Summary
Illinois Tool Works Inc. (ITW) filed an 8-K on October 28, 2021, to report its third quarter 2021 financial results. The filing primarily directs investors to a press release (Exhibit 99.1) for detailed operational performance and financial condition. The company highlighted its use of non-GAAP financial measures, specifically free cash flow and after-tax return on invested capital (After-tax ROIC), to provide investors with additional insights into its operational efficiency and cash generation capabilities. ITW emphasizes that these measures are used internally and by investors to evaluate financial performance and the ability to fund strategic initiatives, while also noting their potential differences from measures used by other companies.
Key Highlights
- 1ITW announced its third quarter 2021 financial results via an 8-K filing on October 28, 2021.
- 2The filing directs investors to Exhibit 99.1, a press release, for detailed Q3 2021 financial and operational performance.
- 3The company utilizes non-GAAP financial measures, including free cash flow, to assess operational cash generation available for dividends, share repurchases, acquisitions, and debt repayment.
- 4ITW also uses after-tax return on invested capital (After-tax ROIC) as a key metric to evaluate the effectiveness of capital deployment in generating profits.
- 5Free cash flow is defined as net cash provided by operating activities less additions to plant and equipment.
- 6After-tax ROIC is calculated based on operating income after taxes divided by average invested capital.
- 7ITW clarifies that its non-GAAP measures may differ from those used by other companies and provides reconciliations in the furnished press release.