Cover Page
Cover Page shares in Millions | 3 Months Ended |
Mar. 31, 2024 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
Document Transition Report | false |
Entity File Number | 1-4797 |
Entity Registrant Name | ILLINOIS TOOL WORKS INC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-1258310 |
Entity Address, Address Line One | 155 Harlem Avenue |
Entity Address, City or Town | Glenview |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60025 |
City Area Code | 847 |
Local Phone Number | 724-7500 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 298.4 |
Entity Central Index Key | 0000049826 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock |
Trading Symbol | ITW |
Security Exchange Name | NYSE |
0.250% Euro Notes due 2024 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.250% Euro Notes due 2024 |
Trading Symbol | ITW24A |
Security Exchange Name | NYSE |
0.625% Euro Notes due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.625% Euro Notes due 2027 |
Trading Symbol | ITW27 |
Security Exchange Name | NYSE |
2.125% Euro Notes due 2030 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.125% Euro Notes due 2030 |
Trading Symbol | ITW30 |
Security Exchange Name | NYSE |
1.00% Euro Notes due 2031 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.00% Euro Notes due 2031 |
Trading Symbol | ITW31 |
Security Exchange Name | NYSE |
3.00% Euro Notes due 2034 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.00% Euro Notes due 2034 |
Trading Symbol | ITW34 |
Security Exchange Name | NYSE |
Statement of Income (Unaudited)
Statement of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Operating Revenue | $ 3,973 | $ 4,019 |
Cost of revenue | 2,145 | 2,341 |
Selling, administrative, and research and development expenses | 676 | 675 |
Amortization and impairment of intangible assets | 25 | 31 |
Operating Income | 1,127 | 972 |
Interest expense | (71) | (60) |
Other income (expense) | 16 | 10 |
Income Before Taxes | 1,072 | 922 |
Income Taxes | 253 | 208 |
Net Income | $ 819 | $ 714 |
Net Income Per Share: | ||
Basic (in dollars per share) | $ 2.74 | $ 2.34 |
Diluted (in dollars per share) | $ 2.73 | $ 2.33 |
Shares of Common Stock Outstanding During the Period: | ||
Average (in shares) | 298.9 | 305 |
Average assuming dilution (in shares) | 300 | 306.1 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 819 | $ 714 |
Foreign currency translation adjustments, net of tax | (51) | 37 |
Pension and other postretirement benefit adjustments, net of tax | 1 | 0 |
Other comprehensive income (loss) | (50) | 37 |
Comprehensive Income | $ 769 | $ 751 |
Statement of Financial Position
Statement of Financial Position (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and equivalents | $ 959 | $ 1,065 |
Trade receivables | 3,238 | 3,123 |
Inventories | 1,825 | 1,707 |
Prepaid expenses and other current assets | 349 | 340 |
Total current assets | 6,371 | 6,235 |
Net plant and equipment | 1,973 | 1,976 |
Goodwill | 4,904 | 4,909 |
Intangible assets | 653 | 657 |
Deferred income taxes | 462 | 479 |
Other assets | 1,290 | 1,262 |
Total assets | 15,653 | 15,518 |
Current Liabilities: | ||
Short-term debt | 2,066 | 1,825 |
Accounts payable | 597 | 581 |
Accrued expenses | 1,512 | 1,663 |
Cash dividends payable | 418 | 419 |
Income taxes payable | 251 | 187 |
Total current liabilities | 4,844 | 4,675 |
Noncurrent Liabilities: | ||
Long-term debt | 6,259 | 6,339 |
Deferred income taxes | 380 | 326 |
Noncurrent income taxes payable | 151 | 151 |
Other liabilities | 998 | 1,014 |
Total noncurrent liabilities | 7,788 | 7,830 |
Stockholders' Equity: | ||
Common stock (Authorized- 700.0 shares; par value of $0.01 per share): Issued- 550.0 shares in 2024 and 2023 Outstanding- 298.4 shares in 2024 and 299.3 shares in 2023 | 6 | 6 |
Additional paid-in-capital | 1,618 | 1,588 |
Retained earnings | 27,523 | 27,122 |
Common stock held in treasury | (24,243) | (23,870) |
Accumulated other comprehensive income (loss) | (1,884) | (1,834) |
Noncontrolling interest | 1 | 1 |
Total stockholders' equity | 3,021 | 3,013 |
Total liabilities and stockholders' equity | $ 15,653 | $ 15,518 |
Statement of Financial Positi_2
Statement of Financial Position (Unaudited) - Parenthetical - $ / shares shares in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock authorized (in shares) | 700 | 700 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 550 | 550 |
Common stock, outstanding (in shares) | 298.4 | 299.3 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance at Dec. 31, 2022 | $ 3,089 | $ 6 | $ 1,501 | $ 25,799 | $ (22,377) | $ (1,841) | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 714 | 714 | |||||
Common stock issued for stock-based compensation | 19 | 8 | 11 | ||||
Stock-based compensation expense | 17 | 17 | |||||
Repurchases of common stock | (375) | (375) | |||||
Excise tax on repurchases of common stock | (2) | (2) | |||||
Dividends declared | (398) | (398) | |||||
Other comprehensive income (loss) | 37 | 37 | |||||
Ending balance at Mar. 31, 2023 | 3,101 | 6 | 1,526 | 26,115 | (22,743) | (1,804) | 1 |
Beginning balance at Dec. 31, 2023 | 3,013 | 6 | 1,588 | 27,122 | (23,870) | (1,834) | 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 819 | 819 | |||||
Common stock issued for stock-based compensation | 19 | 15 | 4 | ||||
Stock-based compensation expense | 15 | 15 | |||||
Repurchases of common stock | (375) | (375) | |||||
Excise tax on repurchases of common stock | (2) | (2) | |||||
Dividends declared | (418) | (418) | |||||
Other comprehensive income (loss) | (50) | (50) | |||||
Ending balance at Mar. 31, 2024 | $ 3,021 | $ 6 | $ 1,618 | $ 27,523 | $ (24,243) | $ (1,884) | $ 1 |
Statement of Changes in Stock_2
Statement of Changes in Stockholders' Equity (Unaudited) - Parenthetical - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 1.40 | $ 1.31 |
Statement of Cash Flows (Unaudi
Statement of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Provided by (Used for) Operating Activities: | ||
Net Income | $ 819 | $ 714 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 72 | 68 |
Amortization and impairment of intangible assets | 25 | 31 |
Change in deferred income taxes | 44 | 3 |
Net provision for (recoveries of) uncollectible accounts | (3) | 3 |
(Income) loss from investments | 3 | (2) |
(Gain) loss on sale of plant and equipment | 0 | (1) |
Stock-based compensation expense | 15 | 17 |
Cumulative effect of change in inventory accounting method | (117) | 0 |
Other non-cash items, net | 6 | 4 |
(Increase) decrease in- | ||
Trade receivables | (139) | (17) |
Inventories | (12) | 64 |
Prepaid expenses and other assets | (38) | (50) |
Increase (decrease) in- | ||
Accounts payable | 22 | 2 |
Accrued expenses and other liabilities | (166) | (184) |
Income taxes | 57 | 77 |
Other, net | 1 | (1) |
Net cash provided by operating activities | 589 | 728 |
Cash Provided by (Used for) Investing Activities: | ||
Acquisition of businesses (excluding cash and equivalents) | (57) | 0 |
Additions to plant and equipment | (95) | (113) |
Proceeds from investments | 6 | 2 |
Proceeds from sale of plant and equipment | 2 | 3 |
Proceeds from sales of operations and affiliates | 0 | (3) |
Other, net | (8) | 0 |
Net cash provided by (used for) investing activities | (152) | (111) |
Cash Provided by (Used for) Financing Activities: | ||
Cash dividends paid | (419) | (400) |
Issuance of common stock | 41 | 33 |
Repurchases of common stock | (375) | (375) |
Net proceeds from (repayments of) debt with original maturities of three months or less | 952 | 709 |
Repayments of debt with original maturities of more than three months | (700) | (138) |
Other, net | (23) | (14) |
Net cash provided by (used for) financing activities | (524) | (185) |
Effect of Exchange Rate Changes on Cash and Equivalents | (19) | 3 |
Cash and Equivalents: | ||
Increase (decrease) during the period | (106) | 435 |
Beginning of period | 1,065 | 708 |
End of period | 959 | 1,143 |
Supplementary Cash Flow Information: | ||
Cash Paid During the Period for Interest | 76 | 62 |
Cash Paid During the Period for Income Taxes, Net of Refunds | $ 152 | $ 128 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies 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. Interim results are not necessarily indicative of results for the full year. 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 2023 Annual Report on Form 10-K. Certain reclassifications of prior year data have been made to conform with current year reporting. Inventories — Inventories are stated at the lower of cost or net realizable value and include material, labor and factory overhead. As of December 31, 2023, the last-in, first-out ("LIFO") method was used to determine the cost of inventories at certain U.S. businesses representing approximately 23% of total inventories, and the first-in, first-out ("FIFO") method, which approximates current cost, was used for all other inventories. During the first quarter of 2024, the Company changed the method used to determine the cost of inventory at certain U.S. businesses from LIFO to the FIFO method, as the Company believes the FIFO method is preferable because it provides a more consistent method for valuing inventory across the Company’s operations, improves comparability with peers, and better reflects the current value of inventories at the balance sheet date. The LIFO provision for the years ended December 31, 2023 and 2022 was $6 million of expense and $7 million of income, respectively, and was not material to the Company’s results of operations, financial position or cash flows. Therefore, the Company has recorded the pre-tax cumulative effect of this change in accounting method of $117 million as a reduction of Cost of revenue in the first quarter of 2024. Refer to Note 7. Inventories for additional information regarding the Company’s inventory balances. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On January 2, 2024, the Company completed the acquisition of one business in the Test & Measurement and Electronics segment for $57 million, net of cash acquired. This acquisition was not material to the Company’s results of operations, financial position or cash flows. The allocation of purchase price will be completed as soon as practicable, but no later than one year from the acquisition date. |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures The Company routinely reviews its portfolio of businesses relative to its business portfolio criteria and evaluates if further portfolio refinements may be needed. As such, the Company may commit to a plan to exit or dispose of certain businesses and present them as held for sale in periods prior to the sale of the business. In the fourth quarter of 2022, plans were approved to divest one business in the Specialty Products segment. This business was presented as held for sale beginning in the fourth quarter of 2022. This business was sold on April 3, 2023, with no significant gain or loss upon sale. Operating revenue related to this business that was included in the Company's results of operations was $9 million for the three months ended March 31, 2023. |
