Earnings Release
ITW Reports Fourth Quarter and Full Year Results
Fourth-Quarter Highlights
- Total revenue $3.6 billion; organic growth +1%; North America +4%
- Operating margin 24.0%, an increase of 70 bps
- GAAP EPS $1.83 vs. 2017 GAAP EPS of $(0.22); Excluding one-time 2017 tax charge of $658 million, EPS increased 8%, +10% excluding $(0.04) currency impact
Full-Year Highlights
- Total revenue $14.8 billion, an increase of 3%; organic growth +2%
- Operating margin 24.3%, an increase of 60 bps excluding 2017 legal settlement of $95 million
- After-tax ROIC 28.2%, an increase of 390 bps
- GAAP EPS $7.60, up 56% vs. 2017 GAAP EPS of $4.86; Excluding one-time 2017 tax charge and legal settlement, EPS increased 15%
GLENVIEW, Ill., Feb. 01, 2019 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its fourth-quarter and full-year 2018 results.
“The fourth quarter closed out another year of strong execution and financial performance by the ITW team. For the quarter, the company delivered 10 percent EPS growth excluding currency impact and the 2017 tax charge, operating margin expansion of 70 basis points and after-tax return on invested capital of 27.7 percent,” said E. Scott Santi, Chairman and Chief Executive Officer.
“For the year, excluding the 2017 one-time items, we grew EPS by 15 percent, expanded operating margin by 60 basis points to a record 24.3 percent, grew Free Cash Flow 10 percent and returned $3 billion cash to shareholders in the form of dividends and share repurchases. The fact that we achieved these results despite significant raw material cost headwinds and a decline in auto builds in North America, Europe and China clearly demonstrates the power of ITW’s highly differentiated business model and the resilience of our high quality diversified business portfolio.”
“We enter 2019 well-positioned to deliver another year of differentiated performance and continued progress in executing our long-term strategy to leverage the power of the ITW Business Model to its full potential,” Santi concluded.
Fourth-quarter revenue was essentially flat at $3.6 billion as organic growth of one percent was more than offset by the impact of foreign currency translation. Organic revenue growth increased four percent in North America, offset by a two percent decline in International. As expected, Product Line Simplification (PLS) activities reduced organic revenue growth by 90 basis points. Excluding a tax charge in the prior year, fourth quarter EPS increased eight percent to $1.83. Excluding the unfavorable foreign currency translation impact of $(0.04) and one-time 2017 tax charge, EPS grew 10 percent. Operating margin was 24.0 percent, an increase of 70 basis points, with enterprise initiatives contributing 110 basis points and more than offsetting 40 basis points of price/cost headwind. Fourth quarter Free Cash Flow increased 18 percent to $727 million.
Full year revenue grew three percent to $14.8 billion, with organic growth of two percent. As previously disclosed, the company recorded a favorable legal settlement of $95 million in 2017. Excluding this settlement and the 2017 fourth quarter tax charge, 2018 full-year EPS increased 15 percent to $7.60. Operating margin was 24.3 percent, an increase of 60 basis points excluding the 2017 legal settlement, with enterprise initiatives contributing 110 basis points of margin improvement, more than offsetting 50 basis points of price/cost headwind. After-tax return on invested capital was 28.2 percent, an improvement of 390 basis points.
2018 Free Cash Flow increased 10 percent to $2.4 billion. The company repurchased $2 billion of its own shares and raised its dividend 28 percent in August 2018 to an annualized $4.00 per share.
2019 Guidance
The company re-affirmed its full-year EPS guidance in a range of $7.90 to $8.20 per share. Organic growth is expected to be in the range of one to three percent based on current run rates. Operating margin is expected to improve by approximately 100 basis points with enterprise initiatives contributing 100 basis points. Free cash flow is expected to be at or above 100 percent of net income. The company expects to repurchase approximately $1.5 billion of its shares in 2019.
