This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2005. It includes Illinois Tool Works' statement of income, statement of financial position, and statement of cash flows for the quarter, as well as notes about stock-based compensation. Key details include that net income for the quarter was $373.8 million, total assets as of June 30, 2005 were $11.6 billion, and stock-based compensation expense recognized for the quarter was $9 million for restricted stock and $11.2 million on a pro forma basis.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending September 30, 2005. It includes their statement of income and statement of financial position for the quarter and year-to-date. For the quarter, ITW reported revenues of $3.26 billion and net income of $408 million. As of September 30, 2005, they had total assets of $11.24 billion including $2.17 billion in accounts receivable and $1.23 billion in inventory. Total liabilities were $3.16 billion including $378 million in short-term debt.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2004. It includes the company's unaudited financial statements, including statements of income, financial position, and cash flows for the quarter and year to date. Key highlights include total revenues of $3 billion for the quarter and $5.7 billion year to date, net income of $360 million for the quarter and $651 million year to date, and total assets of $11.9 billion and stockholders' equity of $8.2 billion as of June 30, 2004.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes the company's unaudited financial statements, including statements of income, financial position, and cash flows for the quarter. Key highlights include total revenues of $3.07 billion for the quarter, net income of $312.3 million, and adoption of new accounting standards for share-based compensation effective January 1, 2005 which increased reported compensation expense.
This document provides an SEC quarterly report filed by Illinois Tool Works Inc. for the third quarter of 2004. It includes:
- Condensed income statements and balance sheets for the periods ended September 30, 2004 and 2003.
- A statement of cash flows for the nine month periods ended September 30, 2004 and 2003.
- Notes to the financial statements regarding stock-based compensation, inventories, comprehensive income, and investments.
The financial statements show the company's revenues, expenses, assets, liabilities, cash flows, and notes for the periods.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2008. It includes Illinois Tool Works' condensed financial statements, including statements of income, financial position, and cash flows for the relevant periods. It also notes that the company completed some divestitures in 2007 and has classified other businesses as held for sale. The financial statements provide key financial information on Illinois Tool Works' performance, financial condition, and cash flows for the periods presented.
The document is Illinois Tool Works Inc.'s Form 10-Q filing for the quarterly period ended June 30, 2003. It includes Illinois Tool Works' unaudited financial statements, including their statement of income and statement of financial position for the periods. The statement of income shows that revenues increased but net income decreased in the first six months of 2003 compared to the same period in 2002. The statement of financial position lists their assets, liabilities, and stockholders' equity as of June 30, 2003 and December 31, 2002.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended March 31, 2006. It includes financial statements such as the Statement of Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements. The financial statements show that for the quarter ended March 31, 2006, Illinois Tool Works had operating revenues of $3.3 billion, net income of $366.5 million, and cash and equivalents of $454.5 million.
The document is Illinois Tool Works Inc.'s quarterly financial report for the period ending March 31, 2004. It reports that revenues for the quarter increased to $2.71 billion, up from $2.31 billion in the same period the previous year. Net income for the quarter was $290.2 million compared to $195.4 million in the prior year. Basic earnings per share from continuing operations increased to $0.94 per share from $0.65 per share in the previous year. Total current assets as of March 31, 2004 were $5.10 billion and total stockholders' equity was $7.23 billion.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending September 30, 2005. It includes their statement of income and statement of financial position for the quarter and year-to-date. For the quarter, ITW reported revenues of $3.26 billion and net income of $408 million. As of September 30, 2005, they had total assets of $11.24 billion including $2.17 billion in accounts receivable and $1.23 billion in inventory. Total liabilities were $3.16 billion including $378 million in short-term debt.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2004. It includes the company's unaudited financial statements, including statements of income, financial position, and cash flows for the quarter and year to date. Key highlights include total revenues of $3 billion for the quarter and $5.7 billion year to date, net income of $360 million for the quarter and $651 million year to date, and total assets of $11.9 billion and stockholders' equity of $8.2 billion as of June 30, 2004.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes the company's unaudited financial statements, including statements of income, financial position, and cash flows for the quarter. Key highlights include total revenues of $3.07 billion for the quarter, net income of $312.3 million, and adoption of new accounting standards for share-based compensation effective January 1, 2005 which increased reported compensation expense.
This document provides an SEC quarterly report filed by Illinois Tool Works Inc. for the third quarter of 2004. It includes:
- Condensed income statements and balance sheets for the periods ended September 30, 2004 and 2003.
- A statement of cash flows for the nine month periods ended September 30, 2004 and 2003.
- Notes to the financial statements regarding stock-based compensation, inventories, comprehensive income, and investments.
The financial statements show the company's revenues, expenses, assets, liabilities, cash flows, and notes for the periods.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2008. It includes Illinois Tool Works' condensed financial statements, including statements of income, financial position, and cash flows for the relevant periods. It also notes that the company completed some divestitures in 2007 and has classified other businesses as held for sale. The financial statements provide key financial information on Illinois Tool Works' performance, financial condition, and cash flows for the periods presented.
The document is Illinois Tool Works Inc.'s Form 10-Q filing for the quarterly period ended June 30, 2003. It includes Illinois Tool Works' unaudited financial statements, including their statement of income and statement of financial position for the periods. The statement of income shows that revenues increased but net income decreased in the first six months of 2003 compared to the same period in 2002. The statement of financial position lists their assets, liabilities, and stockholders' equity as of June 30, 2003 and December 31, 2002.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended March 31, 2006. It includes financial statements such as the Statement of Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements. The financial statements show that for the quarter ended March 31, 2006, Illinois Tool Works had operating revenues of $3.3 billion, net income of $366.5 million, and cash and equivalents of $454.5 million.
The document is Illinois Tool Works Inc.'s quarterly financial report for the period ending March 31, 2004. It reports that revenues for the quarter increased to $2.71 billion, up from $2.31 billion in the same period the previous year. Net income for the quarter was $290.2 million compared to $195.4 million in the prior year. Basic earnings per share from continuing operations increased to $0.94 per share from $0.65 per share in the previous year. Total current assets as of March 31, 2004 were $5.10 billion and total stockholders' equity was $7.23 billion.
This document provides the financial statements and notes of Illinois Tool Works Inc. for the quarterly period ended March 31, 2003. The statements include the income statement, balance sheet, cash flow statement, and notes. The income statement shows revenues increased to $2.3 billion and net income was $195 million. The balance sheet lists total assets of $10.8 billion including $1.1 billion in cash. The cash flow statement indicates cash from operations was $217 million and cash increased by $68 million during the period. The notes provide details on inventories, comprehensive income, discontinued operations, and goodwill and intangible assets.
Dover Corporation reported financial results for the third quarter of 2006 with the following highlights:
- Earnings from continuing operations increased 27% to $156.3 million compared to $123 million in the prior year.
- Revenue for the quarter increased 21% to $1.651.9 billion.
- Net earnings were $167.5 million including discontinued operations, compared to $122.7 million the previous year.
- The company expects a solid fourth quarter but with results moderating from the third quarter.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended March 31, 2007. It includes financial statements such as the Statement of Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements. The financial statements show that for the quarter ended March 31, 2007, Illinois Tool Works had revenues of $3.76 billion, net income of $402 million, and cash flows provided by operating activities of $423 million.
This document is an SEC Form 10-Q quarterly report filed by Xcel Energy Inc. for the quarter ended June 30, 2002. It includes consolidated statements of income showing operating revenues and expenses for the quarter and year-to-date, resulting in operating income of $345.6 million and $673 million respectively. It also reports net income of $87.3 million for the quarter and $190.8 million year-to-date, as well as earnings available to common shareholders of $86.2 million and $188.7 million.
Dover Corporation reported financial results for the first quarter of 2006 with the following highlights:
- Revenue increased 22% to a record $1.67 billion compared to $1.37 billion in the prior year.
- Earnings from continuing operations increased 40% to $133.5 million or $0.65 per share from $95.4 million or $0.47 per share in the previous year.
- Net earnings were $203.8 million or $0.99 per share, which includes discontinued operations income of $70.3 million or $0.34 per share.
This document summarizes the financial performance of a company for the third quarter and first nine months of 2005 compared to the same periods in 2004. It shows that net sales increased slightly for the quarter but increased 5% year-to-date, while earnings from continuing operations increased for both periods. On a segment level, the Household Group - North America saw stable sales growth and increased earnings for the quarter and year-to-date. Total assets decreased slightly from the previous fiscal year end while long-term debt increased significantly.
- The document reports financial results for Clorox for the third quarter and first nine months of fiscal year 2006 compared to the same periods in fiscal year 2005. Net sales increased 7% in the third quarter and 6% year-to-date. Earnings from continuing operations were $110 million for the third quarter and $301 million year-to-date.
This document summarizes Alltel Corporation's financial highlights and other information for the three months and twelve months ended December 31, 2006 and 2005. For the three months ended, revenues increased 14% to $2.1 billion while net income decreased 15% to $215.9 million. For the twelve months ended, revenues increased 20% to $7.9 billion while net income decreased 15% to $1.1 billion. Operating income increased 36% for the three months and 20% for the twelve months due to revenue growth and operating margin improvements.
- PPG Industries reported net sales of $2.87 billion for the quarter and $11.2 billion for the year, up compared to the same periods in 2006. Net income was $200 million for the quarter and $834 million for the year.
- By business segment, Performance Coatings and Industrial Coatings experienced the largest sales increases both for the quarter and full year.
- Total current assets at the end of 2007 were $7.14 billion, up from $4.86 billion at the end of 2006, mainly due to increases in cash, short-term investments, and receivables.
This document provides an overview and financial summary of Illinois Tool Works Inc. for the years 1999, 1998 and 1997. It discusses the company's six business segments and highlights for each segment include revenue growth, operating income, and margins. Overall revenues increased 11% in 1999 due to acquisitions and base business growth. Cost of revenues declined and selling expenses remained steady as a percentage of revenues. Net income was impacted by $81 million in merger-related costs from the Premark acquisition. The leasing and investments segment saw increased revenues and income from gains on asset sales and higher mortgage income.
Riga, 13 March 2015: Representatives from governments, industry, academia, NGOs, and other key stakeholders across Europe have joined forces with the European Commission to push for further action to stimulate investment, the acquisition of digital skills and the creation of jobs to kick start Europe’s anaemic rate of economic growth.
This document provides a practical guide to help potential beneficiaries obtain funding from European Union sources for research and innovation projects. It outlines the main EU funding instruments - the 7th Research Framework Programme, the Competitiveness and Innovation Framework Programme, and the Structural Funds. The guide explains how to identify the most appropriate funding source based on eligibility, the nature of the proposed activity, timeframe, available financial support, involvement of partners, and location. It also provides information on how the different funding sources can be combined to maximize support. National contact points and other advisory resources are listed to help applicants navigate the application process.
- NIKE's Q3 earnings conference call transcript from March 2007 discusses strong financial results, with net revenue up 9% and futures orders up 9% as well
- NIKE saw growth across all regions and product categories, driven by innovation in performance products and strength in key franchises like Jordan and Air Force 1
- While results were positive, NIKE planned to continue optimizing costs and inventory levels to drive sustainable, profitable growth over the long term
Gigi reyes public apology and statementraissarobles
Gigi Reyes, chief-of-staff to Senate President Juan Ponce Enrile, issues a public apology for disrespectful comments made about Senator Alan Cayetano in an interview. She resigns from her position due to the ethical breach and differing opinions with Enrile on how to respond to allegations of misused public funds. Reyes provides context around Senate budgets and processes to clarify inaccuracies in the allegations while also expressing disappointment that more Senators did not defend Enrile or the Senate's honor during the controversy.
