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 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.
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 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.
The document is Illinois Tool Works Inc.'s Form 10-Q filing for the quarterly period ended June 30, 2003. It includes Illinois Tool Works' unaudited financial statements, including their statement of income and statement of financial position for the periods. The statement of income shows that revenues increased but net income decreased in the first six months of 2003 compared to the same period in 2002. The statement of financial position lists their assets, liabilities, and stockholders' equity as of June 30, 2003 and December 31, 2002.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes the company's unaudited financial statements, including statements of income, financial position, and cash flows for the quarter. Key highlights include total revenues of $3.07 billion for the quarter, net income of $312.3 million, and adoption of new accounting standards for share-based compensation effective January 1, 2005 which increased reported compensation expense.
This document 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 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 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 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.
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 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.
The document is Illinois Tool Works Inc.'s Form 10-Q filing for the quarterly period ended June 30, 2003. It includes Illinois Tool Works' unaudited financial statements, including their statement of income and statement of financial position for the periods. The statement of income shows that revenues increased but net income decreased in the first six months of 2003 compared to the same period in 2002. The statement of financial position lists their assets, liabilities, and stockholders' equity as of June 30, 2003 and December 31, 2002.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes the company's unaudited financial statements, including statements of income, financial position, and cash flows for the quarter. Key highlights include total revenues of $3.07 billion for the quarter, net income of $312.3 million, and adoption of new accounting standards for share-based compensation effective January 1, 2005 which increased reported compensation expense.
This document 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 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 March 31, 2006. It includes financial statements such as the Statement of Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements. The financial statements show that for the quarter ended March 31, 2006, Illinois Tool Works had operating revenues of $3.3 billion, net income of $366.5 million, and cash and equivalents of $454.5 million.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending September 30, 2003. It includes Illinois Tool Works' statement of income, balance sheet, cash flows statement, and notes to the financial statements. For the quarter, Illinois Tool Works reported net income of $268.9 million on revenues of $2.531 billion. Total assets as of September 30, 2003 were $10.795 billion, with total stockholders' equity of $7.399 billion. Cash provided by operating activities for the first nine months of 2003 was $888.5 million.
This document is 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 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 a quarterly report filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarter ended June 30, 2006. It includes the company's statement of income, statement of financial position, statement of cash flows, and notes to the financial statements. The statements show that for the quarter ended June 30, 2006, Illinois Tool Works had operating revenues of $3.6 billion, net income of $466 million, and cash provided by operating activities of $749 million. Total assets as of June 30, 2006 were $12.5 billion, with current assets of $4.8 billion and total stockholders' equity of $8.6 billion.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended June 30, 2007. The report includes Illinois Tool Works' consolidated statement of income, financial position, cash flows, and notes to the financial statements for the quarter. Key details include operating revenues of $4.16 billion for the quarter, net income of $505.6 million, total assets of $14.64 billion, and goodwill and intangible asset impairment charges totaling $2.15 million recorded in the first quarter of 2007.
This document is Dover Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 30, 2007. It includes Dover's condensed consolidated financial statements and notes for the periods presented. Some key details:
- Revenue for the quarter increased 15% to $1.84 billion compared to $1.61 billion in the prior year. Net earnings increased 5% to $174.6 million.
- Year-to-date revenue increased 16% to $5.37 billion and net earnings increased 7% to $475.7 million.
- Total assets increased to $7.95 billion at the end of the quarter from $7.63 billion at the end of 2006
This document is an SEC Form 10-Q quarterly report filed by Xcel Energy Inc. for the quarter ended June 30, 2002. It includes consolidated statements of income showing operating revenues and expenses for the quarter and year-to-date, resulting in operating income of $345.6 million and $673 million respectively. It also reports net income of $87.3 million for the quarter and $190.8 million year-to-date, as well as earnings available to common shareholders of $86.2 million and $188.7 million.
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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, 2005. It includes Illinois Tool Works' statement of income, statement of financial position, and statement of cash flows for the quarter, as well as notes about stock-based compensation. Key details include that net income for the quarter was $373.8 million, total assets as of June 30, 2005 were $11.6 billion, and stock-based compensation expense recognized for the quarter was $9 million for restricted stock and $11.2 million on a pro forma basis.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending 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 Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2003. It includes Illinois Tool Works' statement of income, balance sheet, cash flows statement, and notes to the financial statements. The statements show that for the quarter, Illinois Tool Works had revenues of $2.56 billion, operating income of $454 million, net income of $276 million, and earnings per share of $0.90. As of June 30, 2003, Illinois Tool Works had total assets of $11.26 billion and stockholders' equity of $7.30 billion.
This document is a quarterly financial report filed by Illinois Tool Works Inc. with the SEC for the third quarter of 2005. It includes the company's statement of income, balance sheet, and statement of cash flows for the periods presented. The key details are:
- Net income for Q3 2005 was $408.2 million, up from $330.1 million in Q3 2004.
- Revenue for the first nine months of 2005 was $9.6 billion, up from $8.7 billion in the same period of 2004.
- Total assets as of September 30, 2005 were $11.2 billion, compared to $11.4 billion as of December 31, 2004.
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 ending September 30, 2003. It includes Illinois Tool Works' statement of income, balance sheet, cash flows statement, and notes to the financial statements. For the quarter, Illinois Tool Works reported net income of $268.9 million on revenues of $2.531 billion. Total assets as of September 30, 2003 were $10.795 billion, with total stockholders' equity of $7.399 billion. Cash provided by operating activities for the first nine months of 2003 was $888.5 million.
This document is 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 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 a quarterly report filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarter ended June 30, 2006. It includes the company's statement of income, statement of financial position, statement of cash flows, and notes to the financial statements. The statements show that for the quarter ended June 30, 2006, Illinois Tool Works had operating revenues of $3.6 billion, net income of $466 million, and cash provided by operating activities of $749 million. Total assets as of June 30, 2006 were $12.5 billion, with current assets of $4.8 billion and total stockholders' equity of $8.6 billion.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended June 30, 2007. The report includes Illinois Tool Works' consolidated statement of income, financial position, cash flows, and notes to the financial statements for the quarter. Key details include operating revenues of $4.16 billion for the quarter, net income of $505.6 million, total assets of $14.64 billion, and goodwill and intangible asset impairment charges totaling $2.15 million recorded in the first quarter of 2007.
This document is Dover Corporation's Form 10-Q quarterly report filed with the SEC for the quarter ended September 30, 2007. It includes Dover's condensed consolidated financial statements and notes for the periods presented. Some key details:
- Revenue for the quarter increased 15% to $1.84 billion compared to $1.61 billion in the prior year. Net earnings increased 5% to $174.6 million.
- Year-to-date revenue increased 16% to $5.37 billion and net earnings increased 7% to $475.7 million.
- Total assets increased to $7.95 billion at the end of the quarter from $7.63 billion at the end of 2006
This document is an SEC Form 10-Q quarterly report filed by Xcel Energy Inc. for the quarter ended June 30, 2002. It includes consolidated statements of income showing operating revenues and expenses for the quarter and year-to-date, resulting in operating income of $345.6 million and $673 million respectively. It also reports net income of $87.3 million for the quarter and $190.8 million year-to-date, as well as earnings available to common shareholders of $86.2 million and $188.7 million.
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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, 2005. It includes Illinois Tool Works' statement of income, statement of financial position, and statement of cash flows for the quarter, as well as notes about stock-based compensation. Key details include that net income for the quarter was $373.8 million, total assets as of June 30, 2005 were $11.6 billion, and stock-based compensation expense recognized for the quarter was $9 million for restricted stock and $11.2 million on a pro forma basis.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending 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 Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2003. It includes Illinois Tool Works' statement of income, balance sheet, cash flows statement, and notes to the financial statements. The statements show that for the quarter, Illinois Tool Works had revenues of $2.56 billion, operating income of $454 million, net income of $276 million, and earnings per share of $0.90. As of June 30, 2003, Illinois Tool Works had total assets of $11.26 billion and stockholders' equity of $7.30 billion.
This document is a quarterly financial report filed by Illinois Tool Works Inc. with the SEC for the third quarter of 2005. It includes the company's statement of income, balance sheet, and statement of cash flows for the periods presented. The key details are:
- Net income for Q3 2005 was $408.2 million, up from $330.1 million in Q3 2004.
- Revenue for the first nine months of 2005 was $9.6 billion, up from $8.7 billion in the same period of 2004.
- Total assets as of September 30, 2005 were $11.2 billion, compared to $11.4 billion as of December 31, 2004.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended March 31, 2005. It includes the company's unaudited financial statements, including the income statement, balance sheet, cash flow statement, and notes. The financial statements show that for the quarter ITW reported revenues of $3.07 billion, net income of $312 million, and diluted EPS of $1.06. Cash flow from operations was $303 million. The balance sheet lists total assets of $12 billion including $1.1 billion of cash, and total liabilities and equity of $12 billion.
This document is a quarterly report filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarter ended June 30, 2006. It includes financial statements such as the statement of income, statement of financial position, statement of cash flows, and notes to the financial statements. The financial statements show that for the quarter ended June 30, 2006, Illinois Tool Works had operating revenues of $3.6 billion, net income of $466 million, and earnings per share of $0.82. Total assets as of June 30, 2006 were $12.5 billion.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended June 30, 2007. The report includes Illinois Tool Works' consolidated statement of income, financial position, cash flows, and notes to the financial statements for the quarter. Key details include operating revenues of $4.16 billion for the quarter, net income of $505.6 million, total assets of $14.64 billion, and goodwill and intangible asset impairment charges totaling $2.15 million recorded in the first quarter of 2007.
This document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended June 30, 2008. It includes Illinois Tool Works' condensed financial statements, including statements of income, financial position, and cash flows for the relevant periods. It also notes that the company completed some divestitures in 2007 and has classified other businesses as held for sale. The financial statements provide key financial information on Illinois Tool Works' performance, financial condition, and cash flows for the periods presented.
The document is Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ending September 30, 2003. It includes the company's unaudited financial statements and notes. The financial statements show that for the quarter, ITW reported revenues of $2.5 billion, operating income of $426.7 million, net income of $268.9 million, and basic earnings per share of $0.88. For the nine months ending September 30, revenues were $7.4 billion, operating income was $1.2 billion, net income was $740.4 million, and basic EPS was $2.41.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended March 31, 2006. It includes financial statements such as the Statement of Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements. The financial statements show that for the quarter ended March 31, 2006, Illinois Tool Works had operating revenues of $3.3 billion, net income of $366.5 million, and cash and equivalents of $454.5 million.
The document is Illinois Tool Works Inc.'s quarterly financial report for the period ending March 31, 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 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 Form 10-Q filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarterly period ended June 30, 2002. The summary includes:
- Illinois Tool Works reported net income of $267.5 million for the quarter on revenues of $2.43 billion. For the six months ended June 30, 2002, net income was $244.1 million on revenues of $4.64 billion.
- Earnings per share from continuing operations for the quarter were $0.87, and $1.50 for the six months.
- The filing includes Illinois Tool Works' consolidated statement of income, balance sheet, and cash flows for the periods, as well as
This document is Form 10-Q filed by Illinois Tool Works Inc. with the Securities and Exchange Commission for the quarterly period ended June 30, 2002. The summary includes:
- Illinois Tool Works reported net income of $267.5 million for the quarter on revenues of $2.43 billion. For the six months ended June 30, 2002, net income was $244.1 million on revenues of $4.64 billion.
- Earnings per share from continuing operations for the quarter were $0.87, and $1.50 for the six months.
- The filing includes Illinois Tool Works' consolidated statement of income, balance sheet, and cash flows for the periods, as well as
This document 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 Illinois Tool Works Inc.'s quarterly report filed with the SEC for the quarter ended September 30, 2007 on Form 10-Q. It includes the company's unaudited financial statements and notes. The financial statements show operating revenues of $4.1 billion for the quarter and $12 billion for the nine months ended September 30, 2007. Net income was $491 million for the quarter and $1.4 billion for the nine months. Goodwill amortization and impairment charges were $39 million for the quarter and $119 million for the nine months.
This document is a Form 10-Q quarterly report filed by Illinois Tool Works Inc. with the SEC for the quarter ended September 30, 2007. It includes Illinois Tool Works' statement of income and statement of financial position for this quarter. The statement of income shows revenues of $4.1 billion and net income of $491 million. The statement of financial position lists the company's assets of $14.9 billion including cash, receivables, inventory and plant/equipment. It also lists liabilities of $5.4 billion including debt and payables, and stockholders' equity of $9.4 billion.
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 provides consolidated financial highlights for Burlington Northern Santa Fe Corporation for the years 1991-1995. Some key points:
- Revenues grew from $4.559 billion in 1991 to $6.183 billion in 1995. Operating income improved from a loss of $239 million in 1991 to income of $526 million in 1995, excluding unusual merger-related charges.
- Net income was $92 million in 1995 but would have been $416 million without accounting changes and debt retirement costs related to the merger.
- Capital expenditures were $1.042 billion in 1995 and are planned to be nearly $1.7 billion in 1996 to support revenue growth and cost reduction initiatives.
This document summarizes the financial performance of Burlington Northern Santa Fe Corporation for the years 1992-1996. It reports that in 1996:
- Operating income increased 14% to $1.75 billion compared to 1995 on a comparable basis.
- Revenues reached $8.19 billion despite a drop in agricultural commodities revenues.
- Operating expenses were $178 million below 1995 levels, lowering the operating ratio to 78.6%.
- Net income grew 21% to $889 million, or $5.70 per share, compared to $733 million in 1995.
This annual report summarizes Burlington Northern Santa Fe Corporation's financial and operational performance in 1998. Some key highlights include:
- Revenues reached a record $8.94 billion, a 6.8% increase over 1997.
- Adjusted operating income grew 16% to a record $2.16 billion.
- Adjusted net income exceeded $1.12 billion, a 19% improvement over 1997.
- The operating ratio improved to 75.9%, nearly 2 points better than 1997's adjusted ratio.
- Safety continued to improve, with reductions in reportable injuries and rail accidents.
Burlington Northern Santa Fe Corporation's 1999 Annual Report summarizes the company's performance in 1999 and compares it to 1994, the year before the BNSF merger. Key points:
1) BNSF achieved record results in safety, customer service, efficiency and financial performance in 1999 compared to 1994.
2) Safety metrics like lost workdays and injuries dropped significantly. Customer service improved with 91% on-time performance. Operating expenses per ton-mile dropped 20-25%.
3) Financial results were also much stronger, with operating income reaching a record $2.24 billion, up 14% annually from 1994. The operating ratio improved 9 points to 75.4%.
Burlington Northern Santa Fe Corporation's 2000 Annual Report summarizes the company's performance for the year. Key points include:
- Revenues grew to $9.2 billion while operating expenses only increased 1% despite a $230 million rise in fuel costs.
- Intermodal revenues increased 6% to a record level while safety and efficiency improvements were made.
- However, weak coal demand, high fuel prices, and a slow US economy impacted results for the year.
- Over the past five years since the Burlington Northern and Santa Fe merger, significant progress has been made in safety, service, efficiency and financials.
This document is the 2001 Annual Report to Shareholders for Burlington Northern Santa Fe Corporation. It contains the following key information:
1) The CEO discusses BNSF's progress on its strategic priorities of People, Growth, Ease of Doing Business, Service, and Efficiency in 2001, noting challenges from the economic slowdown but some record achievements.
2) Safety improvements were made but injuries remained level, while discussions progressed with unions on safety agreements.
3) Revenues were flat in 2001 due to economic conditions, but some business lines like Mexico grew, and new customers and services helped capture additional market share.
4) Financial results disappointed expectations for revenue and operating ratio goals, though costs
BNSF is a major railroad network in the United States that transports a variety of goods. In 2003, BNSF saw revenue growth of 5% driven by strong intermodal growth, though on-time performance fell short of goals. Safety performance reached record levels with injury rates down significantly. Looking forward, BNSF aims to continue revenue growth through initiatives like expanding intermodal capacity and pursuing market-based pricing across all business lines.
Burlington Northern Santa Fe Corporation reported earnings of $0.36 per diluted share for the first quarter of 2001, compared to $0.55 per diluted share for the same period in 2000. Freight revenues were $2.26 billion, up slightly due to a 4% increase in ton-miles. Operating expenses increased 7% to $1.87 billion due to higher fuel costs, severe winter weather, and increased energy costs. The operating ratio was 81.5% compared to 77.3% in 2000. Revenue from agricultural commodities increased 11% while industrial revenues declined 3% and coal revenues declined 1% compared to the first quarter of 2000.
The document is Burlington Northern Santa Fe Corporation's 2nd Quarter 2001 Investors' Report. It summarizes that:
1) Earnings were $0.50 per diluted share compared to $0.53 per diluted share in the same period last year, with revenues remaining even despite 2% higher ton-miles.
2) Operating expenses were $65 million higher due to factors like flooding in the Midwest and higher fuel costs.
3) Operating income decreased to $428 million from $483 million last year, and the operating ratio increased to 80.9% from 78.4% last year.
The document is Burlington Northern Santa Fe Corporation's third quarter 2001 investors' report. Key points:
- Earnings per share were $0.58 compared to $0.64 in third quarter 2000. Freight revenues were $2.31 billion, even with last year.
- Operating expenses were higher by $69 million due to increased compensation, benefits, and fuel costs. Operating income was $502 million versus $571 million in 2000.
- 4.1 million shares were repurchased in the quarter, bringing the total under the buyback program to 101.1 million shares.
- The report provides financial statements and statistics on revenues, expenses, operations, and capital expenditures for
This document provides an annual investors' report for Burlington Northern Santa Fe Corporation for 2001. It includes key financial information such as earnings results for Q4 and full year 2001, operating revenues and expenses, balance sheet information, and cash flow information. Specifically, it notes that Q4 2001 earnings were $0.46 per share including workforce reduction costs, or $0.57 per share excluding those costs. For the full year, earnings were $1.87 per share including unusual items, or $2.08 per share excluding unusual items. It also highlights free cash flow of $443 million for the full year, up 3% from 2000.
1. Burlington Northern Santa Fe reported first quarter 2002 earnings of $0.45 per share, up from $0.34 per share in first quarter 2001, which included non-recurring losses.
2. Freight revenues decreased 6% to $2.14 billion due to softer demand across all major product sectors and mild winter weather reducing coal shipments.
3. Operating expenses decreased 4% to $1.8 billion due to reductions in fuel costs, compensation, and equipment rents, partially offsetting the revenue decline.
Burlington Northern Santa Fe reported earnings of $0.51 per share for Q2 2002, up slightly from $0.50 per share in Q2 2001. Freight revenues were $2.18 billion, down 3% from the previous year, with declines in coal, agricultural products, and industrial products offsetting growth in consumer products. Operating expenses decreased 2% despite lower fuel prices, helping maintain the operating ratio at 81.4%. The company also repurchased 4.2 million shares during the quarter.
The document is Burlington Northern Santa Fe Corporation's third quarter 2002 investors' report. It includes:
- BNSF reported earnings of $0.51 per share for Q3 2002, even with adjusted earnings of $0.56 per share for the same period in 2001.
- Freight revenues were $2.28 billion for Q3 2002, even with adjusted revenues of $2.28 billion for Q3 2001.
- Operating income decreased to $421 million for Q3 2002 compared to adjusted operating income of $470 million for Q3 2001, with the operating ratio increasing to 81.6% from 79.4%.
This document provides an annual investors' report for Burlington Northern Santa Fe Corporation for 2002. It includes:
1) Key financial highlights for Q4 2002 including $0.54 earnings per share, $2.27 billion in freight revenues, and $436 million in operating income.
2) Annual 2002 results including $2.00 earnings per share, $8.87 billion in freight revenues, and $1.66 billion in operating income.
3) Details of common stock repurchases totaling approximately 116 million shares under their repurchase program.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
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Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
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1. _____________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2004
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 July 30, 2004: 302,261,182.
1
2. Part I - Financial Information
Item 1
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 quot;Companyquot;).
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. Certain reclassifications of prior
years’ data have been made to conform with current year reporting.
2
3. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF INCOME
(UNAUDITED)
(In thousands except for per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating Revenues $3,002,271 $2,563,990 $5,712,620 $4,877,780
Cost of revenues 1,929,803 1,659,400 3,680,146 3,173,192
Selling, administrative, and research
and development expenses 502,880 445,677 986,221 915,365
Amortization and impairment of goodwill
and other intangible assets 8,052 4,847 37,075 14,157
Operating Income 561,536 454,066 1,009,178 775,066
Interest expense (18,991) (19,128) (34,873) (36,560)
Other income 3,505 2,007 11,170 5,323
Income from Continuing Operations Before
Income Taxes 546,050 436,945 985,475 743,829
Income Taxes 185,700 152,900 335,100 260,300
Income from Continuing Operations 360,350 284,045 650,375 483,529
Income (Loss) from Discontinued Operations - (7,941) 171 (12,048)
Net Income $ 360,350 $ 276,104 $ 650,546 $ 471,481
Income Per Share from Continuing Operations:
Basic $1.17 $ 0.93 $2.11 $ 1.58
Diluted $1.16 $ 0.92 $2.09 $ 1.57
Income (Loss) Per Share from Discontinued
Operations:
Basic $0.00 $(0.03) $0.00 $(0.04)
Diluted $0.00 $(0.03) $0.00 $(0.04)
Net Income Per Share:
Basic $1.17 $ 0.90 $2.11 $ 1.54
Diluted $1.16 $ 0.90 $2.10 $ 1.53
Cash Dividends:
Paid $0.24 $ 0.23 $0.48 $ 0.46
Declared $0.24 $ 0.23 $0.48 $ 0.46
Shares of Common Stock Outstanding During the
Period:
Average 308,086 306,789 308,168 306,711
Average assuming dilution 310,638 308,209 310,504 307,960
3
4. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
(In thousands)
ASSETS June 30, 2004 December 31, 2003
Current Assets:
Cash and equivalents $ 1,537,208 $ 1,684,483
Trade receivables 1,979,770 1,721,186
Inventories 1,098,222 991,979
Deferred income taxes 222,213 217,638
Prepaid expenses and other current assets 161,321 167,916
Total current assets 4,998,734 4,783,202
Plant and Equipment:
Land 157,357 135,357
Buildings and improvements 1,175,572 1,140,033
Machinery and equipment 3,116,210 3,046,688
Equipment leased to others 146,801 145,657
Construction in progress 113,078 93,694
4,709,018 4,561,429
Accumulated depreciation (2,917,688) (2,832,791)
Net plant and equipment 1,791,330 1,728,638
Investments 893,052 832,358
Goodwill 2,718,192 2,511,281
Intangible Assets 321,743 287,582
Deferred Income Taxes 366,446 370,737
Other Assets 760,912 679,523
$11,850,409 $11,193,321
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term debt $ 59,962 $ 56,094
Accounts payable 550,076 481,407
Accrued expenses 881,729 870,950
Cash dividends payable 73,571 73,948
Income taxes payable 224,477 6,504
Total current liabilities 1,789,815 1,488,903
Noncurrent Liabilities:
Long-term debt 923,510 920,360
Other 926,931 909,772
Total noncurrent liabilities 1,850,441 1,830,132
Stockholders' Equity:
Common stock 3,105 3,089
Additional paid-in-capital 894,625 825,924
Income reinvested in the business 7,440,056 6,937,110
Common stock held in treasury (260,682) (1,648)
Accumulated other comprehensive income 133,049 109,811
Total stockholders' equity 8,210,153 7,874,286
$11,850,409 $11,193,321
4
5. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
STATEMENT OF CASH FLOWS
(UNAUDITED)
(In thousands)
Six Months Ended
June 30
2004 2003
Cash Provided by (Used for) Operating Activities:
Net income $ 650,546 $ 471,481
Adjustments to reconcile net income to net cash provided by operating activities:
(Income) loss from discontinued operations (171) 12,048
Depreciation 144,554 138,683
Amortization and impairment of goodwill and other intangible assets 37,075 14,157
Change in deferred income taxes (6,212) 9,087
Provision for uncollectible accounts 2,405 4,473
Loss on sale of plant and equipment 2,561 2,379
Income from investments (87,370) (93,378)
Non-cash interest on nonrecourse notes payable - 18,696
Gain on sale of operations and affiliates (477) (1,427)
Amortization of restricted stock 16,399 8,940
Other non-cash items, net 4,442 253
Changes in assets and liabilities:
(Increase) decrease in--
Trade receivables (177,073) (72,673)
Inventories (60,771) 35,382
Prepaid expenses and other assets (68,291) (15,200)
Net assets of discontinued operations - 3,210
Increase (decrease) in--
Accounts payable 23,056 (25,506)
Accrued expenses and other liabilities (7,449) (40,649)
Income taxes payable 223,254 23,482
Other, net 40 62
Net cash provided by operating activities 696,518 493,500
Cash Provided by (Used for) Investing Activities:
Acquisition of businesses (excluding cash and
equivalents) and additional interest in affiliates (376,799) (74,265)
Additions to plant and equipment (129,772) (122,138)
Purchase of investments (28,694) (40,852)
Proceeds from investments 38,452 23,041
Proceeds from sales of plant and equipment 7,806 10,122
Net settlement from sales of operations and affiliates 3,395 (2,506)
Other, net 8,834 708
Net cash used for investing activities (476,778) (205,890)
Cash Provided by (Used for) Financing Activities:
Cash dividends paid (147,976) (141,049)
Issuance of common stock 50,524 9,065
Purchase of treasury shares through repurchase program (259,110) -
Net repayments of short-term debt (7,332) (33,822)
Proceeds from long-term debt 34 1,034
Repayments of long-term debt (4,248) (6,374)
Other, net - (269)
Net cash used for financing activities (368,108) (171,415)
Effect of Exchange Rate Changes on Cash and Equivalents 1,093 60,186
Cash and Equivalents:
Increase (decrease) during the period (147,275) 176,381
Beginning of period 1,684,483 1,057,687
End of period $1,537,208 $1,234,068
Cash Paid During the Period for Interest $ 36,616 $ 38,390
Cash Paid During the Period for Income Taxes $ 107,163 $ 218,855
Liabilities Assumed from Acquisitions $ 111,190 $ 18,689
5
6. ILLINOIS TOOL WORKS INC. and SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) STOCK-BASED COMPENSATION:
Stock options have been issued to officers and other management employees under ITW’s 1996 Stock Incentive Plan and Premark’s
1994 Incentive Plan. The stock options generally vest over a four-year period.
The Company accounts for stock-based compensation in accordance with Accounting Principles Board Opinion No. 25, Accounting
for Stock Issued to Employees, using the intrinsic value method, which does not require that compensation cost be recognized for
stock options.
