Illinois Tool Works Inc. (ITW)

Cash Flow Statement

Difficulty: Beginner

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Illinois Tool Works Inc., consolidated cash flow statement

US$ in millions

	12 months ended	Dec 31, 2018		Dec 31, 2017		Dec 31, 2016		Dec 31, 2015		Dec 31, 2014
	Net income
	Depreciation
	Amortization and impairment of intangible assets
	Change in deferred income taxes
	Provision for uncollectible accounts
	(Income) loss from investments
	(Gain) loss on sale of plant and equipment
	Gain on discontinued operations
	(Gain) loss on sale of operations and affiliates
	Stock-based compensation expense
	Gain on dividend distribution from equity investment in Wilsonart
	Other non-cash items, net
	(Increase) decrease in trade receivables
	(Increase) decrease in inventories
	(Increase) decrease in prepaid expenses and other assets
	Increase (decrease) in accounts payable
	Increase (decrease) in accrued expenses and other liabilities
	Increase (decrease) in income taxes
	Other, net
	Change in assets and liabilities, net of acquisitions and divestitures
	Adjustments to reconcile net income to cash provided by operating activities
	Net cash provided by operating activities
	Acquisition of businesses (excluding cash and equivalents) and additional interest in affiliates
	Additions to plant and equipment
	Proceeds from investments
	Dividend distribution from equity investment in Wilsonart
	Proceeds from sale of plant and equipment
	Net proceeds from sale of discontinued operations
	Proceeds from sale of operations and affiliates
	Other, net
	Net cash (used for) provided by investing activities
	Cash dividends paid
	Issuance of common stock
	Repurchases of common stock
	Net proceeds from (repayments of) debt with original maturities of three months or less
	Proceeds from debt with original maturities of more than three months
	Repayments of debt with original maturities of more than three months
	Excess tax benefits from stock-based compensation
	Other, net
	Net cash used for financing activities
	Effect of exchange rate changes on cash and equivalents
	Cash and equivalents, increase (decrease) during the year
	Cash and equivalents, beginning of year
	Cash and equivalents, end of year

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).

Cash flow statement item	Description	The company
Net cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Illinois Tool Works Inc.’s net cash provided by operating activities increased from 2016 to 2017 and from 2017 to 2018.
Net cash (used for) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Illinois Tool Works Inc.’s net cash (used for) provided by investing activities increased from 2016 to 2017 but then slightly declined from 2017 to 2018.
Net cash used for financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Illinois Tool Works Inc.’s net cash used for financing activities increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

	Illinois Tool Works Inc.	Other companies (not purchased previously)
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Analysis
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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