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LEVI STRAUSS & CO. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
November 26, November 27,
2023 2022
(Dollars in millions)
ASSETS
Current Assets:
Cash and cash equivalents $ 398.8 $ 429.6
Short-term investments in marketable securities — 70.6
Trade receivables, net 752.7 697.0
Inventories 1,290.1 1,416.8
Other current assets 196.0 213.9
Total current assets 2,637.6 2,827.9
Property, plant and equipment, net 680.7 622.8
Goodwill 303.7 365.7
Other intangible assets, net 267.6 286.7
Deferred tax assets, net 729.5 625.0
Operating lease right-of-use assets, net 1,033.9 970.0
Other non-current assets 400.6 339.7
Total assets $ 6,053.6 $ 6,037.8

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable 567.9 657.2
Accrued salaries, wages and employee benefits 214.9 246.7
Accrued sales returns and allowances 189.8 180.0
Short-term operating lease liabilities 245.5 235.7
Other accrued liabilities 569.4 662.0
Total current liabilities 1,787.5 1,981.6
Long-term debt 1,009.4 984.5
Postretirement medical benefits 33.6 36.3
Pension liabilities 111.1 113.1
Long-term employee related benefits 102.2 104.9
Long-term operating lease liabilities 913.1 859.1
Other long-term liabilities 50.3 54.6
Total liabilities 4,007.2 4,134.1

Commitments and contingencies

Stockholders’ Equity:
Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized; 102,104,670 shares and 96,028,351
shares issued and outstanding as of November 26, 2023 and November 27, 2022, respectively; and 422,000,000 Class
B shares authorized, 295,243,353 shares and 297,703,442 shares issued and outstanding, as of November 26, 2023 and
November 27, 2022, respectively 0.4 0.4
Additional paid-in capital 686.7 625.6
Accumulated other comprehensive loss (390.9) (421.7)
Retained earnings 1,750.2 1,699.4
Total stockholders’ equity 2,046.4 1,903.7
Total liabilities and stockholders’ equity $ 6,053.6 $ 6,037.8

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

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CONSOLIDATED STATEMENTS OF INCOME

Year Ended
November 26, November 27, November 28,
2023 2022 2021
(Dollars in millions, except per share amounts)
Net revenues $ 6,179.0 $ 6,168.6 $ 5,763.9
Cost of goods sold 2,663.3 2,619.8 2,417.2
Gross profit 3,515.7 3,548.8 3,346.7
Selling, general and administrative expenses 3,072.2 2,890.7 2,660.5
Goodwill and other intangible asset impairment charges 90.2 11.6 —
Operating income 353.3 646.5 686.2
Interest expense (45.9) (25.7) (72.9)
Loss on early extinguishment of debt — — (36.5)
Other (expense) income, net (42.2) 28.8 3.4
Income before income taxes 265.2 649.6 580.2
Income tax expense 15.6 80.5 26.7
Net income $ 249.6 $ 569.1 $ 553.5
Earnings per common share attributable to common stockholders:
Basic $ 0.63 $ 1.43 $ 1.38
Diluted $ 0.62 $ 1.41 $ 1.35
Weighted-average common shares outstanding:
Basic 397,208,535 397,341,137 401,634,760
Diluted 401,723,167 403,844,782 409,778,169

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

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year Ended
November 26, November 27, November 28,
2023 2022 2021
(Dollars in millions)
Net income $ 249.6 $ 569.1 $ 553.5
Other comprehensive income (loss), before related income taxes:
Pension and postretirement benefits 34.6 22.1 35.1
Derivative instruments (61.0) 36.1 69.7
Foreign currency translation gains (losses) 66.2 (65.0) (51.0)
Unrealized gains (losses) on marketable securities 0.8 (0.7) 5.7
Available-for-sale security adjustments — (19.9) —
Total other comprehensive income (loss), before related income taxes 40.6 (27.4) 59.5
Income tax (expense) benefit related to items of other comprehensive income (loss) (9.8) 3.0 (12.4)
Comprehensive income, net of income taxes $ 280.4 $ 544.7 $ 600.6

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

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Class A
& Class B Additional Total
Common Paid-In Retained Accumulated Other Stockholders'
Stock Capital Earnings Comprehensive Loss Equity
(Dollars in millions)
Balance at November 29, 2020 $ 0.4 $ 626.2 $ 1,114.3 $ (441.4) $ 1,299.5
Net Income — — 553.5 — 553.5
Other comprehensive income, net of tax — — — 47.0 47.0
Stock-based compensation and dividends, net — 60.1 (0.1) — 60.0
Employee stock purchase plan — 7.7 — — 7.7
Repurchase of common stock — — (88.4) — (88.4)
Tax withholdings on equity awards — (109.2) — — (109.2)
Cash dividends paid ($0.26 per share) — — (104.4) — (104.4)
Balance at November 28, 2021 0.4 584.8 1,474.9 (394.4) 1,665.7
Net income — — 569.1 — 569.1
Other comprehensive loss, net of tax — — — (24.4) (24.4)
Stock-based compensation and dividends, net — 60.8 (0.1) — 60.7
Employee stock purchase plan — 9.0 — — 9.0
Repurchase of common stock — — (173.1) — (173.1)
Tax withholdings on equity awards — (29.0) — — (29.0)
Adjustment of accumulated other comprehensive gain to retained
earnings for available-for-sale securities — — 2.9 (2.9) —
Cash dividends paid ($0.44 per share) — — (174.3) — (174.3)
Balance at November 27, 2022 0.4 625.6 1,699.4 (421.7) 1,903.7
Net income — — 249.6 — 249.6
Other comprehensive income, net of tax — — — 30.8 30.8
Stock-based compensation and dividends, net — 74.6 (0.2) — 74.4
Employee stock purchase plan — 9.0 — — 9.0
Repurchase of common stock — — (8.1) — (8.1)
Tax withholdings on equity awards — (22.5) — — (22.5)
Cash dividends paid ($0.48 per share) — — (190.5) — (190.5)
Balance at November 26, 2023 $ 0.4 $ 686.7 $ 1,750.2 $ (390.9) $ 2,046.4

