of valuation allowance 419,690 551,748 Deferred tax liabilities U.S. Branches (1) (19,107 ) (17,128 ) Residual tax liability on unremitted foreign earnings (5,737 ) — Total deferred tax liabilities (24,844 ) (17,128 ) Total net deferred tax assets $ 394,846 $ 534,620 _____________ (1) Classification of U.S. Branch deferred taxes for 2017 has been conformed to the November 25, 2018 presentation. |
Summary of valuation allowance | Valuation Allowance. The following table details the changes in valuation allowance during the year ended November 25, 2018 : Valuation Allowance at November 26, 2017 Changes in Related Gross Deferred Tax Asset Change / (Release) Valuation Allowance at November 25, 2018 (Dollars in thousands) U.S. state net operating loss carryforwards $ 1,520 $ 576 $ — $ 2,096 Foreign net operating loss carryforwards and other foreign deferred tax assets 37,172 (1,056 ) (16,242 ) 19,874 $ 38,692 $ (480 ) $ (16,242 ) $ 21,970 |
Schedule of unrecognized tax benefits roll forward | The following table reflects the changes to the Company's unrecognized tax benefits for the year ended November 25, 2018 and November 26, 2017 : November 25, November 26, (Dollars in thousands) Unrecognized tax benefits beginning balance $ 33,786 $ 29,053 Increases related to current year tax positions 3,657 4,779 Increases related to tax positions from prior years 5,686 5,625 Decreases related to tax positions from prior years (13,731 ) (4,050 ) Settlement with tax authorities — — Lapses of statutes of limitation (1,811 ) (1,956 ) Other, including foreign currency translation (993 ) 335 Unrecognized tax benefits ending balance $ 26,594 $ 33,786 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of operating profit (loss) | Business segment information for the Company is as follows: Year Ended November 25, November 26, November 27, (Dollars in thousands) Net revenues: Americas $ 3,042,664 $ 2,774,050 $ 2,683,008 Europe 1,646,236 1,312,276 1,091,362 Asia 886,540 817,704 778,369 Total net revenues $ 5,575,440 $ 4,904,030 $ 4,552,739 Operating income: Americas (1) $ 551,380 $ 529,310 $ 507,802 Europe (2) 292,903 198,662 154,829 Asia 86,573 78,257 80,862 Regional operating income 930,856 806,229 743,493 Corporate: Restructuring-related charges — — 7,195 Other corporate staff costs and expenses (3) 393,796 339,060 274,091 Corporate expenses 393,796 339,060 281,286 Total operating income 537,060 467,169 462,207 Interest expense (55,296 ) (68,603 ) (73,170 ) Loss on early extinguishment of debt — (22,793 ) — Other income (expense), net 18,258 (26,992 ) 18,223 Income before income taxes $ 500,022 $ 348,781 $ 407,260 _____________ (1) Included in Americas' operating income for the year ended November 27, 2016 is the recognition of $7.0 million benefit from resolution of a vendor dispute and related reversal of liabilities recorded in a prior period. (2) Included in Europe's operating income for the year ended November 27, 2016 is a gain of $6.1 million related to the sale-leaseback of the Company's distribution center in the United Kingdom in the second quarter of 2016. (3) Included in Corporate expenses for the year ended November 26, 2017 is the recognition of $8.3 million of stock-based compensation expense related to prior periods, for the correction of the periods used for the recognition of expense associated with employees eligible to vest in awards after retirement. Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Depreciation and amortization expense: Americas $ 43,478 $ 37,802 $ 30,322 Europe 22,658 17,479 12,574 Asia 10,750 9,836 8,210 Corporate 43,319 52,270 52,772 Total depreciation and amortization expense $ 120,205 $ 117,387 $ 103,878 |
Reconciliation of other significant reconciling items | Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Depreciation and amortization expense: Americas $ 43,478 $ 37,802 $ 30,322 Europe 22,658 17,479 12,574 Asia 10,750 9,836 8,210 Corporate 43,319 52,270 52,772 Total depreciation and amortization expense $ 120,205 $ 117,387 $ 103,878 |
Reconciliation of assets | November 25, 2018 Americas Europe Asia Unallocated Consolidated Total (Dollars in thousands) Assets: Trade receivables, net $ 362,825 $ 102,989 $ 54,266 $ 14,084 $ 534,164 Inventories 468,258 188,430 148,335 78,750 883,773 All other assets — — — 2,124,723 2,124,723 Total assets $ 3,542,660 November 26, 2017 Americas Europe Asia Unallocated Consolidated Total (Dollars in thousands) Assets: Trade receivables, net $ 322,712 $ 99,807 $ 52,029 $ 10,937 $ 485,485 Inventories 402,151 162,391 118,852 76,002 759,396 All other assets — — — 2,112,957 2,112,957 Total assets (1) $ 3,357,838 (1) Certain insignificant amounts on the consolidated balance sheet from the year ended November 26, 2017 have been conformed to the November 25, 2018 presentation. |
Reconciliation of revenue | Geographic information for the Company was as follows: Year Ended November 25, 2018 November 26, 2017 November 27, 2016 (Dollars in thousands) Net revenues: United States $ 2,546,907 $ 2,347,860 $ 2,302,668 Foreign countries 3,028,533 2,556,170 2,250,071 Total net revenues $ 5,575,440 $ 4,904,030 $ 4,552,739 Net deferred tax assets: United States $ 313,644 $ 450,270 $ 444,295 Foreign countries 84,147 87,653 78,806 Total net deferred tax assets $ 397,791 $ 537,923 $ 523,101 Long-lived assets: United States $ 335,705 $ 312,656 $ 311,358 Foreign countries 154,767 141,660 108,332 Total long-lived assets $ 490,472 $ 454,316 $ 419,690 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Nov. 25, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Set forth below are the consolidated statements of operations for the first, second, third and fourth quarters of 2018 and 2017 . Year Ended November 25, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands) Net revenues $ 1,343,685 $ 1,245,742 $ 1,394,153 $ 1,591,860 Cost of goods sold 605,561 574,865 652,591 744,448 Gross profit 738,124 670,877 741,562 847,412 Selling, general and administrative expenses 564,025 594,353 582,953 719,584 Operating income 174,099 76,524 158,609 127,828 Interest expense (15,497 ) (14,465 ) (15,697 ) (9,637 ) Other (expense) income, net (9,577 ) 13,653 (3,032 ) 17,214 Income before income taxes 149,025 75,712 139,880 135,405 Income tax expense (benefit) 167,654 (1,320 ) 10,299 38,145 Net (loss) income (18,629 ) 77,032 129,581 97,260 Net (income) loss attributable to noncontrolling interest (383 ) (2,100 ) 543 (162 ) Net (loss) income attributable to Levi Strauss & Co. $ (19,012 ) $ 74,932 $ 130,124 $ 97,098 Year Ended November 26, 2017 First Quarter Second Quarter Third Fourth Quarter (Dollars in thousands) Net revenues $ 1,101,991 $ 1,067,855 $ 1,268,391 $ 1,465,793 Cost of goods sold 537,438 509,463 611,762 682,638 Gross profit 564,553 558,392 656,629 783,155 Selling, general and administrative expenses 456,213 495,741 510,309 633,297 Operating income 108,340 62,651 146,320 149,858 Interest expense (19,934 ) (17,895 ) (14,476 ) (16,298 ) Loss on early extinguishment of debt — (22,793 ) — — Other income (expense), net 408 (18,087 ) (14,734 ) 5,421 Income before income taxes 88,814 3,876 117,110 138,981 Income tax expense (benefit) 28,693 (13,847 ) 27,631 21,748 Net income 60,121 17,723 89,479 117,233 Net loss (income) attributable to noncontrolling interest 22 (207 ) (1,487 ) (1,481 ) Net income attributable to Levi Strauss & Co. $ 60,143 $ 17,516 $ 87,992 $ 115,752 _____________ (1) The third quarter of 2017 includes an out-of-period adjustment which increased selling, general and administrative expenses by $9.5 million and decreased net income by $5.8 million . This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest in awards after retirement. |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Nov. 25, 2018USD ($)region | Aug. 26, 2018USD ($) | May 27, 2018USD ($) | Feb. 25, 2018USD ($) | Nov. 26, 2017USD ($) | Aug. 27, 2017USD ($) | May 28, 2017USD ($) | Feb. 26, 2017USD ($) | Nov. 27, 2016 | Aug. 28, 2016 | May 29, 2016 | Feb. 28, 2016 | Nov. 25, 2018USD ($)region | Nov. 26, 2017USD ($) | Nov. 27, 2016USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Number of geographical regions | region | 3 | 3 | |||||||||||||
Selling, general and administrative expenses | $ 719,584 | $ 582,953 | $ 594,353 | $ 564,025 | $ 633,297 | $ 510,309 | $ 495,741 | $ 456,213 | $ 2,460,915 | $ 2,095,560 | $ 1,866,805 | ||||
Net income | $ 97,098 | $ 130,124 | $ 74,932 | $ (19,012) | $ 115,752 | $ 87,992 | $ 17,516 | $ 60,143 | $ 283,142 | $ 281,403 | $ 291,052 | ||||
Number of weeks in a year | 364 days | 364 days | 364 days | ||||||||||||
Number of weeks in a quarter | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | |||
Advertising expense | $ 400,300 | $ 323,300 | $ 284,000 | ||||||||||||
Distribution costs | $ 208,800 | 173,400 | $ 168,300 | ||||||||||||
Levi Strauss Japan K.K. [Member] | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Minority interest (percent) | 16.40% | 16.40% | |||||||||||||
Restatement Adjustment [Member] | Recognition of Stock-based Compensation Expense [Member] | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Selling, general and administrative expenses | $ 9,500 | 8,300 | |||||||||||||
Net income | $ (5,800) | $ (5,100) |
Significant Accounting Polici_4
Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Nov. 25, 2018 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Software Development [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Software Development [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Significant Accounting Polici_5
Significant Accounting Policies - Revenue Recognition (Details) - customer | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Revenue, Major Customer [Line Items] | |||
Number of largest customers | 10 | ||
Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 27.00% | 28.00% | 30.00% |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,434,819 | $ 1,375,712 | |
Accumulated depreciation | (974,206) | (951,249) | |
PP&E, net | 460,613 | 424,463 | |
Depreciation expense | 120,200 | 117,400 | $ 103,700 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,197 | 8,239 | |
Buildings and leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 466,256 | 422,168 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 471,015 | 452,950 | |
Capitalized internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 453,943 | 450,558 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 35,408 | $ 41,797 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 25, 2018 | Nov. 26, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 237,327 | $ 234,280 |
Foreign currency fluctuation | (1,081) | 3,047 |
Ending balance | 236,246 | 237,327 |
Americas [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 207,765 | 207,723 |
Foreign currency fluctuation | (34) | 42 |
Ending balance | 207,731 | 207,765 |
Europe [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 28,324 | 25,341 |
Foreign currency fluctuation | (1,060) | 2,983 |
Ending balance | 27,264 | 28,324 |
Asia Pacific [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,238 | 1,216 |
Foreign currency fluctuation | 13 | 22 |
Ending balance | $ 1,251 | $ 1,238 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 27, 2016 | Nov. 25, 2018 | Nov. 26, 2017 | |
Amortized intangible assets | |||
Gross Carrying Value | $ 43,205 | $ 43,223 | |
Accumulated Amortization | (370) | (330) | |
Total | 42,835 | 42,893 | |
Amortization expense | $ 200 | ||
Acquired contractual rights [Member] | |||
Amortized intangible assets | |||
Gross Carrying Value | 462 | 480 | |
Accumulated Amortization | (370) | (330) | |
Total | 92 | 150 | |
Trademarks [Member] | |||
Schedule of Acquired Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Trademarks | $ 42,743 | $ 42,743 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value (Details) - Recurring [Member] - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 |
Level 1 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | $ 34,385 | $ 31,139 |
Forward foreign exchange contracts | 0 | 0 |
Total | 34,385 | 31,139 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 0 | 0 |
Level 2 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 0 | 0 |
Forward foreign exchange contracts | 18,372 | 6,296 |
Total | 18,372 | 6,296 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 4,447 | 23,799 |
Fair Value [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 34,385 | 31,139 |
Forward foreign exchange contracts | 18,372 | 6,296 |
Total | 52,757 | 37,435 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | $ 4,447 | $ 23,799 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Adjusted Historical Cost (Details) € in Millions | May 01, 2017USD ($) | Mar. 03, 2017USD ($) | Nov. 25, 2018USD ($) | Nov. 26, 2017USD ($) | Feb. 28, 2017EUR (€) | Apr. 27, 2015USD ($) |
Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Stated interest rate | 5.00% | 5.00% | ||||
Face amount | $ 500,000,000 | |||||
Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Stated interest rate | 3.375% | 3.375% | ||||
Face amount | € | € 475 | |||||
Senior notes [Member] | 6.875% senior notes due 2022 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Stated interest rate | 6.875% | |||||
Extinguishment of debt | $ 154,700,000 | $ 370,300,000 | ||||
Recurring [Member] | Carrying Value [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Short-term debt carried at adjusted historical cost | $ 32,470,000 | $ 38,727,000 | ||||
Total financial liabilities carried at adjusted historical cost | 1,057,961,000 | 1,083,183,000 | ||||
Recurring [Member] | Carrying Value [Member] | Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt carried at adjusted historical cost | 487,272,000 | 485,419,000 | ||||
Recurring [Member] | Carrying Value [Member] | Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt carried at adjusted historical cost | 538,219,000 | 559,037,000 | ||||
Recurring [Member] | Fair Value [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Short-term debt carried at adjusted historical cost | 32,470,000 | 38,727,000 | ||||
Total financial liabilities carried at adjusted historical cost | 1,057,482,000 | 1,136,178,000 | ||||
Recurring [Member] | Fair Value [Member] | Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt carried at adjusted historical cost | 478,774,000 | 507,185,000 | ||||
Recurring [Member] | Fair Value [Member] | Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt carried at adjusted historical cost | $ 546,238,000 | $ 590,266,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Balance Sheet (Details) - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 |
Forward foreign exchange contracts [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | $ 16,417 | $ 3,218 |
Derivative asset, gross liability | (1,756) | (3,146) |
Derivative asset, net | 14,661 | 72 |
Derivative liability, gross asset | 1,756 | 3,146 |
Derivative Liability, gross liability | (2,181) | (20,876) |
Derivative Liability, net | (425) | (17,730) |
Derivative, Fair Value, Net | 14,236 | (17,658) |
Embedded Derivative Financial Instruments [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 1,955 | 3,078 |
Derivative asset, gross liability | 0 | 0 |
Derivative asset, net | 1,955 | 3,078 |
Derivative liability, gross asset | 0 | 0 |
Derivative Liability, gross liability | (2,266) | (2,923) |
Derivative Liability, net | (2,266) | (2,923) |
Derivative, Fair Value, Net | (311) | 155 |
Carrying Value [Member] | Forward foreign exchange contracts [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, net | 18,372 | 6,296 |
Derivative Liability, net | (4,447) | (23,799) |
Carrying Value [Member] | Other assets [Member] | Forward foreign exchange contracts [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 18,372 | 6,296 |
Derivative liability, gross asset | 0 | 0 |
Derivative asset, Net Carrying Value | 18,372 | 6,296 |
Carrying Value [Member] | Other accrued liabilities [Member] | Forward foreign exchange contracts [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross liability | 0 | 0 |
Derivative Liability, gross liability | (4,447) | (23,799) |
Derivative liability, Net Carrying Value | (4,447) | (23,799) |
Carrying Value [Member] | Bonds [Member] | Yen-denominated Eurobonds due 2016 [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Hedging assets | 0 | 0 |
Hedging liabilities | (541,500) | $ (562,780) |
Long [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Forward foreign exchange contracts to buy | 981,800 | |
Short [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Forward foreign exchange contracts to buy | $ 193,500 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Income Statement (Details) - USD ($) | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cumulative income taxes, gain or (loss) recognized in AOCI | $ 29,703,000 | $ 35,253,000 | |
Total, gain or (loss) recognized in AOCI | (39,887,000) | (55,618,000) | |
Yen-denominated Eurobonds due 2016 [Member] | Bonds [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | (19,811,000) | (19,811,000) | |
Non-derivative hedging instruments-gain or (loss) recognized in other income | 0 | 0 | $ 2,627,000 |
Euro Senior Notes [Member] | Senior notes [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | (54,416,000) | (75,697,000) | |
Non-derivative hedging instruments-gain or (loss) recognized in other income | 0 | 0 | $ 0 |
Forward foreign exchange contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Forward foreign exchange contracts, gain of (loss) recognized in AOCI | $ 4,637,000 | $ 4,637,000 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Realized & Unrealized (Details) - Forward foreign exchange contracts [Member] - Other Income [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized | $ (19,974) | $ (5,773) | $ 17,175 |
Unrealized | 31,141 | (35,394) | (1,315) |
Total | $ 11,167 | $ (41,167) | $ 15,860 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 | Feb. 28, 2017 | Apr. 27, 2015 |
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Long-term debt, excluding current maturities | $ 1,020,219 | $ 1,038,860 | ||
Short-term debt | 31,935 | 38,451 | ||
Long-term and short-term debt | 1,052,154 | 1,077,311 | ||
Short-term borrowings [Member] | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Short-term debt | 31,935 | 38,451 | ||
5.00% Senior Notes, Due 2025 [Member] | Senior notes [Member] | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Long-term debt, excluding current maturities | $ 485,605 | 483,683 | ||
Stated interest rate | 5.00% | 5.00% | ||
3.375% Senior Notes Due 2027 [Member] | Senior notes [Member] | ||||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | ||||
Long-term debt, excluding current maturities | $ 534,614 | $ 555,177 | ||
Stated interest rate | 3.375% | 3.375% |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Millions | Mar. 15, 2020 | May 23, 2017 | May 01, 2017USD ($) | Mar. 03, 2017USD ($) | Feb. 28, 2017EUR (€) | Nov. 26, 2017USD ($) | Aug. 27, 2017USD ($) | May 28, 2017USD ($) | Feb. 26, 2017USD ($) | Nov. 25, 2018USD ($) | Nov. 26, 2017USD ($) | Nov. 27, 2016USD ($) | Mar. 15, 2022 | Apr. 27, 2015USD ($) | May 08, 2012 |
