Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'ILLINOIS TOOL WORKS INC |
Entity Central Index Key | '0000049826 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 412,586,405 |
Statement_of_Income_Unaudited
Statement of Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Operating Revenues | $3,569 | $3,420 |
Cost of revenues | 2,158 | 2,078 |
Selling, administrative, and research and development expenses | 682 | 703 |
Amortization of intangible assets | 62 | 61 |
Impairment of goodwill and other intangible assets | 0 | 0 |
Operating Income | 667 | 578 |
Interest expense | -64 | -60 |
Other income (expense) | 9 | 47 |
Income from Continuing Operations Before Income Taxes | 612 | 565 |
Income Taxes | 184 | 164 |
Income from Continuing Operations | 428 | 401 |
Income (Loss) from Discontinued Operations | 45 | -47 |
Net Income | $473 | $354 |
Income Per Share from Continuing Operations: | ' | ' |
Basic (in dollars per share) | $1.01 | $0.89 |
Diluted (in dollars per share) | $1.01 | $0.88 |
Income (Loss) Per Share from Discontinued Operations: | ' | ' |
Basic (in dollars per share) | $0.11 | ($0.10) |
Diluted (in dollars per share) | $0.11 | ($0.10) |
Net Income Per Share: | ' | ' |
Basic (in dollars per share) | $1.12 | $0.78 |
Diluted (in dollars per share) | $1.11 | $0.78 |
Cash Dividends Per Share: | ' | ' |
Paid (in dollars per share) | $0.42 | $0 |
Declared (in dollars per share) | $0.42 | $0.38 |
Shares of Common Stock Outstanding During the Period: | ' | ' |
Average (in shares) | 421.9 | 451.7 |
Average assuming dilution (in shares) | 425 | 454.8 |
Statement_of_Comprehensive_Inc
Statement of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $473 | $354 |
Other Comprehensive Income: | ' | ' |
Foreign currency translation adjustments | 28 | -150 |
Pension and other postretirement benefit adjustments, net of tax | 8 | 12 |
Comprehensive Income | $509 | $216 |
Statement_of_Financial_Positio
Statement of Financial Position (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and equivalents | $3,547 | $3,618 |
Trade receivables | 2,563 | 2,365 |
Inventories | 1,298 | 1,247 |
Deferred income taxes | 335 | 384 |
Prepaid expenses and other current assets | 345 | 366 |
Assets held for sale | 1,940 | 1,836 |
Total current assets | 10,028 | 9,816 |
Net plant and equipment | 1,699 | 1,709 |
Goodwill | 4,893 | 4,886 |
Intangible assets | 1,936 | 1,999 |
Deferred income taxes | 383 | 359 |
Other assets | 1,231 | 1,197 |
Total Assets | 20,170 | 19,966 |
Current Liabilities: | ' | ' |
Short-term debt | 2,833 | 3,551 |
Accounts payable | 689 | 634 |
Accrued expenses | 1,204 | 1,272 |
Cash dividends payable | 174 | 181 |
Income taxes payable | 84 | 69 |
Deferred income taxes | 15 | 10 |
Liabilities held for sale | 361 | 317 |
Total current liabilities | 5,360 | 6,034 |
Noncurrent Liabilities: | ' | ' |
Long-term debt | 4,789 | 2,793 |
Deferred income taxes | 522 | 507 |
Other liabilities | 919 | 923 |
Total noncurrent liabilities | 6,230 | 4,223 |
Stockholders’ Equity: | ' | ' |
Common stock | 6 | 6 |
Additional paid-in-capital | 1,043 | 1,046 |
Income reinvested in the business | 15,243 | 14,943 |
Common stock held in treasury | -8,138 | -6,676 |
Accumulated other comprehensive income | 420 | 384 |
Noncontrolling interest | 6 | 6 |
Total stockholders’ equity | 8,580 | 9,709 |
Total Liabilities and Stockholders' Equity | $20,170 | $19,966 |
Statement_of_Cash_Flows_Unaudi
Statement of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash Provided by (Used for) Operating Activities: | ' | ' |
Net income | $473 | $354 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation | 68 | 76 |
Amortization and impairment of goodwill and other intangible assets | 62 | 112 |
Change in deferred income taxes | 12 | 4 |
Provision for uncollectible accounts | 2 | 4 |
(Income) loss from investments | 0 | -5 |
(Gain) loss on sale of plant and equipment | 0 | -2 |
(Gain) loss on discontinued operations | 0 | 65 |
(Gain) loss on sale of operations and affiliates | 1 | 4 |
Stock-based compensation expense | 9 | 9 |
Gain on acquisition of controlling interest in an equity investment | 0 | -30 |
Other non-cash items, net | 8 | 3 |
(Increase) decrease in- | ' | ' |
Trade receivables | -197 | -175 |
Inventories | -49 | -38 |
Prepaid expenses and other assets | -39 | -31 |
Increase (decrease) in- | ' | ' |
Accounts payable | -5 | 94 |
Accrued expenses and other liabilities | -38 | -132 |
Income taxes | 63 | 50 |
Other, net | -56 | 4 |
