Item 6. Selected Financial Data

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Item 6. Selected Financial Data

This selected financial data should be read in conjunction with “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements and the accompanying Notes contained in “Item 8. Financial Statements and Supplementary Data.”

BROWN-FORMAN CORPORATION

SELECTED FINANCIAL DATA

(Dollars in millions, except per share amounts)



Year Ended April 30,	2006			2007		2008		2009		2010		2011		2012		2013		2014		2015
Continuing Operations:
Net sales	$	2,412		2,806		3,282		3,192		3,226		3,404		3,614		3,784		3,946		4,096
Gross profit	$	1,308		1,481		1,695		1,577		1,611		1,724		1,795		1,955		2,078		2,183
Operating income	$	563		602		685		661		710		855		788		898		971		1,027
Net income	$	395		400		440		435		449		572		513		591		659		684
Weighted average shares used to calculate earnings per share
– Basic	228.9			230.4		229.6		225.7		221.8		218.4		214.5		213.4		213.5		211.6
– Diluted	231.4			232.8		231.6		227.1		222.9		219.8		216.1		215.0		215.1		213.1
Earnings per share from continuing operations
– Basic	$	1.73		1.74		1.91		1.92		2.02		2.61		2.39		2.77		3.08		3.23
– Diluted	$	1.71		1.72		1.89		1.91		2.01		2.60		2.37		2.75		3.06		3.21
Gross margin	54.2		%	52.8	%	51.6	%	49.4	%	50.0	%	50.7	%	49.7	%	51.7	%	52.7	%	53.3	%
Operating margin	23.3		%	21.5	%	20.9	%	20.7	%	22.0	%	25.1	%	21.8	%	23.7	%	24.6	%	25.1	%
Effective tax rate	29.3		%	31.7	%	31.7	%	31.1	%	34.1	%	31.0	%	32.5	%	31.7	%	30.5	%	31.7	%
Average invested capital	$	1,863		2,431		2,747		2,893		2,825		2,711		2,803		2,834		3,131		3,196
Return on average invested capital	21.9		%	17.4	%	17.2	%	15.9	%	16.6	%	21.8	%	19.1	%	21.7	%	21.6	%	22.0	%
Total Company:
Cash dividends declared per common share	$	0.56		0.62		0.69		0.75		0.78		1.49		0.89		4.98		1.09		1.21
Average stockholders’ equity	$	1,397		1,700		1,668		1,793		1,870		1,904		2,046		1,879		1,817		2,040
Total assets at April 30	$	2,728		3,551		3,405		3,475		3,383		3,712		3,477		3,626		4,103		4,193
Long-term debt at April 30	$	351		422		417		509		508		504		503		997		997		748
Total debt at April 30	$	576		1,177		1,006		999		699		759		510		1,002		1,005		1,188
Cash flow from operations	$	343		355		534		491		545		527		516		537		649		608
Return on average stockholders’ equity	22.9		%	22.9	%	26.4	%	24.2	%	24.0	%	30.0	%	25.1	%	31.4	%	36.3	%	33.5	%
Total debt to total capital	26.9		%	42.8	%	36.8	%	35.5	%	26.9	%	26.9	%	19.8	%	38.1	%	33.1	%	38.4	%
Dividend payout ratio	40.0		%	36.8	%	35.8	%	38.9	%	38.7	%	57.0	%	37.4	%	179.8	%	35.3	%	37.5	%

Notes:



1.	Includes the consolidated results of Swift & Moore, Chambord, and Casa Herradura since their acquisitions in February 2006, May 2006, and January 2007, respectively. Includes the results of our Hopland-based wine brands, which were sold in April 2011 but retained in our portfolio as agency brands through December 2011.
2.	Weighted average shares, earnings per share, and cash dividends declared per common share have been adjusted for a 2-for-1 stock split in January 2004, a 5-for-4 stock split in October 2008, and a 3-for-2 stock split in August 2012.
3.	Cash dividends declared per common share include special cash dividends of $0.67 per share in fiscal 2011 and $4.00 per share in fiscal 2013.
4.	We define return on average invested capital as the sum of net income and after-tax interest expense, divided by average invested capital. Average invested capital equals assets less liabilities, excluding interest-bearing debt and is calculated using the average of the most recent 13 month-end balances. After-tax interest expense equals interest expense multiplied by one minus our effective tax rate.
5.	We define return on average stockholders’ equity as net income applicable to common stock divided by average stockholders’ equity.
6.	We define total debt to total capital as total debt divided by the sum of total debt and stockholders’ equity.
7.	We define dividend payout ratio as cash dividends divided by net income.

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