0000049826false00000498262024-10-302024-10-300000049826exch:XNYSus-gaap:CommonStockMember2024-10-302024-10-300000049826exch:XNYSitw:A0.250EuroNotesdue2024Member2024-10-302024-10-300000049826exch:XNYSitw:A0.625EuroNotesdue2027Member2024-10-302024-10-300000049826exch:XNYSitw:A3.250EuroNotesDue2028Member2024-10-302024-10-300000049826exch:XNYSitw:A2.125EuroNotesdue2030Member2024-10-302024-10-300000049826exch:XNYSitw:A1.00EuroNotesdue2031Member2024-10-302024-10-300000049826exch:XNYSitw:A3.375EuroNotesDue2032Member2024-10-302024-10-300000049826exch:XNYSitw:A3.00EuroNotesdue2034Member2024-10-302024-10-30


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 30, 2024
_________________________

ILLINOIS TOOL WORKS INC.
(Exact name of registrant as specified in its charter)
Delaware1-479736-1258310
(State or other jurisdiction of incorporation)(Commission File No.)(I.R.S. Employer Identification No.)
155 Harlem AvenueGlenviewIL60025
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: 847-724-7500

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockITWNew York Stock Exchange
0.250% Euro Notes due 2024ITW24ANew York Stock Exchange
0.625% Euro Notes due 2027ITW27New York Stock Exchange
3.250% Euro Notes due 2028ITW28New York Stock Exchange
2.125% Euro Notes due 2030ITW30New York Stock Exchange
1.00% Euro Notes due 2031ITW31New York Stock Exchange
3.375% Euro Notes due 2032ITW32New York Stock Exchange
3.00% Euro Notes due 2034ITW34New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02    Results of Operations and Financial Condition

On October 30, 2024, Illinois Tool Works Inc. (the "Company") announced its 2024 third quarter results of operations in the press release furnished as Exhibit 99.1.

Non-GAAP Financial Measures

The Company uses free cash flow to measure cash flow generated by operations that is available for dividends, share repurchases, acquisitions and debt repayment. The Company believes this non-GAAP financial measure, along with free cash flow to net income conversion rate, are useful to investors in evaluating the Company's financial performance and measures the Company's ability to generate cash internally to fund Company initiatives. Free cash flow represents net cash provided by operating activities less additions to plant and equipment. Free cash flow is a measurement that is not the same as net cash flow from operating activities per the statement of cash flows and may not be consistent with similarly titled measures used by other companies. A reconciliation of free cash flow to net cash provided by operating activities is included in the press release furnished as Exhibit 99.1.

The Company uses after-tax return on average invested capital ("After-tax ROIC") to measure the effectiveness of its operations' use of invested capital to generate profits. After-tax ROIC is not defined under U.S. generally accepted accounting principles ("GAAP"). After-tax ROIC is a non-GAAP financial measure that the Company believes is a meaningful metric to investors in evaluating the Company's ability to generate returns from cash invested in its operations and may be different than the method used by other companies to calculate After-tax ROIC. The Company defines After-tax ROIC as operating income after taxes divided by average invested capital, which is annualized when presented in interim periods. Operating income after taxes is a non-GAAP measure consisting of net income before interest expense and other income (expense), on an after-tax basis, which are excluded as they do not represent returns generated by the Company's operations. For comparability, the Company also excluded the net discrete tax benefit of $121 million in the third quarter of 2024 from net income and the effective tax rate for the three and nine months ended September 30, 2024. Additionally, for comparability, the Company also excluded the discrete tax benefit of $20 million in the second quarter of 2023 from net income and the effective tax rate for the nine months ended September 30, 2023. Total invested capital represents the net assets of the Company, other than cash and equivalents and outstanding debt which do not represent capital investment in the Company's operations. The most comparable GAAP measure to operating income after taxes is net income. Calculations of net income to average invested capital and After-tax ROIC are included in the press release furnished as Exhibit 99.1.

The Company presented diluted net income per share for the three months ended September 30, 2024 excluding the impact of the sale of the Company's noncontrolling interest in Wilsonart International Holdings LLC. The Company believes this non-GAAP measure enhances investors' understanding of the Company's underlying financial performance and improves comparability with other periods. A reconciliation of this non-GAAP measure to diluted net income per share is included in the press release furnished as Exhibit 99.1.


Item 9.01    Financial Statements and Exhibits
(d)Exhibits
Exhibit NumberExhibit Description
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURES


Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ILLINOIS TOOL WORKS INC.
Dated: October 30, 2024
By: /s/ Michael M. Larsen
Michael M. Larsen
Senior Vice President & Chief Financial Officer



Exhibit 99.1

ITW Reports Third Quarter 2024 Results

•Revenue of $4.0 billion, a decrease of 2% as organic growth declined 1%
•Operating margin of 26.5% as enterprise initiatives contributed 130 basis points
•GAAP EPS of $3.91 included a divestiture gain of $1.26; ex-gain EPS of $2.65, an increase of 4%
•Raising full year GAAP EPS guidance by $1.33 to a range of $11.63 to $11.73 per share

GLENVIEW, IL., October 30, 2024 - Illinois Tool Works Inc. (NYSE: ITW) today reported its third quarter 2024 results.
“ITW delivered solid third quarter results, as our worldwide team continued to successfully navigate and overcome market challenges with strong operational execution as evidenced by operating margin of 26.5 percent, including 130 basis points contribution from enterprise initiatives, and EPS growth to $2.65 per share excluding a divesture gain,” said Christopher A. O’Herlihy, President and Chief Executive Officer. “All year, our focused execution and operational excellence have enabled the Company to effectively counter persistent market headwinds and achieve solid growth in margin and profitability while we continued to manage and invest in ITW to maximize growth and performance over the long term.”

“As we look ahead to the balance of the year and beyond, ITW remains well-positioned to continue to execute at a high level through these near-term end market macro challenges while we remain focused on driving continued progress on our long-term strategy to build above-market organic growth, fueled by customer-back innovation, into a core ITW strength,” O’Herlihy concluded.

Third Quarter 2024 Results
Third quarter revenue of $4.0 billion declined by 1.6 percent as organic growth declined by 1.4 percent. Foreign currency translation impact reduced revenue by 0.4 percent and acquisitions increased revenue by 0.2 percent.

GAAP EPS increased 53 percent to $3.91 per share and included a divestiture gain of $1.26 from the previously announced sale of the Company’s equity interest in Wilsonart International Holdings LLC (“Wilsonart”). Excluding this gain, EPS of $2.65 increased four percent.

Operating income was $1.05 billion and operating margin of 26.5 percent was flat with prior year. Enterprise initiatives contributed 130 basis points and six of seven segments expanded operating margin. Sequentially, operating margin improved 30 basis points from the second quarter of 2024.

Operating cash flow was $891 million, and free cash flow was $783 million, with a conversion rate to adjusted net income of 102 percent. During the quarter, the company repurchased $375 million of its own shares and raised its dividend seven percent to an annualized $6.00 per share. The effective tax rate for the third quarter was 14.9 percent.

Wilsonart Divestiture
On August 5, 2024, the company announced the sale of its noncontrolling equity interest in Wilsonart. Proceeds from the transaction, net of transaction costs, were $395 million, resulting in a pre-tax gain of $363 million. Income taxes on the gain were more than offset by a discrete tax benefit of $107 million related to the utilization of capital loss carryforwards which resulted in a favorable GAAP EPS impact of $1.26. The sale is not expected to have a material impact on the Company’s financial results in future quarters.

2024 Guidance
ITW is incorporating the impact of the divestiture gain and a lower projected effective tax rate for the full year of approximately 21.5 percent into its 2024 guidance and raising GAAP EPS by $1.33 from the previous range of $10.30 to $10.40 to a new range of $11.63 to $11.73 per share. Based on current levels of demand and foreign currency exchange rates, the Company is maintaining its previous guidance for revenue and organic growth to be approximately flat for 2024. Operating margin is projected to be in the range of 26.5 to 27 percent, an improvement of 165 basis points at the midpoint, with enterprise initiatives projected to contribute more than 100 basis points. Free cash flow is projected to be approximately 100 percent of adjusted net income and the company plans to repurchase approximately $1.5 billion of its own shares.

Non-GAAP Measures
This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the


most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results.

Forward-looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding global supply chain challenges, expected impact of inflation including raw material inflation and rising interest rates, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted income per share, expected dividend payments, after-tax return on invested capital, effective tax rates, exchange rates, expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or potential acquisitions and/or divestitures, and the Company’s 2024 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the Company’s expectations include those that are detailed in ITW’s Form 10-K for 2023 and subsequent reports filed with the SEC.

About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $16.1 billion in 2023. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 45,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME (UNAUDITED)

Three Months EndedNine Months Ended
September 30,September 30,
In millions except per share amounts2024202320242023
Operating Revenue$3,966 $4,031 $11,966 $12,124 
Cost of revenue2,230 2,319 6,637 7,004 
Selling, administrative, and research and development expenses658 615 2,020 1,980 
Amortization and impairment of intangible assets26 27 76 88 
Operating Income1,052 1,070 3,233 3,052 
Interest expense(69)(67)(215)(196)
Other income (expense)379 10 421 40 
Income Before Taxes1,362 1,013 3,439 2,896 
Income Taxes202 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 
Cash Dividends Per Share:
Paid
$1.40 $1.31 $4.20 $3.93 
Declared
$1.50 $1.40 $4.30 $4.02 
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 



ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION (UNAUDITED)

In millionsSeptember 30, 2024December 31, 2023
Assets  
Current Assets:  
Cash and equivalents$947 $1,065 
Trade receivables3,226 3,123 
Inventories1,817 1,707 
Prepaid expenses and other current assets314 340 
Total current assets6,304 6,235 
Net plant and equipment2,071 1,976 
Goodwill4,980 4,909 
Intangible assets617 657 
Deferred income taxes468 479 
Other assets1,384 1,262 
 $15,824 $15,518 
Liabilities and Stockholders' Equity  
Current Liabilities:  
Short-term debt$1,768 $1,825 
Accounts payable556 581 
Accrued expenses1,655 1,663 
Cash dividends payable443 419 
Income taxes payable205 187 
Total current liabilities4,627 4,675 
Noncurrent Liabilities:  
Long-term debt6,578 6,339 
Deferred income taxes129 326 
Noncurrent income taxes payable— 151 
Other liabilities1,098 1,014 
Total noncurrent liabilities7,805 7,830 
Stockholders' Equity:  
Common stock6 6 
Additional paid-in-capital1,651 1,588 
Retained earnings28,583 27,122 
Common stock held in treasury(25,000)(23,870)
Accumulated other comprehensive income (loss)(1,849)(1,834)
Noncontrolling interest1 1 
Total stockholders' equity3,392 3,013 
$15,824 $15,518 



ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Three Months Ended September 30, 2024
Dollars in millionsTotal RevenueOperating IncomeOperating Margin
Automotive OEM$772 $150 19.4 %
Food Equipment677 193 28.4 %
Test & Measurement and Electronics697 179 25.7 %
Welding462 149 32.3 %
Polymers & Fluids448 125 27.9 %
Construction Products479 145 30.2 %
Specialty Products438 136 31.1 %
Intersegment(7)— — %
Total Segments3,966 1,077 27.1 %
Unallocated— (25)— %
Total Company$3,966 $1,052 26.5 %
Nine Months Ended September 30, 2024
Dollars in millionsTotal RevenueOperating IncomeOperating Margin
Automotive OEM$2,403 $469 19.5 %
Food Equipment1,975 537 27.2 %
Test & Measurement and Electronics2,071 501 24.2 %
Welding1,404 458 32.6 %
Polymers & Fluids1,334 364 27.3 %
Construction Products1,471 436 29.6 %
Specialty Products1,327 410 30.9 %
Intersegment(19)— — %
Total Segments11,966 3,175 26.5 %
Unallocated— 58 — %
Total Company$11,966 $3,233 27.0 %


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)

Q3 2024 vs. Q3 2023 Favorable/(Unfavorable)
Operating RevenueAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Organic(3.0)%(0.3)%(1.5)%(1.0)%1.3 %(8.8)%6.0 %(1.4)%
Acquisitions/
Divestitures		— %— %1.0 %— %— %— %— %0.2 %
Translation(0.3)%0.1 %0.3 %(0.3)%(3.2)%0.7 %(0.3)%(0.4)%
Operating Revenue(3.3)%(0.2)%(0.2)%(1.3)%(1.9)%(8.1)%5.7 %(1.6)%
Q3 2024 vs. Q3 2023 Favorable/(Unfavorable)
Change in Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Operating Leverage(60) bps(10) bps(40) bps(20) bps20 bps(170) bps100 bps(20) bps
Changes in Variable Margin & OH Costs80 bps150 bps270 bps90 bps10 bps250 bps270 bps40 bps
Total Organic20 bps140 bps230 bps70 bps30 bps80 bps370 bps20 bps
Acquisitions/
Divestitures		——(50) bps————(10) bps
Restructuring/Other 30 bps  (30) bps  10 bps — (50) bps  (50) bps  (40) bps  (10) bps
Total Operating Margin Change50 bps110 bps190 bps70 bps(20) bps30 bps330 bps—
Total Operating Margin % *19.4%28.4%25.7%32.3%27.9%30.2%31.1%26.5%
* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 30 bps  50 bps  170 bps  - bps  150 bps  10 bps  20 bps  70 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.06) on GAAP earnings per share for the third quarter of 2024.



ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
YTD 2024 vs. YTD 2023 Favorable/(Unfavorable)
Operating RevenueAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Organic0.3 %0.3 %(2.0)%(3.1)%1.0 %(6.5)%6.0 %(0.7)%
Acquisitions/
Divestitures		— %— %0.9 %— %— %— %(0.7)%0.1 %
Translation(1.0)%0.1 %(0.3)%(0.1)%(3.2)%(0.1)%— %(0.7)%
Operating Revenue(0.7)%0.4 %(1.4)%(3.2)%(2.2)%(6.6)%5.3 %(1.3)%
YTD 2024 vs. YTD 2023 Favorable/(Unfavorable)
Change in Operating MarginAutomotive OEMFood EquipmentTest & Measurement and ElectronicsWeldingPolymers & FluidsConstruction ProductsSpecialty ProductsTotal ITW
Operating Leverage—10 bps(50) bps(50) bps20 bps(130) bps120 bps(20) bps
Changes in Variable Margin & OH Costs190 bps—140 bps50 bps90 bps240 bps290 bps210 bps
Total Organic190 bps10 bps90 bps—110 bps110 bps410 bps190 bps
Acquisitions/
Divestitures		——(50) bps———20 bps(10) bps
Restructuring/Other 30 bps  (10) bps — 10 bps — (40) bps  20 bps —
Total Operating Margin Change220 bps—40 bps10 bps110 bps70 bps450 bps180 bps
Total Operating Margin % *19.5%27.2%24.2%32.6%27.3%29.6%30.9%27.0%
* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets 30 bps  40 bps  180 bps  10 bps  150 bps  20 bps  20 bps  70 bps **
** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.19) on GAAP earnings per share for the first nine months of 2024.


ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)

AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)
Three Months EndedNine Months Ended
September 30,September 30,
Dollars in millions2024202320242023
Numerator:
Net Income$1,160 $772 $2,738 $2,240 
Net discrete tax benefit related to the third quarter 2024(121)— (121)— 
Discrete tax benefit related to the second quarter 2023— — — (20)
Interest expense, net of tax (1)
53 51 164 150 
Other (income) expense, net of tax (1)
(288)(8)(320)(31)
Operating income after taxes$804 $815 $2,461 $2,339 
Denominator:
Invested capital:
Cash and equivalents$947 $990 $947 $990 
Trade receivables3,226 3,163 3,226 3,163 
Inventories1,817 1,799 1,817 1,799 
Net plant and equipment2,071 1,904 2,071 1,904 
Goodwill and intangible assets5,597 5,510 5,597 5,510 
Accounts payable and accrued expenses(2,211)(2,168)(2,211)(2,168)
Debt(8,346)(8,066)(8,346)(8,066)
Other, net291 (128)291 (128)
Total net assets (stockholders' equity)3,392 3,004 3,392 3,004 
Cash and equivalents(947)(990)(947)(990)
Debt8,346 8,066 8,346 8,066 
Total invested capital$10,791 $10,080 $10,791 $10,080 
Average invested capital (2)
$10,682 $10,237 $10,466 $10,239 
Net income to average invested capital (3)
43.4 %30.1 %34.9 %29.2 %
After-tax return on average invested capital (3)
30.0 %31.9 %31.3 %30.5 %

(1)    Effective tax rate used for interest expense and other (income) expense for the three months ended September 30, 2024 and 2023 was 23.7% and 23.8%, respectively. Effective tax rate used for interest expense and other (income) expense for the nine months ended September 30, 2024 and 2023 was 23.9% and 23.4%, respectively.

(2)    Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.

(3) Returns for the three months ended September 30, 2024 and 2023 were converted to an annual rate by multiplying the calculated return by 4. Returns for the nine months ended September 30, 2024 and 2023 were converted to an annual rate by dividing the calculated return by 3 and multiplying it by 4.

After-tax ROIC for the nine months ended September 30, 2024 included 110 basis points of favorable impact related to the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax) in the first quarter of 2024.







A reconciliation of the tax rate for the three and nine month periods ended September 30, 2024, excluding the third quarter 2024 net discrete tax benefit of $121 million, which included favorable discrete tax benefits of $107 million related to the utilization of capital loss carryforwards upon the sale of Wilsonart International Holdings LLC ("Wilsonart") and $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, is as follows:

Three Months EndedNine Months Ended
September 30, 2024September 30, 2024
Dollars in millionsIncome TaxesTax RateIncome TaxesTax Rate
As reported$202 14.9 %$701 20.4 %
Net discrete tax benefit related to the third quarter 2024121 8.8 %121 3.5 %
As adjusted$323 23.7 %$822 23.9 %


A reconciliation of the tax rate for the nine months ended September 30, 2023, excluding the second quarter 2023 discrete tax benefit of $20 million related to amended 2021 U.S. taxes, is as follows:

Nine Months Ended
September 30, 2023
Dollars in millionsIncome TaxesTax Rate
As reported$656 22.7 %
Discrete tax benefit related to the second quarter 202320 0.7 %
As adjusted$676 23.4 %





AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)

Twelve Months Ended
Dollars in millionsDecember 31, 2023
Numerator:
Net income$2,957 
Discrete tax benefit related to the second quarter 2023(20)
Interest expense, net of tax (1)
204 
Other (income) expense, net of tax (1)
(38)
Operating income after taxes$3,103 
Denominator:
Invested capital:
Cash and equivalents$1,065 
Trade receivables3,123 
Inventories1,707 
Net plant and equipment1,976 
Goodwill and intangible assets5,566 
Accounts payable and accrued expenses(2,244)
Debt(8,164)
Other, net(16)
Total net assets (stockholders' equity)3,013 
Cash and equivalents(1,065)
Debt8,164 
Total invested capital$10,112 
Average invested capital (2)
$10,214 
Net income to average invested capital29.0 %
After-tax return on average invested capital30.4 %

(1)    Effective tax rate used for interest expense and other (income) expense for the year ended December 31, 2023 was 23.2%.