Debt Instruments [Line Items] | |||||||||||||||
Remaining borrowing capacity | $ 805,200,000 | ||||||||||||||
Debt outstanding | 850,000,000 | ||||||||||||||
Losses on extinguishment of debt | $ 0 | $ 0 | $ 22,793,000 | $ 0 | $ 0 | $ 22,793,000 | $ 0 | ||||||||
Interest rate during period | 5.01% | 5.60% | 6.37% | ||||||||||||
Other Credit Usage [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Letters of credit amount outstanding | $ 2,500,000 | ||||||||||||||
Standby Letters of Credit [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Letters of credit amount outstanding | 42,300,000 | ||||||||||||||
Senior revolving credit facility [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 850,000,000 | ||||||||||||||
Rate for undrawn availability | 0.20% | ||||||||||||||
Letter of credit facility, coverage ratio | 1 | ||||||||||||||
Letter of credit facility, default in other indebtedness, minimum | $ 50,000,000 | ||||||||||||||
Senior revolving credit facility [Member] | The Second Amended and Restated Credit Agreement [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 1,600,000,000 | ||||||||||||||
Letter of credit facility, coverage ratio | 3.25 | ||||||||||||||
Senior revolving credit facility [Member] | Minimum [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Rate for undrawn availability | 0.25% | ||||||||||||||
Senior revolving credit facility [Member] | Maximum [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Rate for undrawn availability | 0.30% | ||||||||||||||
Senior revolving credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Basis spread on variable rate | 1.25% | ||||||||||||||
Senior revolving credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Basis spread on variable rate | 1.75% | ||||||||||||||
Senior revolving credit facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Scenario, Previously Reported [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.00% | ||||||||||||||
Senior revolving credit facility [Member] | Secured Debt [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 350,000,000 | ||||||||||||||
Senior revolving credit facility [Member] | United States of America, Dollars [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Maximum borrowing capacity | 800,000,000 | ||||||||||||||
Senior revolving credit facility [Member] | United States of America, Dollars or Canada, Dollars [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||||||||
Senior notes [Member] | 6.875% senior notes due 2022 [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Stated interest rate | 6.875% | ||||||||||||||
Extinguishment of debt | $ 154,700,000 | $ 370,300,000 | |||||||||||||
Extinguisment of debt, gains (losses), tender premium | $ 21,900,000 | ||||||||||||||
Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Face amount | € | € 475 | ||||||||||||||
Stated interest rate | 3.375% | 3.375% | |||||||||||||
Redemption price as a result of a change in control (percent) | 101.00% | ||||||||||||||
Senior notes [Member] | 3.375% Senior Notes Due 2027 [Member] | Scenario, Forecast [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Maximum potential redemption (percent) | 40.00% | ||||||||||||||
Redemption price (percent) | 103.375% | ||||||||||||||
Issuance price percentage of face value if exercised | 100.00% | ||||||||||||||
Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Face amount | $ 500,000,000 | ||||||||||||||
Stated interest rate | 5.00% | 5.00% | |||||||||||||
Debt default, holder percent to declare all notes due, minimum | 25.00% | ||||||||||||||
Unamortized discount | $ 13,900,000 | ||||||||||||||
Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | Redemption Prior to May 1, 2020 [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Redemption price (percent) | 100.00% | ||||||||||||||
Senior notes [Member] | 5.00% Senior Notes, Due 2025 [Member] | Redemption Prior to May 1, 2018 [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Redemption price (percent) | 105.00% | ||||||||||||||
Senior notes [Member] | Maximum [Member] | 5.00% Senior Notes, Due 2025 [Member] | Redemption Prior to May 1, 2018 [Member] | |||||||||||||||
Debt Instruments [Line Items] | |||||||||||||||
Early retirement original aggregate principal amount redeemable | 40.00% |
Debt - Principal Payments on Sh
Debt - Principal Payments on Short-term and Long-Term Debt (Details) $ in Thousands | Nov. 25, 2018USD ($) |
Maturities of Long-term and Short-term Debt [Abstract] | |
2,019 | $ 31,935 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 1,031,866 |
Total future debt principal payments | $ 1,063,801 |
Employee Benefit Plans - Benefi
Employee Benefit Plans - Benefit obligations in excess of fair value of plan assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Pension plans, defined benefit [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 1,243,852 | $ 1,191,934 | |
Service cost(1) | 3,602 | 3,427 | $ 2,701 |
Interest cost | 36,070 | 36,853 | 37,819 |
Plan participants' contribution | 570 | 570 | |
Actuarial loss (gain) | (69,602) | 65,669 | |
Net curtailment loss | 113 | 132 | |
Impact of foreign currency changes | (6,983) | 15,545 | |
Plan settlements | (63) | (410) | |
Net benefits paid | (70,839) | (69,868) | |
Benefit obligation at end of year | 1,136,720 | 1,243,852 | 1,191,934 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 948,706 | 837,322 | |
Actual return on plan assets | (36,468) | 117,188 | |
Employer contribution(4) | 122,492 | 52,386 | |
Plan participants' contributions | 570 | 570 | |
Plan settlements | (63) | (410) | |
Impact of foreign currency changes | (5,822) | 11,518 | |
Net benefits paid | (70,839) | (69,868) | |
Fair value of plan assets at end of year | 958,576 | 948,706 | 837,322 |
Unfunded status at end of year | (178,144) | (295,146) | |
Other postretirement benefit plans, defined benefit [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 98,675 | 112,451 | |
Service cost(1) | 113 | 172 | 200 |
Interest cost | 2,718 | 3,148 | 3,223 |
Plan participants' contribution | 4,105 | 4,376 | |
Actuarial loss (gain) | (6,353) | (5,516) | |
Net curtailment loss | 0 | 0 | |
Impact of foreign currency changes | 0 | 0 | |
Plan settlements | 0 | 0 | |
Net benefits paid | (16,351) | (15,956) | |
Benefit obligation at end of year | 82,907 | 98,675 | 112,451 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contribution(4) | 12,246 | 11,580 | |
Plan participants' contributions | 4,105 | 4,376 | |
Plan settlements | 0 | 0 | |
Impact of foreign currency changes | 0 | 0 | |
Net benefits paid | (16,351) | (15,956) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Unfunded status at end of year | $ (82,907) | $ (98,675) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts recognized in balance sheet (Details) - USD ($) | Nov. 25, 2018 | Nov. 26, 2017 |
Pension plans, defined benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | $ 22,738,000 | $ 24,644,000 |
Accrued benefit liability – current portion | (9,390,000) | (9,316,000) |
Accrued benefit liability – long-term portion | (191,491,000) | (310,474,000) |
Amount recognized in balance sheet | (178,143,000) | (295,146,000) |
Accumulated other comprehensive loss: | ||
Net actuarial loss | (365,424,000) | (362,602,000) |
Net prior service benefit | 351,000 | 419,000 |
Other comprehensive income (loss) | (365,073,000) | (362,183,000) |
Other postretirement benefit plans, defined benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets for Plan Benefits, Defined Benefit Plan | 0 | 0 |
Accrued benefit liability – current portion | (8,725,000) | (9,427,000) |
Accrued benefit liability – long-term portion | (74,182,000) | (89,248,000) |
Amount recognized in balance sheet | (82,907,000) | (98,675,000) |
Accumulated other comprehensive loss: | ||
Net actuarial loss | (14,652,000) | (21,878,000) |
Net prior service benefit | 0 | 0 |
Other comprehensive income (loss) | $ (14,652,000) | $ (21,878,000) |
Employee Benefit Plans - Accumu
Employee Benefit Plans - Accumulated benefit obligations in excess of fair value of plan assets (Details) - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 |
Accumulated benefit obligations in excess of plan assets [Abstract] | ||
Aggregate accumulated benefit obligation | $ 986,084 | $ 1,091,856 |
Aggregate fair value of plan assets | 792,427 | 775,859 |
Projected benefit obligations in excess of plan assets [Abstract] | ||
Aggregate projected benefit obligation | 1,028,074 | 1,131,873 |
Aggregate fair value of plan assets | $ 827,193 | $ 812,082 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined benefit plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Pension plans, defined benefit [Member] | |||
Net periodic benefit cost: | |||
Service cost(1) | $ 3,602 | $ 3,427 | $ 2,701 |
Interest cost | 36,070 | 36,853 | 37,819 |
Expected return on plan assets(1) | (48,830) | (42,033) | (42,889) |
Amortization of prior service benefit | (65) | (62) | (61) |
Amortization of actuarial gain / loss | 12,650 | 13,489 | 12,036 |
Curtailment (gain) loss | 38 | 106 | (140) |
Net settlement (gain) loss | (102) | 126 | 49 |
Net periodic benefit cost | 3,363 | 11,906 | 9,515 |
Changes in accumulated other comprehensive loss: | |||
Actuarial loss (gain) | 15,373 | (9,785) | 32,187 |
Amortization of prior service benefit (cost) | 65 | 62 | 61 |
Amortization of actuarial gain / loss | (12,650) | (13,489) | (12,036) |
