Illinois Tool Works Inc. (ITW)

Income Statement

Difficulty: Beginner

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Illinois Tool Works Inc., consolidated income statement

US$ in millions

	12 months ended	Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Operating revenue
	Cost of revenue
	Gross profit
	Selling, administrative, and research and development expenses
	Legal settlement income
	Amortization and impairment of intangible assets
	Operating income
	Interest expense
	Interest income
	Other net periodic benefit income
	Income (loss) from investments
	Equity income (loss) in Wilsonart
	Gain (loss) on disposal of operations and affiliates
	Gain (loss) on foreign currency transactions, net
	Other, net
	Other income (expense)
	Income from continuing operations before income taxes
	Income taxes
	Income from continuing operations
	Income from discontinued operations
	Net income

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Income statement item	Description	The company
Operating revenue	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Illinois Tool Works Inc.’s operating revenue increased from 2016 to 2017 and from 2017 to 2018.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Illinois Tool Works Inc.’s operating income increased from 2016 to 2017 and from 2017 to 2018.
Income from continuing operations before income taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Illinois Tool Works Inc.’s income from continuing operations before income taxes increased from 2016 to 2017 and from 2017 to 2018.
Net income	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Illinois Tool Works Inc.’s net income declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

	Illinois Tool Works Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality