Analysis of Debt

Illinois Tool Works Inc., balance sheet: debt

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Short-term debt	778)	350)	4)	1,351)	850)
Long-term debt	6,909)	7,772)	7,754)	6,029)	7,478)
Total debt (carrying amount)	7,687)	8,122)	7,758)	7,380)	8,328)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Illinois Tool Works Inc. total debt increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

	Dec 31, 2021
Selected Financial Data (US$ in millions)
Commercial paper	210)
Bank overdrafts	—)
Long-term debt, including current maturities	8,296)
Total debt (fair value)	8,506)
Financial Ratio
Debt, fair value to carrying amount ratio	1.11

Weighted-average effective interest rate on debt: 2.54%

Interest rate	Debt amount¹	Interest rate × Debt amount
0.10%	210)	—)
1.86%	570)	11)
1.35%	578)	8)
3.54%	734)	26)
0.31%	688)	2)
2.69%	1,053)	28)
0.71%	577)	4)
2.18%	641)	14)
1.09%	587)	6)
3.13%	711)	22)
4.97%	863)	43)
3.96%	1,291)	51)
Total	8,503)	216)
2.54%

¹ US$ in millions

² Weighted-average interest rate = 100 × 216 ÷ 8,503 = 2.54%

Illinois Tool Works Inc. (NYSE:ITW)