Attached files
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| 8-K - 8-K - LEVI STRAUSS & CO | a2q2016form8-k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Investor Contact: | Chris Ogle | Media Contact: | Amber Rensen | |||
Levi Strauss & Co. | Levi Strauss & Co. | |||||
(800) 438-0349 | (415) 501-7777 | |||||
Investor-relations@levi.com | newsmediarequests@levi.com | |||||
LEVI STRAUSS & CO. ANNOUNCES SECOND-QUARTER 2016 FINANCIAL RESULTS
Reported Revenue Flat; Constant-Currency Revenue Up 1%
Net Income Grows 163% Reflecting Lower Restructuring and Related Charges and Prior-Year Debt Extinguishment
SAN FRANCISCO (July 11, 2016) – Levi Strauss & Co. (LS&Co.) announced financial results today for the second quarter ended May 29, 2016.
Highlights include:
Three Months Ended | % Increase (Decrease) | ||||||||||
($ millions) | May 29, 2016 | May 31, 2015 | As Reported | ||||||||
Net revenues | $ | 1,012 | $ | 1,012 | — | ||||||
Net income attributable to LS&Co. | $ | 31 | $ | 12 | 163 | % | |||||
Adjusted EBIT | $ | 63 | $ | 63 | — | ||||||
Net revenues were flat on a reported basis and grew one percent excluding $14 million in unfavorable currency translation effects. Higher revenues primarily reflected increased constant-currency direct-to-consumer sales, which grew low double-digits for the second quarter, on performance and expansion of the retail network as well as ecommerce growth. Constant-currency wholesale revenues declined low single-digits for the quarter.
Second-quarter net income grew 163 percent primarily reflecting a decline in charges related to the company’s productivity initiative and a debt extinguishment loss recorded in the prior year. Second quarter Adjusted EBIT was roughly flat to prior year, as an improvement in gross margin and higher constant-currency revenues were offset primarily by increased investment in the company's direct-to-consumer channel and advertising.
“In the second quarter, we offset the impact of a challenging U.S. wholesale environment with growth in our direct-to-consumer and international businesses,” said Chip Bergh, president and chief executive officer. “Looking forward, as we execute our profitable growth strategies we will continue to focus on what we can control, and we remain committed to delivering our priorities and financial objectives for the full year.”
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LS&Co. Q2 2016 Results/Add One
July 11, 2016
Second-Quarter 2016 Highlights
▪ | On a reported basis, gross profit in the second quarter grew to $517 million compared with $500 million for the same quarter of 2015, despite unfavorable currency translation effects of approximately $5 million. Gross margin for the second quarter grew to 51.1 percent of revenues compared with 49.4 percent of revenues in the same quarter of 2015, primarily due to international and direct-to-consumer sales growth. Lower negotiated product costs and streamlined supply chain operations also benefited gross margin. |
▪ | Selling, general and administrative (SG&A) expenses for the second quarter were $459 million compared with $450 million in the same quarter of 2015. Currency favorably impacted SG&A by $4 million. Excluding currency, higher costs were associated with the expansion of the company's retail network and ecommerce business, as well as higher advertising investment. The company had 66 more company-operated stores at the end of the second quarter of 2016 than it did at the end of the second quarter of 2015. |
▪ | Operating income of $58 million in the second quarter was up from $48 million in the same quarter of 2015, reflecting lower charges related to the company’s productivity initiative. |
▪ | Adjusted EBIT of $63 million, was roughly flat compared to the same quarter of 2015, as the constant-currency revenue growth and higher gross margin were offset by the higher SG&A. Currency translation had no significant impact to Adjusted EBIT. A reconciliation of Adjusted EBIT is provided at the end of this press release. |
Regional Overview
Reported regional net revenues and operating income for the quarter were as follows:
Net Revenues | Operating Income * | |||||||||||||||||||
Three Months Ended | % Increase (Decrease) | Three Months Ended | % Increase (Decrease) | |||||||||||||||||
($ millions) | May 29, 2016 | May 31, 2015 | May 29, 2016 | May 31, 2015 | ||||||||||||||||
Americas | $ | 589 | $ | 622 | (5)% | $ | 89 | $ | 103 | (14)% | ||||||||||
Europe | $ | 241 | $ | 222 | 8% | $ | 38 | $ | 33 | 12% | ||||||||||
Asia | $ | 182 | $ | 168 | 8% | $ | 16 | $ | 15 | 6% | ||||||||||
* Note: Regional operating income is equal to regional adjusted EBIT.
• | In the Americas, excluding currency effects, net revenues declined four percent, as currency translation unfavorably impacted net revenues by $8 million. Direct-to-consumer revenues grew for the region, while U.S. wholesale revenues declined. Lower operating income primarily reflected lower revenues and higher advertising expenses. |
• | In Europe, currency translation had no significant impact to net revenues or operating income. Net revenues grew eight percent reflecting direct-to-consumer growth from performance and expansion, and operating income was up twelve percent due to the region's higher net revenues and improved gross margin. |
• | In Asia, excluding currency effects, net revenues grew twelve percent, as currency translation unfavorably impacted net revenues by $6 million. Revenue growth primarily reflected strong performance and expansion of the company-operated retail network. Operating income grew due to the region's higher net revenues. |
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LS&Co. Q2 2016 Results/Add Two
July 11, 2016
Cash Flow and Balance Sheet
At May 29, 2016, cash and cash equivalents of $360 million were complemented by $611 million available under the company's revolving credit facility, resulting in a total liquidity position of approximately $1 billion. Total debt and net debt at the end of the second quarter remained approximately $1.2 billion and $0.8 billion, respectively. Free cash flow through the second quarter of 2016 was $13 million.
Investor Conference Call
The company’s second-quarter 2016 investor conference call will be available through a live audio webcast at https://engage.vevent.com/rt/levistraussao~071116 today, July 11, 2016, 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. 34504353. A replay is available the same day on http://www.levistrauss.com/investors/earnings-webcast and will be archived for one week. A telephone replay is also available through July 15, 2016, at 855-859-2056 in the United States and Canada or +1-404-537-3406 internationally; I.D. No. 34504353. 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 2,800 retail stores and shop-in-shops. Levi Strauss & Co.'s reported fiscal 2015 net revenues were $4.5 billion. For more information, go to http://levistrauss.com.
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LS&Co. Q2 2016 Results/Add Three
July 11, 2016
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: inventory levels, including year-end levels, full year gross margin, currency impacts, including full-year translation effects, profitable revenue and gross margin growth, growing the U.S. business, growing the Dockers® brand, sustaining growth in our direct-to-consumer and international businesses, and new store openings. 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 2015 and our Quarterly Report on Form 10-Q for the quarter ended May 29, 2016, 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 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 and Adjusted EBIT, provide users of the company’s financial information with additional useful information. The tables found below include Free Cash Flow, Net Debt and Adjusted EBIT 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.
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LS&Co. Q2 2016 Results/Add Four
July 11, 2016
The company presents non-GAAP financial measures, such as Free Cash Flow, Net Debt and Adjusted EBIT, 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 SECOND QUARTER OF 2016” 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.
