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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended May 26, 2024
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 001-06631
_________________
LEVI STRAUSS & CO.
(Exact Name of Registrant as Specified in Its Charter)
Delaware  94-0905160
(State or Other Jurisdiction of
Incorporation or Organization)
  (I.R.S. Employer
Identification No.)
1155 Battery Street, San Francisco, California 94111
(Address of Principal Executive Offices) (Zip Code)
(415) 501-6000
(Registrant’s Telephone Number, Including Area Code)
None
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
_________________
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.001 par value per shareLEVINew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  þ  No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "Large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer þ
Accelerated filer ¨
Emerging growth company
Non-accelerated filer ¨
Smaller reporting company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  þ
As of June 18, 2024, the registrant had 105,137,324 shares of Class A common stock, $0.001 par value per share and 292,365,765 shares of Class B common stock, $0.001 par value per share, outstanding.


LEVI STRAUSS & CO. AND SUBSIDIARIES
INDEX TO FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
 
  Page
Number
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
WHERE YOU CAN FIND MORE INFORMATION
Investors and others should note that we announce material financial information to our investors using our corporate website, press releases, SEC filings and public conference calls and webcasts. We also use these channels and social media channels as a means of disclosing information about our company, products, planned financial and other announcements, attendance at upcoming investor and industry conferences and other matters, as well as for complying with our disclosure obligations under Regulation FD promulgated under the Securities Exchange Act of 1934, as amended. Our corporate website and social media channels can be found at:
our Investor Relations page (http://investors.levistrauss.com);
our Twitter account (https://twitter.com/LeviStraussCo);
our company blog (https://www.levistrauss.com/unzipped-blog/);
our Facebook page (https://www.facebook.com/levistraussco/);
our LinkedIn page (https://www.linkedin.com/company/levi-strauss-&-co-);
our Instagram page (https://www.instagram.com/levistraussco/); and
our YouTube channel (https://www.youtube.com/user/levistraussvideo).
The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this Quarterly Report.



PART I — FINANCIAL INFORMATION

Item 1.CONSOLIDATED FINANCIAL STATEMENTS
LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
May 26,
2024
November 26,
2023
 (Dollars in millions)
ASSETS
Current Assets:
Cash and cash equivalents$641.4 $398.8 
Trade receivables, net581.8 752.7 
Inventories1,220.0 1,290.1 
Other current assets206.8 196.0 
Total current assets2,650.0 2,637.6 
Property, plant and equipment, net686.4 680.7 
Goodwill317.6 303.7 
Other intangible assets, net275.4 267.6 
Deferred tax assets, net774.2 729.5 
Operating lease right-of-use assets, net1,062.7 1,033.9 
Other non-current assets419.6 400.6 
Total assets$6,185.9 $6,053.6 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable623.1 567.9 
Accrued salaries, wages and employee benefits205.7 214.9 
Accrued sales returns and allowances165.8 189.8 
Short-term operating lease liabilities246.0 245.5 
Other accrued liabilities628.5 569.4 
Total current liabilities1,869.1 1,787.5 
Long-term debt1,006.0 1,009.4 
Long-term operating lease liabilities937.8 913.1 
Long-term employee related benefits and other liabilities419.3 297.2 
Total liabilities4,232.2 4,007.2 
Commitments and contingencies
Stockholders’ Equity:
Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 104,598,166 shares and 102,104,670 shares issued and outstanding as of May 26, 2024 and November 26, 2023, respectively; and 422,000,000 Class B shares authorized, 292,825,765 shares and 295,243,353 shares issued and outstanding, as of May 26, 2024 and November 26, 2023, respectively
0.4 0.4 
Additional paid-in capital708.0 686.7 
Retained earnings1,620.0 1,750.2 
Accumulated other comprehensive loss(374.7)(390.9)
Total stockholders’ equity1,953.7 2,046.4 
Total liabilities and stockholders’ equity$6,185.9 $6,053.6 




The accompanying notes are an integral part of these consolidated financial statements.

3

LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 Three Months EndedSix Months Ended
 May 26,
2024
May 28,
2023
May 26,
2024
May 28,
2023
(Dollars in millions, except per share amounts)
(Unaudited)
Net revenues$1,441.2 $1,336.8 $2,998.8 $3,025.7 
Cost of goods sold569.5 552.6 1,220.6 1,299.2 
Gross profit871.7 784.2 1,778.2 1,726.5 
Selling, general and administrative expenses794.7 767.8 1,585.4 1,541.4 
Restructuring charges, net55.1 6.5 171.3 17.8 
Operating income
21.9 9.9 21.5 167.3 
Interest expense(10.3)(13.2)(20.3)(23.9)
Other income (expense), net
0.4 (3.9)(1.9)(11.4)
Income (loss) before income taxes
12.0 (7.2)(0.7)132.0 
Income tax (benefit) expense
(6.0)(5.6)(8.0)18.9 
Net income (loss)
$18.0 $(1.6)$7.3 $113.1 
Earnings (loss) per common share:
Basic$0.05 $(0.00 )$0.02 $0.29 
Diluted$0.04 $(0.00 )$0.02 $0.28 
Weighted-average common shares outstanding:
Basic398,799,458 397,455,261 398,897,030 396,671,862 
Diluted402,907,212 397,455,261 402,972,543 401,141,666 

























The accompanying notes are an integral part of these consolidated financial statements.

4

LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
 
 Three Months EndedSix Months Ended
 May 26,
2024
May 28,
2023
May 26,
2024
May 28,
2023
(Dollars in millions)
(Unaudited)
Net income (loss)
$18.0 $(1.6)$7.3 $113.1 
Other comprehensive income (loss), before related income taxes:
Pension and postretirement benefits
2.0 2.3 4.0 4.6 
Derivative instruments
4.0 (26.7)17.8 (51.5)
Foreign currency translation gains (losses)
4.5 19.3 (1.8)47.4 
Unrealized gains on marketable securities
   0.7 
Total other comprehensive income (loss), before related income taxes
10.5 (5.1)20.0 1.2 
Income tax expense related to items of other comprehensive (loss) income
(1.9)1.9 (3.8)(1.2)
Comprehensive income (loss), net of taxes
$26.6 $(4.8)$23.5 $113.1 



































The accompanying notes are an integral part of these consolidated financial statements.

5

LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three Months Ended May 26, 2024
Class A
& Class B
Common
Stock
(In Shares)
Class A
& Class B
Common
Stock
Additional
Paid-In Capital
Retained
Earnings
Accumulated Other
Comprehensive Loss
Total
Stockholders’ Equity
(Shares & Dollars in millions)
(Unaudited)
Balance at February 25, 2024
398.0 $0.4 $692.3 $1,666.7 $(383.3)$1,976.1 
Net income
— — — 18.0 — 18.0 
Other comprehensive income, net of tax
— — — — 8.6 8.6 
Stock-based compensation and dividends, net0.1 — 16.9 — — 16.9 
Employee stock purchase plan0.1 — 1.9 — — 1.9 
Repurchase of common stock(0.8)— — (17.0)— (17.0)
Tax withholdings on equity awards— — (3.1)— — (3.1)
Cash dividends declared ($0.12 per share)
— — — (47.7)— (47.7)
Balance at May 26, 2024
397.4 $0.4 $708.0 $1,620.0 $(374.7)$1,953.7 

Six Months Ended May 26, 2024
Class A
& Class B
Common
Stock
(In Shares)
Class A
& Class B
Common
Stock
Additional
Paid-In Capital
Retained
Earnings
Accumulated Other
Comprehensive Loss
Total
Stockholders’ Equity
(Shares & Dollars in millions)
(Unaudited)
Balance at November 26, 2023
397.3 $0.4 $686.7 $1,750.2 $(390.9)$2,046.4 
Net income— — — 7.3 — 7.3 
Other comprehensive income, net of tax
— — — — 16.2 16.2 
Stock-based compensation and dividends, net2.2  35.5  — 35.5 
Employee stock purchase plan0.2 — 4.2 — — 4.2 
Repurchase of common stock(2.3) — (41.9)— (41.9)
Tax withholdings on equity awards— — (18.4)— — (18.4)
Cash dividends declared ($0.24 per share)
— — — (95.6)— (95.6)
Balance at May 26, 2024
397.4 $0.4 $708.0 $1,620.0 $(374.7)$1,953.7 


6

Three Months Ended May 28, 2023
Class A
& Class B
Common
Stock
(In Shares)
Class A
& Class B
Common
Stock
Additional
Paid-In Capital
Retained
Earnings
Accumulated Other
Comprehensive Loss
Total
Stockholders’ Equity
(Shares & Dollars in millions)
(Unaudited)
Balance at February 26, 2023
396.4 $0.4 $627.2 $1,758.4 $(418.5)$1,967.5 
Net loss
— — — (1.6)— (1.6)
Other comprehensive loss, net of tax
— — — — (3.2)(3.2)
Stock-based compensation and dividends, net0.2 — 20.9 (0.1)— 20.8 
Employee stock purchase plan0.1 — 2.2 — — 2.2 
Tax withholdings on equity awards— — (0.4)— — (0.4)
Cash dividends declared ($0.12 per share)
— — — (47.6)— (47.6)
Balance at May 28, 2023
396.7 $0.4 $649.9 $1,709.1 $(421.7)$1,937.7 

Six Months Ended May 28, 2023
Class A
& Class B
Common
Stock
(In Shares)
Class A
& Class B
Common
Stock
Additional
Paid-In Capital
Retained
Earnings
Accumulated Other
Comprehensive Loss
Total
Stockholders’ Equity
(Shares & Dollars in millions)
(Unaudited)
Balance at November 27, 2022
393.7 $0.4 $625.6 $1,699.4 $(421.7)$1,903.7 
Net income— — — 113.1 — 113.1 
Stock-based compensation and dividends, net3.2 — 38.5 (0.1)— 38.4 
Employee stock purchase plan0.3 — 4.8 — — 4.8 
Repurchase of common stock(0.5)— — (8.1)— (8.1)
Tax withholdings on equity awards— — (19.0)— — (19.0)
Cash dividends declared ($0.24 per share)
— — — (95.2)— (95.2)
Balance at May 28, 2023
396.7 $0.4 $649.9 $1,709.1 $(421.7)$1,937.7 









The accompanying notes are an integral part of these consolidated financial statements.

7

LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 Six Months Ended
 May 26,
2024
May 28,
2023
(Dollars in millions)
(Unaudited)
Cash Flows from Operating Activities:
Net income
$7.3 $113.1 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization88.7 79.4 
Property, plant, and equipment impairment, and early lease terminations, net
0.2 14.9 
Stock-based compensation35.5 38.4 
Deferred income taxes
(43.6)(36.5)
Other, net9.0 (11.3)
Net change in operating assets and liabilities451.7 (72.6)
Net cash provided by operating activities
548.8 125.4 
Cash Flows from Investing Activities:
Purchases of property, plant and equipment(111.8)(181.4)
Payment for business acquisition
(34.4)(5.2)
Proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting, net
5.9 34.3 
Proceeds from sale, maturity and collection of short-term investments 70.8 
Other investing, net(1.1) 
Net cash used for investing activities(141.4)(81.5)
Cash Flows from Financing Activities:
Proceeds from senior revolving credit facility 200.0 
Repayments of senior revolving credit facility (75.0)
Repurchase of common stock(41.9)(8.1)
Tax withholdings on equity awards(18.4)(19.0)
Dividends to stockholders(95.6)(95.2)
Other financing activities, net(7.0)3.2 
Net cash (used for) provided by financing activities
(162.9)5.9 
Effect of exchange rate changes on cash and cash equivalents and restricted cash(1.9)(7.8)
Net increase in cash and cash equivalents and restricted cash
242.6 42.0 
Beginning cash and cash equivalents
398.8 429.6 
Ending cash and cash equivalents
$641.4 $471.6 
Noncash Investing Activity:
Property, plant and equipment acquired and not yet paid at end of period$39.1 $39.9 
Supplemental disclosure of cash flow information:
Cash paid for income taxes during the period, net of refunds61.7 40.5 


The accompanying notes are an integral part of these consolidated financial statements.

8


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
NOTE 1: 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, dresses, jackets, activewear, footwear and related accessories for men, women and children around the world under the Levi’s®, Signature by Levi Strauss & Co.™, Denizen®, Dockers® and Beyond Yoga® brands.
Basis of Presentation and Principles of Consolidation
The interim consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries, including the notes, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim period financial statements and do not include all of the information and disclosures required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments necessary for a fair statement of the financial position and the results of operations for the periods presented have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended November 26, 2023, included in the Company’s 2023 Annual Report on Form 10-K.
The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. The results of operations for the three and six months ended May 26, 2024 may not be indicative of the results to be expected for any other interim period or the year ending December 1, 2024.
The Company’s fiscal year ends on the Sunday that is closest to November 30 of that year, although the fiscal years of certain foreign subsidiaries end on November 30. Each quarter of both fiscal years 2024 and 2023 consists of 13 weeks, with the exception of the fourth quarter of 2024, which will consist of 14 weeks. All references to years and quarters relate to fiscal years and quarters rather than calendar years and quarters.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes to the consolidated financial statements. Estimates are based upon historical factors, current circumstances and the experience and judgment of the Company’s management. Management evaluates its estimates and assumptions on an ongoing basis and may employ outside experts to assist in its evaluations. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods.
Expofaro S.A.S Distributor Acquisition
In December 2023, the Company signed a purchase agreement to acquire all operating assets related to Levi’s® brands from Expofaro S.A.S, the Company’s former distributor in Colombia, for $31.9 million in cash. This includes 40 Levi’s® retail stores and one e-commerce site, distribution with the country’s multi-brand retailers, and the logistical operations within these markets. The total fair value of assets acquired was $31.9 million and include goodwill, inventory, intangible and fixed assets. The goodwill and definite-lived intangibles recognized as a result of the acquisition were $15.9 million and $10.3 million, respectively. The transaction closed in the second quarter of 2024.
Distribution Center Conversion
On May 24, 2024, the Company entered into an agreement with a third party logistics provider to manage all aspects of the Company’s Dorsten, Germany distribution center. As of the second quarter of 2024, the Company received the first payment of $77.9 million from the provider for use of the Company’s warehouse equipment and technologies over the term of the agreement. The Company will maintain certain rights over the warehouse equipment and technologies and will retain the related equipment on the consolidated balance sheets. The upfront payment will be amortized as a reduction in the related distribution expenses over the expected term of the arrangement, which we expect to commence in the second half of the year. The upfront payment is recognized on the consolidated balance sheets in “Other accrued liabilities” and “Long-term employee

9


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
related benefits and other liabilities” and the proceeds are recorded as an operating activity in “Net change in operating assets and liabilities” on the consolidated statements of cash flows.
Long-Lived Assets
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may be impaired. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows and other quantitative and qualitative factors. Property, plant and equipment, net includes accumulated depreciation of $1.4 billion and $1.3 billion as of May 26, 2024 and November 26, 2023, respectively.
Supplier Finance Program
The Company adopted Accounting Standards Update No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations in the first quarter of 2024.
The Company offers a supplier financing program which enables the Company’s suppliers, at their sole discretion, to sell their receivables (i.e., the Company’s payment obligations to suppliers) to a financial institution on a non-recourse basis in order to be paid earlier than current payment terms provide.
The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by the supplier’s participation in these arrangements. The Company’s payment terms to the financial institutions, including the timing and amount of payments, are based on the original supplier invoices. Our current payment terms with a majority of our suppliers are typically 90 days. The Company has not pledged any assets and does not provide guarantees under the supplier finance program. As such, the outstanding payment obligations under the Company’s supplier finance program are included within Accounts Payable in the Consolidated Balance Sheets.
The Company’s outstanding payment obligations under this program were $124.0 million as of May 26, 2024 and $113.4 million as of November 26, 2023.
Share Repurchases
During the three and six months ended May 26, 2024, the Company repurchased 0.8 million and 2.3 million shares for $17.0 million and $41.9 million, plus broker’s commissions, respectively, in the open market. This equates to an average repurchase price of approximately $18.21 per share for the six months ended May 26, 2024. During the six months ended May 28, 2023, the Company repurchased 0.5 million shares for $8.1 million, plus broker's commissions, in the open market during the first quarter. This equates to an average repurchase price of approximately $17.97 per share. During the second quarter of 2023, there were no shares repurchased.
The Company accounts for share repurchases by charging entirely to retained earnings the excess of the repurchase price over the repurchased Class A common stock’s par value. All repurchased shares are retired and become authorized but unissued shares. The Company accrues for the shares purchased under the share repurchase plan based on the trade date. The Company may terminate or limit the share repurchase program at any time.
Reclassification
Certain amounts on the consolidated balance sheets, consolidated statements of operations and statements of cash flows have been conformed to the May 26, 2024 presentation.
Recently Issued Accounting Standards
There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the 2023 Annual Report on Form 10-K.

10


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
NOTE 2: FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the Company’s financial instruments that are carried at fair value:
 May 26, 2024November 26, 2023
  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 millions)
Financial assets carried at fair value
Rabbi trust assets$88.0 $88.0 $ $78.7 $78.7 $ 
Derivative instruments(3)
7.0  7.0 13.8  13.8 
Total$95.0 $88.0 $7.0 $92.5 $78.7 $13.8 
Financial liabilities carried at fair value
Derivative instruments(3)
9.8  9.8 9.1  9.1 
Total$9.8 $ $9.8 $9.1 $ $9.1 
_____________
(1)Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of marketable equity securities.
(2)Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly, and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices.
(3)The Company’s cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 3 for more information.
The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost:
 May 26, 2024November 26, 2023
 Carrying
Value
Estimated Fair
 Value
Carrying
Value
Estimated Fair
 Value
 (Dollars in millions)
Financial liabilities carried at adjusted historical cost
3.375% senior notes due 2027(1)
$514.6 $507.5 $518.3 $500.2 
3.50% senior notes due 2031(1)
499.0 408.1 498.7 407.2 
Short-term borrowings2.4 2.4 12.6 12.6 
Total$1,016.0 $918.0 $1,029.6 $920.0 
_____________
(1)Fair values are estimated using Level 2 inputs and incorporate mid-market price quotes. Level 2 inputs are inputs other than quoted prices, that are observable for the liability, either directly or indirectly and include among other things, quoted prices for similar liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable.

