ILLINOIS TOOL WORKS INC. (NYSE:ITW) Files An 8-K Results of Operations and Financial ConditionItem 2.02Results of Operations and Financial Condition
On July24, 2017, Illinois Tool Works Inc. (the “Company”) announced its 2017 second 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 is 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 adjusted after-tax return on average invested capital ("ROIC") to measure the effectiveness of its operations’ use of invested capital to generate profits. ROIC is a non-GAAP financial measure that the Company believes is a meaningful metric to investors in evaluating the Company’s financial performance and may be different than the method used by other companies to calculate ROIC. Adjusted average invested capital represents the net assets of the Company, excluding cash and equivalents and outstanding debt, which are excluded as they do not represent capital investment in the Company's operations, as well as the Company's equity investment in the Wilsonart business (formerly the Decorative Surfaces segment). Average invested capital is calculated using balances at the start of the period and at the end of each quarter. A calculation of ROIC is included in the press release furnished as Exhibit 99.1.
Item 9.01Financial Statements and Exhibits
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(d) |
Exhibits |
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Exhibit Number |
Exhibit Description |
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99.1 |
Press Release issued by Illinois Tool Works Inc. dated July 24, 2017 (furnished to Item 2.02). |
ILLINOIS TOOL WORKS INC ExhibitEX-99.1 2 ex991pressrel2q17.htm EXHIBIT 99.1 Exhibit Exhibit 99.1ITW Reports Second-Quarter 2017 ResultsDelivers record financial results and raises earnings guidance for 2017Second-quarter highlights:•GAAP EPS of $1.69,…To view the full exhibit click here
About ILLINOIS TOOL WORKS INC. (NYSE:ITW)
Illinois Tool Works Inc. (ITW) is a manufacturer of a range of industrial products and equipment. The Company operates through seven segments: Automotive OEM, Test & Measurement and Electronics, Food Equipment, Polymers & Fluids, Welding, Construction Products and Specialty Products. It produces components and fasteners for automotive-related applications; equipment, consumables and related software for testing and measuring of materials and structures, and equipment and consumables used in the production of electronic subassemblies and microelectronics; adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance; arc welding equipment, consumables and accessories for a range of industrial and commercial applications, and beverage packaging equipment and consumables, product coding and marking equipment, and consumables, and appliance components and fasteners. It has over 80 divisions in approximately 60 countries.
