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)
	2014			2015			2016			2017			2018
For Year Ended April 30:
Net sales	$	2,991		$	3,134		$	3,089		$	2,994		$	3,248
Gross profit	$	2,078		$	2,183		$	2,144		$	2,021		$	2,202
Operating income	$	971		$	1,027		$	1,533		$	989		$	1,039
Net income	$	659		$	684		$	1,067		$	669		$	717
Weighted average shares used to calculate earnings per share
– Basic	533.6			529.0			507.4			484.6			480.3
– Diluted	537.7			532.7			510.7			488.1			484.2
Earnings per share from continuing operations
– Basic	$	1.23		$	1.29		$	2.10		$	1.38		$	1.49
– Diluted	$	1.22		$	1.28		$	2.09		$	1.37		$	1.48
Gross margin	69.5		%	69.7		%	69.4		%	67.5		%	67.8		%
Operating margin	32.5		%	32.8		%	49.6		%	33.0		%	32.0		%
Effective tax rate	30.5		%	31.7		%	28.3		%	28.3		%	26.6		%
Average invested capital	$	3,131		$	3,196		$	3,221		$	3,591		$	3,832
Return on average invested capital	21.6		%	22.0		%	34.1		%	19.8		%	20.0		%
Cash flow from operations	$	649		$	608		$	524		$	639		$	632
Cash dividends declared per common share	$	0.436		$	0.484		$	0.524		$	0.564		$	1.608
Dividend payout ratio	35.3		%	37.5		%	25.0		%	40.9		%	107.8		%
As of April 30:
Total assets	$	4,103		$	4,188		$	4,183		$	4,625		$	4,976
Long-term debt	$	997		$	743		$	1,230		$	1,689		$	2,341
Total debt	$	1,005		$	1,183		$	1,501		$	2,149		$	2,556

Notes:



1.	Includes the results of Southern Comfort and Tuaca, both of which were sold in March 2016 at a gain of $485 million (pre-tax). 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 2-for-1 stock split in August 2016 and a 5-for-4 stock split in February 2018.
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 a special cash dividend of $1.00 in fiscal 2018.
5.	We define dividend payout ratio as cash dividends divided by net income.

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