Cash Flow Statement
Quarterly Data

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company 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 (quarterly data)

US$ in millions

3 months ended:	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017
Net income	609)	639)	775)	671)	642)	582)	319)	566)	641)	660)	623)	597)	607)	638)	666)	652)	(76)	640)	587)	536)
Depreciation	71)	70)	70)	66)	70)	70)	65)	68)	68)	66)	66)	67)	69)	68)	68)	67)	68)	65)	62)	61)
Amortization and impairment of intangible assets	33)	34)	32)	34)	35)	48)	35)	36)	37)	38)	41)	43)	46)	47)	48)	48)	50)	51)	52)	53)
Change in deferred income taxes	(69)	8)	(108)	21)	(49)	(3)	5)	17)	(15)	8)	17)	22)	54)	(30)	15)	(5)	9)	32)	3)	20)
Provision for uncollectible accounts	3)	(1)	1)	—)	2)	1)	2)	2)	3)	—)	1)	2)	1)	1)	2)	1)	—)	1)	1)	1)
Income from investments	(1)	(4)	(23)	(1)	(2)	(1)	(2)	(3)	(3)	(1)	(4)	(7)	(1)	(3)	(2)	(3)	(3)	(2)	(9)	(2)
(Gain) loss on sale of plant and equipment	—)	—)	—)	—)	1)	1)	—)	—)	(1)	(9)	1)	—)	(5)	—)	(1)	(1)	(1)	(1)	1)	—)
(Gain) loss on sale of operations and affiliates	—)	—)	—)	—)	1)	—)	—)	(1)	(50)	—)	4)	2)	1)	—)	1)	—)	(1)	—)	—)	—)
Stock-based compensation expense	12)	14)	16)	11)	11)	14)	8)	9)	9)	10)	12)	10)	9)	11)	11)	9)	9)	8)	10)	9)
Other non-cash items, net	5)	1)	4)	3)	2)	2)	2)	2)	2)	1)	2)	4)	4)	1)	1)	4)	4)	2)	3)	1)
(Increase) decrease in trade receivables	30)	30)	(108)	(192)	53)	(260)	292)	10)	78)	78)	(10)	(106)	142)	86)	(96)	(192)	59)	(11)	(38)	(148)
(Increase) decrease in inventories	(85)	(143)	(100)	(122)	(7)	64)	34)	(48)	67)	20)	43)	(32)	14)	(27)	(27)	(68)	12)	(11)	(15)	(67)
(Increase) decrease in prepaid expenses and other assets	27)	(43)	1)	(21)	(9)	27)	33)	(10)	(10)	7)	36)	(22)	(5)	11)	26)	(29)	(24)	15)	(89)	(23)
Increase (decrease) in accounts payable	(7)	(36)	15)	65)	(4)	99)	(93)	17)	(31)	(5)	(28)	48)	(49)	(44)	(8)	55)	(2)	(6)	(9)	56)
Increase (decrease) in accrued expenses and other liabilities	69)	92)	54)	(13)	(12)	125)	(3)	(93)	(27)	46)	(15)	(99)	(11)	52)	13)	(90)	14)	59)	2)	(117)
Increase (decrease) in income taxes	79)	(43)	(75)	88)	40)	(86)	34)	46)	14)	(4)	(104)	87)	(65)	31)	(97)	90)	577)	(62)	(95)	81)
Other, net	(2)	1)	1)	(1)	(1)	—)	6)	(4)	(8)	5)	—)	—)	(2)	2)	—)	—)	—)	—)	(2)	2)
Change in assets and liabilities, net of acquisitions and divestitures	111)	(142)	(212)	(196)	60)	(31)	303)	(82)	83)	147)	(78)	(124)	24)	111)	(189)	(234)	636)	(16)	(246)	(216)
Adjustments to reconcile net income to cash provided by operating activities	165)	(20)	(220)	(62)	131)	101)	418)	48)	133)	260)	62)	19)	202)	206)	(46)	(114)	771)	140)	(123)	(73)
Net cash provided by operating activities	774)	619)	555)	609)	773)	683)	737)	614)	774)	920)	685)	616)	809)	844)	620)	538)	695)	780)	464)	463)
Acquisition of businesses, excluding cash and equivalents	(731)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	(4)	—)	—)	—)	—)	—)	—)	—)	(3)
Additions to plant and equipment	(79)	(71)	(78)	(68)	(68)	(52)	(56)	(60)	(82)	(90)	(77)	(77)	(82)	(101)	(87)	(94)	(78)	(78)	(77)	(64)
Proceeds from investments	1)	7)	29)	1)	4)	—)	3)	7)	4)	1)	8)	7)	3)	3)	5)	5)	18)	7)	11)	7)
Proceeds from sale of plant and equipment	2)	3)	1)	2)	2)	3)	2)	3)	3)	16)	4)	2)	12)	6)	6)	2)	6)	5)	—)	3)
Proceeds from sales of operations and affiliates	—)	—)	—)	—)	1)	—)	—)	—)	115)	3)	2)	—)	—)	1)	—)	—)	—)	—)	2)	—)
Other, net	(1)	(1)	(1)	—)	(2)	1)	1)	(3)	(3)	1)	(16)	—)	—)	(2)	—)	(2)	(3)	(6)	(1)	—)
Net cash used for investing activities	(808)	(62)	(49)	(65)	(63)	(48)	(50)	(53)	37)	(69)	(79)	(72)	(67)	(93)	(76)	(89)	(57)	(72)	(65)	(57)
Cash dividends paid	(383)	(359)	(360)	(361)	(360)	(339)	(338)	(342)	(344)	(323)	(326)	(328)	(332)	(262)	(264)	(266)	(267)	(224)	(224)	(226)
Issuance of common stock	8)	—)	16)	26)	6)	32)	11)	17)	35)	26)	13)	11)	11)	1)	—)	10)	26)	13)	27)	18)
Repurchases of common stock	(250)	(250)	(250)	(250)	—)	—)	—)	(706)	(375)	(375)	(375)	(375)	(500)	(500)	(500)	(500)	(250)	(250)	(250)	(250)
Net proceeds from (repayments of) debt with original maturities of three months or less	119)	1)	—)	—)	—)	—)	—)	—)	—)	1)	(1,060)	1,058)	—)	—)	(10)	(840)	152)	6)	20)	671)
Proceeds from debt with original maturities of more than three months	90)	—)	—)	—)	—)	—)	—)	—)	—)	—)	1,774)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Repayments of debt with original maturities of more than three months	(1)	—)	(350)	—)	(4)	—)	—)	—)	(1)	—)	(700)	(650)	—)	(1)	—)	—)	—)	—)	—)	(652)
Other, net	—)	—)	(1)	(9)	(10)	1)	(1)	(16)	—)	—)	(1)	(11)	—)	1)	—)	(12)	(1)	—)	(2)	(11)
Net cash used for financing activities	(417)	(608)	(945)	(594)	(368)	(306)	(328)	(1,047)	(685)	(671)	(675)	(295)	(821)	(761)	(774)	(1,608)	(340)	(455)	(429)	(450)
Effect of exchange rate changes on cash and equivalents	(9)	(20)	13)	(30)	53)	28)	23)	(65)	30)	(32)	(9)	2)	(6)	(29)	(82)	5)	11)	36)	33)	65)
Cash and equivalents, increase (decrease) during the period	(460)	(71)	(426)	(80)	395)	357)	382)	(551)	156)	148)	(78)	251)	(85)	(39)	(312)	(1,154)	309)	289)	3)	21)

