EX-99.1 2 exhibit991-3q2018pressrele.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1
levijpga06.jpg
FOR IMMEDIATE RELEASE 
Investor Contact:
  
Aida Orphan
  
Media Contact:
  
Amber McCasland
 
  
Levi Strauss & Co.
  
 
  
Levi Strauss & Co.
 
  
(415) 501-6194
  
 
  
(415) 501-7777
 
  
Investor-relations@levi.com
 
  
newsmediarequests@levi.com
LEVI STRAUSS & CO. REPORTS FOURTH CONSECUTIVE QUARTER OF DOUBLE-DIGIT REVENUE GROWTH
Third Quarter Reported Revenue up 10% on Growth Across All Regions
Net Income up 45% and Adjusted EBIT up 10%
SAN FRANCISCO (October 9, 2018) – Levi Strauss & Co. (LS&Co.) today announced financial results for the third quarter ended August 26, 2018.

"We delivered our fourth consecutive quarter of double-digit revenue growth,” said Chip Bergh, president and chief executive officer, Levi Strauss & Co. "This growth was broad-based across virtually every part of our business, including all four brands, men’s, women’s, tops and bottoms, and all regions and channels, with results that put us among the top performers in the industry."

Highlights include:
  
 
Three Months Ended
 
% Increase
($ millions)
 
August 26, 2018
 
August 27, 2017
 
As Reported
Net revenues
 
$
1,394

 
$
1,268

 
10
%
Net income
 
$
130

 
$
90

 
45
%
Adjusted EBIT
 
$
162

 
$
147

 
10
%

Net revenues grew 10 percent on a reported basis and 11 percent excluding $14 million in unfavorable currency translation effects, driven by broad-based Levi's® brand growth in all regions and channels. On a reported basis, direct-to-consumer revenues grew 14 percent on performance and expansion of the retail network, as well as e-commerce growth. The company had 65 more company-operated stores at the end of the third quarter of 2018 than it did a year prior. Wholesale reported revenues grew 8 percent reflecting higher revenues in all regions.

Net income increased $40 million primarily reflecting lower income taxes, higher operating income and gains on the company's hedging contracts as compared with losses in the third quarter of 2017.

Adjusted EBIT grew 10 percent reflecting revenue growth and higher gross margins, partially offset by higher SG&A. In the prior period, a $10 million correction to stock-based compensation expense was recognized to reflect a shorter expense recognition period for retirement-eligible employees. A reconciliation of Adjusted EBIT, a non-GAAP financial measure, is provided at the end of this press release.









Third Quarter 2018 Highlights

Gross margin for the third quarter was 53.2 percent of net revenues compared with 51.8 percent in the same quarter of fiscal 2017, reflecting the margin benefit from revenue growth in the global direct-to-consumer channel.

Selling, general and administrative expenses (SG&A) were $583 million compared with $510 million in the same quarter of fiscal 2017. SG&A as a percent of net revenues grew 160 basis-points compared to the same quarter of fiscal 2017 primarily reflecting higher selling and planned advertising expenses. Higher incentive compensation expenses in the quarter were offset by an adjustment made in the third quarter of 2017 to correct the timing of stock compensation accruals for retirement eligible employees.

Operating income for the third quarter of 2018 of $159 million was up 8 percent for the third quarter compared to the same quarter of fiscal 2017 reflecting the revenue growth and higher gross margins, partially offset by higher SG&A.


Regional Overview

Reported regional net revenues and operating income for the quarter are set forth in the table below:
 
 
Net Revenues
 
Operating Income *
 
 
Three Months Ended
 
% Increase
 
Three Months Ended
 
% Increase
($ millions)
 
August 26, 2018
 
August 27, 2017
 
 
August 26, 2018
 
August 27, 2017
 
Americas
 
$
793

 
$
739

 
7
%
 
$
163

 
$
156

 
4
%
Europe
 
$
406

 
$
348

 
17
%
 
$
77

 
$
62

 
25
%
Asia
 
$
196

 
$
182

 
8
%
 
$
15

 
$
11

 
30
%

* Note: Regional operating income is equal to regional adjusted EBIT.

