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, 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 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, 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.
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.
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 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 from Chubb Corporation reports modifications to the presentation of losses incurred in property and casualty underwriting results for the six months ended June 30, 2008 and 2007. Specifically, it notes that beginning in Q3 2008, foreign currency fluctuations will be reflected differently in "net losses paid" and "increase (decrease) in outstanding losses", though incurred losses remain unchanged. It provides definitions of key terms like underwriting income/loss and combined loss/expense ratio used to evaluate underwriting performance. The document then presents detailed underwriting results by line of business and geographic region.
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 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, 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.
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.
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 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 from Chubb Corporation reports modifications to the presentation of losses incurred in property and casualty underwriting results for the six months ended June 30, 2008 and 2007. Specifically, it notes that beginning in Q3 2008, foreign currency fluctuations will be reflected differently in "net losses paid" and "increase (decrease) in outstanding losses", though incurred losses remain unchanged. It provides definitions of key terms like underwriting income/loss and combined loss/expense ratio used to evaluate underwriting performance. The document then presents detailed underwriting results by line of business and geographic region.
This document provides State Street Corporation's 2002 financial review, including selected financial data and management's discussion and analysis. Key points:
1) Net income was $1.015 billion, up $387 million from 2001, driven largely by a $495 million gain from selling the corporate trust business. Adjusting for non-operating items, net income rose $32 million.
2) Earnings per share were $3.10, up from $1.90 in 2001. Excluding non-operating items, EPS rose from $2.08 to $2.20.
3) Total revenue increased $569 million to $4.396 billion, as the company expanded its product offerings and client base despite
- ConocoPhillips reported revenues of $48.5 billion for the second quarter of 2006, up 14% from the same period in 2005. Net income was $5.2 billion, up 66% from $3.1 billion in 2005.
- Earnings per share increased to $3.09 per share from $2.21 per share in 2005. Production volumes increased across oil, natural gas, and natural gas liquids.
- Capital expenditures totaled $3.4 billion for the quarter, up 9% from 2005, primarily directed towards expanding E&P operations internationally and upgrading refineries.
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.
This document is Morgan Stanley's annual report for fiscal year 2001. It provides the following key information in 3 sentences:
Morgan Stanley's net income for 2001 was $3.6 billion, a 34% decline from 2000, with earnings per share of $3.19, down 33%. Despite the difficult market environment, Morgan Stanley achieved a strong 19% return on equity through expense control and business diversification. The report discusses Morgan Stanley's financial results, the challenges of the difficult market in 2001, and its continued focus on reorganizing around serving clients.
- The Clorox Company reported net sales of $1.353 billion for the third quarter of fiscal year 2008, a 9% increase from $1.241 billion in the third quarter of the previous fiscal year.
- Earnings from continuing operations were $100 million, down 22% from $129 million in the third quarter of fiscal year 2007.
- For the first nine months of fiscal year 2008, net sales increased 8% to $3.778 billion compared to $3.503 billion for the same period last year, while earnings from continuing operations fell 10% to $303 million.
- Weyco Group reported a 4% decrease in first quarter sales from $61.3 million to $58.9 million and a decline in net earnings from $5.1 million to $2.5 million. Diluted earnings per share fell from $0.43 to $0.22.
- Sales were down in the wholesale and retail divisions due to lower demand and 3 fewer retail stores. The acquisition of Florsheim Australia contributed to increased foreign sales.
- Operating earnings declined from $7.6 million to $3.3 million due to lower sales volumes and margins in a difficult retail environment. Florsheim Australia had an operating loss of $360,000 from acquisition costs.
This 11-year financial summary provides key financial data for Walmart from 1993 to 2003. Over this period, Walmart experienced significant growth, with net sales increasing from $55.4 billion in 1993 to $244.5 billion in 2003, a 12% increase from the prior year. This growth was driven by expansion of stores both domestically and internationally as well as increasing comparable store sales. Gross margins increased slightly from 21.23% to 21.55% from 2002 to 2003 due to lower shrinkage and markdowns. Operating expenses also increased slightly as a percentage of sales due to higher insurance and payroll costs. Overall, the financial summary shows Walmart's continued growth and expansion globally over an 11-year period.
This document provides financial highlights and other information for Alltel Corporation for the third quarter and first nine months of 2006 compared to the same periods in 2005. It includes revenues, operating income, net income, earnings per share, capital expenditures and other key financial metrics. Alltel saw increases in revenues, operating income and net income in both periods compared to the previous year. However, net income decreased for the third quarter due to special items. The document also provides reconciliation of GAAP results to non-GAAP results from current businesses, excluding certain one-time items.
- 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 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.
- ConocoPhillips reported financial results for the third quarter and first nine months of 2006. Total revenues were $49.6 billion for Q3 2006 and $146 billion for the first nine months of the year.
- Net income was $3.9 billion for Q3 2006, comparable to $3.8 billion for the same period in 2005. For the first nine months, net income was $12.4 billion in 2006 compared to $9.9 billion in 2005.
- Earnings per share on a diluted basis were $2.31 for Q3 2006 and $7.78 for the first nine months of 2006.
Dover Corporation reported a 16% increase in EPS to $0.88 for Q3 2007 compared to $0.76 for Q3 2006. Revenue increased 15% to $1.84 billion. For the first nine months of 2007, EPS increased 11% to $2.36 while revenue increased 15% to $5.37 billion. The company achieved organic growth of 3.3% and acquisition growth of 9.6% in Q3. Looking ahead, Dover expects continued solid business in Q4 but with moderating growth and restructuring charges of $0.02-0.03 per share.
Teluma is a leading provider of resource management solutions that aims to reduce recruitment costs and attract better candidates for its clients through innovative technology-driven solutions. Their resource management solutions and status as a valued partner come from their innovative nature and focus on technology.
This transcript summarizes Nike's fiscal year 2008 first quarter earnings call from September 20, 2007. The operator introduces the call and reminds participants that forward-looking statements are based on current expectations and estimates. Pamela Catlett, Vice President of Investor Relations, introduces Nike CEO Mark Parker to provide opening remarks. Parker notes revenue, earnings, futures, and regional growth were all up for the quarter. He highlights Nike's category focus and growth strategies. Charlie Denson, President of the Nike Brand, then discusses regional performances and innovations. Denson focuses on improvements in Europe, growth in key categories globally, and strategic tests in the US marketplace.
