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,	2007			2008		2009		2010		2011		2012		2013		2014		2015		2016
Continuing Operations:
Net sales	$	2,806		3,282		3,192		3,226		3,404		3,614		3,784		3,946		4,096		4,011
Gross profit	$	1,481		1,695		1,577		1,611		1,724		1,795		1,955		2,078		2,183		2,144
Operating income	$	602		685		661		710		855		788		898		971		1,027		1,533
Net income	$	400		440		435		449		572		513		591		659		684		1,067
Weighted average shares used to calculate earnings per share
– Basic	230.4			229.6		225.7		221.8		218.4		214.5		213.4		213.5		211.6		203.0
– Diluted	232.8			231.6		227.1		222.9		219.8		216.1		215.0		215.1		213.1		204.3
Earnings per share from continuing operations
– Basic	$	1.74		1.91		1.92		2.02		2.61		2.39		2.77		3.08		3.23		5.26
– Diluted	$	1.72		1.89		1.91		2.01		2.60		2.37		2.75		3.06		3.21		5.22
Gross margin	52.8		%	51.6	%	49.4	%	50.0	%	50.7	%	49.7	%	51.7	%	52.7	%	53.3	%	53.4	%
Operating margin	21.5		%	20.9	%	20.7	%	22.0	%	25.1	%	21.8	%	23.7	%	24.6	%	25.1	%	38.2	%
Effective tax rate	31.7		%	31.7	%	31.1	%	34.1	%	31.0	%	32.5	%	31.7	%	30.5	%	31.7	%	28.3	%
Average invested capital	$	2,431		2,747		2,893		2,825		2,711		2,803		2,834		3,131		3,196		3,221
Return on average invested capital	17.4		%	17.2	%	15.9	%	16.6	%	21.8	%	19.1	%	21.7	%	21.6	%	22.0	%	34.1	%
Total Company:
Cash dividends declared per common share	$	0.62		0.69		0.75		0.78		1.49		0.89		4.98		1.09		1.21		1.31
Total assets at April 30	$	3,551		3,405		3,475		3,383		3,712		3,477		3,626		4,103		4,188		4,183
Long-term debt at April 30	$	422		417		509		508		504		503		997		997		743		1,230
Total debt at April 30	$	1,177		1,006		999		699		759		510		1,002		1,005		1,183		1,501
Cash flow from operations	$	355		534		491		545		527		516		537		649		608		524
Dividend payout ratio	36.8		%	35.8	%	38.9	%	38.7	%	57.0	%	37.4	%	179.8	%	35.3	%	37.5	%	25.0	%

Notes:



1.	Includes the consolidated results of Chambord and Casa Herradura since their acquisitions in 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. Includes the results of Southern Comfort and Tuaca, both of which were sold on March 1, 2016.
2.	Weighted average shares, earnings per share, and cash dividends declared per common share have been adjusted for a 5-for-4 stock split in October 2008 and a 3-for-2 stock split in August 2012.
3.	See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation – Non-GAAP Financial Measures” for details on our use of “return on average invested capital,” including how we calculate this measure and why we think this information is useful to readers.
4.	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.
5.	We define dividend payout ratio as cash dividends divided by net income.
6.	Results for fiscal 2016 include a gain of $485 million on the sale of Southern Comfort and Tuaca. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation – Executive Summary – Fiscal 2016 Financial Highlights” for additional information about the impact of that sale on our operating results for fiscal 2016.

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