In the Americas, excluding unfavorable currency effects of $8 million, net revenues grew 9 percent reflecting higher revenues across wholesale and direct-to-consumer channels across the region. The region's operating income increased 4 percent reflecting higher net revenues, partially offset by direct-to-consumer and advertising expenses this quarter.

In Europe, excluding unfavorable currency effects of $3 million, net revenues grew 17 percent reflecting continued broad-based growth across wholesale and direct-to-consumer channels, with the strongest growth in women's and tops. The region's operating income grew 25 percent reflecting higher revenues and gross margins partially offset by direct-to-consumer and advertising investments.

In Asia, excluding unfavorable currency effects of $4 million, net revenues grew 10 percent reflecting growth across all channels. The region's operating income grew 30 percent reflecting higher revenues and higher gross margins, partially offset by direct-to-consumer investments.







Cash Flow and Balance Sheet

At August 26, 2018, cash and cash equivalents of $613 million were complemented by $669 million available under the company's revolving credit facility, resulting in a total liquidity position of approximately $1.3 billion. Net debt at the end of the third quarter of 2018 was $449 million.

Cash from operations for the first nine months of the year was $205 million, a decrease of $90 million from last year. The decrease primarily reflects accelerated contributions to our pension plans that we made in connection with the change in tax law. Free cash flow for the first nine months of 2018 was negative $14 million, a decline of $162 million compared to the first nine months of 2017. This was due to the decrease in cash from operations as well as higher repurchases of common stock in connection with our equity incentive program. A reconciliation of net debt and free cash flow, non-GAAP financial measures, is provided at the end of this press release.

Investor Conference Call

The company’s third-quarter 2018 investor conference call will be available through a live audio webcast at https://engage.vevent.com/rt/levistraussao~100918 on October 9, 2018, at 1 p.m. Pacific / 4 p.m. Eastern or via the following phone numbers: 800-891-4735 in the United States and Canada, or +1-973-200-3066 internationally; I.D. No. 7217838. A replay is available the same day on http://www.levistrauss.com/investors/earnings-webcast and will be archived for one month. A telephone replay is also available through October 15, 2018, at 855-859-2056 in the United States and Canada or +1-404-537-3406 internationally; I.D. No. 7217838. Please see http://www.levistrauss.com/investors/earnings-webcast for a discussion and reconciliation of non-GAAP measures referenced on the investor conference call.


About Levi Strauss & Co.

Levi Strauss & Co. is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Dockers®, Signature by Levi Strauss & Co.™, and Denizen® brands. Its products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 2,900 retail stores and shop-in-shops. Levi Strauss & Co.'s reported fiscal 2017 net revenues were $4.9 billion. For more information, go to http://levistrauss.com.


























Forward Looking Statement

This news release and related conference call contains, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to: revenue growth and currency impacts. We have based these forward-looking statements on our current assumptions, expectations and projections about future events. We use words like “believe,” “will,” “so we can,” “when,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Investors should consider the information contained in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year 2017 and our Quarterly Report on Form 10-Q for the quarter ended August 26, 2018, especially in the “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this news release and related conference call may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this news release and related conference call. We are not under any obligation and do not intend to update or revise any of the forward-looking statements contained in this news release and related conference call to reflect circumstances existing after the date of this news release and related conference call or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

Non-GAAP Financial Measures

The company reports its financial results in conformity with generally accepted accounting principles in the United States (“GAAP”) and the rules of the SEC. However, management believes that certain non-GAAP financial measures, such as Free Cash Flow, Net Debt, Adjusted EBIT and Net Revenues in Constant Currency, provide users of the company’s financial information with additional useful information. The tables found below include Free Cash Flow, Net Debt, Adjusted EBIT and Net Revenues in Constant Currency and corresponding reconciliations to the most comparable GAAP financial measures. These non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company’s financial results prepared in accordance with GAAP. Certain of these items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company’s financial position, results of operations and cash flows and should therefore be considered in assessing the company’s actual financial condition and performance. Non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgment by management in determining how they are formulated. Some specific limitations, include but are not limited to, the fact that such non-GAAP financial measures: (a) do not reflect cash outlays for capital expenditures, contractual commitments or liabilities including pension obligations, post-retirement health benefit obligations and income tax liabilities, (b) do not reflect changes in, or cash requirements for, working capital requirements; and (c) they do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on indebtedness. Additionally, the methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies, limiting the usefulness of these measures. The company urges investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate its business.