Operating Revenue
Operating Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Operating Revenue | Operating Revenue The Company's 84 diversified operating divisions are organized and managed based on similar product offerings and end markets, and are reported to senior management as the following seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. Operating revenue by product category, which is consistent with the Company's segment presentation, for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, In millions 2024 2023 Automotive OEM $ 816 $ 796 Food Equipment 631 635 Test & Measurement and Electronics 696 703 Welding 476 493 Polymers & Fluids 432 447 Construction Products 488 526 Specialty Products 440 423 Intersegment revenue (6) (4) Total operating revenue $ 3,973 $ 4,019 The following is a description of the product offerings, end markets and typical revenue transactions for each of the Company's seven segments: Automotive OEM — This segment is a global, niche supplier to top tier OEMs, providing unique innovation to address pain points for sophisticated customers with complex problems. Businesses in this segment produce components and fasteners for automotive-related applications. This segment primarily serves the automotive original equipment manufacturers and tiers market. Products in this segment include: • plastic and metal components, fasteners and assemblies for automobiles, light trucks and other industrial uses. Products sold in this segment are primarily manufactured to the customer's specifications and are sold under long-term supply agreements with OEM auto manufacturers and other top tier auto parts suppliers. The Company typically recognizes revenue for products in this segment at the time of shipment. Certain products may be produced utilizing tooling that is owned by the customer that the Company developed and is reimbursed by the customer for the associated cost. In these arrangements, the Company typically retains a contractual right to use the customer-owned tooling for the purpose of fulfilling its obligations under the supply agreement. The Company records reimbursements for the cost of customer-owned tooling as a cost offset rather than operating revenue as tooling is not considered a product offering central to the Company's operations. Food Equipment — This segment is a highly focused and branded industry leader in commercial food equipment differentiated by innovation and integrated service offerings. This segment primarily serves the food service, food retail and food institutional/restaurant markets. Products in this segment include: • warewashing equipment; • cooking equipment, including ovens, ranges and broilers; • refrigeration equipment, including refrigerators, freezers and prep tables; • food processing equipment, including slicers, mixers and scales; • kitchen exhaust, ventilation and pollution control systems; and • food equipment service, maintenance and repair. Revenue for equipment sold in this segment is typically recognized at the time of product shipment. In limited circumstances involving installation of equipment and customer acceptance, the Company may recognize revenue upon completion of installation and acceptance by the customer. Annual service contracts are typically sold separate from equipment and the related revenue is recognized on a straight-line basis over the annual service period. Operating revenue for on-demand service repairs and parts is recorded upon completion and customer acceptance of the work performed. Test & Measurement and Electronics — This segment is a branded and innovative producer of test and measurement and electronic manufacturing and maintenance, repair, and operations, or "MRO" solutions that improve efficiency and quality for customers in diverse end markets. Businesses in this segment produce equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. This segment primarily serves the electronics, general industrial, energy, automotive original equipment manufacturers and tiers, industrial capital goods and consumer durables markets. Products in this segment include: • equipment, consumables, and related software for testing and measuring of materials, structures, gases and fluids; • electronic assembly equipment; • electronic components and component packaging; • static control equipment and consumables used for contamination control in clean room environments; and • pressure sensitive adhesives and components for electronics, medical, transportation and telecommunications applications. Revenue for products sold in this segment is typically recognized at the time of shipment. In