Curtailment gain | 0 | 0 | 173 |
Net settlement gain (loss) | 102 | (126) | (49) |
Total recognized in accumulated other comprehensive loss | 2,890 | (23,338) | 20,336 |
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | 6,253 | (11,432) | 29,851 |
Other postretirement benefit plans, defined benefit [Member] | |||
Net periodic benefit cost: | |||
Service cost(1) | 113 | 172 | 200 |
Interest cost | 2,718 | 3,148 | 3,223 |
Expected return on plan assets(1) | 0 | 0 | 0 |
Amortization of prior service benefit | 0 | 0 | 0 |
Amortization of actuarial gain / loss | 872 | 1,271 | 2,967 |
Curtailment (gain) loss | 0 | 0 | 0 |
Net settlement (gain) loss | 0 | 0 | 0 |
Net periodic benefit cost | 3,703 | 4,591 | 6,390 |
Changes in accumulated other comprehensive loss: | |||
Actuarial loss (gain) | (6,354) | (5,516) | 5,556 |
Amortization of prior service benefit (cost) | 0 | 0 | 0 |
Amortization of actuarial gain / loss | (872) | (1,271) | (2,967) |
Curtailment gain | 0 | 0 | 0 |
Net settlement gain (loss) | 0 | 0 | 0 |
Total recognized in accumulated other comprehensive loss | (7,226) | (6,787) | 2,589 |
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ (3,523) | $ (2,196) | $ 8,979 |
Employee Benefit Plans - Assump
Employee Benefit Plans - Assumptions used (Details) | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Pension plans, defined benefit [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.40% | 3.80% | 4.00% |
Expected long-term rate of return on plan assets | 5.40% | 5.80% | 5.90% |
Rate of compensation increase | 3.40% | 3.40% | 3.40% |
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 4.10% | 3.40% | 3.80% |
Rate of compensation increase | 3.40% | 3.40% | 3.40% |
Other postretirement benefit plans, defined benefit [Member] | |||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 3.40% | 3.70% | 3.80% |
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 4.20% | 3.40% | 3.70% |
Assumed health care cost trend rates were as follows: | |||
Health care trend rate assumed for next year | 5.90% | 6.30% | 6.40% |
Rate trend to which the cost trend is assumed to decline | 4.40% | 4.40% | 4.40% |
Year that rate reaches the ultimate trend rate | 2,037 | 2,037 | 2,038 |
Employee Benefit Plans - Fair v
Employee Benefit Plans - Fair values of pension plan assets (Details) - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 3,818 | $ 1,164 |
Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 954,375 | 946,778 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 383 | 764 |
Cash and cash equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,818 | 1,164 |
Cash and cash equivalents [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. large cap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. large cap [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 91,663 | 209,568 |
U.S. large cap [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. small cap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. small cap [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,871 | 42,874 |
U.S. small cap [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 86,974 | 141,924 |
International [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed income securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 714,034 | 463,617 |
Fixed income securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real estate [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Real estate [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35,265 | 69,546 |
Real estate [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Private equity [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Private equity [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Private equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 383 | 764 |
Hedge funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Hedge funds [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11,389 | 14,934 |
Hedge funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other [Member] | Significant Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4,179 | 4,315 |
Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Total [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 958,576 | 948,706 |
Total [Member] | Cash and cash equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,818 | 1,164 |
Total [Member] | U.S. large cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 91,663 | 209,568 |
Total [Member] | U.S. small cap [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10,871 | 42,874 |
Total [Member] | International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 86,974 | 141,924 |
Total [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 714,034 | 463,617 |
Total [Member] | Real estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35,265 | 69,546 |
Total [Member] | Private equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 383 | 764 |
Total [Member] | Hedge funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11,389 | 14,934 |
Total [Member] | Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 4,179 | $ 4,315 |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected benefit payments (Details) $ in Thousands | Nov. 25, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 78,705 |
2,020 | 77,635 |
2,021 | 77,748 |
2,022 | 79,105 |
2,023 | 78,619 |
2024-2028 | 389,860 |
Pension plans, defined benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 68,292 |
2,020 | 67,640 |
2,021 | 68,115 |
2,022 | 69,933 |
2,023 | 70,040 |
2024-2028 | 355,238 |
Other postretirement benefit plans, defined benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 10,413 |
2,020 | 9,995 |
2,021 | 9,633 |
2,022 | 9,172 |
2,023 | 8,579 |
2024-2028 | $ 34,622 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 25, 2018 | Nov. 24, 2019 | Nov. 26, 2017 | Nov. 27, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 1,100,000 | $ 1,200,000 | ||
Expected duration of returns for the plan | 20 years | |||
Estimated future employer contributions in next fiscal year | $ 16,100 | |||
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 792,400 | |||
United States | Equity Securities and Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 25.00% | |||
United States | Equity Securities and Real Estate [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, allowable deviation | 4.00% | |||
United States | Equity Securities and Real Estate [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, allowable deviation | 4.00% | |||
United States | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocations | 75.00% | |||
United States | Fixed Income Securities [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, allowable deviation | 4.00% | |||
United States | Fixed Income Securities [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, allowable deviation | 4.00% | |||
Foreign pension plans, defined benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 166,200 | |||
Pension plans, defined benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 958,576 | 948,706 | $ 837,322 | |
Pension plans, defined benefit [Member] | Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amounts amortized | $ 13,300 | |||
Other postretirement benefit plans, defined benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 0 | $ 0 | |
Other postretirement benefit plans, defined benefit [Member] | Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amounts amortized | $ 500 |
Employee Investment Plans (Deta
Employee Investment Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Disclosure of Employee Investment Plans [Abstract] | |||
ESIP Employer contributions match (percent) | 125.00% | ||
ESIP Employer contribution match, percent of employee's eligible compensation, maximum (percent) | 6.00% | ||
ESIP Compensation expense | $ 14.9 | $ 13.4 | $ 12 |
Employee Incentive Compensati_2
Employee Incentive Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Annual Incentive Plan (AIP) [Member] | |||
Schedule of Employee Incentive Compensation Plans Disclosures [Line Items] | |||
EICP Compensation expense (benefit) | $ 114.3 | $ 88 | $ 68.3 |
EICP Accrued liabilities | 114.4 | 85.4 | |
2005 Long-Term Incentive Plan (LTIP) [Member] | |||
Schedule of Employee Incentive Compensation Plans Disclosures [Line Items] | |||
EICP Compensation expense (benefit) | 4.1 | 4.5 | $ 4.9 |
EICP Accrued liabilities | $ 8.1 | $ 10.6 | |
ECIP Duration of performace prior to performance measurement | 3 years |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Nov. 25, 2018 | Aug. 26, 2018 | May 27, 2018 | Feb. 25, 2018 | Nov. 26, 2017 | Aug. 27, 2017 | May 28, 2017 | Feb. 26, 2017 | Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | $ 89,800 | $ 57,100 | $ 20,300 | |||||||||
Tax benefit (expense) realized from exercise of stock options | 22,300 | 22,000 | 7,800 | |||||||||
Total compensation cost not yet recognized | $ 67,300 | $ 67,300 | ||||||||||
Total compensation cost not yet recognized, period for recognition | 2 years 1 month 2 days | |||||||||||
Selling, general and administrative expenses | 719,584 | $ 582,953 | $ 594,353 | $ 564,025 | $ 633,297 | $ 510,309 | $ 495,741 | $ 456,213 | $ 2,460,915 | 2,095,560 | 1,866,805 | |
Net income | (97,098) | $ (130,124) | $ (74,932) | $ 19,012 | $ (115,752) | (87,992) | $ (17,516) | $ (60,143) | (283,142) | (281,403) | (291,052) | |
Fair value of awards vested in period | 10,100 | 6,500 | ||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Fair value of Board RSU's granted during the period | 1,500 | |||||||||||
