Illinois Tool Works Q2 2024 10-Q Filing

TL;DR

ITW's Q2 10-Q is out, showing debt and financial details. All good.

AI Summary

Illinois Tool Works Inc. (ITW) filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational aspects for the second quarter and the first half of the year. Key financial instruments and debt obligations, including various Euro Notes with different maturity dates and interest rates, are listed.

Why It Matters

This filing provides investors with a detailed look at ITW's financial health and debt structure as of mid-2024, crucial for understanding its stability and future financial commitments.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report and does not indicate any immediate or significant new risks.

Key Players & Entities

• ILLINOIS TOOL WORKS INC (company) — Filer
• 20240630 (date) — Period of Report
• 0000049826 (company) — Central Index Key
• 3560 (industry_code) — Standard Industrial Classification
• 361258310 (tax_id) — IRS Number
• DE (state) — State of Incorporation
• 1231 (date) — Fiscal Year End
• 1934 Act (regulation) — SEC Act
• 001-04797 (file_number) — SEC File Number
• 241168297 (film_number) — Film Number

FAQ

Key Financial Figures

• $0.01 — of shares of registrant's common stock, $0.01 par value, outstanding at June 30, 2024

Filing Documents

• itw-20240630.htm (10-Q) — 1285KB
• a20240630-2q24ex31.htm (EX-31) — 21KB
• a20240630-2q24ex32.htm (EX-32) — 8KB
• 0000049826-24-000038.txt ( ) — 4762KB
• itw-20240630.xsd (EX-101.SCH) — 29KB
• itw-20240630_cal.xml (EX-101.CAL) — 59KB
• itw-20240630_def.xml (EX-101.DEF) — 115KB
• itw-20240630_lab.xml (EX-101.LAB) — 347KB
• itw-20240630_pre.xml (EX-101.PRE) — 235KB
• itw-20240630_htm.xml (XML) — 538KB

- 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 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4 .

Controls and Procedures

Controls and Procedures 35

- Other Information

PART II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A .

Risk Factors

Risk Factors 36 Item 2 . Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 6 . Exhibits 37

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements Illinois Tool Works Inc. and Subsidiaries Three Months Ended Six Months Ended June 30, June 30, In millions except per share amounts 2024 2023 2024 2023 Operating Revenue $ 4,027 $ 4,074 $ 8,000 $ 8,093 Cost of revenue 2,262 2,344 4,407 4,685 Selling, administrative, and research and development expenses 686 690 1,362 1,365 Amortization and impairment of intangible assets 25 30 50 61 Operating Income 1,054 1,010 2,181 1,982 Interest expense ( 75 ) ( 69 ) ( 146 ) ( 129 ) Other income (expense) 26 20 42 30 Income Before Taxes 1,005 961 2,077 1,883 Income Taxes 246 207 499 415 Net Income $ 759 $ 754 $ 1,578 $ 1,468 Net Income Per Share: Basic $ 2.55 $ 2.49 $ 5.29 $ 4.83 Diluted $ 2.54 $ 2.48 $ 5.27 $ 4.81 Shares of Common Stock Outstanding During the Period: Average 297.6 303.3 298.3 304.1 Average assuming dilution 298.5 304.2 299.3 305.2 The Notes to Financial Statements are an integral part of this statement. 3 Illinois Tool Works Inc. and Subsidiaries Three Months Ended Six Months Ended June 30, June 30, In millions 2024 2023 2024 2023 Net Income $ 759 $ 754 $ 1,578 $ 1,468 Foreign currency translation adjustments, net of tax ( 42 ) ( 16 ) ( 93 ) 21 Pension and other postretirement benefit adjustments, net of tax 1 — 2 — Other comprehensive income (loss) ( 41 ) ( 16 ) ( 91 ) 21 Comprehensive Income $ 718 $ 738 $ 1,487 $ 1,489 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 June 30, 2024 December 31, 2023 Assets Current Assets: Cash and equivalents $ 862 $ 1,065 Trade receivables 3,250 3,123 Inventories 1,819 1,707 Prepaid expenses and other current assets 325 340 Total current assets 6,256 6,235 Net plant and equipment 2,011 1,976 Goodwill 4,910 4,909

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 recorded the pre-tax cumulative effect of this change in accounting method of $ 117 m

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View this 10-Q filing on SEC EDGAR