Net cash provided by operating activities | 314 | 366 |
Cash Provided by (Used for) Investing Activities: | ' | ' |
Acquisition of businesses (excluding cash and equivalents) and additional interest in affiliates | -2 | -56 |
Additions to plant and equipment | -68 | -89 |
Proceeds from investments | 1 | 13 |
Proceeds from sale of plant and equipment | 7 | 4 |
Net proceeds (payments) from discontinued operations | 0 | -3 |
Other, net | -4 | -3 |
Net cash provided by (used for) investing activities | -66 | -134 |
Cash Provided by (Used for) Financing Activities: | ' | ' |
Cash dividends paid | -181 | 0 |
Issuance of common stock | 27 | 36 |
Repurchases of common stock | -1,440 | -344 |
Net proceeds from (repayments of) debt with original maturities of three months or less | -722 | -4 |
Proceeds from debt with original maturities of more than three months | 1,988 | 0 |
Other, net | -1 | 7 |
Net cash provided by (used for) financing activities | -329 | -305 |
Effect of Exchange Rate Changes on Cash and Equivalents | 10 | -44 |
Cash and Equivalents: | ' | ' |
Increase (decrease) during the period | -71 | -117 |
Beginning of period | 3,618 | 2,779 |
End of period | 3,547 | 2,662 |
Supplementary Cash and Non-Cash Information: | ' | ' |
Cash Paid During the Period for Interest | 46 | 49 |
Cash Paid During the Period for Income Taxes, Net of Refunds | 114 | 107 |
Liabilities Assumed from Acquisitions | $0 | $51 |
Financial_Statements
Financial Statements | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Financial Statements | ' |
Financial Statements | |
The unaudited financial statements included herein have been prepared by Illinois Tool Works Inc. and Subsidiaries (the “Company”). In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for interim periods. It is suggested that these financial statements be read in conjunction with the financial statements and notes to financial statements included in the Company’s 2013 Annual Report on Form 10-K. Certain reclassifications of prior year data have been made to conform with current year reporting. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Discontinued Operations | ' | |||||||
Discontinued Operations | ||||||||
The Company periodically reviews its operations for businesses which may no longer be aligned with its enterprise initiatives and long-term objectives. As such, the Company may commit to a plan to exit or dispose of certain businesses and present them as discontinued operations. The following summarizes the Company's discontinued operations. | ||||||||
The Company has restated the statement of income and the notes to financial statements to present the operating results of the held for sale and previously divested businesses discussed below as discontinued operations. | ||||||||
Third Quarter 2013 Discontinued Operations - In February 2013, the Company announced that it was initiating a review process to explore strategic alternatives for its Industrial Packaging segment. In September 2013, the Company’s Board of Directors authorized a plan to commence a sale process for the Industrial Packaging segment. The Company classified the Industrial Packaging segment as held for sale beginning in the third quarter of 2013 and is no longer presenting this segment as part of its continuing operations. | ||||||||
On February 6, 2014, the Company announced that it had signed a definitive agreement to sell its Industrial Packaging segment to The Carlyle Group for $3.2 billion. The transaction was completed on May 1, 2014. | ||||||||
In the third quarter of 2013, the Company also committed to plans for the divestiture of a construction distribution business previously included in the Construction Products segment and a specialty coatings business previously included in the Polymers & Fluids segment. These businesses were classified as held for sale beginning in the third quarter of 2013. The specialty coatings business was sold in the fourth quarter of 2013. The Company expects to sell the construction distribution business by mid-2014. | ||||||||
First Quarter 2013 Discontinued Operations - In the first quarter of 2013, the Company committed to plans for the divestiture of two transportation related businesses and a machine components business previously included in the Specialty Products segment, two construction distribution businesses previously included in the Construction Products segment, and a chemical manufacturing business previously included in the Polymers & Fluids segment. These businesses were classified as held for sale beginning in the first quarter of 2013. | ||||||||