limited circumstances where significant obligations to the customer are unfulfilled at the time of shipment, typically involving installation of equipment and customer acceptance, revenue recognition is deferred until such obligations have been completed. In other limited arrangements involving the sale of highly specialized systems that include a high degree of customization and installation at the customer site, revenue is recognized over time if the product does not have an alternative use and the Company has an enforceable right to payment for work performed to date. Revenue for transactions meeting these criteria is recognized over time as work is performed based on the costs incurred to date relative to the total estimated costs at completion. Welding — This segment is a branded value-added equipment and specialty consumable manufacturer with innovative and leading technology. Businesses in this segment produce arc welding equipment, consumables and accessories for a wide array of industrial and commercial applications. This segment primarily serves the general industrial market, which includes fabrication, shipbuilding and other general industrial markets, and construction, energy, MRO, industrial capital goods and automotive original equipment manufacturers and tiers markets. Products in this segment include: • arc welding equipment; and • metal arc welding consumables and related accessories. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. Polymers & Fluids — This segment is a branded supplier to niche markets that require value-added, differentiated products. Businesses in this segment produce engineered adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. This segment primarily serves the automotive aftermarket, general industrial and MRO markets. Products in this segment include: • adhesives for industrial, construction and consumer purposes; • chemical fluids which clean or add lubrication to machines; • epoxy and resin-based coating products for industrial applications; • hand wipes and cleaners for industrial applications; • fluids, polymers and other supplies for auto aftermarket maintenance and appearance; • fillers and putties for auto body repair; and • polyester coatings and patch and repair products for the marine industry. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. Construction Products — This segment is a branded supplier of innovative engineered fastening systems and solutions. This segment primarily serves the residential construction, renovation/remodel and commercial construction markets. Products in this segment include: • fasteners and related fastening tools for wood and metal applications; • anchors, fasteners and related tools for concrete applications; • metal plate truss components and related equipment and software; and • packaged hardware, fasteners, anchors and other products for retail. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. Specialty Products — This segment is focused on diversified niche market opportunities with substantial patent protection producing beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. This segment primarily serves the food and beverage, consumer durables, general industrial, industrial capital goods, airlines and printing and publishing markets. Products in this segment include: • conveyor systems and line automation for the food and beverage industries; • plastic consumables that multi-pack cans and bottles and related equipment; • foil, film and related equipment used to decorate consumer products; • product coding and marking equipment and related consumables; • plastic and metal closures and components for appliances; • airport ground support equipment; and • components for medical devices. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. In limited circumstances where significant obligations to the customer are unfulfilled at the time of shipment, typically involving installation of equipment and customer acceptance, revenue is recognized when such obligations have been completed. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the three months ended March 31, 2024 and 2023 was 23.6% and 22.6%, respectively. The effective tax rates included discrete income tax benefits related to excess tax benefits from stock-based compensation of $9 million and $13 million for the three months ended March 31, 2024 and 2023, respectively. 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, His 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. 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 $9 million related predominantly to the potential resolution of income tax examinations. The Company has recorded its best estimate of the potential exposure for these issues. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Net income per basic share is computed by dividing net income by the weighted-average number of shares outstanding for the period. Net income per diluted share is computed by dividing net income by the weighted-average number of shares assuming dilution for stock options and restricted stock units. Dilutive shares reflect the potential additional shares that would be outstanding if the dilutive stock options outstanding were exercised and the unvested restricted stock units vested during the period. The computation of net income per share for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, In millions except per share amounts 2024 2023 Net Income $ 819 $ 714 Net income per share—Basic: Weighted-average common shares 298.9 305.0 Net income per share—Basic $ 2.74 $ 2.34 Net income per share—Diluted: Weighted-average common shares 298.9 305.0 Effect of dilutive stock options and restricted stock units 1.1 1.1 Weighted-average common shares assuming dilution 300.0 306.1 Net income per share—Diluted $ 2.73 $ 2.33 Options that were considered antidilutive were not included in the computation of diluted net income per share. There were 0.2 million and 0.3 million antidilutive options outstanding for the three months ended March 31, 2024 and 2023, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of March 31, 2024 and December 31, 2023 were as follows: In millions March 31, 2024 December 31, 2023 Raw material $ 719 $ 742 Work-in-process 236 234 Finished goods 870 848 LIFO reserve — (117) Total inventories $ 1,825 $ 1,707 During the first quarter of 2024, the Company changed the method used to determine the cost of inventory at certain U.S. businesses from LIFO to the FIFO method, as the Company believes the FIFO method is preferable because it provides a more consistent method for valuing inventory across the Company’s operations, improves comparability with peers, and better reflects the current value of inventories at the balance sheet date. Refer to Note 1. Significant Accounting Policies for additional information regarding this change in accounting method. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Pension and other postretirement benefit costs for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, Pension Other Postretirement Benefits In millions 2024 2023 2024 2023 Components of net periodic benefit cost: Service cost $ 9 $ 9 $ 1 $ 1 Interest cost 23 23 6 6 Expected return on plan assets (33) (32) (5) (5) Amortization of actuarial loss (gain) 2 1 (1) (1) Total net periodic benefit cost (income) $ 1 $ 1 $ 1 $ 1 The service cost component of net periodic benefit cost is presented within Cost of revenue and Selling, administrative, and research and development expenses in the Statement of Income while the other components of net periodic benefit cost are presented within Other income (expense). The Company expects to contribute approximately $60 million to its pension plans and $37 million to its other postretirement benefit plans in 2024. As of March 31, 2024, contributions of $32 million to pension plans and $10 million to other postretirement benefit plans have been made. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt as of March 31, 2024 and December 31, 2023 was as follows: In millions March 31, 2024 December 31, 2023 Short-term debt $ 2,066 $ 1,825 Long-term debt 6,259 6,339 Total debt $ 8,325 $ 8,164 Short-term debt included commercial paper of $1.4 billion and $464 million as of March 31, 2024 and December 31, 2023, respectively. The weighted-average interest rate on commercial paper as of March 31, 2024 and December 31, 2023 was 5.40% for both periods. Short-term debt also included $647 million as of March 31, 2024 and $661 million as of December 31, 2023 related to the 0.25% Euro notes due December 5, 2024, which were reclassified from Long-term debt to Short-term debt in the fourth quarter of 2023. Additionally, Short-term debt as of December 31, 2023 included $700 million related to the 3.50% notes due March 1, 2024, which were repaid on the due date. On May 5, 2023, the Company entered into a €1.3 billion Euro-denominated credit agreement (the "Euro Credit Agreement") with an initial termination date of May 3, 2024; provided, however, that the Company may extend the termination date by six months on up to two occasions. On May 12, 2023, the Company borrowed €1.3 billion of Euro term loans under the Euro Credit Agreement. Proceeds from the borrowing were used for general corporate purposes, including the repayment of outstanding debt. Any loan under the Euro Credit Agreement may not be re-borrowed once repaid, in full or in part, and will bear interest at a per annum rate equal to the applicable EURIBOR (adjusted for any statutory reserves) plus 0.75% for the interest period selected by the Company of one, three or six months. As of March 31, 2024, the Company had €1.3 billion outstanding under the Euro Credit Agreement with an interest rate of 4.61%, which was included in Long-term debt as the Company exercised its first option during the first quarter of 2024 and intends to exercise its second option to extend the termination date. The Company also has a $3.0 billion revolving credit facility with a termination date of October 21, 2027, which is available to provide additional liquidity, including to support the potential issuances of commercial paper. No amounts were outstanding under the revolving credit facility as of March 31, 2024 or December 31, 2023. The approximate fair value and related carrying value of the Company's total long-term debt, including current maturities of long-term debt presented as short-term debt, as of March 31, 2024 and December 31, 2023 were as follows: In millions March 31, 2024 December 