11


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
NOTE 3: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
As of May 26, 2024, the Company had forward foreign exchange contracts derivatives to buy $630.4 million and to sell $535.7 million in various foreign currencies. These contracts are at various exchange rates and expire at various dates through May 2025.
The table below provides data about the carrying values of derivative and non-derivative instruments: 
 May 26, 2024November 26, 2023
 Assets(Liabilities)Derivative
Net Carrying
Value
Assets(Liabilities)Derivative
Net Carrying
Value
 Carrying
Value
Carrying
Value
Carrying
Value
Carrying
Value
 (Dollars in millions)
Derivatives designated as hedging instruments
Foreign exchange risk cash flow hedges(1)
$6.2 $ $6.2 $6.0 $ $6.0 
Foreign exchange risk cash flow hedges(2)
 (8.2)(8.2) (7.1)(7.1)
Total
$6.2 $(8.2)$6.0 $(7.1)
Derivatives not designated as hedging instruments
Forward foreign exchange contracts(1)
$7.0 $(6.2)$0.8 $13.8 $(6.0)$7.8 
Forward foreign exchange contracts(2)
8.2 (9.9)(1.6)7.1 (9.1)(2.0)
Total
$15.2 $(16.1)$20.9 $(15.1)
Non-derivatives designated as hedging instruments
Euro senior notes
$ $(513.7)$ $(517.8)
_____________
(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 "Long-term employee related benefits and other liabilities" on the Company’s consolidated balance sheets.
The Company’s over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sheets based on maturity dates, including those subject to master netting arrangements. The table below presents the gross and net amounts of these contracts recognized on the Company’s consolidated balance sheets by type of financial instrument:
May 26, 2024November 26, 2023
Gross Amounts of Assets / (Liabilities)
Presented in the Balance Sheet
Gross Amounts
Not Offset in the Balance Sheet
Net Amounts
of Assets / (Liabilities)
Gross Amounts of Assets / (Liabilities)
Presented in the Balance Sheet
Gross Amounts
Not Offset in the Balance Sheet
Net Amounts
of Assets / (Liabilities)
(Dollars in millions)
Foreign exchange risk contracts and forward foreign exchange contracts
Financial assets$21.4 $(7.9)$13.5 $26.9 $(13.1)$13.8 
Financial liabilities(24.3)7.9 (16.4)(22.2)13.1 (9.1)
Total$(2.9)$4.7 

12


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as cash flow and net investment hedges included in “Accumulated other comprehensive loss” (“AOCL”) on the Company’s consolidated balance sheets, and in “Other expense, net” in the Company’s consolidated statements of operations:
 
Amount of (Loss) Gain
Recognized in AOCL
(Effective Portion)
Amount of Gain (Loss) Reclassified from
 AOCL into Net (Loss) Income(1)
 
As of
May 26,
2024
As of
November 26,
 2023
Three Months EndedSix Months Ended
May 26,
2024
May 28,
2023
May 26,
2024
May 28,
2023
 (Dollars in millions)
Foreign exchange risk contracts$(1.5)$(15.0)$6.6 $13.6 $18.0 $24.8 
Realized forward foreign exchange swaps(2)
4.6 4.6     
Yen-denominated Eurobonds(19.8)(19.8)    
Euro-denominated senior notes(26.6)(30.8)    
Cumulative income taxes16.0 19.0     
Total$(27.3)$(42.0)
_____________
(1)Amounts reclassified from AOCL were classified as net revenues or costs of goods sold on the consolidated statements of operations.
(2)Prior to 2006, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCL and are not reclassified to earnings until the related net investment position has been liquidated.
There was no hedge ineffectiveness for the six months ended May 26, 2024. Within the next 12 months, a $0.9 million loss from cash flow hedges is expected to be reclassified from AOCL into net income (loss).
The table below presents the effects of the Company’s cash flow hedges of foreign exchange risk contracts on the consolidated statements of operations:
Three Months EndedSix Months Ended
May 26,
2024
May 28,
2023
May 26,
2024
May 28,
2023
(Dollars in millions)
Amount of (Loss) Gain on Cash Flow Hedge Activity
Net revenues$(1.2)$0.8 $(2.8)$2.4 
Cost of goods sold$(5.4)$12.9 $(15.1)$22.4 

