EX-12.1 3 d41107dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Illinois Tool Works Inc.

Computation of Historical Ratios of Earnings to Fixed Charges

(in millions, except ratio data)

 

     Six
Months
Ended
June 30,		                                    
     2015      2014      2013      2012      2011     2010  

Income from continuing operations before taxes

    $ 1,360       $ 2,699       $ 2,347       $ 3,206       $ 2,223      $ 1,807   

Plus:

                 

Fixed charges (from below)

      131         293         285         261         239        217   

Dividends from unconsolidated affiliates

      —           —           8         2         4        3   

(Income) loss from unconsolidated affiliates, net of taxes

      5         11         16         26         (4 )      (4 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Earnings

    $ 1,496       $ 3,003       $ 2,656       $ 3,495       $ 2,462      $ 2,023   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Fixed Charges:

                 

Interest expense

    $ 109       $ 250       $ 239       $ 213       $ 191      $ 174   

Estimate of interest within rental expense

      22         43         46         48         48        43   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Fixed Charges

    $ 131       $ 293       $ 285       $ 261       $ 239      $ 217   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratio of Earnings to Fixed Charges(1)

      11.4x         10.2x         9.3x         13.4x         10.3x        9.3x   

 

(1) Certain reclassifications of prior years’ data have been made to conform to current year reporting, including discontinued operations. In addition, we divested a 51% majority interest in our Decorative Surfaces segment on October 31, 2012, which, due to our continuing involvement through our remaining 49% interest, is presented in continuing operations prior to October 31, 2012. See our Annual Report on Form 10-K for the year ended December 31, 2014 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, each of which is incorporated by reference in this prospectus supplement, for more detail regarding discontinued operations and the Decorative Surfaces transaction.