Illinois Tool Works Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Illinois Tool Works Inc. filed its Q1 2024 10-Q report detailing financial positions and activities.</b>

AI Summary

ILLINOIS TOOL WORKS INC (ITW) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Filing is a 10-Q for Illinois Tool Works Inc. (ITW) for the period ending March 31, 2024. The company's standard industrial classification is General Industrial Machinery & Equipment. ITW's business address is 155 Harlem Avenue, Glenview, IL 60025. The filing includes data related to various Euro Notes due in 2024, 2027, 2030, 2031, and 2034. Financial data points for common stock, additional paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income are presented for multiple periods.

Why It Matters

For investors and stakeholders tracking ILLINOIS TOOL WORKS INC, this filing contains several important signals. This 10-Q filing provides a quarterly update on ITW's financial health and operational performance, crucial for investors to assess recent business trends. The inclusion of specific debt instruments like Euro Notes due in various years allows stakeholders to understand the company's debt structure and maturity profile.

Risk Assessment

Risk Level: low — ILLINOIS TOOL WORKS INC shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not inherently contain new, high-impact information that would significantly alter risk assessment.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand ITW's performance drivers and any emerging trends.

Key Numbers

• 2024-03-31 — Report Date (Conformed period of report)
• 2024-05-02 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (First day of the reporting period)
• 2024-03-31 — Quarter End Date (Last day of the reporting period)

Key Players & Entities

• ILLINOIS TOOL WORKS INC (company) — Filer name
• ITW (company) — Ticker symbol
• 155 HARLEM AVENUE (company) — Business address street
• GLENVIEW (company) — Business address city
• IL (company) — Business address state
• 60025 (company) — Business address zip
• 361258310 (company) — IRS number
• DE (company) — State of incorporation

FAQ

Industry Context

Illinois Tool Works Inc. operates within the General Industrial Machinery & Equipment sector, a segment characterized by the manufacturing and distribution of various industrial products.

Regulatory Implications

This filing adheres to the requirements of the Securities Exchange Act of 1934, specifically Form 10-Q, which mandates quarterly reporting for public companies.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity compared to prior periods.
2. Examine the statement of cash flows to understand ITW's cash generation and usage during the quarter.
3. Review any disclosures related to debt instruments and their terms.

Year-Over-Year Comparison

This is the initial filing provided for analysis, so a comparison to a previous filing is not possible with the given data.

Key Financial Figures

• $0.01 — of shares of registrant's common stock, $0.01 par value, outstanding at March 31, 202

Filing Documents

• itw-20240331.htm (10-Q) — 852KB
• a20240331-ex18deloittepref.htm (EX-18) — 4KB
• a20240331-1q24ex31.htm (EX-31) — 21KB
• a20240331-1q24ex32.htm (EX-32) — 8KB
• 0000049826-24-000020.txt (&nbsp;) — 3866KB
• itw-20240331.xsd (EX-101.SCH) — 28KB
• itw-20240331_cal.xml (EX-101.CAL) — 59KB
• itw-20240331_def.xml (EX-101.DEF) — 109KB
• itw-20240331_lab.xml (EX-101.LAB) — 335KB
• itw-20240331_pre.xml (EX-101.PRE) — 228KB
• itw-20240331_htm.xml (XML) — 356KB

- Financial Information

PART I - Financial Information Item 1 .

Financial Statements

Financial Statements 3 Item 2 .

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4 .

Controls and Procedures

Controls and Procedures 29

- Other Information

PART II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A .

Risk Factors

Risk Factors 30 Item 2 . Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 6 . Exhibits 31

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements Illinois Tool Works Inc. and Subsidiaries Three Months Ended March 31, In millions except per share amounts 2024 2023 Operating Revenue $ 3,973 $ 4,019 Cost of revenue 2,145 2,341 Selling, administrative, and research and development expenses 676 675 Amortization and impairment of intangible assets 25 31 Operating Income 1,127 972 Interest expense ( 71 ) ( 60 ) Other income (expense) 16 10 Income Before Taxes 1,072 922 Income Taxes 253 208 Net Income $ 819 $ 714 Net Income Per Share: Basic $ 2.74 $ 2.34 Diluted $ 2.73 $ 2.33 Shares of Common Stock Outstanding During the Period: Average 298.9 305.0 Average assuming dilution 300.0 306.1 The Notes to Financial Statements are an integral part of this statement. 3 Illinois Tool Works Inc. and Subsidiaries Three Months Ended March 31, In millions 2024 2023 Net Income $ 819 $ 714 Foreign currency translation adjustments, net of tax ( 51 ) 37 Pension and other postretirement benefit adjustments, net of tax 1 — Other comprehensive income (loss) ( 50 ) 37 Comprehensive Income $ 769 $ 751 The Notes to Financial Statements are an integral part of this statement. 4 Illinois Tool Works Inc. and Subsidiaries In millions except per share amounts March 31, 2024 December 31, 2023 Assets Current Assets: Cash and equivalents $ 959 $ 1,065 Trade receivables 3,238 3,123 Inventories 1,825 1,707 Prepaid expenses and other current assets 349 340 Total current assets 6,371 6,235 Net plant and equipment 1,973 1,976 Goodwill 4,904 4,909 Intangible assets 653 657 Deferred income taxes 462 479 Other assets 1,290 1,262 $ 15,653 $ 15,518 Liabilities and Stockholders' Equity Current Liabilities: Short-term debt $ 2,066 $ 1,825 Accounts payable 597 581 Accrued expenses 1,512 1,663 Cash dividends payable 418 419 Income taxes pay

Notes to Financial Statements (Unaudited)

Notes to Financial Statements (Unaudited) (1) Significant Accounting Policies Financial Statements — The unaudited financial statements included herein have been prepared by Illinois Tool Works Inc. and Subsidiaries (the "Company"). In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for interim periods. Interim results are not necessarily indicative of results for the full year. It is suggested that these financial statements be read in conjunction with the financial statements and notes to financial statements included in the Company's 2023 Annual Report on Form 10-K. Certain reclassifications of prior year data have been made to conform with current year reporting. Inventories — Inventories are stated at the lower of cost or net realizable value and include material, labor and factory overhead. As of December 31, 2023, the last-in, first-out ("LIFO") method was used to determine the cost of inventories at certain U.S. businesses representing approximately 23 % of total inventories, and the first-in, first-out ("FIFO") method, which approximates current cost, was used for all other inventories. During the first quarter of 2024, the Company changed the method used to determine the cost of inventory at certain U.S. businesses from LIFO to the FIFO method, as the Company believes the FIFO method is preferable because it provides a more consistent method for valuing inventory across the Company's operations, improves comparability with peers, and better reflects the current value of inventories at the balance sheet date. The LIFO provision for the years ended December 31, 2023 and 2022 was $ 6 million of expense and $ 7 million of income, respectively, and was not material to the Company's results of operations, financial position or cash flows. Therefore, the Company has recorded the pre-tax cumulative effect of this change in accounting method of $ 1

View Full Filing

View this 10-Q filing on SEC EDGAR