The company presents non-GAAP financial measures, such as Free Cash Flow, Net Debt, Adjusted EBIT and Net Revenues in Constant Currency, because it believes they provide investors, financial analysts and the public with additional information to measure performance and evaluate the company’s ability to service its debt and may be useful for comparing its operating performance with the performance of other companies that have different financing and capital structures and tax rates. The company further believes these measures may be useful for period-over-period comparisons of underlying business trends and its ongoing operations. See “RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THIRD QUARTER OF 2018” below for reconciliation to the most comparable GAAP financial measures.

Constant currency

Constant-currency comparisons are based on translating local currency amounts in the prior-year period at actual foreign exchange rates for the current year. The company routinely evaluates its financial performance on a constant-currency basis in order to facilitate period-to-period comparisons without regard to the impact of changing foreign currency exchange rates.

The Company reports operating results in accordance with U.S. generally accepted accounting principles, or GAAP, as well as on a constant-currency basis in order to facilitate period-to-period comparisons of our results without regard to the impact of fluctuating foreign currency exchange rates. The term foreign currency exchange rates refers to the exchange rates we use to translate our operating results for all countries where the functional currency is not the U.S. Dollar into U.S. Dollars. Because the Company is a global company, foreign currency exchange rates used for translation may have a significant effect on our reported results. In general, upon translation, our financial results are affected positively by a weaker U.S. Dollar and are affected negatively by a stronger U.S. Dollar as compared to the foreign currencies in which we conduct our business. References to the operating results on a constant-currency basis mean the operating results without the impact of foreign currency translation fluctuations.
    
The Company believes disclosure of constant-currency results is helpful to investors because it facilitates period-to-period comparisons of the Company's results by increasing the transparency of the underlying performance by excluding the impact of fluctuating foreign currency exchange rates. However, constant-currency results are non-GAAP financial measures and are not meant to be considered in isolation or as a substitute for comparable measures prepared in accordance with GAAP. Constant-currency results have no standardized meaning prescribed by GAAP, are not prepared under any comprehensive set of accounting rules or principles and should be read in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP. Constant-currency results have limitations in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
    
The Company calculates the effect of changes in foreign currency translation based on the difference between the prior-year period activity translated using the current period’s foreign currency exchange rates and the prior-year period’s foreign currency exchange rates, as reported.



# # #






LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
(Unaudited)
 
 
 
August 26,
2018
 
November 26,
2017
 
(Dollars in thousands)
ASSETS
Current Assets:
 
 
 
Cash and cash equivalents
$
612,506

 
$
633,622

Trade receivables, net of allowance for doubtful accounts of $9,113 and $11,726
487,240

 
485,485

Inventories:

 
 
Raw materials
3,527

 
3,858

Work-in-process
2,883

 
3,008

Finished goods
931,843

 
752,530

Total inventories
938,253

 
759,396

Other current assets
157,982

 
118,724

Total current assets
2,195,981

 
1,997,227

Property, plant and equipment, net of accumulated depreciation of $967,765 and $951,249
420,008

 
424,463

Goodwill
236,492

 
237,327

Other intangible assets, net
42,850

 
42,893

Deferred tax assets, net
400,778

 
537,923

Other non-current assets
121,568

 
118,005

Total assets
$
3,417,677

 
$
3,357,838

 
 
 
 
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY
Current Liabilities:
 
 
 
Short-term debt
$
35,790

 
$
38,451

Accounts payable
361,702

 
289,505

Accrued salaries, wages and employee benefits
249,889

 
227,251

Restructuring liabilities
463

 
786

Accrued interest payable
17,206

 
6,327

Accrued income taxes
36,473

 
16,020

Other accrued liabilities
340,498

 
300,730

Total current liabilities
1,042,021

 
879,070

Long-term debt
1,026,055

 
1,038,860

Long-term capital leases
15,762

 
16,524

Postretirement medical benefits
81,172

 
89,248

Pension liability
191,134

 
314,525

Long-term employee related benefits
97,038

 
90,998

Long-term income tax liabilities
8,048

 
20,457

Other long-term liabilities
77,183

 
78,733

Total liabilities
2,538,413

 
2,528,415

Commitments and contingencies
 
 
 