13


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
The table below provides data about the amount of gains and losses related to derivatives instruments included in “Other expense, net” in the Company’s consolidated statements of operations:
 Three Months EndedSix Months Ended
 May 26,
2024
May 28,
2023
May 26,
2024
May 28,
2023
 (Dollars in millions)
Realized gain(1)
$6.3 $13.1 $9.2 $22.6 
Unrealized loss
(3.5)(1.2)(6.4)(6.8)
Total$2.8 $11.9 $2.8 $15.8 
_____________
(1)Realized gains related to derivatives instruments were classified as Other, net on the Company’s consolidated statements of cash flows.
NOTE 4: OTHER ACCRUED LIABILITIES
The following table presents the Company’s other accrued liabilities:
May 26,
2024
November 26,
2023
 (Dollars in millions)
Other accrued liabilities
Accrued non-trade payables$172.2 $177.7 
Restructuring liabilities111.3 16.6 
Accrued advertising and promotion63.2 44.7 
Taxes other than income taxes payable57.9 63.3 
Accrued property, plant and equipment39.1 59.6 
Accrued income taxes36.9 41.8 
Fair value derivatives9.8 9.1 
Accrued rent8.5 9.9 
Accrued interest payable8.0 8.2 
Short-term debt2.4 12.5 
Other119.2 126.0 
Total other accrued liabilities$628.5 $569.4 


14


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
NOTE 5: DEBT 
The following table presents the Company’s debt: 
May 26,
2024
November 26,
2023
 (Dollars in millions)
Long-term debt
3.375% senior notes due 2027
$511.1 $514.9 
3.50% senior notes due 2031
494.9 494.5 
Total long-term debt$1,006.0 $1,009.4 
Short-term debt
Short-term borrowings2.4 12.5 
Total debt$1,008.4 $1,021.9 

Senior Revolving Credit Facility
As of May 26, 2024, the Company had no borrowings under the Credit Facility. The Company’s unused availability under the Credit Facility was $791.2 million at May 26, 2024, as the total availability of $809.3 million was reduced by $18.1 million of letters of credit and other credit usage allocated under the Credit Facility.
Interest Rates on Borrowings
The Company’s weighted-average interest rate on average borrowings outstanding during the three and six months ended May 26, 2024 was 4.06% and 3.98%, respectively, as compared to 4.50% and 4.19%, respectively, during the same period of 2023.
NOTE 6: RESTRUCTURING ACTIVITIES
In the first quarter of 2024, our Board of Directors (the "Board") approved a multi-year global productivity initiative, “Project Fuel”, designed to accelerate the execution of our Brand Led and DTC First strategies while fueling long-term profitable growth. The first phase of the global productivity initiative occurred in the first half of 2024. The two-year initiative is expected to continue through the end of 2025. As this initiative progresses, the Company may incur additional restructuring charges, which could be significant to a future fiscal quarter or year.
During the three-month and six-month periods ended May 26, 2024, we recognized restructuring charges of $55.1 million and $171.3 million, respectively, related to Project Fuel, consisting primarily of severance and other post-employment benefit charges. As of May 26, 2024, the Company recorded $154.0 million in restructuring liabilities. The liabilities and charges are included in “Other accrued liabilities” and “Long-term employee related benefits and other liabilities” in the Company’s consolidated balance sheet and “Restructuring charges, net” in the Company’s consolidated statements of operations.
For the three-month and six-month periods ended May 28, 2023, the Company recognized net restructuring charges of $6.5 million and $17.8 million, respectively, which primarily related to severance benefits, based on separation benefits provided by Company policy or statutory benefit plans as well as contract termination costs. During the six-month period ended May 28, 2023, the Company also recognized $18.8 million in charges related to the impairment of capitalized internal-use software, as a result of the decision to discontinue certain technology projects. Both charges were recorded in “Restructuring charges, net” in the accompanying consolidated statements of operations.
The following tables summarize the activities associated with restructuring liabilities for the three-month and six-month periods May 26, 2024. "Net Charges (Reversals)" represents the initial charge related to the restructuring activity as well as revisions of estimates related to severance and employee-related benefits and other, "Payments" consists of cash payments for severance and employee-related benefits and other, and "Foreign Currency Fluctuations" includes foreign currency fluctuations.

15


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
 
Three Months Ended May 26, 2024
 Liabilities
Net Charges (Reversals)
Payments
Foreign Currency Fluctuations
Liabilities
February 25,
2024
May 26,
2024
 
(Dollars in millions)
Severance and employee-related benefits
$123.0 $32.6 $(22.6)$0.6 $133.6 
Contract termination costs and other
 22.5 (2.1) 20.4 
Total
$123.0 $55.1 $(24.7)$0.6 $154.0 
 
Six Months Ended May 26, 2024
 Liabilities
Net Charges (Reversals)(1)
Payments
Foreign Currency Fluctuations
Liabilities
November 26,
2023
May 26,
2024
 