For the first quarter 2019, the company expects EPS of $1.73 to $1.83. This incorporates higher estimated restructuring expense of $0.07 per share, foreign currency translation headwind of $0.07 per share and a tax rate in the range of 24.5 to 25.5 percent, which represents a $0.05 per share headwind year-over-year.
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.
Forward-looking Statement
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding diluted earnings per share, foreign exchange rates, total and organic revenue growth, operating margin, economic and regulatory conditions in various geographic regions, price/cost impact, restructuring expenses, free cash flow, effective tax rate, after-tax return on invested capital, and timing and amount of share repurchases. These statements are subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated. Such factors include those contained in ITW's Form 10-K for 2017 and subsequently filed Form 10-Qs.
About Illinois Tool Works
ITW (NYSE: ITW) is a Fortune 200 global multi-industrial manufacturing leader with revenues totaling $14.8 billion in 2018. 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 has approximately 48,000 dedicated colleagues in operations around the world who thrive in the company’s unique, decentralized and entrepreneurial culture.
www.itw.com
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME (UNAUDITED)
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| In millions except per share amounts | 2018 | | 2017(1) | | 2018 | | 2017(1) |
| Operating Revenue | $ | 3,580 | | | $ | 3,629 | | | $ | 14,768 | | | $ | 14,314 | |
| Cost of revenue | 2,096 | | | 2,124 | | | 8,604 | | | 8,306 | |
| Selling, administrative, and research and development expenses | 578 | | | 609 | | | 2,391 | | | 2,412 | |
| Legal settlement (income) | — | | | — | | | — | | | (95 | ) |
| Amortization and impairment of intangible assets | 46 | | | 50 | | | 189 | | | 206 | |
| Operating Income | 860 | | | 846 | | | 3,584 | | | 3,485 | |
| Interest expense | (63 | ) | | (66 | ) | | (257 | ) | | (260 | ) |
| Other income (expense) | 19 | | | 16 | | | 67 | | | 45 | |
| Income Before Taxes | 816 | | | 796 | | | 3,394 | | | 3,270 | |
| Income taxes | 209 | | | 872 | | | 831 | | | 1,583 | |
| Net Income (Loss) | $ | 607 | | | $ | (76 | ) | | $ | 2,563 | | | $ | 1,687 | |
| | | | | | | | |
| Net Income (Loss) Per Share: | | | | | | | |
| Basic | $ | 1.84 | | | $ | (0.22 | ) | | $ | 7.65 | | | $ | 4.90 | |
| Diluted | $ | 1.83 | | | $ | (0.22 | ) | | $ | 7.60 | | | $ | 4.86 | |
| | | | | | | | |
| Cash Dividends Per Share: | | | | | | | |
| Paid | $ | 1.00 | | | $ | 0.78 | | | $ | 3.34 | | | $ | 2.73 | |
| Declared | $ | 1.00 | | | $ | 0.78 | | | $ | 3.56 | | | $ | 2.86 | |
| | | | | | | | |
| Shares of Common Stock Outstanding During the Period: | | | | | | | |
| Average | 329.8 | | 342.1 | | 335.0 | | 344.1 |
| Average assuming dilution | 331.6 | | 342.1 | | 337.1 | | 346.8 |
- The three and twelve months ended December 31, 2017 have been restated to reflect the adoption of new accounting guidance in 2018 which resulted in the presentation of $4 million and $9 million, respectively, of other net periodic benefit income in Other income (expense) rather than in Operating Income, with no change in Net Income.