Temporary equity
225,090

 
127,035

 
 
 
 
Stockholders’ Equity:
 
 
 
Levi Strauss & Co. stockholders’ equity
 
 
 
Common stock — $.01 par value; 270,000,000 shares authorized; 37,615,303 shares and 37,521,447 shares issued and outstanding
376

 
375

Accumulated other comprehensive loss
(413,721
)
 
(404,381
)
Retained earnings
1,060,158

 
1,100,916

Total Levi Strauss & Co. stockholders’ equity
646,813

 
696,910

Noncontrolling interest
7,361

 
5,478

Total stockholders’ equity
654,174

 
702,388

Total liabilities, temporary equity and stockholders’ equity
$
3,417,677

 
$
3,357,838






The notes accompanying our consolidated financial statements in our Form 10-Q are an integral part of these consolidated financial statements.





LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
 
 
Three Months Ended
 
Nine Months Ended
 
August 26,
2018
 
August 27,
2017
 
August 26,
2018
 
August 27,
2017
 
(Dollars in thousands)
(Unaudited)
Net revenues
$
1,394,153

 
$
1,268,391

 
$
3,983,580

 
$
3,438,237

Cost of goods sold
652,591

 
611,762

 
1,833,017

 
1,658,663

Gross profit
741,562

 
656,629

 
2,150,563

 
1,779,574

Selling, general and administrative expenses
582,953

 
510,309

 
1,741,331

 
1,462,263

Operating income
158,609

 
146,320

 
409,232

 
317,311

Interest expense
(15,697
)
 
(14,476
)
 
(45,659
)
 
(52,305
)
Loss on early extinguishment of debt

 

 

 
(22,793
)
Other (expense) income, net
(3,032
)
 
(14,734
)
 
1,044

 
(32,413
)
Income before income taxes
139,880

 
117,110

 
364,617

 
209,800

Income tax expense
10,299

 
27,631

 
176,633

 
42,477

Net income
129,581

 
89,479

 
187,984

 
167,323

Net loss (income) attributable to noncontrolling interest
543

 
(1,487
)
 
(1,940
)
 
(1,672
)
Net income attributable to Levi Strauss & Co.
$
130,124

 
$
87,992

 
$
186,044

 
$
165,651































The notes accompanying our consolidated financial statements in our Form 10-Q are an integral part of these consolidated financial statements.





LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
Three Months Ended
 
Nine Months Ended
 
August 26,
2018
 
August 27,
2017
 
August 26,
2018
 
August 27,
2017
 
(Dollars in thousands)
(Unaudited)
Net income
$
129,581

 
$
89,479

 
$
187,984

 
$
167,323

Other comprehensive income (loss), before related income taxes:
 
 
 
 
 
 
 
Pension and postretirement benefits
3,347

 
3,693

 
9,864

 
11,153

Net investment hedge gains (losses)
8,645

 
(27,930
)
 
14,772

 
(57,570
)
Foreign currency translation (losses) gains
(15,483
)
 
18,051

 
(30,055
)
 
46,638

Unrealized gains on marketable securities
282

 
276

 
456

 
2,151

Total other comprehensive (loss) income, before related income taxes
(3,209
)
 
(5,910
)
 
(4,963
)
 
2,372

Income taxes (expense) benefit related to items of other comprehensive income
(2,050
)
 
9,287

 
(4,433
)
 
15,460

Comprehensive income, net of income taxes
124,322

 
92,856

 
178,588

 
185,155

Comprehensive loss (income) attributable to noncontrolling interest
700

 
(1,561
)
 
(1,883
)
 
(1,573
)
Comprehensive income attributable to Levi Strauss & Co.
$
125,022

 
$
91,295

 
$
176,705

 
$
183,582






























The notes accompanying our consolidated financial statements in our Form 10-Q are an integral part of these consolidated financial statements.





LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Nine Months Ended
 
August 26,
2018
 
August 27,
2017

(Dollars in thousands)
(Unaudited)
Cash Flows from Operating Activities:

 

Net income
$
187,984

 
$
167,323

Adjustments to reconcile net income to net cash provided by operating activities:


 


Depreciation and amortization
92,130

 
85,618

Unrealized foreign exchange (gains) losses
(13,827
)
 
36,717

Realized loss (gain) on settlement of forward foreign exchange contracts not designated for hedge accounting
20,446

 
(184
)
Employee benefit plans’ amortization from accumulated other comprehensive loss and settlement loss
9,865

 
11,153

Loss on early extinguishment of debt

 
22,793

Stock-based compensation
15,025

 
21,910

Other, net
3,678

 
4,146

Provision for (benefit from) deferred income taxes
127,626

 
(7,447
)
Change in operating assets and liabilities:


 


Trade receivables
(11,692
)
 
45,642

Inventories
(202,822
)
 
(77,758
)
Other current assets
(36,122
)
 
(4,947
)
Other non-current assets
(6,045
)
 
(3,747
)
Accounts payable and other accrued liabilities
111,164

 
23,022

Restructuring liabilities
(306
)
 
(3,559
)
Income tax liabilities
11,479

 
16,042

Accrued salaries, wages and employee benefits and long-term employee related benefits
(101,758
)
 
(42,599
)
Other long-term liabilities
(2,066
)
 
326

Net cash provided by operating activities
204,759

 
294,451

Cash Flows from Investing Activities:


 


Purchases of property, plant and equipment
(99,260
)

(75,793
)
(Payments) proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting
(20,446
)

184

Net cash used for investing activities
(119,706
)
 
(75,609
)
Cash Flows from Financing Activities:


 


Proceeds from issuance of long-term debt

 
502,835

Repayments of long-term debt

 
(525,000
)
Proceeds from short-term credit facilities
27,737


23,898

Repayments of short-term credit facilities
(24,196
)

(20,382
)
Other short-term borrowings, net
49


(10,255
)
Payment of debt extinguishment costs

 
(21,902
)
Payment of debt issuance costs

 
(10,110
)
Repurchase of common stock, including shares surrendered for tax withholdings on equity award exercises
(53,773
)

(13,292
)
Dividend to stockholders
(45,000
)

(35,000
)
Other financing, net
(580
)

(3,196
)
Net cash used for financing activities
(95,763
)

(112,404
)
Effect of exchange rate changes on cash and cash equivalents
(10,406
)

9,288

Net (decrease) increase in cash and cash equivalents
(21,116
)

115,726

Beginning cash and cash equivalents
633,622


375,563

Ending cash and cash equivalents
$
612,506


$
491,289




 


Noncash Investing Activity:


 


Property, plant and equipment acquired and not yet paid at end of period
$
13,093


$
10,951

Property, plant and equipment additions due to build-to-suit lease transactions
2,750


4,459




 


Supplemental disclosure of cash flow information:


 


Cash paid for interest during the period
$
27,511


$
29,570

Cash paid for income taxes during the period, net of refunds
67,221


32,944


The notes accompanying our consolidated financial statements in our Form 10-Q are an integral part of these consolidated financial statements.





RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
FOR THE THIRD QUARTER OF 2018

The following information relates to non-GAAP financial measures, and should be read in conjunction with the investor call held on October 9, 2018, discussing the company’s financial condition and results of operations as of and for the quarter ended August 26, 2018. Free cash flow, Net debt, Adjusted EBIT and Net revenues in constant currency are not financial measures prepared in accordance with U.S. generally accepted accounting principles, or GAAP. As used in this press release: (1) Free cash flow represents cash from operating activities less purchases of property, plant and equipment, (payments) proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting, repurchase of common stock including shares surrendered for tax withholdings on equity award exercises, and cash dividends to stockholders; (2) Net debt represents total long-term and short-term debt less cash and cash equivalents; (3) Adjusted EBIT represents net income plus income tax expense, interest expense, other (income) expense, net, and restructuring related charges, severance and other, net; (4) Net revenues in constant currency represents net revenues without the impact of foreign currency.