Phantom Service Restricted Stock Unit Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total compensation cost not yet recognized | 46,400 | $ 46,400 | ||||||||||
Total compensation cost not yet recognized, period for recognition | 2 years 3 months 11 days | |||||||||||
Minimum contractual term | 3 years | |||||||||||
Exercises in period, intrinsic value | $ 17,000 | 9,200 | ||||||||||
Requisite service period | 3 years | |||||||||||
Phantom Performance Restricted Stock Unit Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total compensation cost not yet recognized | 11,900 | $ 11,900 | ||||||||||
Total compensation cost not yet recognized, period for recognition | 1 year 8 months 23 days | |||||||||||
Exercises in period, intrinsic value | 15,800 | |||||||||||
Phantom Performance Restricted Stock Unit Plan [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 200.00% | |||||||||||
Phantom Service Restricted Stock Unit [Plan and Phantom Performance Restricted Stock Unit Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation cost accrual | $ 94,500 | $ 94,500 | ||||||||||
2016 Equity Incentive Plan (EIP) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized (shares) | 8,000,000 | |||||||||||
Number of shares available for grant (shares) | 3,825,124 | 3,825,124 | ||||||||||
Contractual term, maximum | 7 years | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 6 months | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Put rights [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 6 months | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Performance-Based Stock Appreciation Rights SARs [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total compensation cost not yet recognized | $ 200 | $ 200 | ||||||||||
Total compensation cost not yet recognized, period for recognition | 2 months 1 day | |||||||||||
Award performance goal period | 3 years | |||||||||||
Maximum contractual term | 7 years | |||||||||||
Exercises in period, intrinsic value | $ 6,777 | 883 | 986 | |||||||||
2016 Equity Incentive Plan (EIP) [Member] | Performance-Based Stock Appreciation Rights SARs [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 150.00% | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Service Stock Appreciation Rights (SARs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total compensation cost not yet recognized | 3,400 | $ 3,400 | ||||||||||
Total compensation cost not yet recognized, period for recognition | 1 year 8 months 16 days | |||||||||||
Minimum contractual term | 7 years | |||||||||||
Exercises in period, intrinsic value | $ 53,398 | 25,572 | $ 1,443 | |||||||||
2016 Equity Incentive Plan (EIP) [Member] | Service Stock Appreciation Rights (SARs) [Member] | Minimum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years 6 months | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Service Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 4 years | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Service Restricted Stock Units [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total compensation cost not yet recognized | 2,200 | $ 2,200 | ||||||||||
Total compensation cost not yet recognized, period for recognition | 1 year 11 months 23 days | |||||||||||
Minimum contractual term | 3 years | |||||||||||
Weighted-average grant date fair value without a market condition (in dollars per unit) | $ 91.63 | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Performance Restricted Stock Units [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total compensation cost not yet recognized | $ 3,100 | $ 3,100 | ||||||||||
Total compensation cost not yet recognized, period for recognition | 1 year 4 months 13 days | |||||||||||
Award performance goal period | 3 years | |||||||||||
Weighted-average grant date fair value without a market condition (in dollars per unit) | $ 64.86 | |||||||||||
2016 Equity Incentive Plan (EIP) [Member] | Performance Restricted Stock Units [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 200.00% | |||||||||||
Restatement Adjustment [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | 8,300 | |||||||||||
Recognition of Stock-based Compensation Expense [Member] | Restatement Adjustment [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Selling, general and administrative expenses | 9,500 | 8,300 | ||||||||||
Net income | $ 5,800 | $ 5,100 |
Stock-Based Incentive Compens_4
Stock-Based Incentive Compensation Plans - Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Nov. 25, 2018 | Nov. 26, 2017 | |
Phantom Service Restricted Stock Unit Plan [Member] | ||
Units [Roll Forward] | ||
Beginning balance, Units | 875 | |
Granted, Units | 300 | |
Exercised, Units | (195) | |
Forfeited, Units | (79) | |
Performance Adjustment, Units | 9 | |
Ending balance, Units | 910 | 875 |
Vested and expected to vest, Units | 847 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Beginning balance, Weighted-Average Exercise Price (in dollars per unit) | $ 67.88 | |
Granted, Weighted-Average Exercise Price (in dollars per unit) | 97.71 | |
Exercised, Weighted-Average Exercise Price (in dollars per unit) | 74.47 | |
Performance adjustment, Weighted-Average Exercise Price (in dollars per unit) | 69.06 | |
Forfeited, Weighted-Average Exercise Price (in dollars per unit) | 72.43 | |
Ending balance, Weighted-Average Exercise Price (in dollars per unit) | 75.92 | $ 67.88 |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per unit) | 75.33 | |
Weighted Average Fair Value At Period End [Roll Forward] | ||
Ending balance, Weighted-Average Exercise Price (in dollars per unit) | 146 | $ 84.50 |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per unit) | $ 146 | |
Phantom Performance Restricted Stock Unit Plan [Member] | ||
Units [Roll Forward] | ||
Beginning balance, Units | 104 | |
Granted, Units | 87 | |
Exercised, Units | 0 | |
Forfeited, Units | (20) | |
Performance Adjustment, Units | 0 | |
Ending balance, Units | 171 | 104 |
Vested and expected to vest, Units | 153 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Beginning balance, Weighted-Average Exercise Price (in dollars per unit) | $ 69.30 | |
Granted, Weighted-Average Exercise Price (in dollars per unit) | 96.68 | |
Exercised, Weighted-Average Exercise Price (in dollars per unit) | 0 | |
Performance adjustment, Weighted-Average Exercise Price (in dollars per unit) | 0 | |
Forfeited, Weighted-Average Exercise Price (in dollars per unit) | 77.99 | |
Ending balance, Weighted-Average Exercise Price (in dollars per unit) | 82.21 | $ 69.30 |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per unit) | 81.84 | |
Weighted Average Fair Value At Period End [Roll Forward] | ||
Ending balance, Weighted-Average Exercise Price (in dollars per unit) | 146 | $ 84.50 |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per unit) | $ 146 | |
2016 Equity Incentive Plan (EIP) [Member] | Performance Restricted Stock Units [Member] | ||
Weighted-Average Remaining Contractual Life (Years) [Abstract] | ||
Weighted Average Remaining Contractual Life (Years) | 1 year 4 months 24 days | 2 years 4 months 24 days |
2016 Equity Incentive Plan (EIP) [Member] | Service Stock Appreciation Rights (SARs) [Member] | ||
Units [Roll Forward] | ||
Beginning balance, Units | 2,530 | |
Granted, Units | 155 | |
Exercised, Units | (873) | |
Forfeited, Units | (25) | |
Performance Adjustment, Units | 0 | |
Ending balance, Units | 1,787 | 2,530 |
Vested and expected to vest, Units | 1,775 | |
Exercisable, Units | 1,253 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Beginning balance, Weighted-Average Exercise Price (in dollars per unit) | $ 54.52 | |
Granted, Weighted-Average Exercise Price (in dollars per unit) | 96 | |
Exercised, Weighted-Average Exercise Price (in dollars per unit) | 42.47 | |
Performance adjustment, Weighted-Average Exercise Price (in dollars per unit) | 0 | |
Forfeited, Weighted-Average Exercise Price (in dollars per unit) | 85.44 | |
Ending balance, Weighted-Average Exercise Price (in dollars per unit) | 63.57 | $ 54.52 |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per unit) | 63.48 | |
Exercisable, Weighted-Average Exercise Price (in dollars per unit) | $ 59.16 | |
Weighted-Average Remaining Contractual Life (Years) [Abstract] | ||
Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 24 days | 3 years 6 months |
Vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 3 years 4 months 24 days | |
Exercisable, Weighted-Average Remaining Contractual Life (Years) | 2 years 8 months 12 days | |
Aggregate Intrinsic Value [Abstract] | ||
Vested and expected to vest | $ 146,428 | |
Exercisable | $ 108,844 | |
2016 Equity Incentive Plan (EIP) [Member] | Performance-Based Stock Appreciation Rights SARs [Member] | ||
Units [Roll Forward] | ||
Beginning balance, Units | 1,079 | |
Granted, Units | 0 | |
Exercised, Units | (137) | |
Forfeited, Units | (50) | |
Performance Adjustment, Units | 29 | |
Ending balance, Units | 921 | 1,079 |
Vested and expected to vest, Units | 1,002 | |
Exercisable, Units | 566 | |
Weighted-Average Exercise Price [Roll Forward] | ||
Beginning balance, Weighted-Average Exercise Price (in dollars per unit) | $ 60.52 | |
Granted, Weighted-Average Exercise Price (in dollars per unit) | 0 | |
Exercised, Weighted-Average Exercise Price (in dollars per unit) | 61.92 | |
Performance adjustment, Weighted-Average Exercise Price (in dollars per unit) | 74.40 | |
Forfeited, Weighted-Average Exercise Price (in dollars per unit) | 64.72 | |
