Business Segment Information

12 Months Ended

Nov. 28, 2021

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

In the fourth quarter of 2021, the Company changed its segment reporting as a result of operational changes in support of the ongoing efforts to globally integrate the Levi's Brands business, which includes Levi's, Signature by Levi Strauss & Co.™ and Denizen® brands, and separate the Dockers® business. The Levi's business is defined geographically in three operating segments: Americas, Europe and Asia. The Dockers® business, which is managed separately, will no longer be reported in the three geographical regions of Americas, Europe and Asia.

Therefore, there are three reportable segments: Americas, Europe, and Asia, collectively comprising the Company's Levi's Brands business, and Other Brands, which includes Dockers® and the newly acquired Beyond Yoga® business, which do not meet the quantitative thresholds for reportable segments and therefore are presented under the caption of Other Brands. While this reporting change did not impact consolidated results, the segment data has been recast to be consistent for all periods presented throughout the financial statements and accompanying footnotes.

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 segments’ net revenues and operating income. The Company reports 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.

Business segment information for the Company is as follows:

	Year Ended
	November 28, 2021		November 29,  2020(1)		November 24, 2019
	(Dollars in thousands)
Net revenues:
Americas	$	2,934,826	$	2,187,899	$	2,771,083
Europe	1,704,018		1,391,764		1,707,469
Asia	834,649		663,391		926,120
Other Brands	290,443		209,555		358,415
Total net revenues	$	5,763,936	$	4,452,609	$	5,763,087
Operating income (loss):
Americas	$	660,230	$	318,738	$	519,686
Europe	396,386		207,866		350,067
Asia	35,097		(21,392)		87,490
Other Brands	10,431		(3,338)		7,172
Restructuring charges, net	(8,287)		(90,415)		—
Corporate expenses(2)	(407,646)		(496,578)		(397,740)
Total operating income (loss)	686,211		(85,119)		566,675
Interest expense	(72,902)		(82,190)		(66,248)
Underwriter commission paid on behalf of selling stockholders	—		—		(24,860)
Loss on early extinguishment of debt	(36,521)		—		—
Other income (expense), net(3)	3,452		(22,474)		2,017
Income (loss) before income taxes	$	580,240	$	(189,783)	$	477,584

___________

(1)For the year ended November 29, 2020, the Company's business and results of operations were impacted by temporary store closures and reduced traffic and consumer demand as a result of the COVID-19 pandemic, with the majority of the impact occurring in the second quarter as most company-operated and wholesale customer doors were temporarily closed. Refer to Note 1 for more information.

(2)Corporate expenses for the year ended November 29, 2020 includes incremental COVID-19 related charges that management does not attribute to any of the operating segments in order to provide increased transparency and comparability of segment performance. These charges include $42.3 million of incremental inventory reserves of which $26.3 million, $9.1 million and $6.9 million were related to the Americas, Europe and Asia segments, respectively, and charges for adverse fabric purchase commitments of $1.2 million related to the Asia segment. Net charges related to incremental allowance for doubtful accounts of $5.2 million were recognized, of which $5.0 million and $0.2 million were related to the Americas and Europe segments, respectively. Additionally, the Company recognized $58.7 million in impairment of long-lived assets related to certain retail locations, of which $50.0 million, $6.3 million and $2.4 million, were related to the Americas, Europe and Asia segments, respectively. Refer to Note 1 for additional information.

(3)Includes $14.7 million in pension settlement losses in fiscal year 2020 related to the voluntary lump-sum, cash-out program offered to vested deferred U.S. pension plan participants. See Note 10 for further information.

	Year Ended
	November 28, 2021		November 29, 2020		November 24, 2019
	(Dollars in thousands)
Depreciation and amortization expense:
Americas	$	39,137	$	49,689	$	41,288
Europe	23,325		22,877		22,897
Asia	13,259		12,656		11,875
Other Brands and Corporate	67,446		56,573		47,882
Total depreciation and amortization expense	$	143,167	$	141,795	$	123,942

	November 28, 2021
	Americas		Europe		Asia		Unallocated		Consolidated Total
	(Dollars in thousands)
Assets:
Inventories	$	429,527	$	175,732	$	154,864	$	137,827	$	897,950
All other assets	—		—		—		5,002,119		5,002,119
Total assets									$	5,900,069

	November 29, 2020
	Americas		Europe		Asia		Unallocated		Consolidated Total
	(Dollars in thousands)
Assets:
Inventories	$	352,648	$	165,516	$	162,244	$	137,284	$	817,692
All other assets	—		—		—		4,823,549		4,823,549
Total assets									$	5,641,241

Geographic information for the Company was as follows:

	Year Ended
	November 28, 2021		November 29, 2020		November 24, 2019
	(Dollars in thousands)
Net revenues:
United States	$	2,594,482	$	1,943,522	$	2,525,325
Foreign countries	3,169,454		2,509,087		3,237,762
Total net revenues	$	5,763,936	$	4,452,609	$	5,763,087
Net deferred tax assets:
United States	$	422,013	$	404,800	$	327,980
Foreign countries	151,101		92,756		79,925
Total net deferred tax assets	$	573,114	$	497,556	$	407,905
Long-lived assets:
United States	$	358,497	$	317,102	$	376,883
Foreign countries	174,097		168,437		194,762
Total long-lived assets	$	532,594	$	485,539	$	571,645