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION (UNAUDITED)
| In millions | December 31, 2018 | | December 31, 2017 |
| Assets | | | |
| Current Assets: | | | |
| Cash and equivalents | $ | 1,504 | | | $ | 3,094 | |
| Trade receivables | 2,622 | | | 2,628 | |
| Inventories | 1,318 | | | 1,220 | |
| Prepaid expenses and other current assets | 334 | | | 336 | |
| Total current assets | 5,778 | | | 7,278 | |
| | | | |
| Net plant and equipment | 1,791 | | | 1,778 | |
| Goodwill | 4,633 | | | 4,752 | |
| Intangible assets | 1,084 | | | 1,272 | |
| Deferred income taxes | 554 | | | 505 | |
| Other assets | 1,030 | | | 1,195 | |
| | $ | 14,870 | | | $ | 16,780 | |
| | | | |
| Liabilities and Stockholders’ Equity | | | |
| Current Liabilities: | | | |
| Short-term debt | $ | 1,351 | | | $ | 850 | |
| Accounts payable | 524 | | | 590 | |
| Accrued expenses | 1,271 | | | 1,258 | |
| Cash dividends payable | 328 | | | 266 | |
| Income taxes payable | 68 | | | 89 | |
| Total current liabilities | 3,542 | | | 3,053 | |
| | | | |
| Noncurrent Liabilities: | | | |
| Long-term debt | 6,029 | | | 7,478 | |
| Deferred income taxes | 707 | | | 164 | |
| Noncurrent income taxes payable | 495 | | | 614 | |
| Other liabilities | 839 | | | 882 | |
| Total noncurrent liabilities | 8,070 | | | 9,138 | |
| | | | |
| Stockholders’ Equity: | | | |
| Common stock | 6 | | | 6 | |
| Additional paid-in-capital | 1,253 | | | 1,218 | |
| Retained earnings | 21,217 | | | 20,210 | |
| Common stock held in treasury | (17,545 | ) | | (15,562 | ) |
| Accumulated other comprehensive income (loss) | (1,677 | ) | | (1,287 | ) |
| Noncontrolling interest | 4 | | | 4 | |
| Total stockholders’ equity | 3,258 | | | 4,589 | |
| | $ | 14,870 | | | $ | 16,780 | |
| | | | | | | | |
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
| Three Months Ended December 31, 2018 |
| Dollars in millions | Total
Revenue | Operating
Income | Operating
Margin |
| Automotive OEM | $ | 777 | | $ | 168 | | 21.6% |
| Food Equipment | 567 | | 151 | | 26.6% |
| Test & Measurement and Electronics | 538 | | 133 | | 24.8% |
| Welding | 414 | | 111 | | 26.9% |
| Polymers & Fluids | 422 | | 91 | | 21.5% |
| Construction Products | 397 | | 99 | | 24.9% |
| Specialty Products | 469 | | 118 | | 25.4% |
| Intersegment | (4 | ) | — | | —% |
| Total Segments | 3,580 | | 871 | | 24.4% |
| Unallocated | — | | (11 | ) | —% |
| Total Company | $ | 3,580 | | $ | 860 | | 24.0% |
| Twelve Months Ended December 31, 2018 |
| Dollars in millions | Total
Revenue | Operating
Income | Operating
Margin |
| Automotive OEM | $ | 3,338 | | $ | 751 | | 22.5% |
| Food Equipment | 2,214 | | 572 | | 25.8% |
| Test & Measurement and Electronics | 2,171 | | 523 | | 24.1% |
| Welding | 1,691 | | 474 | | 28.0% |
| Polymers & Fluids | 1,724 | | 369 | | 21.4% |
| Construction Products | 1,700 | | 414 | | 24.3% |
| Specialty Products | 1,951 | | 522 | | 26.8% |
| Intersegment | (21 | ) | — | | — |
| Total Segments | 14,768 | | 3,625 | | 24.5% |
| Unallocated | — | | (41 | ) | — |