Ending balance, Weighted-Average Exercise Price (in dollars per unit) | 60.53 | $ 60.52 |
Vested and expected to vest, Weighted-Average Exercise Price (in dollars per unit) | 60.64 | |
Exercisable, Weighted-Average Exercise Price (in dollars per unit) | $ 59.62 | |
Weighted-Average Remaining Contractual Life (Years) [Abstract] | ||
Weighted Average Remaining Contractual Life (Years) | 3 years 1 month 6 days | 4 years 1 month 6 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life (Years) | 3 years 2 months 12 days | |
Exercisable, Weighted-Average Remaining Contractual Life (Years) | 2 years 3 months 19 days | |
Aggregate Intrinsic Value [Abstract] | ||
Vested and expected to vest | $ 85,513 | |
Exercisable | $ 48,853 |
Stock-Based Incentive Compens_5
Stock-Based Incentive Compensation Plans - Aggregate Intrinsic Value - Exercised (Details) - 2016 Equity Incentive Plan (EIP) [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Service Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercises in period, intrinsic value | $ 53,398 | $ 25,572 | $ 1,443 |
Performance-Based Stock Appreciation Rights SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercises in period, intrinsic value | $ 6,777 | $ 883 | $ 986 |
Stock-Based Incentive Compens_6
Stock-Based Incentive Compensation Plans - Fair Value Assumptions (Details) - 2016 Equity Incentive Plan (EIP) [Member] - $ / shares | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Black-Scholes Model [Member] | Service Stock Appreciation Rights (SARs) [Member] | |||
Fair Value Assumptions [Abstract] | |||
Weighted-average grant date fair value (in dollars per unit) | $ 26.14 | $ 16.13 | $ 15.74 |
Expected life (in years) | 4 years 10 months 25 days | 4 years 10 months 24 days | 4 years 9 months 18 days |
Expected volatility (percent) | 35.70% | 32.50% | 36.40% |
Risk-free interest rate (percent) | 2.50% | 1.90% | 1.10% |
Expected dividend (percent) | 2.50% | 2.70% | 2.50% |
Black-Scholes Model [Member] | Performance-Based Stock Appreciation Rights SARs [Member] | |||
Fair Value Assumptions [Abstract] | |||
Weighted-average grant date fair value (in dollars per unit) | $ 15.94 | ||
Expected life (in years) | 5 years | ||
Expected volatility (percent) | 36.30% | ||
Risk-free interest rate (percent) | 1.10% | ||
Expected dividend (percent) | 2.50% | ||
Monte Carlo Model [Member] | Performance-Based Stock Appreciation Rights SARs [Member] | |||
Fair Value Assumptions [Abstract] | |||
Weighted-average grant date fair value (in dollars per unit) | $ 20.56 | ||
Expected life (in years) | 4 years 9 months 18 days | ||
Expected volatility (percent) | 36.50% | ||
Risk-free interest rate (percent) | 1.50% | ||
Expected dividend (percent) | 2.60% | ||
Monte Carlo Model [Member] | Performance Restricted Stock Units [Member] | |||
Fair Value Assumptions [Abstract] | |||
Weighted-average grant date fair value (in dollars per unit) | $ 104.53 | $ 82.33 | |
Expected life (in years) | 3 years | 3 years | |
Expected volatility (percent) | 37.20% | 33.50% | |
Risk-free interest rate (percent) | 2.30% | 1.40% | |
Expected dividend (percent) | 2.50% | 2.70% |
Stock-Based Incentive Compens_7
Stock-Based Incentive Compensation Plans Stock-Based Incentive Compensation Plans - RSU (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Nov. 25, 2018 | Nov. 26, 2017 | |
Weighted Average Fair Value At Period End [Roll Forward] | ||
Fair value of awards vested in period | $ 10.1 | $ 6.5 |
2016 Equity Incentive Plan (EIP) [Member] | Service Restricted Stock Units [Member] | ||
Units [Roll Forward] | ||
Beginning balance, Units | 55 | |
Granted, Units | 53 | |
Forfeited, Units | (4) | |
Ending balance, Units | 104 | 55 |
Weighted Average Fair Value At Period End [Roll Forward] | ||
Beginning balance, Weighted-Average Fair Value (in dollars per unit) | $ 69 | |
Granted, Weighted-Average Fair Value (in dollars per unit) | 96 | |
Forfeited, Weighted-Average Fair Value (in dollars per unit) | 96 | |
Ending balance, Weighted-Average Fair Value (in dollars per unit) | $ 81.67 | $ 69 |
Weighted Average Remaining Contractual Life (Years) | 1 year 8 months 12 days | 2 years 4 months 24 days |
2016 Equity Incentive Plan (EIP) [Member] | Performance Restricted Stock Units [Member] | ||
Units [Roll Forward] | ||
Beginning balance, Units | 109 | |
Granted, Units | 84 | |
Forfeited, Units | (19) | |
Ending balance, Units | 174 | 109 |
Weighted Average Fair Value At Period End [Roll Forward] | ||
Beginning balance, Weighted-Average Fair Value (in dollars per unit) | $ 69 | |
Granted, Weighted-Average Fair Value (in dollars per unit) | 96 | |
Forfeited, Weighted-Average Fair Value (in dollars per unit) | 80.72 | |
Ending balance, Weighted-Average Fair Value (in dollars per unit) | $ 80.75 | $ 69 |
Weighted Average Remaining Contractual Life (Years) | 1 year 4 months 24 days | 2 years 4 months 24 days |
Long-Term Employee Related Be_2
Long-Term Employee Related Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Compensation Related Costs [Abstract] | |||
Deferred compensation plan, interest cost | $ 0.7 | $ 8.1 | $ 2.5 |
Deferred compensation plan for executives and outside directors, established January 1, 2003 [Member] | |||
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent, Excluded from the rabbi trust [Line Items] | |||
Total deferred compensation plan liabilities | 34.2 | 29.4 | |
Funds held in grantor's rabbi trust | 34.4 | 31.1 | |
Deferred compensation plan for executives, prior to January 1, 2003 [Member] | |||
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent, Excluded from the rabbi trust [Line Items] | |||
Total deferred compensation plan liabilities | $ 28.4 | $ 31.8 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies - Operating Lease Commitments (Details) - USD ($) | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,019 | $ 215,634,000 | ||
2,020 | 185,902,000 | ||
2,021 | 152,512,000 | ||
2,022 | 129,675,000 | ||
2,023 | 98,319,000 | ||
Thereafter | 281,482,000 | ||
Total future minimum lease payments | 1,063,524,000 | ||
Rental expense | 258,600,000 | $ 220,200,000 | $ 204,600,000 |
Remaining minimum payments under lease financing obligation | 44,000,000 | ||
Lease financing obligation balance at end of lease term | 21,100,000 | ||
Build-to-Suit Lease Arrangement [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Lease financing obligation, gross carrying value | 44,600,000 | 34,000,000 | |
Lease financing obligation, accumulated depreciation | 3,100,000 | $ 1,800,000 | |
Other Noncurrent Liabilities [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Lease financing obligation balance | $ 34,000,000 | ||
Maximum [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Duration of renew option | 57 years |
Dividend (Details)
Dividend (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Feb. 24, 2019USD ($)installment | Nov. 25, 2018USD ($) | Feb. 25, 2018USD ($) | Nov. 26, 2017USD ($) | Feb. 26, 2017USD ($) | May 29, 2016USD ($) | Nov. 25, 2018USD ($)installment | Nov. 26, 2017USD ($)installment | Nov. 27, 2016USD ($) | |
Subsequent Event [Line Items] | |||||||||
Cash dividend paid | $ 45,000 | $ 45,000 | $ 35,000 | $ 35,000 | $ 60,000 | $ 90,000 | $ 70,000 | $ 60,000 | |
Number of installments | installment | 2 | 2 | |||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividend declared | $ 110,000 | ||||||||
Number of installments | installment | 2 | ||||||||
Subsequent Event [Member] | Scenario, Forecast [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable | $ 55,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Gross Changes | $ (19,585) | $ 13,815 | $ (53,991) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (852) | 9,223 | 6,211 |
Total other comprehensive (loss) income, net of tax | (20,437) | 23,038 | (47,780) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (404,381) | (427,314) | (379,066) |
Gross Changes | (19,351) | 13,710 | (54,459) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (852) | 9,223 | 6,211 |
Total other comprehensive (loss) income, net of tax | (20,203) | 22,933 | (48,248) |
Ending Balance | (424,584) | (404,381) | (427,314) |
Pension and Postretirement Benefits Liability Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (232,181) | (252,027) | (236,340) |
Gross Changes | 4,336 | 30,125 | (22,925) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (1,178) | (10,279) | 7,238 |
Total other comprehensive (loss) income, net of tax | 3,158 | 19,846 | (15,687) |
Ending Balance | (229,023) | (232,181) | (252,027) |
Net Investment Hedges Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (55,618) | (18,757) | (18,247) |
Gross Changes | 21,280 | (59,945) | (829) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (5,549) | 23,084 | 319 |
Total other comprehensive (loss) income, net of tax | 15,731 | (36,861) | (510) |
Ending Balance | (39,887) | (55,618) | (18,757) |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (120,630) | (158,498) | (126,359) |
Gross Changes | (43,479) | 40,151 | (30,848) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | 5,487 | (2,283) | (1,291) |
Total other comprehensive (loss) income, net of tax | (37,992) | 37,868 | (32,139) |
Ending Balance | (158,622) | (120,630) | (158,498) |
Unrealized Gain (Loss) on Marketable Securities Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 4,048 | 1,968 | 1,880 |
Gross Changes | (1,488) | 3,379 | 143 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | 388 | (1,299) | (55) |
Total other comprehensive (loss) income, net of tax | (1,100) | 2,080 | 88 |
Ending Balance | 2,948 | 4,048 | 1,968 |
Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 9,538 | 9,433 | 8,965 |
Gross Changes | (234) | 105 | 468 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of tax | (234) | 105 | 468 |
Ending Balance | 9,304 | 9,538 | 9,433 |
Accumulated Other Comprehensive Income Loss Including Portion Attributable To Noncontrolling Interest [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (394,843) | (417,881) | (370,101) |
Gross Changes | (19,585) | 13,815 | (53,991) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (852) | 9,223 | 6,211 |
Total other comprehensive (loss) income, net of tax | (20,437) | 23,038 | (47,780) |
Ending Balance | $ (415,280) | $ (394,843) | $ (417,881) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2018 | Aug. 26, 2018 | May 27, 2018 | Feb. 25, 2018 | Nov. 26, 2017 | Aug. 27, 2017 | May 28, 2017 | Feb. 26, 2017 | Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Other Income and Expenses [Abstract] | |||||||||||
Foreign Exchange Management Gains (Losses) | $ 11,167 | $ (41,167) | $ 15,860 | ||||||||
Foreign Currency Transaction Gains (Losses) | (7,498) | 7,853 | (7,166) | ||||||||
Interest Income (Expense), Nonoperating, Net | 9,400 | 3,380 | 1,376 | ||||||||
Investment Income, Interest | 734 | 629 | 976 | ||||||||
Other Other Income (Expense) | 4,455 | 2,313 | 7,177 | ||||||||
Other income (expense), net | $ 17,214 | $ (3,032) | $ 13,653 | $ (9,577) | $ 5,421 | $ (14,734) | $ (18,087) | $ 408 | $ 18,258 | $ (26,992) | $ 18,223 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2018 | Aug. 26, 2018 | May 27, 2018 | Feb. 25, 2018 | Nov. 26, 2017 | Aug. 27, 2017 | May 28, 2017 | Feb. 26, 2017 | Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Income Tax Expense Reconciliation [Abstract] | |||||||||||
Income tax expense at U.S. federal statutory rate | $ 111,755 | $ 122,073 | $ 142,541 | ||||||||
State income taxes, net of U.S. federal impact | 11,102 | 7,598 | 6,943 | ||||||||
Change in valuation allowance | (9,239) | (9,624) | 0 | ||||||||
Impact of foreign operations | (21,674) | (50,650) | (28,727) | ||||||||
Reassessment of tax liabilities | (12,552) | (5,553) | (2,387) | ||||||||
Stock-based compensation | (10,715) | (5,602) | 0 | ||||||||
Deduction related to subsidiaries | 0 | 0 | (6,788) | ||||||||
Other, including non-deductible expenses | 2,742 | 5,983 | 4,469 | ||||||||
Impact of US Tax Act | 143,359 | 0 | 0 | ||||||||
Total | $ 38,145 | $ 10,299 | $ (1,320) | $ 167,654 | $ 21,748 | $ 27,631 | $ (13,847) | $ 28,693 | $ 214,778 | $ 64,225 | $ 116,051 |
Effective Income Tax Rate Reconciliation [Abstract] | |||||||||||
U.S. federal statutory rate (percent) | 22.40% | 35.00% | 35.00% | ||||||||
State income taxes, net of U.S. federal impact (percent) | 2.20% | 2.20% | 1.70% | ||||||||
Change in valuation allowance (percent) | (1.90%) | (2.80%) | 0.00% | ||||||||
Impact of foreign operations (percent) | (4.30%) | (14.50%) | (7.10%) | ||||||||
Reassessment of tax liabilities (percent) | (2.50%) | (1.60%) | (0.60%) | ||||||||
Stock-based compensation (percent) | (2.10%) | (1.60%) | 0.00% | ||||||||
Deduction related to subsidiaries (percent) | 0.00% | 0.00% | (1.70%) | ||||||||
Other, including non-deductible expenses (percent) | 0.50% | 1.70% | 1.20% | ||||||||
Impact of US Tax Act (percent) | 28.70% | 0.00% | 0.00% | ||||||||
Total | 43.00% | 18.40% | 28.50% |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Income (Loss) before income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 151,229 | $ 67,407 | $ 189,478 |
Foreign | 348,793 | 281,374 | 217,782 |
Total Income before Income Taxes | $ 500,022 | $ 348,781 | $ 407,260 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2018 | Aug. 26, 2018 | May 27, 2018 | Feb. 25, 2018 | Nov. 26, 2017 | Aug. 27, 2017 | May 28, 2017 | Feb. 26, 2017 | Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. Federal Current | $ 12,468 | $ 7,936 | $ 7,122 | ||||||||
U.S. Federal Deferred | 126,210 | 1,240 | 66,840 | ||||||||
U.S. Federal Total | 138,678 | 9,176 | 73,962 | ||||||||
U.S. State Current | 6,447 | 3,441 | 2,097 | ||||||||
U.S. State Deferred | 4,655 | 4,157 | 4,846 | ||||||||
U.S. State Total | 11,102 | 7,598 | 6,943 | ||||||||
Foreign Current | 61,605 | 53,334 | 40,754 | ||||||||
Foreign Deferred | 3,393 | (5,883) | (5,608) | ||||||||
Foreign Total | 64,998 | 47,451 | 35,146 | ||||||||
Consolidated Current | 80,520 | 64,711 | 49,973 | ||||||||
Deferred income taxes | 134,258 | (486) | 66,078 | ||||||||
Total | $ 38,145 | $ 10,299 | $ (1,320) | $ 167,654 | $ 21,748 | $ 27,631 | $ (13,847) | $ 28,693 | $ 214,778 | $ 64,225 | $ 116,051 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 25, 2018 | Nov. 26, 2017 |
Income Tax Disclosure [Abstract] | ||
Foreign tax credit carryforwards | $ 133,620 | $ 123,593 |
State net operating loss carryforwards | 9,708 | 8,302 |
Foreign net operating loss carryforwards | 52,327 | 59,157 |
Employee compensation and benefit plans | 144,597 | 214,798 |
Advance royalties | 22,366 | 46,757 |
Accrued liabilities | 22,119 | 29,169 |
Sales returns and allowances | 20,342 | 39,030 |
Inventory | 9,985 | 19,553 |
Property, plant and equipment | 11,380 | 8,826 |
Unrealized foreign exchange gains or losses | 5,467 | 23,058 |
Other | 9,749 | 18,197 |
Total gross deferred tax assets | 441,660 | 590,440 |
Less: Valuation allowance | (21,970) | (38,692) |
Deferred tax assets, net of valuation allowance | 419,690 | 551,748 |
U.S. Branches | (19,107) | (17,128) |
Residual tax liability on unremitted foreign earnings | (5,737) | 0 |
Total deferred tax liabilities | (24,844) | (17,128) |
Total net deferred tax assets | $ 394,846 | $ 534,620 |
Income Taxes - Summary of Opera
Income Taxes - Summary of Operating Loss Carryforwards (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | ||
Valuation Allowance [Line Items] | ||||
Balance at Beginning of Period | $ 38,692 | $ 68,212 | $ 75,753 | |
Changes in Related Gross Deferred Tax Asset | [1] | (480) | (10,219) | (5,027) |
Change / (Release) | (16,242) | (19,301) | (2,514) | |
Balance at End of Period | 21,970 | 38,692 | $ 68,212 | |
Domestic Tax Authority [Member] | ||||
Valuation Allowance [Line Items] | ||||
Balance at Beginning of Period | 1,520 | |||
Changes in Related Gross Deferred Tax Asset | 576 | |||
Change / (Release) | 0 | |||
Balance at End of Period | 2,096 | 1,520 | ||
Foreign Tax Authority [Member] | ||||
Valuation Allowance [Line Items] | ||||
Balance at Beginning of Period | 37,172 | |||
Changes in Related Gross Deferred Tax Asset | (1,056) | |||
Change / (Release) | (16,242) | |||
Balance at End of Period | $ 19,874 | $ 37,172 | ||
[1] | The charges to the accounts are for the purposes for which the allowances were created. |
Income Taxes - Unrecognized tax
Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Nov. 25, 2018 | Nov. 26, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Gross unrecognized tax benefits, beginning of period | $ 33,786 | $ 29,053 |
Increases related to current year tax positions | 3,657 | 4,779 |
Increases related to tax positions from prior years | 5,686 | 5,625 |
Decreases related to tax positions from prior years | (13,731) | (4,050) |
Settlement with tax authorities | 0 | 0 |
Lapses of statutes of limitation | (1,811) | (1,956) |
Other, including foreign currency translation | (993) | 335 |
Gross unrecognized tax benefits, end of period | $ 26,594 | $ 33,786 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2018 | Aug. 26, 2018 | May 27, 2018 | Feb. 25, 2018 | Nov. 26, 2017 | Aug. 27, 2017 | May 28, 2017 | Feb. 26, 2017 | Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Income Taxes [Line Items] | |||||||||||
Income tax expense | $ 38,145 | $ 10,299 | $ (1,320) | $ 167,654 | $ 21,748 | $ 27,631 | $ (13,847) | $ 28,693 | $ 214,778 | $ 64,225 | $ 116,051 |
Effective income tax rate | 43.00% | 18.40% | 28.50% | ||||||||
U.S. federal statutory rate (percent) | 22.40% | 35.00% | 35.00% | ||||||||
Impact resulting from favorable mix of earnings in jurisdictions with lower effective tax rates, amount | $ 32,000 | ||||||||||
Repatriation of foreign earnings, amount | 18,600 | ||||||||||
Change in valuation allowance | $ 9,239 | 9,624 | $ 0 | ||||||||
Reassessment of tax liabilities | 12,552 | 5,553 | 2,387 | ||||||||
Deduction related to subsidiaries | $ 0 | 0 | 6,788 | ||||||||
Blended U.S. statutory federal income tax rate | 22.40% | ||||||||||
Impact of US Tax Act | $ 143,359 | 0 | 0 | ||||||||
Charge related to re-measurement of deferred tax assets and liabilities | 95,600 | ||||||||||
One-time U.S. transition tax on undistributed foreign earnings | 37,500 | ||||||||||
Tax benefit related to provisional amount on re-measurement of deferred tax assets and liabilities | (10,300) | ||||||||||
Foreign net operating loss carryforwards | 52,327 | 59,157 | 52,327 | 59,157 | |||||||
Undistributed earnings of foreign subsidiaries | 264,000 | 264,000 | |||||||||
Deferred tax expense related to foreign and state tax costs | 10,300 | 10,300 | |||||||||
Unrecognized tax benefits | 26,594 | 33,786 | 26,594 | 33,786 | 29,053 | ||||||
Unrecognized tax benefits that would impact effective tax rate | 24,200 | 28,100 | 24,200 | 28,100 | |||||||
Significant change in unrecognized tax benefits is reasonably possible, maximum | 1,200 | 1,200 | |||||||||
Valuation Allowance of Deferred Tax Assets [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Change / (Release) | (16,242) | (19,301) | $ (2,514) | ||||||||