Are You Here? The Importance of Being Present in Your Job and Job SearchEmployment Crossing
Chief Executive Officer, A. Harrison Barnes, as he talks about the importance of being present and totally focused in your job. You need to be present in life and in your career and feel a connection to your work.
burlington northern santa fe 10K railway 2008finance16
This document is BNSF Railway Company's annual report on Form 10-K for the fiscal year ended December 31, 2008 filed with the SEC. It provides information on BNSF's business operations, legal proceedings, risk factors, financial statements, management's discussion and analysis of financial condition and results of operations, quantitative and qualitative disclosures about market risk, controls and procedures, and other required disclosures. BNSF Railway operates one of the largest freight railroad networks in North America, with approximately 40,000 employees as of December 31, 2008. It faces competition from other rail carriers and transportation providers.
U.S. Steel U. S. Steel Conference Call Available On April 29, 2008finance15
United States Steel Corporation announced a conference call on April 29, 2008 at 2pm EST to discuss their first quarter 2008 financial results and provide any forward-looking information. Interested parties can access the call via the company's website at www.ussteel.com. The call will include participation from John P. Surma, chairman and CEO, Gretchen R. Haggerty, executive vice president and CFO, and W. Nick Harper, manager of investor relations. A replay of the call will be available on the company's website after 5pm on April 29.
This document does not contain any substantive information to summarize. It consists only of the letter "e" repeated multiple times without any context. Therefore, no meaningful 3 sentence summary can be generated from the given text.
The document advertises an upcoming webinar on leveraging visitor behavior and social preferences to drive conversion. It discusses how personalizing the user experience based on analytics can increase engagement and conversion rates. It also promotes utilizing social data and networks to better personalize experiences for users and acquire new customers through their social connections. The webinar will cover four steps for using social media to boost conversions and discuss how understanding different user "tribes" can help tailor content and optimize experiences.
This document is an application form for organisations seeking accreditation under the Erasmus+ programme for learning mobility activities. It requests information about the applicant organisation, its experience with past EU projects, strategy for internationalisation and inclusion of mobility activities. It asks the organisation to describe its management of practical, financial and administrative tasks, selection and preparation of participants, recognition of learning outcomes, evaluation methods and plans for future activities. Background documents on the Erasmus+ programme and roles of organisations are provided as references.
This document provides State Street Corporation's 2002 financial review, including selected financial data and management's discussion and analysis. Key points:
1) Net income was $1.015 billion, up $387 million from 2001, driven largely by a $495 million gain from selling the corporate trust business. Adjusting for non-operating items, net income rose $32 million.
2) Earnings per share were $3.10, up from $1.90 in 2001. Excluding non-operating items, EPS rose from $2.08 to $2.20.
3) Total revenue increased $569 million to $4.396 billion, as the company expanded its product offerings and client base despite
- ConocoPhillips reported revenues of $48.5 billion for the second quarter of 2006, up 14% from the same period in 2005. Net income was $5.2 billion, up 66% from $3.1 billion in 2005.
- Earnings per share increased to $3.09 per share from $2.21 per share in 2005. Production volumes increased across oil, natural gas, and natural gas liquids.
- Capital expenditures totaled $3.4 billion for the quarter, up 9% from 2005, primarily directed towards expanding E&P operations internationally and upgrading refineries.
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.
This document is Morgan Stanley's annual report for fiscal year 2001. It provides the following key information in 3 sentences:
Morgan Stanley's net income for 2001 was $3.6 billion, a 34% decline from 2000, with earnings per share of $3.19, down 33%. Despite the difficult market environment, Morgan Stanley achieved a strong 19% return on equity through expense control and business diversification. The report discusses Morgan Stanley's financial results, the challenges of the difficult market in 2001, and its continued focus on reorganizing around serving clients.
- The Clorox Company reported net sales of $1.353 billion for the third quarter of fiscal year 2008, a 9% increase from $1.241 billion in the third quarter of the previous fiscal year.
- Earnings from continuing operations were $100 million, down 22% from $129 million in the third quarter of fiscal year 2007.
- For the first nine months of fiscal year 2008, net sales increased 8% to $3.778 billion compared to $3.503 billion for the same period last year, while earnings from continuing operations fell 10% to $303 million.
- Weyco Group reported a 4% decrease in first quarter sales from $61.3 million to $58.9 million and a decline in net earnings from $5.1 million to $2.5 million. Diluted earnings per share fell from $0.43 to $0.22.
- Sales were down in the wholesale and retail divisions due to lower demand and 3 fewer retail stores. The acquisition of Florsheim Australia contributed to increased foreign sales.
- Operating earnings declined from $7.6 million to $3.3 million due to lower sales volumes and margins in a difficult retail environment. Florsheim Australia had an operating loss of $360,000 from acquisition costs.
This 11-year financial summary provides key financial data for Walmart from 1993 to 2003. Over this period, Walmart experienced significant growth, with net sales increasing from $55.4 billion in 1993 to $244.5 billion in 2003, a 12% increase from the prior year. This growth was driven by expansion of stores both domestically and internationally as well as increasing comparable store sales. Gross margins increased slightly from 21.23% to 21.55% from 2002 to 2003 due to lower shrinkage and markdowns. Operating expenses also increased slightly as a percentage of sales due to higher insurance and payroll costs. Overall, the financial summary shows Walmart's continued growth and expansion globally over an 11-year period.
This document provides financial highlights and other information for Alltel Corporation for the third quarter and first nine months of 2006 compared to the same periods in 2005. It includes revenues, operating income, net income, earnings per share, capital expenditures and other key financial metrics. Alltel saw increases in revenues, operating income and net income in both periods compared to the previous year. However, net income decreased for the third quarter due to special items. The document also provides reconciliation of GAAP results to non-GAAP results from current businesses, excluding certain one-time items.
- 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 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.
- ConocoPhillips reported financial results for the third quarter and first nine months of 2006. Total revenues were $49.6 billion for Q3 2006 and $146 billion for the first nine months of the year.
- Net income was $3.9 billion for Q3 2006, comparable to $3.8 billion for the same period in 2005. For the first nine months, net income was $12.4 billion in 2006 compared to $9.9 billion in 2005.
- Earnings per share on a diluted basis were $2.31 for Q3 2006 and $7.78 for the first nine months of 2006.
Dover Corporation reported a 16% increase in EPS to $0.88 for Q3 2007 compared to $0.76 for Q3 2006. Revenue increased 15% to $1.84 billion. For the first nine months of 2007, EPS increased 11% to $2.36 while revenue increased 15% to $5.37 billion. The company achieved organic growth of 3.3% and acquisition growth of 9.6% in Q3. Looking ahead, Dover expects continued solid business in Q4 but with moderating growth and restructuring charges of $0.02-0.03 per share.
