Using the Levi Strauss 2013 Annual Report 10K, answer the


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Using the Levi Strauss 2013 Annual Report 10K, answer the following questions and indicate the Annual Report page on which you located the information: 1. What kind of pension plan does Levi Strauss have? 2. What is the pension and post-retirement benefit obligation for 2012? 2013? 3. What is the Fair value of plan assets at the end of the year 2012? 2013? 4. What is the funding status of the plan for the year 2012? 2013? levistrauss-annual-report-2013(1).pdf _x000C_CHIP BERGH President and Chief Executive Officer DEAR SHAREHOLDERS, CUSTOMERS, EMPLOYEES AND OTHER STAKEHOLDERS, We are working to make Levi Strauss & Co. (LS&Co.) great, again. Our aspiration is to be and be seen as the world’s best apparel company and one of the best-performing companies in any industry. It’s an ambitious goal, but it wasn’t too long ago that this company held that spot, and I believe we can reclaim it. When I joined the company two and a half years ago, we had an enviable list of attributes that gave us every right to be great. We have one of the most iconic brands in the world, a deep and rich history, strong values, passionate employees and loyal consumers. These are what attracted me and so many others to LS&Co. But, despite this list of attributes, the company’s performance has been inconsistent for almost two decades. In my first 18 months, I focused on building a worldclass leadership team. Nine of the 11 WLT members have joined since I started, and all come with great experience and background. Together, we’ve defined a set of strategic choices that focus on “where to play” and “how to win.” We also implemented a global organizational structure and operating model, which we’re now further optimizing. We are making meaningful progress, but we still have more work in front of us than behind us. We’ve made tough, strategy-based choices that are now driving results. In late 2012 we discontinued the dENiZEN® brand in Asia, and this positively impacted our results in 2013. In fiscal 2013, we grew both revenues and profit (EBIT) at the same time for the first time in five years and only the fourth time in 20 years. We delivered strong cash flow, strengthened the balance sheet and paid down almost $200 million in debt. We accomplished these results despite difficult external factors and a very challenging second half. Here are the financial highlights for 2013: • Net revenues grew 2 percent both on a reported and constant currency basis, driven by continued growth in the Americas region and the strength of the Levi’s® men’s business. • Gross margin improved to 50 percent from 48 percent in 2012, primarily driven by lower cotton costs and the exit of the dENiZEN® brand from Asia. • Net income reached $229 million, up 59 percent from $144 million in 2012, as a result of our higher gross margin. • Cash flow from operations was $411 million, compared with $531 million for the same period last year, because of higher inventory and higher selling, general and administrative (SG&A) expenses. • Net debt declined to $1.1 billion after we paid down nearly $200 million in debt during the second quarter of 2013. • Our stock price was up 71 percent versus a year ago (as of December 31), and we were one of the best-performing companies in the apparel industry last year, adding more than $1 billion in shareholder value. Driving Profitable Growth We’re focused on creating long-term value for our shareholders by driving consistent, profitable growth through a key set of strategic choices. These key choices are: 1. Grow our profitable core businesses and core brands — these include the global Levi’s® brand men’s business, the Dockers® brand U.S. men’s business, our key wholesale accounts and our top five geographic markets. 2. Expand for more: Create a more balanced portfolio by growing underdeveloped segments such as the women’s business, tops and accessories; and grow in the key emerging markets of Russia, India, China and Brazi

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