þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 94-0905160 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer ¨ | Accelerated filer ¨ | ||
Non-accelerated filer þ | (Do not check if a smaller reporting company) | Smaller reporting company ¨ | |
Emerging growth company ¨ |
Page Number | |||
Item 1. | |||
Item 1A. | |||
Item 1B. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
Item 7. | |||
Item 7A. | |||
Item 8. | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | |||
Item 10. | |||
Item 11. | |||
Item 12. | |||
Item 13. | |||
Item 14. | |||
Item 15. | |||
Item 1. | BUSINESS |
• | Drive the profitable core businesses. Our core businesses represent the greatest value on a brand, geographic, customer or business-segment basis. These include our bottoms business for the Levi's® brand globally and the Dockers® brand in the United States, including our iconic 501® jean. We also consider our key international markets of France, Germany, Mexico and the United Kingdom, as well as key wholesale accounts globally, to be vital elements of our long-term growth strategies. We manage collaborative relationships with these wholesale accounts to focus on customer support, marketing planning, and inventory levels, in order to achieve mutual commercial success. |
• | Expand the reach of our brands and build a more balanced portfolio. We believe we have opportunities to grow our brands through new or expanded product categories, consumer segments and geographic markets. We are building upon our iconic brands, including our innovative design and marketing expertise, to deepen our connection with consumers and expand the reach and appeal of our brands globally. For example, we believe we can better serve the female consumer, and that there are significant opportunities in tops, outerwear and accessories. We also have an opportunity to expand our Denizen® value brand across a few select markets. We also believe opportunities remain to expand in emerging and underpenetrated geographic markets, including China and India. |
• | Become a world-class omni-channel retailer. We will continue to grow our direct-to-consumer business in brand-dedicated stores globally, including making selective investments in additional company-operated stores, dedicated e-commerce sites, franchisee and other dedicated store models. We believe these brand-dedicated stores represent an attractive opportunity to establish incremental distribution and sales, as well as to showcase the full breadth of our product offerings and deliver a consistent brand experience to the consumer. Additionally, we will continue to make strategic investments in our information technology systems and business processes to build our omni-channel capabilities. |
• | Improve our cost structure to achieve operational excellence. We are focused on operational excellence to improve our long-term profitable growth, reducing our controllable cost structure and driving efficiencies by streamlining our product development, planning, and go-to-market strategies, implementing efficiencies across retail, supply chain, distribution networks and administrative functions and continuing to pursue practices that result in greater cost efficiencies. We will continue to balance our pursuit of improved organizational agility and marketplace responsiveness with our ongoing cost management efforts to improve the structural economics of the company. |
• | We require all third-party contractors and subcontractors who manufacture or finish products for us to comply with our code of conduct relating to supplier working conditions as well as environmental, employment and sourcing practices. We also require our licensees to ensure that their manufacturers comply with our requirements. |
• | Our code of conduct covers employment practices such as wages and benefits, working hours, health and safety, working age and discriminatory practices, environmental matters such as wastewater treatment and solid waste disposal, and ethical and legal conduct. |
• | We regularly assess manufacturing and finishing facilities through periodic on-site facility inspections and improvement activities, including use of independent monitors to supplement our internal staff. We integrate review and performance results into our sourcing decisions. |
• | anticipating and responding to changing consumer demands and apparel trends in a timely manner; |
• | developing high-quality, innovative products with relevant designs, fits, finishes, fabrics, style and performance features that meet consumer desires and trends; |
• | maintaining favorable and strong brand name recognition and appeal through strong and effective marketing support and intelligence in diverse market segments; |
• | securing desirable retail locations and presenting products effectively at company-operated retail and franchised and other brand-dedicated stores; |
• | ensuring product availability at wholesale and direct-to-consumer channels, and at franchised and other brand-dedicated stores; |
• | anticipating and responding to consumer expectations regarding e-commerce shopping and shipping; |
• | optimizing supply chain cost efficiencies and product development cycle lead times; |
• | delivering compelling value for the price of our products in diverse market segments; and |
• | generating competitive economics for wholesale customers, including retailers, franchisees, and licensees. |
Item 1A. | RISK FACTORS |
• | result in reduced gross margins across our product lines and distribution channels; |
• | increase retailer demands for allowances, incentives and other forms of economic support; and |
• | increase pressure on us to reduce our production costs and our operating expenses. |
• | actual or perceived disruption of service or reduction in service levels to customers and consumers; |
• | potential adverse effects on our internal control environment and inability to preserve adequate internal controls relating to our general and administrative functions in connection with the decision to outsource certain business service activities; |
• | actual or perceived disruption to suppliers, distribution networks and other important operational relationships and the inability to resolve potential conflicts in a timely manner; |
• | diversion of management attention from ongoing business activities and strategic objectives; and |
• | failure to maintain employee morale and retain key employees. |
• | the retailers in these channels maintain – and seek to grow – substantial private-label and exclusive offerings as they strive to differentiate the brands and products they offer from those of their competitors; |
• | these retailers may also change their apparel strategies in a way that shifts focus away from our typical consumer or that otherwise results in a reduction of sales of our products generally, such as a reduction of fixture spaces devoted to our products or a shift to other brands; |
• | other channels, including vertically integrated specialty stores and e-commerce sites, account for a substantial portion of jeanswear and casual wear sales. In some of our mature markets, these stores have placed competitive pressure on our primary distribution channels, and many of these stores are now looking to our developing markets to grow their business; and |
• | shrinking points of distribution, including fewer doors at our customer locations, or bankruptcy or financial difficulties of a customer. |
• | currency fluctuations, which have impacted our results of operations significantly in recent years; |
• | political, economic and social instability; |
• | changes in tariffs and taxes; |
• | regulatory restrictions on repatriating foreign funds back to the United States; and |
• | less protective foreign laws relating to intellectual property. |
• | increasing our vulnerability to general adverse economic and industry conditions; |
• | limiting our flexibility in planning for or reacting to changes in our business and industry; |
• | placing us at a competitive disadvantage compared to some of our competitors that have less debt; and |
• | limiting our ability to obtain additional financing required to fund working capital and capital expenditures and for other general corporate purposes. |
Item 1B. | UNRESOLVED STAFF COMMENTS |
Item 2. | PROPERTIES |
Location | Primary Use | Leased/Owned | ||||
Americas | ||||||
San Francisco, CA | Design and Product Development | Leased | ||||
Hebron, KY | Distribution | Owned | ||||
Canton, MS | Distribution | Owned | ||||
Henderson, NV | Distribution | Owned | ||||
Etobicoke, Canada | Distribution | Owned | ||||
Cuautitlan, Mexico | Distribution | Leased | ||||
Europe | ||||||
Plock, Poland | Manufacturing and Finishing | Leased(1) | ||||
Northhampton, U.K. | Distribution | Leased | ||||
Asia | ||||||
Adelaide, Australia | Distribution | Leased | ||||
Cape Town, South Africa | Manufacturing, Finishing and Distribution | Leased |
(1) | Building and improvements are owned but subject to a ground lease. |
Item 3. | LEGAL PROCEEDINGS |
Item 4. | MINE SAFETY DISCLOSURES |
Item 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Item 6. | SELECTED FINANCIAL DATA |
Year Ended November 26, 2017 | Year Ended November 27, 2016 | Year Ended November 29, 2015 | Year Ended November 30, 2014 | Year Ended November 24, 2013 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Statements of Income Data: | |||||||||||||||||||
Net revenues | $ | 4,904,030 | $ | 4,552,739 | $ | 4,494,493 | $ | 4,753,992 | $ | 4,681,691 | |||||||||
Cost of goods sold | 2,341,301 | 2,223,727 | 2,225,512 | 2,405,552 | 2,331,219 | ||||||||||||||
Gross profit | 2,562,729 | 2,329,012 | 2,268,981 | 2,348,440 | 2,350,472 | ||||||||||||||
Selling, general and administrative expenses(1) | 2,095,560 | 1,866,493 | 1,823,863 | 1,906,164 | 1,884,965 | ||||||||||||||
Restructuring, net | — | 312 | 14,071 | 128,425 | — | ||||||||||||||
Operating income | 467,169 | 462,207 | 431,047 | 313,851 | 465,507 | ||||||||||||||
Interest expense | (68,603 | ) | (73,170 | ) | (81,214 | ) | (117,597 | ) | (129,024 | ) | |||||||||
Loss on early extinguishment of debt | (22,793 | ) | — | (14,002 | ) | (20,343 | ) | (689 | ) | ||||||||||
Other income (expense), net | (26,992 | ) | 18,223 | (25,433 | ) | (22,057 | ) | (13,181 | ) | ||||||||||
Income before taxes | 348,781 | 407,260 | 310,398 | 153,854 | 322,613 | ||||||||||||||
Income tax expense | 64,225 | 116,051 | 100,507 | 49,545 | 94,477 | ||||||||||||||
Net income | 284,556 | 291,209 | 209,891 | 104,309 | 228,136 | ||||||||||||||
Net (income) loss attributable to noncontrolling interest | (3,153 | ) | (157 | ) | (455 | ) | 1,769 | 1,057 | |||||||||||
Net income attributable to Levi Strauss & Co. | $ | 281,403 | $ | 291,052 | $ | 209,436 | $ | 106,078 | $ | 229,193 | |||||||||
Statements of Cash Flow Data: | |||||||||||||||||||
Net cash flow provided by (used for): | |||||||||||||||||||
Operating activities | $ | 525,941 | $ | 306,550 | $ | 218,332 | $ | 232,909 | $ | 411,268 | |||||||||
Investing activities | (124,391 | ) | (68,348 | ) | (80,833 | ) | (71,849 | ) | (92,798 | ) | |||||||||
Financing activities | (151,733 | ) | (173,549 | ) | (94,895 | ) | (341,676 | ) | (230,509 | ) | |||||||||
Balance Sheet Data: | |||||||||||||||||||
Cash and cash equivalents | $ | 633,622 | $ | 375,563 | $ | 318,571 | $ | 298,255 | $ | 489,258 | |||||||||
Working capital | 1,116,766 | 924,404 | 681,982 | 603,202 | 867,158 | ||||||||||||||
Total assets | 3,354,692 | 2,987,096 | 2,884,395 | 2,906,901 | 3,106,330 | ||||||||||||||
Total debt, excluding capital leases | 1,077,311 | 1,045,178 | 1,152,541 | 1,209,624 | 1,524,998 | ||||||||||||||
Total capital leases | 17,878 | 16,811 | 12,907 | 12,142 | 10,833 | ||||||||||||||
Total Levi Strauss & Co. stockholders' equity | 696,910 | 509,555 | 330,268 | 153,243 | 171,666 | ||||||||||||||
Other Financial Data: | |||||||||||||||||||
Depreciation and amortization | $ | 117,387 | $ | 103,878 | $ | 102,044 | $ | 109,474 | $ | 115,720 | |||||||||
Capital expenditures | 118,778 | 102,950 | 102,308 | 73,396 | 91,771 | ||||||||||||||
Cash dividends paid | 70,000 | 60,000 | 50,000 | 30,003 | 25,076 |
(1) | The period ended November 26, 2017 includes an out-of-period adjustment which increased selling, general and administrative expenses by approximately $8.3 million and decreased net income by approximately $5.1 million. This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest awards after retirement. The Company has evaluated the effects of this out-of-period adjustment, both qualitatively and quantitatively, and concluded that the correction of this amount was not material to the current period or the periods in which they originated, including quarterly reporting. |
Item 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Factors that impact consumer discretionary spending, which remains mixed globally, have created a challenging retail environment for us and our customers, characterized by unpredictable traffic patterns and a general promotional environment. In developed economies, slow real wage growth and a shift in consumer spending to interest-rate sensitive durable goods and other non-apparel categories also continue to pressure global discretionary spending. Consumers continue to focus on value pricing, with the off-price retail channel remaining strong, partially to the detriment of traditional broadline retailers, particularly at the mid-tier. |
• | More competitors are seeking growth globally, thereby raising the competitiveness across regions. Some of these competitors are entering into markets where we already have a mature business such as the United States, Mexico, Western Europe and Japan, and may provide consumers discretionary purchase alternatives or lower-priced apparel offerings. |
• | Wholesaler/retailer dynamics and wholesale channels remain challenged by slowed growth prospects due to increased competition from e-commerce shopping, pricing transparency enabled by proliferation of online technologies, vertically-integrated specialty stores, and fast-fashion retail. Retailers, including our top customers, may decide to consolidate, undergo restructurings or rationalize their stores which could result in reduction in the number of stores |
• | Many apparel companies that have traditionally relied on wholesale distribution channels have invested in expanding their own retail store and e-commerce distribution and consumer-facing technologies, which has increased competition in the retail market. |
• | Competition for, and price volatility of, resources throughout the supply chain have increased, causing us and other apparel manufacturers to continue to seek alternative sourcing channels and create new efficiencies in our global supply chain. Trends affecting the supply chain include the proliferation of lower-cost sourcing alternatives, resulting in reduced barriers to entry for new competitors, and the impact of fluctuating prices of labor and raw materials as well as the consolidation of suppliers. Trends such as these can bring additional pressure on us and other wholesalers and retailers to shorten lead-times, reduce costs and raise product prices. |
• | Foreign currencies continue to be volatile. Significant fluctuations of the U.S. Dollar against various foreign currencies, including the Euro, British Pound and Mexican Peso, will impact our financial results, affecting translation, and revenue, operating margins and net income. |
• | The current environment has introduced greater uncertainty with respect to potential tax and trade regulations. Such changes, including import tariffs or taxes, may require us to modify our current business practices and, could have material adverse effect on our business and results of operations. For more information, see Note 22 of the accompanying consolidated financial statements. |
• | Net revenues. Compared to 2016, consolidated net revenues increased 7.7% on a reported basis and increased 7.5% on a constant-currency basis driven by strong growth of our retail network in all three regions and growth in our wholesale channel, primarily in Europe. |
• | Gross margin. Compared to 2016, consolidated gross margin of 52.3% increased 1.1% primarily due to our company-operated retail growth and international revenue growth. |
• | Operating income. Compared to 2016, consolidated operating income increased 1.1% and operating margin declined to 9.5% from 10.2%, primarily reflecting higher selling, general and administrative ("SG&A") expenses associated with the expansion of our company-operated retail network and a higher investment in advertising. This was partially offset by higher net revenues and improved gross margin. |
• | Cash flows. Cash flows provided by operating activities were $526 million for 2017 as compared to $307 million for 2016; the increase primarily reflects higher cash received from customers offset by increased payments to vendors reflecting the growth in our company-operated store network and higher investment in advertising. |
• | Net revenues is primarily comprised of sales of products to wholesale customers, including franchised stores, and direct sales to consumers at our company-operated e-commerce sites and stores and at our company-operated shop-in-shops located within department stores. It includes discounts, allowances for estimated returns and incentives. |
• | Cost of goods sold is primarily comprised of product costs, labor and related overhead, sourcing costs, inbound freight, internal transfers, and the cost of operating our remaining manufacturing facilities, including the related depreciation expense. |
• | Selling costs include, among other things, all occupancy costs and depreciation associated with our company-operated stores and commissions associated with our company-operated shop-in-shops, as well as costs associated with our e-commerce operations. |
• | We reflect substantially all distribution costs in SG&A, including costs related to receiving and inspection at distribution centers, warehousing, shipping to our customers, handling, and certain other activities associated with our distribution network. |
Year Ended | ||||||||||||||||
November 26, 2017 | November 27, 2016 | % Increase (Decrease) | November 26, 2017 | November 27, 2016 | ||||||||||||
% of Net Revenues | % of Net Revenues | |||||||||||||||
(Dollars in millions) | ||||||||||||||||
Net revenues | $ | 4,904.0 | $ | 4,552.7 | 7.7 | % | 100.0 | % | 100.0 | % | ||||||
Cost of goods sold | 2,341.3 | 2,223.7 | 5.3 | % | 47.7 | % | 48.8 | % | ||||||||
Gross profit | 2,562.7 | 2,329.0 | 10.0 | % | 52.3 | % | 51.2 | % | ||||||||
Selling, general and administrative expenses | 2,095.5 | 1,866.5 | 12.3 | % | 42.7 | % | 41.0 | % | ||||||||
Restructuring, net | — | 0.3 | * | — | — | |||||||||||
Operating income | 467.2 | 462.2 | 1.1 | % | 9.5 | % | 10.2 | % | ||||||||
Interest expense | (68.6 | ) | (73.2 | ) | (6.3 | )% | (1.4 | )% | (1.6 | )% | ||||||
Loss on early extinguishment of debt | (22.8 | ) | — | (100.0 | )% | (0.5 | )% | — | ||||||||
Other income (expense), net | (27.0 | ) | 18.2 | * | (0.6 | )% | 0.4 | % | ||||||||
Income before income taxes | 348.8 | 407.2 | (14.3 | )% | 7.1 | % | 8.9 | % | ||||||||
Income tax expense | 64.2 | 116.0 | (44.7 | )% | 1.3 | % | 2.5 | % | ||||||||
Net income | 284.6 | 291.2 | (2.3 | )% | 5.8 | % | 6.4 | % | ||||||||
Net income attributable to noncontrolling interest | (3.2 | ) | (0.2 | ) | * | (0.1 | )% | — | ||||||||
Net income attributable to Levi Strauss & Co. | $ | 281.4 | $ | 291.0 | (3.3 | )% | 5.7 | % | 6.4 | % |
Year Ended | |||||||||||||
% Increase (Decrease) | |||||||||||||
November 26, 2017 | November 27, 2016 | As Reported | Constant Currency | ||||||||||
(Dollars in millions) | |||||||||||||
Net revenues: | |||||||||||||
Americas | $ | 2,774.0 | $ | 2,682.9 | 3.4 | % | 3.4 | % | |||||
Europe | 1,312.3 | 1,091.4 | 20.2 | % | 18.8 | % | |||||||
Asia | 817.7 | 778.4 | 5.0 | % | 5.3 | % | |||||||
Total net revenues | $ | 4,904.0 | $ | 4,552.7 | 7.7 | % | 7.5 | % |
Year Ended | ||||||||||
November 26, 2017 | November 27, 2016 | % Increase (Decrease) | ||||||||
(Dollars in millions) | ||||||||||
Net revenues | $ | 4,904.0 | $ | 4,552.7 | 7.7 | % | ||||
Cost of goods sold | 2,341.3 | 2,223.7 | 5.3 | % | ||||||
Gross profit | $ | 2,562.7 | $ | 2,329.0 | 10.0 | % | ||||
Gross margin | 52.3 | % | 51.2 | % |
Year Ended | ||||||||||||||||
November 26, 2017 | November 27, 2016 | % Increase (Decrease) | November 26, 2017 | November 27, 2016 | ||||||||||||
% of Net Revenues | % of Net Revenues | |||||||||||||||
(Dollars in millions) | ||||||||||||||||
Selling | $ | 888.2 | $ | 783.2 | 13.4 | % | 18.1 | % | 17.2 | % | ||||||
Advertising and promotion | 323.3 | 284.0 | 13.8 | % | 6.6 | % | 6.2 | % | ||||||||
Administration | 411.0 | 350.1 | 17.4 | % | 8.4 | % | 7.7 | % | ||||||||
Other | 473.0 | 442.0 | 7.2 | % | 9.7 | % | 9.7 | % | ||||||||
Restructuring-related charges | — | 7.2 | (100 | )% | — | % | 0.2 | % | ||||||||
Total SG&A | $ | 2,095.5 | $ | 1,866.5 | 12.3 | % | 42.7 | % | 41.0 | % |
Year Ended | ||||||||||||||||||
November 26, 2017 | November 27, 2016 | % Increase (Decrease) | November 26, 2017 | November 27, 2016 | ||||||||||||||
% of Net Revenues | % of Net Revenues | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Operating income: | ||||||||||||||||||
Americas | $ | 529.3 | $ | 507.8 | 4.2 | % | 19.1 | % | 18.9 | % | ||||||||
Europe | 198.7 | 154.8 | 28.4 | % | 15.1 | % | 14.2 | % | ||||||||||
Asia | 78.3 | 80.9 | (3.2 | )% | 9.6 | % | 10.4 | % | ||||||||||
Total regional operating income | 806.3 | 743.5 | 8.4 | % | 16.4 | % | * | 16.3 | % | * | ||||||||
Corporate: | ||||||||||||||||||
Restructuring, net | — | 0.3 | (100.0 | )% | — | * | — | * | ||||||||||
Restructuring-related charges | — | 7.2 | (100.0 | )% | — | * | 0.2 | % | * | |||||||||
Other corporate staff costs and expenses | 339.1 | 273.8 | 23.8 | % | 6.9 | % | * | 6.0 | % | * | ||||||||
Corporate expenses | 339.1 | 281.3 | 20.5 | % | 6.9 | % | * | 6.2 | % | * | ||||||||
Total operating income | $ | 467.2 | $ | 462.2 | 1.1 | % | 9.5 | % | * | 10.2 | % | * | ||||||
Operating margin | 9.5 | % | 10.2 | % |
• | Americas. Currency translation did not have a significant impact on operating income in the region for the year ended November 26, 2017. The increase in operating income is primarily due to higher net revenues and gross margin partially offset by higher SG&A selling expense due to retail expansion. |
• | Europe. Currency translation favorably affected operating income by approximately $7 million as compared to the prior year. The increase in operating income is due to higher net revenues and gross margin partially offset by higher SG&A selling expense to support growth and higher advertising and promotion expense. |
• | Asia. Currency translation did not have a significant impact on operating income in the region for the year ended November 26, 2017. The decrease in operating income for 2017 is due to higher SG&A selling expense related to our retail network to support growth, partially offset by higher net revenues. |
Year Ended | ||||||||||||||||
November 27, 2016 | November 29, 2015 | % Increase (Decrease) | November 27, 2016 | November 29, 2015 | ||||||||||||
% of Net Revenues | % of Net Revenues | |||||||||||||||
(Dollars in millions) | ||||||||||||||||
Net revenues | $ | 4,552.7 | $ | 4,494.5 | 1.3 | % | 100.0 | % | 100.0 | % | ||||||
Cost of goods sold | 2,223.7 | 2,225.5 | (0.1 | )% | 48.8 | % | 49.5 | % | ||||||||
Gross profit | 2,329.0 | 2,269.0 | 2.6 | % | 51.2 | % | 50.5 | % | ||||||||
Selling, general and administrative expenses | 1,866.5 | 1,823.9 | 2.3 | % | 41.0 | % | 40.6 | % | ||||||||
Restructuring, net | 0.3 | 14.1 | (97.8 | )% | — | 0.3 | % | |||||||||
Operating income | 462.2 | 431.0 | 7.1 | % | 10.2 | % | 9.6 | % | ||||||||
Interest expense | (73.2 | ) | (81.2 | ) | (9.9 | )% | (1.6 | )% | (1.8 | )% | ||||||
Loss on early extinguishment of debt | — | (14.0 | ) | (100.0 | )% | — | (0.3 | )% | ||||||||
Other income (expense), net | 18.2 | (25.4 | ) | (171.7 | )% | 0.4 | % | (0.6 | )% | |||||||
Income before income taxes | 407.2 | 310.4 | 31.2 | % | 8.9 | % | 6.9 | % | ||||||||
Income tax expense | 116.0 | 100.5 | 15.5 | % | 2.5 | % | 2.2 | % | ||||||||
Net income | 291.2 | 209.9 | 38.7 | % | 6.4 | % | 4.7 | % | ||||||||
Net (income) loss attributable to noncontrolling interest | (0.2 | ) | (0.5 | ) | (65.5 | )% | — | — | ||||||||
Net income attributable to Levi Strauss & Co. | $ | 291.0 | $ | 209.4 | 39.0 | % | 6.4 | % | 4.7 | % |
Year Ended | |||||||||||||
% Increase (Decrease) | |||||||||||||
November 27, 2016 | November 29, 2015 | As Reported | Constant Currency | ||||||||||
(Dollars in millions) | |||||||||||||
Net revenues: | |||||||||||||
Americas | $ | 2,682.9 | $ | 2,726.5 | (1.6 | )% | (0.3 | )% | |||||
Europe | 1,091.4 | 1,016.4 | 7.4 | % | 10.0 | % | |||||||
Asia | 778.4 | 751.6 | 3.6 | % | 6.1 | % | |||||||
Total net revenues | $ | 4,552.7 | $ | 4,494.5 | 1.3 | % | 3.1 | % |
Year Ended | ||||||||||
November 27, 2016 | November 29, 2015 | % Increase (Decrease) | ||||||||
(Dollars in millions) | ||||||||||
Net revenues | $ | 4,552.7 | $ | 4,494.5 | 1.3 | % | ||||
Cost of goods sold | 2,223.7 | 2,225.5 | (0.1 | )% | ||||||
Gross profit | $ | 2,329.0 | $ | 2,269.0 | 2.6 | % | ||||
Gross margin | 51.2 | % | 50.5 | % |
Year Ended | ||||||||||||||||
November 27, 2016 | November 29, 2015 | % Increase (Decrease) | November 27, 2016 | November 29, 2015 | ||||||||||||
% of Net Revenues | % of Net Revenues | |||||||||||||||
Selling | $ | 783.2 | $ | 734.1 | 6.6 | % | 17.2 | % | 16.3 | % | ||||||
Advertising and promotion | 284.0 | 276.4 | 2.8 | % | 6.2 | % | 6.1 | % | ||||||||
Administration | 350.1 | 364.4 | (3.9 | )% | 7.7 | % | 8.1 | % | ||||||||
Other | 442.0 | 418.3 | 5.7 | % | 9.7 | % | 9.3 | % | ||||||||
Restructuring-related charges | 7.2 | 30.7 | (76.6 | )% | 0.2 | % | 0.7 | % | ||||||||
Total SG&A | $ | 1,866.5 | $ | 1,823.9 | 2.3 | % | 41.0 | % | 40.6 | % |
Year Ended | ||||||||||||||||||
November 27, 2016 | November 29, 2015 | % Increase (Decrease) | November 27, 2016 | November 29, 2015 | ||||||||||||||
% of Net Revenues | % of Net Revenues | |||||||||||||||||
(Dollars in millions) | ||||||||||||||||||
Operating income: | ||||||||||||||||||
Americas | $ | 507.8 | $ | 551.0 | (7.8 | )% | 18.9 | % | 20.2 | % | ||||||||
Europe | 154.8 | 144.4 | 7.2 | % | 14.2 | % | 14.2 | % | ||||||||||
Asia | 80.9 | 99.5 | (18.7 | )% | 10.4 | % | 13.2 | % | ||||||||||
Total regional operating income | 743.5 | 794.9 | (6.5 | )% | 16.3 | % | * | 17.7 | % | * | ||||||||
Corporate: | ||||||||||||||||||
Restructuring, net | 0.3 | 14.1 | (97.8 | )% | — | * | 0.3 | % | * | |||||||||
Restructuring-related charges | 7.2 | 30.7 | (76.6 | )% | 0.2 | % | * | 0.7 | % | * | ||||||||
Other corporate staff costs and expenses | 273.8 | 319.1 | (14.2 | )% | 6.0 | % | * | 7.1 | % | * | ||||||||
Corporate expenses | 281.3 | 363.9 | 22.7 | % | 6.2 | % | * | 8.1 | % | * | ||||||||
Total operating income | $ | 462.2 | $ | 431.0 | 7.2 | % | 10.2 | % | * | 9.6 | % | * | ||||||
Operating margin | 10.2 | % | 9.6 | % |
• | Americas. Currency translation unfavorably affected operating income in the region by approximately $8 million as compared to the prior year. Lower constant-currency operating income and operating margin primarily reflected lower revenues and gross margin as well as increased investment in retail. |
• | Europe. Currency translation favorably affected operating income by approximately $1 million as compared to the prior year. Operating income increased primarily due to the region's higher net revenues, partially offset by increased investment in retail in the region and the unfavorable currency transaction impact of the British Pound. Operating margin remained consistent. |
• | Asia. Currency translation unfavorably affected operating income by approximately $5 million as compared to the prior year. Lower constant-currency operating income and operating margin primarily reflected lower gross margin for the region as well as increased investment in retail and advertising, partially offset by higher revenues in the region. |
Cash Used in | Projected Cash Uses in | ||||||
2017 | 2018 | ||||||
(Dollars in millions) | |||||||
Capital expenditures(1) | $ | 119 | $ | 160 | |||
Interest | 52 | 50 | |||||
Federal, foreign and state taxes (net of refunds) | 55 | 98 | |||||
Pension plans(2) | 54 | 95 | |||||
Postretirement health benefit plans | 12 | 12 | |||||
Dividend(3) | 70 | 90 | |||||
Total selected cash requirements | $ | 362 | $ | 505 |
(1) | Capital expenditures consist primarily of costs associated with information technology investments for e-commerce and investment in company-operated retail stores. |
(2) | The 2018 pension contribution amounts will be recalculated at the end of the plans' fiscal years, which for our U.S. pension plan is at the beginning of the Company's third fiscal quarter. Accordingly, actual contributions may differ materially from those presented here, based on factors such as changes in discount rates and the valuation of pension assets. |
(3) | Subsequent to the fiscal year end, on January 30, 2018, our Board of Directors declared a cash dividend of $90.0 million, payable in two $45 million installments. The Company expects to pay the first installment in the first quarter of 2018 and the second installment in the fourth quarter of 2018. |
Payments due or projected by period | |||||||||||||||||||||||||||
Total | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | |||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||
Contractual and Long-term Liabilities: | |||||||||||||||||||||||||||
Short-term and long-term debt obligations | $ | 1,090 | $ | 38 | $ | — | $ | — | $ | — | $ | — | $ | 1,052 | |||||||||||||
Interest(1) | 389 | 50 | 48 | 48 | 46 | 46 | 151 | ||||||||||||||||||||
Capital lease obligations | 32 | 6 | 6 | 5 | 4 | 4 | 7 | ||||||||||||||||||||
Operating leases(2) | 853 | 185 | 147 | 123 | 99 | 79 | 220 | ||||||||||||||||||||
Purchase obligations(3) | 944 | 677 | 49 | 37 | 24 | 14 | 143 | ||||||||||||||||||||
Postretirement obligations(4) | 93 | 12 | 11 | 11 | 10 | 10 | 39 | ||||||||||||||||||||
Pension obligations(5) | 288 | 95 | 45 | 43 | 23 | 13 | 69 | ||||||||||||||||||||
Long-term employee related benefits(6) | 120 | 29 | 23 | 13 | 3 | 2 | 50 | ||||||||||||||||||||
Total | $ | 3,809 | $ | 1,092 | $ | 329 | $ | 280 | $ | 209 | $ | 168 | $ | 1,731 |
(1) | Interest obligations are computed using constant interest rates until maturity. |
(2) | Amounts reflect contractual obligations relating to our existing leased facilities as of November 26, 2017, and therefore do not reflect our planned future openings of company-operated retail stores. For more information, see "Item 2 – Properties." |
(3) | Amounts reflect estimated commitments of $559 million for inventory purchases, $193 million for sponsorship, naming rights and related benefits with respect to the Levi's® Stadium, $192 million for human resources, advertising, information technology and other professional services. |
(4) | The amounts presented in the table represent an estimate for the next ten years of our projected payments, based on information provided by our plans' actuaries, and have not been reduced by estimated Medicare subsidy receipts, the amounts of which are not material. Our policy is to fund postretirement benefits as claims and premiums are paid. For more information, see Note 8 to our audited consolidated financial statements included in this report. |
(5) | The amounts presented in the table represent an estimate of our projected contributions to the plans for the next ten years based on information provided by our plans' actuaries. For U.S. qualified plans, these estimates can exceed the projected annual minimum required contributions in an effort to level out potential future funding requirements and provide annual funding flexibility. The 2018 contribution amounts will be recalculated at the end of the plans' fiscal years, which for our U.S. pension plan is at the beginning of the Company's third fiscal quarter. Accordingly, actual contributions may differ materially from those presented here, based on factors such as changes in discount rates and the valuation of pension assets. For more information, see Note 8 to our audited consolidated financial statements included in this report. |
(6) | Long-term employee-related benefits primarily relate to the current and non-current portion of deferred compensation arrangements and workers' compensation. We estimated these payments based on prior experience and forecasted activity for these items. For more information, see Note 12 to our audited consolidated financial statements included in this report. |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in millions) | |||||||||||
Cash provided by operating activities | $ | 525.9 | $ | 306.6 | $ | 218.3 | |||||
Cash used for investing activities | (124.4 | ) | (68.3 | ) | (80.8 | ) | |||||
Cash used for financing activities | (151.7 | ) | (173.5 | ) | (94.9 | ) | |||||
Cash and cash equivalents | 633.6 | 375.6 | 318.6 |
• | changes in general economic and financial conditions, and the resulting impact on the level of discretionary consumer spending for apparel and pricing trend fluctuations, and our ability to plan for and respond to the impact of those changes; |
• | our ability to effectively manage any global productivity and outsourcing actions as planned, which are intended to increase productivity and efficiency in our global operations, take advantage of lower-cost service-delivery models in our distribution network and streamline our procurement practices to maximize efficiency in our global operations, without business disruption or mitigation to such disruptions; |
• | consequences of impacts to the businesses of our wholesale customers, including significant store closures or a significant decline in a wholesale customer's financial condition leading to restructuring actions, bankruptcies, liquidations or other unfavorable events for our wholesale customers, caused by factors such as inability to secure financing, decreased discretionary consumer spending, inconsistent traffic patterns and an increase in promotional activity as a result of decreased traffic, pricing fluctuations, general economic and financial conditions and changing consumer preferences; |
• | our and our wholesale customers' decisions to modify strategies and adjust product mix and pricing, and our ability to manage any resulting product transition costs, including liquidating inventory or increasing promotional activity; |
• | our ability to purchase products through our independent contract manufacturers that are made with quality raw materials and our ability to mitigate the variability of costs related to manufacturing, sourcing, and raw materials supply and to manage consumer response to such mitigating actions; |
• | our ability to gauge and adapt to changing U.S. and international retail environments and fashion trends and changing consumer preferences in product, price-points, as well as in-store and digital shopping experiences; |
• | our ability to respond to price, innovation and other competitive pressures in the global apparel industry, on and from our key customers and in our key markets; |
• | our ability to increase the number of dedicated stores for our products, including through opening and profitably operating company-operated stores; |
• | consequences of foreign currency exchange and interest rate fluctuations; |
• | our ability to successfully prevent or mitigate the impacts of data security breaches; |
• | our ability to attract and retain key executives and other key employees; |
• | our ability to protect our trademarks and other intellectual property; |
• | the impact of the variables that affect the net periodic benefit cost and future funding requirements of our postretirement benefits and pension plans; |
• | our dependence on key distribution channels, customers and suppliers; |
• | our ability to utilize our tax credits and net operating loss carryforwards; |
• | ongoing or future litigation matters and disputes and regulatory developments; |
• | changes in or application of trade and tax laws, including the recently passed Tax Cuts and Jobs Act in the U.S., potential increases in import tariffs or taxes and the potential renegotiation of NAFTA; and |
• | political, social and economic instability, or natural disasters, in countries where we or our customers do business. |
Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
As of November 26, 2017 | As of November 27, 2016 | ||||||||||||||||||||
Average Forward Exchange Rate | Notional Amount | Fair Value | Average Forward Exchange Rate | Notional Amount | Fair Value | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Currency | |||||||||||||||||||||
Australian Dollar | 0.75 | $ | (22,440 | ) | $ | (477 | ) | 0.74 | $ | 1,957 | $ | (472 | ) | ||||||||
Canadian Dollar | 1.3 | (69,417 | ) | (1,656 | ) | 1.33 | 30,711 | 366 | |||||||||||||
Swiss Franc | 0.99 | 7,595 | 151 | 0.97 | (14,227 | ) | (488 | ) | |||||||||||||
Czech Koruna | 21.88 | 524 | 14 | 24.30 | (488 | ) | (21 | ) | |||||||||||||
Danish Krone | 6.36 | 2,112 | 41 | 6.70 | (2,357 | ) | (96 | ) | |||||||||||||
Euro | 1.18 | (218,150 | ) | (6,633 | ) | 1.13 | 87,304 | 4,734 | |||||||||||||
British Pound Sterling | 1.31 | (103,092 | ) | (2,393 | ) | 1.32 | 67,935 | 5,945 | |||||||||||||
Hong Kong Dollar | 7.77 | 5,757 | (16 | ) | 7.75 | (5,096 | ) | (2 | ) | ||||||||||||
Hungarian Forint | 267.02 | 1,773 | 34 | 278.41 | (1,510 | ) | (70 | ) | |||||||||||||
Japanese Yen | 110.07 | (59,234 | ) | 69 | 112.16 | 44,648 | (140 | ) | |||||||||||||
South Korean Won | 1,128.33 | (20,210 | ) | (713 | ) | 1,178.38 | 13,721 | (41 | ) | ||||||||||||
Mexican Peso | 20.5 | (85,242 | ) | (5,344 | ) | 18.95 | 99,454 | 11,124 | |||||||||||||
Norwegian Krone | 8.13 | 1,489 | 4 | 8.21 | (1,686 | ) | (73 | ) | |||||||||||||
New Zealand Dollar | 0.69 | 4,996 | — | 0.72 | (4,172 | ) | (75 | ) | |||||||||||||
Polish Zloty | 3.64 | 5,193 | 169 | 3.95 | (4,078 | ) | (412 | ) | |||||||||||||
Swedish Krona | 8.43 | (22,112 | ) | (793 | ) | 8.44 | 9,319 | 827 | |||||||||||||
Singapore Dollar | 1.36 | 27,005 | 418 | 1.41 | (28,230 | ) | (359 | ) | |||||||||||||
South African Rand | 14.68 | (12,441 | ) | (533 | ) | 15.71 | 16,721 | (1,873 | ) | ||||||||||||
Total | $ | (555,894 | ) | $ | (17,658 | ) | $ | 309,926 | $ | 18,874 |