# # #
LEVI STRAUSS & CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited) | |||||||
May 29, 2016 | November 29, 2015 | ||||||
(Dollars in thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 359,540 | $ | 318,571 | |||
Trade receivables, net of allowance for doubtful accounts of $12,598 and $11,025 | 334,796 | 498,196 | |||||
Inventories: | |||||||
Raw materials | 3,153 | 3,368 | |||||
Work-in-process | 3,568 | 3,031 | |||||
Finished goods | 783,651 | 600,460 | |||||
Total inventories | 790,372 | 606,859 | |||||
Other current assets | 100,495 | 104,523 | |||||
Total current assets | 1,585,203 | 1,528,149 | |||||
Property, plant and equipment, net of accumulated depreciation of $826,480 and $811,013 | 383,260 | 390,829 | |||||
Goodwill | 236,065 | 235,041 | |||||
Other intangible assets, net | 43,104 | 43,350 | |||||
Non-current deferred tax assets, net | 576,490 | 580,640 | |||||
Other non-current assets | 93,450 | 106,386 | |||||
Total assets | $ | 2,917,572 | $ | 2,884,395 | |||
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 124,247 | $ | 114,978 | |||
Current maturities of long-term debt | 36,439 | 32,625 | |||||
Accounts payable | 282,165 | 238,309 | |||||
Accrued salaries, wages and employee benefits | 140,005 | 182,430 | |||||
Restructuring liabilities | 10,853 | 20,141 | |||||
Accrued interest payable | 5,701 | 5,510 | |||||
Accrued income taxes | 23,571 | 6,567 | |||||
Other accrued liabilities | 242,886 | 245,607 | |||||
Total current liabilities | 865,867 | 846,167 | |||||
Long-term debt | 1,005,565 | 1,004,938 | |||||
Long-term capital leases | 12,504 | 12,320 | |||||
Postretirement medical benefits | 99,167 | 105,240 | |||||
Pension liability | 346,770 | 358,443 | |||||
Long-term employee related benefits | 64,609 | 73,342 | |||||
Long-term income tax liabilities | 22,039 | 26,312 | |||||
Other long-term liabilities | 61,542 | 56,987 | |||||
Total liabilities | 2,478,063 | 2,483,749 | |||||
Commitments and contingencies | |||||||
Temporary equity | 71,729 | 68,783 | |||||
Stockholders’ Equity: | |||||||
Levi Strauss & Co. stockholders’ equity | |||||||
Common stock — $.01 par value; 270,000,000 shares authorized; 37,452,319 shares and 37,460,145 shares issued and outstanding | 375 | 375 | |||||
Additional paid-in capital | 2,119 | 3,291 | |||||
Retained earnings | 741,217 | 705,668 | |||||
Accumulated other comprehensive loss | (378,647 | ) | (379,066 | ) | |||
Total Levi Strauss & Co. stockholders’ equity | 365,064 | 330,268 | |||||
Noncontrolling interest | 2,716 | 1,595 | |||||
Total stockholders’ equity | 367,780 | 331,863 | |||||
Total liabilities, temporary equity and stockholders’ equity | $ | 2,917,572 | $ | 2,884,395 | |||
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 | Six Months Ended | ||||||||||||||
May 29, 2016 | May 31, 2015 | May 29, 2016 | May 31, 2015 | ||||||||||||
(Dollars in thousands) (Unaudited) | |||||||||||||||
Net revenues | $ | 1,011,587 | $ | 1,012,180 | $ | 2,068,087 | $ | 2,067,255 | |||||||
Cost of goods sold | 494,389 | 511,949 | 991,291 | 1,029,959 | |||||||||||
Gross profit | 517,198 | 500,231 | 1,076,796 | 1,037,296 | |||||||||||
Selling, general and administrative expenses | 459,351 | 449,662 | 900,514 | 874,944 | |||||||||||
Restructuring, net | (191 | ) | 2,954 | 1,657 | 7,292 | ||||||||||
Operating income | 58,038 | 47,615 | 174,625 | 155,060 | |||||||||||
Interest expense | (20,411 | ) | (21,913 | ) | (35,313 | ) | (45,225 | ) | |||||||
Loss on early extinguishment of debt | — | (14,002 | ) | — | (14,002 | ) | |||||||||
Other income (expense), net | 4,295 | 7,639 | 2,076 | (18,389 | ) | ||||||||||
Income before income taxes | 41,922 | 19,339 | 141,388 | 77,444 | |||||||||||
Income tax expense | 10,862 | 7,887 | 44,037 | 27,709 | |||||||||||
Net income | 31,060 | 11,452 | 97,351 | 49,735 | |||||||||||
Net (income) loss attributable to noncontrolling interest | (335 | ) | 239 | (790 | ) | 348 | |||||||||
Net income attributable to Levi Strauss & Co. | $ | 30,725 | $ | 11,691 | $ | 96,561 | $ | 50,083 | |||||||
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 | Six Months Ended | ||||||||||||||
May 29, 2016 | May 31, 2015 | May 29, 2016 | May 31, 2015 | ||||||||||||
(Dollars in thousands) (Unaudited) | |||||||||||||||
Net income | $ | 31,060 | $ | 11,452 | 97,351 | 49,735 | |||||||||
Other comprehensive income (loss), before related income taxes: | |||||||||||||||
Pension and postretirement benefits | 3,735 | 4,328 | 7,317 | 8,935 | |||||||||||
Net investment hedge (losses) gains | (250 | ) | 463 | (914 | ) | 604 | |||||||||
Foreign currency translation gains (losses) | 5,877 | 1,032 | (1,698 | ) | (9,500 | ) | |||||||||
Unrealized gains (losses) on marketable securities | 1,510 | 161 | (319 | ) | 274 | ||||||||||
Total other comprehensive income, before related income taxes | 10,872 | 5,984 | 4,386 | 313 | |||||||||||
Income taxes related to items of other comprehensive income | (2,414 | ) | 248 | (3,638 | ) | (1,301 | ) | ||||||||
Comprehensive income, net of income taxes | 39,518 | 17,684 | 98,099 | 48,747 | |||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (447 | ) | 297 | (1,121 | ) | 429 | |||||||||
Comprehensive income attributable to Levi Strauss & Co. | $ | 39,071 | $ | 17,981 | $ | 96,978 | $ | 49,176 | |||||||
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
Six Months Ended | |||||||
May 29, 2016 | May 31, 2015 | ||||||
(Dollars in thousands) (Unaudited) | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 97,351 | $ | 49,735 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 50,496 | 50,471 | |||||
Asset impairments | 680 | 1,573 | |||||
Gain on disposal of assets | (6,024 | ) | (8,617 | ) | |||
Unrealized foreign exchange losses (gains) | 16,927 | (2,072 | ) | ||||
Realized (gain) loss on settlement of forward foreign exchange contracts not designated for hedge accounting | (16,887 | ) | 1,368 | ||||
Employee benefit plans’ amortization from accumulated other comprehensive loss | 7,487 | 8,548 | |||||
Noncash restructuring charges | — | 387 | |||||
Noncash loss on early extinguishment of debt | — | 3,448 | |||||
Amortization of premium, discount and debt issuance costs | 1,256 | 881 | |||||
Stock-based compensation | 1,976 | 7,848 | |||||
Allowance for doubtful accounts | 2,209 | 1,192 | |||||
Change in operating assets and liabilities: | |||||||
Trade receivables | 157,291 | 173,660 | |||||
Inventories | (185,806 | ) | 18,582 | ||||
Other current assets | 1,993 | (1,100 | ) | ||||
Other non-current assets | (4,163 | ) | (1,368 | ) | |||
Accounts payable and other accrued liabilities | 41,392 | (85,738 | ) | ||||
Restructuring liabilities | (10,691 | ) | (25,880 | ) | |||
Income tax liabilities | 18,397 | (5,414 | ) | ||||
Accrued salaries, wages and employee benefits and long-term employee related benefits | (73,463 | ) | (72,301 | ) | |||
Other long-term liabilities | 2,883 | (13,853 | ) | ||||
Other, net | — | 1,214 | |||||
Net cash provided by operating activities | 103,304 | 102,564 | |||||
Cash Flows from Investing Activities: | |||||||
Purchases of property, plant and equipment | (47,231 | ) | (43,163 | ) | |||
Proceeds from sales of assets | 17,431 | 8,785 | |||||
Proceeds (payments) on settlement of forward foreign exchange contracts not designated for hedge accounting | 16,887 | (1,368 | ) | ||||
Acquisitions, net of cash acquired | (47 | ) | (251 | ) | |||
Net cash used for investing activities | (12,960 | ) | (35,997 | ) | |||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of long-term debt | — | 500,000 | |||||
Repayments of long-term debt and capital leases | (1,571 | ) | (526,490 | ) | |||
Proceeds from senior revolving credit facility | 180,000 | 265,000 | |||||
