Levi Strauss Investor Day Presentation Deck
ADJUSTED NET INCOME AND ADJUSTED
DILUTED EARNINGS PER SHARE
We define Adjusted net income as net income (loss)
excluding underwriter commission paid on behalf of selling
stockholders, loss on early extinguishment of debt,
charges related to the impact of changes in fair value on
cash-settled stock-based compensation, COVID-19
related inventory costs and other charges, acquisition and
integration related charges, and restructuring and
restructuring related charges, severance and other, net,
pension settlement losses, and re-measurement of our
deferred tax assets and liabilities based on the lower rates
as a result of the Tax Act, adjusted to give effect to the
income tax impact of such adjustments. To calculate the
income tax impact of such adjustments on a year-to-date
basis, we utilize an effective tax rate equal to our income
tax expense excluding material discrete costs and
benefits, with any impacts of changes in effective tax rate
being recognized in the current period. We define Adjusted
net income margin as Adjusted net income as a
percentage of net revenues. We define Adjusted diluted
earnings per share as Adjusted net income per weighted-
average number of diluted common shares outstanding.
The following table presents a reconciliation of net income
(loss), the most directly comparable financial measure
calculated in accordance with GAAP, to Adjusted net
income for each of the periods presented and the
calculation of Adjusted diluted earnings per share for each
of the periods presented.
LEVI STRAUSS & CO.
(Dollars in millions)
MOST COMPARABLE GAAP MEASURE
Net income (loss)
NON-GAAP MEASURE
Net income (loss)
Underwriter commission paid on behalf of selling stockholders
Loss on early extinguishment of debt
Impact of changes in fair value on cash-settled stock-based
compensation (¹)
COVID-19 related inventory costs and other charges (2)
Acquisition and integration related charges (³)
Restructuring and restructuring related charges, severance
and other, net(4)
Pension settlement losses (5)
Tax impact of adjustments (6)
ADJUSTED NET INCOME
Adjusted net income margin
Adjusted diluted earnings per share
2021
$553.5
$553.5
36.5
4.2
(9.7)
7.7
24.5
(15.8)
$600.9
10.4%
$1.47
2020
$(127.1)
$ (127.1)
7.1
159.6
99.5
14.7
(70.2)
$83.6
1.9%
$0.21
2019
$395.0
$395.0
24.9
34.1
9.8
(7.6)
$456.2
7.9%
$1.12
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