Teluma is a leading provider of resource management solutions that aims to reduce recruitment costs and attract better candidates for its clients through innovative technology-driven solutions. Their resource management solutions and status as a valued partner come from their innovative nature and focus on technology.
This transcript summarizes Nike's fiscal year 2008 first quarter earnings call from September 20, 2007. The operator introduces the call and reminds participants that forward-looking statements are based on current expectations and estimates. Pamela Catlett, Vice President of Investor Relations, introduces Nike CEO Mark Parker to provide opening remarks. Parker notes revenue, earnings, futures, and regional growth were all up for the quarter. He highlights Nike's category focus and growth strategies. Charlie Denson, President of the Nike Brand, then discusses regional performances and innovations. Denson focuses on improvements in Europe, growth in key categories globally, and strategic tests in the US marketplace.
Are You Here? The Importance of Being Present in Your Job and Job SearchEmployment Crossing
Chief Executive Officer, A. Harrison Barnes, as he talks about the importance of being present and totally focused in your job. You need to be present in life and in your career and feel a connection to your work.
burlington northern santa fe 10K railway 2008finance16
This document is BNSF Railway Company's annual report on Form 10-K for the fiscal year ended December 31, 2008 filed with the SEC. It provides information on BNSF's business operations, legal proceedings, risk factors, financial statements, management's discussion and analysis of financial condition and results of operations, quantitative and qualitative disclosures about market risk, controls and procedures, and other required disclosures. BNSF Railway operates one of the largest freight railroad networks in North America, with approximately 40,000 employees as of December 31, 2008. It faces competition from other rail carriers and transportation providers.
U.S. Steel U. S. Steel Conference Call Available On April 29, 2008finance15
United States Steel Corporation announced a conference call on April 29, 2008 at 2pm EST to discuss their first quarter 2008 financial results and provide any forward-looking information. Interested parties can access the call via the company's website at www.ussteel.com. The call will include participation from John P. Surma, chairman and CEO, Gretchen R. Haggerty, executive vice president and CFO, and W. Nick Harper, manager of investor relations. A replay of the call will be available on the company's website after 5pm on April 29.
This document does not contain any substantive information to summarize. It consists only of the letter "e" repeated multiple times without any context. Therefore, no meaningful 3 sentence summary can be generated from the given text.
The document advertises an upcoming webinar on leveraging visitor behavior and social preferences to drive conversion. It discusses how personalizing the user experience based on analytics can increase engagement and conversion rates. It also promotes utilizing social data and networks to better personalize experiences for users and acquire new customers through their social connections. The webinar will cover four steps for using social media to boost conversions and discuss how understanding different user "tribes" can help tailor content and optimize experiences.
This document is an application form for organisations seeking accreditation under the Erasmus+ programme for learning mobility activities. It requests information about the applicant organisation, its experience with past EU projects, strategy for internationalisation and inclusion of mobility activities. It asks the organisation to describe its management of practical, financial and administrative tasks, selection and preparation of participants, recognition of learning outcomes, evaluation methods and plans for future activities. Background documents on the Erasmus+ programme and roles of organisations are provided as references.
Johann Heinrich Schulz discovered in 1727 that silver nitrate would change color when exposed to light, which was an early step towards developing the first photographs. Joseph Niepce then developed the camera obscura in 1814 to take the first photo, though the process was imperfect. In 1837, Louis Daguerre invented the Daguerreotype process which reduced exposure time to just 30 minutes and produced images that did not fade. Multiple copies of photographs became possible in 1841 when William Henry Talbot invented the Calotype process.
Scary forms and landing pages lead to frightening conversions. Join SiteTuners and LeadSpend this Halloween, and learn how to magically turn the most ghastly landing page into a spell-binding conversion machine.
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This transcript summarizes Nike's fiscal 2009 second quarter earnings call on December 17, 2008:
1) Nike reported record second quarter revenue for the Nike brand of $4 billion, up 6% in constant currency, with growth in major categories like running, basketball, and sportswear.
2) While the economic environment presents challenges, Nike is confident in its strength and competitive advantages in connecting with consumers and creating innovative products.
3) Nike will focus on managing costs carefully while continuing to invest in demand creation and brand strength to drive profitable growth over the long term.
IPSA International is a global risk advisory firm in the areas of anti-money laundering, anti-bribery/corruption, investigative due diligence and litigation support. Our uncompromising commitment is in helping clients reduce uncertainty and achieve greater success through increased transparency and risk mitigation. IPSA accomplishes this with our team of industry recognized experts and focused business strategies to ensure our clients receive the highest level of knowledge and insight required to discretely and effectively complete each assignment.
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
The document describes how a group of students created twisters in bottles by pouring water into bottles with funnels and then shaking and twisting the bottles. Different students took turns shaking the bottles and observed the twisters forming inside. They had read a book called Twisters that taught them how to predict twisters and safety tips like going to a basement, and they enjoyed recreating the experiment from the book.
La Unión Europea ha acordado un paquete de sanciones contra Rusia por su invasión de Ucrania. Las sanciones incluyen restricciones a las transacciones con bancos rusos clave y la prohibición de la venta de aviones y equipos a Rusia. Los líderes de la UE también acordaron excluir a varios bancos rusos del sistema SWIFT de mensajería financiera.
Burlington Northern Santa Fe reported record second quarter earnings in 2004, with EPS of $0.67, up 24% from the second quarter of 2003. Freight revenues increased 17% to a record $2.64 billion, driven by a 2% average price increase and record volumes. Operating income increased 23% to $508 million while the operating ratio improved to 80.7%. The company also announced a 13% increase in its quarterly dividend.
Joe Pulizzi, founder of the Content Marketing Institute and co-author of "Managing Content Marketing" and "Get Content, Get Customers," discusses the latest customer acquisition and retention methods. During this one-hour webinar, Joe reviews essential strategies that can lift your content marketing program to the next level.
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 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, 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.
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 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 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 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.
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 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 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 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 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.
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.
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.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended September 30, 2006. The summary provides key financial information including operating revenues of $3.5 billion for the quarter and $10.4 billion for the nine months, with net income of $446 million and $1.28 billion respectively. Total assets as of September 30, 2006 were $13.25 billion with total stockholders' equity of $8.71 billion. Notes to the financial statements provide additional details on investment income, comprehensive income, inventories, goodwill and intangible assets.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended September 30, 2006. The summary provides key financial information including operating revenues of $3.5 billion for the quarter and $10.4 billion for the nine months, with net income of $446 million and $1.28 billion respectively. Total assets as of September 30, 2006 were $13.25 billion with total stockholders' equity of $8.71 billion. Notes to the financial statements provide additional details on investment income, comprehensive income, inventories, goodwill and intangible assets.
