ILLINOIS TOOL WORKS INC. (NYSE:ITW) Files An 8-K Results of Operations and Financial Condition

ILLINOIS TOOL WORKS INC. (NYSE:ITW) Files An 8-K Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition

On April 25, 2019, Illinois Tool Works Inc. (the Company) announced its 2019>first>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 Companys 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 Companys financial performance and may be different than the method used by other companies to calculate ROIC. For comparability, the Company excluded the first quarter discrete tax benefit of $14 million related to foreign tax credits from the effective tax rate for the three months ended March 31, 2018. The Company also excluded the third quarter net discrete tax benefit of $15 million from the effective tax rate for the year ended December 31, 2018. 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. 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 9.01 Financial Statements and Exhibits
ILLINOIS TOOL WORKS INC Exhibit
EX-99.1 2 ex991pressrel1q19.htm EXHIBIT 99.1 Exhibit Exhibit 99.1ITW Delivers $1.81 Earnings per ShareReaffirms FY 2019 EPS Guidance of $7.90 to $8.20GLENVIEW,…
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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.

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