(Dollars in millions)
Severance and employee-related benefits
$17.8 $146.0 $(31.0)$0.8 $133.6 
Contract termination costs and other
0.2 22.5 (2.2)(0.1)20.4 
Total
$18.0 $168.5 $(33.2)$0.7 $154.0 
_____________
(1)Excludes $2.0 million in stock compensation related charge recorded in Additional paid-in capital and $0.8 million in operating lease termination for the six-month period ended May 26, 2024.
NOTE 7: COMMITMENTS AND CONTINGENCIES
Forward Foreign Exchange Contracts
The Company uses cash flow hedge derivative instruments to manage its exposure to foreign currencies. The Company is exposed to credit loss in the event of nonperformance by the counterparties to the forward foreign exchange contracts. However, the Company believes that its exposures are appropriately diversified across counterparties and that these counterparties are creditworthy financial institutions. See Note 3 for additional information.
Other Contingencies
Litigation. In the ordinary course of business, the Company has various claims, complaints and pending cases, including contractual matters, facility and employee-related matters, distribution matters, product liability matters, intellectual property matters, bankruptcy preference matters, and tax and administrative matters. The Company establishes loss provisions for these ordinary course claims as well as other matters in which losses are probable and can be reasonably estimated. The Company does not believe any of these pending claims, complaints and legal proceedings will have a material impact on its financial condition, results of operations or cash flows.
Customs Duty Audits. The Company imports both raw materials and finished garments into all of its geographic regions and, as such, is subject to numerous countries’ complex customs laws and regulations with respect to its import and export activity. The Company has various pending audit assessments in connection with these activities. As of May 26, 2024, the Company has recorded certain reserves for these matters which are not material. The Company does not believe any of the claims for customs duty and related charges will have a material impact on its financial condition, results of operations or cash flows.
NOTE 8: DIVIDENDS
Dividends are declared at the discretion of the Board. In January and April for both 2024 and 2023, the Company declared cash dividends, each $0.12 per share, to holders of record of its Class A and Class B common stock. During the three and six months ended May 26, 2024, dividends were paid in the amount of $47.7 million and $95.6 million, respectively, compared to $47.6 million and $95.2 million, respectively, for the same prior-year period.

16


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
The Company does not have an established dividend policy. The Board reviews the Company’s ability to pay dividends on an ongoing basis and establishes the dividend amount based on the Company’s financial condition, results of operations, capital requirements, current and projected cash flows and other factors, and any restrictions related to the terms of the Company’s debt agreements.
Subsequent to the Company’s quarter end, a cash dividend of $0.13 per share was declared to holders of record of its Class A and Class B common stock at the close of business on August 2, 2024. The cash dividend will be payable on August 20, 2024, for a total quarterly dividend of approximately $52 million.

17


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
NOTE 9: ACCUMULATED OTHER COMPREHENSIVE LOSS
The following is a summary of the components of "Accumulated other comprehensive loss," net of related income taxes: 
Three Months Ended May 26, 2024
Pension and
Postretirement
Benefits(1)
Translation Adjustments
Unrealized
(Loss) Gain on
Marketable
Securities(1)
Derivative Instruments(2)
Foreign
Currency
Translation
Total
(Dollars in millions)
Accumulated other comprehensive loss at February 25, 2024
$(151.7)$(30.3)$(201.3)$ $(383.3)
Other comprehensive income (loss) before reclassifications
(0.9)(3.6)4.0  (0.5)
Amounts reclassified from accumulated other comprehensive loss
2.4 6.7   9.1 
Net increase (decrease) in other comprehensive income (loss)
1.5 3.1 4.0  8.6 
Accumulated other comprehensive loss at May 26, 2024
$(150.2)$(27.2)$(197.3)$ $(374.7)
Six Months Ended May 26, 2024
Pension and
Postretirement
Benefits(1)
Translation Adjustments
Unrealized
(Loss) Gain on
Marketable
Securities(1)
Derivative Instruments(2)
Foreign
Currency
Translation
Total
(Dollars in millions)
Accumulated other comprehensive loss at November 26, 2023
$(153.2)$(42.0)$(195.7)$ $(390.9)
Other comprehensive (loss) income before reclassifications
(1.4)(3.2)(1.6) (6.2)
Amounts reclassified from accumulated other comprehensive (loss) income 4.4 18.0   22.4 
Net increase (decrease) in other comprehensive (loss) income3.0 14.8 (1.6) 16.2 
Accumulated other comprehensive loss at May 26, 2024
$(150.2)$(27.2)$(197.3)$ $(374.7)
____________
(1)Amounts reclassified were recorded in other expense, net.
(2)Amounts reclassified were recorded within net revenues and cost of goods sold. For more information, refer to Note 3.

