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.”



	(Dollars in millions, except per share amounts)
	2008			2009		2010		2011		2012		2013		2014		2015		2016		2017
For Year Ended April 30:
Sales	$	3,282		3,192		3,226		3,404		3,614		3,784		3,946		4,096		4,011		3,857
Excise taxes	$	700		711		757		818		891		935		955		962		922		863
Net sales	$	2,582		2,481		2,469		2,586		2,723		2,849		2,991		3,134		3,089		2,994
Gross profit	$	1,695		1,577		1,611		1,724		1,795		1,955		2,078		2,183		2,144		2,021
Operating income	$	685		661		710		855		788		898		971		1,027		1,533		989
Net income	$	440		435		449		572		513		591		659		684		1,067		669
Weighted average shares used to calculate earnings per share
– Basic	459.2			451.4		443.5		436.8		429.1		426.7		426.9		423.2		406.0		387.7
– Diluted	463.2			454.1		445.7		439.5		432.2		430.0		430.2		426.2		408.6		390.5
Earnings per share from continuing operations
– Basic	$	0.96		0.96		1.01		1.31		1.20		1.38		1.54		1.62		2.63		1.72
– Diluted	$	0.95		0.96		1.01		1.30		1.19		1.37		1.53		1.60		2.61		1.71
Gross margin	65.6		%	63.5	%	65.3	%	66.7	%	65.9	%	68.6	%	69.5	%	69.7	%	69.4	%	67.5	%
Operating margin	26.5		%	26.6	%	28.8	%	33.1	%	29.0	%	31.5	%	32.5	%	32.8	%	49.6	%	33.0	%
Effective tax rate	31.7		%	31.1	%	34.1	%	31.0	%	32.5	%	31.7	%	30.5	%	31.7	%	28.3	%	28.3	%
Average invested capital	$	2,747		2,893		2,825		2,711		2,803		2,834		3,131		3,196		3,221		3,680
Return on average invested capital	17.2		%	15.9	%	16.6	%	21.8	%	19.1	%	21.7	%	21.6	%	22.0	%	34.1	%	19.3	%
Cash flow from operations	$	534		491		545		527		516		537		649		608		524		639
Cash dividends declared per common share	$	0.343		0.373		0.392		0.747		0.447		2.488		0.545		0.605		0.655		0.705
Dividend payout ratio	35.8		%	38.9	%	38.7	%	57.0	%	37.4	%	179.8	%	35.3	%	37.5	%	25.0	%	40.9	%
As of April 30:
Total assets	$	3,405		3,475		3,383		3,712		3,477		3,626		4,103		4,188		4,183		4,625
Long-term debt	$	417		509		508		504		503		997		997		743		1,230		1,689
Total debt	$	1,006		999		699		759		510		1,002		1,005		1,183		1,501		2,149

Notes:



1.	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 in March 2016. Includes the results of BenRiach since its acquisition in June 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, a 3-for-2 stock split in August 2012, and a 2-for-1 stock split that occurred in August 2016.
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 $0.333 per share in fiscal 2011 and $2.00 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 Operations” for additional information about the impact of that sale on our operating results for fiscal 2016.

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