Cover Page
Cover Page - shares | 3 Months Ended | |
Feb. 28, 2021 | Apr. 01, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-06631 | |
Entity Registrant Name | LEVI STRAUSS & CO | |
Amendment Flag | false | |
Current Fiscal Year End Date | --11-28 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000094845 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-0905160 | |
Entity Address, Address Line One | 1155 Battery Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94111 | |
City Area Code | 415 | |
Local Phone Number | 501-6000 | |
Title of 12(b) Security | Class A Common Stock, $0.001 par value per share | |
Trading Symbol | LEVI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 83,264,761 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 317,099,669 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 29, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 1,973,602 | $ 1,497,155 |
Short-term investments | 94,273 | 96,531 |
Trade receivables, net | 600,271 | 540,227 |
Inventories | 835,357 | 817,692 |
Other current assets | 192,092 | 174,636 |
Total current assets | 3,695,595 | 3,126,241 |
Property, plant and equipment, net | 440,857 | 454,532 |
Goodwill | 267,072 | 264,768 |
Other intangible assets, net | 47,274 | 47,426 |
Deferred tax assets, net | 517,202 | 497,556 |
Operating lease right-of-use assets, net | 1,006,107 | 988,801 |
Other non-current assets | 262,087 | 261,917 |
Total assets | 6,236,194 | 5,641,241 |
Current Liabilities: | ||
Short-term debt | 8,059 | 17,631 |
Current maturities of long-term debt | 789,283 | 0 |
Accounts payable | 420,616 | 375,450 |
Accrued salaries, wages and employee benefits | 165,855 | 179,081 |
Restructuring liabilities | 45,300 | 54,723 |
Accrued income taxes | 29,206 | 21,986 |
Accrued sales returns and allowances | 193,416 | 185,868 |
Short-term operating lease liabilities | 254,676 | 237,142 |
Other accrued liabilities | 417,321 | 477,001 |
Total current liabilities | 2,323,732 | 1,548,882 |
Long-term debt | 1,262,704 | 1,546,700 |
Postretirement medical benefits | 58,992 | 60,249 |
Pension liability | 168,549 | 168,721 |
Long-term employee related benefits | 97,719 | 94,654 |
Long-term operating lease liabilities | 856,103 | 858,293 |
Other long-term liabilities | 61,411 | 64,267 |
Total liabilities | 4,829,210 | 4,341,766 |
Commitments and contingencies | ||
Levi Strauss & Co. stockholders’ equity | ||
Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 80,774,783 shares and 74,352,481 shares issued and outstanding as of February 28, 2021 and November 29, 2020, respectively; and 422,000,000 Class B shares authorized, 319,050,011 shares and 323,547,674 shares issued and outstanding, as of February 28, 2021 and November 29, 2020, respectively | 400 | 398 |
Additional paid-in capital | 609,068 | 626,243 |
Accumulated other comprehensive loss | (443,276) | (441,446) |
Retained earnings | 1,240,792 | 1,114,280 |
Total stockholders’ equity | 1,406,984 | 1,299,475 |
Total liabilities and stockholders’ equity | $ 6,236,194 | $ 5,641,241 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 28, 2021 | Nov. 29, 2020 |
Common Class A [Member] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 80,774,783 | 74,352,481 |
Common stock, shares outstanding | 80,774,783 | 74,352,481 |
Common Class B [Member] | ||
Common stock, shares authorized | 422,000,000 | 422,000,000 |
Common stock, shares issued | 319,050,011 | 323,547,674 |
Common stock, shares outstanding | 319,050,011 | 323,547,674 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Income Statement [Abstract] | ||
Net revenues | $ 1,305,602 | $ 1,506,126 |
Cost of goods sold | 545,573 | 666,799 |
Gross profit | 760,029 | 839,327 |
Selling, general and administrative expenses | 582,906 | 660,545 |
Operating income | 177,123 | 178,782 |
Interest expense | (23,310) | (16,654) |
Other income, net | 858 | 2,700 |
Income before income taxes | 154,671 | 164,828 |
Income tax expense | 12,167 | 12,139 |
Net income | $ 142,504 | $ 152,689 |
Earnings per common share attributable to common stockholders: | ||
Basic (usd per share) | $ 0.36 | $ 0.39 |
Diluted (usd per share) | $ 0.35 | $ 0.37 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 399,541,735 | 396,216,057 |
Diluted (in shares) | 411,872,771 | 410,068,373 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 142,504 | $ 152,689 |
Other comprehensive income, before related income taxes: | ||
Pension and postretirement benefits | 2,938 | 3,591 |
Derivative instruments | (17,315) | 15,405 |
Foreign currency translation gains (losses) | 10,941 | (8,133) |
Unrealized gains on marketable securities | 401 | 1,556 |
Total other comprehensive (loss) income, before related income taxes | (3,035) | 12,419 |
Income taxes expense related to items of other comprehensive income | 1,203 | (5,723) |
Comprehensive income, net of income taxes | $ 140,672 | $ 159,385 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative effect of adoption of new accounting standards | Class A & Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative effect of adoption of new accounting standards | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative effect of adoption of new accounting standards | Noncontrolling Interest |
Beginning balance at Nov. 24, 2019 | $ 1,571,557 | $ 5,264 | $ 394 | $ 657,659 | $ 1,310,464 | $ 59,708 | $ (404,986) | $ (54,444) | $ 8,026 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 152,689 | 152,689 | |||||||
Other comprehensive income/loss, net of tax | 6,696 | 6,696 | |||||||
Stock-based compensation and dividends, net | 17,535 | 5 | 17,530 | ||||||
Employee stock purchase plan | 2,030 | 2,030 | 0 | ||||||
Repurchase of common stock | (37,071) | (37,071) | |||||||
Shares surrendered for tax withholdings on equity awards | (75,243) | (75,243) | |||||||
Changes in ownership of noncontrolling interest | (16,698) | (8,672) | (8,026) | ||||||
Cash dividends declared (in usd per share) | (31,930) | (31,930) | |||||||
Ending balance at Feb. 23, 2020 | 1,594,829 | 399 | 601,976 | 1,445,188 | (452,734) | 0 | |||
Beginning balance at Nov. 29, 2020 | 1,299,475 | 398 | 626,243 | 1,114,280 | (441,446) | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 142,504 | 142,504 | |||||||
Other comprehensive income/loss, net of tax | (1,830) | (1,830) | |||||||
Stock-based compensation and dividends, net | 6,716 | 2 | 6,714 | 0 | |||||
Employee stock purchase plan | 1,929 | 1,929 | |||||||
Shares surrendered for tax withholdings on equity awards | (25,818) | (25,818) | |||||||
Cash dividends declared (in usd per share) | (15,992) | (15,992) | |||||||
Ending balance at Feb. 28, 2021 | $ 1,406,984 | $ 400 | $ 609,068 | $ 1,240,792 | $ (443,276) | $ 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.04 | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Cash Flows from Operating Activities: | ||
Net income | $ 142,504 | $ 152,689 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 35,469 | 35,974 |
Stock-based compensation | 6,716 | 17,535 |
Benefit from deferred income taxes | (18,786) | (15,818) |
Other, net | 6,725 | 5,270 |
Change in operating assets and liabilities, net of effect of acquisition: | ||
Trade receivables | (56,674) | 67,767 |
Inventories | (13,901) | 41,247 |
Accounts payable | 45,038 | (59,757) |
Accrued salaries, wages and employee benefits and long-term employee related benefits | (13,885) | (40,527) |
Other current and non-current assets | (36,137) | (28,083) |
Other current and long-term liabilities | (27,589) | 21,586 |
Net cash provided by operating activities | 69,480 | 197,883 |
Cash Flows from Investing Activities: | ||
Purchases of property, plant and equipment | (36,986) | (44,424) |
Payments for business acquisition | 0 | (52,201) |
Proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting | 78 | (19,326) |
Payments to acquire short-term investments | (30,915) | (30,121) |
Proceeds from sale, maturity and collection of short-term investments | 32,930 | 26,791 |
Net cash used for investing activities | (34,893) | (119,281) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of long-term debt | 500,000 | 0 |
Other short-term borrowings, net | (9,622) | 12,021 |
Payment of debt issuance and refinancing costs | (10,114) | 0 |
Proceeds from issuance of common stock and employee stock purchase | 1,929 | 2,030 |
Repurchase of common stock | 0 | (30,074) |
Repurchase of shares surrendered for tax withholdings on equity awards | (25,818) | (75,242) |
Payments to noncontrolling interests | 0 | (14,825) |
Dividend to stockholders | (15,992) | (31,930) |
Other financing, net | (715) | 0 |
Net cash provided by (used for) financing activities | 439,668 | (138,020) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 2,191 | (1,270) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 476,446 | (60,688) |
Beginning cash and cash equivalents, and restricted cash | 1,497,648 | 934,753 |
Ending cash and cash equivalents, and restricted cash | 1,974,094 | 874,065 |
Less: Ending restricted cash | (492) | (501) |
Ending cash and cash equivalents | 1,973,602 | 873,564 |
Noncash Investing and Financing Activity: | ||
Property, plant and equipment acquired and not yet paid at end of period | 19,201 | 12,089 |
Realized (gain) loss on foreign currency contracts not yet settled at end of period | 0 | (17,338) |
Repurchase of common stock not yet settled at end of period | 0 | 6,997 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest during the period | 846 | 818 |