As of November 26, 2017 | As of November 27, 2016 | ||||||||||||||||||||||||||||||
Expected Maturity Date | |||||||||||||||||||||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | Total | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Debt Instruments | |||||||||||||||||||||||||||||||
Fixed Rate (US$) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 500,000 | $ | 500,000 | $ | 1,025,000 | |||||||||||||||
Average Interest Rate | — | — | — | — | — | 5.00 | % | 5.00 | % | 5.96 | % | ||||||||||||||||||||
Fixed Rate (Euro 475 million) | — | — | — | — | — | 562,780 | 562,780 | — | |||||||||||||||||||||||
Average Interest Rate | — | — | — | — | — | 3.375 | % | 3.375 | % | — | |||||||||||||||||||||
Variable Rate (US$) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Average Interest Rate | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total Principal (face amount) of our debt instruments(1) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,062,780 | $ | 1,062,780 | $ | 1,025,000 |
(1) | Excluded from this table are other short-term borrowings of $38.5 million as of November 26, 2017, consisting of term loans and revolving credit facilities at various foreign subsidiaries which we expect to either pay over the next twelve months or refinance at the end of their applicable terms. Of the $38.5 million, $21.7 million was fixed-rate debt and $16.8 million was variable-rate debt. |
Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
November 26, 2017 | November 27, 2016 | ||||||
(Dollars in thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 633,622 | $ | 375,563 | |||
Trade receivables, net of allowance for doubtful accounts of $11,726 and $11,974 | 485,485 | 479,018 | |||||
Inventories: | |||||||
Raw materials | 3,858 | 2,454 | |||||
Work-in-process | 3,008 | 3,074 | |||||
Finished goods | 752,530 | 710,653 | |||||
Total inventories | 759,396 | 716,181 | |||||
Other current assets | 115,889 | 115,385 | |||||
Total current assets | 1,994,392 | 1,686,147 | |||||
Property, plant and equipment, net of accumulated depreciation of $951,249 and $856,588 | 424,463 | 393,605 | |||||
Goodwill | 237,327 | 234,280 | |||||
Other intangible assets, net | 42,893 | 42,946 | |||||
Deferred tax assets, net | 537,923 | 523,101 | |||||
Other non-current assets | 117,694 | 107,017 | |||||
Total assets | $ | 3,354,692 | $ | 2,987,096 | |||
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 38,451 | $ | 38,922 | |||
Accounts payable | 289,505 | 270,293 | |||||
Accrued salaries, wages and employee benefits | 227,251 | 180,740 | |||||
Restructuring liabilities | 786 | 4,878 | |||||
Accrued interest payable | 6,327 | 5,098 | |||||
Accrued income taxes | 16,020 | 9,652 | |||||
Other accrued liabilities | 299,286 | 252,160 | |||||
Total current liabilities | 877,626 | 761,743 | |||||
Long-term debt | 1,038,860 | 1,006,256 | |||||
Long-term capital leases | 16,524 | 15,360 | |||||
Postretirement medical benefits | 89,248 | 100,966 | |||||
Pension liability | 314,525 | 354,461 | |||||
Long-term employee related benefits | 90,998 | 73,243 | |||||
Long-term income tax liabilities | 20,457 | 20,150 | |||||
Other long-term liabilities | 77,031 | 63,796 | |||||
Total liabilities | 2,525,269 | 2,395,975 | |||||
Commitments and contingencies | |||||||
Temporary equity | 127,035 | 79,346 | |||||
Stockholders’ Equity: | |||||||
Levi Strauss & Co. stockholders’ equity | |||||||
Common stock — $.01 par value; 270,000,000 shares authorized; 37,521,447 shares and 37,470,158 shares issued and outstanding | 375 | 375 | |||||
Additional paid-in capital | — | 1,445 | |||||
Retained earnings | 1,100,916 | 935,049 | |||||
Accumulated other comprehensive loss | (404,381 | ) | (427,314 | ) | |||
Total Levi Strauss & Co. stockholders’ equity | 696,910 | 509,555 | |||||
Noncontrolling interest | 5,478 | 2,220 | |||||
Total stockholders’ equity | 702,388 | 511,775 | |||||
Total liabilities, temporary equity and stockholders’ equity | $ | 3,354,692 | $ | 2,987,096 |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net revenues | $ | 4,904,030 | $ | 4,552,739 | $ | 4,494,493 | |||||
Cost of goods sold | 2,341,301 | 2,223,727 | 2,225,512 | ||||||||
Gross profit | 2,562,729 | 2,329,012 | 2,268,981 | ||||||||
Selling, general and administrative expenses | 2,095,560 | 1,866,493 | 1,823,863 | ||||||||
Restructuring, net | — | 312 | 14,071 | ||||||||
Operating income | 467,169 | 462,207 | 431,047 | ||||||||
Interest expense | (68,603 | ) | (73,170 | ) | (81,214 | ) | |||||
Loss on early extinguishment of debt | (22,793 | ) | — | (14,002 | ) | ||||||
Other income (expense), net | (26,992 | ) | 18,223 | (25,433 | ) | ||||||
Income before income taxes | 348,781 | 407,260 | 310,398 | ||||||||
Income tax expense | 64,225 | 116,051 | 100,507 | ||||||||
Net income | 284,556 | 291,209 | 209,891 | ||||||||
Net income attributable to noncontrolling interest | (3,153 | ) | (157 | ) | (455 | ) | |||||
Net income attributable to Levi Strauss & Co. | $ | 281,403 | $ | 291,052 | $ | 209,436 |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net income | $ | 284,556 | $ | 291,209 | $ | 209,891 | |||||
Other comprehensive income (loss), before related income taxes: | |||||||||||
Pension and postretirement benefits | 30,125 | (22,925 | ) | 38,785 | |||||||
Net investment hedge (losses) gains | (59,945 | ) | (829 | ) | 385 | ||||||
Foreign currency translation gains (losses) | 40,256 | (30,380 | ) | (28,791 | ) | ||||||
Unrealized gains (losses) on marketable securities | 3,379 | 143 | (575 | ) | |||||||
Total other comprehensive income (loss), before related income taxes | 13,815 | (53,991 | ) | 9,804 | |||||||
Income tax benefit (expense) related to items of other comprehensive (loss) income | 9,223 | 6,211 | (13,602 | ) | |||||||
Comprehensive income, net of income taxes | 307,594 | 243,429 | 206,093 | ||||||||
Comprehensive income attributable to noncontrolling interest | (3,258 | ) | (625 | ) | (383 | ) | |||||
Comprehensive income attributable to Levi Strauss & Co. | $ | 304,336 | $ | 242,804 | $ | 205,710 |
Levi Strauss & Co. Stockholders | |||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Stockholders' Equity | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Balance at November 30, 2014 | $ | 374 | $ | — | $ | 528,209 | $ | (375,340 | ) | $ | 1,212 | $ | 154,455 | ||||||||||
Net income | — | — | 209,436 | — | 455 | 209,891 | |||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (3,726 | ) | (72 | ) | (3,798 | ) | ||||||||||||||
Stock-based compensation and dividends, net | 1 | 16,674 | (66 | ) | — | — | 16,609 | ||||||||||||||||
Reclassification to temporary equity | — | (10,961 | ) | 19,842 | — | — | 8,881 | ||||||||||||||||
Repurchase of common stock | — | (2,422 | ) | (1,753 | ) | — | — | (4,175 | ) | ||||||||||||||
Cash dividends paid | — | — | (50,000 | ) | — | — | (50,000 | ) | |||||||||||||||
Balance at November 29, 2015 | 375 | 3,291 | 705,668 | (379,066 | ) | 1,595 | 331,863 | ||||||||||||||||
Net income | — | — | 291,052 | — | 157 | 291,209 | |||||||||||||||||
Other comprehensive (loss) income, net of tax | — | — | — | (48,248 | ) | 468 | (47,780 | ) | |||||||||||||||
Stock-based compensation and dividends, net | — | 9,649 | (40 | ) | — | — | 9,609 | ||||||||||||||||
Reclassification to temporary equity | — | (10,563 | ) | — | — | — | (10,563 | ) | |||||||||||||||
Repurchase of common stock | — | (932 | ) | (1,631 | ) | — | — | (2,563 | ) | ||||||||||||||
Cash dividends paid | — | — | (60,000 | ) | — | — | (60,000 | ) | |||||||||||||||
Balance at November 27, 2016 | 375 | 1,445 | 935,049 | (427,314 | ) | 2,220 | 511,775 | ||||||||||||||||
Net income | — | — | 281,403 | — | 3,153 | 284,556 | |||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 22,933 | 105 | 23,038 | |||||||||||||||||
Stock-based compensation and dividends, net | 2 | 25,878 | (70 | ) | — | — | 25,810 | ||||||||||||||||
Reclassification to temporary equity | — | (13,575 | ) | (34,114 | ) | — | — | (47,689 | ) | ||||||||||||||
Repurchase of common stock | (2 | ) | (13,748 | ) | (11,352 | ) | — | — | (25,102 | ) | |||||||||||||
Cash dividends paid | — | — | (70,000 | ) | — | — | (70,000 | ) | |||||||||||||||
Balance at November 26, 2017 | $ | 375 | $ | — | $ | 1,100,916 | $ | (404,381 | ) | $ | 5,478 | $ | 702,388 |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | $ | 284,556 | $ | 291,209 | $ | 209,891 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 117,387 | 103,878 | 102,044 | ||||||||
Unrealized foreign exchange (gains) losses | 24,731 | (5,853 | ) | (371 | ) | ||||||
Realized (gain) loss on settlement of forward foreign exchange contracts not designated for hedge accounting | 5,773 | (17,175 | ) | (14,720 | ) | ||||||
Employee benefit plans’ amortization from accumulated other comprehensive loss and settlement losses | 30,125 | 14,991 | 16,983 | ||||||||
Loss on extinguishment of debt, net of write-off of unamortized debt issuance costs | 22,793 | — | 3,448 | ||||||||
Stock-based compensation | 25,809 | 9,333 | 15,137 | ||||||||
Deferred income taxes | (486 | ) | 66,078 | 58,386 | |||||||
Other, net | 8,005 | 2,813 | 1,575 | ||||||||
Change in operating assets and liabilities: | |||||||||||
Trade receivables | 3,981 | 6,150 | 4,060 | ||||||||
Inventories | (14,409 | ) | (121,379 | ) | 28,566 | ||||||
Other current assets | 1,828 | (22,944 | ) | (3,061 | ) | ||||||
Other non-current assets | (6,862 | ) | (9,103 | ) | (21,375 | ) | |||||
Accounts payable and other accrued liabilities | 35,714 | 43,040 | (80,224 | ) | |||||||
Restructuring liabilities | (4,274 | ) | (17,290 | ) | (36,711 | ) | |||||
Income tax liabilities | 2,478 | 7,653 | (9,680 | ) | |||||||
Accrued salaries, wages and employee benefits and long-term employee related benefits | (9,408 | ) | (49,880 | ) | (44,714 | ) | |||||
Other long-term liabilities | (1,800 | ) | 5,029 | (10,902 | ) | ||||||
Net cash provided by operating activities | 525,941 | 306,550 | 218,332 | ||||||||
Cash Flows from Investing Activities: | |||||||||||
Purchases of property, plant and equipment | (118,778 | ) | (102,950 | ) | (104,579 | ) | |||||
Proceeds from sale of assets | 160 | 17,427 | 9,026 | ||||||||
Proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting | (5,773 | ) | 17,175 | 14,720 | |||||||
Net cash used for investing activities | (124,391 | ) | (68,348 | ) | (80,833 | ) | |||||
Cash Flows from Financing Activities: | |||||||||||
Proceeds from issuance of long-term debt | 502,835 | — | 500,000 | ||||||||
Repayments of long-term debt | (525,000 | ) | (36,092 | ) | (525,001 | ) | |||||
Proceeds from senior revolving credit facility | — | 180,000 | 345,000 | ||||||||
Repayments of senior revolving credit facility | — | (279,000 | ) | (346,000 | ) | ||||||
Proceeds from short-term credit facilities | 35,333 | 29,154 | 23,936 | ||||||||
Repayments of short-term credit facilities | (29,764 | ) | (18,219 | ) | (21,114 | ) | |||||
Other short-term borrowings, net | (6,231 | ) | 13,475 | (12,919 | ) | ||||||
Payment of debt extinguishment costs | (21,902 | ) | — | — | |||||||
Payment of debt issuance costs | (10,366 | ) | — | (4,605 | ) | ||||||
Repurchase of common stock, including shares surrendered for tax withholdings on equity exercises | (25,102 | ) | (2,563 | ) | (4,175 | ) | |||||
Dividend to stockholders | (70,000 | ) | (60,000 | ) | (50,000 | ) | |||||
Other financing, net | (1,536 | ) | (304 | ) | (17 | ) | |||||
Net cash used for financing activities | (151,733 | ) | (173,549 | ) | (94,895 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 8,242 | (7,661 | ) | (22,288 | ) | ||||||
Net increase in cash and cash equivalents | 258,059 | 56,992 | 20,316 | ||||||||
Beginning cash and cash equivalents | 375,563 | 318,571 | 298,255 | ||||||||
Ending cash and cash equivalents | $ | 633,622 | $ | 375,563 | $ | 318,571 | |||||
Noncash Investing Activity: | |||||||||||
Property, plant and equipment acquired and not yet paid at end of period | $ | 22,664 | $ | 19,903 | $ | 23,958 | |||||
Property, plant and equipment additions due to build-to-suit lease transactions | 19,888 | — | — | ||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest during the period | $ | 52,097 | $ | 67,052 | $ | 77,907 | |||||
Cash paid for income taxes during the period, net of refunds | 54,602 | 57,148 | 61,456 |
• | In March 2016, the FASB issued Accounting Standards Update ("ASU") 2016-09, Compensation – Stock Compensation (Topic 718). ASU 2016-09 identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. The Company elected to early adopt all provisions of this new accounting standard in the first quarter of 2017 and will maintain the current forfeiture policy to estimate forfeitures expected to occur to determine stock-based compensation expense. Subsequent to the adoption, exercises of stock awards during fiscal year 2017 resulted in a $6.0 million income tax benefit. |
• | In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 designates the appropriate cash flow classification for debt prepayment or extinguishment costs, the maturing of a zero coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. In certain circumstances, transactions may require bifurcation to appropriately allocate components among operating, investing and financing activities. The Company adopted this standard in the second quarter of 2017 and there was no material impact on its consolidated financial statements. |
• | In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which clarifies that, for inventories measured at the lower of cost and net realizable value, net realizable value should be determined based on the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The Company does not anticipate that the adoption of this new accounting standard will have a material impact on its consolidated financial statements. |
• | In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes the income statement presentation of defined benefit plan expense by requiring separation between operating expense (service cost component) and non-operating expense (all other components, including interest cost, amortization of prior service cost, curtailments and settlements, etc.). The operating expense component is reported with similar compensation costs while the non-operating components are reported in Other Income and Expense. In addition, only the service cost component is eligible for capitalization as part of an asset such as inventory or property, plant and equipment. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
• | In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting. ASU 2017-09 provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
• | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendment in this update defers the effective date of ASU 2014-09 for all entities by one year. Additional ASUs have been issued that are part of the overall new revenue guidance including: ASU 2016-08: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), ASU 2016-10: Identifying Performance Obligations and Licensing and ASU 2016-12: Narrow Scope Improvements and Practical Expedients. The Company is in the process of evaluating the new standard against its existing accounting policies, including the timing of revenue recognition, and its arrangements with customers, to determine the effect the guidance will have on its consolidated financial statements. |
• | In March 2016, the FASB issued ASU No. 2016-04, Liabilities - Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products which aligns recognition of prepaid stored-value product financial liabilities (for example, prepaid gift cards), with Topic 606, Revenues from Contracts with Customers, for non-financial liabilities. In general, certain of these liabilities may be extinguished proportionally in earnings as redemptions occur, or when redemption is remote if issuers are not entitled to the unredeemed stored value. The Company does not anticipate that the adoption of this new accounting standard will have a material impact on its consolidated financial statements. |
• | In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires that the income tax consequences of an intra-entity transfer of an asset other than inventory be recorded when the transfer occurs. Under this guidance, current income taxes and deferred income taxes will move when assets (such as intellectual property and property, plant and equipment) are transferred between consolidated subsidiaries. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
• | In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company does not anticipate that the adoption of this new accounting standard will have a material impact on its consolidated financial statements. |
• | In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for operating or financing lease arrangements exceeding a twelve month term, a right-of-use asset and a lease obligation will be recognized on the balance sheet of the lessee while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The Company is in the process of gathering information to evaluate real estate, personal property, and other arrangements that may meet the definition of a lease. Given the significant number of leases, the Company anticipates the new guidance will have a significant impact on the consolidated balance sheets. |
• | In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 refines and expands hedge accounting for both financial and |
• | In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates the two-step process that required identification of potential impairment and a separate measure of the actual impairment. The annual assessment of goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements. |
November 26, 2017 | November 27, 2016 | ||||||
(Dollars in thousands) | |||||||
Land | $ | 8,239 | $ | 8,178 | |||
Buildings and leasehold improvements | 422,168 | 379,217 | |||||
Machinery and equipment | 452,950 | 407,527 | |||||
Capitalized internal-use software | 450,558 | 418,493 | |||||
Construction in progress | 41,797 | 36,778 | |||||
Subtotal | 1,375,712 | 1,250,193 | |||||
Accumulated depreciation | (951,249 | ) | (856,588 | ) | |||
PP&E, net | $ | 424,463 | $ | 393,605 |
Americas | Europe | Asia | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance, November 29, 2015 | $ | 207,816 | $ | 26,024 | $ | 1,201 | $ | 235,041 | |||||||
Foreign currency fluctuation | (93 | ) | (683 | ) | 15 | (761 | ) | ||||||||
Balance, November 27, 2016 | 207,723 | 25,341 | 1,216 | 234,280 | |||||||||||
Foreign currency fluctuation | 42 | 2,983 | 22 | 3,047 | |||||||||||
Balance, November 26, 2017 | $ | 207,765 | $ | 28,324 | $ | 1,238 | $ | 237,327 |
November 26, 2017 | November 27, 2016 | ||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Total | Gross Carrying Value | Accumulated Amortization | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Non-amortized intangible assets: | |||||||||||||||||||||||
Trademarks | $ | 42,743 | $ | — | $ | 42,743 | $ | 42,743 | $ | — | $ | 42,743 | |||||||||||
Amortized intangible assets: | |||||||||||||||||||||||
Acquired contractual rights | 480 | (330 | ) | 150 | 2,843 | (2,640 | ) | 203 | |||||||||||||||
Total | $ | 43,223 | $ | (330 | ) | $ | 42,893 | $ | 45,586 | $ | (2,640 | ) | $ | 42,946 |
November 26, 2017 | November 27, 2016 | ||||||||||||||||||||||
Fair Value Estimated Using | Fair Value Estimated Using | ||||||||||||||||||||||
Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | Fair Value | Level 1 Inputs(1) | Level 2 Inputs(2) | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Financial assets carried at fair value | |||||||||||||||||||||||
Rabbi trust assets | $ | 31,139 | $ | 31,139 | $ | — | $ | 27,131 | $ | 27,131 | $ | — | |||||||||||
Forward foreign exchange contracts, net(3) | 6,296 | — | 6,296 | 23,267 | — | 23,267 | |||||||||||||||||
Total | $ | 37,435 | $ | 31,139 | $ | 6,296 | $ | 50,398 | $ | 27,131 | $ | 23,267 | |||||||||||
Financial liabilities carried at fair value | |||||||||||||||||||||||
Forward foreign exchange contracts, net(3) | $ | 23,799 | $ | — | $ | 23,799 | $ | 5,533 | $ | — | $ | 5,533 |
(1) | Fair values estimated using Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of a diversified portfolio of equity, fixed income and other securities. See Note 12 for more information on rabbi trust assets. |
(2) | Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. |
(3) | The Company’s over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. |
November 26, 2017 | November 27, 2016 | ||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Financial liabilities carried at adjusted historical cost | |||||||||||||||
6.875% senior notes due 2022(1)(2) | $ | — | $ | — | $ | 527,102 | $ | 550,700 | |||||||
5.00% senior notes due 2025(1) | 485,419 | 507,185 | 483,735 | 480,121 | |||||||||||
3.375% senior notes due 2027(1)(2) | 559,037 | 590,266 | — | — | |||||||||||
Short-term borrowings | 38,727 | 38,727 | 39,009 | 39,009 | |||||||||||
Total | $ | 1,083,183 | $ | 1,136,178 | $ | 1,049,846 | $ | 1,069,830 |
(1) | Fair values are estimated using Level 1 inputs and incorporate mid-market price quotes. Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. |
(2) | On February 28, 2017, the Company issued €475 million in aggregate principal amount of 3.375% senior notes due 2027. On March 3, 2017, the Company completed a cash tender offer for $370.3 million of the 6.875% senior notes due 2022 and the remaining $154.7 million was called on March 31, 2017 for redemption on May 1, 2017. See Note 6 for additional information. |
November 26, 2017 | November 27, 2016 | ||||||||||||||||||||||
Assets | (Liabilities) | Derivative Net Carrying Value | Assets | (Liabilities) | Derivative Net Carrying Value | ||||||||||||||||||
Carrying Value | Carrying Value | Carrying Value | Carrying Value | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Forward foreign exchange contracts(1) | $ | 3,403 | $ | (253 | ) | $ | 3,150 | $ | 30,160 | $ | (6,893 | ) | $ | 23,267 | |||||||||
Forward foreign exchange contracts(2) | 2,893 | (23,546 | ) | (20,653 | ) | 1,481 | (7,014 | ) | (5,533 | ) | |||||||||||||
Total | $ | 6,296 | $ | (23,799 | ) | $ | 31,641 | $ | (13,907 | ) | |||||||||||||
Non-derivatives designated as hedging instruments | |||||||||||||||||||||||
Euro senior notes | $ | — | $ | (562,780 | ) | $ | — | $ | — |
(1) | Included in "Other current assets" or "Other non-current assets" on the Company’s consolidated balance sheets. |
(2) | Included in "Other accrued liabilities" or "Other long-term liabilities" on the Company’s consolidated balance sheets. |
November 26, 2017 | November 27, 2016 | |||||||||||||||||||||||
Gross Amounts of Recognized Assets / (Liabilities) | Gross Amounts Offset in the Balance Sheet | Net Amount of Assets / (Liabilities) Presented in the Balance Sheet | Gross Amounts of Recognized Assets / (Liabilities) | Gross Amounts Offset in the Balance Sheet | Net Amount of Assets / (Liabilities) Presented in the Balance Sheet | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Over-the-counter forward foreign exchange contracts | ||||||||||||||||||||||||
Financial assets | $ | 3,218 | $ | (3,146 | ) | $ | 72 | $ | 29,240 | $ | (8,374 | ) | $ | 20,866 | ||||||||||
Financial liabilities | (20,876 | ) | 3,146 | (17,730 | ) | (10,365 | ) | 8,374 | (1,991 | ) | ||||||||||||||
Total | $ | (17,658 | ) | $ | 18,875 | |||||||||||||||||||
Embedded derivative contracts | ||||||||||||||||||||||||
Financial assets | $ | 3,078 | $ | — | $ | 3,078 | $ | 2,401 | $ | — | $ | 2,401 | ||||||||||||
Financial liabilities | (2,923 | ) | — | (2,923 | ) | (3,542 | ) | — | (3,542 | ) | ||||||||||||||
Total | $ | 155 | $ | (1,141 | ) |
Gain or (Loss) Recognized in AOCI (Effective Portion) | Gain or (Loss) Recognized in Other Income (Expense), Net (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||||||||||||
As of | As of | Year Ended | |||||||||||||||||
November 26, 2017 | November 27, 2016 | November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Forward foreign exchange contracts | $ | 4,637 | $ | 4,637 | |||||||||||||||
Yen-denominated Eurobonds | (19,811 | ) | (19,811 | ) | $ | — | $ | 2,627 | $ | 965 | |||||||||
Euro-denominated senior notes | (75,697 | ) | (15,751 | ) | — | — | — | ||||||||||||
Cumulative income taxes | 35,253 | 12,168 | |||||||||||||||||
Total | $ | (55,618 | ) | $ | (18,757 | ) |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Forward foreign exchange contracts: | |||||||||||
Realized (loss) gain | $ | (5,773 | ) | $ | 17,175 | $ | 14,720 | ||||
Unrealized loss (1) | (35,394 | ) | (1,315 | ) | 19,386 | ||||||
Total | $ | (41,167 | ) | $ | 15,860 | $ | 34,106 |
(1) | The unrealized loss in 2017 is primarily driven by losses on contracts to sell the Mexican Peso, the Euro and the British Pound, as a result of the USD weakening at year end. |
November 26, 2017 | November 27, 2016 | ||||||
(Dollars in thousands) | |||||||
Long-term debt | |||||||
6.875% senior notes due 2022 | $ | — | $ | 524,396 | |||
5.00% senior notes due 2025 | 483,683 | 481,860 | |||||
3.375% senior notes due 2027 | 555,177 | — | |||||
Total long-term debt | $ | 1,038,860 | $ | 1,006,256 | |||
Short-term debt | |||||||
Short-term borrowings | 38,451 | 38,922 | |||||
Total debt | $ | 1,077,311 | $ | 1,045,178 |
(Dollars in thousands) | |||||
2018 | $ | 38,451 | |||
2019 | — | ||||
2020 | — | ||||
2021 | — | ||||
2022 | — | ||||
Thereafter | 1,051,862 | ||||
Total future debt principal payments | $ | 1,090,313 |
Pension Benefits | Postretirement Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Change in benefit obligation: | |||||||||||||||
Benefit obligation at beginning of year | $ | 1,191,934 | $ | 1,194,365 | $ | 112,451 | $ | 117,740 | |||||||
Service cost | 9,975 | 8,234 | 172 | 200 | |||||||||||
Interest cost | 36,853 | 37,819 | 3,148 | 3,223 | |||||||||||
Plan participants' contribution | 570 | 484 | 4,376 | 4,172 | |||||||||||
Actuarial loss (gain)(1) | 59,121 | 33,948 | (5,516 | ) | 5,556 | ||||||||||
Net curtailment loss | 132 | 119 | — | — | |||||||||||
Impact of foreign currency changes | 15,545 | (15,435 | ) | — | — | ||||||||||
Plan settlements | (410 | ) | (417 | ) | — | — | |||||||||
Net benefits paid | (69,868 | ) | (67,183 | ) | (15,956 | ) | (18,440 | ) | |||||||
Benefit obligation at end of year | $ | 1,243,852 | $ | 1,191,934 | $ | 98,675 | $ | 112,451 | |||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at beginning of year | 837,322 | 838,551 | — | — | |||||||||||
Actual return on plan assets(2) | 117,188 | 49,986 | — | — | |||||||||||
Employer contribution | 52,386 | 31,147 | 11,580 | 14,268 | |||||||||||
Plan participants' contributions | 570 | 484 | 4,376 | 4,172 | |||||||||||
Plan settlements | (410 | ) | (417 | ) | — | — | |||||||||
Impact of foreign currency changes | 11,518 | (15,246 | ) | — | — | ||||||||||
Net benefits paid | (69,868 | ) | (67,183 | ) | (15,956 | ) | (18,440 | ) | |||||||
Fair value of plan assets at end of year | 948,706 | 837,322 | — | — | |||||||||||
Unfunded status at end of year | $ | (295,146 | ) | $ | (354,612 | ) | $ | (98,675 | ) | $ | (112,451 | ) |
(1) | 2017 and 2016 actuarial losses in the Company's pension benefit plans resulted from changes in discount rate assumptions. Changes in financial markets during 2017 and 2016, including a decrease in corporate bond yield indices, resulted in an increase in benefit obligations. |
(2) | The increase in return on plan assets in 2017 was primarily due to better-than-expected asset performance of U.S. and international equity securities. |
Pension Benefits | Postretirement Benefits | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Unfunded status recognized on the balance sheet: | |||||||||||||||
Prepaid benefit cost | $ | 24,644 | $ | 5,555 | $ | — | $ | — | |||||||
Accrued benefit liability – current portion | (9,316 | ) | (9,142 | ) | (9,427 | ) | (11,485 | ) | |||||||
Accrued benefit liability – long-term portion | (310,474 | ) | (351,025 | ) | (89,248 | ) | (100,966 | ) | |||||||
$ | (295,146 | ) | $ | (354,612 | ) | $ | (98,675 | ) | $ | (112,451 | ) | ||||
Accumulated other comprehensive loss: | |||||||||||||||
Net actuarial loss | $ | (362,602 | ) | $ | (385,942 | ) | $ | (21,878 | ) | $ | (28,665 | ) | |||
Net prior service benefit | 419 | 420 | — | — | |||||||||||
$ | (362,183 | ) | $ | (385,522 | ) | $ | (21,878 | ) | $ | (28,665 | ) |
Pension Benefits | |||||||
2017 | 2016 | ||||||
(Dollars in thousands) | |||||||
Accumulated benefit obligations in excess of plan assets: | |||||||
Aggregate accumulated benefit obligation | $ | 1,091,856 | $ | 1,079,316 | |||
Aggregate fair value of plan assets | 775,859 | 725,830 | |||||
Projected benefit obligations in excess of plan assets: | |||||||
Aggregate projected benefit obligation | $ | 1,131,873 | $ | 1,086,842 | |||
Aggregate fair value of plan assets | 812,082 | 726,675 |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||
Service cost | $ | 9,975 | $ | 8,234 | $ | 8,352 | $ | 172 | $ | 200 | $ | 251 | |||||||||||
Interest cost(1) | 36,853 | 37,819 | 47,179 | 3,148 | 3,223 | 4,588 | |||||||||||||||||
Expected return on plan assets | (48,581 | ) | (48,422 | ) | (50,825 | ) | — | — | |||||||||||||||
Amortization of prior service benefit | (62 | ) | (61 | ) | (61 | ) | — | — | — | ||||||||||||||
Amortization of actuarial loss | 13,489 | 12,036 | 12,578 | 1,271 | 2,967 | 4,511 | |||||||||||||||||
Curtailment (gain) loss | 106 | (140 | ) | 656 | — | — | — | ||||||||||||||||
Special termination benefit | — | — | — | — | — | ||||||||||||||||||
Net settlement loss (gain) | 126 | 49 | (45 | ) | — | — | |||||||||||||||||
Net periodic benefit cost | 11,906 | 9,515 | 17,834 | 4,591 | 6,390 | 9,350 | |||||||||||||||||
Changes in accumulated other comprehensive loss: | |||||||||||||||||||||||
Actuarial loss (gain) | (9,785 | ) | 32,187 | (15,228 | ) | (5,516 | ) | 5,556 | (5,918 | ) | |||||||||||||
Amortization of prior service benefit | 62 | 61 | 61 | — | — | — | |||||||||||||||||
Amortization of actuarial loss | (13,489 | ) | (12,036 | ) | (12,578 | ) | (1,271 | ) | (2,967 | ) | (4,511 | ) | |||||||||||
Curtailment gain (loss) | — | 173 | (656 | ) | — | — | — | ||||||||||||||||
Net settlement (loss) gain | (126 | ) | (49 | ) | 45 | — | — | — | |||||||||||||||
Total recognized in accumulated other comprehensive loss | (23,338 | ) | 20,336 | (28,356 | ) | (6,787 | ) | 2,589 | (10,429 | ) | |||||||||||||
Total recognized in net periodic benefit cost and accumulated other comprehensive loss | $ | (11,432 | ) | $ | 29,851 | $ | (10,522 | ) | $ | (2,196 | ) | $ | 8,979 | $ | (1,079 | ) |
(1) | The decrease in interest cost in 2017 and 2016 compared to 2015 is primarily due to the election made at the end of 2015 to adopt the spot-rate approach to determine the interest cost component of pension and postretirement expense. |
Pension Benefits | Postretirement Benefits | ||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||
Weighted-average assumptions used to determine net periodic benefit cost: | |||||||||||
Discount rate | 3.8% | 4.0% | 3.8% | 3.7% | 3.8% | 3.6% | |||||
Expected long-term rate of return on plan assets | 5.8% | 5.9% | 5.9% | ||||||||
Rate of compensation increase | 3.4% | 3.4% | 3.4% | ||||||||
Weighted-average assumptions used to determine benefit obligations: | |||||||||||
Discount rate | 3.4% | 3.8% | 4.0% | 3.4% | 3.7% | 3.8% | |||||
Rate of compensation increase | 3.4% | 3.4% | 3.4% | ||||||||
Assumed health care cost trend rates were as follows: | |||||||||||
Health care trend rate assumed for next year | 6.3% | 6.4% | 6.4% | ||||||||
Rate trend to which the cost trend is assumed to decline | 4.4% | 4.4% | 4.4% | ||||||||
Year that rate reaches the ultimate trend rate | 2037 | 2038 | 2038 |
Year Ended November 26, 2017 | |||||||||||||||
Asset Class | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
(Dollars in thousands) | |||||||||||||||
Cash and cash equivalents | $ | 1,164 | $ | 1,164 | $ | — | $ | — | |||||||
Equity securities(1) | |||||||||||||||
U.S. large cap | 209,568 | — | 209,568 | — | |||||||||||
U.S. small cap | 42,874 | — | 42,874 | — | |||||||||||
International | 141,924 | — | 141,924 | — | |||||||||||
Fixed income securities(2) | 463,617 | — | 463,617 | — | |||||||||||
Other alternative investments | |||||||||||||||
Real estate(3) | 69,546 | — | 69,546 | — | |||||||||||
Private equity(4) | 764 | — | — | 764 | |||||||||||
Hedge fund(5) | 14,934 | — | 14,934 | — | |||||||||||
Other(6) | 4,315 | — | 4,315 | — | |||||||||||
Total investments at fair value | $ | 948,706 | $ | 1,164 | $ | 946,778 | $ | 764 |
Year Ended November 27, 2016 | |||||||||||||||
Asset Class | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
(Dollars in thousands) | |||||||||||||||
Cash and cash equivalents | $ | 2,676 | $ | 2,676 | $ | — | $ | — | |||||||
Equity securities(1) | |||||||||||||||
U.S. large cap | 190,811 | — | 190,811 | — | |||||||||||
U.S. small cap | 37,434 | — | 37,434 | — | |||||||||||
International | 144,241 | — | 144,241 | — | |||||||||||
Fixed income securities(2) | 395,995 | — | 395,995 | — | |||||||||||
Other alternative investments | |||||||||||||||
Real estate(3) | 53,783 | — | 53,783 | — | |||||||||||
Private equity(4) | 1,344 | — | — | 1,344 | |||||||||||
Hedge fund(5) | 7,337 | — | 7,337 | — | |||||||||||
Other(6) | 3,701 | — | 3,701 | — | |||||||||||
Total investments at fair value | $ | 837,322 | $ | 2,676 | $ | 833,302 | $ | 1,344 |
(1) | Primarily comprised of equity index funds that track various market indices. |
(2) | Predominantly includes bond index funds that invest in long-term U.S. government and investment grade corporate bonds. |
(3) | Primarily comprised of investments in U.S. Real Estate Investment Trusts. |
(4) | Represents holdings in a diversified portfolio of private equity funds and direct investments in companies located primarily in North America. Fair values are determined by investment fund managers using primarily unobservable market data. |
(5) | Primarily invested in a diversified portfolio of equities, bonds, alternatives and cash with a low tolerance for capital loss. |
(6) | Primarily relates to accounts held and managed by a third-party insurance company for employee-participants in Belgium. Fair values are based on accumulated plan contributions plus a contractually-guaranteed return plus a share of any incremental investment fund profits. |
Pension Benefits | Postretirement Benefits | Total | |||||||||
(Dollars in thousands) | |||||||||||
2018 | $ | 68,564 | $ | 11,565 | $ | 80,129 | |||||
2019 | 66,263 | 11,037 | 77,300 | ||||||||
2020 | 66,986 | 10,645 | 77,631 | ||||||||
2021 | 67,966 | 10,187 | 78,153 | ||||||||
2022 | 70,559 | 9,617 | 80,176 | ||||||||
2023-2027 | 353,302 | 38,696 | 391,998 |
Service SARs | Performance-based SARs | ||||||||||||||||||||||||
Units | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | Units | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||
(Units and dollars in thousands) | |||||||||||||||||||||||||
Outstanding at November 27, 2016 | 3,102 | $ | 49.35 | 3.9 | 1,202 | $ | 60.68 | 5.0 | |||||||||||||||||
Granted | 234 | 69.00 | — | — | |||||||||||||||||||||
Exercised | (806 | ) | 38.80 | (56 | ) | 58.75 | |||||||||||||||||||
Forfeited | — | — | — | — | |||||||||||||||||||||
Expired | — | — | — | — | |||||||||||||||||||||
Canceled, performance condition not met | — | — | (67 | ) | 64.76 | ||||||||||||||||||||
Outstanding at November 26, 2017 | 2,530 | $ | 54.52 | 3.5 | 1,079 | $ | 60.52 | 4.1 | |||||||||||||||||
Vested and expected to vest at November 26, 2017 | 2,502 | $ | 54.38 | 3.5 | $ | 75,358 | 1,082 | $ | 60.80 | 4.0 | $ | 25,632 | |||||||||||||
Exercisable at November 26, 2017 | 1,788 | $ | 49.47 | 2.8 | $ | 62,634 | 408 | $ | 49.67 | 2.6 | $ | 14,195 |
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Aggregate intrinsic value of Service SARs exercised during the year | $ | 25,572 | $ | 1,443 | $ | 4,686 | |||||
Aggregate intrinsic value of Performance SARs exercised during the year | $ | 883 | $ | 986 | $ | — |
Service SARs Granted | Performance SARs Granted | ||||||||||||||||||
2017 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Weighted-average grant date fair value | $ | 16.13 | $ | 15.74 | $ | 18.24 | $ | 15.94 | $ | 18.73 | |||||||||
Weighted-average assumptions: | |||||||||||||||||||
Expected life (in years) | 4.9 | 4.8 | 4.7 | 5.0 | 5.0 | ||||||||||||||
Expected volatility | 32.5 | % | 36.4 | % | 31.8 | % | 36.3 | % | 31.8 | % | |||||||||
Risk-free interest rate | 1.9 | % | 1.1 | % | 1.2 | % | 1.1 | % | 1.3 | % | |||||||||
Expected dividend | 2.7 | % | 2.5 | % | 1.6 | % | 2.5 | % | 1.6 | % |
Performance SARs Granted | |||||||
2016 | 2015 | ||||||
Weighted-average grant date fair value | $ | 20.56 | $ | 21.41 | |||
Weighted-average assumptions: | |||||||
Expected life (in years) | 4.8 | 4.8 | |||||
Expected volatility | 36.5 | % | 30.1 | % | |||
Risk-free interest rate | 1.5 | % | 1.6 | % | |||
Expected dividend | 2.6 | % | 1.8 | % |
Service RSUs | Performance RSUs | ||||||||||||||||
Units | Weighted-Average Fair Value | Weighted-Average Remaining Contractual Life (Years) | Units | Weighted-Average Fair Value | Weighted-Average Remaining Contractual Life (Years) | ||||||||||||
(Units in thousands) | |||||||||||||||||
Outstanding at November 27, 2016 | — | $ | — | — | $ | — | |||||||||||
Granted | 55 | 69.00 | 109 | 69.00 | |||||||||||||
Vested | — | — | — | — | |||||||||||||
Forfeited | — | — | — | — | |||||||||||||
Expired | — | — | — | — | |||||||||||||
Outstanding at November 26, 2017 | 55 | $ | 69.00 | 2.4 | 109 | $ | 69.00 | 2.4 |
Performance RSU Granted | |||
2017 | |||
Weighted-average grant date fair value | $ | 82.33 | |
Weighted-average assumptions: | |||
Expected life (in years) | 3.0 | ||
Expected volatility | 33.5 | % | |
Risk-free interest rate | 1.4 | % | |
Expected dividend | 2.7 | % |
Phantom Service RSUs | Phantom Performance RSUs | ||||||||||||||||||||
Units | Weighted-Average Fair Value | Weighted-Average Fair Value At Period End | Units | Weighted-Average Fair Value | Weighted-Average Fair Value At Period End | ||||||||||||||||
Outstanding at November 27, 2016 | 639 | $ | 65.92 | $ | 67.00 | — | $ | — | $ | — | |||||||||||
Granted | 407 | 69.75 | 113 | 69.28 | |||||||||||||||||
Vested | (134 | ) | 64.53 | — | — | ||||||||||||||||
Performance adjustment | 74 | 67.34 | — | — | |||||||||||||||||
Forfeited | (111 | ) | 67.09 | (9 | ) | 69.00 | |||||||||||||||
Outstanding at November 26, 2017 | 875 | $ | 67.88 | $ | 84.50 | 104 | $ | 69.30 | $ | 84.50 | |||||||||||
Expected to vest at November 26, 2017 | 785 | $ | 67.94 | $ | 84.50 | 88 | $ | 69.28 | $ | 84.50 |
