Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA

The information set forth below for the five years ended October 28, 2018, is not necessarily indicative of results of future operations, and should be read in conjunction with Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and related notes thereto included in Part II, Item 8 of this Form 10-K to fully understand factors that may affect the comparability of the information presented below.



(in thousands, except per share amounts)	2018			2017			2016*			2015**			2014**
Operations
Net Sales	$	9,545,700		$	9,167,519		$	9,523,224		$	9,263,863		$	9,316,256
Net Earnings	1,012,582			847,103			890,517			687,264			606,026
Net Earnings Attributable to Hormel Foods Corporation	1,012,140			846,735			890,052			686,088			602,677
% of net sales	10.60		%	9.24		%	9.35		%	7.41		%	6.47		%
EBIT(1)	1,198,479			1,280,101			1,323,430			1,066,144			928,271
% of net sales	12.56		%	13.96		%	13.90		%	11.51		%	9.96		%
EBITDA(2)	1,360,337			1,411,078			1,455,398			1,199,578			1,058,315
% of net sales	14.25		%	15.39		%	15.28		%	12.95		%	11.36		%
Return on Invested Capital (3)	16.50		%	16.35		%	19.04		%	15.62		%	15.79		%
Financial Position
Total Assets	$	8,142,292		$	6,975,908		$	6,370,067		$	6,139,831		$	5,455,619
Long-term Debt less Current Maturities	624,840			250,000			250,000			250,000			250,000
Hormel Foods Corporation Shareholders’ Investment	5,600,811			4,935,907			4,448,006			3,998,198			3,605,678
Selected Cash Flow Data
Depreciation and Amortization	$	161,858		$	130,977		$	131,968		$	133,434		$	130,044
Capital Expenditures	389,607			221,286			255,524			144,063			159,138
Acquisitions of Businesses	857,668			520,463			280,889			770,587			466,204
Share Repurchase	46,898			94,487			87,885			24,928			58,937
Dividends Paid	388,107			346,010			296,493			250,834			203,156
Common Stock
Weighted-Average Shares Outstanding – Basic	530,742			528,363			529,290			528,143			527,624
Weighted-Average Shares Outstanding – Diluted	543,869			539,116			542,473			541,002			540,431
Earnings per Share – Basic	$	1.91		$	1.60		$	1.68		$	1.30		$	1.14
Earnings per Share – Diluted	1.86			1.57			1.64			1.27			1.12
Dividends per Share	0.75			0.68			0.58			0.50			0.40
Hormel Foods Corporation Shareholders’ Investment Per Share	10.49			9.34			8.42			7.57			6.84

The Company provides EBIT, EBITDA, and Return on Invested Capital because these measures are useful to investors as indicators of operating strength and performance relative to prior years and are typically used to benchmark our Company’s performance against other companies in our industry. Management uses EBIT as a component of certain executive incentive plans but does not utilize EBITDA for any material purpose. These measures are calculated as follows:



(in thousands)	2018			2017			2016*			2015			2014
(1) EBIT:
Net Earnings Attributable to Hormel Foods Corporation	$	1,012,140		$	846,735		$	890,052		$	686,088		$	602,677
Plus: Income Tax Expense	168,702			431,542			426,698			369,879			316,126
Plus: Interest Expense	26,494			12,683			12,871			13,111			12,704
Less: Interest and Investment Income	8,857			10,859			6,191			2,934			3,236
EBIT	$	1,198,479		$	1,280,101		$	1,323,430		$	1,066,144		$	928,271
(2) EBITDA:
EBIT per (1) above	1,198,479			1,280,101			1,323,430			1,066,144			928,271
Plus: Depreciation and Amortization	161,858			130,977			131,968			133,434			130,044
EBITDA	$	1,360,337		$	1,411,078		$	1,455,398		$	1,199,578		$	1,058,315
(3) Return on Invested Capital:
EBIT per (1) above	1,198,479			1,280,101			1,323,430			1,066,144			928,271
X (1 – Effective Tax Rate***)	85.71		%	66.24		%	67.59		%	64.97		%	65.59		%
After-tax EBIT	$	1,027,336		$	848,067		$	894,506		$	692,674		$	608,887
Divided by:
Total Debt	624,840			250,000			250,000			435,000			250,000
Hormel Foods Corporation Shareholders’ Investment	5,600,811			4,935,907			4,448,006			3,998,198			3,605,678
Total Debt and Shareholders’ Investment	$	6,225,651		$	5,185,907		$	4,698,006		$	4,433,198		$	3,855,678
Return on Invested Capital	16.50		%	16.35		%	19.04		%	15.62		%	15.79		%

Fiscal 2016 included 53 weeks.

** Shares and per share figures have been restated to reflect the two-for-one stock split distributed on February 9, 2016.

*** Excluding earnings attributable to noncontrolling interests.

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