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 25, 2020, 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)	2020			2019			2018			2017			2016*
Operations
Net Sales	$	9,608,462		$	9,497,317		$	9,545,700		$	9,167,519		$	9,523,224

Net Earnings Attributable to Hormel Foods Corporation	908,082			978,806			1,012,140			846,735			890,052
% of Net Sales	9.5		%	10.3		%	10.6		%	9.2		%	9.3		%
EBIT(1)	1,099,948			1,195,923			1,179,519			1,276,374			1,312,918
% of Net Sales	11.4		%	12.6		%	12.4		%	13.9		%	13.8		%
EBITDA(2)	1,305,729			1,361,132			1,341,377			1,407,351			1,444,886
% of Net Sales	13.6		%	14.3		%	14.1		%	15.4		%	15.2		%
Return on Invested Capital(3)	11.6		%	15.6		%	16.2		%	16.3		%	18.9		%
Financial Position
Total Assets	$	9,908,282		$	8,109,004		$	8,142,292		$	6,975,908		$	6,370,067
Total Debt, Including Finance Leases	1,303,627			269,713			624,840			250,000			250,000
Hormel Foods Corporation Shareholders’ Investment	6,425,548			5,921,458			5,600,811			4,935,907			4,448,006
Cash Flows

Capital Expenditures	367,501			293,838			389,607			221,286			255,524
Acquisitions of Businesses and Intangibles	270,789			—			857,668			520,463			280,889
Proceeds from Sale of Business	—			479,806			—			135,944			110,149
Share Repurchase	12,360			174,246			46,898			94,487			87,885
Dividends Paid	487,376			437,053			388,107			346,010			296,493
Common Stock
Weighted-Average Shares Outstanding – Basic	538,007			534,578			530,742			528,363			529,290
Weighted-Average Shares Outstanding – Diluted	546,592			545,232			543,869			539,116			542,473
Earnings Per Share – Basic	$	1.69		$	1.83		$	1.91		$	1.60		$	1.68
Earnings Per Share – Diluted	1.66			1.80			1.86			1.57			1.64
Dividends Declared per Share	0.93			0.84			0.75			0.68			0.58
Hormel Foods Corporation Shareholders’ Investment per Share	11.90			11.08			10.49			9.34			8.42

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)	2020			2019			2018			2017			2016*
(1) EBIT:
Net Earnings Attributable to Hormel Foods Corporation	$	908,082		$	978,806		$	1,012,140		$	846,735		$	890,052
Plus: Income Tax Expense	206,393			230,567			168,702			431,542			426,698
Plus: Interest Expense	21,069			18,070			26,494			12,683			12,871
Less: Interest and Investment Income**	35,596			31,520			27,817			14,586			16,703
EBIT	$	1,099,948		$	1,195,923		$	1,179,519		$	1,276,374		$	1,312,918
(2) EBITDA:
EBIT per above	1,099,948			1,195,923			1,179,519			1,276,374			1,312,918
Plus: Depreciation and Amortization	205,781			165,209			161,858			130,977			131,968
EBITDA	$	1,305,729		$	1,361,132		$	1,341,377		$	1,407,351		$	1,444,886
(3) Return on Invested Capital:
EBIT per above	1,099,948			1,195,923			1,179,519			1,276,374			1,312,918
X (1 – Effective Tax Rate***)	81.5		%	80.9		%	85.7		%	66.2		%	67.6		%
After-tax EBIT	$	896,238		$	967,860		$	1,010,966		$	845,470		$	887,401
Divided by:
Total Debt, Including Finance Leases	1,303,627			269,713			624,840			250,000			250,000
Hormel Foods Corporation Shareholders’ Investment	6,425,548			5,921,458			5,600,811			4,935,907			4,448,006
Total Debt and Shareholders’ Investment	$	7,729,175		$	6,191,171		$	6,225,651		$	5,185,907		$	4,698,006
Return on Invested Capital	11.6		%	15.6		%	16.2		%	16.3		%	18.9		%

Fiscal 2016 included 53 weeks.

** 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).

*** Excluding earnings attributable to noncontrolling interests.

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