Cash paid for income taxes during the period, net of refunds | $ 9,991 | $ 19,636 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Levi Strauss & Co. (the "Company") is one of the world’s largest brand-name apparel companies. The Company designs, markets and sells – directly or through third parties and licensees – products that include jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear and related accessories for men, women and children around the world under the Levi’s ® , Dockers ® , Signature by Levi Strauss & Co.™ and Denizen ® brands. The Company operates its business through three geographic regions: Americas, Europe and Asia. Basis of Presentation and Principles of Consolidation The unaudited consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries are prepared in conformity with generally accepted accounting principles in the United States ("U.S. GAAP") for interim financial information. In the opinion of management, all adjustments necessary for a fair statement of the financial position and the results of operations for the periods presented have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended November 29, 2020, included in the Company's 2020 Annual Report on Form 10-K. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. Management believes the disclosures are adequate to make the information presented in the unaudited consolidated financial statements not misleading. The results of operations for the three months ended February 28, 2021 may not be indicative of the results to be expected for any other interim period or the year ending November 28, 2021. The Company’s fiscal year ends on the last Sunday of November in each year, although the fiscal years of certain foreign subsidiaries end on November 30. Each quarter of both fiscal years 2021 and 2020 consists of 13 weeks, with the exception of the fourth quarter of 2020, which consisted of 14 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters. Impact of COVID-19 on the Business In fiscal year 2020, the COVID-19 pandemic materially impacted the Company's business and results of operations. In the first quarter of fiscal year 2020, the impact of the COVID-19 pandemic was minimal, as temporary store closures were primarily within China. During the second quarter of fiscal year 2020, the World Health Organization declared COVID-19 a global pandemic and government authorities around the world imposed lockdowns and restrictions. As a result, substantially all company-operated stores and third-party retail locations were temporarily closed, and $242.0 million in incremental charges were recognized, primarily consisting of $67.4 million of restructuring charges, COVID-19 related inventory costs of $86.6 million, and charges for customer receivables, asset impairments and other related charges of $88.0 million. During the second half of fiscal year 2020, as global management of the COVID-19 pandemic evolved and government restrictions were removed or lightened, company-operated and third-party retail locations reopened and substantially all stores were open by the end of the third quarter. In the fourth quarter of fiscal year 2020, a global resurgence in COVID-19 cases led to the temporary closure of some of the Company's stores, yet overall operations improved from when initial estimates were made, resulting in the reduction to some of the inventory and receivable related charges initially recognized in the second quarter. In the fourth quarter, the Company recognized additional restructuring charges as a result of the continuation of the restructuring initiative. As a result, $250.0 million in total charges were recognized during fiscal year 2020, consisting of $90.4 million of restructuring charges, COVID-19 related inventory costs of $68.5 million, and charges for customer receivables, asset impairments and other related charges of $91.1 million. The COVID-19 pandemic continued to impact the Company's business in the first quarter of 2021, primarily through reduced traffic and closures of company-operated and third-party retail locations for portions of the quarter in certain markets, including approximately one-third of the Company's store network in Europe. As of the end of the first quarter of fiscal 2021, approximately 85% of company-operated stores were open for either in-store or curbside service. The Company assessed the impacts of the pandemic on the estimates and assumptions used in preparing these consolidated financial statements. The estimates and assumptions used in these assessments were based on management’s judgment and may be subject to change as new events occur and additional information is obtained. In particular, significant uncertainty remains about the duration and extent of the impact of the COVID-19 pandemic and its resulting impact on global economic conditions. If economic conditions caused by the pandemic do not recover as currently estimated by management, the Company’s financial condition, cash flows and results of operations may be further materially impacted. See below for areas that required judgments and estimates as a result of COVID-19. Inventory Valuation and Adverse Purchase Commitments The Company values inventory at the lower of cost or net realizable value. Net realizable value is determined by estimating expected selling prices based on anticipated recovery rates for slow-moving and obsolete inventory and other factors, such as market conditions, expected channel of distribution and current consumer demand and preferences. The Company also has minimum inventory purchase commitments, including fabric commitments, with suppliers that secure a portion of material needs for future seasons. In light of the COVID-19 pandemic and in response to decreased demand, some of the Company's orders were canceled and a charge for estimated adverse purchase commitments was recorded in fiscal year 2020. During the first quarter of fiscal 2021, the Company recorded a net reduction of $6.5 million in its charge for inventory purchase commitments based on updated demand and actual claims received from suppliers. As of February 28, 2021 and November 29, 2020, adverse purchase commitments of $16.6 million and $25.5 million, respectively, which primarily relate to fabric liabilities as a result of the COVID-19 pandemic, were included in "Other accrued liabilities" in the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable are recorded net of an allowance for credit losses. The Company estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated bankruptcies, customer-specific circumstances and an evaluation of current economic conditions. The allowance for credit losses was $13.9 million and $14.7 million as of February 28, 2021 and November 29, 2020, respectively. Long-Lived Assets The Company reviews its other long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may be impaired. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows and other quantitative and qualitative factors. Expected future cash flows decreased due to the anticipated COVID-19 related impact on foot traffic and consumer spending trends. As a result, the Company recorded $3.1 million in impairment charges in the three-month period ended February 28, 2021 related to the impairment of certain store right-of-use and other store assets. No impairment charges were recorded in the three-month period ended February 23, 2020. Property, plant and equipment, net includes accumulated depreciation of $1.1 billion and $1.1 billion as of February 28, 2021 and November 29, 2020, respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. As a result of uncertainty and frequently changing information regarding the COVID-19 pandemic and its impact on global economic conditions, estimates may change frequently and in the near term. The Jeans Company Acquisition In December 2019, the Company completed an acquisition of all operating assets related to Levi’s ® and Dockers ® brands from The Jeans Company ("TJC"), the Company's distributor in Chile, Peru and Bolivia, for $52.2 million in cash, plus transaction costs. This includes 78 Levi’s ® and Dockers ® retail stores and one e-commerce site, distribution with the region’s leading multi-brand retailers, and the logistical operations within these markets. The total fair value of assets acquired was $52.2 million and include goodwill, inventory, intangible and fixed assets. The goodwill and intangibles recognized as a result of the acquisition were $22.8 million and $9.2 million, respectively. Share Repurchases In January 2020, the Company's Board of Directors (the "Board") approved a share repurchase program that authorizes the repurchase of up to $100.0 million of the Company's Class A common stock. During the three months ended February 23, 2020, 1.9 million shares were repurchased for $37.0 million, plus broker's commissions, in the open market. The Company accounts for share repurchases by charging the excess of repurchase price over the repurchased Class A common stock's par value entirely to retained earnings. All repurchased shares are retired and become authorized but unissued shares. The Company accrues for the shares purchased under the share repurchase plan based on the trade date. The Company may terminate or limit the share repurchase program at any time. Noncontrolling Interest In January 2020, the Company completed an all cash tender offer for the acquisition of the remaining 16.4% minority interest shares of Levi Strauss Japan K.K.'s common stock for a total purchase price of $13.6 million, plus transaction costs. As a result, Levi Strauss Japan K.K. has become a wholly owned subsidiary. Prior to this transaction, the noncontrolling interest included a 16.4% minority interest of third parties in Levi Strauss Japan K.K., the Company's Japanese subsidiary. Reclassification Certain insignificant amounts on the consolidated statements of cash flow have been conformed to the February 28, 2021 presentation. Changes in Accounting Principles • In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The Company adopted this standard in the first quarter of fiscal 2021. The adoption of this standard did not have an impact on the Company's consolidated financial statements and related disclosures. • 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. The Company adopted this standard in the first quarter of fiscal 2021 on a prospective basis. The adoption of this standard did not have an impact on the Company's consolidated financial statements and related disclosures. Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the 2020 Annual Report on Form 10-K, except for the following: First Quarter 2023 • In March 2020 and January 2021, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform: Scope , respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures, if adopted. |
