Item 6. Selected Financial Data

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Item 6. Selected Financial Data

The following table sets forth selected consolidated financial data of the Company. The selected consolidated balance sheet data as of December 29, 2018 and December 30, 2017 and the selected consolidated statement of income data for the years ended December 29, 2018, December 30, 2017, and December 31, 2016 were derived from the Company’s audited consolidated financial statements and the related notes thereto which are included in Item 8 of this annual report on Form 10-K. The selected consolidated balance sheet data as of December 31, 2016, December 26, 2015, and December 27, 2014 and the selected consolidated statement of income data for the years ended December 26, 2015 and December 27, 2014 were derived from the Company’s audited consolidated financial statements, not included herein.

The information set forth below is not necessarily indicative of the results of future operations and should be read together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and notes to those statements included in Items 7 and 8 in Part II of this Form 10-K.

The Company adopted the new accounting standard for revenue recognition, as discussed in Note 2 – Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements, effective beginning with the Company’s first quarter of 2018. Adoption of the new revenue recognition standard was applied using the full retrospective method, and information for prior periods within Items 6 and 7 in Part II of this Form 10-K have been restated accordingly.

In the table presented below, the consolidated statements of income and balance sheet data for the years ended December 30, 2017 and December 31, 2016 and the balance sheet data for the year ended December 26, 2015 have been restated in accordance with the Company’s adoption of the new revenue recognition standard.

	Years ended (1)
	Dec. 29, 2018		Dec. 30, 2017			Dec. 31, 2016		Dec. 26, 2015		Dec. 27, 2014
	(in thousands, except per share data)
Consolidated Statements of Income Data:
Net sales	$	3,347,444	$	3,121,560		$	3,045,797	$	2,820,270	$	2,870,658
Cost of goods sold		1,367,725		1,323,619			1,357,272		1,281,566		1,266,246
Gross profit		1,979,719		1,797,941			1,688,525		1,538,704		1,604,412

Operating expenses:
Advertising expense		155,394		164,693			177,143		167,166		146,633
Selling, general and administrative		478,177		437,977			410,558		394,914		372,032
Research and development		567,805		511,634			467,960		427,043		395,121
Total operating expenses		1,201,376		1,114,304			1,055,661		989,123		913,786

Operating income		778,343		683,637			632,864		549,581		690,626
Other income, net (2)(3)		44,904		13,434			5,761		17,606		33,119
Income before income taxes		823,247		697,071			638,625		567,187		723,745

Income tax provision (benefit) (4)		129,167		(11,936	)		120,901		110,960		359,534
Net income	$	694,080	$	709,007		$	517,724	$	456,227	$	364,211

Net income per share:
Basic	$	3.68	$	3.77		$	2.74	$	2.39	$	1.89
Diluted	$	3.66	$	3.76		$	2.73	$	2.39	$	1.88
Weighted average common shares outstanding:
Basic		188,635		187,828			188,818		190,631		193,106
Diluted		189,734		188,732			189,343		191,107		194,165

Dividends declared per share	$	2.12	$	2.04		$	2.04	$	2.04	$	1.92

Balance Sheet Data (at end of Period):
Cash and cash equivalents	$	1,201,732	$	891,488		$	846,883	$	833,070	$	1,196,268
Marketable securities		1,513,112		1,421,720			1,480,237		1,558,548		1,575,333
Total assets		5,382,858		4,948,289			4,484,549		4,478,529		4,693,303
Total debt		—		—			—		—		—
Total stockholders’ equity		4,162,974		3,852,419			3,453,259		3,373,734		3,403,367

	(1)	Our fiscal year-end is the last Saturday of the calendar year and does not always fall on December 31. All years presented contain 52 weeks excluding Fiscal 2016 which includes 53 weeks.

	(2)	Other income, net mainly consists of gain (loss) on sale of marketable securities, interest income, and foreign currency gain (loss).

	(3)	Includes $7.6 million, $22.6 million, $31.7 million, $23.5 million, and $4.3 million of foreign currency losses in 2018, 2017, 2016, 2015, and 2014, respectively.

	(4)	2017 – includes $180.0 million income tax benefit primarily related to the revaluation of certain Switzerland deferred tax assets resulting from the Company’s election to align Switzerland corproate tax positions with international tax initiatives, partially offset by $22.6 million of income tax expense due to the expiration of certain share-based awards;

2014 – includes $307.6 million income tax expense associated with our inter-company restructuring partially offset by $72.9 million income tax reserve release due to expiration of certain statutes of limitations or completion of tax audits

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