Stock Analysis on Net
Stock Analysis on Net
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Illinois Tool Works Inc. (NYSE:ITW)

Balance Sheet: Liabilities and Stockholders’ Equity

Beginner level

The balance sheet provides creditors, investors, and analysts with information on company’s resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company’s assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Illinois Tool Works Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Short-term debt 350  4  1,351  850  652 
Accounts payable 534  472  524  590  511 
Compensation and employee benefits 335  335  391  411  379 
Deferred revenue and customer deposits 222  188  215  205  180 
Rebates 171  159  172  147  144 
Current portion of operating lease liabilities 55  51  —  —  — 
Warranties 45  45  45  45  45 
Current portion of pension and other postretirement benefit obligations 14  14  16  16  16 
Other 442  425  432  434  438 
Accrued expenses 1,284  1,217  1,271  1,258  1,202 
Cash dividends payable 361  342  328  266  226 
Income taxes payable 60  48  68  89  169 
Liabilities held for sale —  71  —  —  — 
Current liabilities 2,589  2,154  3,542  3,053  2,760 
Long-term debt 7,772  7,754  6,029  7,478  7,177 
Deferred income taxes 588  668  707  164  134 
Noncurrent income taxes payable 413  462  495  614  — 
Pension benefit obligation 241  215  203  219  252 
Postretirement benefit obligation 191  198  179  174  201 
Long-term portion of operating lease liabilities 133  128  —  —  — 
Other 503  459  457  489  418 
Other liabilities 1,068  1,000  839  882  871 
Noncurrent liabilities 9,841  9,884  8,070  9,138  8,182 
Total liabilities 12,430  12,038  11,612  12,191  10,942 
Common stock, par value of $0.01 per share 6  6  6  6  6 
Additional paid-in-capital 1,362  1,304  1,253  1,218  1,188 
Retained earnings 23,114  22,403  21,217  20,210  19,505 
Common stock held in treasury (19,659) (18,982) (17,545) (15,562) (14,638)
Accumulated other comprehensive loss (1,642) (1,705) (1,677) (1,287) (1,807)
Stockholders’ equity attributable to ITW 3,181  3,026  3,254  4,585  4,254 
Noncontrolling interest 1  4  4  4  5 
Total stockholders’ equity 3,182  3,030  3,258  4,589  4,259 
Total liabilities and stockholders’ equity 15,612  15,068  14,870  16,780  15,201 

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-10).

Balance sheet item Description The company
Current liabilities Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Illinois Tool Works Inc.’s current liabilities decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
Noncurrent liabilities Amount of obligation due after one year or beyond the normal operating cycle, if longer. Illinois Tool Works Inc.’s noncurrent liabilities increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Total liabilities Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. Illinois Tool Works Inc.’s total liabilities increased from 2018 to 2019 and from 2019 to 2020.
Stockholders’ equity attributable to ITW Total of all stockholders’ equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity’s stockholders’ equity attributable to the parent excludes the amount of stockholders’ equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Illinois Tool Works Inc.’s stockholders’ equity attributable to ITW decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.