Cash Flow Statement

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

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)
Depreciation	277)	273)	267)	272)	256)
Amortization and impairment of intangible assets	133)	154)	159)	189)	206)
Change in deferred income taxes	(148)	(30)	32)	34)	64)
Provision for uncollectible accounts	3)	7)	6)	5)	3)
Income from investments	(29)	(8)	(15)	(9)	(16)
(Gain) loss on sale of plant and equipment	—)	2)	(9)	(7)	(1)
(Gain) loss on sale of operations and affiliates	—)	—)	(44)	2)	(1)
Stock-based compensation expense	53)	42)	41)	40)	36)
Other non-cash items, net	13)	8)	9)	10)	10)
(Increase) decrease in trade receivables	(240)	95)	40)	(60)	(138)
(Increase) decrease in inventories	(450)	43)	98)	(108)	(81)
(Increase) decrease in prepaid expenses and other assets	(36)	41)	11)	3)	(121)
Increase (decrease) in accounts payable	37)	19)	(16)	(46)	39)
Increase (decrease) in accrued expenses and other liabilities	202)	17)	(95)	(36)	(42)
Increase (decrease) in income taxes	49)	34)	(7)	(41)	501)
Other, net	(1)	1)	(3)	—)	—)
Change in assets and liabilities, net of acquisitions and divestitures	(439)	250)	28)	(288)	158)
Adjustments to reconcile net income to cash provided by operating activities	(137)	698)	474)	248)	715)
Net cash provided by operating activities	2,557)	2,807)	2,995)	2,811)	2,402)
Acquisition of businesses, excluding cash and equivalents	(731)	—)	(4)	—)	(3)
Additions to plant and equipment	(296)	(236)	(326)	(364)	(297)
Proceeds from investments	38)	14)	20)	16)	43)
Proceeds from sale of plant and equipment	8)	10)	25)	26)	14)
Proceeds from sale of operations and affiliates	—)	1)	120)	1)	2)
Other, net	(3)	(3)	(18)	(4)	(10)
Net cash used for investing activities	(984)	(214)	(183)	(325)	(251)
Cash dividends paid	(1,463)	(1,379)	(1,321)	(1,124)	(941)
Issuance of common stock	50)	66)	85)	22)	84)
Repurchases of common stock	(1,000)	(706)	(1,500)	(2,000)	(1,000)
Net proceeds from (repayments of) debt with original maturities of three months or less	120)	—)	(1)	(850)	849)
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	(351)	(4)	(1,351)	(1)	(652)
Other, net	(10)	(26)	(12)	(11)	(14)
Net cash used for financing activities	(2,564)	(2,049)	(2,326)	(3,964)	(1,674)
Effect of exchange rate changes on cash and equivalents	(46)	39)	(9)	(112)	145)
Cash and equivalents, increase (decrease) during the year	(1,037)	583)	477)	(1,590)	622)
Cash and equivalents, beginning of year	2,564)	1,981)	1,504)	3,094)	2,472)
Cash and equivalents, end of year	1,527)	2,564)	1,981)	1,504)	3,094)

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).

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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. net cash provided by operating activities decreased from 2019 to 2020 and from 2020 to 2021.
Net cash used for 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. net cash used for investing activities decreased from 2019 to 2020 and from 2020 to 2021.
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. net cash used for financing activities increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Illinois Tool Works Inc. (NYSE:ITW)

Cash Flow Statement