| Total Company | $ | 14,768 | | $ | 3,584 | | 24.3% |
| | | | | | | | |
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
| Q4 2018 vs. Q4 2017 Favorable/(Unfavorable) |
| Operating Revenue | Automotive
OEM | Food
Equipment | Test &
Measurement
and Electronics | Welding | Polymers &
Fluids | Construction
Products | Specialty
Products | Total
ITW |
| Organic | (3.6 | )% | 5.2 | % | 0.2 | % | 7.6 | % | 3.5 | % | (0.7 | )% | (2.0 | )% | 0.9 | % |
| Acquisitions/ Divestitures | — | % | — | % | — | % | — | % | (1.0 | )% | — | % | — | % | (0.1 | )% |
| Translation | (2.5 | )% | (1.7 | )% | (1.5 | )% | (0.9 | )% | (3.4 | )% | (3.1 | )% | (1.6 | )% | (2.2 | )% |
| Operating Revenue | (6.1 | )% | 3.5 | % | (1.3 | )% | 6.7 | % | (0.9 | )% | (3.8 | )% | (3.6 | )% | (1.4 | )% |
| Q4 2018 vs. Q4 2017 Favorable/(Unfavorable) |
Change in
Operating Margin | Automotive
OEM | Food
Equipment | Test &
Measurement
and Electronics | Welding | Polymers &
Fluids | Construction
Products | Specialty
Products | Total
ITW |
| Operating Leverage | (70) bps | 110 bps | — | 130 bps | 80 bps | (20) bps | (30) bps | 20 bps |
| Changes in Variable Margin & OH Costs | (90) bps | (50) bps | 110 bps | (130) bps | 20 bps | 100 bps | (20) bps | 30 bps |
| Total Organic | (160) bps | 60 bps | 110 bps | — | 100 bps | 80 bps | (50) bps | 50 bps |
| Acquisitions/ Divestitures | — | — | — | — | 10 bps | — | — | — |
| Restructuring/Other | 10 bps | 20 bps | 30 bps | 50 bps | 50 bps | 70 bps | — | 20 bps |
| Total Operating Margin Change | (150) bps | 80 bps | 140 bps | 50 bps | 160 bps | 150 bps | (50) bps | 70 bps |
| | | | | | | | | |
| Total Operating Margin % * | 21.6% | 26.6% | 24.8% | 26.9% | 21.5% | 24.9% | 25.4% | 24.0% |
| | | | | | | | | |
| * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets | 50 bps | 70 bps | 270 bps | 30 bps | 380 bps | 50 bps | 100 bps | 140 bps ** |
| ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.10) on GAAP earnings per share for the fourth quarter of 2018. |
| |
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
| Full Year 2018 vs Full Year 2017 Favorable/(Unfavorable) |
| Operating Revenue | Automotive
OEM | Food
Equipment | Test &
Measurement
and Electronics | Welding | Polymers &
Fluids | Construction
Products | Specialty
Products | Total
ITW |
| Organic | — | % | 2.8 | % | 3.5 | % | 9.7 | % | 1.0 | % | 1.2 | % | (0.4 | )% | 2.2 | % |
| Acquisitions/ Divestitures | — | % | — | % | — | % | — | % | (0.4 | )% | — | % | (0.1 | )% | (0.1 | )% |
| Translation | 2.0 | % | 1.5 | % | 1.4 | % | 0.2 | % | (0.6 | )% | 0.4 | % | 1.2 | % | 1.1 | % |
| Operating Revenue | 2.0 | % | 4.3 | % | 4.9 | % | 9.9 | % | — | % | 1.6 | % | 0.7 | % | 3.2 | % |
| Full Year 2018 vs Full Year 2017 Favorable/(Unfavorable) |
| Change in Operating Margin | Automotive OEM | Food
Equipment | Test &
Measurement
and Electronics | Welding | Polymers &
Fluids | Construction
Products | Specialty
Products | Total
ITW |
| Operating Leverage | 10 bps | 60 bps | 90 bps | 150 bps | 30 bps | 20 bps | — | 50 bps |
| Changes in Variable Margin & OH Costs | (50) bps | (110) bps | 80 bps | (70) bps | (10) bps | 20 bps | (60) bps | (70) bps (1) |
| Total Organic | (40) bps | (50) bps | 170 bps | 80 bps | 20 bps | 40 bps | (60) bps | (20) bps |
| Acquisitions/ Divestitures | — | — | — | — | — | — | — | — |
| Restructuring/Other | 10 bps | 10 bps | — | 20 bps | 50 bps | — | 20 bps | 20 bps |
| Total Operating Margin Change | (30) bps | (40) bps | 170 bps | 100 bps | 70 bps | 40 bps | (40) bps | — |
| | | | | | | | | |
| Total Operating Margin % * | 22.5% | 25.8% | 24.1% | 28.0% | 21.4% | 24.3% | 26.8% | 24.3% |
| | | | | | | | | |
| * Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets | 50 bps | 70 bps | 280 bps | 30 bps | 380 bps | 50 bps | 110 bps | 130 bps** |
| ** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.42) on GAAP earnings per share for 2018. |
| (1) Full year 2017 included 60 basis points of favorability from the confidential legal settlement. |
| |
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)
ADJUSTED AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| Dollars in millions | 2018 | | 2017 | | 2018 | | 2017 |
| Operating income(1) | $ | 860 | | | $ | 846 | | | $ | 3,584 | | | $ | 3,485 | |
| Less: Legal settlement income | — | | | — | | | — | | | (95 | ) |
| Adjusted operating income | 860 | | | 846 | | | 3,584 | | | 3,390 | |
| Adjusted tax rate | 25.5 | % | | 26.9 | % | | 24.9 | % | | 28.3 | % |
| Income taxes | (219 | ) | | (227 | ) | | (893 | ) | | (958 | ) |
| Operating income after taxes | $ | 641 | | | $ | 619 | | | $ | 2,691 | | | $ | 2,432 | |
| | | | | | | | |
| Invested capital: | | | | | | | |
| Trade receivables | $ | 2,622 | | | $ | 2,628 | | | $ | 2,622 | | | $ | 2,628 | |
| Inventories | 1,318 | | | 1,220 | | | 1,318 | | | 1,220 | |
| Net plant and equipment | 1,791 | | | 1,778 | | | 1,791 | | | 1,778 | |
| Goodwill and intangible assets | 5,717 | | | 6,024 | | | 5,717 | | | 6,024 | |
| Accounts payable and accrued expenses | (1,795 | ) | | (1,848 | ) | | (1,795 | ) | | (1,848 | ) |
| Other, net | (519 | ) | | 21 | | | (519 | ) | | 21 | |
| Total invested capital | $ | 9,134 | | | $ | 9,823 | | | $ | 9,134 | | | $ | 9,823 | |
| | | | | | | | |
| Average invested capital | $ | 9,247 | | | $ | 10,101 | | | $ | 9,533 | | | $ | 10,005 | |
| Return on average invested capital | 27.7 | % | | 24.5 | % | | 28.2 | % | | 24.3 | % |
- The 2017 results have been restated to reflect the adoption of new accounting guidance in 2018 related to the presentation of net periodic benefit costs. The adoption of this guidance resulted in the presentation of $4 million and $9 million of other net periodic benefit income in Other income (expense) rather than in Operating Income for the fourth quarter 2017 and full year 2017, respectively, with no change in Net Income.
ROIC for the three months ended December 31, 2018 was 27.7%, an improvement of 320 basis points. ROIC for the twelve months ended December 31, 2018 was 28.2%, an improvement of 390 basis points. The improvement in both periods was primarily the result of the new U.S. tax rules and regulations.
