8-KEarnings & ResultsExhibits & Filings

ILLINOIS TOOL WORKS INC 8-K Report, Financial Results (Jun 28, 2011)

Filed June 28, 2011For Securities:ITW

Summary

Illinois Tool Works Inc. (ITW) filed an 8-K on June 28, 2011, to provide updated financial reporting following its agreement to sell its finishing group of businesses to Graco Inc. in April 2011. The company announced that it will now classify these finishing businesses, along with four other previously exited or held-for-sale businesses, as discontinued operations in its financial statements. This reclassification impacts how ITW's historical financial performance will be presented to investors. The primary purpose of this filing is to furnish investors with pro forma historical financial results that reflect these businesses as discontinued operations. This allows for a clearer understanding of the ongoing, core business performance separate from the divested or exiting segments. Investors should pay close attention to the pro forma statements to assess the company's current operational health and future outlook without the influence of these specific business lines.

Key Highlights

  • 1ITW is reclassifying its finishing group of businesses, along with four other exited or held-for-sale businesses, as discontinued operations.
  • 2This reclassification is a result of the definitive agreement to sell the finishing group to Graco Inc., announced in April 2011.
  • 3The company is furnishing pro forma historical financial results to reflect this change.
  • 4The filing includes a press release dated June 28, 2011, which contains further details.
  • 5Pro forma statements of income and segment information, restated for discontinued operations, are provided as exhibits.
  • 6This action aims to provide investors with a clearer view of ITW's ongoing business performance.

Frequently Asked Questions

Classifying businesses as 'discontinued operations' means that their financial results are presented separately from the company's ongoing, continuing operations. This separation is typically done when a business is sold, being sold, or is shut down. For investors, it allows for a clearer understanding of the performance and profitability of the core, continuing business.

ITW is providing pro forma historical financial results to show investors how the company's financial performance would have looked if the businesses being divested or exited had been treated as discontinued operations in prior periods. This helps investors analyze trends and make comparisons based on the company's future, post-divestiture structure.

The filing specifically mentions the 'finishing group of businesses' that are part of the sale agreement with Graco Inc. Additionally, four other businesses that were previously exited or are currently held for sale are also being reclassified as discontinued operations.

The detailed pro forma financial information is available in the exhibits attached to this 8-K filing. Specifically, Exhibit 99.2 provides the Pro Forma Statement of Income Restated for Discontinued Operations, and Exhibit 99.3 offers Pro Forma Segment Information Restated for Discontinued Operations.