O fotógrafo Carl Warner cria cenários utilizando apenas alimentos, chamados de "foodscapes". Ele usa frutas, legumes e outros itens para representar paisagens como florestas, praias e cachoeiras. Warner passa horas procurando os alimentos perfeitos e faz fotos em mesas grandes para dar profundidade às cenas.
El documento presenta una serie de frases cortas que parecen ser slogans publicitarios para diferentes productos como automóviles, pasta dental, ketchup, bolsas de compras, pinturas, pan, buscadores en internet, limpiavidrios, afeitadoras y marcadores. Promueven las cualidades de los productos como la velocidad, brillo, sabor, comodidad, efectividad para limpiar y afeitar, y permanencia de la tinta.
Ofrendas en Mexico, altares construidos para conmemorar el dia de todos los santos en la ciudad de puebla, en casa de cultura y el bachillerato Profra. Rosario Graciela Hidalgo Moreno
This document is Illinois Tool Works Inc.'s annual report on Form 10-K filed with the SEC for the fiscal year ending December 31, 2001. It provides an overview of ITW's business operations, including that it operates across five segments and has over 600 operations globally. It also lists key developments in 2001, financial information by segment, details on markets served, competition, raw materials, research and development activities, intellectual property, environmental compliance and risk factors.
This document provides the financial statements and notes of Illinois Tool Works Inc. for the quarterly period ended March 31, 2003. The statements include the income statement, balance sheet, cash flow statement, and notes. The income statement shows revenues increased to $2.3 billion and net income was $195 million. The balance sheet lists total assets of $10.8 billion including $1.1 billion in cash. The cash flow statement indicates cash from operations was $217 million and cash increased by $68 million during the period. The notes provide details on inventories, comprehensive income, discontinued operations, and goodwill and intangible assets.
Dover Corporation reported financial results for the third quarter of 2006 with the following highlights:
- Earnings from continuing operations increased 27% to $156.3 million compared to $123 million in the prior year.
- Revenue for the quarter increased 21% to $1.651.9 billion.
- Net earnings were $167.5 million including discontinued operations, compared to $122.7 million the previous year.
- The company expects a solid fourth quarter but with results moderating from the third quarter.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended March 31, 2007. It includes financial statements such as the Statement of Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements. The financial statements show that for the quarter ended March 31, 2007, Illinois Tool Works had revenues of $3.76 billion, net income of $402 million, and cash flows provided by operating activities of $423 million.
This document is an SEC Form 10-Q quarterly report filed by Xcel Energy Inc. for the quarter ended June 30, 2002. It includes consolidated statements of income showing operating revenues and expenses for the quarter and year-to-date, resulting in operating income of $345.6 million and $673 million respectively. It also reports net income of $87.3 million for the quarter and $190.8 million year-to-date, as well as earnings available to common shareholders of $86.2 million and $188.7 million.
Dover Corporation reported financial results for the first quarter of 2006 with the following highlights:
- Revenue increased 22% to a record $1.67 billion compared to $1.37 billion in the prior year.
- Earnings from continuing operations increased 40% to $133.5 million or $0.65 per share from $95.4 million or $0.47 per share in the previous year.
- Net earnings were $203.8 million or $0.99 per share, which includes discontinued operations income of $70.3 million or $0.34 per share.
This document summarizes the financial performance of a company for the third quarter and first nine months of 2005 compared to the same periods in 2004. It shows that net sales increased slightly for the quarter but increased 5% year-to-date, while earnings from continuing operations increased for both periods. On a segment level, the Household Group - North America saw stable sales growth and increased earnings for the quarter and year-to-date. Total assets decreased slightly from the previous fiscal year end while long-term debt increased significantly.
- The document reports financial results for Clorox for the third quarter and first nine months of fiscal year 2006 compared to the same periods in fiscal year 2005. Net sales increased 7% in the third quarter and 6% year-to-date. Earnings from continuing operations were $110 million for the third quarter and $301 million year-to-date.
This document summarizes Alltel Corporation's financial highlights and other information for the three months and twelve months ended December 31, 2006 and 2005. For the three months ended, revenues increased 14% to $2.1 billion while net income decreased 15% to $215.9 million. For the twelve months ended, revenues increased 20% to $7.9 billion while net income decreased 15% to $1.1 billion. Operating income increased 36% for the three months and 20% for the twelve months due to revenue growth and operating margin improvements.
- PPG Industries reported net sales of $2.87 billion for the quarter and $11.2 billion for the year, up compared to the same periods in 2006. Net income was $200 million for the quarter and $834 million for the year.
- By business segment, Performance Coatings and Industrial Coatings experienced the largest sales increases both for the quarter and full year.
- Total current assets at the end of 2007 were $7.14 billion, up from $4.86 billion at the end of 2006, mainly due to increases in cash, short-term investments, and receivables.
This document provides an overview and financial summary of Illinois Tool Works Inc. for the years 1999, 1998 and 1997. It discusses the company's six business segments and highlights for each segment include revenue growth, operating income, and margins. Overall revenues increased 11% in 1999 due to acquisitions and base business growth. Cost of revenues declined and selling expenses remained steady as a percentage of revenues. Net income was impacted by $81 million in merger-related costs from the Premark acquisition. The leasing and investments segment saw increased revenues and income from gains on asset sales and higher mortgage income.
Riga, 13 March 2015: Representatives from governments, industry, academia, NGOs, and other key stakeholders across Europe have joined forces with the European Commission to push for further action to stimulate investment, the acquisition of digital skills and the creation of jobs to kick start Europe’s anaemic rate of economic growth.
This document provides a practical guide to help potential beneficiaries obtain funding from European Union sources for research and innovation projects. It outlines the main EU funding instruments - the 7th Research Framework Programme, the Competitiveness and Innovation Framework Programme, and the Structural Funds. The guide explains how to identify the most appropriate funding source based on eligibility, the nature of the proposed activity, timeframe, available financial support, involvement of partners, and location. It also provides information on how the different funding sources can be combined to maximize support. National contact points and other advisory resources are listed to help applicants navigate the application process.
- NIKE's Q3 earnings conference call transcript from March 2007 discusses strong financial results, with net revenue up 9% and futures orders up 9% as well
- NIKE saw growth across all regions and product categories, driven by innovation in performance products and strength in key franchises like Jordan and Air Force 1
- While results were positive, NIKE planned to continue optimizing costs and inventory levels to drive sustainable, profitable growth over the long term
Gigi reyes public apology and statementraissarobles
Gigi Reyes, chief-of-staff to Senate President Juan Ponce Enrile, issues a public apology for disrespectful comments made about Senator Alan Cayetano in an interview. She resigns from her position due to the ethical breach and differing opinions with Enrile on how to respond to allegations of misused public funds. Reyes provides context around Senate budgets and processes to clarify inaccuracies in the allegations while also expressing disappointment that more Senators did not defend Enrile or the Senate's honor during the controversy.
O fotógrafo Carl Warner cria cenários utilizando apenas alimentos, chamados de "foodscapes". Ele usa frutas, legumes e outros itens para representar paisagens como florestas, praias e cachoeiras. Warner passa horas procurando os alimentos perfeitos e faz fotos em mesas grandes para dar profundidade às cenas.
El documento presenta una serie de frases cortas que parecen ser slogans publicitarios para diferentes productos como automóviles, pasta dental, ketchup, bolsas de compras, pinturas, pan, buscadores en internet, limpiavidrios, afeitadoras y marcadores. Promueven las cualidades de los productos como la velocidad, brillo, sabor, comodidad, efectividad para limpiar y afeitar, y permanencia de la tinta.
Ofrendas en Mexico, altares construidos para conmemorar el dia de todos los santos en la ciudad de puebla, en casa de cultura y el bachillerato Profra. Rosario Graciela Hidalgo Moreno
This document is Illinois Tool Works Inc.'s annual report on Form 10-K filed with the SEC for the fiscal year ending December 31, 2001. It provides an overview of ITW's business operations, including that it operates across five segments and has over 600 operations globally. It also lists key developments in 2001, financial information by segment, details on markets served, competition, raw materials, research and development activities, intellectual property, environmental compliance and risk factors.
ISS’s recently announced 2014 policy changes for U.S. companies are relatively limited in scope compared to past years. The updates, which are largely unchanged from the draft policies released in November, will take effect for annual meetings beginning in February 2014.
More substantive policy revisions, however, are already in the works for the 2015 proxy season. ISS has opened a new consultation period through February 2014 to solicit feedback from governance stakeholders on five additional issues: independent chairman shareholder proposals, director tenure, director independence, auditor tenure, and equity plan scoring. Details of these and ISS’s 2014 policy updates are presented in this newsletter.
Weyerhaeuser Analyst Meeting DC – Day 1 (Economic Overview)finance15
This document provides an agenda and background materials for an analyst seminar being held by Weyerhaeuser Real Estate Company (WRECO) in May 2005. The agenda covers an overview of WRECO, its homebuilding operations, land and land development, construction practices and trends, and a case study. Background slides provide financial performance details on WRECO, its competitive advantages in the homebuilding industry, land pipeline, safety record, and subsidiary Weyerhaeuser Realty Investors.
This document provides an annual investors' report for Burlington Northern Santa Fe Corporation for 2004. Some key points:
- BNSF reported record quarterly earnings of $0.91 per share for Q4 2004, up 49% from $0.61 per share in Q4 2003. Revenues also reached a record at $2.92 billion for the quarter.
- Freight revenues increased 19% year-over-year for Q4 driven by double-digit growth across all four business groups.
- Operating expenses grew 15% for the quarter due to a 10% increase in volumes and higher fuel prices.
- The operating ratio improved to 77.1% for Q4
The document is a notice for the annual meeting of stockholders of Illinois Tool Works Inc. (ITW) to be held on May 2, 2008. The purposes of the meeting are to: 1) elect ten directors for the upcoming year; 2) reapprove the performance factors and award limit under the Executive Incentive Plan; and 3) ratify the appointment of Deloitte & Touche LLP as ITW's independent public accountants. Stockholders of record as of March 4, 2008 are entitled to vote. The board recommends voting for all director nominees and proposals.
Burlington Northern Santa Fe Corporation (BNSF) reported its 2005 revenue statistics by commodity. Total freight revenue for 2005 was $12.6 billion, a 1.6% increase from 2004. Domestic intermodal revenue was the largest segment at $2.4 billion, growing 5.7% over 2004. Coal was the second largest segment, generating $2.4 billion in revenue. Overall, BNSF transported 10 billion revenue ton miles of freight in 2005, a 4.3% increase compared to 2004.
Dominion Resources Services, Inc. provides shareholder services and information to Dominion shareholders. This includes personal assistance by phone and online, as well as access to press releases and account information on their website. The document also provides details on Dominion's upcoming annual meeting, stock performance over five years, stock listing and price history, dividend payments, number of shareholders, and certifications required by the SEC and NYSE.
This document is a quarterly financial report filed by Illinois Tool Works Inc. with the SEC for the third quarter of 2005. It includes the company's statement of income, balance sheet, and statement of cash flows for the periods presented. The key details are:
- Net income for Q3 2005 was $408.2 million, up from $330.1 million in Q3 2004.
- Revenue for the first nine months of 2005 was $9.6 billion, up from $8.7 billion in the same period of 2004.
- Total assets as of September 30, 2005 were $11.2 billion, compared to $11.4 billion as of December 31, 2004.
The document is Illinois Tool Works Inc.'s Form 10-Q filing for the quarterly period ended June 30, 2004. It provides financial statements and notes for the company, including their statement of income, balance sheet, and notes on accounting policies. For the quarter, Illinois Tool Works reported revenues of $3 billion, operating income of $561.5 million, and net income of $360.3 million. As of June 30, 2004 their total assets were $11.85 billion with current assets of $4.99 billion.