(Dollars in thousands) | |||
2018 | $ | 185,160 | |
2019 | 146,726 | ||
2020 | 122,634 | ||
2021 | 98,537 | ||
2022 | 78,540 | ||
Thereafter | 220,460 | ||
Total future minimum lease payments | $ | 852,057 |
Levi Strauss & Co. | Noncontrolling Interest | ||||||||||||||||||||||||||
Pension and Postretirement Benefits | Translation Adjustments | Unrealized Gain (Loss) on Marketable Securities | |||||||||||||||||||||||||
Net Investment Hedges | Foreign Currency Translation | Total | Foreign Currency Translation | Totals | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Accumulated other comprehensive (loss) income at November 30, 2014 | $ | (261,454 | ) | $ | (21,721 | ) | $ | (94,399 | ) | $ | 2,234 | $ | (375,340 | ) | $ | 9,037 | $ | (366,303 | ) | ||||||||
Gross changes | 38,785 | 385 | (28,719 | ) | (575 | ) | 9,876 | (72 | ) | 9,804 | |||||||||||||||||
Tax | (13,671 | ) | 3,089 | (3,241 | ) | 221 | (13,602 | ) | — | (13,602 | ) | ||||||||||||||||
Other comprehensive income (loss), net of tax | 25,114 | 3,474 | (31,960 | ) | (354 | ) | (3,726 | ) | (72 | ) | (3,798 | ) | |||||||||||||||
Accumulated other comprehensive (loss) income at November 29, 2015 | (236,340 | ) | (18,247 | ) | (126,359 | ) | 1,880 | (379,066 | ) | 8,965 | (370,101 | ) | |||||||||||||||
Gross changes | (22,925 | ) | (829 | ) | (30,848 | ) | 143 | (54,459 | ) | 468 | (53,991 | ) | |||||||||||||||
Tax | 7,238 | 319 | (1,291 | ) | (55 | ) | 6,211 | — | 6,211 | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | (15,687 | ) | (510 | ) | (32,139 | ) | 88 | (48,248 | ) | 468 | (47,780 | ) | |||||||||||||||
Accumulated other comprehensive (loss) income at November 27, 2016 | (252,027 | ) | (18,757 | ) | (158,498 | ) | 1,968 | (427,314 | ) | 9,433 | (417,881 | ) | |||||||||||||||
Gross changes | 30,125 | (59,945 | ) | 40,151 | 3,379 | 13,710 | 105 | 13,815 | |||||||||||||||||||
Tax | (10,279 | ) | 23,084 | (2,283 | ) | (1,299 | ) | 9,223 | — | 9,223 | |||||||||||||||||
Other comprehensive (loss) income, net of tax | 19,846 | (36,861 | ) | 37,868 | 2,080 | 22,933 | 105 | 23,038 | |||||||||||||||||||
Accumulated other comprehensive (loss) income at November 26, 2017 | $ | (232,181 | ) | $ | (55,618 | ) | $ | (120,630 | ) | $ | 4,048 | $ | (404,381 | ) | $ | 9,538 | $ | (394,843 | ) |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Foreign exchange management gains (losses)(1) | $ | (41,167 | ) | $ | 15,860 | $ | 34,106 | ||||
Foreign currency transaction (losses) gains(2) | 7,853 | (7,166 | ) | (64,161 | ) | ||||||
Interest income | 3,380 | 1,376 | 1,253 | ||||||||
Investment income | 629 | 976 | 697 | ||||||||
Other(3) | 2,313 | 7,177 | 2,672 | ||||||||
Total other income (expense), net | $ | (26,992 | ) | $ | 18,223 | $ | (25,433 | ) |
(1) | Gains and losses on forward foreign exchange contracts primarily result from currency fluctuations relative to negotiated contract rates. Losses in 2017 were primarily due to unfavorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso, the Euro and the British Pound. Gains in 2016 and 2015 were primarily due to favorable currency fluctuations relative to negotiated contract rates on positions to sell the Mexican Peso. |
(2) | Foreign currency transaction gains and losses reflect the impact of foreign currency fluctuation on the Company's foreign currency denominated balances. Gains in 2017 were primarily due to the strengthening of the Mexican Peso and Euro against the US dollar. Losses in 2016 and 2015 were primarily due to the weakening of various currencies against the U.S. Dollar. |
(3) | Income in 2016 principally relates to business insurance recoveries. |
Year Ended | |||||||||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Income tax expense at U.S. federal statutory rate | $ | 122,073 | 35.0 | % | $ | 142,541 | 35.0 | % | $ | 108,639 | 35.0 | % | |||||
State income taxes, net of U.S. federal impact | 7,598 | 2.2 | % | 6,943 | 1.7 | % | 8,938 | 2.9 | % | ||||||||
Change in valuation allowance | (9,624 | ) | (2.8 | )% | — | — | — | — | |||||||||
Impact of foreign operations | (50,650 | ) | (14.5 | )% | (28,727 | ) | (7.1 | )% | (7,286 | ) | (2.3 | )% | |||||
Reassessment of tax liabilities | (5,553 | ) | (1.6 | )% | (2,387 | ) | (0.6 | )% | (7,577 | ) | (2.4 | )% | |||||
Deduction related to subsidiaries | — | — | (6,788 | ) | (1.7 | )% | (8,060 | ) | (2.6 | )% | |||||||
Other, including non-deductible expenses | 381 | 0.1 | % | 4,469 | 1.2 | % | 5,853 | 1.8 | % | ||||||||
Total | $ | 64,225 | 18.4 | % | $ | 116,051 | 28.5 | % | $ | 100,507 | 32.4 | % |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Domestic | $ | 67,407 | $ | 189,478 | $ | 194,540 | |||||
Foreign | 281,374 | 217,782 | 115,858 | ||||||||
Total income before income taxes | $ | 348,781 | $ | 407,260 | $ | 310,398 |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
U.S. Federal | |||||||||||
Current | $ | 7,936 | $ | 7,122 | $ | 3,299 | |||||
Deferred | 1,240 | 66,840 | 56,155 | ||||||||
$ | 9,176 | $ | 73,962 | $ | 59,454 | ||||||
U.S. State | |||||||||||
Current | $ | 3,441 | $ | 2,097 | $ | 1,334 | |||||
Deferred | 4,157 | 4,846 | 7,604 | ||||||||
$ | 7,598 | $ | 6,943 | $ | 8,938 | ||||||
Foreign | |||||||||||
Current | $ | 53,334 | $ | 40,754 | $ | 37,488 | |||||
Deferred | (5,883 | ) | (5,608 | ) | (5,373 | ) | |||||
$ | 47,451 | $ | 35,146 | $ | 32,115 | ||||||
Consolidated | |||||||||||
Current | $ | 64,711 | $ | 49,973 | $ | 42,121 | |||||
Deferred | (486 | ) | 66,078 | 58,386 | |||||||
Total income tax expense | $ | 64,225 | $ | 116,051 | $ | 100,507 |
November 26, 2017 | November 27, 2016 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets | |||||||
Foreign tax credit carryforwards | $ | 123,593 | $ | 92,845 | |||
State net operating loss carryforwards | 8,302 | 8,721 | |||||
Foreign net operating loss carryforwards | 59,157 | 85,095 | |||||
Employee compensation and benefit plans | 214,798 | 247,235 | |||||
Advance royalties | 46,757 | 58,633 | |||||
Accrued liabilities | 29,169 | 28,680 | |||||
Sales returns and allowances | 39,030 | 29,338 | |||||
Inventory | 19,553 | 14,272 | |||||
Property, plant and equipment | 8,826 | 6,971 | |||||
Unrealized foreign exchange gains or losses | 23,058 | — | |||||
Other | 1,069 | 14,472 | |||||
Total gross deferred tax assets | 573,312 | 586,262 | |||||
Less: Valuation allowance | (38,692 | ) | (68,212 | ) | |||
Deferred tax assets, net of valuation allowance | 534,620 | 518,050 | |||||
Total net deferred tax assets | $ | 534,620 | $ | 518,050 |
Valuation Allowance at November 27, 2016 | Changes in Related Gross Deferred Tax Asset | Change / (Release) | Valuation Allowance at November 26, 2017 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S. state net operating loss carryforwards | $ | 1,720 | $ | (200 | ) | $ | — | $ | 1,520 | ||||||
Foreign net operating loss carryforwards and other foreign deferred tax assets | 66,492 | (10,019 | ) | (19,301 | ) | 37,172 | |||||||||
$ | 68,212 | $ | (10,219 | ) | $ | (19,301 | ) | $ | 38,692 |
November 26, 2017 | November 27, 2016 | ||||||
(Dollars in thousands) | |||||||
Unrecognized tax benefits beginning balance | $ | 29,053 | $ | 32,704 | |||
Increases related to current year tax positions | 4,779 | 1,970 | |||||
Increases related to tax positions from prior years | 5,625 | 45 | |||||
Decreases related to tax positions from prior years | (4,050 | ) | (584 | ) | |||
Settlement with tax authorities | — | — | |||||
Lapses of statutes of limitation | (1,956 | ) | (4,266 | ) | |||
Other, including foreign currency translation | 335 | (816 | ) | ||||
Unrecognized tax benefits ending balance | $ | 33,786 | $ | 29,053 |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net revenues: | |||||||||||
Americas | $ | 2,774,050 | $ | 2,683,008 | $ | 2,726,461 | |||||
Europe | 1,312,276 | 1,091,362 | 1,016,418 | ||||||||
Asia | 817,704 | 778,369 | 751,614 | ||||||||
Total net revenues | $ | 4,904,030 | $ | 4,552,739 | $ | 4,494,493 | |||||
Operating income: | |||||||||||
Americas (1) | $ | 529,310 | $ | 507,802 | $ | 551,022 | |||||
Europe (2) | 198,662 | 154,829 | 144,432 | ||||||||
Asia | 78,257 | 80,862 | 99,497 | ||||||||
Regional operating income | 806,229 | 743,493 | 794,951 | ||||||||
Corporate: | |||||||||||
Restructuring, net | — | 313 | 14,071 | ||||||||
Restructuring-related charges | — | 7,195 | 30,736 | ||||||||
Other corporate staff costs and expenses (3) | 339,060 | 273,778 | 319,097 | ||||||||
Corporate expenses | 339,060 | 281,286 | 363,904 | ||||||||
Total operating income | 467,169 | 462,207 | 431,047 | ||||||||
Interest expense | (68,603 | ) | (73,170 | ) | (81,214 | ) | |||||
Loss on early extinguishment of debt | (22,793 | ) | — | (14,002 | ) | ||||||
Other income (expense), net | (26,992 | ) | 18,223 | (25,433 | ) | ||||||
Income before income taxes | $ | 348,781 | $ | 407,260 | $ | 310,398 |
(1) | Included in Americas' operating income for the year ended November 27, 2016 is the recognition of approximately $7.0 million benefit from resolution of a vendor dispute and related reversal of liabilities recorded in a prior period. |
(2) | Included in Europe's operating income for the year ended November 27, 2016 is a gain of $6.1 million related to the sale-leaseback of the Company's distribution center in the United Kingdom in the second quarter of 2016. Included in Europe's operating income for the year ended November 29, 2015 is a gain of $7.5 million related to the sale of the Company's finishing and distribution facility in Turkey in the second quarter of 2015. |
(3) | Included in Corporate expenses for the year ended November 26, 2017 is the recognition of approximately $8.3 million of stock-based compensation expense related to prior periods, for the correction of the periods used for the recognition of expense associated with employees eligible to vest awards after retirement. |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Depreciation and amortization expense: | |||||||||||
Americas | $ | 37,802 | $ | 30,322 | $ | 27,558 | |||||
Europe | 17,479 | 12,574 | 14,985 | ||||||||
Asia | 9,836 | 8,210 | 7,455 | ||||||||
Corporate | 52,270 | 52,772 | 52,046 | ||||||||
Total depreciation and amortization expense | $ | 117,387 | $ | 103,878 | $ | 102,044 |
November 26, 2017 | |||||||||||||||||||
Americas | Europe | Asia | Unallocated | Consolidated Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Trade receivables, net | $ | 322,712 | $ | 99,807 | $ | 52,029 | $ | 10,937 | $ | 485,485 | |||||||||
Inventories | 402,151 | 162,391 | 118,852 | 76,002 | 759,396 | ||||||||||||||
All other assets | — | — | — | 2,109,811 | 2,109,811 | ||||||||||||||
Total assets | $ | 3,354,692 |
November 27, 2016 | |||||||||||||||||||
Americas | Europe | Asia | Unallocated | Consolidated Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Trade receivables, net | $ | 326,211 | $ | 94,106 | $ | 46,510 | $ | 12,191 | $ | 479,018 | |||||||||
Inventories | 391,713 | 125,029 | 121,544 | 77,895 | 716,181 | ||||||||||||||
All other assets | — | — | — | 1,791,897 | 1,791,897 | ||||||||||||||
Total assets | $ | 2,987,096 |
Year Ended | |||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net revenues: | |||||||||||
United States | $ | 2,347,860 | $ | 2,302,668 | $ | 2,380,820 | |||||
Foreign countries | 2,556,170 | 2,250,071 | 2,113,673 | ||||||||
Total net revenues | $ | 4,904,030 | $ | 4,552,739 | $ | 4,494,493 | |||||
Net deferred tax assets: | |||||||||||
United States | $ | 450,270 | $ | 444,295 | $ | 506,675 | |||||
Foreign countries | 87,653 | 78,806 | 73,965 | ||||||||
Total net deferred tax assets | $ | 537,923 | $ | 523,101 | $ | 580,640 | |||||
Long-lived assets: | |||||||||||
United States | $ | 312,656 | $ | 311,358 | $ | 322,758 | |||||
Foreign countries | 141,660 | 108,332 | 89,062 | ||||||||
Total long-lived assets | $ | 454,316 | $ | 419,690 | $ | 411,820 |
Year Ended November 26, 2017 | First Quarter | Second Quarter | Third Quarter(1) | Fourth Quarter | |||||||||||
(Dollars in thousands) | |||||||||||||||
Net revenues | $ | 1,101,991 | $ | 1,067,855 | $ | 1,268,391 | $ | 1,465,793 | |||||||
Cost of goods sold | 537,438 | 509,463 | 611,762 | 682,638 | |||||||||||
Gross profit | 564,553 | 558,392 | 656,629 | 783,155 | |||||||||||
Selling, general and administrative expenses | 456,213 | 495,741 | 510,309 | 633,297 | |||||||||||
Operating income | 108,340 | 62,651 | 146,320 | 149,858 | |||||||||||
Interest expense | (19,934 | ) | (17,895 | ) | (14,476 | ) | (16,298 | ) | |||||||
Loss on early extinguishment of debt | — | (22,793 | ) | — | — | ||||||||||
Other income (expense), net | 408 | (18,087 | ) | (14,734 | ) | 5,421 | |||||||||
Income before income taxes | 88,814 | 3,876 | 117,110 | 138,981 | |||||||||||
Income tax expense (benefit) | 28,693 | (13,847 | ) | 27,631 | 21,748 | ||||||||||
Net income | 60,121 | 17,723 | 89,479 | 117,233 | |||||||||||
Net loss (income) attributable to noncontrolling interest | 22 | (207 | ) | (1,487 | ) | (1,481 | ) | ||||||||
Net income attributable to Levi Strauss & Co. | $ | 60,143 | $ | 17,516 | $ | 87,992 | $ | 115,752 |
(1) | The third quarter of 2017 includes an out-of-period adjustment which increased selling, general and administrative expenses by approximately $9.5 million and decreased net income by approximately $5.8 million. This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest awards after retirement. |
Year Ended November 27, 2016 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
(Dollars in thousands) | |||||||||||||||
Net revenues | $ | 1,056,500 | $ | 1,011,587 | $ | 1,185,111 | $ | 1,299,541 | |||||||
Cost of goods sold | 496,902 | 494,389 | 592,305 | 640,131 | |||||||||||
Gross profit | 559,598 | 517,198 | 592,806 | 659,410 | |||||||||||
Selling, general and administrative expenses | 441,163 | 459,351 | 448,525 | 517,454 | |||||||||||
Restructuring, net | 1,848 | (191 | ) | (627 | ) | (718 | ) | ||||||||
Operating income | 116,587 | 58,038 | 144,908 | 142,674 | |||||||||||
Interest expense | (14,902 | ) | (20,411 | ) | (19,170 | ) | (18,687 | ) | |||||||
Other (expense) income, net | (2,219 | ) | 4,295 | 4,679 | 11,468 | ||||||||||
Income before income taxes | 99,466 | 41,922 | 130,417 | 135,455 | |||||||||||
Income tax expense | 33,175 | 10,862 | 32,713 | 39,301 | |||||||||||
Net income | 66,291 | 31,060 | 97,704 | 96,154 | |||||||||||
Net loss (income) attributable to noncontrolling interest | (455 | ) | (335 | ) | 614 | 19 | |||||||||
Net income attributable to Levi Strauss & Co. | $ | 65,836 | $ | 30,725 | $ | 98,318 | $ | 96,173 |
Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
Item 9A. | CONTROLS AND PROCEDURES |
Item 9B. | OTHER INFORMATION |
Item 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
Name | Age | Position | ||
Stephen C. Neal(1) | 68 | Chairman of the Board of Directors | ||
Charles V. Bergh | 60 | Director, President and Chief Executive Officer | ||
Troy Alstead(2)(4) | 54 | Director | ||
Jill Beraud(3)(4) | 57 | Director | ||
Robert A. Eckert(1)(2) | 63 | Director | ||
Spencer C. Fleischer(3)(4) | 64 | Director | ||
Mimi L. Haas | 71 | Director | ||
Peter E. Haas Jr.(1)(2)(5) | 70 | Director | ||
Christopher J. McCormick(3)(4) | 62 | Director | ||
Jenny Ming(4) | 62 | Director | ||
Patricia Salas Pineda(1)(2) | 66 | Director | ||
Carrie Ask | 48 | Executive Vice President and President, Global Retail | ||
Roy Bagattini | 54 | Executive Vice President and President, Levi Strauss Americas | ||
James Curleigh | 52 | Executive Vice President and President, Global Brands | ||
Seth M. Ellison | 59 | Executive Vice President and President, Europe | ||
Seth R. Jaffe | 60 | Executive Vice President and General Counsel | ||
David Love | 55 | Executive Vice President and President, Asia, Middle East and Africa | ||
Kelly McGinnis | 49 | Senior Vice President, Corporate Affairs and Chief Communications Officer | ||
Elizabeth O'Neill | 46 | Senior Vice President and Chief Supply Chain Officer | ||
Marc Rosen | 49 | Executive Vice President and President, Global eCommerce | ||
Harmit Singh | 54 | Executive Vice President and Chief Financial Officer | ||
Elizabeth Wood | 56 | Senior Vice President and Chief Human Resources Officer |
(1) | Member, Nominating, Governance and Corporate Citizenship Committee. |
(2) | Member, Human Resources Committee. |
(3) | Member, Finance Committee. |
(4) | Member, Audit Committee. |
(5) | Peter E. Haas Jr. is a descendant of the family of our founder, Levi Strauss. |
• | Audit. Our Audit Committee provides assistance to the board in the board's oversight of the integrity of our financial statements, financial reporting processes, internal controls systems and compliance with legal requirements. The committee meets with our management regularly to discuss our critical accounting policies, internal controls and financial reporting process and our financial reports to the public. The committee also meets with our independent registered public accounting firm and with our financial personnel and internal auditors regarding these matters. The committee also examines the independence and performance of our internal auditors and our independent registered public accounting firm. The committee has sole and direct authority to engage, appoint, evaluate and replace our independent auditor. Both our independent registered public accounting firm and our internal auditors regularly meet privately with this committee and have unrestricted access to the committee. The Audit Committee held eight meetings during 2017. |
• | Finance. Our Finance Committee provides assistance to the board in the board's oversight of our financial condition and management, financing strategies and execution and relationships with stockholders, creditors and other members of the financial community. The Finance Committee held five meetings in 2017 and otherwise acted by unanimous written consent. |
• | Human Resources. Our Human Resources Committee provides assistance to the board in the board's oversight of our compensation, benefits and human resources programs and of senior management performance, composition and compensation. The committee reviews our compensation objectives and performance against those objectives, reviews market conditions and practices and our strategy and processes for making compensation decisions and approves (or, in the case of our chief executive officer, recommends to the Board) the annual and long term compensation for our executive officers, including our long term incentive compensation plans. The committee also reviews our succession planning, diversity and benefit plans. The Human Resources Committee held three meetings in 2017. |
• | Nominating, Governance and Corporate Citizenship. Our Nominating, Governance and Corporate Citizenship Committee is responsible for identifying qualified candidates for our board of directors and making recommendations regarding the size and composition of the board. In addition, the committee is responsible for overseeing our corporate governance matters, reporting and making recommendations to the board concerning corporate governance matters, reviewing the performance of our chairman and chief executive officer and determining director compensation. The committee also assists the board with oversight and review of corporate citizenship and sustainability matters which may have a significant impact on the Company. The Nominating, Governance and Corporate Citizenship Committee held five meetings in 2017. |
• | accounting practices and financial communications; |
• | conflicts of interest; |
• | confidentiality; |
• | corporate opportunities; |
• | insider trading; and |
• | compliance with laws. |
Item 11. | EXECUTIVE COMPENSATION |
• | Charles V. Bergh, President and Chief Executive Officer ("CEO") |
• | Harmit Singh, Executive Vice President and Chief Financial Officer ("CFO") |
• | Roy Bagattini, Executive Vice President and President, Americas |
• | Seth Ellison, Executive Vice President and President, Europe |
• | David Love, Executive Vice President and President, AMA |
• | Motivate, retain, and attract high performing talent in an extremely competitive marketplace |
◦ | Our ability to achieve our strategic business plans and compete effectively in the marketplace is based on our ability to motivate, retain, and attract exceptional leadership talent in a highly competitive talent market. |
• | Deliver competitive compensation for achievement of annual and long-term results |
◦ | We provide competitive total compensation opportunities that are intended to motivate, retain, and attract a highly capable and results-driven executive team, with the majority of compensation based on the achievements of long-term performance results. |
• | Align the interests of our executives with those of our stockholders |
◦ | Our programs offer compensation incentives that are intended to motivate executives to enhance total stockholder return. These programs align certain elements of compensation with our achievement of corporate growth objectives (including defined financial targets and increases in stockholder value) as well as individual performance. |
Company Name | |
Abercrombie & Fitch Co.* | Hanesbrands Inc.* |
American Eagle Outfitters, Inc. * | J. C. Penney Company, Inc. |
Ascena Retail Group, Inc.* | L Brands, Inc.* |
Burberry Group Plc | Lululemon Athletica, Inc.* |
Carter's, Inc.* | Mattel, Inc. |
The Clorox Company | NIKE, Inc.* |
Coach, Inc.* | Nordstrom, Inc. |
Columbia Sportswear Company * | PVH Corp.* |
Dillard's, Inc. | Ralph Lauren Corporation* |
Foot Locker, Inc. | Under Armour, Inc.* |
G-III Apparel Group, Inc.* | VF Corporation* |
The Gap, Inc.* | Williams-Sonoma, Inc. |
Guess? Inc.* | Wolverine World Wide, Inc.* |
Company Name | |
Adidas AG | Kate Spade & Company |
Esprit Holdings Limited | Michael Kors |
Express Inc. | New York & Co. |
Fast Retailing | Oxford Industries Inc. |
Fossil Group Inc. | Perry Ellis, International Inc. |
Hennes & Mauritz | Quiksilver Inc. |
Hugo Boss AG | The Buckle, Inc. |
Inditex | Urban Outfitters Inc. |
• | Base Salary; |
• | Annual Incentive Plan Awards; and |
• | Long-Term Incentive Awards. |
Name | Base Salary as of November 26, 2017(1) | Base Salary as of November 27, 2016 | ||||||||
Charles V. Bergh | $ | 1,390,000 | $ | 1,350,000 | ||||||
Harmit Singh | 773,000 | 750,000 | ||||||||
Roy Bagattini | 773,000 | 750,000 | ||||||||
Seth Ellison | 686,000 | 615,000 | ||||||||
David Love | 700,000 | 675,000 |
(1) | The base salary for each of Messrs. Bergh, Singh, Bagattini, and Love were increased in February 2017 as part of the annual performance review by approximately the percentage increase generally applicable for all U.S. employees. The base salary increase for Mr. Ellison was to position him appropriately relative to the other executives of the Company. |
• | In the case of Messrs. Bergh and Singh, 75% of their total AIP opportunity was based on the financial performance of the Company as a whole. For Messrs. Bagattini, Ellison and Love, a combination of Company (weighted 25%) and their respective business unit performance (weighted 50%) was used to calculate their actual financial performance achievement. Company and business unit financial performance is based 50% on earnings before interest and taxes ("EBIT"), 25% on days in sales inventory and 25% on net revenues. Performance measures are described in more detail below under "Performance measures." |
• | 25% of each executive's total opportunity was based on individual objectives, to recognize achievement of other organizational goals. |
Name | 2017 Target AIP Participation Rate as a Percentage of Base Salary | Potential AIP Payout Range as a Percentage of Base Salary | ||||
Charles V. Bergh | 160% | 0 – 320% | ||||
Harmit Singh | 100% | 0 – 200% | ||||
Roy Bagattini | 80% | 0 – 160% | ||||
Seth Ellison | 80% | 0 – 160% | ||||
David Love | 80% | 0 – 160% |
• | EBIT, a non-GAAP measure that is determined by excluding from operating income, as determined under GAAP, the following: restructuring expense, net curtailment gains and losses from our postretirement medical plan in the United States and pension plans worldwide, and certain management-defined unusual or non-recurring items; |
• | Days Sales in Inventory ("DSI"), a non-GAAP measure defined as the average inventory balance for the year divided by the average cost of goods sold per day; and |
• | Net revenues, a GAAP measure defined as gross product sales minus returns, discounts and allowances, plus licensing revenue. |
EBIT Goal | Days Sales in Inventory | Net Revenues Goal | Actual Percentage Achieved After Adjustments* | ||||||
(Dollars in millions) | |||||||||
Total Company | $466.6 | 119 | $4,662.4 | 121% |
Name | Base Salary | AIP Target | Actual Percentage Achieved: Total Company | Actual Percentage Achieved: Business Unit | Actual Percentage Achieved: Individual Performance | Actual Bonus(1) | ||||||||||
Charles V. Bergh | $ | 1,390,000 | 160% | 121% | N/A | 130% | $ | 2,741,080 | ||||||||
Harmit Singh | 773,000 | 100% | 121% | N/A | 120% | 933,398 | ||||||||||
Roy Bagattini | 773,000 | 80% | 121% | 101% | 120% | 684,878 | ||||||||||
Seth Ellison | 686,000 | 80% | 121% | 196% | 200% | 978,236 | ||||||||||
David Love | 700,000 | 80% | 121% | 100% | 100% | 589,400 |
(1) | Except for Messrs. Bergh and Singh for whom Total Company performance is weighted 75%, Total Company performance is weighted 25% and Business Unit performance is weighted 50%. For all executives, Individual Performance is weighted 25%. |
• | Performance-based RSUs give the executive the right (subject to HR Committee discretion to reduce but not increase awards beyond the maximum opportunity) to vest in a number of RSUs based on achievement against performance goals over a three-year performance period. Actual shares that will vest, if any, will vary based on achievement of the performance goals at the end of the three years. The three-year performance period was designed to discourage short-term risk taking and reinforce the link between the interests of our stockholders and our executives over the long-term. |
• | 50% of the number of actual PRSUs that vest at the end of three years is based on the following two internal performance metrics: 1) the Company's average margin of net earnings over the three-year period adjusted for certain items such as interest and taxes, and 2) the target compound annual growth rate (“CAGR”) in the Company's net revenues over the three-year period covering fiscal 2017 through fiscal 2019. The potential payout range as a percentage of this portion of the target award is 0% to 200%. |
• | The remaining 50% of the number of actual PRSUs that vest is based on the Company’s total shareholder return (“TSR”) over the three-year period covering fiscal 2017 through fiscal 2019 relative to the expanded peer group approved by the HR Committee in February 2017 as listed above under "Competitive peer group". Using interpolation, TSR performance in the top, middle and bottom third of the peer group yields a payout of 125% to 200%, 50% to 125%, and 0%, respectively. |
• | If earned at target, 100% of the PRSUs vest at the end of the three-year performance period. |
Average Margin of Net Earnings Goal | CAGR of Net Revenues Goal | Actual Percentage Achieved After Adjustment | |||
Total Company | 11.9% | 1.0% | 111% |
Name | Target Performance-based SARs | Actual Percentage Achieved After Adjustment | Vested Performance-based SARs | |||||||
Charles V. Bergh | 125,786 | 111% | 139,622 | |||||||
Harmit Singh | 30,362 | 111% | 33,701 | |||||||
Roy Bagattini | 15,181 | 111% | 16,850 | |||||||
Seth Ellison | 15,181 | 111% | 16,850 | |||||||
David Love | 12,470 | 111% | 13,841 |
Name and Principal Position(1) | Year | Salary | Bonus(2) | Option Awards(3) | Stock Awards(4) | Non-Equity Incentive Plan Compensation(5) | Change in Pension Value and Non-qualified Deferred Compensation Earnings(6) | All Other Compensation(7) | Total | ||||||||||||||||
Charles V. Bergh | |||||||||||||||||||||||||
President and Chief Executive Officer | 2017 | $ | 1,382,769 | $ | — | $ | 1,624,985 | $ | 4,993,851 | $ | 2,741,080 | $ | — | $ | 340,653 | $ | 11,083,338 | ||||||||
2016 | 1,343,077 | — | 6,872,672 | — | 2,400,000 | — | 341,996 | 10,956,745 | |||||||||||||||||
2015 | 1,304,808 | — | 5,967,288 | — | 2,426,775 | — | 321,275 | 10,020,146 | |||||||||||||||||
Harmit Singh | |||||||||||||||||||||||||
Executive Vice President and Chief Financial Officer | 2017 | $ | 768,842 | $ | — | $ | 349,989 | $ | 1,075,518 | $ | 933,398 | $ | — | $ | 146,403 | $ | 3,274,150 | ||||||||
2016 | 746,538 | — | 1,482,519 | — | 832,500 | — | 152,649 | 3,214,206 | |||||||||||||||||
2015 | 724,808 | — | 1,440,373 | — | 901,550 | — | 128,360 | 3,195,091 | |||||||||||||||||
Roy Bagattini | |||||||||||||||||||||||||
Executive Vice President and President, Americas | 2017 | $ | 768,842 | $ | — | $ | 237,498 | $ | 729,876 | $ | 684,878 | $ | — | $ | 1,269,116 | $ | 3,690,210 | ||||||||
2016 | 690,433 | 1,000,000 | 2,615,134 | 504,000 | — | 1,451,783 | 6,261,350 | ||||||||||||||||||
2015 | 619,394 | — | 720,178 | 722,844 | — | 442,073 | 2,504,489 | ||||||||||||||||||
Seth Ellison | |||||||||||||||||||||||||
Executive Vice President and President, Europe | 2017 | $ | 673,166 | $ | — | $ | 237,498 | $ | 729,876 | $ | 978,236 | $ | 381,742 | $ | 3,000,518 | ||||||||||
2016 | 609,808 | — | 767,741 | 792,120 | — | 472,432 | 2,642,101 | ||||||||||||||||||
David Love | |||||||||||||||||||||||||
Executive Vice President and President, Asia Pacific | 2017 | $ | 700,289 | $ | — | $ | 237,498 | $ | 729,876 | $ | 589,400 | $ | — | $ | 515,393 | $ | 2,772,456 |
(1) | Prior to June 1, 2016, Mr. Bagattini was paid in Singapore Dollars (SGD). For presentation purposes of his compensation for 2016 and 2015, the average exchange rates of the last month of fiscal years 2016 and 2015 were used to convert Mr. Bagattini's compensation paid in SGD into U.S. Dollars. |
(2) | Mr. Bagattini received a one-time relocation bonus of $1,000,000 in June 2016. |
(3) | These amounts reflect the aggregate grant date fair value for awards of SARs, including prior awards of performance-based SARs, granted to the recipient under the Company's 2016 Equity Incentive Plan, computed in accordance with FASB ASC 718. These amounts reflect the grant date fair value, and do not represent the actual value that may be realized by the executives. For a description of the assumptions used to determine the compensation cost of our awards, see Note 1 and Note 11 to our audited consolidated financial statements included in this report. |
(4) | These amounts in this column reflects the aggregate grant date fair value for RSU and PRSU awards. For 2017, this column also includes the grant date fair value of the target number of PRSUs that may be earned for the three-year performance period beginning with fiscal 2017. If maximum performance conditions are achieved over the entire three-year period, the grant date fair values for performance-based RSUs granted in fiscal 2017 would be $4,993,884 for Mr. Bergh, $1,075,518 for Mr. Singh, $729,876 for Mr. Bagattini, $729,876 for Mr. Ellison and $729,876 for Mr. Love. For a description of the assumptions used to determine the compensation cost of our awards, see Note 1 and Note 11 of our audited consolidated financial statements included in this report. |
(5) | The amounts in this column reflect the non-equity amounts earned by the executives under the Company’s annual incentive plan ("AIP"). |
(6) | No above-market or preferential interest rate options are available under our deferred compensation programs. Please refer to the Non-Qualified Deferred Compensation table for additional information on deferred compensation earnings. |
(7) | The amounts shown in the All Other Compensation column for fiscal 2017 are detailed in the table below: |
Name | Executive Perquisites (a) | Relocation (b) | 401(k) Plan Match (c) | Deferred Compensation Match (d) | Tax Payments (e) | Charitable Match (f) | Total | |||||||||||||||||||||||
Charles V. Bergh | $ | 43,169 | $ | — | $ | 20,000 | $ | 268,708 | $ | 901 | $ | 7,875 | $ | 340,653 | ||||||||||||||||
Harmit Singh | 20,277 | — | 20,000 | 105,101 | 1,025 | — | 146,403 | |||||||||||||||||||||||
Roy Bagattini | 23,752 | 12,449 | 19,286 | 76,178 | 1,137,451 | — | 1,269,116 | |||||||||||||||||||||||
Seth Ellison | 15,000 | 112,270 | 18,500 | 96,042 | 139,930 | — | 381,742 | |||||||||||||||||||||||
David Love | 103,938 | 263,442 | 20,000 | 78,491 | 42,422 | 7,100 | 515,393 |
(a) | For Mr. Bergh, this amount reflects a payment for home security services, parking, a health club membership subsidy, event tickets, an allowance intended to cover legal, financial and/or other incidental business related expenses, and a car allowance. |
(b) | For Mr. Bagattini, this amount reflects costs in connection with his relocation to San Francisco. |
(c) | These amounts reflect Company matching contributions under the Company’s 401(k) Plan. |
(d) | These amounts reflect Company matching contributions under the Company’s Deferred Compensation Plan. |
(e) | For Mr. Bergh and Mr. Singh, these amounts reflect tax reimbursements in connection with annual physicals under our Executive Medical Exam benefit. |
(f) | These amounts reflect Company matching under the Company’s Matching Gift Program, available to all employees. |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | All Other Stock Awards: Number of Shares of Stock or Units(3) (#) | All Other Option Awards: Number of Securities Underlying Options(4) (#) | Exercise or Base Price of Option Awards(5) ($) | Grant Date Fair Value of Stock and Option Award (6) ($) | ||||||||||||||||||||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||||||||||||||
Charles V. Bergh | N/A | $ | 2,224,000 | $ | 4,448,000 | ||||||||||||||||||||||||||||
2/1/2017 | — | 47,101 | 94,202 | $ | 3,466,398 | ||||||||||||||||||||||||||||
2/1/2017 | 100,743 | $ | 69.00 | 1,624,985 | |||||||||||||||||||||||||||||
2/1/2017 | 23,550 | 1,527,453 | |||||||||||||||||||||||||||||||
Harmit Singh | N/A | 773,000 | 1,546,000 | ||||||||||||||||||||||||||||||
2/1/2017 | — | 10,144 | 20,288 | 746,548 | |||||||||||||||||||||||||||||
2/1/2017 | 21,698 | 69.00 | 349,989 | ||||||||||||||||||||||||||||||
2/1/2017 | 5,072 | 328,970 | |||||||||||||||||||||||||||||||
Roy Bagattini | N/A | 618,400 | 1,236,800 | ||||||||||||||||||||||||||||||
2/1/2017 | — | 6,884 | 13,768 | 506,628 | |||||||||||||||||||||||||||||
2/1/2017 | 14,724 | 69.00 | 237,498 | ||||||||||||||||||||||||||||||
2/1/2017 | 3,442 | 223,248 | |||||||||||||||||||||||||||||||
Seth Ellison | N/A | 548,800 | 1,097,600 | ||||||||||||||||||||||||||||||
2/1/2017 | — | 6,884 | 13,768 | 506,628 | |||||||||||||||||||||||||||||
2/1/2017 | 14,724 | 69.00 | 237,498 | ||||||||||||||||||||||||||||||
2/1/2017 | 3,442 | 223,248 | |||||||||||||||||||||||||||||||
David Love | N/A | 560,000 | 1,120,000 | ||||||||||||||||||||||||||||||
2/1/2017 | — | 6,884 | 13,786 | 506,628 | |||||||||||||||||||||||||||||
2/1/2017 | 14,724 | 69.00 | 237,498 | ||||||||||||||||||||||||||||||
2/1/2017 | 3,442 | 223,248 |
(1) | The amounts shown in these columns reflect the estimated potential payment levels for the fiscal 2017 performance period under the Company’s annual incentive plan (the "AIP"), further described under "Compensation Discussion and Analysis for Named Executive Officers." The potential payouts were performance-based and, therefore, were completely at risk. The potential target and maximum payment amounts assume achievement of 100% and 200%, respectively, of the individual objectives of the AIP. Each executive received a bonus under the AIP, which is reported in the Summary Compensation Table under the column entitled "Non-Equity Incentive Plan Compensation." |
(2) | For each executive, the amounts shown in these columns reflect, in shares, the target and maximum amounts for performance-based RSUs subject to a three-year performance period beginning in fiscal 2017 that is further described under "Compensation Discussion and Analysis for Named Executive Officers." The potential awards are performance-based and, therefore, completely at risk. |
(3) | Reflects service-based RSUs granted in 2017 under the 2016 Equity Incentive Plan. Please see footnotes in the table entitled "Outstanding Equity Awards at 2017 Fiscal Year-End" for details concerning the RSUs' vesting schedule. |
(4) | Reflects service-based SARs granted in 2017 under the 2016 Equity Incentive Plan. Please see footnotes in the table entitled "Outstanding Equity Awards at 2017 Fiscal Year-End" for details concerning the RSUs' vesting schedule. |
(5) | The exercise price is based on the fair market value of the Company's common stock as of the grant date established by the Evercore valuation process. |
(6) | The value of a RSU, PRSU or SAR award is based on the fair value as of the grant date of such award determined in accordance with FASB ASC 718. Please refer to Note 1 and Note 11 to our audited consolidated financial statements included in this report for the relevant assumptions used to determine the valuation of our awards. The grant date fair value of the Equity Incentive Plan Awards is based on the fair market value of the Company's common stock as of the grant date established by the Evercore valuation process less future expected dividends during the vesting period, multiplied by the target number of shares that may be earned. |
SAR Awards | |||||||||||||||
Name | Number of Securities Underlying Unexercised SARs Exercisable | Number of Securities Underlying Unexercised SARs Unexercisable(1) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned SARs(2) | SAR Exercise Price(3) | SAR Expiration Date | ||||||||||
Charles V. Bergh | 31,072 | — | $ | 32.00 | 2/2/2019 | ||||||||||
436,720 | — | 32.00 | 2/2/2019 | ||||||||||||
143,939 | 37.75 | 2/5/2020 | |||||||||||||
287,878 | — | 37.75 | 2/5/2020 | ||||||||||||
96,577 | 64.50 | 2/5/2021 | |||||||||||||
181,080 | 12,074 | (a) | 64.50 | 2/5/2021 | |||||||||||
139,622 | (a) | 74.25 | 2/4/2022 | ||||||||||||
129,716 | 58,963 | (b) | 74.25 | 2/4/2022 | |||||||||||
164,595 | (b) | 61.00 | 2/9/2023 | ||||||||||||
108,015 | 138,878 | (c) | 61.00 | 2/9/2023 | |||||||||||
100,743 | (e) | 69.00 | 2/1/2024 | ||||||||||||
Harmit Singh | 24,621 | 37.75 | 2/5/2020 | ||||||||||||
22,027 | 64.50 | 2/5/2021 | |||||||||||||
41,298 | 2,754 | (a) | 64.50 | 2/5/2021 | |||||||||||
33,701 | (a) | 74.25 | 2/4/2022 | ||||||||||||
31,310 | 14,233 | (b) | 74.25 | 2/4/2022 | |||||||||||
35,505 | (b) | 61.00 | 2/9/2023 | ||||||||||||