18


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
Three Months Ended May 28, 2023
Pension and
Postretirement
Benefits(1)
Translation Adjustments
Unrealized
Gain (Loss) on
Marketable
Securities(1)
Derivative Instruments(2)
Foreign
Currency
Translation
Total
(Dollars in millions)
Accumulated other comprehensive loss at February 26, 2023
$(177.7)$(12.4)$(228.4)$ $(418.5)
Other comprehensive income (loss) before reclassifications
(0.6)(7.6)16.4  8.2 
Amounts reclassified from accumulated other comprehensive loss
2.3 (13.7)  (11.4)
Net increase (decrease) in other comprehensive income (loss)
1.7 (21.3)16.4  (3.2)
Accumulated other comprehensive loss at May 28, 2023
$(176.0)$(33.7)$(212.0)$ $(421.7)
Six Months Ended May 28, 2023
Pension and
Postretirement
Benefits(1)
Translation Adjustments
Unrealized
Gain (Loss) on
Marketable
Securities(1)
Derivative Instruments(2)
Foreign
Currency
Translation
Total
(Dollars in millions)
Accumulated other comprehensive loss at November 27, 2022
$(179.5)$7.2 $(248.7)$(0.7)$(421.7)
Other comprehensive (loss) income before reclassifications(1.1)(16.1)36.7 0.1 19.6 
Amounts reclassified from accumulated other comprehensive loss
4.6 (24.8) 0.6 (19.6)
Net increase (decrease) in other comprehensive (loss) income
3.5 (40.9)36.7 0.7  
Accumulated other comprehensive loss at May 28, 2023
$(176.0)$(33.7)$(212.0)$ $(421.7)
_____________
(1)Amounts reclassified were recorded in other expense, net.
(2)Amounts reclassified were recorded within net revenues and cost of goods sold. For more information, refer to Note 3.

19


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
NOTE 10: NET REVENUES
Disaggregated Revenue
The table below provides the Company’s revenues disaggregated by segment and channel.
Three Months Ended May 26, 2024
Levi’s Brands
AmericasEuropeAsiaOther BrandsTotal
(Dollars in millions)
Net revenues by channel:
Wholesale$431.7 $152.6 $112.2 $72.2 $768.7 
Direct-to-consumer280.5 201.1 147.8 43.1 672.5 
Total net revenues$712.2 $353.7 $260.0 $115.3 $1,441.2 
Six Months Ended May 26, 2024
Levi’s Brands
AmericasEuropeAsiaOther BrandsTotal
(Dollars in thousands)
Net revenues by channel:
Wholesale$839.5 $359.6 $244.5 $128.6 $1,572.2 
Direct-to-consumer608.5 417.6 304.3 96.2 1,426.6 
Total net revenues$1,448.0 $777.2 $548.8 $224.8 $2,998.8 
Three Months Ended May 28, 2023
Levi’s Brands
AmericasEuropeAsiaOther BrandsTotal
(Dollars in millions)
Net revenues by channel:
Wholesale$366.7 $172.5 $112.3 $63.8 $715.3 
Direct-to-consumer242.2 188.8 149.4 41.1 621.5 
Total net revenues$608.9 $361.3 $261.7 $104.9 $1,336.8 
Six Months Ended May 28, 2023
Levi’s Brands
AmericasEuropeAsiaOther BrandsTotal
(Dollars in thousands)
Net revenues by channel:
Wholesale$897.3 $416.6 $246.3 $140.0 $1,700.2 
Direct-to-consumer534.6 399.8 304.9 86.2 1,325.5 
Total net revenues$1,431.9 $816.4 $551.2 $226.2 $3,025.7 
The Company did not have any material contract assets or contract liabilities recorded in the consolidated balance sheets as of May 26, 2024 and November 26, 2023.

20


LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024
NOTE 11: INCOME TAXES
The Company’s effective income tax rate was (49.4)% for the three months ended May 26, 2024, compared to 78.4% for the same prior-year period. The decrease in the effective tax rate in the current quarter is primarily driven by a tax benefit of $7.5 million related to a favorable resolution of a state audit in the current year and the inclusion of discrete tax benefits recognized on $7.2 million of loss before income tax in the prior year.
The Company’s effective income tax rate was 1,126.3% for the six months ended May 26, 2024, compared to 14.3% for the same prior-year period. The increase in the effective tax rate is primarily driven by a tax benefit of $7.5 million related to a favorable resolution of a state audit.
NOTE 12: EARNINGS (LOSS) PER SHARE
The following table sets forth the computation of the Company’s basic and diluted earnings (loss) per share:
 Three Months EndedSix Months Ended
 May 26,
2024
May 28,
2023
May 26,
2024
May 28,
2023
 (Dollars in millions, except per share amounts)
Numerator: