Levi Strauss & Co. (LEVI) filed this 10-Q for the quarter ended March 1, 2026. Under the liquidation lens, the company shows deeply negative equity recovery, consistent with the MFFAIS-reported CLV of -$3.18B. Total assets of $6.57B are predominantly intangible or low-recovery in nature: goodwill ($282M, 0% recovery), other intangibles ($194M, 0%), operating ROU assets ($1.15B, effectively 0% in liquidation), deferred tax assets ($827M, effectively 0%), and other noncurrent assets ($539M, uncertain recovery). Tangible asset recovery is anchored by cash ($717M at 100%), short-term investments ($95M at ~100%), AR ($729M at 90-95%), inventory ($1.12B at 60%), and PP&E net $669M (at 50-70%). Estimated gross recovery on assets approximates $2.4-2.6B before liability settlement. Liabilities at face value total $4.37B, including current liabilities of $1.85B (accounts payable $488M, accrued liabilities $687M, current operating lease $267M, accrued employee liabilities $202M, restructuring reserve current $54M), long-term debt $1.05B, noncurrent operating lease obligations $1.00B, and other noncurrent liabilities $232M. The noncurrent operating lease stack ($1.27B combined current and noncurrent) is a significant fixed obligation under ASC 842 that does not extinguish on wind-up. Recovery gap is approximately -$1.8B to -$2.0B before accounting for pension/postretirement adjustments and production commitments not separately broken out in this filing. Compared to the prior fiscal year-end (10-K, November 30, 2025), operating lease liabilities appear stable. The quarter saw a $200M accelerated share repurchase and $53.8M in dividends paid, reducing the cash buffer. A $33M gain on legal settlement boosted GAAP income but is non-recurring and immaterial to the liquidation calculus. Restructuring reserves remain elevated at $66.5M total ($53.6M current), reflecting ongoing workforce reduction activity. The Dockers business disposition yielded $96.3M in divestiture proceeds during the quarter, modestly improving cash but removing a going-concern revenue stream. The balance sheet continues to reflect a structural liquidation deficit driven by the operating lease stack, long-term debt, and near-zero recovery on the large intangible and deferred-tax asset base.
▼ Community Notes