23,300 | 29,958 | (c) | 61.00 | 2/9/2023 | |||||||||||
21,698 | (e) | 69.00 | 2/1/2024 | ||||||||||||
Roy Bagattini | 1,908 | 1,431 | (a) | 64.50 | 2/5/2021 | ||||||||||
16,850 | (a) | 74.25 | 2/4/2022 | ||||||||||||
1,898 | 7,116 | (b) | 74.25 | 2/4/2022 | |||||||||||
18,387 | (b) | 61.00 | 2/9/2023 | ||||||||||||
2,299 | 15,514 | (c) | 61.00 | 2/9/2023 | |||||||||||
43,586 | (b) | 68.50 | 7/13/2023 | ||||||||||||
5,449 | 43,586 | (d) | 68.50 | 7/13/2023 | |||||||||||
14,724 | (e) | 69.00 | 2/1/2024 | ||||||||||||
Seth Ellison | 12,878 | — | 37.75 | 2/5/2020 | |||||||||||
10,590 | 64.50 | 2/5/2021 | |||||||||||||
19,852 | 1,326 | (a) | 64.50 | 2/5/2021 | |||||||||||
16,850 | (a) | 74.25 | 2/4/2022 | ||||||||||||
15,655 | 7,116 | (b) | 74.25 | 2/4/2022 | |||||||||||
18,387 | (b) | 61.00 | 2/9/2023 | ||||||||||||
12,066 | 15,514 | (c) | 61.00 | 2/9/2023 | |||||||||||
14,724 | (e) | 69.00 | 2/1/2024 | ||||||||||||
David Love | 26,667 | — | 32.00 | 2/2/2019 | |||||||||||
15,783 | 37.75 | 2/5/2020 | |||||||||||||
31,565 | — | 37.75 | 2/5/2020 | ||||||||||||
9,319 | 64.50 | 2/5/2021 | |||||||||||||
17,470 | 1,167 | (a) | 64.50 | 2/5/2021 | |||||||||||
13,841 | (a) | 74.25 | 2/4/2022 | ||||||||||||
12,859 | 5,846 | (b) | 74.25 | 2/4/2022 | |||||||||||
16,484 | (b) | 61.00 | 2/9/2023 | ||||||||||||
10,818 | 13,909 | (c) | 61.00 | 2/9/2023 | |||||||||||
14,724 | (e) | 69.00 | 2/1/2024 |
(1) | The following sets forth the vesting schedule for unvested outstanding SAR awards and generally depends upon continued employment through the applicable vesting date. Other circumstances under which such awards will vest are described in the section entitled "Potential Payments Upon Termination, Change In Control or Corporate Transaction.": |
(a) | SARs vest 25% on 2/5/2015 and then monthly over the remaining 36 months. |
(b) | SARs vest 25% on 2/4/2016 and then monthly over the remaining 36 months. |
(c) | SARs vest 25% on 2/9/2017 and then monthly over the remaining 36 months. |
(d) | SARs vest 25% on 7/13/2017 and then monthly over the remaining 36 months. |
(e) | SARs vest in equal annual installments of 25% beginning on 2/1/2018. |
(2) | Unless otherwise indicated below, represents the target number of SARs that may be earned under the performance-based SAR award program (see "Compensation Discussion and Analysis for Named Executive Officers" for more details) that vest at the end of a three-year performance period. |
(a) | Represents actual number of SARs that will vest following certification of performance results in the first quarter of fiscal 2018. |
(b) | SARs vesting subject to certification of performance results in the first quarter of fiscal 2019. The total number of SARs that could vest if the maximum performance is achieved over the three-year performance period for each named executive is as follows: Mr. Bergh (246,892), Mr. Singh (53,257), Mr. Bagattini (92,959), Mr. Ellison (27,580) and Mr. Love (24,726). |
(3) | The SAR exercise prices reflect the fair market value of the Company's common stock as of the grant date as established by the Evercore valuation process. |
Stock Awards | ||||||||||||||
Name | Number of Shares or Units of Stock That Have Not Vested (#)(1) | Market Value of Shares or Units of Stock That Have Not Vested ($)(2) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(3) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares or Units of Stock That Have Not Vested ($)(4) | ||||||||||
Charles V. Bergh | 23,550 | $ | 2,054,738 | 47,101 | $ | 4,109,562 | ||||||||
Harmit Singh | 5,072 | 442,532 | 10,144 | 885,064 | ||||||||||
Roy Bagattini | 3,442 | 300,315 | 6,884 | 600,629 | ||||||||||
Seth Ellison | 3,442 | 300,315 | 6,884 | 600,629 | ||||||||||
David Love | 3,442 | 300,315 | 6,884 | 600,629 | ||||||||||
(1) | RSUs fully vest on February 1, 2019. The vesting schedule for unvested outstanding stock awards generally depends upon continued employment through the applicable vesting date. Other circumstances under which such awards will vest are described in the section entitled "Potential Payments Upon Termination, Change In Control or Corporate Transaction." |
(2) | Represents the number of stock awards multiplied by $87.25, the fair market value of the Company's common stock as of December 31, 2017 as established by the Evercore valuation process. |
(3) | Represents the target number of shares that may be earned under the performance-based RSU award program (see "Compensation Discussion and Analysis for Named Executive Officers" for more details) that vest at the end of a three-year performance period, subject to certification of performance results in the first quarter of fiscal 2020. |
(4) | Represents the number of stock awards multiplied by $87.25, the fair market value of the Company's common stock as of December 31, 2017 as established by the Evercore valuation process. |
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | ||||||
Charles V. Bergh | 250,844 | $ | 17,308,304 | |||||
Harmit Singh | 33,451 | 2,308,219 | ||||||
Roy Bagattini | 18,524 | 1,398,782 | ||||||
Seth Ellison | 7,500 | 566,250 | ||||||
David Love | 19,964 | 1,427,443 |
Year Ended November 26, 2017 | ||||||||||||||||||||||
Name | Executive Contributions in last fiscal year(1) | Company Contributions in last fiscal year(2) | Aggregate Earnings in last fiscal year(3) | Aggregate Withdrawals / Distributions | Aggregate Balance at November 26, 2017(4) (5) | |||||||||||||||||
Charles V. Bergh | $ | 215,537 | $ | 268,708 | $ | 326,627 | $ | — | $ | 3,071,422 | ||||||||||||
Harmit Singh | 84,638 | 105,101 | 65,758 | — | 630,468 | |||||||||||||||||
Roy Bagattini | 71,099 | 76,178 | 10,150 | — | 161,972 | |||||||||||||||||
Seth Ellison | 161,538 | 96,042 | 31,121 | — | 900,285 | |||||||||||||||||
David Love | 496,866 | 78,491 | 293,832 | — | 2,655,926 |
(1) | The executive contribution amounts were included in fiscal 2017 compensation in the "Salary" and "Non-Equity Incentive Plan Compensation" columns of the Summary Compensation Table, as applicable. |
(2) | Amounts reflect the deferred compensation plan match contributions made by the Company and are reflected in the Summary Compensation Table under All Other Compensation. |
(3) | None of the earnings/interest in this column are included in the Summary Compensation Table because they were not preferential or above market. |
(4) | The following amounts were previously reported as compensation to the named executive officers in the Summary Compensation Table for fiscal years prior to fiscal 2017: Mr. Bergh ($1,907,318), Mr. Singh ($349,239), Mr. Bagattini ($402,983), Mr. Ellison ($252,495), and Mr. Love ($621,680). |
(5) | The Company's contribution on behalf of Mr. Bagattini to the international supplemental retirement savings plan for mobile employees, ceased in 2016, with the Company's contributions having been disclosed in the Summary Compensation Table under All Other Compensation in the relevant periods. The amount represented is the remaining active U.S. based plan. |
Charles V. Bergh | ||||||||||||||||||||||||
Executive Benefits and Payments Upon Termination | Voluntary Termination or for Cause Termination | Retirement | Termination Without Cause or Resignation for Good Reason | Death or Disability | Change in Control Termination | Corporate Transaction | ||||||||||||||||||
Compensation: | ||||||||||||||||||||||||
Severance(1) | $ | — | $ | — | $ | 5,521,080 | $ | — | $ | 10,842,000 | $ | — | ||||||||||||
Equity Vesting(2) | — | 9,007,369 | 9,007,369 | 8,580,047 | 17,010,228 | 17,010,228 | ||||||||||||||||||
Benefits: | ||||||||||||||||||||||||
COBRA & Life Insurance(3) | — | — | 20,777 | — | 20,777 | — |
(1) | Based on Mr. Bergh's annual base salary of $1,390,000 and his actual AIP award earned for fiscal year 2017 (see "Compensation Discussion and Analysis for Named Executive Officers" for more details). |
(2) | In the event of Retirement, assumes full vesting of unvested equity awards and the target number of shares underlying performance-based equity awards that have remained outstanding for at least 12 months. In the event of a Change in Control Termination, assumes full vesting of all unvested equity awards and the target number of shares underlying performance-based equity awards. In the event of Death or Disability, assumes full vesting of all unvested time-based equity awards. In the event of a Corporate Transaction, assumes no termination of employment and no assumption of outstanding equity awards. |
(3) | Reflects 18 months of a COBRA subsidy and life insurance premiums at the same Company/employee percentage sharing as during employment. |
Harmit Singh | ||||||||||||||||||||||||
Executive Benefits and Payments Upon Termination | Voluntary Termination or for Cause Termination | Retirement | Termination Without Cause or Resignation for Good Reason | Death or Disability | Change in Control Termination | Corporate Transaction | ||||||||||||||||||
Compensation: | ||||||||||||||||||||||||
Severance(1) | $ | — | $ | — | $ | 2,092,898 | $ | — | $ | 3,092,000 | $ | — | ||||||||||||
Equity Vesting(2) | — | — | 771,948 | 1,872,601 | 3,689,671 | 3,689,671 | ||||||||||||||||||
Benefits: | ||||||||||||||||||||||||
COBRA & Life Insurance(3) | — | — | 20,777 | — | 20,777 | — |
(1) | Based on Mr. Singh's annual base salary of $773,000 and his actual AIP award earned for fiscal year 2017 (see "Compensation Discussion and Analysis for Named Executive Officers" for more details). |
(2) | In the event of an Involuntary Not for Cause Termination, reflects full vesting of all unvested time-based equity awards held more than 12 months. In the event of a Change in Control Termination, assumes the equity awards are not assumed in the transaction and thus fully vest (with performance-based equity awards vesting at target). In the event the equity awards are assumed and the holder experiences a Change in Control Termination, the value of the vesting would be $932,006. In the event of Death or Disability, assumes full vesting of all unvested time-based equity awards. In the event of a Corporate Transaction, assumes no termination of employment and no assumption of outstanding equity awards. |
(3) | Reflects 18 months of a COBRA subsidy and life insurance premiums at the same Company/employee percentage sharing as during employment. |
Roy Bagattini | ||||||||||||||||||||||||
Executive Benefits and Payments Upon Termination | Voluntary Termination or for Cause Termination | Retirement | Termination Without Cause or Resignation for Good Reason | Death or Disability | Change in Control Termination | Corporate Transaction | ||||||||||||||||||
Compensation: | ||||||||||||||||||||||||
Severance(1) | $ | — | $ | — | $ | 1,844,378 | $ | — | $ | 2,782,800 | $ | — | ||||||||||||
Equity Vesting(2) | — | — | 856,235 | 1,918,571 | 3,819,096 | 3,819,096 | ||||||||||||||||||
Benefits: | ||||||||||||||||||||||||
COBRA & Life Insurance(3) | — | — | 26,550 | — | 26,550 | — |
(1) | Based on Mr. Bagattini's annual base salary of $773,000 and his actual AIP award earned for fiscal year 2017 (see "Compensation Discussion and Analysis for Named Executive Officers" for more details). |
(2) | In the event of an Involuntary Not for Cause Termination, reflects full vesting of all unvested time-based equity awards held more than 12 months. In the event of a Change in Control Termination, assumes the equity awards are not assumed in the transaction and thus fully vest (with performance-based equity awards vesting at target). In the event the equity awards are assumed and the holder experiences a Change in Control Termination, the value of the vesting would be $817,238. In the event of Death or Disability, assumes full vesting of all unvested time-based equity awards. In the event of a Corporate Transaction, assumes no termination of employment and no assumption of outstanding equity awards. |
(3) | Reflects 18 months of COBRA subsidy and life insurance premiums at the same Company/employee percentage sharing as during employment. |
Seth Ellison | ||||||||||||||||||||||||
Executive Benefits and Payments Upon Termination | Voluntary Termination or for Cause Termination | Retirement | Termination Without Cause or Resignation for Good Reason | Death or Disability | Change in Control Termination | Corporate Transaction | ||||||||||||||||||
Compensation: | ||||||||||||||||||||||||
Severance(1) | $ | — | $ | — | $ | 2,007,236 | $ | — | $ | 2,469,600 | $ | — | ||||||||||||
Equity Vesting(2) | — | — | 394,152 | 1,341,030 | 2,182,232 | 2,182,232 | ||||||||||||||||||
Benefits: | ||||||||||||||||||||||||
COBRA & Life Insurance(3) | — | — | 15,804 | — | 15,804 | — |
(1) | Based on Mr. Ellison's annual base salary of $686,000 and his actual AIP award earned for fiscal year 2017 (see "Compensation Discussion and Analysis for Named Executive Officers" for more details). |
(2) | In the event of an Involuntary Not for Cause Termination, reflects full vesting of all unvested time-based equity awards held more than 12 months. In the event of a Change in Control Termination, assumes the equity awards are not assumed in the transaction and thus fully vest (with performance-based equity awards vesting at target). In the event the equity awards are assumed and the holder experiences a Change in Control Termination, the value of the vesting would be $407,243. In the event of Death or Disability, assumes full vesting of all unvested time-based equity awards. In the event of a Corporate Transaction, assumes no termination of employment and no assumption of outstanding equity awards. |
(3) | Reflects 18 months of a COBRA subsidy and life insurance premiums at the same Company/employee percentage sharing as during employment. |
David Love | ||||||||||||||||||||||||
Executive Benefits and Payments Upon Termination | Voluntary Termination or for Cause Termination | Retirement | Termination Without Cause or Resignation for Good Reason | Death or Disability | Change in Control Termination | Corporate Transaction | ||||||||||||||||||
Compensation: | ||||||||||||||||||||||||
Severance(1) | $ | — | $ | — | $ | 1,639,400 | $ | — | $ | 2,520,000 | $ | — | ||||||||||||
Equity Vesting(2) | — | — | 345,937 | 1,036,686 | 2,070,020 | 2,070,020 | ||||||||||||||||||
Benefits: | ||||||||||||||||||||||||
COBRA & Life Insurance(3) | — | — | 29,290 | — | 29,290 | — |
(1) | Based on Mr. Love's annual base salary of $700,000 and his actual AIP award earned for fiscal year 2017 (see "Compensation Discussion and Analysis for Named Executive Officers" for more details). |
(2) | In the event of an Involuntary Not for Cause Termination, reflects full vesting of all unvested time-based equity awards held more than 12 months. In the event of a Change in Control Termination, assumes the equity awards are not assumed in the transaction and thus fully vest (with performance-based equity awards vesting at target). In the event the equity awards are assumed and the holder experiences a Change in Control Termination, the value of the vesting would be $365,111. In the event of Death or Disability, assumes full vesting of all unvested time-based equity awards. In the event of a Corporate Transaction, assumes no termination of employment and no assumption of outstanding equity awards. |
(3) | Reflects 18 months of a COBRA subsidy and life insurance premiums at the same Company/employee percentage sharing as during employment. |
Name | Fees Earned or Paid in Cash | Stock Awards(1) | All Other Compensation(2) | Total | ||||||||||||||
Stephen C. Neal(3) | $ | 215,000 | $ | 234,956 | $ | 29,093 | $ | 479,049 | ||||||||||
Troy Alstead | 120,000 | 134,994 | 14,345 | 269,339 | ||||||||||||||
Jill Beraud | 100,000 | 134,994 | 9,135 | 244,129 | ||||||||||||||
Robert A. Eckert | 120,000 | 134,994 | 25,293 | 280,287 | ||||||||||||||
Spencer Fleischer(4) | 115,000 | 134,994 | 16,082 | 266,076 | ||||||||||||||
Mimi L. Haas | 100,000 | 134,994 | 7,852 | 242,846 | ||||||||||||||
Peter E. Haas, Jr. | 100,000 | 134,994 | 10,268 | 245,262 | ||||||||||||||
Christopher J. McCormick | 100,000 | 134,994 | 5,738 | 240,732 | ||||||||||||||
Jenny Ming | 100,000 | 134,994 | 11,099 | 246,093 | ||||||||||||||
Patricia Salas Pineda(5) | 100,000 | 134,994 | 31,962 | 266,956 |
(1) | These amounts reflect the aggregate grant date fair value of RSUs granted under the EIP in 2017 computed in accordance with FASB ASC 718. Please refer to Note 1 and Note 11 to our audited consolidated financial statements included in this report for the relevant assumptions used to determine these awards. The grant date fair value of the RSUs is based on the fair market value of the Company's common stock as of the grant date established by the Evercore valuation process less future expected dividends during the vesting period. The following table shows as of November 26, 2017, the aggregate number of outstanding RSUs held by each person who was a director in fiscal 2017, which number includes any RSUs that were vested but deferred and RSUs that were not vested as of such date: |
Name | Aggregate Outstanding RSUs | ||
Stephen C. Neal | 11,904 | ||
Troy Alstead | 7,631 | ||
Jill Beraud | 4,915 | ||
Robert A. Eckert | 13,965 | ||
Spencer Fleischer | 9,120 | ||
Mimi L. Haas | 4,235 | ||
Peter E. Haas, Jr. | 5,506 | ||
Christopher J. McCormick | 3,660 | ||
Jenny Ming | 6,874 | ||
Patricia Salas Pineda | 9,294 |
(2) | This column includes the aggregate grant date fair value of dividend equivalents provided to each director in fiscal 2017 in the following amounts: |
Name | Fair Value of Dividend Equivalent RSUs Granted | ||||
Stephen C. Neal | $ | 21,593 | |||
Troy Alstead | 14,345 | ||||
Jill Beraud | 9,135 | ||||
Robert A. Eckert | 25,293 | ||||
Spencer Fleischer | 16,082 | ||||
Mimi L. Haas | 7,852 | ||||
Peter E. Haas, Jr. | 10,268 | ||||
Christopher J. McCormick | 5,738 | ||||
Jenny Ming | 11,099 | ||||
Patricia Salas Pineda | 24,462 |
(3) | Mr. Neal is the Chairman of the Board. Mr. Neal elected to defer 100% of his director's fees under the Deferred Compensation Plan for Executives and Outside Directors. Mr. Neal’s 2017 amount in the "All Other Compensation" column includes charitable matches of $7,500. |
(4) | Mr. Fleischer elected to defer 100% of his director's fees under the Deferred Compensation Plan for Executives and Outside Directors. |
(5) | Ms. Pineda's 2017 amount in the "All Other Compensation" column includes charitable matches of $7,500. |
Item 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
• | Each person known by us to own beneficially more than 5% of our common stock; |
• | Each of our directors and each of our named executive officers; and |
• | All of our directors and executive officers as a group. |
Name | Number of Shares Beneficially Owned | Percentage of Shares Outstanding | ||||||
Mimi L. Haas | 6,521,732 | 17.4 | % | |||||
Peter E. Haas Jr. | 5,734,945 | (1) | 15.3 | % | ||||
Margaret E. Haas | 4,449,581 | (2) | 11.9 | % | ||||
Robert D. Haas | 3,931,642 | (3) | 10.5 | % | ||||
Peter E. Haas Jr. Family Fund | 2,911,770 | (4) | 7.8 | % | ||||
Daniel S. Haas | 2,021,597 | (5) | 5.4 | % | ||||
Troy Alstead | 5,877 | * | ||||||
Jill Beraud | 5,877 | * | ||||||
Robert A. Eckert | 5,621 | * | ||||||
Spencer Fleischer | 666 | — | ||||||
Christopher J. McCormick | 666 | — | ||||||
Jenny Ming | — | — | ||||||
Stephen C. Neal | 23,508 | * | ||||||
Patricia Salas Pineda | 14,174 | * | ||||||
Charles V. Bergh | 559,060 | (6) | 1.5 | % | ||||
David Love | 80,078 | (7) | — | |||||
Harmit Singh | 28,829 | (8) | * | |||||
Seth M. Ellison | 19,369 | (9) | * | |||||
Roy Bagattini | 12,165 | (10) | * | |||||
Directors and executive officers as a group (22 persons) | 13,156,102 | (11) | 35.1 | % | ||||
* Less than 1%. |
(1) | Includes 2,911,770 shares held by the Peter E. Haas Jr. Family Fund, of which Mr. Haas is Vice President, for the benefit of charitable entities, and for which Mr. Haas shares voting and investment power. Includes an aggregate of 1,334,583 shares held by trusts, of which Mr. Haas is trustee, for the benefit of his children, grandchildren, and stepdaughter. Mr. Haas has sole voting and investment power over these shares. Includes 40,000 shares held by Mr. Haas' spouse over which Mr. Haas has no voting or investment power. Mr. Haas disclaims beneficial ownership of all these listed shares. |
(2) | Includes 1,877,592 shares held in trusts and a limited liability company, of which Ms. Haas is trustee and managing member, respectively, for the benefit of Ms. Haas' son. Ms. Haas has sole voting and investment power over these shares. Includes 886,122 shares held by the Margaret E. Haas Fund and 84,468 |
(3) | Includes 7,795 shares held jointly by Mr. Haas and his spouse and, as co-trustees, they share voting and investment power. Includes 1,166,141 shares held by a trust, of which Mr. Haas is trustee, for the benefit of his daughter. Mr. Haas has sole voting and investment power over these shares. Includes 1,023,645 shares held by Mr. Haas' spouse directly and in trusts over which Mr. Haas has no voting or investment power. Mr. Haas disclaims beneficial ownership of all these listed shares. |
(4) | Peter E. Haas Jr. is a Vice President of this fund. The shares are also included in Mr. Haas' ownership amounts as referenced above. Mr. Haas disclaims beneficial ownership of these shares. |
(5) | Includes 261,027 shares held in a trust for the benefit of Mr. Haas' cousin and 58,936 shares held in a trust for the benefit of his aunt. Mr. Haas disclaims beneficial ownership of all these listed shares. |
(6) | Represents the number of shares that Mr. Bergh has the right to acquire pursuant to outstanding SARs that may be exercised within 60 days of February 5, 2018. |
(7) | Includes the number of shares that Mr. Love has the right to acquire pursuant to outstanding SARs that may be exercised within 60 days of February 5, 2018. |
(8) | Represents the number of shares that Mr. Singh has the right to acquire pursuant to outstanding SARs that may be exercised within 60 days of February 5, 2018. |
(9) | Includes the number of shares that Mr. Ellison has the right to acquire pursuant to outstanding SARs that may be exercised within 60 days of February 5, 2018. |
(10) | Represents the number of shares that Mr. Bagattini has the right to acquire pursuant to outstanding SARs that may be exercised within 60 days of February 5, 2018. |
(11) | Includes 781,407 shares that our executive officers have the right to acquire pursuant to outstanding SARs that may be exercised within 60 days of February 5, 2018. |
Number of Outstanding Options, Warrants and Rights(1) | Number of Securities to Be Issued Upon Exercise of Outstanding Options, Warrants and Rights(2) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights(1) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans(3) | |||||
3,851,165 | 1,521,104 | $57.04 | 3,253,994 |
(1) | Includes only SARs and stock settled director RSUs. |
(2) | Represents the number of shares of common stock the SARs and stock settled director RSUs would convert to if exercised November 26, 2017, calculated based on the conversion formula as defined in the plan and the fair market value of our common stock on that date as determined by an independent third party. |
(3) | Calculated based on the number of stock awards authorized upon the adoption of the EIP, less the number of outstanding dilutive SARs, less shares issued in connection with converted RSUs, less securities expected to be issued in the future upon conversion of outstanding RSUs. The EIP provides for an award pool of 8,000,000 shares of Company common stock that may be subject to awards under the plan. The 3,253,994 shares in the table above reflects the potential number of shares which could be issued pursuant to future awards. Note that the following shares may return to the EIP and be available for issuance in connection with a future award: (i) shares covered by an award that expires or otherwise terminates without having been exercised in full; (ii) shares that are forfeited or awards which are canceled and regranted in accordance with the terms of the plan; (iii) shares covered by an award that may only be settled in cash per the terms of the award which do not count against the plan's award pool; (iv) shares withheld to cover payment of an exercise price or cover applicable tax withholding obligations; (v) shares tendered to cover payment of an exercise price; and (vi) shares that are cancelled pursuant to an exchange or repricing program. |
Item 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
Item 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
• | First, once a year when the base audit engagement is reviewed and approved, management will identify all other services (including fee ranges) for which management knows or believes it will engage our independent registered public accounting firm for the next 12 months. Those services typically include quarterly reviews, statutory audits, specified tax matters, certifications to the lenders as required by financing documents, and consultation on new accounting and disclosure standards. |
• | Second, if any new proposed engagement comes up during the year that was not pre-approved by the Audit Committee as discussed above, the engagement will require: (i) specific approval of the chief financial officer and corporate controller (including confirming with counsel permissibility under applicable laws and evaluating potential impact on independence) and, if approved by management, (ii) approval of the Audit Committee. |
• | Third, the chair of the Audit Committee will have the authority to give such approval, but may seek full Audit Committee input and approval in specific cases as he or she may determine. |
Year Ended | |||||||
November 26, 2017 | November 27, 2016 | ||||||
(Dollars in thousands) | |||||||
Services provided: | |||||||
Audit fees(1) | $ | 6,058 | $ | 5,733 | |||
Audit-related fees | — | — | |||||
Tax fees | 689 | 599 | |||||
All other fees(2) | 22 | 228 | |||||
Total fees | $ | 6,769 | $ | 6,560 |
(1) | Includes fees for the audit of our annual consolidated financial statements, quarterly reviews of interim consolidated financial statements and statutory audits. Further, these include fees for services in support of issuing non-audit letters over financial information, as well as fees for access to electronic accounting and audit reference materials. |
(2) | Consist of fees for other permissible services other than the services reported above. |
Item 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
3.1 | ||
3.2 | ||
4.1 | ||
4.2 | ||
4.3 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
10.5 | ||
10.6 | ||
10.7 | ||
10.8 | ||
10.9 | ||
10.10 | ||
10.11 | ||
10.12 | ||
10.13 | ||
10.14 | ||
10.15 | ||
10.16 | ||
10.17 | ||
10.18 | ||
10.19 | ||
10.20 | ||
10.21 | ||
10.22 | ||
10.23 | ||
10.24 | ||
10.25 | ||
10.26 | ||
10.27 | ||
10.28 | ||
10.29 | ||
12 | Statements re: Computation of Ratio of Earnings to Fixed Charges. Filed herewith. | |
21 | Subsidiaries of the Registrant. Filed herewith. | |
31.1 | ||
31.2 | ||
32 | ||
101.INS | XBRL Instance Document. Filed herewith. | |
101.SCH | XBRL Taxonomy Extension Schema Document. Filed herewith. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. Filed herewith. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. Filed herewith. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. Filed herewith. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. Filed herewith. | |
* Management contract, compensatory plan or arrangement. | ||
** Portions of this exhibit have been redacted and filed separately with the Commission, pursuant to a request for confidential treatment granted by the Commission. |
SCHEDULE II | |||||||||||||||
LEVI STRAUSS & CO. AND SUBSIDIARIES | |||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
Allowance for Doubtful Accounts | Balance at Beginning of Period | Additions Charged to Expenses | Deductions(1) | Balance at End of Period | |||||||||||
(Dollars in thousands) | |||||||||||||||
November 26, 2017 | $ | 11,974 | $ | 1,645 | $ | 1,893 | $ | 11,726 | |||||||
November 27, 2016 | $ | 11,025 | $ | 2,195 | $ | 1,246 | $ | 11,974 | |||||||
November 29, 2015 | $ | 12,704 | $ | 1,875 | $ | 3,554 | $ | 11,025 | |||||||
Sales Returns | Balance at Beginning of Period | Additions Charged to Net Sales | Deductions(1) | Balance at End of Period | |||||||||||
(Dollars in thousands) | |||||||||||||||
November 26, 2017 | $ | 36,457 | $ | 211,741 | $ | 200,797 | $ | 47,401 | |||||||
November 27, 2016 | $ | 34,021 | $ | 195,718 | $ | 193,282 | $ | 36,457 | |||||||
November 29, 2015 | $ | 32,191 | $ | 152,471 | $ | 150,641 | $ | 34,021 | |||||||
Sales Discounts and Incentives | Balance at Beginning of Period | Additions Charged to Net Sales | Deductions(1) | Balance at End of Period | |||||||||||
(Dollars in thousands) | |||||||||||||||
November 26, 2017 | $ | 105,477 | $ | 342,169 | $ | 312,507 | $ | 135,139 | |||||||
November 27, 2016 | $ | 86,274 | $ | 325,843 | $ | 306,640 | $ | 105,477 | |||||||
November 29, 2015 | $ | 98,416 | $ | 306,497 | $ | 318,639 | $ | 86,274 | |||||||
Valuation Allowance Against Deferred Tax Assets | Balance at Beginning of Period | Charges/(Releases) to Tax Expense | (Additions) / Deductions | Balance at End of Period | |||||||||||
(Dollars in thousands) | |||||||||||||||
November 26, 2017 | $ | 68,212 | $ | (19,301 | ) | $ | 10,219 | $ | 38,692 | ||||||
November 27, 2016 | $ | 75,753 | $ | (2,514 | ) | $ | 5,027 | $ | 68,212 | ||||||
November 29, 2015 | $ | 89,814 | $ | — | $ | 14,061 | $ | 75,753 |
(1) | The charges to the accounts are for the purposes for which the allowances were created. |
Date: | February 7, 2018 | LEVI STRAUSS & Co. | |
(Registrant) | |||
By: | /s/ HARMIT SINGH | ||
Harmit Singh Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Signature | Title | ||
/s/ STEPHEN C. NEAL | Chairman of the Board | Date: | February 7, 2018 |
Stephen C. Neal | |||
/s/ CHARLES V. BERGH | Director, President and | Date: | February 7, 2018 |
Charles V. Bergh | Chief Executive Officer | ||
(Principal Executive Officer) | |||
/s/ TROY ALSTEAD | Director | Date: | February 7, 2018 |
Troy Alstead | |||
/s/ JILL BERAUD | Director | Date: | February 7, 2018 |
Jill Beraud | |||
/s/ ROBERT A. ECKERT | Director | Date: | February 7, 2018 |
Robert A. Eckert | |||
/s/ SPENCER C. FLEISCHER | Director | Date: | February 7, 2018 |
Spencer C. Fleischer | |||
/s/ MIMI L. HAAS | Director | Date: | February 7, 2018 |
Mimi L. Haas | |||
/s/ PETER E. HAAS JR. | Director | Date: | February 7, 2018 |
Peter E. Haas Jr. | |||
/s/ CHRISTOPHER J. MCCORMICK | Director | Date: | February 7, 2018 |
Christopher J. McCormick | |||
/s/ JENNY MING | Director | Date: | February 7, 2018 |
Jenny Ming | |||
/s/ PATRICIA SALAS PINEDA | Director | Date: | February 7, 2018 |
Patricia Salas Pineda | |||
/s/ GAVIN BROCKETT | Senior Vice President and Global Controller | Date: | February 7, 2018 |
Gavin Brockett | (Principal Accounting Officer) |
Page | ||
1. | Definitions | 2 |
2. | Eligibility for Severance Payments and Severance Benefits | 6 |
3. | Amount and Form of Severance Payments and Severance Benefits | 6 |
4. | Administration | 12 |
5. | Amendment or Termination | 12 |
6. | Claims Procedure | 12 |
7. | Source of Payments. | 13 |
8. | Inalienability | 14 |
9. | Recovery of Payments Made by Mistake | 14 |
10. | No Enlargement of Employment Rights | 14 |
11. | Applicable Law | 14 |
12. | Severability | 14 |
13. | Execution | 15 |
Chief Executive Officer | 104 weeks of Compensation |
Other WLT Members | 78 weeks of Compensation |
Chief Executive Officer | 156 weeks of Compensation |
Other WLT Members | 104 weeks of Compensation |
(i) | If a WLT Member (1) has been granted a Stock Appreciation Right or Restricted Stock Unit Award from the Company, (2) such Stock Appreciation Right or Restricted Stock Unit Award is subject to time-based vesting and (3) the WLT Member’s Termination Date is at least twelve (12) months after the date of grant of such Stock Appreciation Right or Restricted Stock Unit Award, the Stock Appreciation Right or Restricted Stock Unit Award shall continue to vest for the duration of the WLT Member’s severance payment period under Section 3.1(a). The post-termination exercise period of any Stock Appreciation Rights that continue to vest in accordance with the preceding sentence shall run from the end of the severance payment period under Section 3.1(a) instead of from the WLT Member’s Termination Date. Section 3.2(e)(i) does not apply if the WLT Member is eligible for Severance Pay under Section 3.1(b). In that event, Equity Awards granted to a WLT Member will be governed solely by the applicable plan or the applicable award agreement. |
(ii) | If a WLT Member (1) has been granted a Performance Award from the Company on or after January 1, 2017 and (2) becomes eligible for Severance Pay under Section 3.1(b), vesting of such Performance Award shall be accelerated in full to the WLT Member’s Termination Date and the WLT Member shall receive a payout of the Performance Award at 100% of the target award opportunity within 10 days following the 60th day after the WLT Member’s separation from service. |
(iii) | Any other equity awards previously granted to a WLT Member will be governed solely by the applicable plan or the applicable award agreement. |
LEVI STRAUSS & CO. | ||||
Elizabeth Wood | ||||
Senior Vice President & Chief Human Resources Officer | ||||
Dated: |
Signed: | ||
/s/ SETH ELLISON | July 18, 2013 | |
Seth Ellison | Date |
• | Pre-Assignment Trip of up to 7 days for you and your spouse, partner, and daughter to include business class airfare, lodging, meals and transportation. |
• | Travel to Host Country for you and your family at the time of your move via the most direct route and in accordance with US business travel policy. |
• | Home Country Lease Breaking Penalty Protection if needed to cover reasonable penalties for canceling a lease on your primary home country residence. |
• | Temporary Housing and Per Diem of $70 per day for up to 60 days in your host location at the time of your move. |
• | Destination Services provided by a designated provider to assist you with finding housing and settling in to your new location. |
• | Host Country Housing Allowance of up to US$12,000 per month beginning with the start of a rental agreement for long-term housing in your host country. If you choose a residence that exceeds the housing allowance limit, you will be responsible for paying the difference. The company will reimburse you for the cost of basic utilities in your host location (water, gas, electricity), excluding the cost of telephone, internet and television services. Note that a housing offset deduction will be deducted from your paycheck. If you are a homeowner, LS&Co. recommends that you put your home in property management as a rental property. Your Assignment Counselor will provide information about the property management services that are available. For homeowners, the housing offset deduction will be the lesser of your current mortgage plus utilities, or current rental income plus utilities. For renters, the housing offset deduction will be equivalent to your most recent rent in your home country plus average monthly utilities. |
• | Shipment of Household Goods and Personal Effects for you and your family in a 40 foot container to a maximum of 14,000 pounds/2,000 cubic feet, and an air shipment of up to 750 pounds/78 cubic feet. Shipments are limited to pickup at one point of origin (your home location) and delivery to one destination (your host location). Restrictions are outlined in the Global Assignment Handbook. |
• | Storage of Household Goods in your home location for items that you will not use in your host location, with some restrictions as outlined in the Global Assignment Handbook. |
• | Shipment of Pets to a maximum of 2 Pets. Covered expenses include the cost of the travel container, transportation and boarding not to exceed 30 days or required quarantine time in the host location. Veterinarian fees such as the cost of vaccinations and health certificates are not covered. |
• | A Goods & Services (G&S) Differential designed to ensure that your total purchasing power for goods and services in your host country is as similar as possible to that which you would have in your home city. The differential is paid via payroll checks and begins upon your move into long- term host country housing. The allowance is not paid while you are in temporary housing. The differential is calculated at the time you move into long-term housing using data produced by an outside vendor, Mercer/ORC, and is reviewed periodically and adjusted to reflect changes in exchange rates and goods & services indices. During your first 6 months on assignment, your G&S differential will be based on the Standard Index. During this time you will have the opportunity to assimilate into local buying practices and become a more efficient purchaser of goods and services in your host location. Upon reaching 6 months on assignment, your G&S differential will be moved to the Efficient Purchaser Index (EPI) and will be reduced accordingly. |
• | Miscellaneous Relocation Allowance of US$10,000 to cover expenses related to moving and establishing a household in your host country. This is a lump sum payment, and LS&Co. pays the taxes on this allowance. |
• | Home Country Automobile Disposition - Lease breakage fee for 1 auto will be provided. |
• | Immigration Support provided by designated immigration counsel to assist in obtaining work authorization for you in your host country, and dependent visas for your family. |
• | Language Training through a designated vendor not to exceed 150 hours. |
• | Cultural Orientation for up to 2 days for you and your family through a designated vendor. |
• | Annual Home Visit once per year for you and your accompanying family to include round trip business class airfare to your home country via the most direct route. Should you not have access to lodging or a car in your home country, reasonable accommodations and car rental (excluding gasoline) for 2 weeks will be reimbursed. Cost of meals, laundry, telephone calls, entertainment, and any other extras will not be reimbursed. Home visit requests are reviewed with your host country manager and are counted against your accrued time off. Note that you must accompany family members on the home visit in order for the expenses to be reimbursed. |