This document provides an SEC quarterly report filed by Illinois Tool Works Inc. for the third quarter of 2004. It includes financial statements such as the statement of income, balance sheet, and statement of cash flows. The statements show that for the third quarter of 2004, Illinois Tool Works reported net income of $330 million on revenues of $2.97 billion, compared to net income of $269 million on revenues of $2.53 billion for the same period in 2003. For the first nine months of 2004, net income was $981 million on revenues of $8.68 billion, compared to net income of $740 million on revenues of $7.41 billion for the first nine months of 2003. The balance sheet indicates
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2008. It includes Illinois Tool Works' condensed financial statements, including statements of income, financial position, and cash flows for the relevant periods. It also notes that the company completed some divestitures in 2007 and has classified other businesses as held for sale. The financial statements provide key financial information on Illinois Tool Works' performance, financial condition, and cash flows for the periods presented.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2003. It includes Illinois Tool Works' statement of income, balance sheet, cash flows statement, and notes to the financial statements. The statements show that for the quarter, Illinois Tool Works had revenues of $2.56 billion, operating income of $454 million, net income of $276 million, and earnings per share of $0.90. As of June 30, 2003, Illinois Tool Works had total assets of $11.26 billion and stockholders' equity of $7.30 billion.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes the company's unaudited financial statements, including the income statement, balance sheet, cash flow statement, and notes. The financial statements show that for the quarter ITW reported revenues of $3.07 billion, net income of $312 million, and diluted EPS of $1.06. Cash flow from operations was $303 million. The balance sheet lists total assets of $12 billion including $1.1 billion of cash, and total liabilities and equity of $12 billion.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended March 31, 2007. The summary includes:
- Illinois Tool Works reported net income of $402 million on revenues of $3.76 billion for the quarter.
- Their balance sheet as of March 31, 2007 showed total assets of $14.37 billion including $2.07 billion in plant and equipment. Total liabilities were $4.21 billion and stockholders' equity was $9.16 billion.
- Cash flows from operating activities for the quarter provided $423 million. Cash used for investing activities was $251 million, including $269 million for business acquisitions.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2008. It includes Illinois Tool Works' consolidated statements of income, financial position, cash flows, and notes to the financial statements. Key highlights include total revenues of $4.1 billion for Q1 2008, net income of $303.6 million, and goodwill impairment charges of $97.2 million related to its industrial software business.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2008. It includes Illinois Tool Works' consolidated statements of income, financial position, cash flows, and notes to the financial statements. Key highlights include total revenues of $4.1 billion for Q1 2008, net income of $303.6 million, and goodwill impairment charges of $97.2 million related to its industrial software business.
This document is a quarterly report filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarter ended June 30, 2006. It includes the company's statement of income, statement of financial position, statement of cash flows, and notes to the financial statements. The statements show that for the quarter ended June 30, 2006, Illinois Tool Works had operating revenues of $3.6 billion, net income of $466 million, and cash provided by operating activities of $749 million. Total assets as of June 30, 2006 were $12.5 billion, with current assets of $4.8 billion and total stockholders' equity of $8.6 billion.
This document is a quarterly report filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarter ended June 30, 2006. It includes financial statements such as the statement of income, statement of financial position, statement of cash flows, and notes to the financial statements. The financial statements show that for the quarter ended June 30, 2006, Illinois Tool Works had operating revenues of $3.6 billion, net income of $466 million, and earnings per share of $0.82. Total assets as of June 30, 2006 were $12.5 billion.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended March 31, 2006. It includes financial statements such as the Statement of Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements. The financial statements show that for the quarter ended March 31, 2006, Illinois Tool Works had operating revenues of $3.3 billion, net income of $366.5 million, and cash and equivalents of $454.5 million.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending March 31, 2004. It includes the company's unaudited financial statements and notes. The financial statements show that for the quarter, revenue increased 17% to $2.71 billion compared to the same period in 2003. Net income increased 48% to $290.2 million. Earnings per share from continuing operations increased to $0.93 from $0.65 in the prior year. Cash flow from operations was $319.7 million for the quarter.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended June 30, 2007. The report includes Illinois Tool Works' consolidated statement of income, financial position, cash flows, and notes to the financial statements for the quarter. Key details include operating revenues of $4.16 billion for the quarter, net income of $505.6 million, total assets of $14.64 billion, and goodwill and intangible asset impairment charges totaling $2.15 million recorded in the first quarter of 2007.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended June 30, 2007. The report includes Illinois Tool Works' consolidated statement of income, financial position, cash flows, and notes to the financial statements for the quarter. Key details include operating revenues of $4.16 billion for the quarter, net income of $505.6 million, total assets of $14.64 billion, and goodwill and intangible asset impairment charges totaling $2.15 million recorded in the first quarter of 2007.
The document is Illinois Tool Works Inc.'s quarterly financial report for the period ending March 31, 2003. It includes the company's statement of income and statement of financial position for the first quarter of 2003, as well as comparative financial data for the same period in 2002. Key highlights include total operating revenues of $2.3 billion for the first quarter of 2003, net income of $195 million, and total assets of $10.8 billion as of March 31, 2003.
The document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending September 30, 2003. It includes the company's unaudited financial statements and notes. The financial statements show that for the quarter, ITW reported revenues of $2.5 billion, operating income of $426.7 million, net income of $268.9 million, and basic earnings per share of $0.88. For the nine months ending September 30, revenues were $7.4 billion, operating income was $1.2 billion, net income was $740.4 million, and basic EPS was $2.41.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending September 30, 2003. It includes Illinois Tool Works' statement of income, balance sheet, cash flows statement, and notes to the financial statements. For the quarter, Illinois Tool Works reported net income of $268.9 million on revenues of $2.531 billion. Total assets as of September 30, 2003 were $10.795 billion, with total stockholders' equity of $7.399 billion. Cash provided by operating activities for the first nine months of 2003 was $888.5 million.
This document is Form 10-Q filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarterly period ended June 30, 2002. The summary includes:
- Illinois Tool Works reported net income of $267.5 million for the quarter on revenues of $2.43 billion. For the six months ended June 30, 2002, net income was $244.1 million on revenues of $4.64 billion.
- Earnings per share from continuing operations for the quarter were $0.87, and $1.50 for the six months.
- The filing includes Illinois Tool Works' consolidated statement of income, balance sheet, and cash flows for the periods, as well as
This document is Form 10-Q filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarterly period ended June 30, 2002. The summary includes:
- Illinois Tool Works reported net income of $267.5 million for the quarter on revenues of $2.43 billion. For the six months ended June 30, 2002, net income was $244.1 million on revenues of $4.64 billion.
- Earnings per share from continuing operations for the quarter were $0.87, and $1.50 for the six months.
- The filing includes Illinois Tool Works' consolidated statement of income, balance sheet, and cash flows for the periods, as well as
This document provides consolidated financial highlights for Burlington Northern Santa Fe Corporation for the years 1991-1995. Some key points:
- Revenues grew from $4.559 billion in 1991 to $6.183 billion in 1995. Operating income improved from a loss of $239 million in 1991 to income of $526 million in 1995, excluding unusual merger-related charges.
- Net income was $92 million in 1995 but would have been $416 million without accounting changes and debt retirement costs related to the merger.
- Capital expenditures were $1.042 billion in 1995 and are planned to be nearly $1.7 billion in 1996 to support revenue growth and cost reduction initiatives.
This document summarizes the financial performance of Burlington Northern Santa Fe Corporation for the years 1992-1996. It reports that in 1996:
- Operating income increased 14% to $1.75 billion compared to 1995 on a comparable basis.
- Revenues reached $8.19 billion despite a drop in agricultural commodities revenues.
- Operating expenses were $178 million below 1995 levels, lowering the operating ratio to 78.6%.
- Net income grew 21% to $889 million, or $5.70 per share, compared to $733 million in 1995.
This annual report summarizes Burlington Northern Santa Fe Corporation's financial and operational performance in 1998. Some key highlights include:
- Revenues reached a record $8.94 billion, a 6.8% increase over 1997.
- Adjusted operating income grew 16% to a record $2.16 billion.
- Adjusted net income exceeded $1.12 billion, a 19% improvement over 1997.
- The operating ratio improved to 75.9%, nearly 2 points better than 1997's adjusted ratio.
- Safety continued to improve, with reductions in reportable injuries and rail accidents.
Burlington Northern Santa Fe Corporation's 1999 Annual Report summarizes the company's performance in 1999 and compares it to 1994, the year before the BNSF merger. Key points:
1) BNSF achieved record results in safety, customer service, efficiency and financial performance in 1999 compared to 1994.
2) Safety metrics like lost workdays and injuries dropped significantly. Customer service improved with 91% on-time performance. Operating expenses per ton-mile dropped 20-25%.
3) Financial results were also much stronger, with operating income reaching a record $2.24 billion, up 14% annually from 1994. The operating ratio improved 9 points to 75.4%.
Burlington Northern Santa Fe Corporation's 2000 Annual Report summarizes the company's performance for the year. Key points include:
- Revenues grew to $9.2 billion while operating expenses only increased 1% despite a $230 million rise in fuel costs.
- Intermodal revenues increased 6% to a record level while safety and efficiency improvements were made.
- However, weak coal demand, high fuel prices, and a slow US economy impacted results for the year.
- Over the past five years since the Burlington Northern and Santa Fe merger, significant progress has been made in safety, service, efficiency and financials.
This document is the 2001 Annual Report to Shareholders for Burlington Northern Santa Fe Corporation. It contains the following key information:
1) The CEO discusses BNSF's progress on its strategic priorities of People, Growth, Ease of Doing Business, Service, and Efficiency in 2001, noting challenges from the economic slowdown but some record achievements.
2) Safety improvements were made but injuries remained level, while discussions progressed with unions on safety agreements.
3) Revenues were flat in 2001 due to economic conditions, but some business lines like Mexico grew, and new customers and services helped capture additional market share.
4) Financial results disappointed expectations for revenue and operating ratio goals, though costs
BNSF is a major railroad network in the United States that transports a variety of goods. In 2003, BNSF saw revenue growth of 5% driven by strong intermodal growth, though on-time performance fell short of goals. Safety performance reached record levels with injury rates down significantly. Looking forward, BNSF aims to continue revenue growth through initiatives like expanding intermodal capacity and pursuing market-based pricing across all business lines.
Burlington Northern Santa Fe Corporation reported earnings of $0.36 per diluted share for the first quarter of 2001, compared to $0.55 per diluted share for the same period in 2000. Freight revenues were $2.26 billion, up slightly due to a 4% increase in ton-miles. Operating expenses increased 7% to $1.87 billion due to higher fuel costs, severe winter weather, and increased energy costs. The operating ratio was 81.5% compared to 77.3% in 2000. Revenue from agricultural commodities increased 11% while industrial revenues declined 3% and coal revenues declined 1% compared to the first quarter of 2000.
The document is Burlington Northern Santa Fe Corporation's 2nd Quarter 2001 Investors' Report. It summarizes that:
1) Earnings were $0.50 per diluted share compared to $0.53 per diluted share in the same period last year, with revenues remaining even despite 2% higher ton-miles.
2) Operating expenses were $65 million higher due to factors like flooding in the Midwest and higher fuel costs.
3) Operating income decreased to $428 million from $483 million last year, and the operating ratio increased to 80.9% from 78.4% last year.
The document is Burlington Northern Santa Fe Corporation's third quarter 2001 investors' report. Key points:
- Earnings per share were $0.58 compared to $0.64 in third quarter 2000. Freight revenues were $2.31 billion, even with last year.
