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Goodwill and Other Intangible Assets | 9 Months Ended
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Aug. 25, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by business segment for the nine months ended August 25, 2024 and August 27, 2023 were as follows:
| Nine Months Ended August 25, 2024
| Americas |  | Europe |  | Asia |  |  |  | Other Brands(1) |  | Total
| (Dollars in millions)
Balance, November 26, 2023 |  |  |  |  |  |  |  |  |  |  |
Goodwill | $ | 231.7 |  |  | $ | 32.6 |  |  | $ | 2.8 |  |  |  |  | $ | 123.6 |  |  | 390.7 |
Accumulated impairment losses | — |  |  | (11.6) |  |  | — |  |  |  |  | (75.4) |  |  | (87.0) |
| 231.7 |  |  | 21.0 |  |  | 2.8 |  |  |  |  | 48.2 |  |  | 303.7 |
Impairment losses(2) | — |  |  | (5.5) |  |  | — |  |  |  |  | (36.3) |  |  | (41.8) |
Goodwill acquired during the year(3) | 15.9 |  |  | 5.0 |  |  | — |  |  |  |  | — |  |  | 20.9 |
Foreign currency fluctuation | (2.7) |  |  | 0.6 |  |  | 0.1 |  |  |  |  | — |  |  | (2.0) |
Balance, August 25, 2024 |  |  |  |  |  |  |  |  |  |  |
Goodwill | 244.9 |  |  | 38.2 |  |  | 2.9 |  |  |  |  | 123.6 |  |  | 409.6 |
Accumulated impairment losses | — |  |  | (17.1) |  |  | — |  |  |  |  | (111.7) |  |  | (128.8) |
| $ | 244.9 |  |  | $ | 21.1 |  |  | $ | 2.9 |  |  |  |  | $ | 11.9 |  |  | $ | 280.8 |
_____________ (1)Comprised of the Beyond Yoga® reporting unit goodwill only. (2)For the nine months ended August 25, 2024 the Company recorded a Beyond Yoga® goodwill noncash impairment charge of $36.3 million. (3)For the nine months ended August 25, 2024 the Company recorded goodwill of $15.9 million in connection with the acquisition of all operating assets related to Levi’s® brands from Expofaro S.A.S, the Company’s former distributor in Colombia.
| Nine Months Ended August 27, 2023
| Americas |  | Europe |  | Asia |  | Other Brands(1) |  | Total
| (Dollars in millions)
Balance, November 27, 2022 |  |  |  |  |  |  |  |  |
Goodwill | $ | 229.5 |  |  | $ | 21.3 |  |  | $ | 2.9 |  |  | $ | 123.6 |  |  | $ | 377.3 |
Accumulated impairment losses | — |  |  | (11.6) |  |  | — |  |  | — |  |  | (11.6) |
| 229.5 |  |  | 9.7 |  |  | 2.9 |  |  | 123.6 |  |  | 365.7 |
Impairment losses(2) | — |  |  | — |  |  | — |  |  | (75.4) |  |  | (75.4) |
Goodwill acquired during the year | 1.1 |  |  | 7.3 |  |  | — |  |  | — |  |  | 8.4 |
Foreign currency fluctuation | 1.7 |  |  | 0.4 |  |  | (0.1) |  |  | — |  |  | 2.0 |
Balance, August 27, 2023 |  |  |  |  |  |  |  |  |
Goodwill | 232.3 |  |  | 29.0 |  |  | 2.8 |  |  | 123.6 |  |  | 387.7 |
Accumulated impairment losses | — |  |  | (11.6) |  |  | — |  |  | (75.4) |  |  | (87.0) |
| $ | 232.3 |  |  | $ | 17.4 |  |  | $ | 2.8 |  |  | $ | 48.2 |  |  | $ | 300.7 |
_____________ (1)Comprised of the Beyond Yoga® reporting unit goodwill only. (2)For the nine months ended August 27, 2023 the company recorded a Beyond Yoga® goodwill noncash impairment charge of $75.4 million. During the third quarter of 2024, as part of the Company’s annual review of the Beyond Yoga® reporting unit, the Company elected to perform a single step quantitative impairment test on the goodwill and indefinite lived trademark intangible assigned to the Beyond Yoga® reporting unit and performed impairment tests on the related customer relationship intangible assets. The Company engaged third-party valuation specialists and used industry accepted valuation models and criteria that were reviewed and approved by various levels of management. The Company assessed the fair value of the Beyond Yoga® reporting unit as of the test date, May 27, 2024, using the discounted cash flow method under the income approach, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows. As a result of this assessment, we concluded that the carrying value of the Beyond Yoga® reporting unit exceeded the estimated fair value by $36.3 million, which was recorded as a noncash impairment charge to goodwill. Prior to the assessment of the reporting unit, we concluded that the carrying values of the trademark and customer relationship intangible assets exceeded their estimated fair values. The trademark fair value was determined using the relief-from-royalty method to utilize the discounted projected future cash flows. Based on this assessment, we recorded a $66.0 million noncash impairment charge related to the Beyond Yoga® trademark. The customer relationship intangible assets fair values were determined using the multi-period excess earnings and distributor methods under the income approach. Based on these assessments, we recorded a $9.1 million noncash impairment charge related to the customer relationship intangible assets. The significant assumptions used in the assessment of the fair value of the reporting unit included revenue growth rates, profit margins, operating expenses, capital expenditures, terminal value and a discount rate. The significant assumptions used in the assessment of the fair value of the trademark intangible asset included revenue growth rates, a discount rate and a royalty rate. The significant assumptions used in the assessment of the customer relationship intangible assets included revenues from existing customers and discount rates. Total impairment charges for the nine months ended August 25, 2024 were $111.4 million and were recorded within “Goodwill and other intangible asset impairment charges” on the accompanying consolidated statements of income. During 2024, the Company appointed new Beyond Yoga® executive management and implemented a new strategic plan for growth and expansion, resulting in an adverse impact on expected cash flows. During the first quarter of 2024, the Company recognized $5.5 million in goodwill impairment charges related to the footwear business in its Europe segment as a result of the decision to discontinue the category in connection with Project Fuel. For the nine months ended August 27, 2023, the Company recognized impairment charges of $90.2 million related to the Beyond Yoga® acquisition including a $75.4 million impairment in goodwill and a $14.8 million impairment in the trademark intangible asset. The impairment resulted from incremental investments in the brand and team, and disciplined expansion in response to the current macroeconomic conditions, resulting in an adverse impact on expected cash flows, as well as an increase in discount rates. Other intangible assets, net, were as follows:
| August 25, 2024 |  | November 26, 2023
| Gross Carrying Value |  | Accumulated Amortization |  | Total |  | Gross Carrying Value |  | Accumulated Amortization |  | Total
| (Dollars in millions)
Non-amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Trademarks(1) | $ | 177.9 |  |  | $ | — |  |  | $ | 177.9 |  |  | $ | 243.9 |  |  | $ | — |  |  | $ | 243.9 |
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |
Customer relationships and other(2) | 38.8 |  |  | (18.3) |  |  | 20.5 |  |  | 38.3 |  |  | (14.6) |  |  | 23.7 |
Total | $ | 216.7 |  |  | $ | (18.3) |  |  | $ | 198.4 |  |  | $ | 282.2 |  |  | $ | (14.6) |  |  | $ | 267.6 |
_____________ (1)For the nine months ended August 25, 2024 the Company recorded a Beyond Yoga® trademark noncash impairment charge of $66.0 million based on a Level 3 fair value of $135.1 million. For the nine months ended August 27, 2023 the Company recorded a Beyond Yoga® trademark noncash impairment charge of $14.8 million based on a Level 3 fair value of $201.1 million. (2)For the nine months ended August 25, 2024 the Company recorded a Beyond Yoga® customer relationship intangible assets noncash impairment charge of $9.1 million based on a Level 3 fair value of $9.7 million.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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