• | Tax Preparation Services provided through a designated vendor during your assignment and the year following the end of your assignment. Currently, Ernst & Young provides tax services to LS&Co.’s global assignees. |
• | Tax Equalization is provided to ensure that you realize neither a significant tax detriment nor a benefit as a result of the assignment. LS&Co. has contracted with Ernst & Young to prepare your home and host country tax returns, to administer the tax equalization program, and to provide tax orientation to you before your departure on assignment. |
◦ | Income you receive during your global assignment is taxable under the laws of your host county and the US. In order to avoid a double taxation burden, LS&Co. pays the taxes assessed on host country income. In addition, LS&Co. pays the tax assessed on certain allowances you receive while in your host country which represents payments you would not receive but for your global assignment. You remain fully responsible for the tax liability for all taxable income earned in a given year that represents your base salary, any incentive payments, tax on personal investments, and any other income not specifically related to your global assignment. This tax liability is referred to as Stay at Home Tax. |
◦ | To implement tax equalization, you agree to promptly furnish information to and permit Ernst & Young to complete your income tax returns for each year or partial year you are on this expatriate assignment (including any amendments to these returns recommended by Ernst & Young), and for up to five calendar years following the year in which you complete the expatriate assignment if deemed necessary. This agreement survives the end of your employment, and obliges you to have Ernst & Young perform this service even after you leave LS&Co. so that all appropriate tax credits may be taken. You further agree to amend returns from prior years to use foreign tax credits, when advised to do so by Ernst & Young. You also agree that Ernst & Young’s calculation of the Stay at Home Tax will be deducted from your paychecks, and from any incentive payments. You further acknowledge and agree that you are solely responsible for making timely payments of: (i) any additional US, state, or local tax that may be due after final tax calculations are completed by Ernst & Young for a given year, (ii) any host country taxes on income from sources other than LS&Co., (iii) any host country, US, state, and local taxes due on any income earned by your spouse, (iv) any taxes assessed by reason of the sale of your principal residence, the sale of a vacation home, or the sale of any other asset, (v) any penalties, fines, or interest due because you turned in information to Ernst & Young after the deadlines set by Ernst & Young, and (vi) the fees charged by Ernst & Young to research an unusual or complex personal tax issue. You further agree to promptly either repay to LS&Co. or endorse over to LS&Co. all refunds received from a host country taxing authority or the United States, a state, or a local taxing authority, when the refund should be remitted to LS&Co. under the tax equalization program in effect at LS&Co. at the time of the refund, and any social benefit payments. |
◦ | It is your responsibility to deliver your completed tax organizer to Ernst & Young on time, and to promptly respond to any requests for information from them. Any penalties incurred or interest accrued because of the late submission of information by you will be your sole responsibility. Any failure to execute documents on time, endorse checks, make required repayments, or otherwise comply with the requirements of the tax equalization program will be grounds for discipline, up to and including termination of employment. You further authorize and agree that if you fail to make required repayments or other payments due to LS&Co. as a result of the tax equalization program within the LS&Co. designated timeframe, LS&Co. may make payroll deductions to cover these repayments. |
◦ | A representative from Ernst & Young will contact you to answer any questions you may have about the tax equalization program. |
• | Repatriation Support will be provided at the conclusion of your assignment in accordance with the Global Assignment policy in effect at the time of your repatriation, provided that you return to your home country within the timeframe specified by LS&Co. Note that if you resign or are |
a. | I assign to the Company complete ownership of all the Inventions specified in this paragraph, together with ownership to all patent applications and patents (United States and foreign) which the Company may desire to secure with respect to the same, and all copyrights, trade or service marks, work rights or other intellectual property rights relating to these Inventions. |
b. | I will cooperate with the Company to secure the Company’s rights to the Inventions and to procurements of United States and foreign patents, copyrights, and trade or service marks on such Inventions, and particularly to disclose to the Company all pertinent information and data with respect thereto and execute all applications, specifications, oaths, assignments and all other instruments which the Company deems necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns and nominees the sole and exclusive rights, title and interest in and to these Inventions. |
c. | If, during my employment with the Company, I incorporate into any Invention under this Agreement any other invention, improvement, development, concept, discovery or other proprietary information owned by me or in which I have an interest, the Company is hereby granted and shall have a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to make, have made, modify, use and sell such item as part of or in connection with such Invention. |
EMPLOYEE: | ||
Signature: | ||
Name Printed: | ||
Sincerely, | ||
/s/ SCOTT WHITE | ||
Scott White | ||
/s/ SETH ELLISON | July 12, 2016 | ||
Date |
Signed: | |||
/s/ DAVID LOVE | September 19, 2016 | ||
David Love | Date | ||
Exhibit 12 | ||||||||||||||||||||
LEVI STRAUSS & CO. AND SUBSIDIARIES | ||||||||||||||||||||
Statements re: Computation of Ratio of Earnings to Fixed Charges | ||||||||||||||||||||
Year Ended | ||||||||||||||||||||
November 26, 2017 | November 27, 2016 | November 29, 2015 | November 30, 2014 | November 24, 2013 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income before income taxes | $ | 348,781 | $ | 407,260 | $ | 310,398 | $ | 153,854 | $ | 322,613 | ||||||||||
Add: Fixed charges | 142,581 | 142,458 | 146,500 | 182,831 | 195,071 | |||||||||||||||
Add: Amortization of capitalized interest | 951 | 869 | 958 | 1,040 | 876 | |||||||||||||||
Subtract: Capitalized interest | 583 | 1,085 | 1,121 | 905 | 1,201 | |||||||||||||||
Total earnings | $ | 491,730 | $ | 549,502 | $ | 456,735 | $ | 336,820 | $ | 517,359 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense (includes amortization of debt discount and costs) | $ | 68,603 | $ | 73,170 | $ | 81,214 | $ | 117,597 | $ | 129,024 | ||||||||||
Capitalized interest | 583 | 1,085 | 1,121 | 905 | 1,201 | |||||||||||||||
Interest factor in rental expense(1) | 73,395 | 68,203 | 64,165 | 64,329 | 64,846 | |||||||||||||||
Total fixed charges | $ | 142,581 | $ | 142,458 | $ | 146,500 | $ | 182,831 | $ | 195,071 | ||||||||||
Ratio of earnings to fixed charges | 3.4 | x | 3.9 | x | 3.1 | x | 1.8 | x | 2.7 | x |
(1) | Utilized an assumed interest factor of 33% in rental expense. |
Subsidiary | Jurisdiction of Formation |
Levi Strauss (Australia) Pty. Ltd. | Australia |
Levi Strauss & Co. Europe SCA | Belgium |
Levi Strauss Benelux Retail BVBA | Belgium |
Levi Strauss Continental, S.A. | Belgium |
Levi Strauss International Group Finance Coordination Services | Belgium |
Majestic Insurance International, Ltd. | Bermuda |
Levi Strauss do Brasil Franqueadora Ltda. | Brazil |
Levi Strauss do Brasil Industria e Comercio Ltda. | Brazil |
Levi Strauss & Co. (Canada) Inc. | Canada |
Levi Strauss Commerce (Shanghai) Limited | China |
Levi's Footwear & Accessories (China) Ltd | China |
Levi Strauss Praha, spol. s.r.o. | Czech Republic |
Levi's Footwear & Accessories France S.A.S. | France |
Paris - O.L.S. S.A.R.L. | France |
Levi Strauss Germany GmbH | Germany |
Levi Strauss Hellas S.A. | Greece |
Levi Strauss (Hong Kong) Limited | Hong Kong |
Levi Strauss Global Trading Company II, Limited | Hong Kong |
Levi Strauss Global Trading Company Limited | Hong Kong |
Levi's Footwear & Accessories HK Limited | Hong Kong |
Levi Strauss Hungary Trading Limited Liability Company | Hungary |
Levi Strauss (India) Private Limited | India |
PT Levi Strauss Indonesia | Indonesia |
Levi Strauss Italia S.R.L. | Italy |
Levi's Footwear & Accessories Italy SpA | Italy |
World Wide Logistics S.R.L. | Italy |
Levi Strauss Japan Kabushiki Kaisha | Japan |
Levi Strauss Korea Ltd. | Korea, Republic of |
Levi Strauss (Malaysia) Sdn. Bhd. | Malaysia |
LS Retail (Malaysia) Sdn. Bhd. | Malaysia |
Levi Strauss Mauritius Limited | Mauritius |
Administradora Levi Strauss Mexico, S.A. de C.V. | Mexico |
Distribuidora Levi Strauss Mexico, S.A. de C.V. | Mexico |
Levi Strauss de Mexico, S.A. de C.V. | Mexico |
Levi Strauss Nederland B.V. | Netherlands |
Levi Strauss Nederland Holding B.V. | Netherlands |
LVC B.V. | Netherlands |
Levi Strauss New Zealand Limited | New Zealand |
Levi Strauss Pakistan (Private) Limited | Pakistan |
Levi Strauss Philippines, Inc. II | Philippines |
Levi Strauss Poland SP z.o.o. | Poland |
“Levi Strauss Moscow” Limited Liability Company | Russian Federation |
Levi Strauss Asia Pacific Division, PTE. LTD. | Singapore |
Levi Strauss South Africa (Proprietary) Limited | South Africa |
Levi Strauss de Espana, S.A. | Spain |
Levi's Footwear & Accessories Spain S.A. | Spain |
Levi Strauss (Suisse) SA | Switzerland |
Levi's Footwear & Accessories (Switzerland) S.A. | Switzerland |
Levi Strauss Istanbul Konfekslyon Sanayi ve Ticaret A.S. | Turkey |
Levi Strauss Dis Ticaret Limited Sirketi | Turkey |
Levi Strauss (UK) Limited | United Kingdom |
Levi Strauss Pension Trustee Ltd. | United Kingdom |
Industrie Denim, LLC | United States (California) |
Levi Strauss International | United States (California) |
LS Operations LLC | United States (California) |
Levi Strauss International, Inc. | United States (Delaware) |
Levi Strauss, U.S.A., LLC | United States (Delaware) |
Levi Strauss-Argentina, LLC | United States (Delaware) |
Levi's Only Stores Georgetown, LLC | United States (Delaware) |
Levi's Only Stores, Inc. | United States (Delaware) |
LVC, LLC | United States (Delaware) |
Threads, Inc. | United States (Delaware) |
/s/ CHARLES V. BERGH | ||
Charles V. Bergh | ||
President and Chief Executive Officer |
/s/ HARMIT SINGH | ||
Harmit Singh | ||
Executive Vice President and Chief Financial Officer |
/s/ CHARLES V. BERGH | ||
Charles V. Bergh | ||
President and Chief Executive Officer | ||
February 7, 2018 |
/s/ HARMIT SINGH | ||
Harmit Singh | ||
Executive Vice President and Chief Financial Officer | ||
February 7, 2018 |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Feb. 05, 2018 |
May 29, 2016 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LEVI STRAUSS & CO | ||
Entity Central Index Key | 0000094845 | ||
Current Fiscal Year End Date | --11-27 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 26, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 37,521,447 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Nov. 26, 2017 |
Nov. 27, 2016 |
---|---|---|
Current Assets: | ||
Allowance for doubtful accounts | $ 11,726 | $ 11,974 |
Accumulated depreciation | $ 951,249 | $ 856,588 |
Levi Strauss & Co. stockholders’ equity | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 270,000,000 | 270,000,000 |
Common stock, shares issued (shares) | 37,521,447 | 37,470,158 |
Common stock, shares outstanding (shares) | 37,521,447 | 37,470,158 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 |
Aug. 27, 2017 |
May 28, 2017 |
Feb. 26, 2017 |
Nov. 27, 2016 |
Aug. 28, 2016 |
May 29, 2016 |
Feb. 28, 2016 |
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Income Statement [Abstract] | |||||||||||
Net revenues | $ 1,465,793 | $ 1,268,391 | $ 1,067,855 | $ 1,101,991 | $ 1,299,541 | $ 1,185,111 | $ 1,011,587 | $ 1,056,500 | $ 4,904,030 | $ 4,552,739 | $ 4,494,493 |
Cost of goods sold | 682,638 | 611,762 | 509,463 | 537,438 | 640,131 | 592,305 | 494,389 | 496,902 | 2,341,301 | 2,223,727 | 2,225,512 |
Gross profit | 783,155 | 656,629 | 558,392 | 564,553 | 659,410 | 592,806 | 517,198 | 559,598 | 2,562,729 | 2,329,012 | 2,268,981 |
Selling, general and administrative expenses | 633,297 | 510,309 | 495,741 | 456,213 | 517,454 | 448,525 | 459,351 | 441,163 | 2,095,560 | 1,866,493 | 1,823,863 |
Restructuring, net | (718) | (627) | (191) | 1,848 | 0 | 312 | 14,071 | ||||
Operating income | 149,858 | 146,320 | 62,651 | 108,340 | 142,674 | 144,908 | 58,038 | 116,587 | 467,169 | 462,207 | 431,047 |
Interest expense | (16,298) | (14,476) | (17,895) | (19,934) | (18,687) | (19,170) | (20,411) | (14,902) | (68,603) | (73,170) | (81,214) |
Loss on early extinguishment of debt | 0 | 0 | (22,793) | 0 | (22,793) | 0 | (14,002) | ||||
Other income (expense), net | 5,421 | (14,734) | (18,087) | 408 | 11,468 | 4,679 | 4,295 | (2,219) | (26,992) | 18,223 | (25,433) |
Income before income taxes | 138,981 | 117,110 | 3,876 | 88,814 | 135,455 | 130,417 | 41,922 | 99,466 | 348,781 | 407,260 | 310,398 |
Income tax expense | 21,748 | 27,631 | (13,847) | 28,693 | 39,301 | 32,713 | 10,862 | 33,175 | 64,225 | 116,051 | 100,507 |
Net income | 117,233 | 89,479 | 17,723 | 60,121 | 96,154 | 97,704 | 31,060 | 66,291 | 284,556 | 291,209 | 209,891 |
Net income attributable to noncontrolling interest | (1,481) | (1,487) | (207) | 22 | 19 | 614 | (335) | (455) | (3,153) | (157) | (455) |
Net income attributable to Levi Strauss & Co. | $ 115,752 | $ 87,992 | $ 17,516 | $ 60,143 | $ 96,173 | $ 98,318 | $ 30,725 | $ 65,836 | $ 281,403 | $ 291,052 | $ 209,436 |
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 284,556 | $ 291,209 | $ 209,891 |
Pension and postretirement benefits | 30,125 | (22,925) | 38,785 |
Net investment hedge (losses) gains | (59,945) | (829) | 385 |
Foreign currency translation gains (losses) | 40,256 | (30,380) | (28,791) |
Unrealized gains (losses) on marketable securities | 3,379 | 143 | (575) |
Total other comprehensive income (loss), before related income taxes | 13,815 | (53,991) | 9,804 |
Income tax benefit (expense) related to items of other comprehensive (loss) income | 9,223 | 6,211 | (13,602) |
Comprehensive income, net of income taxes | 307,594 | 243,429 | 206,093 |
Comprehensive income attributable to noncontrolling interest | (3,258) | (625) | (383) |
Comprehensive income attributable to Levi Strauss & Co. | $ 304,336 | $ 242,804 | $ 205,710 |
Consolidated Statements of Stockholders' Deficit and Comprehensive Income - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Accumulated Earnings (Deficit) [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Noncontrolling Interest [Member] |
---|---|---|---|---|---|---|
Beginning balance at Nov. 30, 2014 | $ 154,455 | $ 374 | $ 0 | $ 528,209 | $ (375,340) | $ 1,212 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 209,891 | 0 | 0 | 209,436 | 0 | 455 |
Other comprehensive income, net of tax | (3,798) | 0 | 0 | 0 | (3,726) | (72) |
Stock-based compensation and dividends, net | 16,609 | 1 | 16,674 | (66) | 0 | 0 |
Reclassification to temporary equity | 8,881 | 0 | (10,961) | 19,842 | 0 | 0 |
Repurchase of common stock | (4,175) | 0 | (2,422) | (1,753) | 0 | 0 |
Cash dividends paid | (50,000) | 0 | 0 | (50,000) | 0 | 0 |
Ending balance at Nov. 29, 2015 | 331,863 | 375 | 3,291 | 705,668 | (379,066) | 1,595 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 291,209 | 0 | 0 | 291,052 | 0 | 157 |
Other comprehensive income, net of tax | (47,780) | 0 | 0 | 0 | (48,248) | 468 |
Stock-based compensation and dividends, net | 9,609 | 0 | 9,649 | (40) | 0 | 0 |
Reclassification to temporary equity | (10,563) | 0 | (10,563) | 0 | 0 | 0 |
Repurchase of common stock | (2,563) | 0 | (932) | (1,631) | 0 | 0 |
Cash dividends paid | (60,000) | 0 | 0 | (60,000) | 0 | 0 |
Ending balance at Nov. 27, 2016 | 511,775 | 375 | 1,445 | 935,049 | (427,314) | 2,220 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 284,556 | 0 | 0 | 281,403 | 0 | 3,153 |
Other comprehensive income, net of tax | 23,038 | 0 | 0 | 0 | 22,933 | 105 |
Stock-based compensation and dividends, net | 25,810 | 2 | 25,878 | (70) | 0 | 0 |
Reclassification to temporary equity | (47,689) | 0 | (13,575) | (34,114) | 0 | 0 |
Repurchase of common stock | (25,102) | 2 | 13,748 | (11,352) | 0 | 0 |
Cash dividends paid | (70,000) | 0 | 0 | 0 | 0 | |
Ending balance at Nov. 26, 2017 | $ 702,388 | $ 375 | $ 0 | $ 1,100,916 | $ (404,381) | $ 5,478 |
Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Levi Strauss & Co. (the "Company") is one of the world’s largest brand-name apparel companies. The Company designs, markets and sells – directly or through third parties and licensees – products that include jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear and related accessories, for men, women and children around the world under the Levi’s®, Dockers®, Signature by Levi Strauss & Co.™ and Denizen® brands. The Company operates its business through three geographic regions: Americas, Europe and Asia. Basis of Presentation and Principles of Consolidation The consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries are prepared in conformity with generally accepted accounting principles in the United States ("U.S. GAAP"). All significant intercompany balances and transactions have been eliminated. The Company is privately held primarily by descendants of the family of its founder, Levi Strauss, and their relatives. The Company’s fiscal year ends on the last Sunday of November in each year, although the fiscal years of certain foreign subsidiaries end on November 30. Fiscal 2017, 2016 and 2015 were 52-week years, ending on November 26, 2017, November 27, 2016 and November 29, 2015, respectively. Each quarter of fiscal years 2017, 2016 and 2015 consists of 13 weeks. All references to years relate to fiscal years rather than calendar years. Subsequent events have been evaluated through the issuance date of these financial statements. Out-of-period Adjustments For the year ended November 26, 2017, the Company's results include an out-of-period adjustment, which increased selling, general and administrative expenses by approximately $8.3 million and decreased net income by $5.1 million. This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest awards after retirement. The Company has evaluated the effects of this out-of-period adjustment, both qualitatively and quantitatively, and concluded that the correction of this amount was not material to the current period or the periods in which they originated, including quarterly reporting. Reclassification Certain amounts in Note 20 "Business Segment Information" have been conformed to the November 26, 2017 presentation. Effective as of the beginning of 2017, certain of our global expenses that support all of our regional segments, including global e-commerce infrastructure and global brand merchandising, marketing and design, previously recorded centrally in our Americas region segment and Corporate expenses, have now been allocated to our three regional business segments, and reported in their operating results. Business segment information for the prior-year periods has been revised to reflect this change in presentation. Certain insignificant amounts on the consolidated statements of cash flows have been conformed to the November 26, 2017 presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at fair value. Accounts Receivable, Net The Company extends credit to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. The Company estimates the allowance for doubtful accounts based upon an analysis of the aging of accounts receivable at the date of the consolidated financial statements, assessments of collectability based on historic trends, customer-specific circumstances, and an evaluation of economic conditions. Actual write-off of receivables may differ from estimates due to changes in customer and economic circumstances. Inventory Valuation The Company values inventories at the lower of cost or market value. Inventory cost is determined using the first-in first-out method. The Company includes product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating its remaining manufacturing facilities, including the related depreciation expense, in the cost of inventories. The Company estimates quantities of slow-moving and obsolete inventory, by reviewing on-hand quantities, outstanding purchase obligations and forecasted sales. The Company determines inventory market values by estimating expected selling prices based on the Company's historical recovery rates for slow-moving and obsolete inventory and other factors, such as market conditions, expected channel of distribution and current consumer preferences. Income Tax Assets and Liabilities The future effective tax rate will ultimately depend on the mix of earnings between domestic and foreign operations, the impact of certain undistributed foreign earnings for which no U.S. taxes have been provided because such earnings are planned to be indefinitely reinvested outside of the United States, changes in tax laws and regulations and potential resolutions on tax examinations, refund claims and litigation. Remittances of foreign earnings to the United States are planned based on projected cash flow, working capital and investment needs of our foreign and domestic operations. Based on these assumptions, the Company estimates the amount that will be distributed to the United States and provides U.S. federal taxes on these amounts. Material changes in the Company's estimates as to how much of the Company's foreign earnings will be distributed to the United States or tax legislation that limits or restricts the amount of undistributed foreign earnings that the Company considers indefinitely reinvested outside the United States could materially impact the Company's income tax provision and effective tax rate. Significant judgment is required in determining the Company's worldwide income tax provision. In the ordinary course of a global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise from examinations in various jurisdictions and assumptions and estimates used in evaluating the need for valuation allowances. The Company is subject to income taxes in both the United States and numerous foreign jurisdictions. The Company computes its provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carryforwards. All deferred income taxes are classified as non-current on the Company's consolidated balance sheets. Deferred tax assets and liabilities are measured using the currently enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. Significant judgments are required in order to determine the realizability of these deferred tax assets. In assessing the need for a valuation allowance, the Company's management evaluates all significant available positive and negative evidence, including historical operating results, estimates of future taxable income and the existence of prudent and feasible tax planning strategies. The Company continuously reviews issues raised in connection with all ongoing examinations and open tax years to evaluate the adequacy of its tax liabilities. The Company evaluates uncertain tax positions under a two-step approach. The first step is to evaluate the uncertain tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination based on its technical merits. The second step, for those positions that meet the recognition criteria, is to measure the tax benefit as the largest amount that is more than fifty percent likely to be realized. The Company believes that its recorded tax liabilities are adequate to cover all open tax years based on its assessment. This assessment relies on estimates and assumptions and involves significant judgments about future events. To the extent that the Company's view as to the outcome of these matters change, the Company will adjust income tax expense in the period in which such determination is made. The Company classifies interest and penalties related to income taxes as income tax expense. Property, Plant and Equipment Property, plant and equipment are carried at cost, less accumulated depreciation. The cost is depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs relating to internal-use software development are capitalized when incurred during the application development phase. Buildings are depreciated over 20 to 40 years, and leasehold improvements are depreciated over the lesser of the life of the improvement or the initial lease term. Buildings and leasehold improvements includes build-to-suit assets related to the construction of a building or leasehold improvement (generally on property owned by the landlord) when the Company concludes it has substantially all of the risks of ownership during construction of a leased property and therefore is deemed the owner of the project. The related financing obligation is recorded in "other accrued liabilities". Machinery and equipment includes furniture and fixtures, automobiles and trucks, and networking communication equipment, and is depreciated over a range from three to 20 years. Capitalized internal-use software is depreciated over periods ranging from three to seven years. Goodwill and Other Intangible Assets Goodwill resulted primarily from a 1985 acquisition of the Company by Levi Strauss Associates Inc., a former parent company that was subsequently merged into the Company in 1996, and the Company's 2009 acquisitions. Goodwill is not amortized. Intangible assets are comprised of owned trademarks with indefinite useful lives which are not being amortized and acquired contractual rights. Impairment The Company reviews its goodwill and other non-amortized intangible assets for impairment annually in the fourth quarter of its fiscal year, or more frequently as warranted by events or changes in circumstances which indicate that the carrying amount may not be recoverable. The Company qualitatively assesses goodwill and non-amortized intangible assets to determine whether it is more likely than not that the fair value of a reporting unit or other non-amortized intangible asset is less than its carrying amount. During fiscal 2017, the Company performed this analysis examining key events and circumstances affecting fair value and determined it is more likely than not that the reporting unit's fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s goodwill or other non-amortized intangible asset for impairment. If goodwill is not qualitatively assessed or if goodwill is qualitatively assessed and it is determined it is not more likely than not that the reporting unit's fair value is greater than its carrying amount, a two-step quantitative approach is utilized. In the first step, the Company compares the carrying value of the reporting unit or applicable asset to its fair value, which the Company estimates using a discounted cash flow analysis or by comparison with the market values of similar assets. If the carrying amount of the reporting unit or asset exceeds its estimated fair value, the Company performs the second step, and determines the impairment loss, if any, as the excess of the carrying value of the goodwill or intangible asset over its fair value. The Company reviews its other long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the expected future undiscounted cash flows, the Company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. To determine the fair value of impaired assets, the Company utilizes the valuation technique or techniques deemed most appropriate based on the nature of the impaired asset and the data available, which may include the use of quoted market prices, prices for similar assets or other valuation techniques such as discounted future cash flows or earnings. Debt Issuance Costs The Company capitalizes debt issuance costs on its senior revolving credit facility, which are included in "Other non-current assets" on the Company's consolidated balance sheets. Capitalized debt issuance costs on the Company's unsecured long-term debt are presented as a reduction to the debt outstanding on the Company's consolidated balance sheets. The unsecured long-term debt issuance costs are generally amortized utilizing the effective interest method whereas the senior revolving credit facility issuance costs are amortized utilizing the straight-line method. Amortization of debt issuance costs is included in "Interest expense" in the consolidated statements of income. Deferred Rent The Company is obligated under operating leases of property for manufacturing, finishing and distribution facilities, office space, retail stores and equipment. Rental expense relating to operating leases are recognized on a straight-line basis over the lease term after consideration of lease incentives and scheduled rent escalations beginning as of the date the Company takes physical possession or control of the property. Differences between rental expense and actual rental payments are recorded as deferred rent liabilities included in "Other accrued liabilities" and "Other long-term liabilities" on the consolidated balance sheets. Fair Value of Financial Instruments The fair values of the Company's financial instruments reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value estimates presented in this report are based on information available to the Company as of November 26, 2017 and November 27, 2016. The carrying values of cash and cash equivalents, trade receivables and short-term borrowings approximate fair value since they are short term in nature. The Company has estimated the fair value of its other financial instruments using the market and income approaches. Rabbi trust assets and forward foreign exchange contracts are carried at their fair values. The Company's debt instruments are carried at historical cost and adjusted for amortization of premiums, discounts, or deferred financing costs, foreign currency fluctuations and principal payments. Pension and Postretirement Benefits The Company has several non-contributory defined benefit retirement plans covering eligible employees. The Company also provides certain health care benefits for U.S. employees who meet age, participation and length of service requirements at retirement. In addition, the Company sponsors other retirement or post-employment plans for its foreign employees in accordance with local government programs and requirements. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations. The Company recognizes either an asset or a liability for any plan's funded status in its consolidated balance sheets. The Company measures changes in funded status using actuarial models which utilize an attribution approach that generally spreads individual events over the estimated service lives of the remaining employees in the plan. For plans where participants will not earn additional benefits by rendering future service, which includes the Company's U.S. plans, individual events are spread over the plan participants' estimated remaining lives. The Company's policy is to fund its retirement plans based upon actuarial recommendations and in accordance with applicable laws, income tax regulations and credit agreements. Net pension and postretirement benefit income or expense is generally determined using assumptions which include expected long-term rates of return on plan assets, discount rates, compensation rate increases and medical and mortality trend rates. The Company considers several factors including historical rates, expected rates and external data to determine the assumptions used in the actuarial models. At the end of 2015, the Company elected to adopt the spot-rate approach to determine the interest cost component of pension and postretirement expense. Under the spot-rate approach, the interest cost is calculated by applying interest to the discounted cash flow expected at each payment date. The interest is determined using the same spot rate along the yield curve that was used to determine the present value of the associated payment. This approach was used to recognize the expense beginning 2016. Prior to 2016, all plans with a yield curve available for discount rate setting purposes used a single weighted-average rate. Employee Incentive Compensation The Company maintains short-term and long-term employee incentive compensation plans. Provisions for employee incentive compensation are recorded in "Accrued salaries, wages and employee benefits" and "Long-term employee related benefits" on the Company's consolidated balance sheets. The Company accrues the related compensation expense over the period of the plan and changes in the liabilities for these incentive plans generally correlate with the Company's financial results and projected future financial performance. Stock-Based Compensation The Company has stock-based incentive plans which allow for the issuance of cash or equity-settled awards to certain employees and non-employee directors. The Company recognizes stock-based compensation expense for share-based awards that are classified as equity based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. The cash-settled awards are classified as liabilities and stock-based compensation expense is measured using fair value at the end of each reporting period until settlement. The Company's common stock is not listed on any established stock exchange. Accordingly, the stock's fair value on the grant date is based upon a valuation performed by an independent third-party, Evercore Group LLC ("Evercore") and approved by the Company's board of directors (the "Board"). For each reporting period, the stock's fair value is estimated based upon an internally derived valuation consistent with the Evercore valuation methodology. Determining the fair value of the Company's stock requires complex judgments. The valuation process includes comparison of the Company's historical and estimated future financial results with selected publicly-traded companies and application of a discount for the illiquidity of the stock to derive at the fair value of the stock. The Company uses this valuation for, among other things, making determinations under its stock-based compensation plans, such as the grant date fair value, redemption and intrinsic value of the awards. For stock appreciation rights that are classified as equity, the Company uses the Black-Scholes valuation model to estimate the grant date fair value, unless the awards are subject to a market condition, in which case the Company uses a Monte Carlo simulation valuation model. The grant date fair value of equity-classified restricted stock units that are not subject to a market condition, is based on the fair value of the Company's common stock on the date of grant, adjusted to reflect the absence of dividends for those awards that are not entitled to dividend equivalents. For restricted stock units that include a market condition, the Company uses a Monte Carlo simulation valuation model to estimate the grant date fair value. For share-based awards that are classified as liabilities, the fair value of the awards is estimated using the intrinsic value method, which is based on the Company's common stock fair value on each measurement date. The Black-Scholes option pricing model and the Monte Carlo simulation model require the input of highly subjective assumptions including volatility. Due to the fact that the Company's common stock is not publicly traded, the computation of expected volatility is based on the average of the historical and implied volatilities over the expected life of the awards, of a representative peer group of publicly-traded entities. Other assumptions include expected life, risk-free rate of interest and dividend yield. For equity awards with a service condition, the expected life is derived based on historical experience and expected future post-vesting termination and exercise patterns. For equity awards with a performance condition, the expected life is computed using the simplified method until historical experience is available. The risk-free interest rate is based on zero coupon U.S. Treasury bond rates corresponding to the expected life of the awards. Dividend assumptions are based on historical experience. Due to the job function of the award recipients, the Company has included stock-based compensation cost in "Selling, general and administrative expenses" in the consolidated statements of income. Self-Insurance Up to certain limits, the Company self-insures various loss exposures primarily relating to workers' compensation risk and employee and eligible retiree medical health benefits. The Company carries insurance policies covering claim exposures which exceed predefined amounts, per occurrence and/or in the aggregate. Accruals for losses are made based on the Company's claims experience and actuarial assumptions followed in the insurance industry, including provisions for incurred but not reported losses. Derivative Financial Instruments and Hedging Activities The Company recognizes all derivatives as assets and liabilities at their fair values, which are included in "Other current assets", "Other non-current assets", "Other accrued liabilities" or "Other long-term liabilities" on the Company's consolidated balance sheets. The Company uses derivatives to manage exposures that are sensitive to changes in market conditions, such as foreign currency risk. Additionally, some of the Company's contracts contain provisions that are accounted for as embedded derivative instruments. The Company does not designate its derivative instruments for hedge accounting; changes in the fair values of these instruments are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The non-derivative instruments the Company designates and that qualify for hedge accounting treatment hedge the Company's net investment position in certain of its foreign subsidiaries. For these instruments, the Company documents the hedge designation by identifying the hedging instrument, the nature of the risk being hedged and the approach for measuring hedge effectiveness. The ineffective portions of these hedges are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The effective portions of these hedges are recorded in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets and are not reclassified to earnings until the related net investment position has been liquidated. Foreign Currency The functional currency for most of the Company's foreign operations is the applicable local currency. For those operations, assets and liabilities are translated into U.S. Dollars using period-end exchange rates; income and expenses are translated at average monthly exchange rates; and equity accounts are translated at historical rates. Net changes resulting from such translations are recorded as a component of translation adjustments in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets. Foreign currency transactions are transactions denominated in a currency other than the entity's functional currency. At each balance sheet date, each entity remeasures the recorded balances related to foreign-currency transactions using the period-end exchange rate. Unrealized gains or losses arising from the remeasurement of these balances are recorded in "Other income (expense), net" in the Company's consolidated statements of income. In addition, at the settlement date of foreign currency transactions, the realized foreign currency gains or losses are recorded in "Other income (expense), net" in the Company's consolidated statements of income to reflect the difference between the rate effective at the settlement date and the historical rate at which the transaction was originally recorded. Noncontrolling Interest Noncontrolling interest includes a 16.4% minority interest of third parties in Levi Strauss Japan K.K., the Company's Japanese subsidiary. Revenue Recognition Net sales is primarily comprised of sales of products to wholesale customers, including franchised stores, and direct sales to consumers at the Company's company-operated and e-commerce stores and at the Company's company-operated shop-in-shops located within department stores. The Company recognizes revenue on sales of products when the goods are shipped or delivered and title to the goods passes to the customer provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectability is reasonably assured. The revenue is recorded net of an allowance for estimated returns, discounts and retailer promotions and other similar incentives. Licensing revenues from the use of the Company's trademarks in connection with the manufacturing, advertising, and distribution of trademarked products by third-party licensees are earned and recognized as products are sold by licensees based on royalty rates set forth in the licensing agreements. The Company recognizes allowances for estimated returns in the period in which the related sale is recorded. The Company recognizes allowances for estimated discounts, retailer promotions and other similar incentives at the later of the period in which the related sale is recorded or the period in which the sales incentive is offered to the customer. The Company estimates non-volume based allowances based on historical rates as well as customer and product-specific circumstances. Sales and value-added taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Company's consolidated statements of income. Net sales to the Company's ten largest customers totaled approximately 28%, 30% and 31% of net revenues for 2017, 2016 and 2015, respectively. No customer represented 10% or more of net revenues in any of these years. Cost of Goods Sold Cost of goods sold includes the expenses incurred to acquire and produce inventory for sale, including product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating the Company's remaining manufacturing facilities, including the related depreciation expense. Selling, General and Administrative Expenses Selling, general and administrative expenses ("SG&A") are primarily comprised of costs relating to advertising, marketing, selling, distribution, information technology and other corporate functions. Selling costs include, among other things, all occupancy costs associated with company-operated stores and with the Company's company-operated shop-in-shops located within department stores. The Company expenses advertising costs as incurred. For 2017, 2016 and 2015, total advertising expense was $323.3 million, $284.0 million and $276.4 million, respectively. Distribution costs include costs related to receiving and inspection at distribution centers, warehousing, shipping to the Company's customers, handling and certain other activities associated with the Company's distribution network. These expenses totaled $173.4 million, $168.3 million, and $159.7 million for 2017, 2016 and 2015, respectively. Changes in Accounting Principle
