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ILLINOIS TOOL WORKS INC Annual Report, Year Ended Dec 31, 1995

Filing Date
Filed March 29, 1996
Period End
December 31, 1995
Security
ITW
In the record · 2016–202610-K1110-Q338-K86

ITW filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 86 current reports (8-K) between 2016 and 2026.

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  2. Leadership change8-K · Feb ’21Feb ’21
  3. Leadership change8-K · Feb ’23Feb ’23
  4. Material agreement8-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 10-K filed March 29, 1996. Cited figures are marked; the original filing is the authoritative source.

Illinois Tool Works Inc. (ITW) filed its 10-K for fiscal 1995 on March 29, 1996, describing a diversified industrial manufacturer with more than 300 operations in 34 countries, organized into two segments: Engineered Components (51%a of 1995 operating revenues) and Industrial Systems and Consumables (49%).

The filing shows a continued mix shift toward Engineered Components from 1993 to 1995, and roughly 38% of 1995 operating revenues came from international subsidiaries, up from 36% in 1994. Aggregate market value of non-affiliate common stock was about $6.0 billionb as of March 5, 1996, against 122,395,312 shares outstanding. The company employed approximately 21,200 people at year-end 1995.

Backlog rose to $449 millionc at December 31, 1995 from $355 million a year earlier, an increase of roughly 26%, with gains in both segments. Management states that backlog is generally not a significant factor because of short delivery cycles and rapid inventory turnover. The company also disclosed a pending early-1996 acquisition of Hobart Brothers Company, to be accounted for as a pooling of interests.

For the two months ended February 29, 1996, combined operating revenues of ITW and Hobart were $731.8 milliond and combined net income was $60.5 million. Most financial detail, including MD&A, audited statements (Arthur Andersen LLP, unqualified opinion dated January 29, 1996), selected financial data, and stock market information, is incorporated by reference from the 1995 Annual Report to Stockholders, so this document alone does not provide full-year revenue, earnings, or balance sheet figures.

Its legal proceedings section reports none, and the environmental disclosure states that compliance costs are not expected to materially affect capital expenditures, competitive position, or results. Investors seeking profitability and cash flow metrics should review the incorporated annual report exhibits.

02—Key points

Key Highlights

  1. Two-segment structure: Engineered Components (51% of 1995 operating revenues) and Industrial Systems and Consumables (49%), with Engineered Components up from 52% in 1993 and 53% in 1994.
  2. Global footprint of more than 300 operations in 34 countries; international subsidiaries contributed about 38% of 1995 operating revenues, up from 36% in 1994.
  3. Backlog increased to $449 million at December 31, 1995 from $355 million in 1994 (about 26%), with Engineered Components at $236 million and Industrial Systems and Consumables at $213 million.
  4. Pending Hobart Brothers acquisition, paid in ITW common stock and accounted for as a pooling of interests; Hobart and ITW combined revenues of $731.8 million and net income of $60.5 million for the two months ended February 29, 1996.
  5. Diversified end-market exposure, led in Engineered Components by construction (36%) and automotive (29%), and in Industrial Systems and Consumables by general industrial (28%) and food and beverage (21%).
  6. Intellectual property base of about 1,664 unexpired U.S. patents and roughly 395 pending applications, plus a patent licensing program generating royalties.
  7. Approximately 21,200 employees at year-end 1995; no legal proceedings reported and environmental compliance costs not expected to be material.

03—Questions

Frequently Asked Questions

  1. How is ITW's revenue divided between its business segments?

    In 1995, Engineered Components contributed 51% of operating revenues and Industrial Systems and Consumables contributed 49%. The Engineered Components share has declined from 53% in 1994 to 51%, indicating a shift toward the Industrial Systems and Consumables segment.

  2. Is ITW's backlog growing, and does it matter for investors?

    Total backlog rose to $449 million at year-end 1995 from $355 million at year-end 1994, an increase of about 26%. Management notes that backlog is generally not a significant factor because many products have short delivery periods and rapid inventory turnover, and that orders scheduled beyond 1996 were not material.

  3. What is the Hobart Brothers acquisition and how will it be accounted for?

    ITW acquired all of the common stock of Hobart Brothers Company in early 1996 in exchange for ITW voting common stock. It will be accounted for as a pooling of interests under APB No. 16, so prior periods are combined rather than purchase-accounted. For the two months ended February 29, 1996, combined operating revenues were $731.8 million and combined net income was $60.5 million.

  4. How much of ITW's business is outside the United States?

    International subsidiaries contributed approximately 38% of operating revenues in 1995, up from 36% in 1994. The company operates in 34 countries and faces standard international risks, including currency exchange rate changes, price and exchange controls, and possible expropriation.

  5. Does this filing include ITW's full financial statements and profitability figures?

    No. Financial statements, MD&A, selected financial data, and market information are incorporated by reference from the 1995 Annual Report to Stockholders (Exhibit 13), so detailed earnings, cash flow, and balance sheet data must be taken from that report. The audited statements are covered by an unqualified Arthur Andersen LLP opinion dated January 29, 1996.

04—Continue

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