Illinois Tool Works Files Q3 2024 10-Q

TL;DR

ITW filed its Q3 2024 10-Q. Financials are in.

AI Summary

Illinois Tool Works Inc. (ITW) filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the year. ITW's business address is 155 Harlem Avenue, Glenview, IL 60025, and their phone number is 847-724-7500. The company's fiscal year ends on December 31st.

Why It Matters

This filing provides investors with a detailed look at ITW's financial performance and position as of the end of the third quarter of 2024, crucial for understanding the company's operational health and future outlook.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks highlighted.

Key Numbers

• 20240930 — Period End Date (The filing covers financial data up to this date.)
• 20241030 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• ILLINOIS TOOL WORKS INC (company) — Filer
• 155 HARLEM AVENUE (location) — Business Address
• GLENVIEW (location) — City
• IL (location) — State
• 60025 (location) — ZIP Code
• 8477247500 (phone_number) — Business Phone
• 20240930 (date) — Period of Report

FAQ

Key Financial Figures

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

Filing Documents

• itw-20240930.htm (10-Q) — 1324KB
• a20240930-3q24ex31.htm (EX-31) — 21KB
• a20240930-3q24ex32.htm (EX-32) — 8KB
• 0000049826-24-000048.txt ( ) — 5069KB
• itw-20240930.xsd (EX-101.SCH) — 33KB
• itw-20240930_cal.xml (EX-101.CAL) — 62KB
• itw-20240930_def.xml (EX-101.DEF) — 143KB
• itw-20240930_lab.xml (EX-101.LAB) — 379KB
• itw-20240930_pre.xml (EX-101.PRE) — 265KB
• itw-20240930_htm.xml (XML) — 564KB

- 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 37 Item 4 .

Controls and Procedures

Controls and Procedures 37

- Other Information

PART II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A .

Risk Factors

Risk Factors 38 Item 2 . Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 6 . Exhibits 39

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements Illinois Tool Works Inc. and Subsidiaries Three Months Ended Nine Months Ended September 30, September 30, In millions except per share amounts 2024 2023 2024 2023 Operating Revenue $ 3,966 $ 4,031 $ 11,966 $ 12,124 Cost of revenue 2,230 2,319 6,637 7,004 Selling, administrative, and research and development expenses 658 615 2,020 1,980 Amortization and impairment of intangible assets 26 27 76 88 Operating Income 1,052 1,070 3,233 3,052 Interest expense ( 69 ) ( 67 ) ( 215 ) ( 196 ) Other income (expense) 379 10 421 40 Income Before Taxes 1,362 1,013 3,439 2,896 Income Taxes 202 241 701 656 Net Income $ 1,160 $ 772 $ 2,738 $ 2,240 Net Income Per Share: Basic $ 3.92 $ 2.55 $ 9.20 $ 7.38 Diluted $ 3.91 $ 2.55 $ 9.17 $ 7.36 Shares of Common Stock Outstanding During the Period: Average 296.1 301.9 297.6 303.4 Average assuming dilution 297.0 303.0 298.5 304.5 The Notes to Financial Statements are an integral part of this statement. 3 Illinois Tool Works Inc. and Subsidiaries Three Months Ended Nine Months Ended September 30, September 30, In millions 2024 2023 2024 2023 Net Income $ 1,160 $ 772 $ 2,738 $ 2,240 Foreign currency translation adjustments, net of tax 73 ( 82 ) ( 20 ) ( 61 ) Pension and other postretirement benefit adjustments, net of tax 3 — 5 — Other comprehensive income (loss) 76 ( 82 ) ( 15 ) ( 61 ) Comprehensive Income $ 1,236 $ 690 $ 2,723 $ 2,179 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 September 30, 2024 December 31, 2023 Assets Current Assets: Cash and equivalents $ 947 $ 1,065 Trade receivables 3,226 3,123 Inventories 1,817 1,707 Prepaid expenses and other current assets 314 340 Total current assets 6,304 6,235 Net plant and equi

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