Recently Issued Accounting Standards The following recently issued accounting standards, all of which are FASB Accounting Standards Updates ("ASU"), have been grouped by their required effective dates for the Company: First Quarter of 2018
First Quarter of 2019
First Quarter of 2020
First Quarter of 2021
|
Property, Plant and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The components of property, plant and equipment ("PP&E") were as follows:
Depreciation expense for the years ended November 26, 2017, November 27, 2016, and November 29, 2015, was $117.4 million, $103.7 million and $99.8 million, respectively. |
Goodwill and Other Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by business segment for the years ended November 26, 2017 and November 27, 2016, were as follows:
Other intangible assets, net, were as follows:
For the years ended November 27, 2016 and November 29, 2015, amortization of these intangible assets was $0.2 million and $2.1 million, respectively. The amortization of these intangible assets in subsequent fiscal years is immaterial. As of November 26, 2017, there was no impairment to the carrying value of the Company's goodwill or non-amortized intangible assets. |
Fair Value of Financial Instruments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
_____________
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:
_____________
|
Derivative Instruments and Hedging Activities |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company's foreign currency management objective is to minimize the effect of fluctuations in foreign exchange rates on nonfunctional currency cash flows and selected assets or liabilities without exposing the Company to additional risk associated with transactions that could be regarded as speculative. Forward exchange contracts on various currencies are entered into to manage foreign currency exposures associated with certain product sourcing activities, some intercompany sales, foreign subsidiaries' royalty payments, interest payments, earnings repatriations, net investment in foreign operations and funding activities. The Company manages certain forecasted foreign currency exposures and uses a centralized currency management operation to take advantage of potential opportunities to naturally offset foreign currency exposures against each other. The Company had designated a portion of its outstanding Euro-denominated senior notes as a net investment hedge to manage foreign currency exposures in its foreign operations. The Company does not apply hedge accounting to its derivative transactions. As of November 26, 2017, the Company had forward foreign exchange contracts to buy $769.1 million and to sell $213.2 million against various foreign currencies. These contracts are at various exchange rates and expire at various dates through February 2019. The table below provides data about the carrying values of derivative instruments and non-derivative instruments:
_____________
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 and are presented accordingly. 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:
The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets, and in "Other income (expense), net" in the Company’s consolidated statements of income:
The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in "Other income (expense), net" in the Company’s consolidated statements of income:
_____________
|
Debt |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The following table presents the Company's debt:
Senior Revolving Credit Facility The Company is a party to a Second Amended and Restated Credit Agreement for a senior secured revolving credit facility. The credit facility provides for an asset-based facility, in which the borrowing availability is primarily based on the value of the U.S. Levi's® trademarks and the levels of accounts receivable and inventory in the United States and Canada, as further described below. Availability, interest and maturity. The maximum availability under the credit facility is $850.0 million, of which $800.0 million is available to the Company for revolving loans in U.S. Dollars and $50.0 million is available to the Company for revolving loans either in U.S. Dollars or Canadian Dollars. Subject to the availability under the borrowing base, the Company may make and repay borrowings from time to time until the maturity of the credit facility. The Company may make voluntary prepayments of borrowings at any time and must make mandatory prepayments if certain events occur. Of the maximum availability of $850.0 million, the U.S. Levi’s® trademarks are deemed to add the lesser of (i) $350.0 million and (ii) 65% of the net orderly liquidation value of such trademarks to the borrowing base. Upon the maturity date of May 23, 2022, all of the obligations outstanding under the credit facility become due. On May 23, 2017, the Company amended its senior secured revolving credit facility to extend the term through May 23, 2022 as noted above. The terms of the Second Amended and Restated Credit Agreement are similar to the terms under the previous version of the credit facility. The interest rate for borrowings under the credit facility was reduced from LIBOR plus 125 – 200 basis points to LIBOR plus 125 – 175 basis points, depending on borrowing base availability, and the rate for undrawn availability was reduced from 25 – 30 basis points to 20 basis points. All other terms of the original credit agreement, including, without limitation, guarantees and security, covenants, events of default, have not been materially changed as a result of the Second Amended and Restated Credit Agreement and remain in full force and effect. Costs of approximately $2.4 million associated with the amendment and restatement of the revolving credit facility, representing underwriting fees and other expenses, were capitalized and will be amortized to interest expense over the term of the facility. The Company’s unused availability under its amended and restated senior secured revolving credit facility was $758.3 million at November 26, 2017, as the Company’s total availability of $803.6 million, based on the collateral levels discussed above, was reduced by $42.7 million of stand-by letters of credit and by $2.6 million of other credit usage allocated under the facility. The Company has stand-by letters of credit with various international banks serving as guarantees to cover U.S. workers' compensation claims and the working capital requirements for certain subsidiaries, primarily India. Guarantees and security. The Company's obligations under the Second Amended and Restated Credit Agreement are guaranteed by its domestic subsidiaries. The obligations under the Second Amended and Restated Credit Agreement are secured by specified domestic assets, including certain U.S. trademarks associated with the Levi's® brand and accounts receivable, goods and inventory in the United States. Additionally, the obligations of Levi Strauss & Co. (Canada) Inc. under the credit agreement are secured by Canadian accounts receivable, goods, inventory and other Canadian assets. The lien on the U.S. Levi's® trademarks and related intellectual property may be released at the Company's discretion so long as it meets certain conditions; such release would reduce the borrowing base. Covenants. The Second Amended and Restated Credit Agreement contains customary covenants restricting the Company's activities as well as those of the Company's subsidiaries, including limitations on the ability to sell assets; engage in mergers; enter into capital leases or certain leases not in the ordinary course of business; enter into transactions involving related parties or derivatives; incur or prepay indebtedness or grant liens or negative pledges on the Company's assets; make loans or other investments; pay dividends or repurchase stock or other securities; guaranty third-party obligations; make capital expenditures; and make changes in the Company's corporate structure. There are exceptions to these covenants, and some are only applicable when unused availability falls below specified thresholds. In addition, the Second Amended and Restated Credit Agreement includes, as a financial covenant, a springing fixed charge coverage ratio of 1.0:1.0, which arises when availability falls below a specified threshold. Events of default. The Second Amended and Restated Credit Agreement contains customary events of default, including payment failures; failure to comply with covenants; failure to satisfy other obligations under the credit agreements or related documents; defaults in respect of other indebtedness; bankruptcy, insolvency and inability to pay debts when due; material judgments; pension plan terminations or specified underfunding; substantial stock ownership changes; and specified changes in the composition of the Board. The cross-default provisions in the Second Amended and Restated Credit Agreement apply if a default occurs on other indebtedness in excess of $50.0 million and the applicable grace period in respect of the indebtedness has expired, such that the lenders of or trustee for the defaulted indebtedness have the right to accelerate. If an event of default occurs under the Second Amended and Restated Credit Agreement, the lenders may terminate their commitments, declare immediately payable all borrowings under the credit facility and foreclose on the collateral. Redemption of Senior Notes due 2022 The Company issued $525.0 million in aggregate principal amount of 6.875% senior notes due 2022 (the "Senior Notes due 2022"). The Senior Notes due 2022 were tendered and redeemed in March 2017 as described in the "Issuance of Senior Notes due 2027" section below. Senior Notes due 2025 Principal, interest, and maturity. On April 27, 2015, the Company issued $500.0 million in aggregate principal amount of 5.00% senior notes due 2025 (the "Senior Notes due 2025") to qualified institutional buyers and to purchasers outside the United States, which were later exchanged for new notes in the same principal amount with substantially identical terms, except that the new notes were registered under the Securities Act of 1933, as amended (the "Securities Act"). The notes are unsecured obligations that rank equally with all of the Company’s other existing and future unsecured and unsubordinated debt. The Senior Notes due 2025 will mature on May 1, 2025. Interest on the notes is payable semi-annually in arrears on May 1 and November 1. The Company may redeem some or all of the Senior Notes due 2025 prior to May 1, 2020, at a price equal to 100% of the principal amount, plus 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 May 1, 2018, the Company may redeem up to a maximum of 40% of the original aggregate principal amount of the Senior Notes due 2025 with the proceeds of certain equity offerings at a redemption price of 105% of the principal amount of the Senior Notes due 2025, plus accrued and unpaid interest, if any, to the date of redemption. The Company recorded a discount of $13.9 million in conjunction with the issuance of the Senior Notes due 2025, related to tender and redemption premiums paid to certain holders of the Senior Notes due 2020 who participated in the issuance of the Senior Notes due 2025, which will be amortized to interest expense over the term of the notes. Costs of approximately $6.9 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 additional debt, make certain restricted payments, consummate specified asset sales, enter into transactions with affiliates, incur liens, impose restrictions on the ability of its subsidiaries to pay dividends or make payments to the Company and its restricted subsidiaries, merge or consolidate with another person, and dispose of all or substantially all of the Company’s assets or the assets of its restricted subsidiaries. The indenture provides for customary events of default (subject in certain cases to customary grace and cure periods), which include nonpayment, breach of covenants in the indenture, payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy and insolvency. Generally, if an event of default occurs, the trustee under the indenture or holders of at least 25% in principal amount of the then outstanding Senior Notes due 2025 may declare all the Senior Notes due 2025 to be due and payable immediately. 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. Issuance of Senior Notes due 2027 Principal, interest and maturity. On February 28, 2017, the Company issued €475 million in aggregate principal amount of 3.375% senior notes due 2027 (the "Senior Notes due 2027") to qualified institutional buyers and to purchasers outside the United States, which were later exchanged for new notes in the same principal amount with substantially identical terms, except that the new notes were registered under the Securities Act. The notes are unsecured obligations that rank equally with all of the Company’s other existing and future unsecured and unsubordinated debt. The Senior Notes due 2027 will mature on March 15, 2027. Interest on the notes is payable semi-annually in arrears on March 15 and September 15. At any time prior to March 15, 2020, the Company may redeem up to a maximum of 40% of the aggregate principal amount of the Senior Notes due 2027 with the proceeds of certain equity offerings at a redemption price of 103.375% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption. In addition, the Company may redeem some or all of the Senior Notes due 2027 prior to March 15, 2022, at a price equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to the date of redemption, and a "make-whole" premium; on or after 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. Costs of approximately $8.0 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 additional debt, pay dividends or make other restricted payments, consummate specified asset sales, enter into transactions with affiliates, incur liens, impose restrictions on the ability of its subsidiaries to pay dividends or make payments to the Company and its restricted subsidiaries, merge or consolidate with another person, and sell, assign, transfer, lease convey or otherwise dispose of all or substantially all of the Company’s assets or the assets of its restricted subsidiaries. The 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 2027 may declare all the Senior Notes due 2027 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. Use of Proceeds and Loss on Early Extinguishment of Debt. On March 3, 2017, the Company completed a cash tender offer for $370.3 million of the 6.875% Senior Notes due 2022 and the remaining $154.7 million was called on March 31, 2017 for redemption on May 1, 2017. The tender offer and redemption, as well as underwriting fees associated with the new issuance, were primarily funded with the proceeds from the issuance of the Senior Notes due 2027, as well as cash on hand. The Company recorded a $22.8 million loss on early extinguishment of debt. The loss includes $21.9 million of tender and call premiums on the retired debt. Short-term Borrowings Short-term borrowings consist of term loans and revolving credit facilities at various foreign subsidiaries which the Company expects to either pay over the next twelve months or refinance at the end of their applicable terms. Certain of these borrowings are guaranteed by stand-by letters of credit allocated under the Company's amended and restated senior secured revolving credit facility. Principal Payments on Debt The table below sets forth, as of November 26, 2017, the Company's required aggregate short-term and long-term debt principal payments (inclusive of premium and discount):
Interest Rates on Borrowings The Company’s weighted-average interest rate on average borrowings outstanding during 2017, 2016 and 2015 was 5.60%, 6.37% and 6.72%, respectively. The weighted-average interest rate on average borrowings outstanding includes the amortization of capitalized issuance costs, including underwriting fees and other expenses, and excludes interest on obligations to participants under deferred compensation plans. Dividends and Restrictions The terms of the indentures relating to the Company's unsecured notes and its amended and restated senior secured revolving credit facility agreement contain covenants that restrict the Company's ability to pay dividends to its stockholders. For information about the Company's dividend payments, see Note 15. As of November 26, 2017, and at the time the dividends were paid, the Company met the requirements of its debt instruments. Subsidiaries of the Company that are not wholly-owned subsidiaries and that are "restricted subsidiaries" under the Company’s indentures are permitted under the indentures to pay dividends to all stockholders either on a pro rata basis or on a basis that results in the receipt by the Company or a restricted subsidiary that is the parent of the restricted subsidiary of dividends or distributions of greater value than it would receive on a pro rata basis. The terms of the indentures relating to the Company's unsecured notes and its amended and restated senior secured revolving credit facility agreement contain covenants that restrict (in each case subject to certain exceptions) the Company or any restricted subsidiary from entering into any arrangements that would restrict the payment of dividends or of any obligation owed by the restricted subsidiary to the Company or any other restricted subsidiary, the making of any loans or advances to the Company or any other restricted subsidiary, or transferring any of its property to the Company or any other restricted subsidiary. |
Guarantees |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES Indemnification agreements. In the ordinary course of business, the Company enters into agreements containing indemnification provisions under which the Company agrees to indemnify the other party for specified claims and losses. For example, the Company's trademark license agreements, real estate leases, consulting agreements, logistics outsourcing agreements, securities purchase agreements and credit agreements typically contain such provisions. This type of indemnification provision obligates the Company to pay certain amounts associated with claims brought against the other party as the result of trademark infringement, negligence or willful misconduct of Company employees, breach of contract by the Company including inaccuracy of representations and warranties, specified lawsuits in which the Company and the other party are co-defendants, product claims and other matters. These amounts generally are not readily quantifiable; the maximum possible liability or amount of potential payments that could arise out of an indemnification claim depends entirely on the specific facts and circumstances associated with the claim. The Company has insurance coverage that minimizes the potential exposure to certain of such claims. The Company also believes that the likelihood of material payment obligations under these agreements to third parties is low. Covenants. The Company's long-term debt agreements and the Second Amended and Restated Credit Agreement contain customary covenants restricting its activities as well as those of its subsidiaries, including limitations on its and its subsidiaries' ability to sell assets; engage in mergers; enter into capital leases or certain leases not in the ordinary course of business; enter into transactions involving related parties or derivatives; incur or prepay indebtedness or grant liens or negative pledges on its assets; make loans or other investments; pay dividends or repurchase stock or other securities; guaranty third-party obligations; make capital expenditures; and make changes in its corporate structure. For additional information, see Note 6. As of November 26, 2017, the Company was in compliance with all of these covenants. |
Employee Benefit Plans |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension plans. The Company has several non-contributory defined benefit retirement plans covering eligible employees. Plan assets are invested in a diversified portfolio of securities including stocks, bonds, cash equivalents and other alternative investments including real estate investment trust funds. Benefits payable under the plans are based on years of service, final average compensation, or both. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations. Postretirement plans. The Company maintains plans that provide postretirement benefits to eligible employees, principally health care, to substantially all U.S. retirees and their qualified dependents. These plans were established with the intention that they would continue indefinitely. However, the Company retains the right to amend, curtail or discontinue any aspect of the plans at any time. The plans are contributory and contain certain cost-sharing features, such as deductibles and coinsurance. The Company's policy is to fund postretirement benefits as claims and premiums are paid. The following tables summarize activity of the Company's defined benefit pension plans and postretirement benefit plans:
_____________
Amounts recognized in the Company's consolidated balance sheets as of November 26, 2017 and November 27, 2016, consist of the following:
The accumulated benefit obligation for all defined benefit plans was $1.2 billion at both November 26, 2017 and November 27, 2016. Information for the Company's defined benefit plans with an accumulated or projected benefit obligation in excess of plan assets is as follows:
The components of the Company's net periodic benefit cost were as follows:
_____________
The amounts that will be amortized from "Accumulated other comprehensive loss" into net periodic benefit cost in 2018 for the Company's defined benefit pension and postretirement benefit plans are expected to be $12.5 million and $0.9 million, respectively. Assumptions used in accounting for the Company's benefit plans were as follows:
For the Company's U.S. benefit plans, the discount rate used to determine the present value of the future pension and postretirement plan obligations was based on a yield curve constructed from a portfolio of high quality corporate bonds with various maturities. Each year's expected future benefit payments are discounted to their present value at the appropriate yield curve rate, thereby generating the overall discount rate. The Company utilized a variety of country-specific third-party bond indices to determine the appropriate discount rates to use for the benefit plans of its foreign subsidiaries. The Company bases the overall expected long-term rate of return on assets on anticipated long-term returns of individual asset classes and each pension plans' target asset allocation strategy based on current economic conditions. For the U.S. pension plan, the expected long-term returns for each asset class are determined through a mean-variance model to estimate 20-year returns for the plan. Health care cost trend rate assumptions are not a significant input in the calculation of the amounts reported for the Company's postretirement benefits plans. A one percentage-point change in assumed health care cost trend rates would have no significant effect on the total service and interest cost components or on the postretirement benefit obligation. Consolidated pension plan assets relate primarily to the U.S. pension plan. The Company utilizes the services of independent third-party investment managers to oversee the management of U.S. pension plan assets. The Company's investment strategy is to invest plan assets in a diversified portfolio of domestic and international equity securities, fixed income securities and real estate and other alternative investments with the objective of generating long-term growth in plan assets at a reasonable level of risk. Prohibited investments for the U.S. pension plan include certain privately placed or other non-marketable debt instruments, letter stock, commodities or commodity contracts and derivatives of mortgage-backed securities, such as interest-only, principal-only or inverse floaters. The current target allocation percentages for the Company's U.S. pension plan assets are 50% for equity securities and real estate with an allowable deviation of plus or minus 8% and 50% for fixed income securities with an allowable deviation of plus or minus 8%. The fair value of the Company's pension plan assets by asset class are as follows:
_____________
The fair value of plan assets are composed of U.S. plan assets of $775.9 million and non-U.S. plan assets of $172.8 million. The fair values of the substantial majority of the equity, fixed income and real estate investments are based on the net asset value of commingled trust funds that passively track various market indices. The Company's estimated future benefit payments to participants, which reflect expected future service, as appropriate are anticipated to be paid as follows:
At November 26, 2017, the Company's contributions to its pension plans in 2018 were estimated to be approximately $94.7 million. |
Employee Investment Plans |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Disclosure of Employee Investment Plans [Abstract] | |
EMPLOYEE INVESTMENT PLANS | EMPLOYEE INVESTMENT PLANS The Company's Employee Savings and Investment Plan ("ESIP") is a qualified plan that covers eligible home office employees. The Company matches 125% of ESIP participant's contributions to all funds maintained under the qualified plan up to the first 6.0% of eligible compensation. Total amounts charged to expense for the Company's employee investment plans for the years ended November 26, 2017, November 27, 2016 and November 29, 2015, were $13.4 million, $12.0 million and $11.5 million, respectively. |
Employee Incentive Compensation Plans |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Schedule of Employee Incentive Compensation Plan [Abstract] | |
EMPLOYEE INCENTIVE COMPENSATION PLANS | EMPLOYEE INCENTIVE COMPENSATION PLANS Annual Incentive Plan The Annual Incentive Plan ("AIP") provides a cash bonus that is earned based upon the Company's business unit and consolidated financial results as measured against pre-established internal targets and upon the performance and job level of the individual. Total amounts charged to expense for this plan for the years ended November 26, 2017, November 27, 2016, and November 29, 2015 were $88.0 million, $68.3 million and $65.7 million, respectively. Total amounts accrued for this plan as of November 26, 2017, and November 27, 2016 were $85.4 million and $68.5 million, respectively. The increase in the amounts charged to expense and liability balance in comparison to prior year reflects improved achievement against the internal targets. Long-Term Incentive Plans 2016 Equity Incentive Plan ("EIP"). In July 2006, the Board adopted, and the stockholders approved, the EIP. The EIP was subsequently amended in 2011 and 2014 and then amended and restated by the Board of Directors and approved by the stockholders in April 2016. For more information on this plan, see Note 11. Cash Long-Term Incentive Plan ("LTIP"). The Company established a long-term cash incentive plan effective at the beginning of 2005. In 2017, this program was replaced by cash-settled phantom restricted stock units. Refer to Note 11 for more information. Executive officers are not participants in this plan. Performance will be measured at the end of a three-year period based on the Company's performance against the following pre-established targets: (i) the target compound annual growth rate in the Company's net revenues over the three-year period; (ii) the Company's average margin of net earnings over the three-year period adjusted for certain items such as interest and taxes and total shareholder return over the three-year period relative to an expanded peer group. Awards will be paid out in the quarter following the end of the three-year period based on Company performance against the pre-established targets. The Company recorded expense for the LTIP of $4.5 million, $4.9 million and $4.3 million for the years ended November 26, 2017, November 27, 2016 and November 29, 2015, respectively. As of November 26, 2017 and November 27, 2016, the Company had accrued a total of $10.6 million and $10.2 million, respectively, for the LTIP. |
Stock-Based Incentive Compensation Plans |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED INCENTIVE COMPENSATION PLANS | STOCK-BASED INCENTIVE COMPENSATION PLANS The Company recognized stock-based compensation expense of $57.1 million, $20.3 million and $25.6 million, and related income tax benefits of $22.0 million, $7.8 million and $9.8 million, respectively, for the years ended November 26, 2017, November 27, 2016 and November 29, 2015, respectively. As of November 26, 2017, there was $48.1 million of total unrecognized compensation cost related to unvested equity and liability awards, which cost is expected to be recognized over a weighted-average period of 1.76 years. No stock-based compensation cost has been capitalized in the accompanying consolidated financial statements. For the year ended November 26, 2017, the Company's results include an out-of-period adjustment, which increased selling, general and administrative expenses by approximately $8.3 million and decreased net income by $5.1 million. This item, which originated in prior years, relates to the correction of the periods used for the recognition of stock-based compensation expense associated with employees eligible to vest awards after retirement. 2016 Equity Incentive Plan Under the Company's EIP, a variety of stock awards, including stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights ("SARs") and cash or equity settled awards may be granted. The aggregate number of shares of common stock authorized for issuance under the EIP is 8,000,000 shares. At November 26, 2017, the number of shares available for issuance is 3,253,994 shares. Under the EIP, stock awards have a maximum contractual term of seven years and generally must have an exercise price at least equal to the fair market value of the Company's common stock on the grant date. Awards generally vest according to terms determined at the time of grant, or as otherwise determined by the Board in its discretion. Upon the exercise of a stock-settled SAR, the participant will receive shares of common stock. The number of shares of common stock issued per SAR unit exercised is equal to (i) the excess of the per-share fair market value of the Company's common stock on the date of exercise over the exercise price of the SAR, divided by (ii) the per-share fair market value of the Company's common stock on the date of exercise. Effective 2017, stock-settled RSUs which include service or performance conditions were issued to certain employees. Each recipient's vested RSUs are converted to a share of common stock within 30 days of vesting. These RSUs do not have "dividend equivalent rights". Non-employee members of the Board of Directors receive RSUs annually. Each recipient's vested RSUs are converted to a share of common stock six months after their discontinuation of service with the Company. The RSUs additionally have "dividend equivalent rights" of which dividends paid by the Company on its common stock are credited by the equivalent addition of RSUs. Shares of common stock will be issued from the Company's authorized but unissued shares and are subject to the Stockholders Agreement that governs all shares. Shares of common stock issued under the EIP contain certain repurchase rights, which may be exercised only with respect to shares of the Company's common stock that have been held by a participant for at least six months following their issuance date. The holder is exposed to the risk and rewards of ownership for a reasonable period of time. Accordingly, the SARs and RSUs are classified as equity awards. Stock-based awards settled in cash are classified as liability awards and based on expected vesting, included as a components of "Accrued salaries, wages and employee benefits" or "Other long-term liabilities" on the accompanying consolidated balance sheets. Temporary equity. Equity-classified stock-based awards that may be settled in cash at the option of the holder are presented on the balance sheet outside of permanent equity. Accordingly, "temporary equity" on the accompanying consolidated balance sheets includes the redemption value of these awards generally related to the elapsed service period since the grant date reflecting patterns of compensation cost recognition, as well as the fair value of the common stock issued pursuant to the EIP. The increase in temporary equity from the year ended November 27, 2016 to November 26, 2017 was primarily due to an appreciation in the fair value of the Company's common stock price and additional compensation cost recognition for awards. Equity Awards SARs. The Company grants SARs, which include service or performance conditions, to a small group of the Company's senior executives. SARs with service conditions ("Service SARs") vest from three-and-a-half to four years, and have maximum contractual lives of seven years. SARs with performance conditions ("Performance SARs") vest at varying unit amounts, up to 150% of those awarded, based on the attainment of certain three-year cumulative performance goals and have maximum contractual lives of seven years. The Company did not grant Performance SARs in 2017. SARs activity during the year ended November 26, 2017 was as follows:
The aggregate intrinsic values are calculated as the difference between the exercise price of the underlying SARs and the fair value of the Company's common stock that were in-the-money at that date.
Unrecognized future compensation costs as of November 26, 2017 of $5.9 million for Service SARs and $1.8 million for Performance SARs are expected to be recognized over weighted-average periods of 2.13 years and 1.08 years, respectively. The Company believes it is probable that the performance-based SARs will vest. The weighted-average grant date fair value of SARs was estimated using the Black-Scholes option valuation model, unless the awards were subject to market conditions, in which case the Company utilized the Monte Carlo simulation model. The weighted-average grant date fair values and corresponding weighted-average assumptions used in the Black-Scholes option valuation model were as follows:
The weighted-average grant date fair value of SARs subject to market conditions was estimated using a Monte Carlo simulation model. The weighted-average grant date fair values and corresponding weighted-average assumptions used in the model were as follows:
Service and Performance RSUs. The Company grants RSUs, which include service or performance conditions, to a small group of the Company's senior executives. RSUs with service conditions ("Service RSUs) vest in three years. RSUs with performance conditions ("Performance RSUs") vest at varying unit amounts, up to 200% of those awarded, based on the attainment of certain three-year cumulative performance goals. Service and Performance RSU activity during the year ended November 26, 2017 was as follows:
Unrecognized future compensation cost as of November 26, 2017 of $1.3 million for Service RSUs and $2.9 million for Performance RSUs are expected to be recognized over a weighted-average period of 1.55 years and 1.55 years, respectively. The Company estimated the grant date fair value of Service and Performance RSUs using the Evercore stock valuation, unless the awards were subject to market conditions, in which case the Company utilized the Monte Carlo simulation model. The weighted-average grant date fair value for both Service RSUs and Performance RSUs granted without a market condition during 2017 was $64.86. The weighted-average grant date fair value and corresponding weighted-average assumptions used in the Monte Carlo valuation model were as follows:
RSUs to the Board of Directors. The Company grants RSUs to certain members of its Board ("Board RSUs"). The total fair value of Board RSUs granted to during the year ended November 26, 2017 of $1.6 million was estimated using the fair value of the Company's common stock. The total fair value of RSUs outstanding, vested and expected to vest as of November 26, 2017 was $6.5 million. Board RSUs vest in a series of three equal installments at thirteen months, twenty-four months and thirty-six months following the date of grant. However, if the recipient's continuous service terminates for a reason other than cause after the first vesting installment, but prior to full vesting, then the remaining unvested portion of the award becomes fully vested as of the date of such termination. Liability Awards The Company grants cash settled phantom restricted stock units, which include service or performance conditions, to select levels of the Company’s management. Upon vesting of a phantom restricted stock unit, the participant will receive a cash payout in an amount equal to the vested units multiplied by the fair value of the Company’s common stock at the end of the service or performance period. Phantom restricted stock units with service conditions ("Phantom Service RSUs") granted during 2017 vest in three years. For Phantom Service RSUs prior to 2017, the actual number of Phantom Service RSUs to vest is subject to a minimum and maximum, based on the fair value of the common stock at the end of the three-year performance period. Phantom restricted stock units with performance conditions ("Phantom Performance RSUs") vest at varying unit amounts, up to 200% of those awarded, based on attainment of certain three-year cumulative performance goals. Liability award activity during the year ended November 26, 2017 was as follows:
The total fair value of Phantom Service RSU awards vested during 2017 and 2016 was $9.2 million and $15.8 million. The weighted-average fair value of Phantom Service RSUs at the grant date was estimated based on the fair value of the Company's common stock. The Company accrued for $41.0 million of Phantom Service RSUs and Phantom Performance RSUs as of November 26, 2017. Unrecognized future compensation cost as of November 26, 2017 of $31.0 million for Phantom Service RSUs and $5.4 million for Phantom Performance RSUs are expected to be recognized over a weighted-average period of 1.71 years and 2.03 years, respectively. The Company believes it is probable that the liability awards will vest. |
Long-Term Employee Related Benefits |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Compensation Related Costs [Abstract] | |
LONG-TERM EMPLOYEE RELATED BENEFITS | LONG-TERM EMPLOYEE RELATED BENEFITS Long-term employee-related benefit liabilities primarily consist of the Company's liabilities for its deferred compensation plans. Deferred compensation plan for executives and outside directors, established January 1, 2003. The Company has a non-qualified deferred compensation plan for executives and outside directors that was established on January 1, 2003 and amended thereafter. The deferred compensation plan obligations are payable in cash upon retirement, termination of employment and/or certain other times in a lump-sum distribution or in installments, as elected by the participant in accordance with the plan. As of November 26, 2017 and November 27, 2016, these plan liabilities totaled $29.4 million and $23.6 million. The Company held funds of approximately $31.1 million and $27.1 million in an irrevocable grantor's rabbi trust as of November 26, 2017 and November 27, 2016, respectively, related to this plan. Rabbi trust assets are classified as available-for-sale marketable securities and are included in "Other current assets" or "Other non-current assets" on the Company's consolidated balance sheets. Unrealized gains and losses on these marketable securities are reported as a separate component of stockholders' equity and included in AOCI on the Company's consolidated balance sheets. Deferred compensation plan for executives, prior to January 1, 2003. The Company also maintains a non-qualified deferred compensation plan for certain management employees relating to compensation deferrals for the period prior to January 1, 2003. The rabbi trust is not a feature of this plan. As of November 26, 2017 and November 27, 2016, liabilities for this plan totaled $31.8 million and $32.2 million, respectively. Interest earned by the participants in deferred compensation plans was $8.1 million, $2.5 million and $1.9 million for the years ended November 26, 2017, November 27, 2016 and November 29, 2015, respectively. The charges were included in "interest expense" in the Company's consolidated statements of income. |
Restructuring |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In 2016, the Company completed a global productivity initiative designed to streamline operations and fuel long-term profitable growth. The Company does not anticipate any significant additional costs associated with the global productivity initiative. For the years ended November 27, 2016 and November 29, 2015, the Company recognized net restructuring charges of $0.3 million and $14.1 million, respectively, and related charges of $7.2 million and $30.7 million, respectively. The net restructuring charges were recorded in "Restructuring, net" in the Company's consolidated statements of income. The related charges, which consist primarily of consulting fees for the Company's centrally-led cost-savings, productivity projects and transition-related projects, represented costs incurred associated with ongoing operations and thus were recorded in "Selling, general and administrative expenses" in the Company's consolidated statements of income. |
Commitments and Contingencies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Lease Commitments The Company is obligated under operating leases for manufacturing, finishing and distribution facilities, office space, retail stores and equipment. At November 26, 2017, obligations for future minimum payments under operating leases were as follows:
In general, leases relating to real estate may include renewal options of various length. The San Francisco headquarters office lease contains multiple renewal options of up to 57 years. Rental expense for the years ended November 26, 2017, November 27, 2016 and November 29, 2015 was $220.2 million, $204.6 million and $192.5 million, respectively. Forward Foreign Exchange Contracts The Company uses over-the-counter derivative instruments to manage its exposure to foreign currencies. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the forward foreign exchange contracts. However, the Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. See Note 5 for additional information. Other Contingencies Litigation. In the ordinary course of business, the Company has various pending cases involving contractual matters, facility and employee-related matters, distribution matters, product liability claims, trademark infringement and other matters. The Company does not believe any of these pending legal proceedings will have a material impact on its financial condition, results of operations or cash flows. |
Dividend |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Dividends [Abstract] | |
DIVIDEND | DIVIDEND The Company paid cash dividends totaling $70 million on our common stock in two $35 million installments in the second and fourth quarters of 2017, and cash dividends of $60 million and $50 million in the second quarter of 2016 and 2015, respectively. Subsequent to the Company's year end, the Company's Board of Directors declared a cash dividend of $90 million, payable in two $45 million installments. The Company expects to pay the first installment in the first quarter of 2018 and the second installment in the fourth quarter of 2018. The Company does not have an established annual dividend policy. The Company will continue to review its ability to pay cash dividends at least annually, and dividends may be declared at the discretion of the Board depending upon, among other factors, the Company's financial condition and compliance with the terms of the Company's debt agreements. |
Accumulated Other Comprehensive Loss |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive income (loss) is summarized below:
No material amounts were reclassified out of "Accumulated other comprehensive loss" into net income other than those that pertain to the Company's pension and postretirement benefit plans. See Note 8 for additional information. These amounts are included in "Selling, general and administrative expenses" in the Company's consolidated statements of income. |
Other Income (Expense), Net |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET The following table summarizes significant components of "Other income (expense), net":
_____________
|
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The Company's income tax expense was $64.2 million, $116.1 million and $100.5 million and the Company's effective income tax rate was 18.4%, 28.5% and 32.4% for the years ended November 26, 2017, November 27, 2016 and November 29, 2015, respectively. Subsequent to November 26, 2017, the Tax Cuts and Jobs Act was enacted, and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% and a deemed repatriation of foreign earnings. See Note 22 for more information. The decrease in the effective tax rate in 2017 as compared to 2016 was primarily due to additional net foreign tax credits from repatriations from foreign operations as compared to 2016 and release of valuation allowances on deferred tax assets of foreign subsidiaries, primarily Japan. The decrease in effective income tax rate in 2016 as compared to 2015 is primarily due to a favorable impact of foreign operations as compared to 2015. The Company's income tax expense differed from the amount computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes as follows:
Impact of foreign operations. The tax rate benefit is due to $32.0 million impact resulting from favorable mix of earnings in jurisdictions with lower effective tax rates and $18.6 million from repatriation of foreign earnings in 2017. The tax rate benefit in 2016 is primarily due to favorable mix of earnings in jurisdictions with lower effective tax rates and a lower amount of foreign losses with no tax benefit in 2016 as compared to 2015. Release of Valuation Allowance. The $9.6 million tax benefit in 2017 is primarily due to the release of valuation allowances on deferred tax assets of certain foreign subsidiaries, primarily in Japan where management concluded that it is more likely than not that such assets will be realized. Reassessment of tax liabilities. The $5.6 million tax benefit is primarily attributable to the remeasurement of a tax position and the lapse of statutes of limitations in various jurisdictions in 2017. The $2.4 million tax benefit is primarily attributable to the lapse of statutes of limitations in various jurisdictions in 2016. Deduction related to subsidiaries. In 2016, the $6.8 million benefit is primarily related to a discrete tax benefit attributable to deductions for worthless debts in a consolidated subsidiary. The U.S. and foreign components of income before income taxes were as follows:
Income tax expense consisted of the following:
Deferred Tax Assets and Liabilities The Company's deferred tax assets and deferred tax liabilities were as follows:
Foreign tax credit carryforwards. The foreign tax credit carryforwards at November 26, 2017, are subject to expiration through 2023 if not utilized. Foreign net operating loss carryforwards. As of November 26, 2017, the Company had a deferred tax asset of $59.2 million for foreign net operating loss carryforwards of $213.7 million. Approximately $111.9 million of these operating losses are subject to expiration through 2026. The remaining $101.8 million are available as indefinite carryforwards under applicable tax law. Valuation Allowance. The following table details the changes in valuation allowance during the year ended November 26, 2017:
At November 26, 2017, the Company's valuation allowance primarily related to its gross deferred tax assets for state and foreign net operating loss carryforwards, which reduced such assets to the amount that will more likely than not be realized. The $19.3 million release during 2017 was attributable to the release of valuation allowances on deferred tax assets, primarily in Japan and Sweden. Unremitted earnings of certain foreign subsidiaries. For the year ended November 26, 2017, management asserted indefinite reinvestment on $264 million of undistributed foreign earnings, as management determined that this amount is required to meet ongoing working capital needs in certain foreign subsidiaries; no U.S. income taxes have been provided for such earnings. This is an increase versus the prior year which reflects management's broader approach considering the realignment of the foreign subsidiary ownership structure. If the Company were to repatriate such foreign earnings to the United States, the deferred tax liability associated with such earnings would have been approximately $70 million. Uncertain Income Tax Positions As of November 26, 2017, the Company’s total gross amount of unrecognized tax benefits was $33.8 million, of which $28.1 million could impact the effective tax rate, if recognized, as compared to November 27, 2016, when the Company’s total gross amount of unrecognized tax benefits was $29.1 million, of which $21.7 million could have impacted the effective tax rate, if recognized. The following table reflects the changes to the Company's unrecognized tax benefits for the year ended November 26, 2017 and November 27, 2016:
The Company believes that it is reasonably possible that unrecognized tax benefits could decrease within the next twelve months by as much as $2.4 million due to the lapse of statutes of limitations. As of November 26, 2017, and November 27, 2016, accrued interest and penalties primarily relating to non-U.S. jurisdictions were $2.5 million and $4.1 million, respectively. The Company files income tax returns in the United States and in various foreign (including Belgium, Hong Kong and Mexico), state and local jurisdictions. With few exceptions, examinations have been completed by tax authorities or the statute of limitations has expired for United States federal, foreign, state and local income tax returns filed by the Company for years through 2008. |
Related Parties |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES Charles V. Bergh, President and Chief Executive Officer, Peter E. Haas Jr., a director of the Company, Kelly McGinnis, Senior Vice President of Corporate Affairs and Chief Communications Officer, and Elizabeth O'Neill, Senior Vice President and Chief Supply Chain Officer, are board members of the Levi Strauss Foundation, which is not a consolidated entity of the Company. Seth R. Jaffe, Senior Vice President and General Counsel, is Vice President of the Levi Strauss Foundation. During 2017, 2016, and 2015, the Company donated $7.3 million, $6.9 million, and $7.0 million, respectively, to the Levi Strauss Foundation. |
Business Segment Information |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company manages its business according to three regional segments: the Americas, Europe and Asia. The Company considers its chief executive officer to be the Company’s chief operating decision maker. The Company’s chief operating decision maker manages business operations, evaluates performance and allocates resources based on the regional segments’ net revenues and operating income. The Company reports net trade receivables and inventories by segment as that information is used by the chief operating decision maker in assessing segment performance. The Company does not report its other assets by segment as that information is not used by the chief operating decision maker in assessing segment performance. Effective as of the beginning of 2017, certain of the Company's global expenses that support all regional segments, including global e-commerce infrastructure and global brand merchandising, marketing and design, previously recorded centrally in the Americas region segment and Corporate expenses, are now allocated to the three regional business segments, and reported in operating results. Business segment information for the prior-year periods have been revised to reflect the change in presentation. Business segment information for the Company is as follows:
_____________
Geographic information for the Company was as follows:
|
Quarterly Financial Data (Unaudited) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Set forth below are the consolidated statements of operations for the first, second, third and fourth quarters of 2017 and 2016.
_____________
|
Subsequent Events |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to November 26, 2017, the Tax Cuts and Jobs Act was enacted in the U.S. and includes, among other items, a reduction in the federal corporate income tax rate from 35% to 21% and a deemed repatriation of foreign earnings. The Company is in the process of evaluating the impact of the recently enacted law on its consolidated financial statements. The preliminary impact of these items, which only include the transitional impact and do not include estimates of the on-going impact of the lower U.S. statutory rate, is estimated to be in the range of $110 million to $160 million. The transition charge will be reflected in the financial statements for the period ending February 25, 2018. For more information on the Company's income taxes, refer to Note 18. |
Schedule II: Valuation and Qualifying Acounts |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts |
_____________
|
Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Basis of accounting | The consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries are prepared in conformity with generally accepted accounting principles in the United States ("U.S. GAAP"). All significant intercompany balances and transactions have been eliminated. The Company is privately held primarily by descendants of the family of its founder, Levi Strauss, and their relatives. |
||||||||||||||||||||||||||||||||||||||||
Fiscal period | The Company’s fiscal year ends on the last Sunday of November in each year, although the fiscal years of certain foreign subsidiaries end on November 30. Fiscal 2017, 2016 and 2015 were 52-week years, ending on November 26, 2017, November 27, 2016 and November 29, 2015, respectively. Each quarter of fiscal years 2017, 2016 and 2015 consists of 13 weeks. All references to years relate to fiscal years rather than calendar years. |
||||||||||||||||||||||||||||||||||||||||
Subsequent events | Subsequent events have been evaluated through the issuance date of these financial statements. |
||||||||||||||||||||||||||||||||||||||||
Use of estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. |
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at fair value. |
||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | The Company extends credit to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. The Company estimates the allowance for doubtful accounts based upon an analysis of the aging of accounts receivable at the date of the consolidated financial statements, assessments of collectability based on historic trends, customer-specific circumstances, and an evaluation of economic conditions. Actual write-off of receivables may differ from estimates due to changes in customer and economic circumstances. |
||||||||||||||||||||||||||||||||||||||||
Inventory valuation | The Company values inventories at the lower of cost or market value. Inventory cost is determined using the first-in first-out method. The Company includes product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating its remaining manufacturing facilities, including the related depreciation expense, in the cost of inventories. The Company estimates quantities of slow-moving and obsolete inventory, by reviewing on-hand quantities, outstanding purchase obligations and forecasted sales. The Company determines inventory market values by estimating expected selling prices based on the Company's historical recovery rates for slow-moving and obsolete inventory and other factors, such as market conditions, expected channel of distribution and current consumer preferences. |
||||||||||||||||||||||||||||||||||||||||
Income tax assets and liabilities | The future effective tax rate will ultimately depend on the mix of earnings between domestic and foreign operations, the impact of certain undistributed foreign earnings for which no U.S. taxes have been provided because such earnings are planned to be indefinitely reinvested outside of the United States, changes in tax laws and regulations and potential resolutions on tax examinations, refund claims and litigation. Remittances of foreign earnings to the United States are planned based on projected cash flow, working capital and investment needs of our foreign and domestic operations. Based on these assumptions, the Company estimates the amount that will be distributed to the United States and provides U.S. federal taxes on these amounts. Material changes in the Company's estimates as to how much of the Company's foreign earnings will be distributed to the United States or tax legislation that limits or restricts the amount of undistributed foreign earnings that the Company considers indefinitely reinvested outside the United States could materially impact the Company's income tax provision and effective tax rate. Significant judgment is required in determining the Company's worldwide income tax provision. In the ordinary course of a global business, there are many transactions and calculations where the ultimate tax outcome is uncertain. Some of these uncertainties arise from examinations in various jurisdictions and assumptions and estimates used in evaluating the need for valuation allowances. The Company is subject to income taxes in both the United States and numerous foreign jurisdictions. The Company computes its provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carryforwards. All deferred income taxes are classified as non-current on the Company's consolidated balance sheets. Deferred tax assets and liabilities are measured using the currently enacted tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. Significant judgments are required in order to determine the realizability of these deferred tax assets. In assessing the need for a valuation allowance, the Company's management evaluates all significant available positive and negative evidence, including historical operating results, estimates of future taxable income and the existence of prudent and feasible tax planning strategies. The Company continuously reviews issues raised in connection with all ongoing examinations and open tax years to evaluate the adequacy of its tax liabilities. The Company evaluates uncertain tax positions under a two-step approach. The first step is to evaluate the uncertain tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination based on its technical merits. The second step, for those positions that meet the recognition criteria, is to measure the tax benefit as the largest amount that is more than fifty percent likely to be realized. The Company believes that its recorded tax liabilities are adequate to cover all open tax years based on its assessment. This assessment relies on estimates and assumptions and involves significant judgments about future events. To the extent that the Company's view as to the outcome of these matters change, the Company will adjust income tax expense in the period in which such determination is made. The Company classifies interest and penalties related to income taxes as income tax expense. |
||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | Property, plant and equipment are carried at cost, less accumulated depreciation. The cost is depreciated on a straight-line basis over the estimated useful lives of the related assets. Costs relating to internal-use software development are capitalized when incurred during the application development phase. Buildings are depreciated over 20 to 40 years, and leasehold improvements are depreciated over the lesser of the life of the improvement or the initial lease term. Buildings and leasehold improvements includes build-to-suit assets related to the construction of a building or leasehold improvement (generally on property owned by the landlord) when the Company concludes it has substantially all of the risks of ownership during construction of a leased property and therefore is deemed the owner of the project. The related financing obligation is recorded in "other accrued liabilities". Machinery and equipment includes furniture and fixtures, automobiles and trucks, and networking communication equipment, and is depreciated over a range from three to 20 years. Capitalized internal-use software is depreciated over periods ranging from three to seven years. |
||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill resulted primarily from a 1985 acquisition of the Company by Levi Strauss Associates Inc., a former parent company that was subsequently merged into the Company in 1996, and the Company's 2009 acquisitions. Goodwill is not amortized. Intangible assets are comprised of owned trademarks with indefinite useful lives which are not being amortized and acquired contractual rights. Impairment The Company reviews its goodwill and other non-amortized intangible assets for impairment annually in the fourth quarter of its fiscal year, or more frequently as warranted by events or changes in circumstances which indicate that the carrying amount may not be recoverable. The Company qualitatively assesses goodwill and non-amortized intangible assets to determine whether it is more likely than not that the fair value of a reporting unit or other non-amortized intangible asset is less than its carrying amount. During fiscal 2017, the Company performed this analysis examining key events and circumstances affecting fair value and determined it is more likely than not that the reporting unit's fair value is greater than its carrying amount. As such, no further analysis was required for purposes of testing of the Company’s goodwill or other non-amortized intangible asset for impairment. If goodwill is not qualitatively assessed or if goodwill is qualitatively assessed and it is determined it is not more likely than not that the reporting unit's fair value is greater than its carrying amount, a two-step quantitative approach is utilized. In the first step, the Company compares the carrying value of the reporting unit or applicable asset to its fair value, which the Company estimates using a discounted cash flow analysis or by comparison with the market values of similar assets. If the carrying amount of the reporting unit or asset exceeds its estimated fair value, the Company performs the second step, and determines the impairment loss, if any, as the excess of the carrying value of the goodwill or intangible asset over its fair value. The Company reviews its other long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds the expected future undiscounted cash flows, the Company measures and records an impairment loss for the excess of the carrying value of the asset over its fair value. To determine the fair value of impaired assets, the Company utilizes the valuation technique or techniques deemed most appropriate based on the nature of the impaired asset and the data available, which may include the use of quoted market prices, prices for similar assets or other valuation techniques such as discounted future cash flows or earnings. |
||||||||||||||||||||||||||||||||||||||||
Debt issuance costs | The Company capitalizes debt issuance costs on its senior revolving credit facility, which are included in "Other non-current assets" on the Company's consolidated balance sheets. Capitalized debt issuance costs on the Company's unsecured long-term debt are presented as a reduction to the debt outstanding on the Company's consolidated balance sheets. The unsecured long-term debt issuance costs are generally amortized utilizing the effective interest method whereas the senior revolving credit facility issuance costs are amortized utilizing the straight-line method. Amortization of debt issuance costs is included in "Interest expense" in the consolidated statements of income. |
||||||||||||||||||||||||||||||||||||||||
Deferred rent | The Company is obligated under operating leases of property for manufacturing, finishing and distribution facilities, office space, retail stores and equipment. Rental expense relating to operating leases are recognized on a straight-line basis over the lease term after consideration of lease incentives and scheduled rent escalations beginning as of the date the Company takes physical possession or control of the property. Differences between rental expense and actual rental payments are recorded as deferred rent liabilities included in "Other accrued liabilities" and "Other long-term liabilities" on the consolidated balance sheets. |
||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | The fair values of the Company's financial instruments reflect the amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value estimates presented in this report are based on information available to the Company as of November 26, 2017 and November 27, 2016. The carrying values of cash and cash equivalents, trade receivables and short-term borrowings approximate fair value since they are short term in nature. The Company has estimated the fair value of its other financial instruments using the market and income approaches. Rabbi trust assets and forward foreign exchange contracts are carried at their fair values. The Company's debt instruments are carried at historical cost and adjusted for amortization of premiums, discounts, or deferred financing costs, foreign currency fluctuations and principal payments. |
||||||||||||||||||||||||||||||||||||||||
Pension and postretirement benefits | The Company has several non-contributory defined benefit retirement plans covering eligible employees. The Company also provides certain health care benefits for U.S. employees who meet age, participation and length of service requirements at retirement. In addition, the Company sponsors other retirement or post-employment plans for its foreign employees in accordance with local government programs and requirements. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations. The Company recognizes either an asset or a liability for any plan's funded status in its consolidated balance sheets. The Company measures changes in funded status using actuarial models which utilize an attribution approach that generally spreads individual events over the estimated service lives of the remaining employees in the plan. For plans where participants will not earn additional benefits by rendering future service, which includes the Company's U.S. plans, individual events are spread over the plan participants' estimated remaining lives. The Company's policy is to fund its retirement plans based upon actuarial recommendations and in accordance with applicable laws, income tax regulations and credit agreements. Net pension and postretirement benefit income or expense is generally determined using assumptions which include expected long-term rates of return on plan assets, discount rates, compensation rate increases and medical and mortality trend rates. The Company considers several factors including historical rates, expected rates and external data to determine the assumptions used in the actuarial models. At the end of 2015, the Company elected to adopt the spot-rate approach to determine the interest cost component of pension and postretirement expense. Under the spot-rate approach, the interest cost is calculated by applying interest to the discounted cash flow expected at each payment date. The interest is determined using the same spot rate along the yield curve that was used to determine the present value of the associated payment. This approach was used to recognize the expense beginning 2016. Prior to 2016, all plans with a yield curve available for discount rate setting purposes used a single weighted-average rate. |
||||||||||||||||||||||||||||||||||||||||
Employee incentive compensation | The Company maintains short-term and long-term employee incentive compensation plans. Provisions for employee incentive compensation are recorded in "Accrued salaries, wages and employee benefits" and "Long-term employee related benefits" on the Company's consolidated balance sheets. The Company accrues the related compensation expense over the period of the plan and changes in the liabilities for these incentive plans generally correlate with the Company's financial results and projected future financial performance. |
||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | The Company has stock-based incentive plans which allow for the issuance of cash or equity-settled awards to certain employees and non-employee directors. The Company recognizes stock-based compensation expense for share-based awards that are classified as equity based on the grant date fair value of the awards over the requisite service period, adjusted for estimated forfeitures. The cash-settled awards are classified as liabilities and stock-based compensation expense is measured using fair value at the end of each reporting period until settlement. The Company's common stock is not listed on any established stock exchange. Accordingly, the stock's fair value on the grant date is based upon a valuation performed by an independent third-party, Evercore Group LLC ("Evercore") and approved by the Company's board of directors (the "Board"). For each reporting period, the stock's fair value is estimated based upon an internally derived valuation consistent with the Evercore valuation methodology. Determining the fair value of the Company's stock requires complex judgments. The valuation process includes comparison of the Company's historical and estimated future financial results with selected publicly-traded companies and application of a discount for the illiquidity of the stock to derive at the fair value of the stock. The Company uses this valuation for, among other things, making determinations under its stock-based compensation plans, such as the grant date fair value, redemption and intrinsic value of the awards. For stock appreciation rights that are classified as equity, the Company uses the Black-Scholes valuation model to estimate the grant date fair value, unless the awards are subject to a market condition, in which case the Company uses a Monte Carlo simulation valuation model. The grant date fair value of equity-classified restricted stock units that are not subject to a market condition, is based on the fair value of the Company's common stock on the date of grant, adjusted to reflect the absence of dividends for those awards that are not entitled to dividend equivalents. For restricted stock units that include a market condition, the Company uses a Monte Carlo simulation valuation model to estimate the grant date fair value. For share-based awards that are classified as liabilities, the fair value of the awards is estimated using the intrinsic value method, which is based on the Company's common stock fair value on each measurement date. The Black-Scholes option pricing model and the Monte Carlo simulation model require the input of highly subjective assumptions including volatility. Due to the fact that the Company's common stock is not publicly traded, the computation of expected volatility is based on the average of the historical and implied volatilities over the expected life of the awards, of a representative peer group of publicly-traded entities. Other assumptions include expected life, risk-free rate of interest and dividend yield. For equity awards with a service condition, the expected life is derived based on historical experience and expected future post-vesting termination and exercise patterns. For equity awards with a performance condition, the expected life is computed using the simplified method until historical experience is available. The risk-free interest rate is based on zero coupon U.S. Treasury bond rates corresponding to the expected life of the awards. Dividend assumptions are based on historical experience. Due to the job function of the award recipients, the Company has included stock-based compensation cost in "Selling, general and administrative expenses" in the consolidated statements of income. |
||||||||||||||||||||||||||||||||||||||||
Self-insurance | Up to certain limits, the Company self-insures various loss exposures primarily relating to workers' compensation risk and employee and eligible retiree medical health benefits. The Company carries insurance policies covering claim exposures which exceed predefined amounts, per occurrence and/or in the aggregate. Accruals for losses are made based on the Company's claims experience and actuarial assumptions followed in the insurance industry, including provisions for incurred but not reported losses. |
||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments and hedging activities | The Company recognizes all derivatives as assets and liabilities at their fair values, which are included in "Other current assets", "Other non-current assets", "Other accrued liabilities" or "Other long-term liabilities" on the Company's consolidated balance sheets. The Company uses derivatives to manage exposures that are sensitive to changes in market conditions, such as foreign currency risk. Additionally, some of the Company's contracts contain provisions that are accounted for as embedded derivative instruments. The Company does not designate its derivative instruments for hedge accounting; changes in the fair values of these instruments are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The non-derivative instruments the Company designates and that qualify for hedge accounting treatment hedge the Company's net investment position in certain of its foreign subsidiaries. For these instruments, the Company documents the hedge designation by identifying the hedging instrument, the nature of the risk being hedged and the approach for measuring hedge effectiveness. The ineffective portions of these hedges are recorded in "Other income (expense), net" in the Company's consolidated statements of income. The effective portions of these hedges are recorded in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets and are not reclassified to earnings until the related net investment position has been liquidated. |
||||||||||||||||||||||||||||||||||||||||
Foreign currency | The functional currency for most of the Company's foreign operations is the applicable local currency. For those operations, assets and liabilities are translated into U.S. Dollars using period-end exchange rates; income and expenses are translated at average monthly exchange rates; and equity accounts are translated at historical rates. Net changes resulting from such translations are recorded as a component of translation adjustments in "Accumulated other comprehensive loss" on the Company's consolidated balance sheets. Foreign currency transactions are transactions denominated in a currency other than the entity's functional currency. At each balance sheet date, each entity remeasures the recorded balances related to foreign-currency transactions using the period-end exchange rate. Unrealized gains or losses arising from the remeasurement of these balances are recorded in "Other income (expense), net" in the Company's consolidated statements of income. In addition, at the settlement date of foreign currency transactions, the realized foreign currency gains or losses are recorded in "Other income (expense), net" in the Company's consolidated statements of income to reflect the difference between the rate effective at the settlement date and the historical rate at which the transaction was originally recorded. |
||||||||||||||||||||||||||||||||||||||||
Revenue recognition | Net sales is primarily comprised of sales of products to wholesale customers, including franchised stores, and direct sales to consumers at the Company's company-operated and e-commerce stores and at the Company's company-operated shop-in-shops located within department stores. The Company recognizes revenue on sales of products when the goods are shipped or delivered and title to the goods passes to the customer provided that: there are no uncertainties regarding customer acceptance; persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectability is reasonably assured. The revenue is recorded net of an allowance for estimated returns, discounts and retailer promotions and other similar incentives. Licensing revenues from the use of the Company's trademarks in connection with the manufacturing, advertising, and distribution of trademarked products by third-party licensees are earned and recognized as products are sold by licensees based on royalty rates set forth in the licensing agreements. The Company recognizes allowances for estimated returns in the period in which the related sale is recorded. The Company recognizes allowances for estimated discounts, retailer promotions and other similar incentives at the later of the period in which the related sale is recorded or the period in which the sales incentive is offered to the customer. The Company estimates non-volume based allowances based on historical rates as well as customer and product-specific circumstances. Sales and value-added taxes collected from customers and remitted to governmental authorities are presented on a net basis in the Company's consolidated statements of income. Net sales to the Company's ten largest customers totaled approximately 28%, 30% and 31% of net revenues for 2017, 2016 and 2015, respectively. No customer represented 10% or more of net revenues in any of these years. |
||||||||||||||||||||||||||||||||||||||||
Cost goods sold | Cost of goods sold includes the expenses incurred to acquire and produce inventory for sale, including product costs, labor and related overhead, inbound freight, internal transfers, and the cost of operating the Company's remaining manufacturing facilities, including the related depreciation expense. |
||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Selling, general and administrative expenses ("SG&A") are primarily comprised of costs relating to advertising, marketing, selling, distribution, information technology and other corporate functions. Selling costs include, among other things, all occupancy costs associated with company-operated stores and with the Company's company-operated shop-in-shops located within department stores. The Company expenses advertising costs as incurred. For 2017, 2016 and 2015, total advertising expense was $323.3 million, $284.0 million and $276.4 million, respectively. Distribution costs include costs related to receiving and inspection at distribution centers, warehousing, shipping to the Company's customers, handling and certain other activities associated with the Company's distribution network. These expenses totaled $173.4 million, $168.3 million, and $159.7 million for 2017, 2016 and 2015, respectively. |
||||||||||||||||||||||||||||||||||||||||
Recently issued accounting standards | First Quarter of 2018
First Quarter of 2019
First Quarter of 2020
First Quarter of 2021
|
Property, Plant and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of property, plant and equipment | The components of property, plant and equipment ("PP&E") were as follows:
|
Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amount of goodwill | The changes in the carrying amount of goodwill by business segment for the years ended November 26, 2017 and November 27, 2016, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets | Other intangible assets, net, were as follows:
|
Fair Value of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
_____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
_____________
|
Derivative Instruments and Hedging Activities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying values of derivative instruments and non-derivative instruments | The table below provides data about the carrying values of derivative instruments and non-derivative instruments:
_____________
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:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains and losses included in AOCI | The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as net investment hedges included in "Accumulated other comprehensive loss" ("AOCI") on the Company’s consolidated balance sheets, and in "Other income (expense), net" in the Company’s consolidated statements of income:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains and losses included in statements of income | The table below provides data about the amount of gains and losses related to derivatives not designated as hedging instruments included in "Other income (expense), net" in the Company’s consolidated statements of income:
_____________
|
Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term and short-term debt instruments | The following table presents the Company's debt:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments on short-term and long-term debt | The table below sets forth, as of November 26, 2017, the Company's required aggregate short-term and long-term debt principal payments (inclusive of premium and discount):
|
Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of benefit obligations in excess of fair value of plan assets | The following tables summarize activity of the Company's defined benefit pension plans and postretirement benefit plans:
_____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amounts recognized in balance sheet | Amounts recognized in the Company's consolidated balance sheets as of November 26, 2017 and November 27, 2016, consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated benefit obligations in excess of fair value of plan assets | Information for the Company's defined benefit plans with an accumulated or projected benefit obligation in excess of plan assets is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans disclosures | The components of the Company's net periodic benefit cost were as follows:
_____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assumptions used | Assumptions used in accounting for the Company's benefit plans were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values of pension plan assets | he fair value of the Company's pension plan assets by asset class are as follows:
_____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of expected benefit payments | The Company's estimated future benefit payments to participants, which reflect expected future service, as appropriate are anticipated to be paid as follows:
|
Stock-Based Incentive Compensation Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock appreciation rights award activity | SARs activity during the year ended November 26, 2017 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock appreciation rights, valuation assumptions | The weighted-average grant date fair values and corresponding weighted-average assumptions used in the Black-Scholes option valuation model were as follows:
The weighted-average grant date fair value of SARs subject to market conditions was estimated using a Monte Carlo simulation model. The weighted-average grant date fair values and corresponding weighted-average assumptions used in the model were as follows:
The weighted-average grant date fair value and corresponding weighted-average assumptions used in the Monte Carlo valuation model were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units award activity | Service and Performance RSU activity during the year ended November 26, 2017 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total shareholder return plan activity | Liability award activity during the year ended November 26, 2017 was as follows:
|
Commitments and Contingencies Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum rental payments for operating leases | At November 26, 2017, obligations for future minimum payments under operating leases were as follows:
|
Accumulated Other Comprehensive Loss (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income (loss) is summarized below:
|
Other Income (Expense), Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other nonoperating income (expense) | The following table summarizes significant components of "Other income (expense), net":
_____________
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of effective income tax rate reconciliation | The Company's income tax expense differed from the amount computed by applying the U.S. federal statutory income tax rate of 35% to income before income taxes as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of income before income tax, domestic and foreign | The U.S. and foreign components of income before income taxes were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of income tax expense (benefit) | Income tax expense consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of deferred tax assets and liabilities | The Company's deferred tax assets and deferred tax liabilities were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of valuation allowance | Valuation Allowance. The following table details the changes in valuation allowance during the year ended November 26, 2017:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of unrecognized tax benefits roll forward | The following table reflects the changes to the Company's unrecognized tax benefits for the year ended November 26, 2017 and November 27, 2016:
|
Business Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of operating profit (loss) | Business segment information for the Company is as follows:
_____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of other significant reconciling items |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of assets |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of revenue | Geographic information for the Company was as follows:
|
Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quarterly financial information | Set forth below are the consolidated statements of operations for the first, second, third and fourth quarters of 2017 and 2016.