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

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CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended
November 26, November 27, November 28,
2023 2022 2021
(Dollars in millions)
Cash Flows from Operating Activities:
Net income $ 249.6 $ 569.1 $ 553.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 165.3 158.9 143.2
Goodwill and other intangible asset impairment 90.2 11.6 —
Property, plant, equipment and right-of-use asset impairment, and gain/loss on early lease
terminations, net 66.4 26.2 21.9
Stock-based compensation 74.4 60.8 60.1
Benefit from deferred income taxes (104.3) (59.8) (87.9)
Loss on early extinguishment of debt — — 36.4
Other, net 2.4 11.6 33.9
Net change in operating assets and liabilities (108.5) (550.3) (23.8)
Net cash provided by operating activities 435.5 228.1 737.3
Cash Flows from Investing Activities:
Purchases of property, plant and equipment (315.5) (268.3) (166.9)
Payments for business acquisition (12.1) — (390.9)
Proceeds (payments) on settlement of forward foreign exchange contracts not designated for
hedge accounting 16.1 12.4 (17.9)
Payments to acquire short-term investments — (72.8) (123.0)
Proceeds from sale, maturity and collection of short-term investments 70.8 93.0 126.9
Net cash used for investing activities (240.7) (235.7) (571.8)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt, net of issuance costs — — 489.3
Repayments of long-term debt including extinguishment costs — — (1,023.3)
Proceeds from senior revolving credit facility 200.0 404.0 —
Repayments of senior revolving credit facility (200.0) (404.0) —
Repurchase of common stock (8.1) (175.7) (85.9)
Tax withholdings on equity awards (22.5) (29.0) (109.3)
Dividend to stockholders (190.5) (174.3) (104.4)
Other financing, net 7.0 13.6 (7.3)
Net cash used for financing activities (214.1) (365.4) (840.9)
Effect of exchange rate changes on cash and cash equivalents and restricted cash (11.6) (7.6) (11.6)
Net decrease in cash and cash equivalents and restricted cash (30.9) (380.6) (687.0)
Beginning cash and cash equivalents, and restricted cash 430.0 810.6 1,497.6
Ending cash and cash equivalents, and restricted cash 399.1 430.0 810.6
Less: Ending restricted cash (0.3) (0.4) (0.3)
Ending cash and cash equivalents $ 398.8 $ 429.6 $ 810.3

Noncash Investing Activity:

Property, plant and equipment acquired and not yet paid at end of period $ 59.6 $ 93.3 $ 72.3

Supplemental disclosure of cash flow information:

Cash paid for interest during the period $ 42.8 $ 37.5 $ 54.4
Cash paid for income taxes during the period, net of refunds 89.3 129.3 109.6

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

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LEVI STRAUSS & CO. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED NOVEMBER 26, 2023, NOVEMBER 27, 2022 AND NOVEMBER 28, 2021

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, activewear, tops, shorts, skirts, jackets, 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.
In the fourth quarter of fiscal 2021, the Company acquired Beyond Yoga®, which has been consolidated since the date of acquisition. Beyond Yoga®
generates revenue from the sale of activewear in the United States. Please refer to Note 4 for more information.
The Company operates 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. The Dockers® and Beyond Yoga® businesses do not meet
the quantitative thresholds for reportable segments and therefore are presented under the caption of Other Brands.

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’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. Fiscal years 2023, 2022 and 2021 were 52-week years, ending on November 26, 2023, November 27, 2022 and November 28, 2021,
respectively. Each quarter of fiscal years 2023, 2022 and 2021 consisted of 13 weeks. All references to years relate to fiscal years rather than calendar years.

COVID-19 Update
In fiscal year 2020, the World Health Organization declared COVID-19 a global pandemic and government authorities around the world imposed
lockdowns and restrictions. The COVID-19 pandemic continued to affect the Company's business and results of operations during 2021 and 2022, although to
a lesser extent than in 2020. During 2021, company-operated stores and third-party retail locations throughout various markets were impacted by temporary
closures, reduced hours and reduced occupancy levels. During 2022, temporary store closures and reduced traffic were mainly limited within China as a result
of their zero-tolerance policy shutdowns while most of the Company's company-operated stores and wholesale customer doors across other markets remained
open throughout the year. During 2023, company-operated stores and wholesale customer doors were open.

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