Levi Strauss Investor Day Presentation Deck slide image

Levi Strauss Investor Day Presentation Deck

ADJUSTED EBIT AND ADJUSTED EBITDA (CONT.) (1) (2) (3) Includes $14.7 million in pension settlement losses related to the voluntary lump-sum, cash-out program offered to vested deferred US pension plan participants during the year ended November 29, 2020. See Note 10 to our audited consolidated financial statements included in this report for further information. Includes the impact of the changes in fair value of Class B common stock following the grant date on awards that were granted as cash-settled and subsequently replaced with stock-settled awards concurrent with the IPO. For the year ended November 28, 2021, the net reduction in COVID-19 related inventory costs and other charges recognized mainly represents reductions in COVID-19 related inventory charges, as a result of reductions in our estimate of adverse fabric purchase commitments and allowances related to customer receivables partially offset with impairment charges of certain retail store related assets. For the year ended November 29, 2020, COVID-19 related inventory costs and other charges primarily include $42.3 million of incremental inventory reserves, $26.2 million of adverse fabric purchase commitments, $44.3 million and $21.7 million in impairment of operating lease right-of-use assets and property and equipment related to certain retail locations and other corporate assets, respectively, and $17.7 million of charges related to customer receivables. The remainder relates to other incremental costs incurred in response to the global pandemic. LEVI STRAUSS & CO. (4) (5) (6) Acquisition and integration related charges includes the inventory markup above historical carrying value as well as SG&A expenses associated with the Beyond YogaⓇ acquisition. Other charges included in Restructuring and restructuring related charges, severance and other, net include charges related to an international customs audit and transaction and deal related costs. Depreciation and amortization amount net of amortization included in Restructuring and restructuring related charges, severance and other, net. ©2022 Levi Strauss & Co. CONFIDENTIAL 164
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