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 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 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 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.
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.
1) Burlington Northern Santa Fe Corporation reported earnings of $0.40 per share for the first quarter of 2003, before a cumulative effect adjustment of $0.10 per share for a change in accounting principle.
2) Freight revenues increased 3% to $2.2 billion compared to the first quarter of 2002, while operating expenses rose $103 million to $1.89 billion due to a $90 million increase in fuel costs.
3) Operating income was $346 million for the quarter, down from $380 million in the prior year due to higher fuel costs, and the operating ratio rose to 84.3% from 82.2% in 2002.
5 Tips for Creating Standard Financial ReportsEasyReports
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Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
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Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
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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.
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itw_051028
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 September 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 September 30, 2005: 280,502,962.
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 Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating Revenues $ 3,257,600 $ 2,967,168 $ 9,627,535 $ 8,679,788
Cost of revenues 2,081,272 1,934,831 6,260,211 5,614,977
Selling, administrative, and research
and development expenses 541,338 509,482 1,646,388 1,495,703
Amortization and impairment of
goodwill and other intangible assets 15,770 10,617 56,973 47,692
Operating Income 619,220 512,238 1,663,963 1,521,416
Interest expense (18,243) (18,512) (64,322) (53,385)
Other income (expense) (775) 6,325 9,549 17,495
Income from Continuing Operations
Before Income Taxes 600,202 500,051 1,609,190 1,485,526
Income Taxes 192,000 170,000 514,900 505,100
Income from Continuing Operations 408,202 330,051 1,094,290 980,426
Income from Discontinued Operations — — — 171
Net Income $ 408,202 $ 330,051 $ 1,094,290 $ 980,597
Income Per Share from Continuing
Operations:
Basic $1.44 $1.10 $3.81 $3.21
Diluted $1.43 $1.09 $3.78 $3.19
Income Per Share from Discontinued
Operations:
Basic $— $— $— $0.00
Diluted $— $— $— $0.00
Net Income Per Share:
Basic $1.44 $1.10 $3.81 $3.21
Diluted $1.43 $1.09 $3.78 $3.19
Cash Dividends:
Paid $0.28 $0.24 $0.84 $0.72
Declared $0.33 $0.28 $0.89 $0.76
Shares of Common Stock Outstanding
During the Period:
Average 282,798 301,390 287,333 305,222
Average assuming dilution 285,009 303,966 289,510 307,657
3
4. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
(In thousands)
September 30, 2005 December 31, 2004
ASSETS
Current Assets:
Cash and equivalents $ 351,345 $ 667,390
Trade receivables 2,168,592 2,054,624
Inventories 1,229,667 1,281,156
Deferred income taxes 158,953 147,416
Prepaid expenses and other current assets 144,268 171,612
Total current assets 4,052,825 4,322,198
Plant and Equipment:
Land 157,938 160,649
Buildings and improvements 1,225,998 1,236,541
Machinery and equipment 3,268,556 3,272,144
Equipment leased to others 156,589 150,412
Construction in progress 95,183 117,366
4,904,264 4,937,112
Accumulated depreciation (3,078,805) (3,060,237)
Net plant and equipment 1,825,459 1,876,875
Investments 1,021,199 912,483
Goodwill 2,877,750 2,753,053
Intangible Assets 499,463 440,002
Deferred Income Taxes 50,049 233,172
Other Assets 908,462 814,151
$ 11,235,207 $ 11,351,934
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term debt $ 378,609 $ 203,523
Accounts payable 543,897 603,811
Accrued expenses 975,001 959,380
Cash dividends payable 92,383 81,653
Income taxes payable 30,511 2,604
Total current liabilities 2,020,401 1,850,971
Noncurrent Liabilities:
Long-term debt 965,535 921,098
Other 968,145 952,255
Total noncurrent liabilities 1,933,680 1,873,353
Stockholders’ Equity:
Common stock 3,117 3,114
Additional paid-in-capital 1,042,495 978,941
Income reinvested in the business 8,804,369 7,963,518
Common stock held in treasury (2,773,176) (1,731,378)
Accumulated other comprehensive income 204,321 413,415
Total stockholders’ equity 7,281,126 7,627,610
11,235,207
$ $ 11,351,934
4
5. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF CASH FLOWS
(UNAUDITED)
(In thousands)
Nine Months Ended
September 30
2005 2004
Cash Provided by (Used for) Operating Activities:
Net income $ 1,094,290 $ 980,597
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations — (171)
Depreciation 225,441 216,188
Amortization and impairment of goodwill and other intangible assets 56,973 47,692
Change in deferred income taxes 117,835 (59,304)
Provision for uncollectible accounts 7,801 3,001
(Gain) loss on sale of plant and equipment 2,165 (1,507)
Income from investments (85,647) (110,801)
(Gain) loss on sale of operations and affiliates 5,607 (84)
Stock compensation expense 45,240 24,475
Other non-cash items, net (1,283) 6,006
Changes in assets and liabilities:
(Increase) decrease in--
Trade receivables (133,307) (172,122)
Inventories 57,230 (101,539)
Prepaid expenses and other assets (54,188) (82,716)
Increase (decrease) in--
Accounts payable (58,724) 7,991
Accrued expenses and other liabilities 39,802 28,406
Income taxes payable 41,337 362,916
Other, net — 35
Net cash provided by operating activities 1,360,572 1,149,063
Cash Provided by (Used for) Investing Activities:
Acquisition of businesses (excluding cash and equivalents) and additional interest in affiliates (312,736) (438,865)
Additions to plant and equipment (216,025) (197,860)
Purchase of investments (91,273) (35,680)
Proceeds from investments 46,218 57,289
Proceeds from sales of plant and equipment 25,299 17,105
Proceeds from sales of operations and affiliates 1,408 3,395
Other, net (3,266) 14,133
Net cash used for investing activities (550,375) (580,483)
Cash Provided by (Used for) Financing Activities:
Cash dividends paid (242,708) (221,548)
Issuance of common stock 18,318 69,029
Repurchases of common stock (1,041,798) (1,202,124)
Net proceeds from short-term debt 175,334 32,275
Proceeds from long-term debt 58,369 70
Repayments of long-term debt (9,003) (5,464)
Net cash used for financing activities (1,041,488) (1,327,762)
Effect of Exchange Rate Changes on Cash and Equivalents (84,754) 4,982
Cash and Equivalents:
Decrease during the period (316,045) (754,200)
Beginning of period 667,390 1,684,483
End of period $ 351,345 $ 930,283
Cash Paid During the Period for Interest $ 66,610 $ 55,713
Cash Paid During the Period for Income Taxes $ 367,071 $ 172,210
Liabilities Assumed from Acquisitions $ 90,707 $ 128,376
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 September
30, 2005, 18,048,432 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 expensed 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 Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Net income as reported $ 408,202 $ 330,051 $ 1,094,290 $ 980,597
Add: Restricted stock and stock options recorded as
expense, net of tax 10,215 5,942 32,694 18,026
Deduct: Total stock-based compensation
expense, net of tax (10,215) (10,552) (32,694) (31,856)
Pro forma net income $ 408,202 $ 325,441 $ 1,094,290 $ 966,767
Net income per share:
Basic – as reported $1.44 $1.10 $3.81 $3.21
Basic – pro forma $1.44 $1.08 $3.81 $3.17
Diluted – as reported $1.43 $1.09 $3.78 $3.19
Diluted – pro forma $1.43 $1.07 $3.78 $3.14
6
7. The following table summarizes the components of the Company’s stock-based compensation programs recorded as expense:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Restricted Stock:
Pretax compensation expense $ 7,679 $ 8,076 $ 25,458 $ 24,475
Tax benefit (2,054) (2,134) (6,767) (6,449)
Restricted stock expense, net of tax $ 5,625 $ 5,942 $ 18,691 $ 18,026
Stock Options:
Pretax compensation expense $ 6,468 $ — $ 19,782 $ —
Tax benefit (1,878) — (5,779) —
Stock option expense, net of tax $ 4,590 $ — $ 14,003 $ —
Total Stock-Based Compensation:
Pretax compensation expense $ 14,147 $ 8,076 $ 45,240 $ 24,475
Tax benefit (3,932) (2,134) (12,546) (6,449)
Total restricted stock and stock options recorded as
expense, net of tax $ 10,215 $ 5,942 $ 32,694 $ 18,026
The following table summarizes the annual estimated pretax impact of compensation cost related to equity awards granted through
September 30, 2005:
(In thousands)
Stock-Based Compensation Programs
For the years ended December 31 Restricted Stock Stock Options Total
2005 $ 32,896 $ 25,640 $ 58,536
2006 12,554 9,473 22,027
2007 — 6,469 6,469
2008 — 4,218 4,218
$ 45,450 $ 45,800 $ 91,250
The following table summarizes information on unvested restricted stock and stock options outstanding as of September 30, 2005:
Nine Months Ended
September 30
Weighted-Average
Number of Shares Grant-Date Fair Value
Unvested Restricted Stock
Unvested, January 1, 2005 612,482 $76.35
Vested (28,105) 76.04
Forfeited (30,526) 75.91
Unvested, September 30, 2005 553,851 76.39
Unvested Options
Unvested, January 1, 2005 3,378,542 $21.98
Vested (177,444) 21.84
Forfeited (22,739) 21.76
Unvested, September 30, 2005 3,178,359 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 nine months ended September 30, 2005 and 2004 was $15,858,000 and $77,519,000, respectively.
Aggregate intrinsic value of options outstanding and options exercisable at September 30, 2005 was $199,549,000 and $185,068,000,
respectively. Exercise of options during the nine months ended September 30, 2005 and 2004, resulted in cash receipts of $18,318,000
and $69,029,000, respectively. For the quarter ended September 30, 2005, the weighted average remaining contractual term of options
outstanding and options exercisable was 5.86 years and 4.75 years, respectively.
(2) INVENTORIES:
Inventories at September 30, 2005 and December 31, 2004 were as follows:
(In thousands)
September 30, 2005 December 31, 2004
Raw material $ 359,595 $ 385,036
Work-in-process 132,139 118,052
Finished goods 737,933 778,068
$ 1,229,667 $ 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 Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Net income $ 408,202 $ 330,051 $ 1,094,290 $ 980,597
Foreign currency translation adjustments, net of tax (10,243) 2,570 (209,094) 25,808
Total comprehensive income $ 397,959 $ 332,621 $ 885,196 $ 1,006,405
(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 September 30, 2005 and 2004 were as
follows:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Goodwill:
Impairment $ —$ — $ 6,206 $ 11,492
Intangible Assets:
Amortization 15,770 10,617 45,718 25,980
Impairment — — 5,049 10,220
Total $ 15,770 $ 10,617 $ 56,973 $ 47,692
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.
9
10. (5) RETIREMENT PLANS AND POSTRETIREMENT BENEFITS:
Pension and other postretirement benefit costs for the periods ended September 30, 2005 and 2004 were as follows:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
Other Postretirement Other Postretirement
Benefits Benefits
Pension Pension
2005 2004 2005 2004 2005 2004 2005 2004
Components of net periodic
benefit cost:
Service cost $ 21,270 $ 19,846 $ 3,237 $ 3,341 $ 64,080 $ 58,979 $ 9,709 $ 10,130
Interest cost 21,280 20,633 7,573 8,719 64,367 61,843 22,720 25,947
Expected return on plan
assets (30,973) (29,523) (1,439) (866) (93,462) (88,483) (4,316) (2,599)
Amortization of actuarial
loss 2,199 1,256 311 1,383 6,783 3,756 934 4,210
Amortization of prior
service cost (income) (570) (576) 1,684 1,684 (1,708) (1,728) 5,052 5,052
Amortization of net
transition amount (4) (35) — — (10) (103) — —
Settlement/curtailment loss — — — — — 58 — —
Net periodic benefit cost $ 13,202 $ 11,601 $ 11,366 $ 14,261 $ 40,050 $ 34,322 $ 34,099 $ 42,740
The Company expects to contribute $98,000,000 to its pension plans in 2005. As of September 30, 2005, contributions of $91,425,000
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 $278,458,000 at September 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. 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 $ 1,054,000 $ 1,218,000
Estimated U.S. tax cost of repatriation $ 29,500 $ 35,000
10
11. 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 September 30, 2005, the Company has repatriated $1,054,000,000
and recorded additional tax expense in the third quarter of 2005 of $4,500,000 to reflect the estimated tax cost of foreign dividends.
(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.
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 third quarter and year-to-date periods of 2005 and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating revenues $3,257,600 $2,967,168 $9,627,535 $8,679,788
Operating income 619,220 512,238 1,663,963 1,521,416
Margin % 19.0% 17.3% 17.3% 17.5%
In the third 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 September 30 Nine Months Ended September 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 4.1% 9.5% 0.9% 4.7 % 10.9% 1.0%
Changes in variable margins and
overhead costs — 4.0 0.7 — (3.5) (0.6)
Total 4.1 13.5 1.6 4.7 7.4 0.4
Restructuring costs — (2.7) (0.5) — (1.5) (0.2)
Impairment of goodwill and intangibles — — — — 0.7 0.1
Acquisitions and divestitures 3.9 2.4 (0.3) 4.8 2.5 (0.4)
Translation 0.8 1.2 0.1 2.0 2.0 —
Leasing and Investments 1.1 6.5 0.8 (0.3 ) (1.7) (0.2)
Intercompany (0.1) — — (0.3 ) — 0.1
Total 9.8% 20.9% 1.7% 10.9 % 9.4% (0.2)%
North America base business revenues increased 5% in the third quarter of 2005 and 6% year-to-date. Internationally, base business
revenues increased 2% in the third quarter and 3% year-to-date. The growth in North American revenues in both periods was
primarily due to the continuing impact of price increases implemented to offset raw material cost increases, modest growth in
industrial production and increased demand in certain capital equipment markets. Slowing economic growth in Europe continues to
hamper international revenue growth.
Operating income for the third quarter of 2005 and year-to-date period improved 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
increased restructuring expenses. Variable margins improved modestly in the third quarter of 2005 due to price increases to recover
higher raw material costs. However, year-to-date variable margins have remained below last year’s levels for the year-to-date period
due to raw material cost increases. Lower overhead cost in the third quarter of 2005 also contributed to the increase in income.
Leasing and Investments income increased in the third quarter due to gains on sales in the commercial mortgage portfolio but
decreased year-to-date due to lower year-to-date gains on sales of mortgage properties and lower income from leases of equipment. In
addition, operating income in the third quarter and year-to-date periods was negatively impacted by pretax charges to expense stock
options of $6.5 million and $19.8 million, respectively. A 2005 first quarter 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 third quarter and year-to-date periods of 2005
and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating revenues $959,665 $869,926 $2,849,673 $2,544,732
Operating income 180,942 149,381 502,276 442,230
Margin % 18.9% 17.2% 17.6% 17.4%
13
14. In the third quarter of 2005 and year-to-date periods, the changes in revenues, operating income and operating margins over the prior
year were primarily due to the following factors:
Three Months Ended September 30 Nine Months Ended September 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 2.3% 5.4% 0.5% 2.8% 6.6% 0.6%
Changes in variable margins and
overhead costs — 12.2 2.1 — 2.9 0.5
Total 2.3 17.6 2.6 2.8 9.5 1.1
Restructuring costs — (0.6) (0.1) — (1.5) (0.3)
Impairment of goodwill and intangibles — — — — 0.5 0.1
Acquisitions and divestitures 7.6 3.8 (0.8) 8.9 4.9 (0.7)
Translation 0.4 0.3 — 0.3 0.2 —
Total 10.3% 21.1% 1.7% 12.0% 13.6% 0.2%
Revenues increased in the third quarter and year-to-date periods primarily due to revenues from acquisitions and higher base business
revenues. Construction base revenues increased 2% for both the third quarter and year-to-date periods, primarily as a result of growth
in the residential, remodeling/rehab and commercial construction markets. Automotive base revenues increased 3% and 1% for the
third quarter and year-to-date periods, respectively, despite a 6% year-to-date decline in automotive production at the large domestic
North American automotive manufacturers. This was due to increased product penetration which helped to offset lower production
levels. Base revenues from the other industrial-based businesses in this segment grew 3% and 6% for the third quarter and year-to-date
periods, respectively, as a result of increased demand in a broad array of end markets. The incremental acquisition revenue in the third
quarter was 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 business in the fourth quarter of 2004, another engineered polymers
business in the first quarter of 2005 and an automotive fasteners business in the third quarter of 2005. Year-to-date revenue also
benefited from the acquisition of a construction business in the second quarter of 2004.
Operating income increased for the third quarter and year-to-date periods of 2005 primarily due to leverage from the growth in base
business revenues described above, increased acquisition income and lower overhead costs stemming from 2004 restructuring
projects. In addition, variable margins increased 0.4% in the third quarter of 2005 as raw material cost increases were fully recovered
through price increases. Year-to-date variable margins declined 0.7% due to raw material cost increases as well as sales declines in
high margin businesses. In addition, year-to-date income was higher 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, year-to-date income increased 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 third quarter and year-to-date periods of 2005
and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating revenues $656,786 $624,225 $2,011,402 $1,800,597
Operating income 100,293 95,983 286,333 262,523
Margin % 15.3% 15.4% 14.2% 14.6%
In the third 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 September 30 Nine Months Ended September 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 (0.7)% (1.8)% (0.2)% —% (0.1)% —%
Changes in variable margins and
overhead costs — 3.0 0.5 — (2.8) (0.5)
Total (0.7) 1.2 0.3 — (2.9) (0.5)
Restructuring costs — (4.1) (0.6) — (1.8) (0.3)
Impairment of goodwill and intangibles — — — — 3.2 0.5
Acquisitions and divestitures 4.5 4.6 — 7.3 5.0 (0.3)
Translation 1.4 2.8 0.2 4.4 5.6 0.2
Total 5.2% 4.5% (0.1)% 11.7% 9.1% (0.4)%
Revenues increased in the third 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
was primarily due to the acquisition of a European polymers business at the end of the fourth quarter of 2004 and a European
construction business in the second quarter of 2005. Year-to-date revenue was also favorably impacted by the second quarter 2004
acquisition of two European fluid products businesses and a first quarter 2004 acquisition of a European polymers business. Base
business construction revenues increased 1% and 3% in the third quarter and year-to-date, respectively, as the European and
Australasian markets remained weak in the third quarter of 2005. Increased demand at the Wilsonart high pressure laminate businesses
offset declines in other sectors of the Asian construction businesses in the third quarter and year-to-date. In addition, automotive base
revenues declined 3% and 4% in the third quarter and year-to-date period, respectively, primarily due to 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. Base revenues from these businesses decreased 2% and 1% for the third quarter and year-to-date periods of
2005, respectively, due primarily to the sluggish European economy.
15
16. Operating income for the third quarter of 2005 increased primarily due to acquisitions, lower operating costs and the favorable effect
of currency translation offset by lower base revenues and increased restructuring expenses. Year-to-date income increased primarily
due to favorable currency translation, acquisitions, and lower impairment expenses offset by higher operating costs and restructuring
expenses.
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 third quarter and year-to-date periods of 2005
and 2004 were as follows:
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating revenues $1,054,316 $964,847 $3,097,954 $2,823,895
Operating income 211,479 165,558 576,998 488,974
Margin % 20.1% 17.2% 18.6% 17.3%
16
17. In the third 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 September 30 Nine Months Ended September 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 8.2% 19.2% 1.7% 8.7% 20.5% 1.9%
Changes in variable margins and
overhead costs — 6.3 1.0 — (4.3) (0.7)
Total 8.2 25.5 2.7 8.7 16.2 1.2
Restructuring costs — 1.1 0.2 — 0.7 0.1
Impairment of goodwill and intangibles — — — — — —
Acquisitions and divestitures 0.5 0.3 — 0.5 0.4 —
Translation 0.6 0.8 — 0.5 0.7 —
Total 9.3% 27.7% 2.9% 9.7% 18.0% 1.3%
Base business revenue growth in the third quarter and year-to-date periods of 2005 was 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 25% and 20% in
the third quarter and year-to-date periods of 2005, respectively, and industrial packaging base revenues grew 3% in both periods. Food
equipment base revenues increased 1% and 5% in the third 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, including the marking, decorating and finishing businesses, increased 8% and 10% in the third quarter and
year-to-date periods, respectively.
Operating income increased in the third quarter and year-to-date periods of 2005 primarily due to leverage from the base business
revenue increases described above. Variable margins increased 0.6% in the third quarter as price increases fully covered raw material
cost increases. Year-to-date variable margins declined 0.8% due to raw material cost increases. In addition, third quarter 2005 income
increased due to a reduction in overhead costs, stemming from prior year restructuring projects.
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.
17
18. The results of operations for the Specialty Systems – International segment for the third quarter and year-to-date periods of 2005 and
2004 were as follows:
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating revenues $638,967 $591,467 $1,909,351 $1,702,920
Operating income 73,043 81,094 219,809 223,966
Margin % 11.4% 13.7% 11.5% 13.2%
In the third 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 September 30 Nine Months Ended September 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 4.5% 12.8% 1.1% 5.3% 15.9% 1.3%
Changes in variable margins and
overhead costs — (13.0) (1.7) — (16.8) (2.1)
Total 4.5 (0.2) (0.6) 5.3 (0.9) (0.8)
Restructuring costs — (13.6) (1.8) — (6.5) (0.8)
Impairment of goodwill and intangibles — — — — 0.1 —
Acquisitions and divestitures 2.8 2.1 (0.1) 2.7 0.5 (0.2)
Translation 0.7 1.8 0.2 4.1 4.9 0.1
Total 8.0% (9.9)% (2.3)% 12.1% (1.9)% (1.7)%
Revenues increased in the third quarter and year-to-date periods of 2005 mainly due to base business revenue growth, revenues from
acquired companies and favorable currency translation, primarily as a result of the Euro strengthening versus the U.S. dollar. Food
equipment base revenues increased 3% and 4% in the third quarter and year-to-date periods, respectively, while industrial packaging
base revenues increased 6% and 7% in the third quarter and year-to-date periods, respectively. Other base business revenues,
including the welding and finishing businesses, increased 2% in both the third quarter and year-to-date periods of 2005. The
incremental acquisition revenue was primarily related to the acquisition of a decorating business in the first quarter of 2005, a
resealable plastic packaging business in the third quarter of 2005 and an aircraft ground power business in the third quarter of 2005.
Operating income increased in the third quarter and year-to-date periods of 2005 primarily as a result of the revenue increases and
currency changes described above. Variable margin declines of 0.5% and 0.9% in the third quarter and year-to-date periods,
respectively, offset these increases. Year-to-date variable margins were adversely affected by raw material cost increases. Also, third
quarter 2005 income was negatively impacted by an increase in overhead costs. Third quarter 2005 income was adversely affected by
increased restructuring expenses primarily related to several industrial packaging, food equipment and decorating businesses. In
addition, year-to-date operating income decreased due to a 2005 first quarter 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.
18
19. The results of operations for the Leasing and Investments segment for the third quarter and year-to-date periods of 2005 and 2004
were as follows:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating revenues $57,585 $23,568 $89,883 $115,472
Operating income 53,463 20,222 78,547 103,723
Operating income (loss) by investment for the third quarter and year-to-date periods of 2005 and 2004 were as follows:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Mortgage investments $ 37,096 $ 10,296 $ 48,733 $ 64,134
Venture capital limited partnership 8,477 (255) 7,968 11,291
Leases of equipment 2,718 6,249 7,963 17,641
Property developments 2,600 2,971 6,585 4,790
Properties held for sale (334) (533) (1,227) 2,291
Other 2,906 1,494 8,525 3,576
$ 53,463 $ 20,222 $ 78,547 $ 103,723
In the third quarter of 2005 operating income was higher primarily due to gains of $35.6 million on sales of three commercial
mortgage properties, partially offset by impairments of $6.1 million, versus gains of $2.9 million on the sale of three commercial
mortgage properties in 2004. In the third quarter of 2005, income from mark-to-market adjustments on venture capital was $9.2
million higher than in 2004.
For the year-to-date period, operating income was lower primarily due to gains net of impairments on commercial mortgage properties
of $23.4 million in 2005 versus net gains of $41.1 million in 2004. Additionally, in the year-to-date 2005 period, income from leases
of equipment was $9.6 million lower than 2004 due to the normal decline in leveraged lease income.
OPERATING REVENUES
The reconciliation of segment operating revenues to total operating revenues is as follows:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Engineered Products - North America $ 959,665 $ 869,926 $ 2,849,673 $ 2,544,732
Engineered Products – International 656,786 624,225 2,011,402 1,800,597
Specialty Systems - North America 1,054,316 964,847 3,097,954 2,823,895
Specialty Systems – International 638,967 591,467 1,909,351 1,702,920
Intersegment revenues (109,719) (106,865) (330,728) (307,828)
Total manufacturing operating revenues 3,200,015 2,943,600 9,537,652 8,564,316
Leasing and Investments 57,585 23,568 89,883 115,472
Total operating revenues $ 3,257,600 $ 2,967,168 $ 9,627,535 $ 8,679,788
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.
19
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 September 30, 2005 and 2004 were as
follows:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Goodwill:
Impairment $ —$ — $ 6,206 $ 11,492
Intangible Assets:
Amortization 15,770 10,617 45,718 25,980
Impairment — — 5,049 10,220
Total $ 15,770 $ 10,617 $ 56,973 $ 47,692
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 $64.3 million in the first nine months of 2005 from $53.4 million in 2004 primarily due to interest
expense related to the issuance of commercial paper in the fourth quarter of 2004 and the first three quarters of 2005 offset by lower
interest expense at international operations.
OTHER INCOME
Other income decreased to $9.5 million for the first nine months of 2005 from $17.5 million in 2004, primarily due to an estimated
loss on a proposed divestiture in 2005, lower interest income in 2005 versus 2004 and losses in 2005 on the sale of fixed assets versus
gains in 2004. This is partially offset by currency translation gains in 2005 versus losses in 2004 and lower minority interest expense
in 2005.
INCOME FROM CONTINUING OPERATIONS
Income from continuing operations of $1,094.3 million ($3.78 per diluted share) in the first nine months of 2005 was 11.6% higher
than the 2004 income from continuing operations of $980.4 million ($3.19 per diluted share).
FOREIGN CURRENCY
The weakening of the U.S. dollar against foreign currencies in 2005 increased operating revenues for the first nine months of 2005 by
approximately $179.0 million and increased earnings by approximately 7 cents per diluted share.
20
21. 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.
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 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 third quarter of 2005, the Company repurchased 5,527,805 shares of its common stock at an average price of
$84.86 per share. Since the inception of the program, the Company has repurchased 31,000,000 shares of its common stock for $2.8
billion at an average price of $89.41 per share. The Company completed the share repurchase program in the third quarter of 2005.
Summarized cash flow information for the third quarter and year-to-date periods of 2005 and 2004 was as follows:
(In thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Net cash provided by operating activities $ 559,297 $ 452,545 $ 1,360,572 $ 1,149,063
Proceeds from investments 18,580 18,837 46,218 57,289
Additions to plant and equipment (71,316) (68,088) (216,025) (197,860)
Free operating cash flow $ 506,561 $ 403,294 $ 1,190,765 $ 1,008,492
Acquisitions $ (112,592) $ (62,066) $ (312,736) $ (438,865)
Cash dividends paid (79,909) (73,572) (242,708) (221,548)
Purchase of investments (18,029) (6,986) (91,273) (35,680)
Repurchases of common stock (469,112) (943,014) (1,041,798) (1,202,124)
Net proceeds (repayments) of debt (318,673) 38,427 224,700 26,881
Other (15,580) 36,992 (42,995) 108,644
Net decrease in cash and equivalents $ (507,334) $ (606,925) $ (316,045) $ (754,200)
21
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 third quarter and year-to-date periods of 2005 and 2004 was as follows:
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Operating income after taxes $ 421,070 $ 338,007 $ 1,131,495 $ 1,004,135
Total debt $ 1,344,144 $ 1,021,071 $ 1,344,144 $ 1,021,071
Less: Leasing and investment debt (146,254) (79,357) (146,254) (79,357)
Less: Cash and equivalents (351,345) (930,283) (351,345) (930,283)
Adjusted net debt 846,545 11,431 846,545 11,431
Total stockholders’ equity 7,281,126 7,543,307 7,281,126 7,543,307
Invested capital $ 8,127,671 $ 7,554,738 $ 8,127,671 $ 7,554,738
Average invested capital $ 8,122,104 $ 7,553,791 $ 8,132,236 $ 7,330,088
Annualized return on average invested capital 20.7% 17.9% 18.6% 18.3%
The 280 basis point increase in ROIC in the third quarter of 2005 was due primarily to a 25% increase in after-tax operating income,
mainly as a result of increased operating income from base business and Leasing and Investments and a decrease in the effective tax
rate to 32% in the third quarter of 2005 from 34% in the third quarter of 2004. The positive impact was partially offset by an increase
in average invested capital from acquisitions.
The 30 basis point increase in ROIC for year-to-date 2005 was due primarily to a 13% increase in after-tax operating income, mainly
as a result of increased operating income from base business and a decrease in the year-to-date effective tax rate to 32% in 2005 from
34% in 2004. The positive impact was partially offset by an increase in average invested capital from acquisitions.
Working Capital
Net working capital at September 30, 2005 and December 31, 2004 is summarized as follows:
(Dollars in thousands)
September 30, 2005 December 31, 2004 Increase/(Decrease)
Current Assets:
Cash and equivalents $ 351,345 $ 667,390 $ (316,045)
Trade receivables 2,168,592 2,054,624 113,968
Inventories 1,229,667 1,281,156 (51,489)
Other 303,221 319,028 (15,807)
4,052,825 4,322,198 (269,373)
Current Liabilities:
Short-term debt 378,609 203,523 175,086
Accounts payable and accrued expenses 1,518,898 1,563,191 (44,293)
Other 122,894 84,257 38,637
2,020,401 1,850,971 169,430
Net Working Capital $ 2,032,424 $ 2,471,227 $ (438,803)
Current Ratio 2.01 2.34
Cash and equivalents decreased due to the repurchase of common stock and cash paid for acquisitions and dividends, partially offset
by cash flows from operating activities. Trade receivables increased due to increased sales. 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.
22
23. 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 the
American Jobs Creation Act of 2004. As of September 30, 2005, the Company has repatriated $1.1 billion in foreign dividends.
Debt
Total debt at September 30, 2005 and December 31, 2004 was as follows:
(Dollars in thousands)
September 30, 2005 December 31, 2004
Short-term debt $ 378,609 $ 203,523
Long-term debt 965,535 921,098
Total debt $ 1,344,144 $ 1,124,621
Total debt to capitalization 15.6% 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 $278.5 million at September 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 1,094,290
Cash dividends declared (253,439)
Repurchase of common stock (1,041,798)
Stock option and restricted stock activity 63,557
Currency translation adjustments (209,094)
Total stockholders’ equity, September 30, 2005 $ 7,281,126
23
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 outcome of outstanding legal proceedings, the amount 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 President & Chief Executive Officer and Vice President &
Controller, Financial Reporting, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in
Exchange Act Rule 13a–15(e)) as of September 30, 2005. Based on such evaluation, the Company’s President & Chief Executive
Officer and Vice President & Controller, Financial Reporting, have concluded that, as of September 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 President & Chief Executive Officer and Vice President
& Controller, Financial Reporting, no changes in the Company’s internal control over financial reporting (as defined in Exchange Act
Rule 13a-15(f)) during the quarter ended September 30, 2005 were identified that have materially affected or are reasonably likely to
materially affect the Company’s internal control over financial reporting.
24