- Operating expenses were higher by $69 million due to increased compensation, benefits, and fuel costs. Operating income was $502 million versus $571 million in 2000.
- 4.1 million shares were repurchased in the quarter, bringing the total under the buyback program to 101.1 million shares.
- The report provides financial statements and statistics on revenues, expenses, operations, and capital expenditures for
This document provides an annual investors' report for Burlington Northern Santa Fe Corporation for 2001. It includes key financial information such as earnings results for Q4 and full year 2001, operating revenues and expenses, balance sheet information, and cash flow information. Specifically, it notes that Q4 2001 earnings were $0.46 per share including workforce reduction costs, or $0.57 per share excluding those costs. For the full year, earnings were $1.87 per share including unusual items, or $2.08 per share excluding unusual items. It also highlights free cash flow of $443 million for the full year, up 3% from 2000.
1. Burlington Northern Santa Fe reported first quarter 2002 earnings of $0.45 per share, up from $0.34 per share in first quarter 2001, which included non-recurring losses.
2. Freight revenues decreased 6% to $2.14 billion due to softer demand across all major product sectors and mild winter weather reducing coal shipments.
3. Operating expenses decreased 4% to $1.8 billion due to reductions in fuel costs, compensation, and equipment rents, partially offsetting the revenue decline.
Burlington Northern Santa Fe reported earnings of $0.51 per share for Q2 2002, up slightly from $0.50 per share in Q2 2001. Freight revenues were $2.18 billion, down 3% from the previous year, with declines in coal, agricultural products, and industrial products offsetting growth in consumer products. Operating expenses decreased 2% despite lower fuel prices, helping maintain the operating ratio at 81.4%. The company also repurchased 4.2 million shares during the quarter.
The document is Burlington Northern Santa Fe Corporation's third quarter 2002 investors' report. It includes:
- BNSF reported earnings of $0.51 per share for Q3 2002, even with adjusted earnings of $0.56 per share for the same period in 2001.
- Freight revenues were $2.28 billion for Q3 2002, even with adjusted revenues of $2.28 billion for Q3 2001.
- Operating income decreased to $421 million for Q3 2002 compared to adjusted operating income of $470 million for Q3 2001, with the operating ratio increasing to 81.6% from 79.4%.
This document provides an annual investors' report for Burlington Northern Santa Fe Corporation for 2002. It includes:
1) Key financial highlights for Q4 2002 including $0.54 earnings per share, $2.27 billion in freight revenues, and $436 million in operating income.
2) Annual 2002 results including $2.00 earnings per share, $8.87 billion in freight revenues, and $1.66 billion in operating income.
3) Details of common stock repurchases totaling approximately 116 million shares under their repurchase program.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
What's a worker’s market? Job quality and labour market tightness
itw 10 q2 q05
1. UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2005
OR
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission File Number: 1-4797
ILLINOIS TOOL WORKS INC.
(Exact name of registrant as specified in its charter)
Delaware 36-1258310
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
3600 West Lake Avenue, Glenview, IL 60026-1215
(Address of principal executive offices) (Zip Code)
(Registrant’s telephone number, including area code) 847-724-7500
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes [X] No [ ]
The number of shares of registrant’s common stock, $.01 par value, outstanding at June 30, 2005: 285,973,462.
1
2. Part I – Financial Information
Item 1 – Financial Statements
ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
FINANCIAL STATEMENTS
The unaudited financial statements included herein have been prepared by Illinois Tool Works Inc. and Subsidiaries (the “Company”).
In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair
statement of the results for interim periods. It is suggested that these financial statements be read in conjunction with the financial
statements and notes to financial statements included in the Company’s Annual Report on Form 10-K/A. Certain reclassifications of
prior years’ data have been made to conform with current year reporting.
2
3. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME
(UNAUDITED)
(In thousands except for per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating Revenues $ 3,295,644 $ 3,002,271 $ 6,369,935 $ 5,712,620
Cost of revenues 2,156,602 1,929,803 4,178,939 3,680,146
Selling, administrative, and research
and development expenses 556,975 502,880 1,105,050 986,221
Amortization and impairment of
goodwill and other intangible assets 15,213 8,052 41,203 37,075
Operating Income 566,854 561,536 1,044,743 1,009,178
Interest expense (27,352) (18,991) (46,079) (34,873)
Other income 6,880 3,505 10,324 11,170
Income from Continuing Operations
Before Income Taxes 546,382 546,050 1,008,988 985,475
Income Taxes 172,600 185,700 322,900 335,100
Income from Continuing Operations 373,782 360,350 686,088 650,375
Income from Discontinued Operations — — — 171
Net Income $ 373,782 $ 360,350 $ 686,088 $ 650,546
Income Per Share from Continuing
Operations:
Basic $1.30 $1.17 $2.37 $2.11
Diluted $1.29 $1.16 $2.35 $2.09
Income Per Share from Discontinued
Operations:
Basic — — — $0.00
Diluted — — — $0.00
Net Income Per Share:
Basic $1.30 $1.17 $2.37 $2.11
Diluted $1.29 $1.16 $2.35 $2.10
Cash Dividends:
Paid $0.28 $0.24 $0.56 $0.48
Declared $0.28 $0.24 $0.56 $0.48
Shares of Common Stock Outstanding
During the Period:
Average 287,902 308,086 289,639 308,168
Average assuming dilution 290,015 310,638 291,800 310,504
3
4. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
(In thousands)
June 30, 2005 December 31, 2004
ASSETS
Current Assets:
Cash and equivalents $ 858,679 $ 667,390
Trade receivables 2,134,215 2,054,624
Inventories 1,274,538 1,281,156
Deferred income taxes 156,664 147,416
Prepaid expenses and other current assets 143,020 171,612
Total current assets 4,567,116 4,322,198
Plant and Equipment:
Land 157,512 160,649
Buildings and improvements 1,213,702 1,236,541
Machinery and equipment 3,232,190 3,272,144
Equipment leased to others 153,254 150,412
Construction in progress 102,492 117,366
4,859,150 4,937,112
Accumulated depreciation (3,036,914) (3,060,237)
Net plant and equipment 1,822,236 1,876,875
Investments 971,354 912,483
Goodwill 2,834,779 2,753,053
Intangible Assets 477,328 440,002
Deferred Income Taxes 121,159 233,172
Other Assets 835,143 814,151
$ 11,629,115 $ 11,351,934
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term debt $ 696,788 $ 203,523
Accounts payable 555,804 603,811
Accrued expenses 946,668 959,380
Cash dividends payable 79,909 81,653
Income taxes payable 1,213 2,604
Total current liabilities 2,280,382 1,850,971
Noncurrent Liabilities:
Long-term debt 967,208 921,098
Other 954,324 952,255
Total noncurrent liabilities 1,921,532 1,873,353
Stockholders’ Equity:
Common stock 3,117 3,114
Additional paid-in-capital 1,025,034 978,941
Income reinvested in the business 8,488,550 7,963,518
Common stock held in treasury (2,304,064) (1,731,378)
Accumulated other comprehensive income 214,564 413,415
Total stockholders’ equity 7,427,201 7,627,610
11,629,115
$ $ 11,351,934
4
5. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF CASH FLOWS
(UNAUDITED)
(In thousands)
Six Months Ended
June 30
2005 2004
Cash Provided by (Used for) Operating Activities:
Net income $ 686,088 $ 650,546
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations — (171)
Depreciation 147,229 144,554
Amortization and impairment of goodwill and other intangible assets 41,203 37,075
Change in deferred income taxes 58,368 (6,212)
Provision for uncollectible accounts 5,113 2,405
Loss on sale of plant and equipment 2,545 2,561
Income from investments (29,357) (87,370)
(Gain) loss on sale of operations and affiliates 195 (477)
Stock compensation expense 31,093 16,399
Other non-cash items, net (1,729) 4,442
Changes in assets and liabilities:
(Increase) decrease in--
Trade receivables (120,635) (177,073)
Inventories (8,503) (60,771)
Prepaid expenses and other assets 338 (68,291)
Increase (decrease) in--
Accounts payable (34,091) 23,056
Accrued expenses and other liabilities 15,423 (7,449)
Income taxes payable 7,995 223,254
Other, net — 40
Net cash provided by operating activities 801,275 696,518
Cash Provided by (Used for) Investing Activities:
Acquisition of businesses (excluding cash and equivalents) and additional interest in affiliates (200,144) (376,799)
Additions to plant and equipment (144,709) (129,772)
Purchase of investments (73,244) (28,694)
Proceeds from investments 27,638 38,452
Proceeds from sales of plant and equipment 16,298 7,806
Net settlement from sales of operations and affiliates (173) 3,395
Other, net 6,137 8,834
Net cash used for investing activities (368,197) (476,778)
Cash Provided by (Used for) Financing Activities:
Cash dividends paid (162,799) (147,976)
Issuance of common stock 15,003 50,524
Repurchases of common stock (572,686) (259,110)
Net proceeds (repayments) of short-term debt 491,415 (7,332)
Proceeds from long-term debt 58,077 34
Repayments of long-term debt (6,119) (4,248)
Net cash used for financing activities (177,109) (368,108)
Effect of Exchange Rate Changes on Cash and Equivalents (64,680) 1,093
Cash and Equivalents:
Increase (decrease) during the period 191,289 (147,275)
Beginning of period 667,390 1,684,483
End of period $ 858,679 $ 1,537,208
Cash Paid During the Period for Interest $ 47,283 $ 36,616
Cash Paid During the Period for Income Taxes $ 258,856 $ 107,163
Liabilities Assumed from Acquisitions $ 55,179 $ 111,190
5
6. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) STOCK-BASED COMPENSATION:
Stock options and restricted stock have been issued to officers and other management employees under ITW’s 1996 Stock Incentive
Plan. The stock options generally vest over a four-year period and have a maturity of ten years from the issuance date. Restricted stock
generally vests over a three-year period. The restricted shares vest only if the employee is actively employed by the Company on the
vesting date, and unvested shares are forfeited upon retirement, death or disability, unless the Compensation Committee of the Board
of Directors determines otherwise. The restricted shares carry full voting and dividend rights unless the shares are forfeited. To cover
the exercise of vested options, the Company generally issues new shares from its authorized but unissued share pool. At June 30,
2005, 18,123,419 shares of ITW common stock were reserved for issuance under this plan. Option exercise prices are equal to the
common stock fair market value on the date of grant.
Effective January 1, 2005, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based
Payment (“SFAS 123R”), which requires the Company to measure the cost of employee services received in exchange for equity
awards based on the grant date fair value. Starting in 2005, the Company records compensation cost related to the amortization of the
unamortized grant date fair value of stock awards unvested as of December 31, 2004 over the remaining service periods of those
awards. SFAS 123R superseded Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation
and Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (“APB 25”).
