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.



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