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)
	2015			2016			2017			2018			2019
For Year Ended April 30:
Sales	$	4,096		$	4,011		$	3,857		$	4,201		$	4,276
Excise taxes	$	962		$	922		$	863		$	953		$	952
Net sales	$	3,134		$	3,089		$	2,994		$	3,248		$	3,324
Gross profit	$	2,183		$	2,144		$	2,021		$	2,202		$	2,166
Operating income	$	1,045		$	1,556		$	1,010		$	1,048		$	1,144
Net income	$	684		$	1,067		$	669		$	717		$	835
Weighted average shares used to calculate earnings per share
– Basic	529.0			507.4			484.6			480.3			479.0
– Diluted	532.7			510.7			488.1			484.2			482.1
Earnings per share from continuing operations
– Basic	$	1.29		$	2.10		$	1.38		$	1.49		$	1.74
– Diluted	$	1.28		$	2.09		$	1.37		$	1.48		$	1.73
Gross margin	69.7		%	69.4		%	67.5		%	67.8		%	65.2		%
Operating margin	33.3		%	50.4		%	33.8		%	32.3		%	34.4		%
Effective tax rate	31.7		%	28.3		%	28.3		%	26.6		%	19.8		%
Average invested capital	$	3,196		$	3,221		$	3,591		$	3,832		$	4,125
Return on average invested capital	22.0		%	34.1		%	19.8		%	20.0		%	22.0		%
Cash provided by operations	$	631		$	545		$	656		$	653		$	800
Cash dividends declared per common share	$	0.484		$	0.524		$	0.564		$	1.608		$	0.648
Dividend payout ratio	37.5		%	25.0		%	40.9		%	107.8		%	37.2		%
As of April 30:
Total assets	$	4,188		$	4,183		$	4,625		$	4,976		$	5,139
Long-term debt	$	743		$	1,230		$	1,689		$	2,341		$	2,290
Total debt	$	1,183		$	1,501		$	2,149		$	2,556		$	2,440

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.	As discussed in Note 2 to the Consolidated Financial Statements, we adopted Accounting Standards Updates (ASUs) 2016-15 and 2017-07 as of May 1, 2018. The amounts presented above for operating income, operating margin, and cash provided by operations differ from previously reported amounts due to the retrospective application of those ASUs.
4.	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.
5.	Cash dividends declared per common share include a special cash dividend of $1.00 in fiscal 2018.
6	We define dividend payout ratio as cash dividends divided by net income.

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