The Company also reclassified certain previously divested businesses as discontinued operations in the first quarter of 2013. These included a consumer packaging business that was previously included in the Specialty Products segment, a packaging distribution business which was previously included in the former Industrial Packaging segment, and a welding manufacturing business previously included in the Welding segment. | ||||||||
In the second quarter of 2013, the Company divested one of the held for sale transportation related businesses, the machine components business, and the chemical manufacturing business. In the third quarter of 2013, the Company divested the second held for sale transportation related business. In the fourth quarter of 2013, the Company divested one construction distribution business. The Company expects to dispose of the remaining held for sale construction distribution business by mid-2014. | ||||||||
Results of the discontinued operations for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||
Three Months Ended | ||||||||
(In millions) | March 31, | |||||||
2014 | 2013 | |||||||
Operating revenues | $ | 586 | $ | 737 | ||||
Income (loss) before income taxes | $ | 72 | $ | (19 | ) | |||
Income tax expense | (27 | ) | (28 | ) | ||||
Income (loss) from discontinued operations | $ | 45 | $ | (47 | ) | |||
Income (loss) before income taxes from discontinued operations was income of $72 million and a loss of $19 million for the three months ended March 31, 2014 and 2013, respectively. The loss in the first three months of 2013 included a $42 million goodwill impairment charge recorded in connection with the anticipated sale of one of the transportation related businesses and loss reserves on assets held for sale of $60 million. | ||||||||
As of March 31, 2014 and December 31, 2013, the assets and liabilities of the Industrial Packaging business and the two construction distribution businesses discussed above were included in assets and liabilities held for sale in the statement of financial position, as follows: | ||||||||
(In millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Trade receivables | $ | 380 | $ | 352 | ||||
Inventories | 269 | 244 | ||||||
Net plant and equipment | 322 | 305 | ||||||
Goodwill and intangible assets | 845 | 844 | ||||||
Other | 124 | 91 | ||||||
Total assets held for sale | $ | 1,940 | $ | 1,836 | ||||
Accounts payable | $ | 115 | $ | 87 | ||||
Accrued expenses | 136 | 139 | ||||||
Other | 110 | 91 | ||||||
Total liabilities held for sale | $ | 361 | $ | 317 | ||||
Gain_on_Acquisition_of_Control
Gain on Acquisition of Controlling Interest in Equity Investment | 3 Months Ended |
Mar. 31, 2014 | |
Business Combinations [Abstract] | ' |
Gain on Acquisition of Controlling Interest in Equity Investment | ' |
Gain on Acquisition of Controlling Interest in Equity Investment | |
On January 31, 2013, the Company acquired the controlling interest of an existing consumer packaging business in the Specialty Products segment previously accounted for under the equity method. The Company recorded a pre-tax gain of $30 million in Other income (expense) in the first three months of 2013 as a result of remeasuring the Company's existing equity interest to fair value by determining the implied equity value using a Level 3 valuation method. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company and its subsidiaries file tax returns in the U.S. and various state, local and foreign jurisdictions. These tax returns are routinely audited by the tax authorities in these jurisdictions including the Internal Revenue Service ("IRS"), Her Majesty's Revenue and Customs, German Fiscal Authority, French Fiscal Authority, and Australian Tax Office and a number of these audits are currently ongoing, which may increase the amount of the unrecognized tax benefits in future periods. Due to the ongoing audits, the Company believes it is reasonably possible that within the next twelve months the amount of the Company’s unrecognized tax benefits may be decreased by approximately $52 million related predominantly to various intercompany transactions. The Company has recorded its best estimate of the potential exposure for these issues. | |
