Business Segment Information

12 Months Ended

Nov. 27, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

The Company manages its business according to three reportable segments: Americas, Europe, and Asia, collectively comprising the Company's Levi's Brands business, which includes the Levi's, Signature by Levi Strauss & Co.™ and Denizen® brands. Other Brands, which includes Dockers® and Beyond Yoga® businesses do not meet the quantitative thresholds for reportable segments and therefore are presented under the caption of Other Brands.

The Company considers its chief executive officer to be its 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 27, 2022		November 28, 2021		November 29,  2020(1)
	(Dollars in millions)
Net revenues:
Americas	$	3,187.4	$	2,934.8	$	2,187.9
Europe	1,597.2		1,704.0		1,391.8
Asia	952.1		834.7		663.4
Other Brands	431.9		290.4		209.5
Total net revenues	$	6,168.6	$	5,763.9	$	4,452.6
Operating income (loss):
Americas	$	654.4	$	660.2	$	318.7
Europe	349.9		396.4		207.9
Asia	111.2		35.1		(21.4)
Other Brands	17.1		10.4		(3.3)
Restructuring charges, net	(9.1)		(8.3)		(90.4)
Corporate expenses(2)	(477.0)		(407.6)		(496.6)
Total operating income (loss)	646.5		686.2		(85.1)
Interest expense	(25.7)		(72.9)		(82.2)
Loss on early extinguishment of debt	—		(36.5)		—
Other income (expense), net(3)	28.8		3.4		(22.4)
Income (loss) before income taxes	$	649.6	$	580.2	$	(189.7)

___________

(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, as most company-operated and wholesale customer doors were temporarily closed.

(2)Corporate expenses for the year ended November 27, 2022 includes $49.0 million in impairment charges, net of a $15.8 million gain on the termination of store leases related to the Russia-Ukraine crisis which are considered part of the Company's Europe segment.

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.

	Year Ended
	November 27, 2022		November 28, 2021		November 29, 2020
	(Dollars in millions)
Depreciation and amortization expense:
Americas	$	39.7	$	39.1	$	49.7
Europe	19.0		23.3		22.9
Asia	12.3		13.3		12.6
Other Brands and Corporate	87.9		67.5		56.6
Total depreciation and amortization expense	$	158.9	$	143.2	$	141.8

	November 27, 2022
	Americas		Europe		Asia		Unallocated		Consolidated Total
	(Dollars in millions)
Assets:
Inventories	$	786.6	$	207.8	$	204.5	$	217.9	$	1,416.8
All other assets	—		—		—		4,621.0		4,621.0
Total assets									$	6,037.8

	November 28, 2021
	Americas		Europe		Asia		Unallocated		Consolidated Total
	(Dollars in millions)
Assets:
Inventories	$	429.5	$	175.8	$	154.9	$	137.8	$	898.0
All other assets	—		—		—		5,002.1		5,002.1
Total assets									$	5,900.1

Geographic information for the Company was as follows:

	Year Ended
	November 27, 2022		November 28, 2021		November 29, 2020
	(Dollars in millions)
Net revenues:
United States	$	2,883.5	$	2,594.5	$	1,943.5
Foreign countries	3,285.1		3,169.4		2,509.1
Total net revenues	$	6,168.6	$	5,763.9	$	4,452.6
Net deferred tax assets:
United States	$	379.0	$	422.0	$	404.8
Foreign countries	246.0		151.1		92.8
Total net deferred tax assets	$	625.0	$	573.1	$	497.6
Long-lived assets:
United States	$	454.2	$	358.5	$	317.1
Foreign countries	196.9		174.1		168.4
Total long-lived assets	$	651.1	$	532.6	$	485.5