A reconciliation of the 2018 effective tax rate to the adjusted tax rate excluding the third quarter 2018 net discrete tax benefit is as follows:
| | Twelve Months Ended |
| | December 31, 2018 |
| | Income Taxes | | Tax Rate |
| As reported | $ | 831 | | | 24.5 | % |
| Net discrete tax benefit related to third quarter | 15 | | | 0.4 | % |
| As adjusted | $ | 846 | | | 24.9 | % |
| | | | | | | |
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)
A reconciliation of the 2017 effective tax rate to the adjusted tax rate excluding the discrete tax charge related to the 2017 U.S. tax legislation is as follows:
| | Three Months Ended | | Twelve Months Ended |
| | December 31, 2017 | | December 31, 2017 |
| | Income Taxes | | Tax Rate | | Income Taxes | | Tax Rate |
| As reported | $ | 872 | | | 109.6 | % | | $ | 1,583 | | | 48.4 | % |
| Discrete tax charge related to 2017 U.S. tax legislation | (658 | ) | | (82.7 | )% | | (658 | ) | | (20.1 | )% |
| As adjusted | $ | 214 | | | 26.9 | % | | $ | 925 | | | 28.3 | % |
| | | | | | | | | | | | | | |
FREE CASH FLOW (UNAUDITED)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| Dollars in millions | 2018 | | 2017 | | 2018 | | 2017 | |
| Net cash provided by operating activities | $ | 809 | | | $ | 695 | | | $ | 2,811 | | | $ | 2,402 | | |
| Less: Additions to plant and equipment | (82 | ) | | (78 | ) | | (364 | ) | | (297 | ) | |
| Free cash flow | $ | 727 | | | $ | 617 | | | $ | 2,447 | | | $ | 2,105 | | * |
| | | | | | | | | |
| Net income (loss), as reported | $ | 607 | | | $ | (76 | ) | | $ | 2,563 | | | $ | 1,687 | | |
| Discrete tax charge related to 2017 U.S. tax legislation | — | | | 658 | | | — | | | 658 | | |
| Adjusted net income | $ | 607 | | | $ | 582 | | | $ | 2,563 | | | $ | 2,345 | | |
* Excluding $115 million related to an additional discretionary pension contribution, free cash flow would have been $2.2 billion for the twelve months ended December 31, 2017.
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)
IMPACT OF THE "TAX CUTS AND JOBS ACT" AND LEGAL SETTLEMENT
Following the passing of the “Tax Cuts and Jobs Act” in the U.S., ITW recorded a one-time tax charge of $658 million in the fourth quarter of 2017. Additionally, as previously disclosed, ITW entered into a confidential legal settlement, resulting in a favorable one-time benefit of $95 million in 2017. The following schedules illustrate the impact of these items on the Company’s fourth quarter and full year 2017 financial results:
Fourth Quarter
| | Dollars in millions | Q4 '17
As Reported(1) | Tax
Charge | Q4 '17
Excl. Item | Q4 '18
As Reported | Change Vs.
Prior Year |
| | Total Revenue | $3,629 | — | $3,629 | $3,580 | (1)% |
| | Operating Income | $846 | — | $846 | $860 | +2% |
| | Operating Margin | 23.3% | — | 23.3% | 24.0% | +70 bps |
| | Tax Rate | 109.6% | +82.7%-pts | 26.9% | 25.5% | (1.4)%-pts |
| | Net Income (Loss) | $(76) | $(658) | $582 | $607 | +4% |
| | EPS | $(0.22) | $(1.92) | $1.70 | $1.83 | +8% |
Full Year
| Dollars in millions | 2017
As Reported(1) | Legal
Item | Tax
Charge | 2017
Excl. Items | 2018
As Reported | Change Vs.
Prior Year |
| Total Revenue | $14,314 | — | — | $14,314 | $14,768 | +3% |
| Operating Income | $3,485 | +$95 | — | $3,390 | $3,584 | +6% |
| Operating Margin | 24.3% | +60 bps | — | 23.7% | 24.3% | +60 bps |
| Tax Rate | 48.4% | — | +20.1%-pts | 28.3% | 24.5% | (3.8)%-pts |
| Net Income (Loss) | $1,687 | +$59 | $(658) | $2,286 | $2,563 | +12% |
| EPS | $4.86 | +$0.17 | $(1.90) | $6.59 | $7.60 | +15% |
- The 2017 results have been restated to reflect the adoption of new accounting guidance in 2018 related to the presentation of net periodic benefit costs. The adoption of this guidance resulted in the presentation of $4 million and $9 million of other net periodic benefit income in Other income (expense) rather than in Operating Income for the fourth quarter 2017 and full year 2017, respectively, with no change in Net Income.
Media Contact
Illinois Tool Works
Trisha Knych
Tel: 224.661.7566
mediarelations@itw.com
Investor Relations
Illinois Tool Works
Karen Fletcher
Tel: 224.661.7433
investorrelations@itw.com
Source: Illinois Tool Works Inc.