On February 18, 2014, the Company received a Notice of Deficiency (“NOD”) from the IRS asserting that a non-taxable return of capital received from a subsidiary was a taxable dividend distribution. The NOD assesses additional taxes of $70 million for the 2006 tax year. The Company intends to petition the United States Tax Court to challenge the NOD. Although the outcome of this process cannot be predicted with certainty, the Company believes it will be successful in defending its position. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
(In millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Raw material | $ | 448 | $ | 445 | ||||
Work-in-process | 162 | 145 | ||||||
Finished goods | 688 | 657 | ||||||
Total inventories | $ | 1,298 | $ | 1,247 | ||||
Retirement_Plans_and_Postretir
Retirement Plans and Postretirement Benefits | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Retirement Plans and Postretirement Benefits | ' | |||||||||||||||
Retirement Plans and Postretirement Benefits | ||||||||||||||||
Pension and other postretirement benefit costs related to both continuing and discontinued operations for the three months ended March 31, 2014 and 2013, were as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(In millions) | March 31, | |||||||||||||||
Pension | Other Postretirement Benefits | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 20 | $ | 23 | $ | 3 | $ | 3 | ||||||||
Interest cost | 26 | 24 | 6 | 6 | ||||||||||||
Expected return on plan assets | (40 | ) | (39 | ) | (6 | ) | (5 | ) | ||||||||
Amortization of actuarial losses | 12 | 19 | (2 | ) | — | |||||||||||
Net periodic benefit cost | $ | 18 | $ | 27 | $ | 1 | $ | 4 | ||||||||
Net periodic benefit cost included in the statement of income was: | ||||||||||||||||
Income from continuing operations | $ | 16 | $ | 24 | $ | 1 | $ | 4 | ||||||||
Income (loss) from discontinued operations | 2 | 3 | — | — | ||||||||||||
Net periodic benefit cost | $ | 18 | $ | 27 | $ | 1 | $ | 4 | ||||||||
The Company expects to contribute approximately $136 million to its pension plans and $7 million to its other postretirement plans in 2014. As of March 31, 2014, contributions of $32 million to pension plans and $2 million to other postretirement plans have been made. |
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt | ||||||||
Short-term debt represents obligations with a maturity date of one year or less and are stated at cost which approximates fair value. Short-term debt also includes current maturities of long-term debt. Current maturities of long-term debt included $800 million of 5.15% redeemable notes due April 1, 2014, which were repaid on the due date, and €750 million($1.0 billion) of 5.25% Euro notes due October 1, 2014. In addition, short-term debt included commercial paper of $950 million as of March 31, 2014 and $1.7 billion at December 31, 2013. | ||||||||
On January 22, 2014, the Company entered into a $1.0 billion short-term line of credit agreement with a term of up to 364 days to provide additional liquidity under the Company's commercial paper program in order to fund short-term capital allocation needs. No amount was outstanding under this facility at March 31, 2014. | ||||||||
Long-term debt represents obligations with a maturity date greater than one year, and excludes current maturities that have been reclassified to short-term debt. In February 2014, the Company issued $650 million of 0.9% notes due February 25, 2017, $650 million of 1.95% notes due March 1, 2019, and $700 million of 3.5% notes due March 1, 2024. Proceeds from the February 2014 debt issuance were used to repay commercial paper. | ||||||||
The approximate fair value and related carrying value of the Company's total long-term debt, including current maturities of long-term debt reclassified to short-term debt, as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
(In millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Fair value | $ | 6,774 | $ | 4,670 | ||||
Carrying value | 6,625 | 4,627 | ||||||
The approximate fair values of the Company's long-term debt, including current maturities, were based on a Level 2 valuation model, using observable inputs which included market rates for comparable instruments for the respective periods. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Accumulated Other Comprehensive Income | ' | |||||||
Accumulated Other Comprehensive Income | ||||||||
The following table summarizes changes in accumulated other comprehensive income for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended | ||||||||
(In millions) | March 31, | |||||||
2014 | 2013 | |||||||
Beginning balance | $ | 384 | $ | 293 | ||||
Foreign currency translation adjustments during the period | 28 | (154 | ) | |||||
Foreign currency translation adjustments reclassified to income | — | 4 | ||||||
Total foreign currency translation adjustments | 28 | (150 | ) | |||||
Pension and other postretirement benefit adjustments reclassified to income | 10 | 19 | ||||||
Income taxes | (2 | ) | (7 | ) | ||||
Total pension and other postretirement benefit adjustments | 8 | 12 | ||||||
Ending balance | $ | 420 | $ | 155 | ||||
Pension and other postretirement benefit adjustments reclassified to income represent the amortization of actuarial losses recognized in net periodic benefit cost. Refer to the Retirement Plans and Postretirement Benefits note for the amounts included in net periodic benefit cost. | ||||||||
The ending balance of accumulated other comprehensive income as of March 31, 2014 and 2013 consisted of cumulative translation adjustment income of $702 million and $717 million, respectively, and unrecognized pension and other postretirement benefits costs, net of tax, of $282 million and $562 million, respectively. |
Segment_Information
Segment Information | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting [Abstract] | ' |
Segment Information | ' |
Segment Information | |
The Company has seven reportable segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products. See Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations for information regarding operating revenues and operating income for the Company's segments. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Results of discontinued operations | ' | |||||||
Results of the discontinued operations for the three months ended March 31, 2014 and 2013 were as follows: | ||||||||
Three Months Ended | ||||||||
(In millions) | March 31, | |||||||
2014 | 2013 | |||||||
Operating revenues | $ | 586 | $ | 737 | ||||
Income (loss) before income taxes | $ | 72 | $ | (19 | ) | |||
Income tax expense | (27 | ) | (28 | ) | ||||
Income (loss) from discontinued operations | $ | 45 | $ | (47 | ) | |||
Assets and liabilities of discontinued operations held for sale | ' | |||||||
As of March 31, 2014 and December 31, 2013, the assets and liabilities of the Industrial Packaging business and the two construction distribution businesses discussed above were included in assets and liabilities held for sale in the statement of financial position, as follows: | ||||||||
(In millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Trade receivables | $ | 380 | $ | 352 | ||||
Inventories | 269 | 244 | ||||||
Net plant and equipment | 322 | 305 | ||||||
Goodwill and intangible assets | 845 | 844 | ||||||
Other | 124 | 91 | ||||||
Total assets held for sale | $ | 1,940 | $ | 1,836 | ||||
Accounts payable | $ | 115 | $ | 87 | ||||
Accrued expenses | 136 | 139 | ||||||
Other | 110 | 91 | ||||||
Total liabilities held for sale | $ | 361 | $ | 317 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
(In millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Raw material | $ | 448 | $ | 445 | ||||
Work-in-process | 162 | 145 | ||||||
Finished goods | 688 | 657 | ||||||
Total inventories | $ | 1,298 | $ | 1,247 | ||||
Retirement_Plans_and_Postretir1
Retirement Plans and Postretirement Benefits (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Pension and other postretirement benefit costs | ' | |||||||||||||||
Pension and other postretirement benefit costs related to both continuing and discontinued operations for the three months ended March 31, 2014 and 2013, were as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
(In millions) | March 31, | |||||||||||||||
Pension | Other Postretirement Benefits | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||
Service cost | $ | 20 | $ | 23 | $ | 3 | $ | 3 | ||||||||
Interest cost | 26 | 24 | 6 | 6 | ||||||||||||
Expected return on plan assets | (40 | ) | (39 | ) | (6 | ) | (5 | ) | ||||||||
Amortization of actuarial losses | 12 | 19 | (2 | ) | — | |||||||||||
Net periodic benefit cost | $ | 18 | $ | 27 | $ | 1 | $ | 4 | ||||||||
Net periodic benefit cost included in the statement of income was: | ||||||||||||||||
Income from continuing operations | $ | 16 | $ | 24 | $ | 1 | $ | 4 | ||||||||
Income (loss) from discontinued operations | 2 | 3 | — | — | ||||||||||||
Net periodic benefit cost | $ | 18 | $ | 27 | $ | 1 | $ | 4 | ||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Fair value and carrying value of long-term debt, including current maturities | ' | |||||||