Inventories
Inventories | 3 Months Ended |
Feb. 28, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The following table presents the Company's inventory balances: February 28, November 29, (Dollars in thousands) Raw materials $ 4,541 $ 3,882 Work-in-progress 4,117 4,725 Finished goods 826,699 809,085 Total inventories $ 835,357 $ 817,692 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company’s financial instruments that are carried at fair value: February 28, 2021 November 29, 2020 Fair Value Estimated Fair Value Estimated Fair Value Level 1 Inputs (1) Level 2 Inputs (2) Fair Value Level 1 Inputs (1) Level 2 Inputs (2) (Dollars in thousands) Financial assets carried at fair value Rabbi trust assets $ 73,645 $ 73,645 $ — $ 71,184 $ 71,184 $ — Short-term investments in marketable securities 94,273 94,273 96,531 — 96,531 Derivative instruments (3) 4,872 — 4,872 4,904 — 4,904 Total $ 172,790 $ 73,645 $ 99,145 $ 172,619 $ 71,184 $ 101,435 Financial liabilities carried at fair value Derivative instruments (3) 17,467 — 17,467 10,735 — 10,735 Total $ 17,467 $ — $ 17,467 $ 10,735 $ — $ 10,735 _____________ (1) Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities. (2) Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly, and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. Short-term investments in marketable securities consist of fixed income securities. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3) The Company’s cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 4 for more information. The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost: February 28, 2021 November 29, 2020 Carrying Estimated Fair Carrying Estimated Fair (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1)(2) $ 1,003,271 $ 1,024,236 $ 990,280 $ 1,016,169 3.375% senior notes due 2027 (1) 581,579 601,627 564,312 583,227 3.50% senior notes due 2031 (1) 493,170 494,401 — — Short-term borrowings 8,081 8,081 17,648 17,648 Total $ 2,086,101 $ 2,128,345 $ 1,572,240 $ 1,617,044 _____________ (1) Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. (2) Subsequent to quarter end, on March 4, 2021, the Company used the proceeds from the 3.50% senior notes due 2031 plus cash on hand to redeem $800.0 million of the 5.00% senior notes due 2025. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Designated Cash Flow Hedges The Company actively manages the risk of changes in functional currency equivalent cash flows resulting from anticipated non-functional currency denominated purchases and sales. The Company’s global sourcing organization uses the U.S. dollar as its functional currency and is primarily exposed to changes in functional currency equivalent cash flows from anticipated inventory purchases, as it procures inventory on behalf of subsidiaries with the Euro, Australian Dollar and Japanese Yen functional currencies. The Mexico subsidiary uses the Mexican Peso as its functional currency and is exposed as it procures inventory in the U.S. Dollar. Additionally, a European subsidiary uses Euros as its functional currency and is exposed to anticipated non-functional currency denominated sales. The Company manages these risks by using currency forward contracts formally designated and effective as cash flow hedges. Hedge effectiveness is generally determined by evaluating the ability of a hedging instrument's cumulative change in fair value to offset the cumulative change in the present value of expected cash flows on the underlying exposures. For forward contracts, forward points are excluded from the determination of hedge effectiveness and are included in cost of goods sold for hedges of anticipated inventory purchases and in net revenues for hedges of anticipated sales on a straight-line basis over the life of the contract. In each accounting period, differences between the change in fair value of the forward points and the amount recognized on a straight-line basis is recognized in other comprehensive income. Net Investment Hedges The Company designates certain non-derivative instruments as net investment hedges to hedge the Company's net investment position in certain of its foreign subsidiaries. For these instruments, the Company documents the hedge designation by identifying the hedging instrument, the nature of the risk being hedged and the approach for measuring hedge effectiveness. The ineffective portions of these hedges are recorded in "Other income, net" in the Company's consolidated statements of income. The effective portions of these hedges are recorded in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets and are not reclassified to earnings until the related net investment position has been liquidated. Non-designated Cash Flow Hedges The Company enters into derivative instruments not designated as hedges. These derivative instruments are not speculative and are used to manage the Company’s exposure to certain product sourcing activities, some intercompany sales, foreign subsidiaries' royalty payments, interest payments, earnings repatriations, net investment in foreign operations and funding activities but the Company has not elected to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in "Other income, net" in the Company’s consolidated statements of income. As of February 28, 2021, the Company had forward foreign exchange contracts derivatives that were not designated as hedges in qualifying hedging relationships, of which $617.2 million were contracts to buy and $369.6 million were contracts to sell various foreign currencies. These contracts are at various exchange rates and expire at various dates through February 2022. The table below provides data about the carrying values of derivative and non-derivative instruments: February 28, 2021 November 29, 2020 Assets (Liabilities) Derivative Assets (Liabilities) Derivative Carrying Carrying Carrying Carrying (Dollars in thousands) Derivatives designated as hedging instruments Foreign exchange risk cash flow hedges (1) $ 3,390 $ — $ 3,390 $ 1,489 $ — $ 1,489 Foreign exchange risk cash flow hedges (2) — (12,307) (12,307) — (5,036) (5,036) Total $ 3,390 $ (12,307) $ 1,489 $ (5,036) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 4,872 $ (3,390) $ 1,482 $ 4,902 $ (1,487) $ 3,415 Forward foreign exchange contracts (2) 12,306 (17,466) (5,160) 5,035 (10,734) (5,699) Total $ 17,178 $ (20,856) $ 9,937 $ (12,221) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (578,028) $ — $ (565,820) _____________ (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: February 28, 2021 November 29, 2020 Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts (Dollars in thousands) Foreign exchange risk contracts and forward foreign exchange contracts Financial assets $ 20,570 $ (6,671) $ 13,899 $ 11,426 $ (6,578) $ 4,848 Financial liabilities (33,165) 6,671 (26,494) (17,257) 6,578 (10,679) Total $ (12,595) $ (5,831) The table below provides data about the amount of gains and losses related to derivative instruments designated as cash flow hedges and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets: Amount of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Net Income (1) As of As of Three Months Ended February 28, February 23, (Dollars in thousands) Foreign exchange risk contracts $ (17,002) $ (11,896) $ (1,878) $ 3,065 Realized forward foreign exchange swaps (2) 4,637 4,637 — — Yen-denominated Eurobonds (19,811) (19,811) — — Euro-denominated senior notes (90,944) (78,736) — — Cumulative income taxes 34,243 31,350 — — Total $ (88,877) $ (74,456) _____________ (1) Amounts reclassified from AOCI were classified as net revenues and cost of goods sold on the consolidated statements of income. (2) Prior to and during 2005, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCI and are not reclassified to earnings until the related net investment position has been liquidated. There was no hedge ineffectiveness for the three months ended February 28, 2021. Within the next 12 months, a $19.3 million loss from cash flow hedges is expected to be reclassified from AOCI into net income. The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the consolidated statements of income: Three Months Ended February 28, February 23, (Dollars in thousands) Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 943 $ (1,245) Cost of goods sold $ (2,821) $ 4,310 The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other income, net" in the Company's consolidated statements of income: Three Months Ended February 28, February 23, (Dollars in thousands) Realized gain (loss) $ 1,749 $ (3,433) Unrealized (loss) gain (1,382) 1,712 Total $ 367 $ (1,721) |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Feb. 28, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities | OTHER ACCRUED LIABILITIES The following table presents the Company's other accrued liabilities: February 28, November 29, (Dollars in thousands) Other accrued liabilities Accrued advertising and promotion $ 62,747 $ 80,272 Accrued interest payable 26,367 8,235 Accrued rent 23,956 22,045 Fabric liabilities 16,580 25,493 Fair value derivatives 17,466 10,390 Taxes other than income taxes payable 32,129 34,555 Other 238,076 296,011 Total other accrued liabilities $ 417,321 $ 477,001 |
Debt
Debt | 3 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table presents the Company's debt: February 28, November 29, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 (1) $ 197,321 $ 986,252 3.375% senior notes due 2027 572,796 560,448 3.50% senior notes due 2031 492,587 — Total long-term debt $ 1,262,704 $ 1,546,700 Short-term debt Short-term borrowings 8,059 17,631 Current maturities of long-term debt (1) 789,283 — Total short-term and current maturities of long-term debt $ 797,342 $ 17,631 Total long-term and short-term debt $ 2,060,046 $ 1,564,331 _____________ (1) On March 4, 2021, the Company redeemed $800.0 million of the 5.00% senior notes due 2025, which were called for redemption on February 2, 2021. Issuance of Senior Notes due 2031 and Redemption of Senior Notes Due 2025 On February 19, 2021, the Company issued $500.0 million in aggregate principal amount of 3.50% senior notes due 2031 (the "Senior Notes due 2031") to qualified institutional buyers and to purchasers outside the United States. Subsequent to quarter end, on March 4, 2021, the Company used the proceeds plus cash on hand to redeem $800.0 million of the 5.00% Senior Notes due 2025. In the second quarter of 2021, a net loss on the early extinguishment of debt of approximately $30 million will be recorded and will include approximately $20 million of call premium on the retired debt. Principal, interest, and maturity. The Senior Notes due 2031 are unsecured obligations that rank equally with all of the Company’s other existing and future unsecured and unsubordinated debt and will mature on March 1, 2031. Interest on the notes is payable semi-annually in arrears on March 1 and September 1, commencing on September 1, 2021. The Company may redeem some or all of the Senior Notes due 2031 prior to March 1, 2026, 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 this date, the Company may redeem all or any portion of the notes, at once or over time, at redemption prices specified in the indenture governing the notes, plus accrued and unpaid interest, if any, to the date of redemption. In addition, at any time prior to March 1, 2024, the Company may redeem up to a maximum of 40% of the aggregate principal amount of the Senior Notes due 2031 with the proceeds of certain equity offerings at a redemption price of 103.5% of the principal amount plus accrued and unpaid interest, if any, to the date of redemption. Costs of $7.4 million associated with the issuance of the notes, representing underwriting fees and other expenses, were capitalized and will be amortized to interest expense over the term of the notes. Covenants. The indenture contains covenants that limit, among other things, the Company’s and certain of the Company’s subsidiaries’ ability to incur liens, other than permitted liens, the Company's subsidiaries ability to incur additional debt, and the Company's ability to 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 or its subsidiaries. The indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include payment failures, failure to comply with covenants, failure to satisfy other obligations under the agreement or related documents, defaults in respect of other indebtedness, bankruptcy, insolvency and ability to pay debts when due, material judgments, pension plan terminations or specified underfunding, and substantial stock ownership changes. Generally, if an event of default occurs, the trustee under the indenture or holders of the Senior Notes due 2031 may declare all the Senior Notes due 2031 to be due and payable immediately. Upon the occurrence of a change in control (as defined in the indenture), each holder of notes may require the Company to repurchase all or a portion of the notes in cash at a price equal to 101% of the principal amount of notes to be repurchased, plus accrued and unpaid interest, if any, thereon to the date of purchase. As of February 28, 2021, the Company was in compliance with these covenants. Senior Revolving Credit Facility In January 2021, the Company amended its senior secured revolving credit facility (the "Credit Facility"). The Amendment No. 2 to the Second Amended and Restated Credit Agreement, dated as of January 5, 2021 (the "Credit Agreement Amendment"), leaves the material terms of the Second Amended and Restated Agreement substantially unchanged, with the exception that (i) the letter of credit limit was reduced from $350.0 million to $150.0 million, and (ii) the maturity date was extended to January 5, 2026. The guarantees and security interest grants, covenants, events of default of the Second Amended and Restated Credit Agreement, have not been materially changed as a result of the Credit Agreement Amendment. Costs of $3.4 million associated with Credit Agreement Amendment, representing underwriting fees and other expenses, were capitalized and will be amortized to interest expense over the term of the agreement. The Company's unused availability under the Credit Facility was $689.1 million at February 28, 2021, as the Company's total availability of $719.9 million was reduced by $30.8 million of letters of credit and other credit usage allocated under the Credit Facility. Interest Rates on Borrowings The Company’s weighted-average interest rate on average borrowings outstanding during the three months ended February 28, 2021 was 4.55%, as compared to 4.88%, during the same period of 2020. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Feb. 28, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The following table summarizes the total net periodic benefit cost for the Company's defined pension plans and postretirement benefit plans: Three Months Ended February 28, February 23, (Dollars in thousands) Net periodic benefit (income) cost: Pension benefits $ (616) $ 1,704 Postretirement benefits 332 509 Net periodic benefit (income) cost $ (284) $ 2,213 |
Restructuring
Restructuring | 3 Months Ended |
Feb. 28, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In April 2020, the Company announced and began to implement a restructuring initiative designed to reduce costs, streamline operations and support agility. The Company expects that the majority of the actions related to the restructuring initiative will be implemented through to the end of fiscal year 2021, with a focus on redesigning business processes and identifying opportunities to reduce costs, increase efficiencies and further streamline operations. For the three-month period ended February 28, 2021, the Company recognized a net reduction in restructuring charges of $0.8 million, which are recorded in "Selling, general and administrative expenses" in the Company's consolidated statements of income. The charges primarily include revisions to initial estimates of employee-related severance benefits, originally based on separation benefits provided by Company policy or statutory benefit plans. The Company estimates that it will incur future additional charges related to this restructuring initiative. The following table summarizes the activities associated with restructuring liabilities for the three months ended February 28, 2021. "Net Charges (Reversals)" represents the initial charge related to the restructuring activity as well as revisions of estimates related to severance and employee-related benefits and other, "Payments" consists of cash payments for severance and employee-related benefits and other, and "Foreign Currency Fluctuations" includes foreign currency fluctuations. As of February 28, 2021, $45.3 million and $3.1 million were classified as "Restructuring liabilities" and "Other long-term liabilities", respectively, within the Company's consolidated balance sheets. Three Months Ended February 28, 2021 Liabilities Net Charges (Reversals) Payments Liabilities November 29, February 28, (Dollars in thousands) Severance and employee-related benefits $ 60,604 $ (810) $ (12,091) $ 331 $ 48,034 Other 417 33 (51) 7 406 Total $ 61,021 $ (777) $ (12,142) $ 338 $ 48,440 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Feb. 28, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Forward Foreign Exchange Contracts The Company uses cash flow hedge derivative instruments to manage its exposure to foreign currencies. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the forward foreign exchange contracts. However, the Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. See Note 4 for additional information. Other Contingencies Litigation. In the ordinary course of business, the Company has various claims, complaints and pending cases, including contractual matters, facility and employee-related matters, distribution matters, product liability matters, intellectual property matters, bankruptcy preference matters, and tax and administrative matters. The Company establishes loss provisions for these ordinary course claims as well as other matters in which losses are probable and can be reasonably estimated. As of February 28, 2021, the Company has recorded certain reserves for these matters which are not material. The Company does not believe any of these pending claims, complaints and legal proceedings will have a material impact on its financial condition, results of operations or cash flows. Customs Duty Audits. The Company imports both raw materials and finished garments into all of its operating regions and as such, is subject to numerous countries' complex customs laws and regulations with respect to its import and export activity. The Company has various pending audit assessments in connection with these activities. The Company does not believe any of the claims for customs duty and related charges have merit, the ultimate resolution of these assessments and legal proceedings are subject to risk and uncertainty. Inventory Purchase Commitments. The Company also has minimum inventory purchase commitments, including fabric commitments, with suppliers that secure a portion of material needs for future seasons. In light of the COVID-19 pandemic and in response to decreased demand, some of the Company's orders were canceled and incremental liabilities for the estimated adverse purchase commitments were recorded beginning in the second quarter of fiscal 2020. As of February 28, 2021, adverse purchase commitments of $16.6 million, which primarily relate to fabric liabilities as a result of the COVID-19 pandemic, were included in "Other accrued liabilities" in the accompanying consolidated balance sheets. |
Dividend
Dividend | 3 Months Ended |
Feb. 28, 2021 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND Dividends are declared at the discretion of the Board. In January 2021, the Company declared a cash dividend of $0.04 per share to holders of record of its Class A and Class B common stock at close of business on February 10, 2021. The dividend was paid during the three months ended February 28, 2021 in the total amount of $16.0 million. The Company does not have an established dividend policy. The Board reviews the Company's ability to pay dividends on an ongoing basis and establishes the dividend amount based on the Company's financial condition, results of operations, capital requirements, current and projected cash flows and other factors, and any restrictions related to the terms of the Company’s debt agreements. Subsequent to the Company's quarter end, the Board declared a cash dividend of $0.06 per share to holders of record of its Class A and Class B common stock at the close of business on May 7, 2021, for a total quarterly dividend of approximately $24 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a summary of the components of "Accumulated other comprehensive loss," net of related income taxes: February 28, November 29, February 23, (Dollars in thousands) Pension and postretirement benefits $ (219,864) $ (222,345) $ (265,433) Derivative instruments (88,877) (74,456) (20,823) Foreign currency translation losses (149,333) (158,641) (174,810) Unrealized gains on marketable securities 14,798 13,996 8,332 Accumulated other comprehensive loss $ (443,276) $ (441,446) $ (452,734) No material amounts were reclassified out of "Accumulated other comprehensive loss" into net income other than those that pertain to the Company's derivative instruments and pension and post retirement benefit plans. Refer to Note 4 and Note 7 for additional information. |
Net Revenues
Net Revenues | 3 Months Ended |
Feb. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Net Revenues | NET REVENUES Disaggregated Revenue The table below provides the Company's revenues disaggregated by segment and channel. Three Months Ended February 28, 2021 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 439,292 $ 281,631 $ 117,836 $ 838,759 Direct-to-consumer 201,980 147,395 117,468 466,843 Total net revenues $ 641,272 $ 429,026 $ 235,304 $ 1,305,602 _____________ (1) For the three months ended February 28, 2021, net revenues were adversely impacted by the COVID-19 pandemic, as approximately 15% of the Company's owned and operated retail stores remained closed at quarter end. See Note 1 for more information. Three Months Ended February 23, 2020 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 460,866 $ 276,955 $ 138,503 $ 876,324 Direct-to-consumer 284,714 235,988 109,100 629,802 Total net revenues $ 745,580 $ 512,943 $ 247,603 $ 1,506,126 _____________ (1) For the quarter ended February 23, 2020, the impact of the COVID-19 pandemic was minimal, as temporary store closures were primarily within China. See Note 1 for more information. The Company did not have any material contract assets or contract liabilities recorded in the consolidated balance sheets as of February 28, 2021 and November 29, 2020 |
Other Income, Net
Other Income, Net | 3 Months Ended |
Feb. 28, 2021 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME, NET | OTHER INCOME, NET The following table summarizes significant components of "Other income, net": Three Months Ended February 28, February 23, (Dollars in thousands) Foreign exchange management gains (losses) $ 367 $ (1,721) Foreign currency transaction (losses) gains (3,235) 694 Interest income 708 4,211 Investment income 1,964 741 Other, net 1,054 (1,225) Total other income, net $ 858 $ 2,700 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective income tax rate was 7.9% for the three months ended February 28, 2021, compared to 7.4% for the same prior-year period. The increase in the effective tax rate in the quarter was primarily driven by a lower tax benefit attributable to employees exercising stock-based equity awards, offset by an increased benefit from foreign-derived intangible income in the current year and more valuation allowance charges in the prior year. |
Earnings (Loss) Per Share Attri
Earnings (Loss) Per Share Attributable to Common Stockholders | 3 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Common Stockholders | EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS The following table sets forth the computation of the Company's basic and diluted earnings per share: Three Months Ended February 28, February 23, (Dollars in thousands, except per share amounts) Numerator: Net income $ 142,504 $ 152,689 Denominator: Weighted-average common shares outstanding - basic 399,541,735 396,216,057 Dilutive effect of stock awards 12,331,036 13,852,316 Weighted-average common shares outstanding - diluted 411,872,771 410,068,373 Earnings per common share attributable to common stockholders: Basic $ 0.36 $ 0.39 Diluted $ 0.35 $ 0.37 Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders 989,627 787,917 |
Related Parties
Related Parties | 3 Months Ended |
Feb. 28, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIESCharles V. Bergh, President and Chief Executive Officer, and Marc Rosen, Executive Vice President and President of Levi Strauss Americas, are members of the Board of Directors of the Levi Strauss Foundation, which is not a consolidated entity of the Company. Seth R. Jaffe, Executive Vice President and General Counsel, is Vice President of the Levi Strauss Foundation. During the three months ended February 28, 2021, the Company donated $2.4 million to the Levi Strauss Foundation as compared to $8.7 million for the same prior-year period. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company manages its business according to three regional segments: the Americas, Europe and Asia. The Company considers its chief executive officer to be the Company’s chief operating decision maker. The Company’s chief operating decision maker manages business operations, evaluates performance and allocates resources based on the regional segments’ net revenues and operating income. Business segment information for the Company is as follows: Three Months Ended February 28, 2021 (1) February 23, 2020 (1) (Dollars in thousands) Net revenues: Americas $ 641,272 $ 745,580 Europe 429,026 512,943 Asia 235,304 247,603 Total net revenues $ 1,305,602 $ 1,506,126 Operating income: Americas $ 130,697 $ 124,039 Europe 111,122 132,436 Asia 29,299 32,668 Regional operating income 271,118 289,143 Corporate expenses 93,995 110,361 Total operating income 177,123 178,782 Interest expense (23,310) (16,654) Other income, net 858 2,700 Income before income taxes $ 154,671 $ 164,828 _____________ |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Basis of accounting | The unaudited consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries are prepared in conformity with generally accepted accounting principles in the United States ("U.S. GAAP") for interim financial information. |
Consolidated entities policy | The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. |
Fiscal period | The Company’s fiscal year ends on the last Sunday of November in each year, although the fiscal years of certain foreign subsidiaries end on November 30. Each quarter of both fiscal years 2021 and 2020 consists of 13 weeks, with the exception of the fourth quarter of 2020, which consisted of 14 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters. |
Use of estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. |
New accounting pronouncements | Changes in Accounting Principles • In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. The Company adopted this standard in the first quarter of fiscal 2021. The adoption of this standard did not have an impact on the Company's consolidated financial statements and related disclosures. • 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. The Company adopted this standard in the first quarter of fiscal 2021 on a prospective basis. The adoption of this standard did not have an impact on the Company's consolidated financial statements and related disclosures. Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the 2020 Annual Report on Form 10-K, except for the following: First Quarter 2023 • In March 2020 and January 2021, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU 2021-01, Reference Rate Reform: Scope , respectively. Together, the ASUs provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures, if adopted. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | The following table presents the Company's inventory balances: February 28, November 29, (Dollars in thousands) Raw materials $ 4,541 $ 3,882 Work-in-progress 4,117 4,725 Finished goods 826,699 809,085 Total inventories $ 835,357 $ 817,692 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities carried at fair value | The following table presents the Company’s financial instruments that are carried at fair value: February 28, 2021 November 29, 2020 Fair Value Estimated Fair Value Estimated Fair Value Level 1 Inputs (1) Level 2 Inputs (2) Fair Value Level 1 Inputs (1) Level 2 Inputs (2) (Dollars in thousands) Financial assets carried at fair value Rabbi trust assets $ 73,645 $ 73,645 $ — $ 71,184 $ 71,184 $ — Short-term investments in marketable securities 94,273 94,273 96,531 — 96,531 Derivative instruments (3) 4,872 — 4,872 4,904 — 4,904 Total $ 172,790 $ 73,645 $ 99,145 $ 172,619 $ 71,184 $ 101,435 Financial liabilities carried at fair value Derivative instruments (3) 17,467 — 17,467 10,735 — 10,735 Total $ 17,467 $ — $ 17,467 $ 10,735 $ — $ 10,735 _____________ (1) Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities. (2) Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly, and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. Short-term investments in marketable securities consist of fixed income securities. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. |
Financial liabilities carried at adjusted historical cost | The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost: February 28, 2021 November 29, 2020 Carrying Estimated Fair Carrying Estimated Fair (Dollars in thousands) Financial liabilities carried at adjusted historical cost 5.00% senior notes due 2025 (1)(2) $ 1,003,271 $ 1,024,236 $ 990,280 $ 1,016,169 3.375% senior notes due 2027 (1) 581,579 601,627 564,312 583,227 3.50% senior notes due 2031 (1) 493,170 494,401 — — Short-term borrowings 8,081 8,081 17,648 17,648 Total $ 2,086,101 $ 2,128,345 $ 1,572,240 $ 1,617,044 _____________ (1) Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. (2) Subsequent to quarter end, on March 4, 2021, the Company used the proceeds from the 3.50% senior notes due 2031 plus cash on hand to redeem $800.0 million of the 5.00% senior notes due 2025. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Carrying values of derivative instruments and non-derivative instruments | The table below provides data about the carrying values of derivative and non-derivative instruments: February 28, 2021 November 29, 2020 Assets (Liabilities) Derivative Assets (Liabilities) Derivative Carrying Carrying Carrying Carrying (Dollars in thousands) Derivatives designated as hedging instruments Foreign exchange risk cash flow hedges (1) $ 3,390 $ — $ 3,390 $ 1,489 $ — $ 1,489 Foreign exchange risk cash flow hedges (2) — (12,307) (12,307) — (5,036) (5,036) Total $ 3,390 $ (12,307) $ 1,489 $ (5,036) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 4,872 $ (3,390) $ 1,482 $ 4,902 $ (1,487) $ 3,415 Forward foreign exchange contracts (2) 12,306 (17,466) (5,160) 5,035 (10,734) (5,699) Total $ 17,178 $ (20,856) $ 9,937 $ (12,221) Non-derivatives designated as hedging instruments Euro senior notes $ — $ (578,028) $ — $ (565,820) _____________ (1) Included in "Other current assets" or "Other non-current assets" on the Company’s consolidated balance sheets. (2) Included in "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets. |
Offsetting assets and liabilities | The Company's over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sheets based on maturity dates, including those subject to master netting arrangements. The table below presents the gross and net amounts of these contracts recognized on the Company's consolidated balance sheets by type of financial instrument: February 28, 2021 November 29, 2020 Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts Gross Amounts of Assets / (Liabilities) Gross Amounts Net Amounts (Dollars in thousands) Foreign exchange risk contracts and forward foreign exchange contracts Financial assets $ 20,570 $ (6,671) $ 13,899 $ 11,426 $ (6,578) $ 4,848 Financial liabilities (33,165) 6,671 (26,494) (17,257) 6,578 (10,679) Total $ (12,595) $ (5,831) |
Gains and losses included in AOCI | The table below provides data about the amount of gains and losses related to derivative instruments designated as cash flow hedges and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets: Amount of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Net Income (1) As of As of Three Months Ended February 28, February 23, (Dollars in thousands) Foreign exchange risk contracts $ (17,002) $ (11,896) $ (1,878) $ 3,065 Realized forward foreign exchange swaps (2) 4,637 4,637 — — Yen-denominated Eurobonds (19,811) (19,811) — — Euro-denominated senior notes (90,944) (78,736) — — Cumulative income taxes 34,243 31,350 — — Total $ (88,877) $ (74,456) _____________ (1) Amounts reclassified from AOCI were classified as net revenues and cost of goods sold on the consolidated statements of income. (2) Prior to and during 2005, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCI and are not reclassified to earnings until the related net investment position has been liquidated. |
Gains and losses included in statements of income | The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the consolidated statements of income: Three Months Ended February 28, February 23, (Dollars in thousands) Amount of Gain (Loss) on Cash Flow Hedge Activity Net revenues $ 943 $ (1,245) Cost of goods sold $ (2,821) $ 4,310 The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other income, net" in the Company's consolidated statements of income: Three Months Ended February 28, February 23, (Dollars in thousands) Realized gain (loss) $ 1,749 $ (3,433) Unrealized (loss) gain (1,382) 1,712 Total $ 367 $ (1,721) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | The following table presents the Company's other accrued liabilities: February 28, November 29, (Dollars in thousands) Other accrued liabilities Accrued advertising and promotion $ 62,747 $ 80,272 Accrued interest payable 26,367 8,235 Accrued rent 23,956 22,045 Fabric liabilities 16,580 25,493 Fair value derivatives 17,466 10,390 Taxes other than income taxes payable 32,129 34,555 Other 238,076 296,011 Total other accrued liabilities $ 417,321 $ 477,001 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term and short-term debt instruments | The following table presents the Company's debt: February 28, November 29, (Dollars in thousands) Long-term debt 5.00% senior notes due 2025 (1) $ 197,321 $ 986,252 3.375% senior notes due 2027 572,796 560,448 3.50% senior notes due 2031 492,587 — Total long-term debt $ 1,262,704 $ 1,546,700 Short-term debt Short-term borrowings 8,059 17,631 Current maturities of long-term debt (1) 789,283 — Total short-term and current maturities of long-term debt $ 797,342 $ 17,631 Total long-term and short-term debt $ 2,060,046 $ 1,564,331 _____________ (1) On March 4, 2021, the Company redeemed $800.0 million of the 5.00% senior notes due 2025, which were called for redemption on February 2, 2021. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans disclosures | The following table summarizes the total net periodic benefit cost for the Company's defined pension plans and postretirement benefit plans: Three Months Ended February 28, February 23, (Dollars in thousands) Net periodic benefit (income) cost: Pension benefits $ (616) $ 1,704 Postretirement benefits 332 509 Net periodic benefit (income) cost $ (284) $ 2,213 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Three Months Ended February 28, 2021 Liabilities Net Charges (Reversals) Payments Liabilities November 29, February 28, (Dollars in thousands) Severance and employee-related benefits $ 60,604 $ (810) $ (12,091) $ 331 $ 48,034 Other 417 33 (51) 7 406 Total $ 61,021 $ (777) $ (12,142) $ 338 $ 48,440 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The following is a summary of the components of "Accumulated other comprehensive loss," net of related income taxes: February 28, November 29, February 23, (Dollars in thousands) Pension and postretirement benefits $ (219,864) $ (222,345) $ (265,433) Derivative instruments (88,877) (74,456) (20,823) Foreign currency translation losses (149,333) (158,641) (174,810) Unrealized gains on marketable securities 14,798 13,996 8,332 Accumulated other comprehensive loss $ (443,276) $ (441,446) $ (452,734) |
Net Revenues (Tables)
Net Revenues (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below provides the Company's revenues disaggregated by segment and channel. Three Months Ended February 28, 2021 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 439,292 $ 281,631 $ 117,836 $ 838,759 Direct-to-consumer 201,980 147,395 117,468 466,843 Total net revenues $ 641,272 $ 429,026 $ 235,304 $ 1,305,602 _____________ (1) For the three months ended February 28, 2021, net revenues were adversely impacted by the COVID-19 pandemic, as approximately 15% of the Company's owned and operated retail stores remained closed at quarter end. See Note 1 for more information. Three Months Ended February 23, 2020 (1) Americas Europe Asia Total (Dollars in thousands) Net revenues by channel: Wholesale $ 460,866 $ 276,955 $ 138,503 $ 876,324 Direct-to-consumer 284,714 235,988 109,100 629,802 Total net revenues $ 745,580 $ 512,943 $ 247,603 $ 1,506,126 _____________ (1) For the quarter ended February 23, 2020, the impact of the COVID-19 pandemic was minimal, as temporary store closures were primarily within China. See Note 1 for more information. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | The following table summarizes significant components of "Other income, net": Three Months Ended February 28, February 23, (Dollars in thousands) Foreign exchange management gains (losses) $ 367 $ (1,721) Foreign currency transaction (losses) gains (3,235) 694 Interest income 708 4,211 Investment income 1,964 741 Other, net 1,054 (1,225) Total other income, net $ 858 $ 2,700 |
Earnings (Loss) Per Share Att_2
Earnings (Loss) Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company's basic and diluted earnings per share: Three Months Ended February 28, February 23, (Dollars in thousands, except per share amounts) Numerator: Net income $ 142,504 $ 152,689 Denominator: Weighted-average common shares outstanding - basic 399,541,735 396,216,057 Dilutive effect of stock awards 12,331,036 13,852,316 Weighted-average common shares outstanding - diluted 411,872,771 410,068,373 Earnings per common share attributable to common stockholders: Basic $ 0.36 $ 0.39 Diluted $ 0.35 $ 0.37 Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders 989,627 787,917 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Business segment information for the Company is as follows: Three Months Ended February 28, 2021 (1) February 23, 2020 (1) (Dollars in thousands) Net revenues: Americas $ 641,272 $ 745,580 Europe 429,026 512,943 Asia 235,304 247,603 Total net revenues $ 1,305,602 $ 1,506,126 Operating income: Americas $ 130,697 $ 124,039 Europe 111,122 132,436 Asia 29,299 32,668 Regional operating income 271,118 289,143 Corporate expenses 93,995 110,361 Total operating income 177,123 178,782 Interest expense (23,310) (16,654) Other income, net 858 2,700 Income before income taxes $ 154,671 $ 164,828 _____________ |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) $ in Thousands, shares in Millions | Jan. 09, 2020USD ($) | Dec. 31, 2019USD ($)numberOfStores | Feb. 28, 2021USD ($)regionshares | May 24, 2020USD ($) | Feb. 23, 2020USD ($) | Nov. 29, 2020USD ($) | Jan. 31, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of geographical regions | region | 3 | ||||||
Charges Incurred by COVID | $ 242,000 | $ 250,000 | |||||
Restructuring charges, net | $ (777) | 67,400 | 90,400 | ||||
COVID-19 related inventory costs | 86,600 | 68,500 | |||||
Other COVID related charges | $ 88,000 | 91,100 | |||||
Purchase commitment write-down | 6,500 | ||||||
Adverse purchase commitment | 16,600 | 25,500 | |||||
Allowance for credit loss | 13,900 | 14,700 | |||||
Non-cash impairment charges | 3,100 | ||||||
Accumulated depreciation | 1,100,000 | 1,100,000 | |||||
Payments for business acquisition | 0 | $ 52,201 | |||||
Number of Stores Acquired | numberOfStores | 78 | ||||||
Goodwill | $ 267,072 | 264,768 | |||||
Share repurchase program, authorized amount | $ 100,000 | ||||||
Shares repurchased (in shares) | shares | 1.9 | ||||||
Repurchased value | $ 37,000 | ||||||
Levi Strauss Japan K.K. | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Minority interest | 16.40% | ||||||
Total purchase price of common stock | $ 13,600 | ||||||
The Jeans Company | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Payments for business acquisition | $ 52,200 | ||||||
Goodwill | 22,800 | ||||||
Intangibles acquired | $ 9,200 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,541 | $ 3,882 |
Work-in-progress | 4,117 | 4,725 |
Finished goods | 826,699 | 809,085 |
Inventories | $ 835,357 | $ 817,692 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments-Fair Value (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 29, 2020 |
Financial liabilities carried at fair value | ||
Total | $ 17,467 | $ 10,735 |
Fair Value [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 73,645 | 71,184 |
Short-term investments in marketable securities | 94,273 | 96,531 |
Forward foreign exchange contracts | 4,872 | 4,904 |
Total | 172,790 | 172,619 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 17,467 | 10,735 |
Fair Value [Member] | Level 1 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 73,645 | 71,184 |
Short-term investments in marketable securities | 0 | |
Forward foreign exchange contracts | 0 | 0 |
Total | 73,645 | 71,184 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 0 | 0 |
Total | 0 | 0 |
Fair Value [Member] | Level 2 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 0 | 0 |
Short-term investments in marketable securities | 94,273 | 96,531 |
Forward foreign exchange contracts | 4,872 | 4,904 |
Total | 99,145 | 101,435 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts | 17,467 | 10,735 |
Total | $ 17,467 | $ 10,735 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments-Adjusted Historical Cost (Details) - USD ($) $ in Thousands | Mar. 04, 2021 | Feb. 28, 2021 | Nov. 29, 2020 |
Senior Notes | 5.00% Senior Notes, Due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 5.00% | ||
Senior Notes | 5.00% Senior Notes, Due 2025 | Subsequent Event | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Payments to redeem debt | $ 800,000 | ||
Senior Notes | 3.375% Senior Notes Due 2027 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 3.375% | ||
Senior Notes | 3.50% Senior Notes Due 2031 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated interest rate | 3.50% | ||
Fair Value, Recurring [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt carried at adjusted historical cost | $ 8,081 | $ 17,648 | |
Total financial liabilities carried at adjusted historical cost | 2,086,101 | 1,572,240 | |
Fair Value, Recurring [Member] | Carrying Value [Member] | Senior Notes | 5.00% Senior Notes, Due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carried at adjusted historical cost | 1,003,271 | 990,280 | |
Fair Value, Recurring [Member] | Carrying Value [Member] | Senior Notes | 3.375% Senior Notes Due 2027 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carried at adjusted historical cost | 581,579 | 564,312 | |
Fair Value, Recurring [Member] | Carrying Value [Member] | Senior Notes | 3.50% Senior Notes Due 2031 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carried at adjusted historical cost | 493,170 | 0 | |
Fair Value, Recurring [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Short-term debt carried at adjusted historical cost | 8,081 | 17,648 | |
Total financial liabilities carried at adjusted historical cost | 2,128,345 | 1,617,044 | |
Fair Value, Recurring [Member] | Fair Value [Member] | Senior Notes | 5.00% Senior Notes, Due 2025 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carried at adjusted historical cost | 1,024,236 | 1,016,169 | |
Fair Value, Recurring [Member] | Fair Value [Member] | Senior Notes | 3.375% Senior Notes Due 2027 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carried at adjusted historical cost | 601,627 | 583,227 | |
Fair Value, Recurring [Member] | Fair Value [Member] | Senior Notes | 3.50% Senior Notes Due 2031 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carried at adjusted historical cost | $ 494,401 | $ 0 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities-Balance Sheet (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 29, 2020 |
Carrying Value [Member] | Designated as Hedging Instrument [Member] | Bonds [Member] | Euro Senior Notes [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Hedging assets | $ 0 | $ 0 |
Hedging liabilities | (578,028) | (565,820) |
Forward foreign exchange contracts [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 20,570 | 11,426 |
Derivative asset, gross liability | (6,671) | (6,578) |
Derivative asset | 13,899 | 4,848 |
Derivative liability, gross asset | 6,671 | 6,578 |
Derivative Liability, gross liability | (33,165) | (17,257) |
Derivative Liability | (26,494) | (10,679) |
Derivative, Fair Value, Net | (12,595) | (5,831) |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset | 3,390 | 1,489 |
Derivative Liability | (12,307) | (5,036) |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Designated as Hedging Instrument [Member] | Other non-current assets [Member] | Cash Flow Hedging [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 3,390 | 1,489 |
Derivative asset, gross liability | 0 | 0 |
Derivative asset, Net Carrying Value | 3,390 | 1,489 |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Designated as Hedging Instrument [Member] | Other long-term liabilities [Member] | Cash Flow Hedging [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative liability, gross asset | 0 | 0 |
Derivative Liability, gross liability | (12,307) | (5,036) |
Derivative liability, Net Carrying Value | (12,307) | (5,036) |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset | 17,178 | 9,937 |
Derivative Liability | (20,856) | (12,221) |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | Other non-current assets [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative asset, gross asset | 4,872 | 4,902 |
Derivative asset, gross liability | (3,390) | (1,487) |
Derivative asset, Net Carrying Value | 1,482 | 3,415 |
Forward foreign exchange contracts [Member] | Carrying Value [Member] | Not Designated as Hedging Instrument [Member] | Other long-term liabilities [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Derivative liability, gross asset | 12,306 | 5,035 |
Derivative Liability, gross liability | (17,466) | (10,734) |
Derivative liability, Net Carrying Value | (5,160) | $ (5,699) |
Long [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Foreign exchange contracts | 617,200 | |
Short [Member] | ||
Carrying Value, Balance Sheet Location By Contract Type, By Hedging Designation [Line Items] | ||
Foreign exchange contracts | $ 369,600 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities-Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 28, 2021 | Feb. 23, 2020 | Nov. 29, 2020 | |
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | |||
Cumulative income taxes, gain or (loss) recognized in AOCI | $ 34,243 | $ 31,350 | |
Total, gain or (loss) recognized in AOCI | (88,877) | (74,456) | |
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||
Cumulative income taxes, gain or (loss) reclassified from AOCI | 0 | $ 0 | |
Forward foreign exchange contracts [Member] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | |||
Forward foreign exchange contracts, gain or (loss) recognized in AOCI | (17,002) | (11,896) | |
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||
Forward foreign exchange contracts, gain or (loss) reclassified from AOCI | (1,878) | 3,065 | |
Forward foreign exchange contracts [Member] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | |||
Forward foreign exchange contracts, gain or (loss) recognized in AOCI | 4,637 | 4,637 | |
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||
Forward foreign exchange contracts, gain or (loss) reclassified from AOCI | 0 | 0 | |
Yen-denominated Eurobonds [Member] | Bonds [Member] | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | |||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | (19,811) | (19,811) | |
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||
Non-derivative hedging instruments, gain or (loss) reclassified from AOCI | 0 | 0 | |
Euro Senior Notes [Member] | Senior Notes | |||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | |||
Non-derivative hedging instruments-gain or (loss) recognized in AOCI | (90,944) | $ (78,736) | |
Amount of Gain (Loss) Reclassified from AOCI into Net Income | |||
Non-derivative hedging instruments, gain or (loss) reclassified from AOCI | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities-Realized & Unrealized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges expected to be reclassified from AOCI into net income within next 12 months | $ (19,300) | |
Revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 943 | $ (1,245) |
Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | (2,821) | 4,310 |
Forward foreign exchange contracts [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized | 1,749 | (3,433) |
Unrealized | (1,382) | 1,712 |
Total | $ 367 | $ (1,721) |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 29, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Accrued advertising and promotion | $ 62,747 | $ 80,272 |
Accrued interest payable | 26,367 | 8,235 |
Accrued rent | 23,956 | 22,045 |
Fabric liabilities | 16,580 | 25,493 |
Fair value derivatives | 17,466 | 10,390 |
Taxes other than income taxes payable | 32,129 | 34,555 |
Other | 238,076 | 296,011 |
Total other accrued liabilities | $ 417,321 | $ 477,001 |
Debt-Table (Details)
Debt-Table (Details) - USD ($) $ in Thousands | Mar. 04, 2021 | Feb. 28, 2021 | Nov. 29, 2020 |
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term debt | $ 1,262,704 | $ 1,546,700 | |
Short-term debt | 8,059 | 17,631 | |
Current maturities of long-term debt | 789,283 | 0 | |
Total short-term and current maturities of long-term debt | 797,342 | 17,631 | |
Total long-term and short-term debt | 2,060,046 | 1,564,331 | |
5.00% Senior Notes, Due 2025 | Senior Notes | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term debt | $ 197,321 | 986,252 | |
Stated interest rate | 5.00% | ||
5.00% Senior Notes, Due 2025 | Senior Notes | Subsequent Event | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Payments to redeem debt | $ 800,000 | ||
3.375% Senior Notes Due 2027 | Senior Notes | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term debt | $ 572,796 | 560,448 | |
Stated interest rate | 3.375% | ||
3.50% Senior Notes Due 2031 | Senior Notes | |||
Schedule of Long-term and Short-term Debt Instruments [Line Items] | |||
Long-term debt | $ 492,587 | $ 0 | |
Stated interest rate | 3.50% |
Debt-Textuals (Details)
Debt-Textuals (Details) - USD ($) | Mar. 04, 2021 | May 28, 2021 | Feb. 28, 2021 | Feb. 23, 2020 | Feb. 19, 2021 | Jan. 05, 2021 | Nov. 29, 2020 |
Debt Instruments [Line Items] | |||||||
Weighted-average interest rate | 4.55% | 4.88% | |||||
Senior Notes | 5.00% Senior Notes, Due 2025 | |||||||
Debt Instruments [Line Items] | |||||||
Stated interest rate | 5.00% | ||||||
Senior Notes | 5.00% Senior Notes, Due 2025 | Subsequent Event | |||||||
Debt Instruments [Line Items] | |||||||
Payments to redeem debt | $ 800,000,000 | ||||||
Loss on extinguishment of debt | $ 30,000,000 | ||||||
Call premium of retired debt | $ 20,000,000 | ||||||
Senior Notes | 3.50% Senior Notes Due 2031 | |||||||
Debt Instruments [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | ||||||
Stated interest rate | 3.50% | ||||||
Maximum percent of principle amount that can be redeemed | 40.00% | ||||||
Redemption price | 103.50% | ||||||
Unamortized Debt Issuance Expense | $ 7,400,000 | ||||||
Senior revolving credit facility | |||||||
Debt Instruments [Line Items] | |||||||
Letter of credit limit | 689,100,000 | ||||||
Letters of credit and other credit usage | 30,800,000 | ||||||
Total availability | $ 719,900,000 | ||||||
Senior revolving credit facility | Secured Debt | |||||||
Debt Instruments [Line Items] | |||||||
Letter of credit limit | $ 150,000,000 | $ 350,000,000 | |||||
Debt issuance costs | $ 3,400,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Net periodic benefit (income) cost: | ||
Net periodic benefit (income) cost | $ (284) | $ 2,213 |
Pension benefits | ||
Net periodic benefit (income) cost: | ||
Net periodic benefit (income) cost | (616) | 1,704 |
Postretirement benefits | ||
Net periodic benefit (income) cost: | ||
Net periodic benefit (income) cost | $ 332 | $ 509 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | May 24, 2020 | Nov. 29, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges, net | $ (777) | $ 67,400 | $ 90,400 |
Restructuring liabilities | 45,300 | $ 54,723 | |
Restructuring Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities | 45,300 | ||
Other Noncurrent Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Other long-term liabilities | $ 3,100 |
Restructuring - Restructuring L
Restructuring - Restructuring Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2021 | May 24, 2020 | Nov. 29, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | $ 61,021 | ||
Net Charges (Reversals) | (777) | $ 67,400 | $ 90,400 |
Payments | (12,142) | ||
Foreign Currency Fluctuations | 338 | ||
Restructuring Reserve, Ending Balance | 48,440 | 61,021 | |
Severance and employee-related benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 60,604 | ||
Net Charges (Reversals) | (810) | ||
Payments | (12,091) | ||
Foreign Currency Fluctuations | 331 | ||
Restructuring Reserve, Ending Balance | 48,034 | 60,604 | |
Other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 417 | ||
Net Charges (Reversals) | 33 | ||
Payments | (51) | ||
Foreign Currency Fluctuations | 7 | ||
Restructuring Reserve, Ending Balance | $ 406 | $ 417 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2021 | Nov. 29, 2020 | |
Gain Contingencies [Line Items] | ||
Purchase Commitment Write-down | $ (6.5) | |
Adverse purchase commitment | $ 16.6 | $ 25.5 |
Dividend (Details)
Dividend (Details) - USD ($) $ / shares in Units, $ in Thousands | May 07, 2021 | Feb. 28, 2021 | Feb. 23, 2020 | Jan. 01, 2021 |
Class of Stock [Line Items] | ||||
Dividend, fix amount (in dollars per share) | $ 0.04 | |||
Dividend to stockholders | $ 15,992 | $ 31,930 | ||
Forecast | ||||
Class of Stock [Line Items] | ||||
Dividend, fix amount (in dollars per share) | $ 0.06 | |||
Dividend to stockholders | $ 24,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Nov. 29, 2020 | Feb. 23, 2020 |
Equity [Abstract] | |||
Pension and postretirement benefits | $ (219,864) | $ (222,345) | $ (265,433) |
Derivative instruments | (88,877) | (74,456) | (20,823) |
Foreign currency translation losses | (149,333) | (158,641) | (174,810) |
Unrealized gains on marketable securities | 14,798 | 13,996 | 8,332 |
Accumulated other comprehensive loss | $ (443,276) | $ (441,446) | $ (452,734) |
Net Revenues - Disaggregation o
Net Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 1,305,602 | $ 1,506,126 |
Percent of retail stores remaining closed | 15.00% | |
Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 838,759 | 876,324 |
Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 466,843 | 629,802 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 641,272 | 745,580 |
Americas | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 439,292 | 460,866 |
Americas | Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 201,980 | 284,714 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 429,026 | 512,943 |
Europe | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 281,631 | 276,955 |
Europe | Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 147,395 | 235,988 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 235,304 | 247,603 |
Asia | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 117,836 | 138,503 |
Asia | Direct-to-consumer | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 117,468 | $ 109,100 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Other Income and Expenses [Abstract] | ||
Foreign exchange management gains (losses) | $ 367 | $ (1,721) |
Foreign currency transaction (losses) gains | (3,235) | 694 |
Interest income | 708 | 4,211 |
Investment income | 1,964 | 741 |
Other, net | 1,054 | (1,225) |
Total other income, net | $ 858 | $ 2,700 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 7.90% | 7.40% |
Earnings (Loss) Per Share Att_3
Earnings (Loss) Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Numerator: | ||
Net income (loss) attributable to Levi Strauss & Co. | $ 142,504 | $ 152,689 |
Denominator: | ||
Weighted-average common shares outstanding - basic (in shares) | 399,541,735 | 396,216,057 |
Dilutive effect of stock awards (in shares) | 12,331,036 | 13,852,316 |
Weighted-average common shares outstanding - diluted (in shares) | 411,872,771 | 410,068,373 |
Earnings per common share attributable to common stockholders: | ||
Basic (usd per share) | $ 0.36 | $ 0.39 |
Diluted (usd per share) | $ 0.35 | $ 0.37 |
Anti-dilutive securities excluded from calculation of diluted earnings per share attributable to common stockholders (in shares) | 989,627 | 787,917 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 28, 2021 | Feb. 23, 2020 | |
Levi Strauss Foundation | ||
Related Party Transaction [Line Items] | ||
Related Party Donations | $ 2.4 | $ 8.7 |
Business Segment Information (D
Business Segment Information (Details) $ in Thousands | 3 Months Ended | |
Feb. 28, 2021USD ($)Regional_Segments | Feb. 23, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | Regional_Segments | 3 | |
Net revenues | $ 1,305,602 | $ 1,506,126 |
Operating income (loss) | 177,123 | 178,782 |
Interest expense | (23,310) | (16,654) |
Other income, net | 858 | 2,700 |
Income before income taxes | $ 154,671 | 164,828 |
Percent of retail stores remaining closed | 15.00% | |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 641,272 | 745,580 |
Operating income (loss) | 130,697 | 124,039 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 429,026 | 512,943 |
Operating income (loss) | 111,122 | 132,436 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 235,304 | 247,603 |
Operating income (loss) | 29,299 | 32,668 |
Regional Operating Income | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | 271,118 | 289,143 |
Corporate Segment | ||
Segment Reporting Information [Line Items] | ||
Corporate expenses | $ 93,995 | $ 110,361 |