Prior to 2005, the Company accounted for stock-based compensation in accordance with APB 25, using the intrinsic value method,
which did not require that compensation cost be recognized for the Company’s stock options. The Company’s net income and net
income per share for 2004 would have been reduced if compensation cost related to stock options had been determined based on fair
value at the grant dates. Pro forma net income as if the fair value method had been applied to all awards is as follows:
(In thousands, except for per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Net income as reported $ 373,782 $ 360,350 $ 686,088 $ 650,546
Add: Restricted stock and stock options recorded as
expense, net of tax 11,154 6,002 22,479 12,084
Deduct: Total stock-based compensation
expense, net of tax (11,154) (10,612) (22,479) (21,304)
Pro forma net income $ 373,782 $ 355,740 $ 686,088 $ 641,326
Net income per share:
Basic – as reported $1.30 $1.17 $2.37 $2.11
Basic – pro forma $1.30 $1.15 $2.37 $2.08
Diluted – as reported $1.29 $1.16 $2.35 $2.10
Diluted – pro forma $1.29 $1.15 $2.35 $2.07
6
7. The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Restricted Stock:
Pretax compensation expense $ 9,037 $ 8,136 $ 17,779 $ 16,399
Tax benefit (2,479) (2,134) (4,713) (4,315)
Restricted stock expense, net of tax $ 6,558 $ 6,002 $ 13,066 $ 12,084
Stock Options:
Pretax compensation expense $ 6,477 $ —$ 13,314 $ —
Tax benefit (1,881) — (3,901) —
Stock option expense, net of tax $ 4,596 $ —$ 9,413 $ —
Total Stock-Based Compensation:
Pretax compensation expense $ 15,514 $ 8,136 $ 31,093 $ 16,399
Tax benefit (4,360) (2,134) (8,614) (4,315)
Total restricted stock and stock options recorded as
expense, net of tax $ 11,154 $ 6,002 $ 22,479 $ 12,084
The following table summarizes the annual pretax impact of compensation cost related to equity awards granted through June 30,
2005:
(In thousands)
Stock-Based Compensation Programs
For the years ended December 31 Restricted Stock Stock Options Total
2005 $ 32,939 $ 25,640 $ 58,579
2006 12,570 9,473 22,043
2007 — 6,469 6,469
2008 — 4,218 4,218
$ 45,509 $ 45,800 $ 91,309
The following table summarizes information on unvested restricted stock and stock options outstanding as of June 30, 2005:
Six Months Ended
June 30
Weighted-Average Grant-
Number of Shares Date Fair Value
Unvested Restricted Stock
Unvested, January 1, 2005 612,482 $76.35
Forfeited (29,749) 75.94
Unvested, June 30, 2005 582,733 76.37
Unvested Options
Unvested, January 1, 2005 3,378,542 $21.98
Forfeited (22,739) 21.76
Unvested, June 30, 2005 3,355,803 21.99
7
8. The estimated fair value of the options granted during 2004 was calculated using a binomial option pricing model. Previous grants
were valued using the Black-Scholes option pricing model. The following summarizes the assumptions used in the 2004 binomial
model:
Risk-free interest rate 2.61 - 4.26%
Expected stock volatility 15.5 - 25.4%
Weighted average volatility 24.6%
Dividend yield 1.15%
Expected years until exercise 2.6 - 6.3
Lattice-based option valuation models, such as the binomial option pricing model, incorporate ranges of assumptions for inputs. The
risk-free rate of interest for periods within the contractual life of the option is based on a zero-coupon U.S. government instrument
over the contractual term of the equity instrument. Expected volatility is based on implied volatility from traded options on the
Company’s stock and historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise
timing and employee termination rates within the valuation model. Separate groups of employees that have similar historical exercise
behavior are considered separately for valuation purposes. The expected term of options granted is derived from the output of the
option valuation model and represents the period of time that options granted are expected to be outstanding. The ranges given above
result from separate groups of employees exhibiting different behavior.
The weighted-average grant-date fair value of options granted during 2004 was $21.99 per share. The aggregate intrinsic value of
options exercised during the six months ended June 30, 2005 and 2004 was $13,170,000 and $49,188,000, respectively. Aggregate
intrinsic value of options outstanding and options exercisable at June 30, 2005 was $144,367,000 and $166,803,000, respectively.
Exercise of options during the six months ended June 30, 2005 and 2004, resulted in cash receipts of $15,003,000 and $50,524,000,
respectively. For the quarter ended June 30, 2005, the weighted average remaining contractual term of options outstanding and options
exercisable was 6.09 years and 4.90 years, respectively.
(2) INVENTORIES:
Inventories at June 30, 2005 and December 31, 2004 were as follows:
(In thousands)
June 30, 2005 December 31, 2004
Raw material $ 372,506 $ 385,036
Work-in-process 131,727 118,052
Finished goods 770,305 778,068
$ 1,274,538 $ 1,281,156
(3) COMPREHENSIVE INCOME:
The Company’s only component of other comprehensive income in the periods presented is foreign currency translation adjustments.
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Net income $ 373,782 $ 360,350 $ 686,088 $ 650,546
Foreign currency translation adjustments, net of tax (210,593) (95,982) (198,851) 23,238
Total comprehensive income $ 163,189 $ 264,368 $ 487,237 $ 673,784
(4) GOODWILL AND INTANGIBLE ASSETS:
Goodwill represents the excess cost over fair value of the net assets of purchased businesses. The Company does not amortize
goodwill and intangible assets that have indefinite lives. In the first quarter of each year, the Company performs an annual
impairment assessment of goodwill and intangible assets with indefinite lives based on the fair value of the related reporting unit or
intangible asset.
8
9. As of December 31, 2004, the Company had assigned its recorded goodwill and intangible assets to approximately 340 of its 650
reporting units. When performing its annual impairment assessment, the Company compares the fair value of each reporting unit to its
carrying value. Fair values are determined by discounting estimated future cash flows at the Company’s estimated cost of capital of
10%. Estimated future cash flows are based either on current operating cash flows or on a detailed cash flow forecast prepared by the
relevant operating unit. If the fair value of an operating unit is less than its carrying value, an impairment loss is recorded for the
difference between the implied fair value of the unit’s goodwill and the carrying value of the goodwill.
Amortization and impairment of goodwill and other intangible assets for the periods ended June 30, 2005 and 2004 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Goodwill:
Impairment $ —$ — $ 6,206 $ 11,492
Intangible Assets:
Amortization 15,213 8,052 29,948 15,363
Impairment — — 5,049 10,220
Total $ 15,213 $ 8,052 $ 41,203 $ 37,075
In the first quarter of 2005, the Company performed its annual impairment testing of its goodwill and intangible assets, which resulted
in impairment charges of $11,255,000. The first quarter 2005 goodwill impairment charges of $6,206,000 were primarily related to a
Canadian stretch packaging equipment business and a U.S. welding components business, and resulted from lower estimated future
cash flows than previously expected. Also in the first quarter of 2005, intangible asset impairments of $5,049,000 were recorded to
reduce to estimated fair value the carrying value of trademarks, patents and customer-related intangible assets related to a U.S.
business that manufactures clean room mats in the Engineered Products – North America segment.
In the first quarter of 2004, the Company recorded goodwill impairment charges of $11,492,000, which were primarily related to a
European automotive components business and a U.S. electrical components business and resulted from lower estimated future cash
flows than previously expected. Also in the first quarter of 2004, intangible asset impairments of $10,220,000 were recorded to reduce
to estimated fair value the carrying value of trademarks and brands related primarily to several U.S. welding components businesses
and a U.S. industrial packaging business in the Specialty Systems – North America segment and a U.S. business that manufactures
clean room mats in the Engineered Products – North America segment.
(5) RETIREMENT PLANS AND POSTRETIREMENT BENEFITS:
Pension and other postretirement benefit costs for the periods ended June 30, 2005 and 2004 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
Other Postretirement Other Postretirement
Pension Benefits Pension Benefits
2005 2004 2005 2004 2005 2004 2005 2004
Components of net periodic
benefit cost:
Service cost $ 21,362 $ 19,569 $ 3,236 $ 3,368 $ 42,810 $ 39,133 $ 6,472 $ 6,789
Interest cost 21,517 20,573 7,574 8,667 43,087 41,210 15,147 17,228
Expected return on plan
assets (31,221) (29,458) (1,439) (867) (62,489) (58,960) (2,877) (1,733)
Amortization of actuarial
loss 2,256 1,246 312 1,398 4,584 2,500 623 2,827
Amortization of prior
service cost (income) (569) (576) 1,684 1,684 (1,138) (1,152) 3,368 3,368
Amortization of net
transition amount (3) (34) — — (6) (68) — —
Settlement/curtailment loss — — — — — 58 — —
Net periodic benefit cost $ 13,342 $ 11,320 $ 11,367 $ 14,250 $ 26,848 $ 22,721 $ 22,733 $ 28,479
9
10. The Company expects to contribute approximately $95,000,000 to its pension plans in 2005. As of June 30, 2005, contributions of
$29,218,000 have been made.
(6) SHORT-TERM DEBT:
In 2004, the Company entered into a $400,000,000 Line of Credit Agreement with a termination date of June 17, 2005. On March 7,
2005, the Company exercised a provision of the Line of Credit Agreement which provided for an increase in the aggregate
commitment by $200,000,000 to a total of $600,000,000. This line of credit was replaced on June 17, 2005, by a $600,000,000 Line of
Credit Agreement with a termination date of June 16, 2006.
The Company had outstanding commercial paper of $630,620,000 at June 30, 2005 and $134,982,000 at December 31, 2004.
(7) LONG-TERM DEBT:
On March 18, 2005, the Company issued $53,735,000 of 4.88% senior notes due December 31, 2020 at 100% of face value. The
effective interest rate of the senior debt is 4.96%.
In June 2003, the Company entered into a $350,000,000 revolving credit facility (“RCF”). This RCF was replaced on June 17, 2005
by a $350,000,000 RCF with a termination date of June 17, 2010.
(8) INCOME TAXES:
In October 2004, the American Jobs Creation Act of 2004 (“AJCA”) was enacted in the United States. One of the provisions of the
AJCA was to allow a special one-time dividends-received deduction of 85% on the repatriation of certain foreign earnings to U.S.
taxpayers, provided certain criteria regarding the sources and uses of the repatriated funds are met. In May 2005, the U.S. Treasury
Department and the Internal Revenue Service issued a notice that provides detailed tax guidance for U.S. companies that elect to
repatriate earnings from foreign subsidiaries subject to the temporary tax rate available under AJCA. The Company has not finalized
its 2005 repatriation plans related to the AJCA. The range of possible total 2005 repatriated amounts and the related tax effects are as
follows:
(In thousands) Minimum Maximum
Estimated repatriation $ 890,000 $ 1,500,000
Estimated U.S. tax cost of repatriation $ 25,000 $ 50,738
In 2004, the Company recorded a deferred tax liability of $25,000,000 to reflect the estimated tax cost of the minimum foreign
dividends expected to be repatriated under the AJCA in 2005. As of June 30, 2005, the Company has repatriated $360,000,000.
(9) COMMITMENTS AND CONTINGENCIES:
The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, including those
involving environmental, tax, product liability (including toxic tort) and general liability claims. The Company accrues for such
liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based
on developments to date, the Company’s estimates of the outcomes of these matters and its experience in contesting, litigating and
settling other similar matters. The Company believes resolution of these matters, individually and in the aggregate, will not have a
material adverse effect on the Company’s financial position, liquidity or future operations.
Among the toxic tort cases in which the Company is a defendant, the Company as well as its subsidiaries Hobart Brothers Company
and Miller Electric Mfg. Co., have been named, along with numerous other defendants, in lawsuits alleging injury from exposure to
welding rod fumes. The plaintiffs in these suits claim unspecified damages for injuries resulting from the plaintiffs’ alleged exposure
to asbestos, manganese and/or toxic fumes in connection with the welding process. Based upon the Company’s experience in
defending these claims, the Company believes that the resolution of these proceedings will not have a material adverse effect on the
Company’s financial position, liquidity or future operations. The Company has not recorded any significant reserves related to these
cases.
10
11. Wilsonart International, Inc. (“Wilsonart”), a wholly owned subsidiary of ITW, is a defendant in a consolidated class action lawsuit
filed in 2000 in federal district court in White Plains, New York on behalf of purchasers of high-pressure laminate. The complaint
alleges that Wilsonart participated in a conspiracy with competitors to fix, raise, maintain or stabilize prices for high-pressure laminate
between 1994 and 2000 and seeks injunctive relief and treble damages. Indirect purchasers of high-pressure laminate filed similar
purported class action cases under various state antitrust and consumer protection statutes in 13 states and the District of Columbia, all
of which cases have been stayed pending the outcome of the consolidated class action. These lawsuits were brought following the
commencement of a federal grand jury investigation into price-fixing in the high-pressure laminate industry, which investigation was
subsequently closed by the Department of Justice with no further proceedings and with all documents being returned to the parties.
