Item 6. Selected Financial Data

| --- | --- |

The following table sets forth selected historical consolidated financial and operating data for the periods indicated. The statement of operations and balance sheet data is derived from financial statements for the years 2020, 2019, 2018, 2017 and 2016. The Company’s financial statements as of December 31, 2020 and 2019, and for each of the three years in the period ended December 31, 2020 are included in Part II, Item 8, Financial Statements and Supplementary Data, of this Form

10-K.


In thousands, except per share and employees data	2020		2019			2018		2017		2016
STATEMENT OF OPERATIONS DATA:
Net sales	$	2,365,365	$	2,406,596		$	2,419,929	$	2,309,078	$	2,167,423
Income from operations before income taxes	$	610,914	$	678,239		$	682,146	$	641,097	$	600,114
Net income*	$	521,571	$	592,198		$	593,794	$	20,311	$	521,503
Net income per basic common share*	$	8.40	$	8.76		$	7.71	$	0.25	$	6.46
Weighted-average number of basic common shares		62,094		67,627			76,992		79,793		80,786
Net income per diluted common share*	$	8.36	$	8.69		$	7.65	$	0.25	$	6.41
Weighted-average number of diluted common shares and equivalents		62,414		68,166			77,618		80,604		81,417
BALANCE SHEET AND OTHER DATA:
Cash, cash equivalents and investments	$	443,146	$	337,144		$	1,735,224	$	3,393,701	$	2,813,032
Working capital, including current maturities of debt**	$	596,050	$	721,157		$	2,214,232	$	3,663,977	$	3,115,124
Total assets**	$	2,839,920	$	2,557,055		$	3,727,426	$	5,324,354	$	4,662,059
Long-term debt	$	1,206,515	$	1,580,797		$	1,148,172	$	1,897,501	$	1,701,966
Stockholders’ equity (deficit)***	$	232,144	$	(216,281	)	$	1,567,258	$	2,233,788	$	2,301,949
Employees		7,412		7,467			7,246		7,020		6,899

The provision for income taxes for 2017 includes a $550 million estimate for the impact of the enactment of the 2017 Tax Act, which was signed into law on December 22, 2017. The $550 million income tax provision reduced net income per share by $6.82. The $550 million income tax provision primarily consists of an estimated transition tax, as well as estimated income tax provisions for state and withholding taxes and a provision associated with the remeasurement of the Company’s deferred tax assets and liabilities from 35% to the new U.S. corporate income tax rate of 21%.

The Company adopted new accounting guidance related to stock-based compensation in 2017. The new accounting guidance requires the excess tax benefits or deficiencies related to stock-based compensation to be reflected in the consolidated statements of operations as a component of the provision for income taxes, whereas they were previously recognized in equity. This aspect of the new accounting guidance was required to be adopted on a prospective basis for the statement of operations and retroactive restatement was not permitted. In 2020, 2019 and 2018, the Company recognized an excess tax benefit, which decreased income tax expense by $7 million, $9 million and $9 million, respectively, and added $0.11, $0.14 and $0.11, respectively, to net income per diluted share.

In addition, in December 2018, the Company settled a pension plan obligation by making

lump-sum

cash payments and purchasing annuity contracts for participants to permanently extinguish the pension plan’s obligations. As a result, the Company recorded a $46 million charge, which consisted of a $6 million cash contribution to the plan and a $40 million

non-cash

charge related to the reversal of unrecognized actuarial losses recorded in accumulated other comprehensive income in the stockholders’ equity. The $46 million

pre-tax

charge reduced net income per diluted share by $0.39.

In January 2019, the company adopted new accounting guidance related to the accounting for leases. The new guidance requires lessees to present the assets and liabilities that arise from leases on their balance sheets. The standard required using a modified retrospective transition approach to be applied to leases existing as of, or entered into after, January 1, 2019. As a result, the Company recorded a $93 million right-of-use asset as of December 31, 2019. The adoption of this standard did not have a material impact on the Company’s results of operations, cash flows and stockholders’ equity (deficit).

***	In 2018, the Company adopted new accounting guidance which eliminates the deferral of tax effects on intra-entity transfers other than inventory and requires an entity to recognize the income tax consequences when the transfer occurs. The Company adopted this standard as of January 1, 2018 with a $4 million charge to beginning retained earnings in the consolidated balance sheet.

Previous: Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities · Next: Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations