8-KOther EventsExhibits & Filings

ILLINOIS TOOL WORKS INC 8-K Report, Corporate Update (Aug 7, 2009)

Filed August 7, 2009For Securities:ITW

Summary

Illinois Tool Works Inc. (ITW) filed this Form 8-K on August 7, 2009, to announce a significant change in its financial reporting related to its Decorative Surfaces segment. Initially designated for divestiture in August 2008 and reported as discontinued operations, the company's Board of Directors rescinded this decision in May 2009. Consequently, ITW is reclassifying the Decorative Surfaces segment back to continuing operations in its previously filed financial statements for the year ended December 31, 2008 (10-K) and the quarter ended March 31, 2009 (10-Q). This reclassification is in accordance with accounting standards SFAS 144 and SFAS 160. While this filing updates historical financial presentations, ITW explicitly states that this report does not restate or revise the company's net income for prior periods. The information presented here is primarily for updating prior filings and will be incorporated by reference into future registration statements, ensuring consistency in financial reporting going forward.

Key Highlights

  • 1Reclassification of Decorative Surfaces segment from discontinued to continuing operations.
  • 2Decision to divest the Decorative Surfaces segment was rescinded by the Board of Directors.
  • 3Updates historical financial statements for the 2008 10-K and the Q1 2009 10-Q.
  • 4Reclassification is compliant with SFAS 144 (Discontinued Operations) and SFAS 160 (Noncontrolling Interests).
  • 5This filing does not alter previously reported net income.
  • 6Updated information to be incorporated by reference into future registration statements.
  • 7Includes reclassifications related to noncontrolling interest from liabilities to equity.

Frequently Asked Questions

ITW is filing this Form 8-K to update its previously filed financial statements. The company is reclassifying its Decorative Surfaces segment from 'discontinued operations' back to 'continuing operations' because the decision to divest this segment has been rescinded.

No, ITW explicitly states that the information in this Form 8-K does not restate or revise the company's net income in previously reported financial statements. The changes are primarily for presentation and reporting consistency.

This reclassification is made in accordance with Statement of Financial Accounting Standards No. 144 (SFAS 144) for accounting for the impairment or disposal of long-lived assets, and Statement of Financial Accounting Standards No. 160 (SFAS 160) regarding noncontrolling interests in consolidated financial statements.

The primary impact is that the financial results of the Decorative Surfaces segment will now be presented as part of ITW's ongoing business (continuing operations) rather than as a separate category of discontinued operations. This provides a more accurate reflection of the company's current operational structure.