Repayments of senior revolving credit facility | (174,000 | ) | (255,000 | ) | |||
Proceeds from short-term credit facilities | 14,216 | 11,884 | |||||
Repayments of short-term credit facilities | (10,389 | ) | (8,407 | ) | |||
Other short-term borrowings, net | 593 | 310 | |||||
Debt issuance costs | — | (3,937 | ) | ||||
Change in restricted cash, net | 3,315 | 1,110 | |||||
Repurchase of common stock | (1,393 | ) | (2,221 | ) | |||
Excess tax benefits from stock-based compensation | 179 | 347 | |||||
Dividend to stockholders | (60,000 | ) | (50,000 | ) | |||
Net cash used for financing activities | (49,050 | ) | (67,404 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (325 | ) | (12,784 | ) | |||
Net increase (decrease) in cash and cash equivalents | 40,969 | (13,621 | ) | ||||
Beginning cash and cash equivalents | 318,571 | 298,255 | |||||
Ending cash and cash equivalents | $ | 359,540 | $ | 284,634 | |||
Noncash Investing Activity: | |||||||
Purchases of property, plant and equipment not yet paid at end of period | $ | 22,911 | $ | 10,035 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest during the period | $ | 33,536 | $ | 42,526 | |||
Cash paid for income taxes during the period, net of refunds | 21,703 | 33,619 | |||||
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 SECOND QUARTER OF 2016
The following information relates to non-GAAP financial measures, and should be read in conjunction with the investor call held on July 11, 2016, discussing the company’s financial condition and results of operations as of and for the quarter ended May 29, 2016. Free cash flow, Net debt and Adjusted EBIT 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, and cash dividends to stockholders; (2) Net debt represents total long-term and short-term debt less cash and cash equivalents; and (3) Adjusted EBIT represents net income plus income tax expense, interest expense, loss on early extinguishment of debt, other (income) expense, net, restructuring and related charges, severance, asset impairment charges and other, net, and pension and postretirement benefit plan curtailment and net settlement (gains) losses, net.
Free cash flow:
Six Months Ended | |||||||
($ millions) | May 29, 2016 | May 31, 2015 | |||||
(unaudited) | |||||||
Most comparable GAAP measure: | |||||||
Net cash provided by operating activities | $ | 103.3 | $ | 102.6 | |||
Non-GAAP measure: | |||||||
Net cash provided by operating activities | $ | 103.3 | $ | 102.6 | |||
Purchases of property, plant and equipment | (47.2 | ) | (43.2 | ) | |||
Proceeds (payments) on settlement of forward foreign exchange contracts not designated for hedge accounting | 16.9 | (1.4 | ) | ||||
Dividend to stockholders | (60.0 | ) | (50.0 | ) | |||
Free cash flow | $ | 13.0 | $ | 8.0 | |||
Net debt:
($ millions) | May 29, 2016 | November 29, 2015 | |||||
(unaudited) | |||||||
Most comparable GAAP measure: | |||||||
Total debt | $ | 1,166.3 | $ | 1,152.5 | |||
Non-GAAP measure: | |||||||
Total debt | $ | 1,166.3 | $ | 1,152.5 | |||
Cash and cash equivalents | (359.5 | ) | (318.6 | ) | |||
Net debt | $ | 806.8 | $ | 833.9 | |||
Adjusted EBIT:
Three Months Ended | |||||||
($ millions) | May 29, 2016 | May 31, 2015 | |||||
(unaudited) | |||||||
Most comparable GAAP measure: | |||||||
Operating income | $ | 58.0 | $ | 47.6 | |||
Non-GAAP measure: | |||||||
Net income | $ | 31.0 | $ | 11.5 | |||
Income tax expense | 10.9 | 7.8 | |||||
Interest expense | 20.4 | 21.9 | |||||
Loss on early extinguishment of debt | — | 14.0 | |||||
Other (income) expense, net | (4.3 | ) | (7.6 | ) | |||
Restructuring and related charges, severance, asset impairment charges and other, net | 4.8 | 15.6 | |||||
Pension and postretirement benefit plan curtailment and net settlement losses, net | — | 0.1 | |||||
Adjusted EBIT | $ | 62.8 | $ | 63.3 | |||