Plaintiffs are seeking damages of $470,000,000 before trebling. Without admitting liability, Wilsonart’s co-defendants, International
Paper Company and Panolam International, Inc. have settled the federal consolidated class action case for $31,000,000 and
$9,500,000, respectively. The plaintiffs’ claims against Formica Corporation, the remaining co-defendant in the case, were dismissed
with prejudice on September 27, 2004 as a result of its bankruptcy proceedings. As a result, Wilsonart is the sole remaining defendant
in the consolidated class action lawsuit. While no assurances can be given regarding the ultimate outcome or the timing of the
resolution of these claims, the Company believes that the plaintiffs’ claims are without merit and intends to continue to defend itself
vigorously in this action and all related actions that are now pending or that may be brought in the future. The Company has not
recorded any reserves related to this case.
(10) SEGMENT INFORMATION:
See Management’s Discussion and Analysis for information regarding operating revenues and operating income for the Company’s
segments.
11
12. Item 2 - Management’s Discussion and Analysis
CONSOLIDATED RESULTS OF OPERATIONS
The Company’s consolidated results of operations for the second quarter and year-to-date periods of 2005 and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating revenues $3,295,644 $3,002,271 $6,369,935 $5,712,620
Operating income 566,854 561,536 1,044,743 1,009,178
Margin % 17.2% 18.7% 16.4% 17.7%
In the second quarter and year-to-date periods of 2005, the changes in revenues, operating income and operating margins over the
prior year were primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point % Point
Increase Increase
% Increase (Decrease) (Decrease) % Increase (Decrease) (Decrease)
Operating Operating Operating Operating Operating Operating
Revenues Income Margins Revenues Income Margins
Base manufacturing business:
Revenue change/Operating leverage 4.0% 8.6% 0.8% 5.0 % 11.5% 1.1%
Changes in variable margins and
overhead costs — (3.8) (0.7) — (7.3) (1.3)
Total 4.0 4.8 0.1 5.0 4.2 (0.2)
Restructuring costs — (1.7) (0.3) — (0.8) (0.1)
Impairment of goodwill and intangibles — — — — 1.0 0.2
Acquisitions and divestitures 4.4 2.8 (0.3) 5.3 2.6 (0.4)
Translation 2.9 2.6 — 2.6 2.3 —
Leasing and Investments (1.4) (7.6) (1.0) (1.0 ) (5.8) (0.8)
Intercompany (0.1) — — (0.4 ) — —
Total 9.8% 0.9% (1.5)% 11.5 % 3.5% (1.3)%
Despite slowing industrial production levels in North America in the first and second quarter of 2005 from the levels of late 2004, the
base business revenue increase in the second quarter and year-to-date 2005 was primarily related to a 6% revenue increase in North
America for both periods. The majority of the base revenue increase was the result of price increases implemented to offset raw
material cost increases. Internationally, base business revenues increased 1% in the second quarter and 3% year-to-date even as
industrial production in the major European economies slowed in the first and second quarters of 2005 over fourth quarter 2004
production levels.
Operating income for the second quarter of 2005 and year-to-date period improved primarily due to leverage from the growth in base
business revenue, income from acquired companies and favorable currency translation. These increases were partially offset in both
periods by variable margin declines primarily due to raw material cost increases. Leasing and Investments income decreased in the
second quarter and year-to-date due to higher income realized last year from both gains on sales in the commercial mortgage portfolio
and favorable mark-to-market adjustments on venture capital investments. In addition, operating income in the second quarter and
year-to-date periods was negatively impacted by pretax charges to expense stock options of $6.5 million and $13.3 million,
respectively. A first quarter 2005 charge of $8.7 million to resolve accounting issues at a European food equipment business
negatively impacted income in the year-to-date period.
As a result of the Company’s annual impairment testing of its goodwill and intangible assets, impairment charges of $11.3 million
were incurred in the first quarter of 2005. The impaired assets reflected diminished expectations of future cash flows and primarily
related to a Canadian stretch packaging equipment business, a U.S. welding components business and a U.S. business that
manufactures clean room mats.
12
13. ENGINEERED PRODUCTS - NORTH AMERICA
Businesses in this segment are located in North America and manufacture a variety of short lead-time plastic and metal components
and fasteners, as well as specialty products for a diverse customer base. These commercially oriented, value-added products become
part of the customers’ products and typically are manufactured and delivered in a time period of less than 30 days.
In the plastic and metal components and fasteners category, products include:
• metal fasteners, fastening tools, and metal plate connecting components for the commercial and residential construction
industries;
• laminate products for the commercial and residential construction industries and furniture markets;
• specialty laminate film used in the construction market;
• metal fasteners for automotive, appliance and general industrial applications;
• metal components for automotive, appliance and general industrial applications;
• plastic components for automotive, appliance, furniture and electronics applications; and
• plastic fasteners for automotive, appliance and electronics applications.
In the specialty products category, products include:
• reclosable packaging for consumer food applications;
• swabs, wipes and mats for clean room usage in the electronics and pharmaceutical industries;
• hand wipes and cleaners for industrial purposes;
• chemical fluids which clean or add lubrication to machines and automobiles;
• adhesives for industrial, construction and consumer purposes;
• epoxy and resin-based coating products for industrial applications;
• components for industrial machines;
• manual and power operated chucking equipment for industrial applications; and
• automotive maintenance and appearance products.
This segment primarily serves the construction, automotive and general industrial markets.
The results of operations for the Engineered Products – North America segment for the second quarter and year-to-date periods of
2005 and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating revenues $971,724 $862,013 $1,890,009 $1,674,806
Operating income 176,960 154,631 321,334 292,849
Margin % 18.2% 17.9% 17.0% 17.5%
13
14. In the second quarter of 2005 and year-to-date periods, the changes in revenues, operating income and operating margins over the
prior year are primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point % Point
Increase Increase
% Increase (Decrease) (Decrease) % Increase (Decrease) (Decrease)
Operating Operating Operating Operating Operating Operating
Revenues Income Margins Revenues Income Margins
Base manufacturing business:
Revenue change/Operating leverage 2.9% 6.7% 0.7% 3.1% 7.2% 0.7%
Changes in variable margins and
overhead costs — 4.9 0.9 — (1.8) (0.3)
Total 2.9 11.6 1.6 3.1 5.4 0.4
Restructuring costs — (3.8) (0.7) — (2.0) (0.4)
Impairment of goodwill and intangibles — — — — 0.7 0.1
Acquisitions and divestitures 9.5 6.4 (0.6) 9.5 5.5 (0.6)
Translation 0.3 0.2 — 0.2 0.1 —
Total 12.7% 14.4% 0.3% 12.8% 9.7% (0.5)%
Revenues increased in the second quarter and year-to-date periods primarily due to revenues from acquisitions and higher base
business revenues. Construction base revenues increased 2% and 3% for the second quarter and year-to-date periods, respectively,
primarily as a result of growth in the residential, remodeling/rehab and commercial construction markets. Automotive base revenues
decreased by only 1% for both the second quarter and year-to-date periods despite a 9% and 6% decline in automotive production at
the large North American automotive manufacturers in the first and second quarters of 2005, respectively, as increased product
penetration partially offset lower production levels. Base revenues from the other industrial-based businesses in this segment grew 7%
for both the second quarter and year-to-date period as a result of increased demand in a broad array of end markets. The incremental
acquisition revenue is primarily related to the acquisitions of a construction business in the second quarter of 2004, an automotive
components business in the third quarter of 2004, one engineered polymers businesses in the fourth quarter of 2004 and another
engineered polymers business in the first quarter of 2005.
Operating income increased for the second quarter and year-to-date periods of 2005 primarily due to increased acquisition income and
leverage from the growth in base business revenues described above. This increase was partially offset by variable margin declines of
0.5% and 1.2% in the second quarter and year-to-date period, respectively, primarily due to raw material cost increases without a full
recovery of margins through price increases, primarily in the automotive business units. In addition, base business income was higher
year-to-date due to lower goodwill and intangible asset impairment charges over the prior year. In the first quarter of 2005, an
intangible asset impairment charge of $5.1 million was recorded related to the intangibles of a U.S. manufacturer of clean room mats.
Additionally, income increased over the prior year due to a $10.0 million charge in the second quarter of 2004 associated with a
warranty issue related to a discontinued product at the Wilsonart laminate business.
ENGINEERED PRODUCTS - INTERNATIONAL
Businesses in this segment are located outside North America and manufacture a variety of short lead-time plastic and metal
components and fasteners, as well as specialty products for a diverse customer base. These commercially oriented, value-added
products become part of the customers’ products and typically are manufactured and delivered in a time period of less than 30 days.
In the plastic and metal components and fasteners category, products include:
• metal fasteners, fastening tools, and metal plate connecting components for the commercial and residential construction
industries;
• laminate products for the commercial and residential construction industries and furniture markets;
• specialty laminate film used in the construction market;
• metal fasteners for automotive, appliance and general industrial applications;
• metal components for automotive, appliance and general industrial applications;
• plastic components for automotive, appliance and electronics applications; and
• plastic fasteners for automotive, appliance and electronics applications.
14
15. In the specialty products category, products include:
• electronic component packaging trays used for the storage, shipment and manufacturing insertion of electronic components
and microchips;
• swabs, wipes and mats for clean room usage in the electronics and pharmaceutical industries;
• adhesives for industrial, construction and consumer purposes;
• chemical fluids which clean or add lubrication to machines and automobiles;
• epoxy and resin-based coating products for industrial applications; and
• manual and power operated chucking equipment for industrial applications.
This segment primarily serves the construction, automotive and general industrial markets.
The results of operations for the Engineered Products – International segment for the second quarter and year-to-date periods of 2005
and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating revenues $708,922 $652,797 $1,354,616 $1,176,372
Operating income 101,829 102,122 186,040 166,540
Margin % 14.4% 15.6% 13.7% 14.2%
In the second quarter and year-to-date periods of 2005, the changes in revenues, operating income and operating margins over the
prior year were primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point % Point
Increase Increase
% Increase (Decrease) (Decrease) % Increase (Decrease) (Decrease)
Operating Operating Operating Operating Operating Operating
Revenues Income Margins Revenues Income Margins
Base manufacturing business:
Revenue change/Operating leverage (1.8)% (4.7)% (0.4)% 0.3% 0.9% 0.1%
Changes in variable margins and
overhead costs — (4.9) (0.8) — (6.2) (0.9)
Total (1.8) (9.6) (1.2) 0.3 (5.3) (0.8)
Restructuring costs — (2.0) (0.3) — (0.5) (0.1)
Impairment of goodwill and intangibles — — — — 5.1 0.7
Acquisitions and divestitures 4.0 4.0 0.1 8.9 5.3 (0.5)
Translation 6.4 7.3 0.2 6.0 7.1 0.2
Total 8.6% (0.3)% (1.2)% 15.2% 11.7% (0.5)%
Revenues increased in the second quarter and year-to-date periods of 2005 due to higher revenues from acquisitions and the favorable
effect of currency translation, primarily as a result of the Euro strengthening versus the U.S. dollar. The acquisition revenue increase is
primarily due to the acquisitions of two European fluid products businesses in the second quarter of 2004, and one European polymers
business in the first quarter of 2004 and one at the end of the fourth quarter of 2004. Base business construction revenues were flat in
the second quarter and increased 4% year-to-date as the European and Australasian markets weakened in the second quarter of 2005.