Net Income

Net income displayed notable volatility across the periods analyzed. There was a significant dip to a negative value at the end of 2017, followed by a recovery and sustained positive values through 2018 and 2019. The figure declined sharply in early 2020, likely reflecting external challenges, but rebounded strongly throughout 2021, with peak earnings recorded in the third quarter of that year.

Depreciation

Depreciation expenses remained relatively stable over the period, showing only minor fluctuations generally ranging from 61 to 71 million USD per quarter. This indicates consistent capital asset usage and accounting treatment.

Amortization and Impairment of Intangible Assets

This expense gradually decreased over time, moving from 53 million USD in early 2017 down to the low 30s by the end of 2021, suggesting fewer intangible asset impairments or diminishing amortization of previously recorded intangibles.

Change in Deferred Income Taxes

There was significant variability in deferred income tax changes, with both positive and negative spikes. Notable outliers include a large positive change at the end of 2017 and a steep negative reading in mid-2021, pointing to fluctuations in tax-related timing differences or adjustments.

Provision for Uncollectible Accounts

This provision showed minor fluctuations around low single-digit millions and included some quarters with no data reported. The generally low and stable amounts imply controlled credit risk and receivable management.

Income from Investments

The income from investments was consistently negative or minimal, highlighting either losses or negligible gains from investment activities during the periods examined.

(Gain) Loss on Sale of Plant and Equipment

Reported gains and losses on asset sales varied widely, including some negative spikes and missing data. This inconsistency suggests occasional disposals of assets with mixed financial impacts.