The Company’s net income and earnings per share would have been reduced to the amounts shown below if compensation cost related
to stock options had been determined based on fair value at the grant dates in accordance with Statement of Financial Accounting
Standards No. 123, Accounting for Stock-Based Compensation (“SFAS 123”).
The pro forma net income effect of applying SFAS 123 was as follows:
(In thousands except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Net income as reported $360,350 $276,104 $650,546 $471,481
Add: Restricted stock recorded as expense, net of tax 5,868 2,870 11,869 5,753
Deduct: Total stock-based employee compensation expense,
net of tax (10,478) (8,623) (21,089) (17,259)
Pro forma net income $355,740 $270,351 $641,326 $459,975
Net income per share:
Basic – as reported $1.17 $0.90 $2.11 $1.54
Basic – pro forma $1.15 $0.88 $2.08 $1.50
Diluted – as reported $1.16 $0.90 $2.10 $1.53
Diluted – pro forma $1.15 $0.88 $2.07 $1.49
On January 2, 2003 and 2004, the Company granted 792,158 and 553,981 shares of restricted stock, respectively, to domestic key
employees. Compensation expense related to these grants is being recorded over the three-year vesting period as follows:
(In thousands)
January 2, 2003 January 2, 2004
Grant Grant Total
2003 $17,438 $ - $17,438
2004 17,015 15,289 32,304
2005 17,015 15,289 32,304
2006 - 15,289 15,289
$51,468 $45,867 $97,335
(2) INVENTORIES:
Inventories at June 30, 2004 and December 31, 2003 were as follows:
(In thousands)
June 30, 2004 December 31, 2003
Raw material $ 334,937 $286,550
Work-in-process 103,173 102,267
Finished goods 660,112 603,162
$1,098,222 $991,979
6
7. (3) COMPREHENSIVE INCOME:
The Company’s only component of other comprehensive income in the periods presented is foreign currency translation adjustments.
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Net income $360,350 $276,104 $650,546 $471,481
Foreign currency translation
adjustments, net of tax (95,982) 159,724 23,238 298,525
Total comprehensive income $264,368 $435,828 $673,784 $770,006
(4) INVESTMENTS:
In 1995, 1996 and 1997, the Company, through its investments in separate mortgage entities, acquired pools of mortgage-related
assets in exchange for aggregate nonrecourse notes payable of $739,705,000, preferred stock of subsidiaries of $60,000,000 and cash
of $240,000,000. The mortgage-related assets acquired in these transactions relate to office buildings, apartment buildings and
shopping malls located throughout the United States. In conjunction with these transactions, the mortgage entities simultaneously
entered into ten-year swap agreements and other related agreements whereby a third party receives the portion of the interest and net
operating cash flow from the mortgage-related assets in excess of $26,000,000 per year and a portion of the proceeds from the
disposition of the mortgage-related assets and principal repayments, in exchange for the third party making the contractual principal
and interest payments on the nonrecourse notes payable. In addition, in the event that the pools of mortgage-related assets do not
generate interest and net operating cash flow of $26,000,000 a year, the Company has the right to receive the shortfall from the cash
flow generated by three separate pools of mortgage-related assets (owned by third parties in which the Company has minimal
interests) which have a total fair value of approximately $1,600,000,000 at December 31, 2003. The mortgage entities entered into the
swaps and other related agreements in order to reduce their real estate, credit and interest rate risks relative to the mortgage-related
assets and related nonrecourse notes payable.
As of June 30, 2004 and December 31, 2003, the book value of the assets held by the mortgage entities was as follows:
(In thousands)
June 30, 2004 December 31, 2003
Cash on hand from dispositions $402,560 $ 89,703
Real estate (30 and 37 properties, respectively) 394,597 646,269
Mortgage loans (5 loans for both periods) 78,645 79,820
Other assets 8,343 8,343
$884,145 $824,135
Assuming all assets become worthless and the swap counterparty defaults, the Company’s maximum exposure to loss related to the
mortgage entities is limited to its investment of $369,117,000 at June 30, 2004.
On July 1, 2003, the Company adopted FASB Interpretation No. 46, Consolidation of Variable Interest Entities— (“FIN 46”) relative
to its investments in the mortgage entities. FIN 46 requires consolidation of variable interest entities in which a company has a
controlling financial interest, even if it does not have a majority voting interest. A company is deemed to have a controlling financial
interest in a variable interest entity if it has either the majority of the risk of loss or the majority of the residual returns. Upon its
adoption of FIN 46 for the mortgage investments as of July 1, 2003, the Company deconsolidated its investments in the mortgage
entities as the Company neither bears the majority of the risk of loss nor enjoys the majority of any residual returns. No gain or loss
was recognized in connection with this change in accounting. FIN 46 had no impact on the accounting or reporting for any of the other
investments.
Starting in the third quarter of 2003 and for subsequent periods, the Company accounts for its net investments in the mortgage entities
using the equity method of accounting as provided in Statement of Position 78-9, Accounting for Investments in Real Estate Ventures.
Under this method, the net mortgage investments are adjusted through income for changes in the Company’s share of the net assets of
the mortgage entities. The excess of the estimated liquidation value of the investments in the mortgage entities over their net book
value as of July 1, 2003 of $178,333,000 will be recognized as income over the remaining term of each of the investments. The
remaining amount of this excess liquidation value over book value at June 30, 2004 and December 31, 2003 was as follows:
7
8. (In thousands)
June 30, 2004 December 31, 2003
Mortgage transaction ending December 31, 2005 $ 33,258 $ 59,998
Mortgage transaction ending December 31, 2006 43,196 56,079
Mortgage transaction ending February 28, 2008 34,628 40,293
$111,082 $156,370
Prior to the adoption of FIN 46 for the mortgage investments as of July 1, 2003, the principal mortgage-related assets were accounted
for as follows:
Commercial mortgage loans - Interest income was recorded based on the effective yield determined at the inception of the
commercial mortgage transactions. The Company evaluated whether the commercial mortgage loans had been impaired by
reviewing the discounted estimated future cash flows of the loans versus the carrying value of the loans. If the carrying value
exceeded the discounted cash flows, an impairment loss was recorded through the operating income of the Leasing and
Investments segment. Interest income was recognized on impaired mortgage loans based on the original effective yield of the
loans. Loans that were foreclosed were transferred to commercial real estate at carrying value.
Commercial real estate - Recorded at cost and depreciated on a straight-line basis over an estimated useful life of 39 years. At
least annually, the real estate assets were evaluated for impairment by comparing estimated future undiscounted cash flows to the
carrying values. If the undiscounted future cash flows were less than the carrying value, an impairment loss was recorded equal
to the difference between the estimated fair value and the carrying value of the impaired asset. Gains and losses were recorded
on the sale of the real estate assets through the operating income of the Leasing and Investments segment based on the proceeds
of the sale compared with the carrying value of the asset sold.
Net swap receivables - Recorded at fair value, based on the estimated future cash flows discounted at current market interest
rates. All estimated future cash flows were provided by the swap counter party, who also is the servicer of the mortgage loans and
real estate. Market interest rates for the swap inflows were based on the current market yield of a bond of the swap counter party.
Discount rates for the swap outflows were based on an estimate of risk-adjusted rates for real estate assets. Any adjustments to
the carrying value of the net swap receivables due to changes in expected future cash flows, discount rates or interest rates were
recorded through the operating income of the Leasing and Investment segment.