Domestic Tax Authority [Member] | Valuation Allowance of Deferred Tax Assets [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Change / (Release) | 0 | ||||||||||
Foreign Tax Authority [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Foreign net operating loss carryforwards | 51,400 | 51,400 | |||||||||
Foreign operating loss | 192,400 | 192,400 | |||||||||
Deferred tax assets, subject to expiration | 91,400 | 91,400 | |||||||||
Deferred tax assets, not subject to expiration | 101,000 | 101,000 | |||||||||
Penalties and interest accrued | $ 2,700 | $ 2,500 | 2,700 | $ 2,500 | |||||||
Foreign Tax Authority [Member] | Valuation Allowance of Deferred Tax Assets [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Change / (Release) | $ (16,242) |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Levi Strauss Foundation [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Donation | $ 7.5 | $ 7.3 | $ 6.9 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2018USD ($) | Aug. 26, 2018USD ($) | May 27, 2018USD ($) | Feb. 25, 2018USD ($) | Nov. 26, 2017USD ($) | Aug. 27, 2017USD ($) | May 28, 2017USD ($) | Feb. 26, 2017USD ($) | Nov. 25, 2018USD ($)Regional_Segments | Nov. 26, 2017USD ($) | Nov. 27, 2016USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | Regional_Segments | 3 | ||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | $ 1,591,860 | $ 1,394,153 | $ 1,245,742 | $ 1,343,685 | $ 1,465,793 | $ 1,268,391 | $ 1,067,855 | $ 1,101,991 | $ 5,575,440 | $ 4,904,030 | $ 4,552,739 |
Total operating income | 127,828 | 158,609 | 76,524 | 174,099 | 149,858 | 146,320 | 62,651 | 108,340 | 537,060 | 467,169 | 462,207 |
Interest expense | (9,637) | (15,697) | (14,465) | (15,497) | (16,298) | (14,476) | (17,895) | (19,934) | (55,296) | (68,603) | (73,170) |
Loss on early extinguishment of debt | 0 | 0 | (22,793) | 0 | 0 | (22,793) | 0 | ||||
Other income (expense), net | 17,214 | (3,032) | 13,653 | (9,577) | 5,421 | (14,734) | (18,087) | 408 | 18,258 | (26,992) | 18,223 |
Income before income taxes | 135,405 | $ 139,880 | $ 75,712 | $ 149,025 | 138,981 | $ 117,110 | $ 3,876 | $ 88,814 | 500,022 | 348,781 | 407,260 |
Share-based compensation expense | 89,800 | 57,100 | 20,300 | ||||||||
Total depreciation and amortization expense | 120,205 | 117,387 | 103,878 | ||||||||
Trade receivables, net | 534,164 | 485,485 | 534,164 | 485,485 | |||||||
Inventories | 883,773 | 759,396 | 883,773 | 759,396 | |||||||
All other assets | 2,124,723 | 2,112,957 | 2,124,723 | 2,112,957 | |||||||
Total assets | 3,542,660 | 3,357,838 | 3,542,660 | 3,357,838 | |||||||
Total net deferred tax assets | 397,791 | 537,923 | 397,791 | 537,923 | 523,101 | ||||||
Long-Lived Assets | 490,472 | 454,316 | 490,472 | 454,316 | 419,690 | ||||||
United States | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 2,546,907 | 2,347,860 | 2,302,668 | ||||||||
Total net deferred tax assets | 313,644 | 450,270 | 313,644 | 450,270 | 444,295 | ||||||
Long-Lived Assets | 335,705 | 312,656 | 335,705 | 312,656 | 311,358 | ||||||
Foreign countries | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 3,028,533 | 2,556,170 | 2,250,071 | ||||||||
Total net deferred tax assets | 84,147 | 87,653 | 84,147 | 87,653 | 78,806 | ||||||
Long-Lived Assets | 154,767 | 141,660 | 154,767 | 141,660 | 108,332 | ||||||
Restatement Adjustment [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Share-based compensation expense | 8,300 | ||||||||||
Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Total operating income | 930,856 | 806,229 | 743,493 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Total operating income | 393,796 | 339,060 | 281,286 | ||||||||
Restructuring-related charges | 0 | 0 | 7,195 | ||||||||
Other corporate staff costs and expenses | 393,796 | 339,060 | 274,091 | ||||||||
Total depreciation and amortization expense | 43,319 | 52,270 | 52,772 | ||||||||
Trade receivables, net | 14,084 | 10,937 | 14,084 | 10,937 | |||||||
Inventories | 78,750 | 76,002 | 78,750 | 76,002 | |||||||
All other assets | 2,124,723 | 2,112,957 | 2,124,723 | 2,112,957 | |||||||
Americas [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Benefit from resolution of vendor dispute | 7,000 | ||||||||||
Total depreciation and amortization expense | 43,478 | 37,802 | 30,322 | ||||||||
Trade receivables, net | 362,825 | 322,712 | 362,825 | 322,712 | |||||||
Inventories | 468,258 | 402,151 | 468,258 | 402,151 | |||||||
All other assets | 0 | 0 | 0 | 0 | |||||||
Americas [Member] | Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 3,042,664 | 2,774,050 | 2,683,008 | ||||||||
Total operating income | 551,380 | 529,310 | 507,802 | ||||||||
Europe [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Gain on disposal of assets | 6,100 | ||||||||||
Total depreciation and amortization expense | 22,658 | 17,479 | 12,574 | ||||||||
Trade receivables, net | 102,989 | 99,807 | 102,989 | 99,807 | |||||||
Inventories | 188,430 | 162,391 | 188,430 | 162,391 | |||||||
All other assets | 0 | 0 | 0 | 0 | |||||||
Europe [Member] | Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 1,646,236 | 1,312,276 | 1,091,362 | ||||||||
Total operating income | 292,903 | 198,662 | 154,829 | ||||||||
Asia Pacific [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Total depreciation and amortization expense | 10,750 | 9,836 | 8,210 | ||||||||
Trade receivables, net | 54,266 | 52,029 | 54,266 | 52,029 | |||||||
Inventories | 148,335 | 118,852 | 148,335 | 118,852 | |||||||
All other assets | $ 0 | $ 0 | 0 | 0 | |||||||
Asia Pacific [Member] | Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 886,540 | 817,704 | 778,369 | ||||||||
Total operating income | $ 86,573 | $ 78,257 | $ 80,862 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 25, 2018 | Aug. 26, 2018 | May 27, 2018 | Feb. 25, 2018 | Nov. 26, 2017 | Aug. 27, 2017 | May 28, 2017 | Feb. 26, 2017 | Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | |
Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Net revenues | $ 1,591,860 | $ 1,394,153 | $ 1,245,742 | $ 1,343,685 | $ 1,465,793 | $ 1,268,391 | $ 1,067,855 | $ 1,101,991 | $ 5,575,440 | $ 4,904,030 | $ 4,552,739 |
Cost of goods sold | 744,448 | 652,591 | 574,865 | 605,561 | 682,638 | 611,762 | 509,463 | 537,438 | 2,577,465 | 2,341,301 | 2,223,727 |
Gross profit | 847,412 | 741,562 | 670,877 | 738,124 | 783,155 | 656,629 | 558,392 | 564,553 | 2,997,975 | 2,562,729 | 2,329,012 |
Selling, general and administrative expenses | 719,584 | 582,953 | 594,353 | 564,025 | 633,297 | 510,309 | 495,741 | 456,213 | 2,460,915 | 2,095,560 | 1,866,805 |
Operating income | 127,828 | 158,609 | 76,524 | 174,099 | 149,858 | 146,320 | 62,651 | 108,340 | 537,060 | 467,169 | 462,207 |
Interest expense | (9,637) | (15,697) | (14,465) | (15,497) | (16,298) | (14,476) | (17,895) | (19,934) | (55,296) | (68,603) | (73,170) |
Loss on early extinguishment of debt | 0 | 0 | (22,793) | 0 | 0 | (22,793) | 0 | ||||
Other income (expense), net | 17,214 | (3,032) | 13,653 | (9,577) | 5,421 | (14,734) | (18,087) | 408 | 18,258 | (26,992) | 18,223 |
Income before income taxes | 135,405 | 139,880 | 75,712 | 149,025 | 138,981 | 117,110 | 3,876 | 88,814 | 500,022 | 348,781 | 407,260 |
Income tax expense (benefit) | 38,145 | 10,299 | (1,320) | 167,654 | 21,748 | 27,631 | (13,847) | 28,693 | 214,778 | 64,225 | 116,051 |
Net (loss) income | 97,260 | 129,581 | 77,032 | (18,629) | 117,233 | 89,479 | 17,723 | 60,121 | 285,244 | 284,556 | 291,209 |
Net (income) loss attributable to noncontrolling interest | (162) | 543 | (2,100) | (383) | (1,481) | (1,487) | (207) | 22 | (2,102) | (3,153) | (157) |
Net income attributable to Levi Strauss & Co. | $ 97,098 | $ 130,124 | $ 74,932 | $ (19,012) | $ 115,752 | 87,992 | $ 17,516 | $ 60,143 | $ 283,142 | 281,403 | $ 291,052 |
Restatement Adjustment [Member] | Recognition of Stock-based Compensation Expense [Member] | |||||||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Selling, general and administrative expenses | 9,500 | 8,300 | |||||||||
Net income attributable to Levi Strauss & Co. | $ (5,800) | $ (5,100) |
Schedule II_ Valuation and Q_2
Schedule II: Valuation and Qualifying Acounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 25, 2018 | Nov. 26, 2017 | Nov. 27, 2016 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 11,726 | $ 11,974 | $ 11,025 | |
Additions Charged to Expenses/Net Sales/(Releases) to Tax Expense | 2,284 | 1,645 | 2,195 | |
Release | [1] | 3,973 | 1,893 | 1,246 |
Balance at End of Period | 10,037 | 11,726 | 11,974 | |
Sales Returns [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 47,401 | 36,457 | 34,021 | |
Additions Charged to Expenses/Net Sales/(Releases) to Tax Expense | 245,665 | 211,741 | 195,718 | |
Release | [1] | 239,382 | 200,797 | 193,282 |
Balance at End of Period | 53,684 | 47,401 | 36,457 | |
Sales Discounts and Incentives [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 135,139 | 105,477 | 86,274 | |
Additions Charged to Expenses/Net Sales/(Releases) to Tax Expense | 357,929 | 342,169 | 325,843 | |
Release | [1] | 372,364 | 312,507 | 306,640 |
Balance at End of Period | 120,704 | 135,139 | 105,477 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 38,692 | 68,212 | 75,753 | |
Additions Charged to Expenses/Net Sales/(Releases) to Tax Expense | (16,242) | (19,301) | (2,514) | |
Release | [1] | 480 | 10,219 | 5,027 |
Balance at End of Period | $ 21,970 | $ 38,692 | $ 68,212 | |
[1] | The charges to the accounts are for the purposes for which the allowances were created. |