The approximate fair value and related carrying value of the Company's total long-term debt, including current maturities of long-term debt reclassified to short-term debt, as of March 31, 2014 and December 31, 2013 were as follows: | ||||||||
(In millions) | 31-Mar-14 | 31-Dec-13 | ||||||
Fair value | $ | 6,774 | $ | 4,670 | ||||
Carrying value | 6,625 | 4,627 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Schedule of Accumulated Other Comprehensive Income | ' | |||||||
The following table summarizes changes in accumulated other comprehensive income for the three months ended March 31, 2014 and 2013: | ||||||||
Three Months Ended | ||||||||
(In millions) | March 31, | |||||||
2014 | 2013 | |||||||
Beginning balance | $ | 384 | $ | 293 | ||||
Foreign currency translation adjustments during the period | 28 | (154 | ) | |||||
Foreign currency translation adjustments reclassified to income | — | 4 | ||||||
Total foreign currency translation adjustments | 28 | (150 | ) | |||||
Pension and other postretirement benefit adjustments reclassified to income | 10 | 19 | ||||||
Income taxes | (2 | ) | (7 | ) | ||||
Total pension and other postretirement benefit adjustments | 8 | 12 | ||||||
Ending balance | $ | 420 | $ | 155 | ||||
Discontinued_Operations_Detail
Discontinued Operations (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | 1-May-14 | |
Industrial Packaging [Member] | Industrial Packaging [Member] | Industrial Packaging [Member] | Packaging Distribution Business [Member] | Welding Manufacturing Business [Member] | Machine Components Business [Member] | Machine Components Business [Member] | Chemical Manufacturing Business [Member] | Chemical Manufacturing Business [Member] | Construction Distribution Business [Member] | Construction Distribution Business [Member] | Construction Distribution Business [Member] | Construction Distribution Business [Member] | Construction Distribution Business [Member] | Specialty Coatings Business [Member] | Specialty Coatings Business [Member] | Transportation Related Business [Member] | Transportation Related Business [Member] | Transportation Related Business [Member] | Transportation Related Business One [Member] | Consumer Packaging Business [Member] | Subsequent Event [Member] | |||
business | business | business | business | business | business | business | business | business | business | business | business | business | business | business | business | business | business | business | business | business | Industrial Packaging [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,200,000,000 |
Number of businesses planned for divestiture | ' | ' | 1 | ' | ' | ' | ' | ' | 1 | ' | 1 | ' | ' | 1 | 2 | ' | ' | 1 | ' | ' | 2 | 1 | ' | ' |
Number of businesses divested | ' | ' | ' | ' | ' | ' | ' | 1 | ' | 1 | ' | ' | 1 | ' | ' | ' | 1 | ' | 1 | 1 | ' | ' | ' | ' |
Income (loss) before income taxes from discontinued operations | 72,000,000 | -19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,000,000 | ' | ' | ' |
Loss reserves on assets held for sale | ' | $60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of businesses planned for divestiture included in assets (liabilities) held-for-sale | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of businesses reclassified to discontinued operations | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Discontinued_Operations_Detail1
Discontinued Operations (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Operating revenues | $586 | $737 |
Income (loss) before income taxes | 72 | -19 |
Income tax expense | -27 | -28 |
Income (loss) from discontinued operations | $45 | ($47) |
Discontinued_Operations_Detail2
Discontinued Operations (Details 1) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
The assets and liabilities held for sale of discontinued operations | ' | ' |
Trade receivables | $380 | $352 |
Inventories | 269 | 244 |
Net plant and equipment | 322 | 305 |
Goodwill and intangible assets | 845 | 844 |
Other | 124 | 91 |
Total assets held for sale | 1,940 | 1,836 |
Accounts payable | 115 | 87 |
Accrued expenses | 136 | 139 |
Other | 110 | 91 |
Total liabilities held for sale | $361 | $317 |
Gain_on_Acquisition_of_Control1
Gain on Acquisition of Controlling Interest in Equity Investment (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Pre-tax gain on remeasurement of existing equity interest | $0 | $30 |
Other Income (Expense) [Member] | Changes Measurement [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Pre-tax gain on remeasurement of existing equity interest | ' | $30 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Feb. 18, 2014 |
