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 27, 2019, is not necessarily indicative of results of future operations. To fully understand factors that may affect the comparability of the information presented below, this information should be read in conjunction with Part I-Item 1 Business, 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 Financial Statements and Supplementary Data of this Form 10-K.



(in thousands, except per share amounts)	2019			2018			2017			2016*			2015**
Operations
Net Sales	$	9,497,317		$	9,545,700		$	9,167,519		$	9,523,224		$	9,263,863
Net Earnings Attributable to Hormel Foods Corporation	978,806			1,012,140			846,735			890,052			686,088
% of net sales	10.31		%	10.60		%	9.24		%	9.35		%	7.41		%
EBIT(1)	1,195,923			1,179,519			1,276,374			1,312,918			1,055,612
% of net sales	12.59		%	12.36		%	13.92		%	13.79		%	11.39		%
EBITDA(2)	1,361,132			1,341,377			1,407,351			1,444,886			1,189,046
% of net sales	14.33		%	14.05		%	15.35		%	15.17		%	12.84		%
Return on Invested Capital(3)	15.63		%	16.24		%	16.30		%	18.89		%	15.47		%
Financial Position
Total Assets	$	8,109,004		$	8,142,292		$	6,975,908		$	6,370,067		$	6,139,831
Long-term Obligations, including capital leases	269,713			624,840			250,000			250,000			250,000
Hormel Foods Corporation Shareholders’ Investment	5,921,458			5,600,811			4,935,907			4,448,006			3,998,198
Cash Flows
Capital Expenditures	293,838			389,607			221,286			255,524			144,063
Acquisitions of Businesses	—			857,668			520,463			280,889			770,587
Proceeds from Sale of Business	479,806			—			135,944			110,149			—
Share Repurchase	174,246			46,898			94,487			87,885			24,928
Dividends Paid	437,053			388,107			346,010			296,493			250,834
Common Stock
Weighted-Average Shares Outstanding – Basic	534,578			530,742			528,363			529,290			528,143
Weighted-Average Shares Outstanding – Diluted	545,232			543,869			539,116			542,473			541,002
Earnings Per Share – Basic	$	1.83		$	1.91		$	1.60		$	1.68		$	1.30
Earnings Per Share – Diluted	1.80			1.86			1.57			1.64			1.27
Dividends Declared per Share	0.84			0.75			0.68			0.58			0.50
Hormel Foods Corporation Shareholders’ Investment per Share	11.08			10.49			9.34			8.42			7.57

The Company provides EBIT, EBITDA, and Return on Invested Capital because these measures are useful to management and investors as indicators of operating strength relative to prior years and are commonly used to benchmark the Company’s performance. These measures are calculated as follows:



(in thousands)	2019			2018			2017			2016*			2015**
(1) EBIT:
Net Earnings Attributable to Hormel Foods Corporation	$	978,806		$	1,012,140		$	846,735		$	890,052		$	686,088
Plus: Income Tax Expense	230,567			168,702			431,542			426,698			369,879
Plus: Interest Expense	18,070			26,494			12,683			12,871			13,111
Less: Interest and Investment Income***	31,520			27,817			14,586			16,703			13,466
EBIT	$	1,195,923		$	1,179,519		$	1,276,374		$	1,312,918		$	1,055,612
(2) EBITDA:
EBIT per (1) above	1,195,923			1,179,519			1,276,374			1,312,918			1,055,612
Plus: Depreciation and Amortization	165,209			161,858			130,977			131,968			133,434
EBITDA	$	1,361,132		$	1,341,377		$	1,407,351		$	1,444,886		$	1,189,046
(3) Return on Invested Capital:
EBIT per (1) above	1,195,923			1,179,519			1,276,374			1,312,918			1,055,612
X (1 – Effective Tax Rate****)	80.93		%	85.71		%	66.24		%	67.59		%	64.97		%
After-tax EBIT	$	967,860		$	1,010,966		$	845,470		$	887,401		$	685,831
Divided by:
Total Debt, including capital leases	269,713			624,840			250,000			250,000			435,000
Hormel Foods Corporation Shareholders’ Investment	5,921,458			5,600,811			4,935,907			4,448,006			3,998,198
Total Debt and Shareholders’ Investment	$	6,191,171		$	6,225,651		$	5,185,907		$	4,698,006		$	4,433,198
Return on Invested Capital	15.63		%	16.24		%	16.30		%	18.89		%	15.47		%

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.

*** Adjusted due to the adoption of Accounting Standards Update (ASU) 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715). See Note A - Summary of Significant Accounting Policies.

**** Excluding earnings attributable to noncontrolling interests.

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