The property development partnerships and affordable housing limited partnerships in which the Company has invested are also
considered variable interest entities under FIN 46. Because the Company does not bear the majority of the risk of loss nor enjoys the
majority of any residual returns relative to these variable interest entities, the Company was not required to consolidate the entities
upon its adoption of FIN 46. The Company will continue to account for the property development investments using the equity
method and the affordable housing investments using the effective yield method. The Company’s maximum exposure to loss related
to these investments is generally limited to their carrying values of $16,259,000 and $98,294,000, respectively, as of June 30, 2004.
(5) 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. The Company performs an annual impairment assessment of goodwill and
intangible assets with indefinite lives in the first quarter of each year, based on the fair value of the related reporting unit or
intangible asset.
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 fair value of the unit’s goodwill and intangible assets and the carrying value of those assets.
8
9. Amortization and impairment of goodwill and other intangible assets for the periods ended June 30, 2004 and 2003 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Goodwill:
Impairment $ - $ - $11,492 $ 702
Intangible Assets:
Amortization 8,052 4,847 15,363 9,694
Impairment - - 10,220 3,761
Total $8,052 $4,847 $37,075 $14,157
In the first quarter of 2004, the Company performed its annual impairment testing of its goodwill and intangible assets, which resulted
in impairment charges of $21,712,000. The first quarter 2004 goodwill impairment charges of $11,492,000 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.
In the first quarter of 2003, the Company recorded a goodwill impairment charge of $702,000 related to a U.S. welding components
business, which primarily resulted from lower estimated future cash flows than previously expected. Also in the first quarter of 2003,
intangible asset impairment charges of $3,761,000 were recorded to reduce to estimated fair value the carrying value of trademarks
and brands related to several U.S. welding components businesses in the Specialty Systems-North America segment and a U.S.
business that manufactures clean room mats in the Engineered Products-North America segment.
(6) RETIREMENT PLANS AND POSTRETIREMENT BENEFITS:
Pension and other postretirement benefit costs for the periods ended June 30, 2004 and 2003 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
Other Postretirement Other Postretirement
Benefits Benefits
Pension Pension
2004 2003 2004 2003 2004 2003 2004 2003
Components of net
periodic benefit cost:
Service cost $19,569 $17,519 $ 3,368 $ 3,145 $39,133 $34,970 $ 6,789 $ 6,290
Interest cost 20,573 19,425 8,667 7,730 41,210 38,787 17,228 15,460
Expected return on plan
assets (29,458) (25,568) (867) (320) (58,960) (51,112) (1,733) (640)
Amortization of actuarial
loss 1,246 879 1,398 232 2,500 1,752 2,827 464
Amortization of prior
service cost (income) (576) (586) 1,684 1,642 (1,152) (1,173) 3,368 3,285
Amortization of net
transition amount (34) (218) - - (68) (426) - -
Settlement/curtailment
loss - - - - 58 - - -
Net periodic benefit cost $11,320 $11,451 $14,250 $12,429 $22,721 $22,798 $28,479 $24,859
The net periodic benefit cost for other postretirement benefits does not include the impact of the Medicare Prescription Drug,
Improvement and Modernization Act (the Act) of 2003. Deferring the recognition of the New Medicare provisions’ impact until the
next measurement of the plan assets and obligations is permitted by Financial Accounting Standards Board Staff Position 106-b if the
effects of the Act cause the employer to conclude that enactment of the Act was not a “significant event.” The impact of these new
Medicare provisions will reduce the net periodic benefits reported above, but such reduction will not be significant.
9
10. The Company previously disclosed in its financial statements for the year ended December 31, 2003 that it expected to contribute
$110,985,000 to its pension plans in 2004. As of June 30, 2004, $108,662,000 of contributions have been made. The Company
presently anticipates contributing an additional $11,472,000 to fund its plans in 2004 for a total of $120,134,000.
(7) SHORT-TERM DEBT:
In 2003, the Company entered into a $400,000,000 Line of Credit Agreement, with a termination date of June 18, 2004. This line of
credit was replaced on June 18, 2004, by a $400,000,000 Line of Credit Agreement with a termination date of June 17, 2005.
(8) STOCK REPURCHASE PROGRAM:
On April 19, 2004 the Company’s Board of Directors authorized a stock repurchase program, which provides for the buy back of up to
31,000,000 shares. During the second quarter, the Company repurchased 2,811,700 shares of its common stock for $259,110,000 at an
average price of $92.15 per share.
(9) CONTINGENCIES:
Wilsonart International, Inc. a wholly owned subsidiary of ITW (“Wilsonart”), is a defendant in a consolidated class action lawsuit
filed in June 2000 in federal district court in White Plains, New York on behalf of purchasers of high-pressure laminates. The
complaint alleges that Wilsonart participated in a conspiracy with competitors to fix, raise, maintain or stabilize prices for high-
pressure laminates between January 1, 1994 and June 30, 2000, and seeks injunctive relief as well as treble damages and other costs
associated with the litigation. Indirect purchasers of high-pressure laminates filed similar purported class action cases under various
state antitrust and consumer protection statutes in Arizona, California, the District of Columbia, Florida, Maine, Michigan, Minnesota,
New Mexico, North Carolina, North Dakota, South Dakota, Tennessee, West Virginia and Wisconsin. All of the state cases have been
stayed, and certain plaintiffs have opted not to participate in the class litigation. These lawsuits were brought following the
commencement of a federal grand jury investigation of price-fixing in the high-pressure laminate industry, which was subsequently
closed by the Department of Justice with no further proceedings and with all documents returned to the parties involved. The
Company believes that these antitrust claims are without merit.
On April 30, 2004, Wilsonart presented and argued its motion for summary judgment in the consolidated class action lawsuit. To date
no decision has been rendered on this motion. On April 29, 2004, International Paper Company, one of the defendants in the
consolidated class action case, received preliminary approval of a settlement agreement with the plaintiffs. That settlement agreement,
dated as of April 23, 2004 received final court approval on July 14, 2004 and, provides, among other things, for the payment to the
class members in the consolidated class actions of $31,000,000. In addition, on July 14, 2004 the plaintiffs sought preliminary
approval of a settlement with Panolam International, Inc., another defendant in the case, for $9,500,000. However, the Court set the
matter for a hearing on September 30, 2004. While no assurances can be given regarding the ultimate outcome or the timing of the
resolution of these claims, the Company 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 is currently unable to determine a range of its possible exposure for
this litigation.
(10) SEGMENT INFORMATION:
See Management’s Discussion and Analysis for information regarding operating revenues and operating income for the Company’s
segments.
10
11. Item 2 - Management's Discussion and Analysis
CONSOLIDATED RESULTS OF OPERATIONS
The Company’s consolidated results of operations for the second quarter and year-to-date periods of 2004 and 2003 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating revenues $3,002,271 $2,563,990 $5,712,620 $4,877,780
Operating income 561,536 454,066 1,009,178 775,066
Margin % 18.7% 17.7% 17.7% 15.9%
In the second quarter and year-to-date periods of 2004, the changes in revenue, operating income and operating margins over the prior
year are primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point Increase % Point Increase
(Decrease) (Decrease)
% Increase (Decrease) % Increase (Decrease)
Operating Operating Operating Operating Operating Operating
Revenue Income Margins Revenue Income Margins
Base manufacturing business:
Volume-related 8.4% 19.1% 1.8% 7.5% 18.8% 1.7%
Nonvolume-related - (2.8) (0.5) - 1.1 0.2
Total 8.4 16.3 1.3 7.5 19.9 1.9
Restructuring - 1.9 0.3 - 3.1 0.5
Impairment of goodwill and intangibles - - - - (2.2) (0.3)
Acquisitions and divestitures 5.7 2.4 (0.6) 4.9 2.8 (0.4)
Translation 4.2 3.8 (0.1) 5.4 4.8 (0.2)
Leasing and Investments (0.5) (0.7) - (0.1) 1.8 0.3
Other (0.7) - 0.1 (0.6) - -
Total 17.1% 23.7% 1.0% 17.1% 30.2% 1.8%
The base business revenue increase in the second quarter and year-to-date periods is primarily related to revenue increases in North
America of 10% and 9%, respectively. Industrial production levels continue to improve, building on growth seen in the fourth quarter
of 2003 and the first quarter of 2004. Improvement was evident in both the North American Engineered Products and Specialty
Systems segments. Internationally, base business revenues increased 6% in the second quarter and 4% for the year-to-date period as
industrial production showed slight improvement in the major European economies.
Operating income for the second quarter and year-to-date periods improved primarily due to leverage from the growth in base
business revenue, favorable currency translation and income from acquired companies.