Internal Revenue Service (IRS) [Member] | ||
Tax Year 2006 [Member] | ||
Income Tax Disclosure [Abstract] | ' | ' |
Period for unrecognized tax benefits to decrease | '12 months | ' |
Significant change within twelve months in unrecognized tax benefits, Upper Bound | $52 | ' |
Income Tax Examination [Line Items] | ' | ' |
IRS Notice of Deficiency tax assessment | ' | $70 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw material | $448 | $445 |
Work-in-process | 162 | 145 |
Finished goods | 688 | 657 |
Total inventories | $1,298 | $1,247 |
Retirement_Plans_and_Postretir2
Retirement Plans and Postretirement Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net periodic benefit cost included in the statement of income was: | ' | ' |
Income from continuing operations | $428 | $401 |
Income (loss) from discontinued operations | 45 | -47 |
Net Income | 473 | 354 |
Pension [Member] | ' | ' |
Components of net periodic benefit cost: | ' | ' |
Service cost | 20 | 23 |
Interest cost | 26 | 24 |
Expected return on plan assets | -40 | -39 |
Amortization of actuarial losses | 12 | 19 |
Net periodic benefit cost | 18 | 27 |
Net periodic benefit cost included in the statement of income was: | ' | ' |
Income from continuing operations | 16 | 24 |
Income (loss) from discontinued operations | 2 | 3 |
Net Income | 18 | 27 |
Other Postretirement Benefits [Member] | ' | ' |
Components of net periodic benefit cost: | ' | ' |
Service cost | 3 | 3 |
Interest cost | 6 | 6 |
Expected return on plan assets | -6 | -5 |
Amortization of actuarial losses | -2 | 0 |
Net periodic benefit cost | 1 | 4 |
Net periodic benefit cost included in the statement of income was: | ' | ' |
Income from continuing operations | 1 | 4 |
Income (loss) from discontinued operations | 0 | 0 |
Net Income | $1 | $4 |
Retirement_Plans_and_Postretir3
Retirement Plans and Postretirement Benefits (Details Textual) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Pension [Member] | ' |
Pension and Other Postretirement Benefits (Textual) [Abstract] | ' |
Expected current year contributions to benefit plans | $136 |
Contributions to benefit plans | 32 |
Other Postretirement Benefits [Member] | ' |
Pension and Other Postretirement Benefits (Textual) [Abstract] | ' |
Expected current year contributions to benefit plans | 7 |
Contributions to benefit plans | $2 |
Debt_Details
Debt (Details) | Mar. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
USD ($) | USD ($) | 0.9% Notes Due February 2017 [Member] | 1.95% Notes Due March 1, 2019 [Member] | 3.5% Notes Due March 1, 2024 [Member] | Redeemable Notes [Member] | Euro Notes [Member] | Euro Notes [Member] | |
USD ($) | USD ($) | USD ($) | 5.15% Notes Due April 1, 2014 [Member] | 5.25% Euro Notes Due October 1, 2014 [Member] | 5.25% Euro Notes Due October 1, 2014 [Member] | |||
USD ($) | USD ($) | EUR (€) | ||||||
Debt Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding commercial paper | $950,000,000 | $1,700,000,000 | ' | ' | ' | ' | ' | ' |
Fair value | 6,774,000,000 | 4,670,000,000 | ' | ' | ' | ' | ' | ' |
Carrying value | 6,625,000,000 | 4,627,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities of long-term debt | ' | ' | ' | ' | ' | 800,000,000 | 1,000,000,000 | 750,000,000 |
Interest rate, stated percentage | ' | ' | 0.90% | 1.95% | 3.50% | 5.15% | 5.25% | 5.25% |
Face value of notes | ' | ' | $650,000,000 | $650,000,000 | $700,000,000 | ' | ' | ' |
Debt_Credit_Agreements_Details
Debt Credit Agreements (Details) (Line of Credit [Member], USD $) | 0 Months Ended | |
Jan. 22, 2014 | Mar. 31, 2014 | |
Line of Credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Short-term line of credit agreement | $1,000,000,000 | ' |
Short-term line of credit agreement term | '364 days | ' |
Short-term line of credit agreement, amount outstanding | ' | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $420 | $384 | $155 | $293 | ' | ' | ' | ' |
Other comprehensive income (loss) adjustments during the period | ' | ' | ' | ' | 28 | -154 | ' | ' |
Other comprehensive income (loss), adjustments reclassified to income | ' | ' | ' | ' | 0 | 4 | 10 | 19 |
Income taxes | ' | ' | ' | ' | ' | ' | -2 | -7 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | 28 | -150 | 8 | 12 |
Ending balance | $420 | $384 | $155 | $293 | $702 | $717 | $282 | $562 |
Segment_Information_Details
Segment Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 7 |