(2)    Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within the period presented.

A reconciliation of the 2023 effective tax rate excluding the second quarter 2023 discrete tax benefit of $20 million related to amended 2021 U.S. taxes, is as follows:

Twelve Months Ended
December 31, 2023
Dollars in millionsIncome TaxesTax Rate
As reported$866 22.6 %
Discrete tax benefit related to the second quarter 202320 0.6 %
As adjusted$886 23.2 %




FREE CASH FLOW (UNAUDITED)

Three Months EndedNine Months Ended
September 30,September 30,
Dollars in millions2024202320242023
Net cash provided by operating activities$891 $982 $2,167 $2,500 
Less: Additions to plant and equipment(108)(126)(319)(324)
Free cash flow$783 $856 $1,848 $2,176 
Net income$1,160 $772 $2,738 $2,240 
Net cash provided by operating activities to net income conversion rate77 %127 %79 %112 %
Free cash flow to net income conversion rate68 %(1)111 %67 %97 %

(1)    Excluding the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes, and a discrete tax benefit of $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, the free cash flow to net income conversion rate would have been 102% for the three months ended September 30, 2024.



ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED)
Three Months Ended
September 30, 2024
As reported$3.91 
Impact of sale of noncontrolling interest in Wilsonart (1)
(1.26)
As adjusted$2.65 

(1)    Includes the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes.


v3.24.3
Document and Entity Information Document
Oct. 30, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 30, 2024
Entity Registrant Name ILLINOIS TOOL WORKS INC.
Entity Incorporation, State or Country Code DE
Entity File Number 1-4797
Entity Tax Identification Number 36-1258310
Entity Address, Address Line One 155 Harlem Avenue
Entity Address, City or Town Glenview
Entity Address, State or Province IL
Entity Address, Postal Zip Code 60025
City Area Code 847
Local Phone Number 724-7500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000049826
Amendment Flag false
NEW YORK STOCK EXCHANGE, INC. | Common Stock  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock
Trading Symbol ITW
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.250% Euro Notes due 2024  
Entity Information [Line Items]  
Title of 12(b) Security 0.250% Euro Notes due 2024
Trading Symbol ITW24A
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 0.625% Euro Notes due 2027  
Entity Information [Line Items]  
Title of 12(b) Security 0.625% Euro Notes due 2027
Trading Symbol ITW27
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 3.250% Euro Notes due 2028  
Entity Information [Line Items]  
Title of 12(b) Security 3.250% Euro Notes due 2028
Trading Symbol ITW28
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 2.125% Euro Notes due 2030  
Entity Information [Line Items]  
Title of 12(b) Security 2.125% Euro Notes due 2030
Trading Symbol ITW30
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 1.00% Euro Notes due 2031  
Entity Information [Line Items]  
Title of 12(b) Security 1.00% Euro Notes due 2031
Trading Symbol ITW31
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 3.375% Euro Notes due 2032  
Entity Information [Line Items]  
Title of 12(b) Security 3.375% Euro Notes due 2032
Trading Symbol ITW32
Security Exchange Name NYSE
NEW YORK STOCK EXCHANGE, INC. | 3.00% Euro Notes due 2034  
Entity Information [Line Items]  
Title of 12(b) Security 3.00% Euro Notes due 2034
Trading Symbol ITW34
Security Exchange Name NYSE
Illinois Tool Works (NYSE:ITW)
Historical Stock Chart
Von Nov 2024 bis Dez 2024 Click Here for more Illinois Tool Works Charts.
Illinois Tool Works (NYSE:ITW)
Historical Stock Chart
Von Dez 2023 bis Dez 2024 Click Here for more Illinois Tool Works Charts.