As a result of the Company’s annual impairment testing of its goodwill and intangible assets, impairment charges of $21.7 million
were incurred in the first quarter of 2004. The impaired assets reflected diminished expectations of future cash flows and primarily
related to a European automotive components business, several U.S. welding components businesses, a U.S. electrical components
business and a U.S. business that manufactures clean room mats.
11
12. 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 period of time of less than 30 days.
In the plastic and metal components and fasteners category, products include:
• metal fasteners and fastening tools for the commercial and residential construction industries;
• laminate products for the commercial and residential construction industries and furniture markets;
• 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 for industrial purposes;
• chemical fluids which clean or add lubrication to machines;
• adhesives for industrial, construction and consumer purposes;
• epoxy and resin-based coating products for industrial applications; and
• components for industrial machines.
This segment primarily serves the construction, automotive and general industrial markets.
The results of operations for the Engineered Products – North America segment for the second quarter and year-to-date periods of
2004 and 2003 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating revenues $845,360 $781,713 $1,641,981 $1,530,498
Operating income 149,661 133,340 282,430 244,487
Margin % 17.7% 17.1% 17.2% 16.0%
In the second quarter and year-to-date periods of 2004, the changes in revenue, operating income and operating margins over the prior
year are primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point Increase % Point Increase
% Increase (Decrease) (Decrease) % Increase (Decrease) (Decrease)
Operating Operating Operating Operating Operating Operating
Revenue Income Margins Revenue Income Margins
Base manufacturing business:
Volume-related 8.5% 20.6% 1.9% 7.6% 19.8% 1.8%
Nonvolume-related - (11.1) (1.8) - (6.5) (1.0)
Total 8.5 9.5 0.1 7.6 13.3 0.8
Restructuring - 3.1 0.5 - 4.0 0.6
Impairment of goodwill and intangibles - - - - (2.6) (0.4)
Acquisitions and divestitures (0.4) (0.4) - (0.5) 0.5 0.2
Translation - - - 0.2 0.3 -
Total 8.1% 12.2% 0.6% 7.3% 15.5% 1.2%
Construction base revenues increased 11% for the second quarter and 10% for the year-to-date period primarily as a result of growth
in the residential, remodeling/rehab and commercial construction markets. Automotive base revenues increased 3% for the second
quarter and 1% for the year-to-date period due to increased penetration, despite 3% and 2% declines in automotive production at the
12
13. large North American automotive manufactures in the first and second quarters of 2004, respectively. Revenues from the other
industrial-based businesses in this segment increased 10% in both the second quarter and year-to-date periods as they benefited from
increased demand in a broad array of end markets.
Operating income increased in the second quarter and year-to-date periods primarily due to leverage from the increase in base
business revenues described above and lower restructuring expenses. These increases were partially offset for both periods by a
second quarter $10 million charge associated with a warranty issue related to a discontinued product at the Wilsonart laminate
business. Also partially offsetting the base business increases in the year-to-date period were first quarter 2004 goodwill and
intangible asset impairment charges of $7 million, primarily related to the goodwill of a U.S. electrical components business and the
trademarks and brands of a U.S. manufacturer of clean room mats. In addition, variable margins declined .5% in both the second
quarter and year-to-date periods, primarily due to steel raw material price increases.
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 period of time of less than 30 days.
In the plastic and metal components and fastener category, products include:
• metal fasteners and fastening tools for the commercial and residential construction industries;
• laminate products for the commercial and residential construction industries and furniture markets;
• 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.
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 household purposes;
• chemical fluids which clean or add lubrication to machines; and
• epoxy and resin-based coating products for industrial applications.
This segment primarily serves the construction, automotive and general industrial markets.
The results of operations for the Engineered Products – International segment for the second quarter and year-to-date periods of 2004
and 2003 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating revenues $645,613 $470,790 $1,163,598 $876,577
Operating income 101,118 68,175 165,006 110,558
Margin % 15.7% 14.5% 14.2% 12.6%
13
14. In the second quarter and year-to-date periods of 2004, the changes in revenue, operating income and operating margins over the prior
year are primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point Increase % Point Increase
(Decrease) (Decrease)
% Increase (Decrease) % Increase (Decrease)
Operating Operating Operating Operating Operating Operating
Revenue Income Margins Revenue Income Margins
Base manufacturing business:
Volume-related 9.8% 27.2% 2.3% 8.0% 25.3% 2.0%
Nonvolume-related - (0.2) - - 4.9 0.6
Total 9.8 27.0 2.3 8.0 30.2 2.6
Restructuring - (2.1) (0.3) - 1.3 0.2
Impairment of goodwill and intangibles - - - - (7.7) (1.0)
Acquisitions and divestitures 15.5 9.5 (0.9) 9.7 7.0 (0.4)
Translation 11.8 13.9 0.1 15.0 18.4 0.2
Total 37.1% 48.3% 1.2% 32.7% 49.2% 1.6%
Revenues increased in the second quarter and year-to-date periods of 2004 due to increased base business revenues, higher acquisition
revenues, and the favorable effect of currency translation, primarily as a result of the Euro strengthening versus the U.S. dollar. Base
business construction revenues increased 12% in the second quarter and 8% year-to-date due to a rise in commercial construction
activity in Europe, as well as increased commercial and residential demand in the Australasia region. In addition, automotive revenues
grew 7% and 8% in the second quarter and year-to-date periods, respectively, primarily due to increased penetration at the European
automotive manufacturers. The other businesses in this segment serve a broad array of industrial and commercial markets, and
revenues from these businesses increased 8% for the second quarter and 5% for the year-to-date period.
Operating income in the second quarter and year-to-date periods increased primarily due to leverage from the increase in base
business revenues described above, the favorable effect of currency translation and increased income from acquisitions. These
increases were partially offset in the second quarter by higher restructuring expenses. In addition, year-to-date income was adversely
affected by a goodwill impairment charge of $8.5 million incurred in the first quarter of 2004 primarily related to diminished cash
flow expectations of a European automotive components business.
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’ production process and typically are manufactured and delivered in a period of time 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 retail and service, general industrial, construction, and food and beverage markets.
14
15. The results of operations for the Specialty Systems – North America segment for the second quarter and year-to-date periods of 2004
and 2003 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating revenues $972,234 $842,234 $1,904,685 $1,637,060
Operating income 177,740 142,651 333,835 253,990
Margin % 18.3% 16.9% 17.5% 15.5%
In the second quarter and year-to-date periods of 2004, the changes in revenue, operating income and operating margins over the prior
year are primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point Increase % Point Increase
(Decrease) (Decrease)
% Increase (Decrease) % Increase (Decrease)
Operating Operating Operating Operating Operating Operating
Revenue Income Margins Revenue Income Margins
Base manufacturing business:
Volume-related 10.8% 26.7% 2.4% 11.0% 29.9% 2.6%
Nonvolume-related - (4.2) (0.6) - (0.9) (0.1)
Total 10.8 22.5 1.8 11.0 29.0 2.5
Restructuring - (0.3) - - (0.2) -
Impairment of goodwill and intangibles - - - - (0.9) (0.1)
Acquisitions and divestitures 4.6 2.3 (0.4) 4.9 3.1 (0.4)
Translation - 0.1 - 0.4 0.4 -
Total 15.4% 24.6% 1.4% 16.3% 31.4% 2.0%
Base business revenue growth in the second quarter and year-to-date periods of 2004 is primarily due to an increase in demand in most
of the end markets that this segment serves. Welding revenues increased 27% in the second quarter and 28% for the year-to-date
period, industrial packaging revenues increased 11% in both periods, and revenues in the other businesses in this segment increased
10% in the second quarter of 2004 and 9% year-to-date. Food equipment revenues declined 1% in the second quarter and were flat
year-to-date as demand for the retail portion of the business remained weak.
Operating income increased in 2004 primarily due to leverage from the base business revenue increases described above and increased
income from acquisitions. These increases were offset in the year-to-date period by goodwill and intangible asset impairment charges
of $6 million incurred in the first quarter of 2004. These charges primarily related to the diminished cash flow expectations at two
welding businesses and an industrial packaging unit.
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 period of time 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.
15
16. 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 retail and service, and food and beverage markets.
The results of operations for the Specialty Systems – International segment for the second quarter and year-to-date periods of 2004
and 2003 were as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating revenues $598,391 $498,415 $1,124,223 $923,538
Operating income 84,273 57,779 144,406 96,482
Margin % 14.1% 11.6% 12.8% 10.4%
In the second quarter and year-to-date periods of 2004, the changes in revenue, operating income and operating margins over the prior
year are primarily due to the following factors:
Three Months Ended June 30 Six Months Ended June 30
% Point
% Point Increase Increase
% Increase (Decrease) % Increase (Decrease)
(Decrease) (Decrease)
Operating Operating Operating Operating Operating Operating
Revenue Income Margins Revenue Income Margins
Base manufacturing business:
Volume-related 2.2% 7.0% 0.6% (0.3)% (0.9)% (0.1)%
Nonvolume-related - 12.4 1.4 - 16.1 1.7
Total 2.2 19.4 2.0 (0.3) 15.2 1.6
Restructuring - 10.6 1.2 - 14.1 1.5
Impairment of goodwill and intangibles - - - - (0.3) -
Acquisitions and divestitures 7.6 3.0 (0.7) 8.9 5.1 (0.6)
Translation 10.3 12.9 - 13.1 15.6 (0.1)
Total 20.1% 45.9% 2.5% 21.7% 49.7% 2.4%
Revenues increased in the second quarter and year-to-date periods of 2004 mainly due to favorable currency translation, primarily as a
result of the Euro strengthening versus the U.S. dollar. Acquisitions also increased revenues, primarily due to the July 2003
acquisition of an Asian manufacturer of welding consumables. Base business revenues increased in the second quarter and were flat
year-to-date. In the second quarter of 2004, food equipment and industrial packaging revenues increased 2% and 1%, respectively,
while each declined 1% year-to-date. Other base business revenues in this segment increased 5% in the second quarter and 1% year-
to-date.
Operating income increased in the second quarter and year-to-date periods of 2004 primarily as a result of favorable currency
translation, lower restructuring expenses, acquisitions, and the reduction of base business operating costs as a result of past
restructuring efforts.
LEASING AND INVESTMENTS
Businesses in this segment make investments in mortgage entities, leases of telecommunications, aircraft, air traffic control and other
equipment, properties and property developments, 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.
16
17. See the Company’s Annual Report to Stockholders for further information regarding these cash contractual obligations as of
December 31, 2003.
The results of operations for the Leasing and Investments segment for the second quarter and year-to-date periods of 2004 and 2003
were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating revenues $53,248 $65,825 $91,904 $96,275
Operating income 48,744 52,121 83,501 69,549
Operating income (loss) by investment for the second quarter and year-to-date periods of 2004 and 2003 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Mortgage investments $26,756 $43,966 $53,838 $52,510
Leases of equipment 5,757 4,976 11,392 10,032
Property developments 1,096 1,498 1,819 3,029
Properties held for sale 4,098 (673) 2,844 (1,529)
Venture capital limited partnership 10,316 (1,744) 11,546 (2,101)
Other 721 4,098 2,062 7,608
$48,744 $52,121 $83,501 $69,549
In the second quarter of 2004, operating income was lower than the prior year by $3.4 million due to swap mark-to-market income of
$39 million in 2003, partially offset by 2004 gains on the sales of two mortgage investment properties of $19.9 million, 2004 venture
capital income of $10.3 million and 2004 gains on the sales of idle properties of $5.1 million. For the year-to-date period, operating
income increased $14.0 million primarily due to the higher venture capital income.
In the second quarter of 2004, the market value of the Company’s share of the venture capital partnership increased due to the market
value of several of the partnership’s investments increasing as a result of these investments’ public offering of equity securities.
On July 1, 2003, the Company adopted FASB Interpretation No. 46, Consolidation of Variable Interest Entities – (“FIN 46”) relative
to its investments in mortgage entities. See the Investments note for further discussion of this change in accounting for these
investments.
OPERATING REVENUES
The reconciliation of segment operating revenues to total operating revenues is as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Engineered Products - North America $ 845,360 $ 781,713 $1,641,981 $1,530,498
Engineered Products – International 645,613 470,790 1,163,598 876,577
Specialty Systems - North America 972,234 842,234 1,904,685 1,637,060
Specialty Systems – International 598,391 498,415 1,124,223 923,538
Intersegment revenues (112,575) (94,987) (213,771) (186,168)
Total manufacturing operating revenues 2,949,023 2,498,165 5,620,716 4,781,505
Leasing and Investments 53,248 65,825 91,904 96,275
Total operating revenues $3,002,271 $2,563,990 $5,712,620 $4,877,780
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18. AMORTIZATION OF GOODWILL AND OTHER INTANGIBLE ASSETS
The Company no longer amortizes goodwill and intangible assets that have indefinite lives. The Company performs an annual
impairment assessment of goodwill and intangible assets with indefinite lives in the first quarter of each year, based on the fair value
of the related reporting unit or intangible asset.
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 fair value of the unit’s goodwill and intangible assets and the carrying value of those assets.
Amortization and impairment of goodwill and other intangible assets for the periods ended June 30, 2004 and 2003 were as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Goodwill:
Impairment $ - $ - $11,492 $ 702
Intangible Assets:
Amortization 8,052 4,847 15,363 9,694
Impairment - - 10,220 3,761
Total $8,052 $4,847 $37,075 $14,157
In the first quarter of 2004, the Company performed its annual impairment testing of its goodwill and intangible assets, which resulted
in impairment charges of $21.7 million. The 2004 goodwill impairment charges of $11.5 million 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.
In the first quarter of 2003, the Company recorded a goodwill impairment charge of $0.7 million related to a U.S. welding components
business, which primarily resulted from lower estimated future cash flows than previously expected. Also in the first quarter of 2003,
intangible asset impairment charges of $3.8 million were recorded to reduce to estimated fair value the carrying value of trademarks
and brands related to several U.S. welding components businesses 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 decreased to $34.9 million in the first six months of 2004 from $36.6 million in 2003 primarily due to decreased
discounts on foreign currency forward contracts.
OTHER INCOME
Other income increased to $11.2 million for the first six months of 2004 from $5.3 million in 2003. This increase is primarily due to
lower currency translation losses in 2004 versus 2003. Also, interest income was higher in 2004 mainly from interest received related
to a tax reimbursement in Germany.
INCOME FROM CONTINUING OPERATIONS
Income from continuing operations of $650.4 million ($2.09 per diluted share) in the first six months of 2004 was 34.5% higher than
the 2003 income from continuing operations of $483.5 million ($1.57 per diluted share).
FOREIGN CURRENCY
The weakening of the U.S. dollar against foreign currencies in the first six months of 2004 increased operating revenues for the first
six months of 2004 by approximately $254.4 million and increased earnings by approximately 8 cents per diluted share.
18
19. 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 income from continuing operations. 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.
Summarized cash flow information for the second quarter and year-to-date periods of 2004 and 2003 was as follows:
(In thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Net cash provided by operating activities $ 376,818 $276,326 $ 696,518 $493,500
Proceeds from investments 19,640 7,376 38,452 23,041
Additions to plant and equipment (69,259) (65,965) (129,772) (122,138)
Free operating cash flow $327,199 $217,737 $605,198 $394,403
Acquisitions $(195,801) $(59,451) $(376,799) $(74,265)
Cash dividends paid (74,028) (70,535) (147,976) (141,049)
Purchase of investments (14,049) (11,714) (28,694) (40,852)
Issuance of common stock 35,972 6,468 50,524 9,065
Purchase of treasury shares through repurchase
program (259,110) - (259,110) -
Other (12,033) 26,013 9,582 29,079
Net increase in cash and equivalents $(191,850) $108,518 $(147,275) $176,381
Free operating cash flow for the second quarter of 2004 was higher than the same period in 2003 as a result of higher cash flow from
operating activities and higher proceeds from properties held for sale and venture capital investments. Net cash from operations was
higher mainly due to higher net income and increasing taxes payable in the second quarter of 2004, partially offset by increased
inventory.
For the first half of 2004, free operating cash flow was higher than the same period in 2003 as a result of higher cash from operating
activities. Net cash from operating activities was higher mainly due to higher net income and increasing taxes payable in the first half
of 2004, partially offset be higher accounts receivable outstanding.
19
20. Return on Invested Capital
The Company uses return on average invested capital (“ROIC”) to measure the effectiveness of the operations’ use of invested capital
to generate profits. ROIC for the second quarter and year-to-date periods of 2004 and 2003 was as follows:
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30 June 30
2004 2003 2004 2003
Operating income after taxes $ 370,614 $ 295,143 $ 666,057 $ 503,793
Total debt $ 983,472 $1,562,808 $ 983,472 $1,562,808
Less: Leasing and investment debt (143,573) (761,829) (143,573) (761,829)
Less: Cash (1,537,208) (1,234,068) (1,537,208) (1,234,068)
Adjusted net debt (697,309) (433,089) (697,309) (433,089)
Total stockholders’ equity 8,210,153 7,295,319 8,210,153 7,295,319
Invested capital $7,512,844 $6,862,230 $7,512,844 $6,862,230
Average invested capital $7,399,150 $6,698,209 $7,255,204 $6,632,750
Annualized return on average invested capital 20.0% 17.6% 18.4% 15.2%
The 240 basis point increase in ROIC in the second quarter of 2004 was due primarily to a 26% increase in after-tax operating income,
mainly as a result of increased base business operating income and a decrease in the effective tax rate of 34% in the second quarter of
2004 from 35% in the second quarter of 2003.
The 320 basis point increase in ROIC for year-to-date 2004 was due primarily to a 32% increase in after-tax operating income, mainly
as a result of increased base business operating income and a decrease in the effective tax rate of 34% in the first half of 2004 from
35% in the first half of 2003.
Working Capital
Net working capital at June 30, 2004 and December 31, 2003 is summarized as follows:
(Dollars in thousands)
June 30, December 31, Increase/
2004 2003 (Decrease)
Current Assets:
Cash and equivalents $1,537,208 $1,684,483 $(147,275)
Trade receivables 1,979,770 1,721,186 258,584
Inventories 1,098,222 991,979 106,243
Other 383,534 385,554 (2,020)
4,998,734 4,783,202 215,532
Current Liabilities:
Short-term debt 59,962 56,094 3,868
Accounts payable and accrued expenses 1,431,805 1,352,357 79,448
Other 298,048 80,452 217,596
1,789,815 1,488,903 300,912
Net Working Capital $3,208,919 $3,294,299 $ (85,380)
Current Ratio 2.79 3.21
Trade receivables and inventories increased due to increased sales, acquisitions, and translation. Other current liabilities increased due
to the normal tax provision for 2004. The December 31, 2003 tax payable was unusually low due to large tax refunds that were
receivable at year-end and collected in the first quarter of 2004. These receivables were netted against the payable balance at
December 31, 2003.
20
21. Debt
Total debt at June 30, 2004 and December 31, 2003 was as follows:
(Dollars in thousands)
June 30, 2004 December 31, 2003
Short-term debt $ 59,962 $ 56,094
Long-term debt 923,510 920,360
Total debt $983,472 $976,454
Total debt to capitalization 10.7% 11.0%
In 2003, the Company entered into a $400.0 million Line of Credit Agreement, with a termination date of June 18, 2004. This line of
credit was replaced on June 18, 2004, by a $400.0 million Line of Credit Agreement with a termination date of June 17, 2005.
Stockholders’ Equity
The changes to stockholders’ equity during 2004 were as follows:
(In thousands)
Total stockholders’ equity, December 31, 2003 $7,874,286
Income from continuing operations 650,375
Loss from discontinued operations 171
Cash dividends declared (147,600)
Exercise of stock options 50,524
Restricted stock activity 16,641
Share repurchase (259,110)
Shares issued for acquisitions 1,628
Currency translation adjustments 23,238
Total stockholders’ equity, June 30, 2004 $8,210,153
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. During the second quarter, the Company repurchased 2,811,700 shares of its common stock for $259.1 million at an
average price of $92.15 per share.
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 the adequacy of internally generated funds, the meeting of dividend payment
objectives, the repurchase of the Company’s common stock, and the outcome of outstanding legal proceedings. These statements are
subject to certain risks, uncertainties, and other factors, which could cause actual results to differ materially from those anticipated,
including, without limitation, the risks described herein. Important factors 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 prices of raw materials, (4) an interruption in, or reduction in, introducing new products into the
Company’s product line, (5) an unfavorable environment for making acquisitions or dispositions, 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. ITW operates in a very competitive and rapidly changing environment and therefore, new
risk factors emerge from time to time. It is not possible for management to predict all such risk factors, nor can it assess the impact of
all such risk factors on ITW’s business or the extent to which any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements. Given these 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.
21
22. Item 4 – Controls and Procedures
The Company’s management, with the participation of the Company’s Chairman & Chief Executive Officer and Senior Vice President
& Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in
Exchange Act Rule 13a–15(e) as of June 30, 2004. Based on such evaluation, the Company’s Chairman & Chief Executive Officer
and Senior Vice President & Chief Financial Officer have concluded that, as of June 30, 2004, the Company’s disclosure controls and
procedures were effective in timely alerting the Company’s management to material information required to be included in this Form
10-Q and other Exchange Act filings.
In connection with the evaluation by management, including the Company’s Chairman & Chief Executive Officer and Senior Vice
President & Chief Financial Officer, no changes in the Company’s internal control over financial reporting (as defined in Exchange
Act Rule 13a-15(f)) during the quarter ended June 30, 2004 were identified that have materially affected or are reasonably likely to
materially affect the Company’s internal control over financial reporting.
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23. Part II - Other Information
Item 1 – Legal Proceedings
Wilsonart International, Inc. a wholly owned subsidiary of ITW (“Wilsonart”), is a defendant in a consolidated class action lawsuit
filed in June 2000 in federal district court in White Plains, New York on behalf of purchasers of high-pressure laminates. The
complaint alleges that Wilsonart participated in a conspiracy with competitors to fix, raise, maintain or stabilize prices for high-
pressure laminates between January 1, 1994 and June 30, 2000, and seeks injunctive relief as well as treble damages and other costs
associated with the litigation. Indirect purchasers of high-pressure laminates filed similar purported class action cases under various
state antitrust and consumer protection statutes in Arizona, California, the District of Columbia, Florida, Maine, Michigan, Minnesota,
New Mexico, North Carolina, North Dakota, South Dakota, Tennessee, West Virginia and Wisconsin. All of the state cases have been
stayed, and certain plaintiffs have opted not to participate in the class litigation. These lawsuits were brought following the
commencement of a federal grand jury investigation of price-fixing in the high-pressure laminate industry, which was subsequently
closed by the Department of Justice with no further proceedings and with all documents returned to the parties involved. The
Company believes that these antitrust claims are without merit.
On April 30, 2004, Wilsonart presented and argued its motion for summary judgment in the consolidated class action lawsuit. To date
no decision has been rendered on this motion. On April 29, 2004, International Paper Company, one of the defendants in the
consolidated class action case, received preliminary approval of a settlement agreement with the plaintiffs. That settlement agreement,
dated as of April 23, 2004 received final court approval on July 14, 2004 and, provides, among other things, for the payment to the
class members in the consolidated class actions of $31,000,000. In addition, on July 14, 2004 the plaintiffs sought preliminary
approval of a settlement with Panolam International, Inc., another defendant in the case, for $9,500,000. However, the Court set the
matter for a hearing on September 30, 2004. While no assurances can be given regarding the ultimate outcome or the timing of the
resolution of these claims, the Company 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 is currently unable to determine a range of its possible exposure for
this litigation.
Item 2 – Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities
On April 19, 2004, the Company’s Board of Directors authorized a repurchase of up to 31 million shares of common stock.
Share repurchase activity for the second quarter was as follows:
Total Number of Shares Maximum Number that
Total Number of Average Price Purchased as part of Publicly may yet be Purchased
Period Shares Purchased Paid Per Share Announced Program Under Program
May 2004 280,000 $89.03 280,000 30,720,000
June 2004 2,531,700 92.50 2,531,700 28,188,300
Total 2,811,700 92.15 2,811,700
Item 4 – Submission of Matters to a Vote of Security Holders
The Company’s Annual Meeting of Stockholders was held on May 7, 2004. The following members were elected to the Company’s
Board of Directors to hold office for the ensuing year:
Nominees In Favor Withheld
W. F. Aldinger, III 264,064,901 13,308,957
M. J. Birck 265,890,495 11,483,364
M. D. Brailsford 262,315,197 15,058,662
S. Crown 273,929,956 3,443,902
D. H. Davis, Jr. 264,406,261 12,967,598
W. J. Farrell 272,981,975 4,391,884
R. C. McCormack 270,896,457 6,477,402
R. S. Morrison 274,023,376 3,350,482
H. B. Smith 275,077,464 2,296,395
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24. Item 6 – Exhibits and Reports on Form 8-K
(a) Exhibit Index
Exhibit No. Description
31 Rule 13a-14(a) Certification
32 Section 1350 Certification
(b) Reports on Form 8-K
On April 20, 2004 the Company filed Item 5 and furnished Item 12 in its Current Report on Form 8-K to the Securities and
Exchange Commission.
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25. SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
ILLINOIS TOOL WORKS INC.
Dated: August 6, 2004 By: /s/ Jon C. Kinney
Jon C. Kinney
Senior Vice President and Chief Financial Officer
(Principal Accounting Officer)
25