ILLINOIS TOOL WORKS INC : Results of Operations and Financial Condition, Financial Statements and Exhibits (form 8-K)
July 31, 2020 at 02:36 pm
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Item 2.02 Results of Operations and Financial Condition
On July 31, 2020, Illinois Tool Works Inc. (the "Company") announced its 2020
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 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.
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
(d) Exhibits
Exhibit Number Exhibit Description
99.1 Press Release issued by Illinois Tool
Works Inc. dated July 31, 2020
(furnished pursuant to Item 2.02).
104 Cover Page Interactive Data File
Illinois Tool Works Inc. is a diversified industrial group organized around 7 families of products:
- automotive equipment (20.1% of net sales). Besides, the group proposes products for maintenance and refurbishment (coatings, sealants, shutters, etc.);
- electronic equipment (17.5%): primarily equipment of microelectronic assembly. The group also provides test and measurement equipment and software;
- equipment for industrial kitchens (16.3%): cookers, dishwasher, ovens, refrigerators, cupboards, systems of aeration, etc.;
- construction systems and materials (12.6%): powder and gas nailing, perforators and consumables (fuses, chisels, pads, plugs, etc.) intended for applications on wood, steel and concrete;
- polymers, coatings, resins, adhesives and lubricants (11.2%);
- metallurgical equipment (10.5%): arc welding equipment, blowtorches, welding accessories, etc.
- specialty products (11.3%): industrial packaging systems and materials, products coding and marking equipment, etc.
Net sales are distributed geographically as follows: the United States (47.1%), North America (6.9%), Europe/Middle East/Africa (25.8%), Asia/Pacific (18.3%) and South America (1.9%).