Levi Strauss Investor Day Presentation Deck slide image

Levi Strauss Investor Day Presentation Deck

ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (CONT.) (1) (2) Includes the impact of 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 twelve-month period 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. (3) (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. Pension settlement losses relate to the voluntary lump-sum, cash-out program offered to vested deferred US pension plan participants. Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits. ©2022 Levi Strauss & Co. CONFIDENTIAL 167
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