_____________
|
Significant Accounting Policies - Narrative (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017
USD ($)
region
|
Aug. 27, 2017
USD ($)
|
May 28, 2017
USD ($)
|
Feb. 26, 2017
USD ($)
|
Nov. 27, 2016
USD ($)
|
Aug. 28, 2016
USD ($)
|
May 29, 2016
USD ($)
|
Feb. 28, 2016
USD ($)
|
Nov. 29, 2015 |
Aug. 30, 2015 |
May 31, 2015 |
Mar. 01, 2015 |
Nov. 26, 2017
USD ($)
region
|
Nov. 27, 2016
USD ($)
|
Nov. 29, 2015
USD ($)
|
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Selling, general and administrative expenses | $ 633,297 | $ 510,309 | $ 495,741 | $ 456,213 | $ 517,454 | $ 448,525 | $ 459,351 | $ 441,163 | $ 2,095,560 | $ 1,866,493 | $ 1,823,863 | ||||
Net income | $ (115,752) | $ (87,992) | $ (17,516) | $ (60,143) | $ (96,173) | $ (98,318) | $ (30,725) | $ (65,836) | $ (281,403) | $ (291,052) | $ (209,436) | ||||
Number of geographical regions | region | 3 | 3 | |||||||||||||
Number of weeks in a year | 364 days | 364 days | 364 days | ||||||||||||
Number of weeks in a quarter | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | 91 days | |||
Minority interest (percent) | 16.40% | 16.40% | |||||||||||||
Advertising expense | $ 323,300 | $ 284,000 | $ 276,400 | ||||||||||||
Distribution costs | 173,400 | $ 168,300 | $ 159,700 | ||||||||||||
Restatement Adjustment [Member] | Recognition of Stock-based Compensation Expense [Member] | |||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||
Selling, general and administrative expenses | $ 9,500 | 8,300 | |||||||||||||
Net income | $ 5,800 | $ 5,100 |
Significant Accounting Policies - Property, Plant and Equipment (Details) |
12 Months Ended |
---|---|
Nov. 26, 2017 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Software Development [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Software Development [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Significant Accounting Policies - Revenue Recognition (Details) - customer |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Revenue, Major Customer [Line Items] | |||
Number of largest customers | 10 | ||
Sales Revenue, Services, Net [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, percentage | 28.00% | 30.00% | 31.00% |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,375,712 | $ 1,250,193 | |
Accumulated depreciation | (951,249) | (856,588) | |
PP&E, net | 424,463 | 393,605 | |
Depreciation expense | 117,400 | 103,700 | $ 99,800 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 8,239 | 8,178 | |
Buildings and leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 422,168 | 379,217 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 452,950 | 407,527 | |
Capitalized internal-use software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 450,558 | 418,493 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 41,797 | $ 36,778 |
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 234,280 | $ 235,041 |
Foreign currency fluctuation | 3,047 | (761) |
Ending balance | 237,327 | 234,280 |
Americas [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 207,723 | 207,816 |
Foreign currency fluctuation | 42 | (93) |
Ending balance | 207,765 | 207,723 |
Europe [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 25,341 | 26,024 |
Foreign currency fluctuation | 2,983 | (683) |
Ending balance | 28,324 | 25,341 |
Asia Pacific [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,216 | 1,201 |
Foreign currency fluctuation | 22 | 15 |
Ending balance | $ 1,238 | $ 1,216 |
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 27, 2016 |
Nov. 29, 2015 |
Nov. 26, 2017 |
|
Amortized intangible assets | |||
Gross Carrying Value | $ 45,586 | $ 43,223 | |
Accumulated Amortization | (2,640) | (330) | |
Total | 42,946 | 42,893 | |
Amortization expense | 200 | $ 2,100 | |
Acquired contractual rights [Member] | |||
Amortized intangible assets | |||
Gross Carrying Value | 2,843 | 480 | |
Accumulated Amortization | (2,640) | (330) | |
Total | 203 | 150 | |
Trademarks [Member] | |||
Schedule of Acquired Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Trademarks | $ 42,743 | $ 42,743 |
Fair Value of Financial Instruments - Fair Value (Details) - Recurring [Member] - USD ($) $ in Thousands |
Nov. 26, 2017 |
Nov. 27, 2016 |
---|---|---|
Level 1 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | $ 31,139 | $ 27,131 |
Forward foreign exchange contracts, net | 0 | 0 |
Total | 31,139 | 27,131 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts, net | 0 | 0 |
Level 2 Inputs [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 0 | 0 |
Forward foreign exchange contracts, net | 6,296 | 23,267 |
Total | 6,296 | 23,267 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts, net | 23,799 | 5,533 |
Fair Value [Member] | ||
Financial assets carried at fair value | ||
Rabbi trust assets | 31,139 | 27,131 |
Forward foreign exchange contracts, net | 6,296 | 23,267 |
Total | 37,435 | 50,398 |
Financial liabilities carried at fair value | ||
Forward foreign exchange contracts, net | $ 23,799 | $ 5,533 |
Derivative Instruments and Hedging Activities - Realized & Unrealized (Details) - Forward foreign exchange contracts [Member] - Other Income [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized | $ (5,773) | $ 17,175 | $ 14,720 |
Unrealized | (35,394) | (1,315) | 19,386 |
Total | $ (41,167) | $ 15,860 | $ 34,106 |
Debt - Principal Payments on Short-term and Long-Term Debt (Details) $ in Thousands |
Nov. 26, 2017
USD ($)
|
---|---|
Maturities of Long-term and Short-term Debt [Abstract] | |
2017 | $ 38,451 |
2018 | 0 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
Thereafter | 1,051,862 |
Long-term and short-term debt | $ 1,090,313 |
Employee Benefit Plans - Accumulated benefit obligations in excess of fair value of plan assets (Details) - USD ($) $ in Thousands |
Nov. 26, 2017 |
Nov. 27, 2016 |
---|---|---|
Accumulated benefit obligations in excess of plan assets [Abstract] | ||
Aggregate accumulated benefit obligation | $ 1,091,856 | $ 1,079,316 |
Aggregate fair value of plan assets | 775,859 | 725,830 |
Projected benefit obligations in excess of plan assets [Abstract] | ||
Aggregate projected benefit obligation | 1,131,873 | 1,086,842 |
Aggregate fair value of plan assets | $ 812,082 | $ 726,675 |
Employee Benefit Plans - Expected benefit payments (Details) $ in Thousands |
Nov. 26, 2017
USD ($)
|
---|---|
Defined Benefit Plan Disclosure [Line Items] | |
2017 | $ 80,129 |
2018 | 77,300 |
2019 | 77,631 |
2020 | 78,153 |
2021 | 80,176 |
2022-2024 | 391,998 |
Pension plans, defined benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2017 | 68,564 |
2018 | 66,263 |
2019 | 66,986 |
2020 | 67,966 |
2021 | 70,559 |
2022-2024 | 353,302 |
Other postretirement benefit plans, defined benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2017 | 11,565 |
2018 | 11,037 |
2019 | 10,645 |
2020 | 10,187 |
2021 | 9,617 |
2022-2024 | $ 38,696 |
Employee Investment Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Disclosure of Employee Investment Plans [Abstract] | |||
ESIP Employer contributions match (percent) | 125.00% | ||
ESIP Employer contribution match, percent of employee's eligible compensation, maximum (percent) | 6.00% | ||
ESIP Compensation expense | $ 13.4 | $ 12.0 | $ 11.5 |
Employee Incentive Compensation Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Annual Incentive Plan (AIP) [Member] | |||
Schedule of Employee Incentive Compensation Plans Disclosures [Line Items] | |||
EICP Compensation expense (benefit) | $ 88.0 | $ 68.3 | $ 65.7 |
EICP Accrued liabilities | 85.4 | 68.5 | |
2005 Long-Term Incentive Plan (LTIP) [Member] | |||
Schedule of Employee Incentive Compensation Plans Disclosures [Line Items] | |||
EICP Compensation expense (benefit) | 4.5 | 4.9 | $ 4.3 |
EICP Accrued liabilities | $ 10.6 | $ 10.2 | |
ECIP Duration of performace prior to performance measurement | 3 years |
Stock-Based Incentive Compensation Plans - Aggregate Intrinsic Value - Exercised (Details) - 2016 Equity Incentive Plan (EIP) [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Service Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercises in period, intrinsic value | $ 25,572 | $ 1,443 | $ 4,686 |
Performance-Based Stock Appreciation Rights SARs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercises in period, intrinsic value | $ 883 | $ 986 | $ 0 |
Long-Term Employee Related Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Compensation Related Costs [Abstract] | |||
Deferred compensation plan, interest cost | $ 8.1 | $ 2.5 | $ 1.9 |
Deferred compensation plan for executives and outside directors, established January 1, 2003 [Member] | |||
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent, Excluded from the rabbi trust [Line Items] | |||
Total deferred compensation plan liabilities | 29.4 | 23.6 | |
Funds held in grantor's rabbi trust | 31.1 | 27.1 | |
Deferred compensation plan for executives, prior to January 1, 2003 [Member] | |||
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent, Excluded from the rabbi trust [Line Items] | |||
Total deferred compensation plan liabilities | $ 31.8 | $ 32.2 |
Restructuring - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 27, 2016 |
Aug. 28, 2016 |
May 29, 2016 |
Feb. 28, 2016 |
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring, net | $ (718) | $ (627) | $ (191) | $ 1,848 | $ 0 | $ 312 | $ 14,071 |
Corporate and Other [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Other general and administrative expense | $ 7,200 | $ 30,700 |
Commitments and Contingencies Commitments and Contingencies - Operating Lease Commitments (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2018 | $ 185,160 | ||
2019 | 146,726 | ||
2020 | 122,634 | ||
2021 | 98,537 | ||
2022 | 78,540 | ||
Thereafter | 220,460 | ||
Total future minimum lease payments | 852,057 | ||
Rental expense | $ 220,200 | $ 204,600 | $ 192,500 |
Maximum [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Duration of renew option | 57 years |
Dividend (Details) $ in Thousands |
2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Feb. 07, 2018
USD ($)
installment
|
Nov. 26, 2017
USD ($)
|
May 28, 2017
USD ($)
|
May 29, 2016
USD ($)
|
May 31, 2015
USD ($)
|
Nov. 26, 2017
USD ($)
installment
|
Nov. 27, 2016
USD ($)
|
Nov. 29, 2015
USD ($)
|
Nov. 25, 2018
USD ($)
|
Feb. 25, 2018
USD ($)
|
|
Subsequent Event [Line Items] | ||||||||||
Cash dividend paid | $ 35,000 | $ 35,000 | $ 60,000 | $ 50,000 | $ 70,000 | $ 60,000 | $ 50,000 | |||
Number of installments | installment | 2 | |||||||||
Scenario, Forecast [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividends payable | $ 45,000 | |||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividend declared | $ 90,000 | |||||||||
Number of installments | installment | 2 | |||||||||
Subsequent Event [Member] | Scenario, Forecast [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividends payable | $ 45,000 |
Other Income (Expense), Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 |
Aug. 27, 2017 |
May 28, 2017 |
Feb. 26, 2017 |
Nov. 27, 2016 |
Aug. 28, 2016 |
May 29, 2016 |
Feb. 28, 2016 |
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Other Income and Expenses [Abstract] | |||||||||||
Foreign Exchange Management Gains (Losses) | $ (41,167) | $ 15,860 | $ 34,106 | ||||||||
Foreign Currency Transaction Gains (Losses) | 7,853 | (7,166) | (64,161) | ||||||||
Interest Income (Expense), Nonoperating, Net | 3,380 | 1,376 | 1,253 | ||||||||
Investment Income, Interest | 629 | 976 | 697 | ||||||||
Other Other Income (Expense) | 2,313 | 7,177 | 2,672 | ||||||||
Other income (expense), net | $ 5,421 | $ (14,734) | $ (18,087) | $ 408 | $ 11,468 | $ 4,679 | $ 4,295 | $ (2,219) | $ (26,992) | $ 18,223 | $ (25,433) |
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 |
Aug. 27, 2017 |
May 28, 2017 |
Feb. 26, 2017 |
Nov. 27, 2016 |
Aug. 28, 2016 |
May 29, 2016 |
Feb. 28, 2016 |
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Income Tax Expense Reconciliation [Abstract] | |||||||||||
Income tax expense at U.S. federal statutory rate | $ 122,073 | $ 142,541 | $ 108,639 | ||||||||
State income taxes, net of U.S. federal impact | 7,598 | 6,943 | 8,938 | ||||||||
Change in valuation allowance | (9,624) | 0 | 0 | ||||||||
Impact of foreign operations | (50,650) | (28,727) | (7,286) | ||||||||
Reassessment of tax liabilities | (5,553) | (2,387) | (7,577) | ||||||||
Deduction related to subsidiaries | 0 | (6,788) | (8,060) | ||||||||
Other, including non-deductible expenses | 381 | 4,469 | 5,853 | ||||||||
Total | $ 21,748 | $ 27,631 | $ (13,847) | $ 28,693 | $ 39,301 | $ 32,713 | $ 10,862 | $ 33,175 | $ 64,225 | $ 116,051 | $ 100,507 |
Effective Income Tax Rate Reconciliation [Abstract] | |||||||||||
U.S. federal statutory rate (percent) | 35.00% | 35.00% | 35.00% | ||||||||
State income taxes, net of U.S. federal impact (percent) | 2.20% | 1.70% | 2.90% | ||||||||
Change in valuation allowance (percent) | (2.80%) | 0.00% | 0.00% | ||||||||
Impact of foreign operations (percent) | (14.50%) | (7.10%) | (2.30%) | ||||||||
Reassessment of tax liabilities (percent) | (1.60%) | (0.60%) | (2.40%) | ||||||||
Deduction related to subsidiaries (percent) | 0.00% | (1.70%) | (2.60%) | ||||||||
Other, including non-deductible expenses (percent) | 0.10% | 1.20% | 1.80% | ||||||||
Total | 18.40% | 28.50% | 32.40% |
Income Taxes - Domestic and Foreign Income (Loss) before income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ 67,407 | $ 189,478 | $ 194,540 |
Foreign | 281,374 | 217,782 | 115,858 |
Total Income before Income Taxes | $ 348,781 | $ 407,260 | $ 310,398 |
Income Taxes - Current and Deferred Tax (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 |
Aug. 27, 2017 |
May 28, 2017 |
Feb. 26, 2017 |
Nov. 27, 2016 |
Aug. 28, 2016 |
May 29, 2016 |
Feb. 28, 2016 |
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Income Tax Disclosure [Abstract] | |||||||||||
U.S. Federal Current | $ 7,936 | $ 7,122 | $ 3,299 | ||||||||
U.S. Federal Deferred | 1,240 | 66,840 | 56,155 | ||||||||
U.S. Federal Total | 9,176 | 73,962 | 59,454 | ||||||||
U.S. State Current | 3,441 | 2,097 | 1,334 | ||||||||
U.S. State Deferred | 4,157 | 4,846 | 7,604 | ||||||||
U.S. State Total | 7,598 | 6,943 | 8,938 | ||||||||
Foreign Current | 53,334 | 40,754 | 37,488 | ||||||||
Foreign Deferred | (5,883) | (5,608) | (5,373) | ||||||||
Foreign Total | 47,451 | 35,146 | 32,115 | ||||||||
Consolidated Current | 64,711 | 49,973 | 42,121 | ||||||||
Deferred income taxes | (486) | 66,078 | 58,386 | ||||||||
Total | $ 21,748 | $ 27,631 | $ (13,847) | $ 28,693 | $ 39,301 | $ 32,713 | $ 10,862 | $ 33,175 | $ 64,225 | $ 116,051 | $ 100,507 |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Nov. 26, 2017 |
Nov. 27, 2016 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Foreign tax credit carryforwards | $ 123,593 | $ 92,845 |
State net operating loss carryforwards | 8,302 | 8,721 |
Foreign net operating loss carryforwards | 59,157 | 85,095 |
Employee compensation and benefit plans | 214,798 | 247,235 |
Advance royalties | 46,757 | 58,633 |
Accrued liabilities | 29,169 | 28,680 |
Sales returns and allowances | 39,030 | 29,338 |
Inventory | 19,553 | 14,272 |
Property, plant and equipment | 8,826 | 6,971 |
Unrealized foreign exchange gains or losses | 23,058 | 0 |
Other | 1,069 | 14,472 |
Total gross deferred tax assets | 573,312 | 586,262 |
Less: Valuation allowance | (38,692) | (68,212) |
Deferred tax assets, net of valuation allowance | 534,620 | 518,050 |
Total net deferred tax assets | $ 534,620 | $ 518,050 |
Income Taxes - Summary of Operating Loss Carryforwards (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|||
Valuation Allowance [Line Items] | |||||
Balance at Beginning of Period | $ 68,212 | $ 75,753 | $ 89,814 | ||
Changes in Related Gross Deferred Tax Asset | [1] | (10,219) | (5,027) | (14,061) | |
Change / (Release) | (19,301) | (2,514) | 0 | ||
Balance at End of Period | 38,692 | 68,212 | $ 75,753 | ||
Domestic Tax Authority [Member] | |||||
Valuation Allowance [Line Items] | |||||
Balance at Beginning of Period | 1,720 | ||||
Changes in Related Gross Deferred Tax Asset | (200) | ||||
Change / (Release) | 0 | ||||
Balance at End of Period | 1,520 | 1,720 | |||
Foreign Tax Authority [Member] | |||||
Valuation Allowance [Line Items] | |||||
Balance at Beginning of Period | 66,492 | ||||
Changes in Related Gross Deferred Tax Asset | (10,019) | ||||
Change / (Release) | (19,301) | ||||
Balance at End of Period | $ 37,172 | $ 66,492 | |||
|
Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
|
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Gross unrecognized tax benefits, beginning of period | $ 29,053 | $ 32,704 |
Increases related to current year tax positions | 4,779 | 1,970 |
Increases related to tax positions from prior years | 5,625 | 45 |
Decreases related to tax positions from prior years | (4,050) | (584) |
Settlement with tax authorities | 0 | 0 |
Lapses of statutes of limitation | (1,956) | (4,266) |
Other, including foreign currency translation | 335 | (816) |
Gross unrecognized tax benefits, end of period | $ 33,786 | $ 29,053 |
Related Parties (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Levi Strauss Foundation [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Donation | $ 7.3 | $ 6.9 | $ 7.0 |
Business Segment Information (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017
USD ($)
|
Aug. 27, 2017
USD ($)
|
May 28, 2017
USD ($)
|
Feb. 26, 2017
USD ($)
|
Nov. 27, 2016
USD ($)
|
Aug. 28, 2016
USD ($)
|
May 29, 2016
USD ($)
|
Feb. 28, 2016
USD ($)
|
Nov. 26, 2017
USD ($)
Regional_Segments
|
Nov. 27, 2016
USD ($)
|
Nov. 29, 2015
USD ($)
|
|
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | Regional_Segments | 3 | ||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | $ 1,465,793 | $ 1,268,391 | $ 1,067,855 | $ 1,101,991 | $ 1,299,541 | $ 1,185,111 | $ 1,011,587 | $ 1,056,500 | $ 4,904,030 | $ 4,552,739 | $ 4,494,493 |
Total operating income | 149,858 | 146,320 | 62,651 | 108,340 | 142,674 | 144,908 | 58,038 | 116,587 | 467,169 | 462,207 | 431,047 |
Restructuring, net | (718) | (627) | (191) | 1,848 | 0 | 312 | 14,071 | ||||
Interest expense | (16,298) | (14,476) | (17,895) | (19,934) | (18,687) | (19,170) | (20,411) | (14,902) | (68,603) | (73,170) | (81,214) |
Loss on early extinguishment of debt | 0 | 0 | (22,793) | 0 | (22,793) | 0 | (14,002) | ||||
Other income (expense), net | 5,421 | (14,734) | (18,087) | 408 | 11,468 | 4,679 | 4,295 | (2,219) | (26,992) | 18,223 | (25,433) |
Income before income taxes | 138,981 | $ 117,110 | $ 3,876 | $ 88,814 | 135,455 | $ 130,417 | $ 41,922 | $ 99,466 | 348,781 | 407,260 | 310,398 |
Benefit from resolution of vendor dispute | 7,000 | ||||||||||
Share-based compensation expense | 57,100 | 20,300 | 25,600 | ||||||||
Total depreciation and amortization expense | 117,387 | 103,878 | 102,044 | ||||||||
Trade receivables, net | 485,485 | 479,018 | 485,485 | 479,018 | |||||||
Inventories | 759,396 | 716,181 | 759,396 | 716,181 | |||||||
All other assets | 2,109,811 | 1,791,897 | 2,109,811 | 1,791,897 | |||||||
Total assets | 3,354,692 | 2,987,096 | 3,354,692 | 2,987,096 | |||||||
Total net deferred tax assets | 537,923 | 523,101 | 537,923 | 523,101 | 580,640 | ||||||
Long-Lived Assets | 454,316 | 419,690 | 454,316 | 419,690 | 411,820 | ||||||
United States | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 2,347,860 | 2,302,668 | 2,380,820 | ||||||||
Total net deferred tax assets | 450,270 | 444,295 | 450,270 | 444,295 | 506,675 | ||||||
Long-Lived Assets | 312,656 | 311,358 | 312,656 | 311,358 | 322,758 | ||||||
Foreign countries | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 2,556,170 | 2,250,071 | 2,113,673 | ||||||||
Total net deferred tax assets | 87,653 | 78,806 | 87,653 | 78,806 | 73,965 | ||||||
Long-Lived Assets | 141,660 | 108,332 | 141,660 | 108,332 | 89,062 | ||||||
Restatement Adjustment [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Share-based compensation expense | 8,300 | ||||||||||
Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Total operating income | 806,229 | 743,493 | 794,951 | ||||||||
Corporate, Non-Segment [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Total operating income | 339,060 | 281,286 | 363,904 | ||||||||
Restructuring, net | 0 | 313 | 14,071 | ||||||||
Restructuring-related charges | 0 | 7,195 | 30,736 | ||||||||
Other corporate staff costs and expenses | 339,060 | 273,778 | 319,097 | ||||||||
Total depreciation and amortization expense | 52,270 | 52,772 | 52,046 | ||||||||
Trade receivables, net | 10,937 | 12,191 | 10,937 | 12,191 | |||||||
Inventories | 76,002 | 77,895 | 76,002 | 77,895 | |||||||
All other assets | 2,109,811 | 1,791,897 | 2,109,811 | 1,791,897 | |||||||
Americas [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Total depreciation and amortization expense | 37,802 | 30,322 | 27,558 | ||||||||
Trade receivables, net | 322,712 | 326,211 | 322,712 | 326,211 | |||||||
Inventories | 402,151 | 391,713 | 402,151 | 391,713 | |||||||
All other assets | 0 | 0 | 0 | 0 | |||||||
Americas [Member] | Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 2,774,050 | 2,683,008 | 2,726,461 | ||||||||
Total operating income | 529,310 | 507,802 | 551,022 | ||||||||
Europe [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Gain on disposal of assets | 6,100 | 7,500 | |||||||||
Total depreciation and amortization expense | 17,479 | 12,574 | 14,985 | ||||||||
Trade receivables, net | 99,807 | 94,106 | 99,807 | 94,106 | |||||||
Inventories | 162,391 | 125,029 | 162,391 | 125,029 | |||||||
All other assets | 0 | 0 | 0 | 0 | |||||||
Europe [Member] | Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 1,312,276 | 1,091,362 | 1,016,418 | ||||||||
Total operating income | 198,662 | 154,829 | 144,432 | ||||||||
Asia Pacific [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Total depreciation and amortization expense | 9,836 | 8,210 | 7,455 | ||||||||
Trade receivables, net | 52,029 | 46,510 | 52,029 | 46,510 | |||||||
Inventories | 118,852 | 121,544 | 118,852 | 121,544 | |||||||
All other assets | $ 0 | $ 0 | 0 | 0 | |||||||
Asia Pacific [Member] | Operating Segments [Member] | |||||||||||
Income before income taxes [Abstract] | |||||||||||
Net revenues | 817,704 | 778,369 | 751,614 | ||||||||
Total operating income | $ 78,257 | $ 80,862 | $ 99,497 |
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 26, 2017 |
Aug. 27, 2017 |
May 28, 2017 |
Feb. 26, 2017 |
Nov. 27, 2016 |
Aug. 28, 2016 |
May 29, 2016 |
Feb. 28, 2016 |
Nov. 26, 2017 |
Nov. 27, 2016 |
Nov. 29, 2015 |
|
Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Net revenues | $ 1,465,793 | $ 1,268,391 | $ 1,067,855 | $ 1,101,991 | $ 1,299,541 | $ 1,185,111 | $ 1,011,587 | $ 1,056,500 | $ 4,904,030 | $ 4,552,739 | $ 4,494,493 |
Cost of goods sold | 682,638 | 611,762 | 509,463 | 537,438 | 640,131 | 592,305 | 494,389 | 496,902 | 2,341,301 | 2,223,727 | 2,225,512 |
Gross profit | 783,155 | 656,629 | 558,392 | 564,553 | 659,410 | 592,806 | 517,198 | 559,598 | 2,562,729 | 2,329,012 | 2,268,981 |
Selling, general and administrative expenses | 633,297 | 510,309 | 495,741 | 456,213 | 517,454 | 448,525 | 459,351 | 441,163 | 2,095,560 | 1,866,493 | 1,823,863 |
Restructuring, net | (718) | (627) | (191) | 1,848 | 0 | 312 | 14,071 | ||||
Operating income | 149,858 | 146,320 | 62,651 | 108,340 | 142,674 | 144,908 | 58,038 | 116,587 | 467,169 | 462,207 | 431,047 |
Interest expense | (16,298) | (14,476) | (17,895) | (19,934) | (18,687) | (19,170) | (20,411) | (14,902) | (68,603) | (73,170) | (81,214) |
Loss on early extinguishment of debt | 0 | 0 | (22,793) | 0 | (22,793) | 0 | (14,002) | ||||
Other income (expense), net | 5,421 | (14,734) | (18,087) | 408 | 11,468 | 4,679 | 4,295 | (2,219) | (26,992) | 18,223 | (25,433) |
Income before income taxes | 138,981 | 117,110 | 3,876 | 88,814 | 135,455 | 130,417 | 41,922 | 99,466 | 348,781 | 407,260 | 310,398 |
Income tax expense | 21,748 | 27,631 | (13,847) | 28,693 | 39,301 | 32,713 | 10,862 | 33,175 | 64,225 | 116,051 | 100,507 |
Net income | 117,233 | 89,479 | 17,723 | 60,121 | 96,154 | 97,704 | 31,060 | 66,291 | 284,556 | 291,209 | 209,891 |
Net loss (income) attributable to noncontrolling interest | (1,481) | (1,487) | (207) | 22 | 19 | 614 | (335) | (455) | (3,153) | (157) | (455) |
Net income attributable to Levi Strauss & Co. | $ 115,752 | 87,992 | $ 17,516 | $ 60,143 | $ 96,173 | $ 98,318 | $ 30,725 | $ 65,836 | 281,403 | $ 291,052 | $ 209,436 |
Restatement Adjustment [Member] | Recognition of Stock-based Compensation Expense [Member] | |||||||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||||||
Selling, general and administrative expenses | 9,500 | 8,300 | |||||||||
Net income attributable to Levi Strauss & Co. | $ (5,800) | $ (5,100) |
Subsequent Events (Details) - Scenario, Forecast [Member] $ in Millions |
Feb. 25, 2018
USD ($)
|
---|---|
Minimum [Member] | |
Subsequent Event [Line Items] | |
Preliminary impact of U.S. statutory rate change | $ 110 |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Preliminary impact of U.S. statutory rate change | $ 160 |
Y,Y_&FU/?3;_EUO;Y[ML2XJ)Z&\LY2U8G"5Q+;A5KKD!UD52Y_HL)$$W
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MV"IXXDG8%06!6T#%+-26HH2;7 2 B1=9$DB\85_,@HU9;[,=2/9159]!&8
M(4$'J%5IKLEPUIS.AM)9<_)J[5TTU)&@4U[ITKB6(:TYI0VEM!8(C-8X/M>X
M$&+P*I:>FXQK'=@:6)RM,F(U9ZRAC-6
M*2Z+]?WVY?FF=5,^K:KZ]=#!T_T+^F^Z?B7)GG?I;$3@^;A^H;]]A?FF?O?7
M '_,UO?SU:;ULZRJ V0W0=RH>;OKW\4;2'LNFB9Z5-G^.ZD;U2
M6AI,=&'9%EMJEHD&^]*;7IC5ED$*[DEL(!6/EHG
MC6N98R/1UP+953)$E9T,86"1!I:7O")-F2M'4?I&,ALIJ[TVT'&(MK;KQ]@B
MA"TYPPE@R\G$/@>J&-0F#*BN
]X>.+-(?6]*8,SMB+>>?'6>R_%9K_/V"4033'',29=QLP1S+//
M*=*U%,?T$SQ=AV]7%6XC?/N?PIMU@MTJP2X2[)8$-\F'$M=B/A;)%CU58)HX
M39:4V.LXR0OO/+"W:7R3?^'CM#]QTPAMR1F=?]G8_QK1@9>27/D1:OT'FPT)
MM0O'K_YLQC$;#8?=](/8_(V+OU!+ P04 " "V=$=,_)5EZ+8! #2 P
M&0 'AL+W=OI!F[!*(YYCC%\%7,;HE@R+ZDX%LICOP_
M.-^&[S<5[B-\_T'A]39!NDF01H+T \'-IQ*W8FX_)6&KGFJP39PF1THS='&2
M5]YE8._C([+W\&G:OPO;R,Z1L_'XLK'_M3$>4$IRA2/4X@=;# 6U#\=;/-MI
MS";#FW[^06SYQL4_4$L#!!0 ( +9T1TS339&ZM@$ -(# 9 >&PO
M=V]R:W-H965T14FU V1 T2:.5(G)$P"!+"
M:=?C(G.YLRPR<=6LZ^$LD;IR3N7O$S QYGB'[XGGKFFU39 B&V@#WT'_&,[2
M1&11J3H.O>I$CR34.7[<'4^IQ3O 2P>C6LV1[>0BQ*L-OE0Y#FQ!P*#45H&:
MX09/P)@5,F7\FC7Q8FF)Z_E=_9/KW?1RH0J>!/O95;K-\0&C"FIZ9?I9C)]A
M[B?&:&[^*]R &;BMQ'B4@BGW1>55:<%G%5,*IV_3V/5N'*>5^$[S$\*9$"Z$
M@R.0R
.]_YLIC&;#(?]_(/8\HW+/U!+ P04 " "V=$=,A;UX#OD! #+
M!0 &0 'AL+W=O
V;5W[2'3FSWSLK3V-/3@C$\BTZMHQZS[#!D@'E#1-;[
MY0H"7;$D(W-R?<%JC*#H&K(>0R2"25 P3NKLZ3!.0F '#'3 G -V)907Q[+#
MQ Y3=D)1P07VXP5PA",L*4R(@X3XB)!(/#X=A _N^20Y)DQZ? !
;G47STAXXE]YK653MW#](6=\&0;LY\)*U-Z+FE?JR$TW)I%HV^Z"M&\ZV
MQJ@L AR&<5"RO/(7,[/WT"QFXBB+O.(/C=<>RY(U?Y>\$.>YC_RWC<=\?Y!Z
M(UC,:K;G/[E\JA\:M0HN+-N\Y%6;B\IK^&[N?T&W]SC4!@;Q*^?GMO?N:5>>
MA7C1BV_;N1]J1;S@&ZDIF'J<^(H7A692.OY84O]RIC;LO[^QWQOGE3//K.4K
M4?S.M_(P]U/?V_(=.Q;R49R_T1"H% #C&P &0
M 'AL+W=O