Name: Illinois Tool Works Inc. (NYSE:ITW) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Illinois Tool Works Inc., consolidated statement of comprehensive income

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	2,694)	2,109)	2,521)	2,563)	1,687)
Foreign currency translation adjustments, net of tax	5)	4)	(2)	(328)	406)
Pension and other postretirement benefit adjustments, net of tax	135)	59)	(26)	(17)	114)
Other comprehensive income (loss)	140)	63)	(28)	(345)	520)
Comprehensive income	2,834)	2,172)	2,493)	2,218)	2,207)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Analysis of comprehensive income reveals a general upward trajectory from 2017 to 2021, with total comprehensive income increasing from $2,207 million to $2,834 million. This growth was primarily underpinned by a strong recovery in net income following a temporary contraction in 2020.

Net Income Performance: Net income experienced a substantial increase between 2017 and 2018, rising from $1,687 million to $2,563 million. Following a period of stability in 2019 and a decline to $2,109 million in 2020, net income reached a five-year peak of $2,694 million in 2021, representing an overall growth of approximately 59.6% over the analyzed period.
Foreign Currency Translation Adjustments: Significant volatility is observed in foreign currency translation adjustments. A positive impact of $406 million in 2017 shifted sharply to a loss of $328 million in 2018. From 2019 through 2021, these adjustments stabilized, remaining near zero and ending with a marginal gain of $5 million.
Pension and Postretirement Benefit Adjustments: Adjustments for pension and postretirement benefits exhibited a fluctuating pattern, transitioning from a gain of $114 million in 2017 to losses in 2018 and 2019. A corrective upward trend occurred in the final two years, with adjustments rising to $59 million in 2020 and reaching $135 million in 2021.
Other Comprehensive Income (OCI) and Total Comprehensive Income: OCI mirrored the volatility of currency and pension adjustments, shifting from a gain of $520 million in 2017 to a loss of $345 million in 2018. By 2021, OCI returned to a positive contribution of $140 million. Consequently, total comprehensive income remained resilient, with the 2021 result representing a 28.4% increase compared to 2017 levels.

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