Increased demand at the Wilsonart high pressure laminate businesses partially offset this decline in the second quarter. In addition,
automotive base revenues declined 4% in both the second quarter and year-to-date periods, primarily due to product mix issues and
declines in automotive production at some European automotive manufacturers. The other businesses in this segment serve a broad
array of industrial and commercial end markets and base revenues from these businesses decreased 3% and 1% for the second quarter
and year-to-date periods of 2005, respectively.
15
16. Operating income for the second quarter of 2005 decreased primarily due to lower base business revenues, described above, higher
operating costs and restructuring expenses, offset by the favorable effect of currency translation and revenues of acquisitions. Year-to-
date income increased primarily due to favorable currency translation, acquisition revenue, and lower impairment expenses, offset by
higher operating costs.
SPECIALTY SYSTEMS - NORTH AMERICA
Businesses in this segment are located in North America and design and manufacture longer lead-time machinery and related
consumables, as well as specialty equipment for a diverse customer base. These commercially oriented, value-added products become
part of the customers’ process and typically are manufactured and delivered in a time period of more than 30 days.
In the machinery and related consumables category, products include:
• industrial packaging equipment and plastic and steel strapping for the bundling and shipment of a variety of products for
customers in numerous end markets;
• welding equipment and metal consumables for a variety of end market users;
• equipment and plastic consumables that multi-pack cans and bottles for the food and beverage industry;
• plastic stretch film and related packaging equipment for various industrial purposes;
• paper and plastic products used to protect shipments of goods in transit;
• marking tools and inks for various end users; and
• foil and film and related equipment used to decorate a variety of consumer products.
In the specialty equipment category, products include:
• commercial food equipment such as dishwashers, refrigerators, mixers, ovens, food slicers and specialty scales for use by
restaurants, institutions and supermarkets;
• paint spray equipment for a variety of general industrial applications;
• static control equipment for electronics and industrial applications;
• wheel balancing and tire uniformity equipment used in the automotive industry; and
• airport ground power generators for commercial and military applications.
This segment primarily serves the food institutional and retail, general industrial, construction, and food and beverage markets.
The results of operations for the Specialty Systems – North America segment for the second quarter and year-to-date periods of 2005
and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating revenues $1,037,717 $949,764 $2,043,638 $1,859,048
Operating income 188,906 172,769 365,519 323,417
Margin % 18.2% 18.2% 17.9% 17.4%
16
17. In the second quarter and year-to-date periods of 2005, the changes in revenues, operating income and operating margins over the
prior year were primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point % Point
Increase Increase
% Increase (Decrease) % Increase (Decrease)
(Decrease) (Decrease)
Operating Operating Operating Operating Operating Operating
Revenues Income Margins Revenues Income Margins
Base manufacturing business:
Revenue change/Operating leverage 8.1% 18.3% 1.7% 8.9% 21.2% 2.0%
Changes in variable margins and
overhead costs — (8.9) (1.5) — (9.8) (1.6)
Total 8.1 9.4 0.2 8.9 11.4 0.4
Restructuring costs — (1.3) (0.2) — 0.6 0.1
Impairment of goodwill and intangibles — — — — (0.1) —
Acquisitions and divestitures 0.6 0.5 — 0.5 0.5 —
Translation 0.6 0.7 — 0.5 0.6 —
Total 9.3% 9.3% 0.0% 9.9% 13.0% 0.5%
Base business revenue growth in the second quarter and year-to-date periods of 2005 is primarily due to an increase in demand for
machinery and consumables in most of the end markets that this segment serves. Welding base revenues increased 17% and 18% in
the second quarter and year-to-date periods of 2005, respectively, and industrial packaging base revenues grew 3% in both periods.
Food equipment base revenues increased 6% and 7% in the second quarter and year-to-date periods, respectively, resulting from
increased demand from restaurant and institutional customers as well as increased parts and service revenue. Base revenues in the
other businesses in this segment increased 10% and 11% in the second quarter and year-to-date periods, respectively.
Operating income increased in the second quarter and year-to-date periods of 2005 primarily due to leverage from the base business
revenue increases described above. Variable margins declined 1.7% and 1.6% in the second quarter and year-to-date periods,
respectively, primarily due to raw material cost increases. Additionally, second quarter income was adversely impacted due to higher
restructuring expenses related to a finishing business and two packaging businesses, as well as a second quarter 2004 reversal of
excess reserves of an industrial packaging business.
SPECIALTY SYSTEMS - INTERNATIONAL
Businesses in this segment are located outside North America and design and manufacture longer lead-time machinery and related
consumables, as well as specialty equipment for a diverse customer base. These commercially oriented, value-added products become
part of the customers’ processes and typically are manufactured and delivered in a time period of more than 30 days.
In the machinery and related consumables category, products include:
• industrial packaging equipment and plastic and steel strapping for the bundling and shipment of a variety of products for
customers in numerous end markets;
• welding equipment and metal consumables for a variety of end market users;
• equipment and plastic consumables that multi-pack cans and bottles for the food and beverage industry;
• plastic bottle sleeves and related equipment for the food and beverage industry;
• plastic stretch film and related packaging equipment for various industrial purposes;
• paper and plastic products used to protect shipments of goods in transit; and
• foil and film and related equipment used to decorate a variety of consumer products.
In the specialty equipment category, products include:
• commercial food equipment such as dishwashers, refrigerators, mixers, ovens, food slicers and specialty scales for use by
restaurants, institutions and supermarkets;
• paint spray equipment for a variety of general industrial applications;
• static control equipment for electronics and industrial applications; and
• airport ground power generators for commercial applications.
This segment primarily serves the general industrial, food institutional and retail, and food and beverage markets.
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18. The results of operations for the Specialty Systems – International segment for the second quarter and year-to-date periods of 2005
and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating revenues $677,619 $591,210 $1,270,381 $1,111,453
Operating income 92,832 83,270 146,766 142,872
Margin % 13.7% 14.1% 11.6% 12.9%
In the second quarter and year-to-date periods of 2005, the changes in revenues, operating income and operating margins over the
prior year are primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point % Point
Increase Increase
% Increase (Decrease) % Increase (Decrease)
(Decrease) (Decrease)
Operating Operating Operating Operating Operating Operating
Revenues Income Margins Revenues Income Margins
Base manufacturing business:
Revenue change/Operating leverage 4.9% 13.7% 1.2% 5.8% 17.8% 1.5%
Changes in variable margins and
overhead costs — (10.5) (1.4) — (19.0) (2.3)
Total 4.9 3.2 (0.2) 5.8 (1.2) (0.8)
Restructuring costs — 0.3 — — (2.5) (0.3)
Impairment of goodwill and intangibles — — — — 0.2 —
Acquisitions and divestitures 3.3 1.3 (0.3) 2.6 (0.4) (0.3)
Translation 6.4 6.7 0.1 5.9 6.6 0.1
Total 14.6% 11.5% (0.4)% 14.3% 2.7% (1.3)%
Revenues increased in the second quarter and year-to-date periods of 2005 mainly due to base business revenue growth and favorable
currency translation, primarily as a result of the Euro strengthening versus the U.S. dollar. Food equipment base revenues increased
2% and 5% in the second quarter and year-to-date periods, respectively, while industrial packaging base revenues increased 8% for
both periods. Other base business revenues, including the welding and finishing businesses, increased 2% in both the second quarter
and year-to-date periods of 2005.
Operating income increased in the second quarter and year-to-date periods of 2005 primarily as a result of the revenue increases
described above, as well as favorable currency translation. Variable margin declines, due to raw material cost increases, of 0.7% and
1.0% in the second quarter and year-to-date periods, respectively, offset these increases. In addition, year-to-date operating income
decreased due to a first quarter of 2005 adjustment of $8.7 million to resolve accounting issues at a European food equipment
business.
LEASING AND INVESTMENTS
Businesses in this segment make investments in mortgage entities, leases of telecommunications, aircraft, air traffic control and other
equipment, properties, affordable housing and a venture capital fund. As a result of the Company’s strong cash flow, the Company has
historically had excess funds to make opportunistic investments that meet the Company’s desired returns. In connection with some of
these investment transactions, the Company may be contractually required to make future cash payments related to affordable housing
contributions, venture fund capital contributions or the redemption of preferred stock of subsidiaries. See the Company’s Annual
Report to Stockholders for further information regarding these contractual obligations as of December 31, 2004.
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19. The results of operations for the Leasing and Investments segment for the second quarter and year-to-date periods of 2005 and 2004
were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating revenues $9,722 $53,248 $32,298 $91,904
Operating income 6,327 48,744 25,084 83,501
Operating income (loss) by investment for the second quarter and year-to-date periods of 2005 and 2004 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Mortgage investments $ 3,320 $ 26,756 $ 11,637 $ 53,838
Leases of equipment 2,667 5,757 5,245 11,392
Property developments 2,128 1,096 3,985 1,819
Properties held for sale (639) 4,098 (893) 2,844
Venture capital limited partnership (3,967) 10,316 (509) 11,546
Other 2,818 721 5,619 2,062
$ 6,327 $ 48,744 $ 25,084 $ 83,501
In the second quarter of 2005, operating income was lower primarily due to losses of $4.7 million on commercial mortgage properties
versus gains of $19.9 million on the sale of two commercial mortgage properties in 2004. In the second quarter of 2005, the Company
recorded losses on a venture capital limited partnership primarily due to unfavorable mark-to-market adjustments of $5.3 million
versus gains related to favorable mark-to-market adjustments of $7.8 million in 2004.
For the year-to-date period, operating income was lower primarily due to losses on commercial mortgage properties of $1.0 million in
2005 versus gains of $39.6 million in 2004. Additionally, in the year-to-date 2005 period, the Company recorded losses on a venture
capital limited partnership as a result of unfavorable mark-to-market adjustments in 2005 versus gains related to favorable mark-to-
market adjustments in 2004.
OPERATING REVENUES
The reconciliation of segment operating revenues to total operating revenues is as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Engineered Products - North America $ 971,724 $ 862,013 $ 1,890,009 $ 1,674,806
Engineered Products – International 708,922 652,797 1,354,616 1,176,372
Specialty Systems - North America 1,037,717 949,764 2,043,638 1,859,048
Specialty Systems – International 677,619 591,210 1,270,381 1,111,453
Intersegment revenues (110,060) (106,761) (221,007) (200,963)
Total manufacturing operating revenues 3,285,922 2,949,023 6,337,637 5,620,716
Leasing and Investments 9,722 53,248 32,298 91,904
Total operating revenues $ 3,295,644 $ 3,002,271 $ 6,369,935 $ 5,712,620
AMORTIZATION OF GOODWILL AND OTHER INTANGIBLE ASSETS
The Company does not amortize goodwill and intangible assets that have indefinite lives. In the first quarter of each year, the
Company performs an annual impairment assessment of goodwill and intangible assets with indefinite lives based on the fair value of
the related reporting unit or intangible asset.
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20. As of December 31, 2004, the Company had assigned its recorded goodwill and intangible assets to approximately 340 of its 650
reporting units. When performing its annual impairment assessment, the Company compares the fair value of each reporting unit to its
carrying value. Fair values are determined by discounting estimated future cash flows at the Company’s estimated cost of capital of
10%. Estimated future cash flows are based either on current operating cash flows or on a detailed cash flow forecast prepared by the
relevant operating unit. If the fair value of an operating unit is less than its carrying value, an impairment loss is recorded for the
difference between the implied fair value of the unit’s goodwill and the carrying value of the goodwill.
Amortization and impairment of goodwill and other intangible assets for the periods ended June 30, 2005 and 2004 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Goodwill:
Impairment $ —$ — $ 6,206 $ 11,492
Intangible Assets:
Amortization 15,213 8,052 29,948 15,363
Impairment — — 5,049 10,220
Total $ 15,213 $ 8,052 $ 41,203 $ 37,075
In the first quarter of 2005, the Company performed its annual impairment testing of its goodwill and intangible assets, which resulted
in impairment charges of $11.3 million. The first quarter 2005 goodwill impairment charges of $6.2 million were primarily related to a
Canadian stretch packaging equipment business and a U.S. welding components business and resulted from lower estimated future
cash flows than previously expected. Also in the first quarter of 2005, intangible asset impairments of $5.1 million were recorded to
reduce to estimated fair value the carrying value of trademarks, patents and customer-related intangible assets related to a U.S.
business that manufactures clean room mats in the Engineered Products – North America segment.
In the first quarter of 2004, the Company recorded goodwill impairment charges of $11.5 million, which were primarily related to a
European automotive components business and a U.S. electrical components business and resulted from lower estimated future cash
flows than previously expected. Also in the first quarter of 2004, intangible asset impairments of $10.2 million were recorded to
reduce to estimated fair value the carrying value of trademarks and brands related primarily to several U.S. welding components
businesses and a U.S. industrial packaging business in the Specialty Systems – North America segment and a U.S. business that
manufactures clean room mats in the Engineered Products – North America segment.
INTEREST EXPENSE
Interest expense increased to $46.1 million in the first six months of 2005 from $34.9 million in 2004 primarily due to interest expense
related to the issuance of commercial paper in the fourth quarter of 2004 and the first two quarters of 2005 and higher interest expense
due to increased discounts on forward currency contracts.
OTHER INCOME
Other income decreased to $10.3 million for the first six months of 2005 from $11.2 million in 2004, primarily due to lower interest
income in 2005 versus 2004, partially offset by lower minority interest expense in 2005.
INCOME FROM CONTINUING OPERATIONS
Income from continuing operations of $686.1 million ($2.35 per diluted share) in the first six months of 2005 was 5.5% higher than
the 2004 income from continuing operations of $650.4 million ($2.09 per diluted share).
FOREIGN CURRENCY
The weakening of the U.S. dollar against foreign currencies in the first six months of 2005 increased operating revenues for the first
six months of 2005 by approximately $150 million and increased earnings by approximately 6 cents per diluted share.
NEW ACCOUNTING PRONOUNCEMENTS
Effective January 1, 2005, the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based
Payment. See the Stock-Based Compensation footnote for further details of the effect of the adoption of this pronouncement.
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21. LIQUIDITY AND CAPITAL RESOURCES
Cash Flow
The Company’s primary source of liquidity is free operating cash flow. Management continues to believe that such internally
generated cash flow will be adequate to service existing debt and to continue to pay dividends that meet its dividend payout objective
of 25-30% of the last three years’ average net income. In addition, free operating cash flow is expected to be adequate to finance
internal growth, small-to-medium sized acquisitions and additional investments. The Company expects to repatriate at least $890
million in foreign dividends in 2005 to reduce commercial paper borrowings. As of June 30, 2004, the Company has repatriated $360
million.
The Company uses free operating cash flow to measure normal cash flow generated by its operations that is available for dividends,
acquisitions, debt repayment and additional investments. Free operating 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.
On April 19, 2004 the Company’s Board of Directors authorized a stock repurchase program, which provides for the buy back of up to
31 million shares. In the second quarter of 2005, the Company repurchased 4,495,522 shares of its common stock at an average price
of $85.19 per share. Since the inception of the program, the Company has repurchased 25,472,195 shares of its common stock for $2.3
billion at an average price of $90.39 per share.
Summarized cash flow information for the second quarter and year-to-date periods of 2005 and 2004 was as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Net cash provided by operating activities $ 498,324 $ 376,818 $ 801,275 $ 696,518
Proceeds from investments 12,246 19,640 27,638 38,452
Additions to plant and equipment (80,681) (69,259) (144,709) (129,772)
Free operating cash flow $ 429,889 $ 327,199 $ 684,204 $ 605,198
Acquisitions $ (11,790) $ (193,105) $ (200,144) $ (376,799)
Cash dividends paid (81,146) (74,028) (162,799) (147,976)
Purchase of investments (2,575) (14,049) (73,244) (28,694)
Repurchases of common stock (382,954) (259,110) (572,686) (259,110)
Net proceeds (repayments) of debt (87,379) 5,157 543,373 (11,546)
Other (58,307) 16,086 (27,415) 71,652
Net increase in cash and equivalents $ (194,262) $ (191,850) $ 191,289 $ (147,275)
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22. Return on Invested Capital
The Company uses return on average invested capital (“ROIC”) to measure the effectiveness of the operations’ use of invested capital
to generate profits. ROIC for the second quarter and year-to-date periods of 2005 and 2004 was as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2005 2004 2005 2004
Operating income after taxes $ 387,728 $ 370,614 $ 710,425 $ 666,057
Total debt $ 1,663,996 $ 983,472 $ 1,663,996 $ 983,472
Less: Leasing and investment debt (115,981) (143,573) (115,981) (143,573)
Less: Cash and equivalents (858,679) (1,537,208) (858,679) (1,537,208)
Adjusted net debt 689,336 (697,309) 689,336 (697,309)
Total stockholders’ equity 7,427,201 8,210,153 7,427,201 8,210,153
Invested capital $ 8,116,537 $ 7,512,844 $ 8,116,537 $ 7,512,844
Average invested capital $ 8,197,711 $ 7,399,150 $ 8,133,757 $ 7,255,204
Annualized return on average invested capital 18.9% 20.0% 17.5% 18.4%
The 110 basis point decrease in ROIC in the second quarter of 2005 was due primarily to higher invested capital from acquisitions and
decreased operating income from Leasing and Investments. The negative impact of the above factors was partially offset by increased
base business operating income and a decrease in the effective tax rate of 31.6% in the second quarter of 2005 from 34.0% in the
second quarter of 2004.
The 90 basis point decrease in ROIC for year-to-date 2005 was due primarily to higher invested capital from acquisitions and
decreased operating income from Leasing and Investments. The negative impact of the above factors was partially offset by increased
base business operating income and a decrease in the effective tax rate of 32.0% in the first half of 2005 from 34.0% in the first half of
2004.
Working Capital
Net working capital at June 30, 2005 and December 31, 2004 is summarized as follows:
(Dollars in thousands)
June 30, 2005 December 31, 2004 Increase/(Decrease)
Current Assets:
Cash and equivalents $ 858,679 $ 667,390 $ 191,289
Trade receivables 2,134,215 2,054,624 79,591
Inventories 1,274,538 1,281,156 (6,618)
Other 299,684 319,028 (19,344)
4,567,116 4,322,198 244,918
Current Liabilities:
Short-term debt 696,788 203,523 493,265
Accounts payable and accrued expenses 1,502,472 1,563,191 (60,719)
Other 81,122 84,257 (3,135)
2,280,382 1,850,971 429,411
Net Working Capital $ 2,286,734 $ 2,471,227 $ (184,493)
Current Ratio 2.00 2.34
Cash and equivalents increased at the Company’s international businesses as a result of cash flows from operating activities. The
increase in domestic short-term debt is primarily due to the issuance of commercial paper to fund the stock repurchase program,
acquisitions and dividends.
In May 2005, the U.S. Treasury Department and the Internal Revenue Service issued a notice that provides detailed tax guidance for
22
23. U.S. companies that elect to repatriate earnings from foreign subsidiaries subject to the temporary tax rate available under the
American Jobs Creation Act of 2004. The Company expects to repatriate at least $890 million in foreign dividends by the end of 2005.
As of June 30, 2005, the Company has repatriated $360 million.
Debt
Total debt at June 30, 2005 and December 31, 2004 was as follows:
(Dollars in thousands)
June 30, 2005 December 31, 2004
Short-term debt $ 696,788 $ 203,523
Long-term debt 967,208 921,098
Total debt $ 1,663,996 $ 1,124,621
Total debt to capitalization 18.3% 12.8%
In 2004, the Company entered into a $400.0 million Line of Credit Agreement with a termination date of June 17, 2005. On March 7,
2005, the Company exercised a provision of the Line of Credit Agreement which provided for an increase in the aggregate
commitment by $200.0 million to a total of $600.0 million. This line of credit was replaced on June 17, 2005, by a $600.0 million Line
of Credit Agreement with a termination date of June 16, 2006. This debt capacity is for use principally to support any issuances of
commercial paper and to fund larger acquisitions.
The Company had outstanding commercial paper of $630.6 million at June 30, 2005 and $135.0 million at December 31, 2004.
On March 18, 2005, the Company issued $53.7 million of 4.88% senior notes due December 31, 2020 at 100% of face value. The
effective interest rate of the senior debt is 4.96%.
In June 2003, the Company entered into a $350.0 million revolving credit facility (“RCF”). This RCF was replaced on June 17, 2005,
by a $350.0 million RCF with a termination date of June 17, 2010.
Stockholders’ Equity
The changes to stockholders’ equity during 2005 were as follows:
(In thousands)
Total stockholders’ equity, December 31, 2004 $ 7,627,610
Net income 686,088
Cash dividends declared (161,056)
Repurchase of common stock (572,686)
Stock option and restricted stock activity 46,096
Currency translation adjustments (198,851)
Total stockholders’ equity, June 30, 2005 $ 7,427,201
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24. FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,
including, without limitation, statements regarding 2005 contributions to the Company’s pension plans, the adequacy of internally
generated funds, the meeting of dividend payout objectives, the repurchase of the Company’s common stock, the outcome of
outstanding legal proceedings, the amount, if any, of foreign dividends repatriated in 2005, and the impact of compensation costs
related to stock-based compensation arrangements. These statements are subject to certain risks, uncertainties, and other factors, which
could cause actual results to differ materially from those anticipated. Important risks that may influence future results include (1) a
downturn in the construction, automotive, general industrial, food retail and service, or real estate markets, (2) deterioration in global
and domestic business and economic conditions, particularly in North America, the European Community or Australia, (3) the
unfavorable impact of foreign currency fluctuations and costs of raw materials, (4) an interruption in, or reduction in, introducing new
products into the Company’s product lines, (5) an unfavorable environment for making acquisitions, domestic and international,
including adverse accounting or regulatory requirements and market values of candidates, and (6) unfavorable tax law changes and tax
authority rulings. The risks covered here are not all inclusive and given these and other possible risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a prediction of actual results.
ITW practices fair disclosure for all interested parties. Investors should be aware that while ITW regularly communicates with
securities analysts and other investment professionals, it is against ITW’s policy to disclose to them any material non-public
information or other confidential commercial information. Shareholders should not assume that ITW agrees with any statement or
report issued by any analyst irrespective of the content of the statement or report.
Item 4 – Controls and Procedures
The Company’s management, with the participation of the Company’s Chairman & Chief Executive Officer and Senior Vice President
& Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in
Exchange Act Rule 13a–15(e)) as of June 30, 2005. Based on such evaluation, the Company’s Chairman & Chief Executive Officer
and Senior Vice President & Chief Financial Officer have concluded that, as of June 30, 2005, the Company’s disclosure controls and
procedures were effective in timely alerting the Company’s management to all information required to be included in this Form 10-Q
and other Exchange Act filings.
In connection with the evaluation by management, including the Company’s Chairman & Chief Executive Officer and Senior Vice
President & Chief Financial Officer, no changes in the Company’s internal control over financial reporting (as defined in Exchange
Act Rule 13a-15(f)) during the quarter ended June 30, 2005 were identified that have materially affected or are reasonably likely to
materially affect the Company’s internal control over financial reporting.
24