Stock-Based Compensation Expense

This expense showed a gradual increase over the years, rising from 8–10 million in early periods to peaks of up to 16 million in 2021, indicating potentially increased stock incentive usage or higher stock prices influencing expense recognition.

Other Non-Cash Items, Net

This category remained fairly steady, generally fluctuating minimally and reflecting small adjustments within the broader non-cash expense profile.

Working Capital Changes

Trade Receivables: Exhibited significant volatility, with periods of both large increases and decreases, including a remarkable increase of 292 million USD in mid-2020 followed by substantial decreases later, indicating changing collections or sales patterns.
Inventories: Inventory levels swung markedly, with periods of both buildup and reduction. The largest decreases occurred in late 2020 and 2021, suggesting efforts to optimize inventory levels or changes in demand.
Prepaid Expenses and Other Assets: These showed irregular patterns with fluctuations between positive and negative values, indicating ongoing management of prepaid accounts and other assets.
Accounts Payable: Accounts payable experienced wide swings, with some quarters recording increases and others decreases, reflecting variable payment timing and supplier credit terms.
Accrued Expenses and Other Liabilities: This liability category showed large fluctuations including negative and positive shifts, signaling dynamic changes in accrued obligations and other short-term liabilities.
Income Taxes Payable: The changes in income tax liabilities were highly variable, with strong positive spikes such as in late 2017 and several negative changes in subsequent periods, reflecting the variability in taxes payable or deferred.

Change in Assets and Liabilities, Net of Acquisitions and Divestitures

There was a high level of volatility throughout the timeline, including a large positive change in late 2017 and negative swings in 2020 and 2021, consistent with the net effects of working capital adjustments and other balance sheet items.

Adjustments to Reconcile Net Income to Cash Provided by Operating Activities

These adjustments varied significantly, including notable positive spikes in late 2017 and mid-2020, corresponding to changes in non-cash expenses and working capital considerations.

Net Cash Provided by Operating Activities

Operating cash flow was strong and generally increasing over time, with peaks seen in late 2017, mid-2019, and late 2021. Despite some variability, cash flow from operations consistently remained positive and robust, underlining sound cash generation capability.

Acquisition of Businesses, Excluding Cash and Equivalents

Acquisitions were minimal until a significant outlier of 731 million USD in the first quarter of 2021 was recorded, indicating a major investment or acquisition event during that quarter.

Additions to Plant and Equipment

Capital expenditures were relatively consistent, mostly between 50 and 100 million USD quarterly. There was a mild downward trend in 2020 but a rebound towards late 2021, reflecting ongoing investments in fixed assets.

Proceeds from Investments and Asset Sales

Proceeds from investments and asset sales showed irregular fluctuations but generally remained in low single digits to teens of millions, indicating occasional disposals or maturities.

Net Cash Used for Investing Activities

Investing cash flows were generally negative, indicative of ongoing investments exceeding asset sales, with a notable positive cash inflow in late 2019 perhaps due to asset divestiture. The large negative cash flow in the first quarter of 2021 corresponds with the significant acquisition noted.

Cash Dividends Paid

Dividend payments were consistently paid each quarter and showed a gradual increase from roughly 224 million to nearly 383 million USD by the end of the period, signaling steady or growing shareholder returns.

Issuance and Repurchase of Common Stock

Stock repurchases were substantial and consistent, primarily at 250 million USD per quarter with a significant increase to 706 million USD in early 2020. Issuance of common stock was more variable but generally represented a smaller cash inflow than repurchases, suggesting an overall net reduction in shares outstanding.

Debt Financing Activities

Short-term debt activities showed significant fluctuations, including large repayments and borrowings at various intervals, possibly reflecting liquidity management. Long-term debt issuance and repayments were irregular but included substantial borrowings at the end of 2018 and repayments in late 2019 through 2021.

Net Cash Used for Financing Activities

Financing cash flows revealed large net outflows, particularly in 2018 and 2020, driven by repurchases, dividend payments, and debt repayments. Variability reflects changing capital structure management over the years.

Effect of Exchange Rate Changes on Cash and Equivalents

Currency exchange effects on cash were inconsistent, with both positive and negative impacts that generally remained under 100 million USD in magnitude, reflecting moderate foreign exchange exposure.

Change in Cash and Equivalents

Cash balances fluctuated widely, with significant decreases in early 2018 and 2020 correlating with major investing and financing outflows. Conversely, some quarters exhibited strong cash inflows, reflecting effective liquidity management despite external pressures.

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Illinois Tool Works Inc. (NYSE:ITW)

Cash Flow Statement Quarterly Data

Cash Flow Statement
Quarterly Data