Free cash flow:

Nine Months Ended

August 26, 2018

August 27, 2017

(Dollars in millions)

(Unaudited)
Most comparable GAAP measure:



Net cash provided by operating activities
$
204.8


$
294.5





Non-GAAP measure:



Net cash provided by operating activities
$
204.8


$
294.5

Purchases of property, plant and equipment
(99.3
)

(75.8
)
(Payments) proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting
(20.4
)

0.2

Payment of debt extinguishment costs

 
(21.9
)
Repurchase of common stock, including shares surrendered for tax withholdings on equity award exercises
(53.8
)

(13.3
)
Dividend to stockholders
(45.0
)

(35.0
)
Free cash flow
$
(13.7
)

$
148.7








Net debt:

August 26, 2018

November 26, 2017

(Dollars in millions)

(Unaudited)
Most comparable GAAP measure:



Total debt
$
1,061.8


$
1,077.3





Non-GAAP measure:



Total debt
$
1,061.8


$
1,077.3

Cash and cash equivalents
(612.5
)
 
(633.6
)
Net debt
$
449.3


$
443.7


 
Adjusted EBIT:
 
Three Months Ended
 
Nine Months Ended
 
August 26, 2018
 
August 27, 2017
 
August 26, 2018
 
August 27, 2017
 
(Dollars in millions)
 
(Unaudited)
Most comparable GAAP measure:



 
 
 
 
Net income
$
129.6


$
89.5

 
$
188.0

 
$
167.3





 
 
 
 
Non-GAAP measure:



 
 
 
 
Net income
129.6


89.5

 
188.0

 
167.3

Income tax expense
10.3


27.6

 
176.6

 
42.5

Interest expense
15.6


14.5

 
45.6

 
52.3

Loss on early extinguishment of debt

 

 

 
22.8

Other (income) expense, net
3.1


14.7

 
(1.0
)
 
32.4

Restructuring and related charges, severance and other, net
2.9


0.9

 
4.0

 
6.2

Pension and postretirement benefit plan curtailment and net settlement losses, net

 
0.1

 
(0.1
)
 
0.3

Adjusted EBIT
$
161.5


$
147.3

 
$
413.1

 
$
323.8






Net revenues in constant currency:
 
Three Months Ended
 
Nine Months Ended
 
August 26,
2018
 
August 27,
2017
 
%
Increase
 
August 26,
2018
 
August 27,
2017
 
%
Increase
 
(Dollars in millions)
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
 
 
 
 
 
 
 
 
 
As reported
$
1,394.2

 
$
1,268.4

 
9.9
%
 
$
3,983.6

 
$
3,438.3

 
15.9
%
Impact of foreign currency

 
(14.4
)
 
*

 

 
76.0

 
*

Constant-currency
$
1,394.2

 
$
1,254.0

 
11.2
%
 
$
3,983.6

 
$
3,514.3

 
13.4
%
 
 
 
 
 
 
 
 
 
 
 
 
Americas
 
 
 
 
 
 
 
 
 
 
 
As reported
$
792.9

 
$
738.6

 
7.4
%
 
$
2,119.8

 
$
1,918.7

 
10.5
%
Impact of foreign currency

 
(7.8
)
 
*

 

 
(0.5
)
 
*

Constant-currency
$
792.9

 
$
730.8

 
8.5
%
 
$
2,119.8

 
$
1,918.2

 
10.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Europe
 
 
 
 
 
 
 
 
 
 
 
As reported
$
405.7

 
$
348.0

 
16.6
%
 
$
1,225.3

 
$
938.7

 
30.5
%
Impact of foreign currency

 
(2.5
)
 
*

 

 
64.2

 
*

Constant-currency
$
405.7

 
$
345.5

 
17.4
%
 
$
1,225.3

 
$
1,002.9

 
22.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Asia
 
 
 
 
 
 
 
 
 
 
 
As reported
$
195.6

 
$
181.8

 
7.6
%
 
$
638.5

 
$
580.9

 
9.9
%
Impact of foreign currency

 
(4.1
)
 
*

 

 
12.3

 
*

Constant-currency
$
195.6

 
$
177.7

 
10.1
%
 
$
638.5

 
$
593.2

 
7.6
%
_____________
 
* Not meaningful