31, 2023 Fair value $ 6,573 $ 7,457 Carrying value 6,906 7,700 The approximate fair values of the Company's long-term debt, including current maturities, were based on a valuation model using Level 2 observable inputs which included market rates for comparable instruments for the respective periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes changes in Accumulated other comprehensive income (loss) for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, In millions 2024 2023 Beginning balance $ (1,834) $ (1,841) Foreign currency translation adjustments during the period (28) 27 Income taxes (23) 10 Total foreign currency translation adjustments, net of tax (51) 37 Pension and other postretirement benefit adjustments reclassified to income 1 — Income taxes — — Total pension and other postretirement benefit adjustments, net of tax 1 — Ending balance $ (1,884) $ (1,804) Pension and other postretirement benefit adjustments reclassified to income related primarily to the amortization of actuarial gains and losses. Refer to Note 8. Pension and Other Postretirement Benefits for additional information. The Company designated the €1.0 billion of Euro notes issued in May 2014, the €1.0 billion of Euro notes issued in May 2015, the €1.6 billion of Euro notes issued in June 2019 and the €1.3 billion term loan under the Euro Credit Agreement in May 2023 as hedges of a portion of its net investment in Euro-denominated foreign operations to reduce foreign currency risk associated with the investment in these operations. Changes in the value of this debt resulting from fluctuations in the Euro to U.S. Dollar exchange rate have been recorded as foreign currency translation adjustments within Accumulated other comprehensive income (loss). On February 22, 2022, €500 million of the Euro notes issued in May 2014 were redeemed in full and on May 22, 2023, €500 million of the Euro notes issued in May 2015 were repaid on the due date. The carrying values of the outstanding 2019, 2015 and 2014 Euro notes and 2023 Euro term loan as of March 31, 2024 were $1.7 billion, $536 million, $530 million, and $1.4 billion, respectively. The amount of pre-tax gain (loss) related to this debt recorded in Other comprehensive income (loss) was a gain of $97 million for the three months ended March 31, 2024 and a loss of $41 million for the three months ended March 31, 2023. As of March 31, 2024 and 2023, the ending balance of Accumulated other comprehensive income (loss) consisted of after-tax cumulative translation adjustment losses of $1.6 billion and $1.5 billion, respectively, and after-tax unrecognized pension and other postretirement benefit costs of $326 million and $293 million, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's operations are organized and managed based on similar product offerings and end markets, and are reported to senior management as the following seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. Refer to Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations for information regarding operating revenue and operating income for the Company's segments. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventories | Inventories |
Revenue | Automotive OEM — This segment is a global, niche supplier to top tier OEMs, providing unique innovation to address pain points for sophisticated customers with complex problems. Businesses in this segment produce components and fasteners for automotive-related applications. This segment primarily serves the automotive original equipment manufacturers and tiers market. Products in this segment include: • plastic and metal components, fasteners and assemblies for automobiles, light trucks and other industrial uses. Products sold in this segment are primarily manufactured to the customer's specifications and are sold under long-term supply agreements with OEM auto manufacturers and other top tier auto parts suppliers. The Company typically recognizes revenue for products in this segment at the time of shipment. Certain products may be produced utilizing tooling that is owned by the customer that the Company developed and is reimbursed by the customer for the associated cost. In these arrangements, the Company typically retains a contractual right to use the customer-owned tooling for the purpose of fulfilling its obligations under the supply agreement. The Company records reimbursements for the cost of customer-owned tooling as a cost offset rather than operating revenue as tooling is not considered a product offering central to the Company's operations. Food Equipment — This segment is a highly focused and branded industry leader in commercial food equipment differentiated by innovation and integrated service offerings. This segment primarily serves the food service, food retail and food institutional/restaurant markets. Products in this segment include: • warewashing equipment; • cooking equipment, including ovens, ranges and broilers; • refrigeration equipment, including refrigerators, freezers and prep tables; • food processing equipment, including slicers, mixers and scales; • kitchen exhaust, ventilation and pollution control systems; and • food equipment service, maintenance and repair. Revenue for equipment sold in this segment is typically recognized at the time of product shipment. In limited circumstances involving installation of equipment and customer acceptance, the Company may recognize revenue upon completion of installation and acceptance by the customer. Annual service contracts are typically sold separate from equipment and the related revenue is recognized on a straight-line basis over the annual service period. Operating revenue for on-demand service repairs and parts is recorded upon completion and customer acceptance of the work performed. Test & Measurement and Electronics — This segment is a branded and innovative producer of test and measurement and electronic manufacturing and maintenance, repair, and operations, or "MRO" solutions that improve efficiency and quality for customers in diverse end markets. Businesses in this segment produce equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. This segment primarily serves the electronics, general industrial, energy, automotive original equipment manufacturers and tiers, industrial capital goods and consumer durables markets. Products in this segment include: • equipment, consumables, and related software for testing and measuring of materials, structures, gases and fluids; • electronic assembly equipment; • electronic components and component packaging; • static control equipment and consumables used for contamination control in clean room environments; and • pressure sensitive adhesives and components for electronics, medical, transportation and telecommunications applications. Revenue for products sold in this segment is typically recognized at the time of shipment. In limited circumstances where significant obligations to the customer are unfulfilled at the time of shipment, typically involving installation of equipment and customer acceptance, revenue recognition is deferred until such obligations have been completed. In other limited arrangements involving the sale of highly specialized systems that include a high degree of customization and installation at the customer site, revenue is recognized over time if the product does not have an alternative use and the Company has an enforceable right to payment for work performed to date. Revenue for transactions meeting these criteria is recognized over time as work is performed based on the costs incurred to date relative to the total estimated costs at completion. Welding — This segment is a branded value-added equipment and specialty consumable manufacturer with innovative and leading technology. Businesses in this segment produce arc welding equipment, consumables and accessories for a wide array of industrial and commercial applications. This segment primarily serves the general industrial market, which includes fabrication, shipbuilding and other general industrial markets, and construction, energy, MRO, industrial capital goods and automotive original equipment manufacturers and tiers markets. Products in this segment include: • arc welding equipment; and • metal arc welding consumables and related accessories. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. Polymers & Fluids — This segment is a branded supplier to niche markets that require value-added, differentiated products. Businesses in this segment produce engineered adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. This segment primarily serves the automotive aftermarket, general industrial and MRO markets. Products in this segment include: • adhesives for industrial, construction and consumer purposes; • chemical fluids which clean or add lubrication to machines; • epoxy and resin-based coating products for industrial applications; • hand wipes and cleaners for industrial applications; • fluids, polymers and other supplies for auto aftermarket maintenance and appearance; • fillers and putties for auto body repair; and • polyester coatings and patch and repair products for the marine industry. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. Construction Products — This segment is a branded supplier of innovative engineered fastening systems and solutions. This segment primarily serves the residential construction, renovation/remodel and commercial construction markets. Products in this segment include: • fasteners and related fastening tools for wood and metal applications; • anchors, fasteners and related tools for concrete applications; • metal plate truss components and related equipment and software; and • packaged hardware, fasteners, anchors and other products for retail. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. Specialty Products — This segment is focused on diversified niche market opportunities with substantial patent protection producing beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. This segment primarily serves the food and beverage, consumer durables, general industrial, industrial capital goods, airlines and printing and publishing markets. Products in this segment include: • conveyor systems and line automation for the food and beverage industries; • plastic consumables that multi-pack cans and bottles and related equipment; • foil, film and related equipment used to decorate consumer products; • product coding and marking equipment and related consumables; • plastic and metal closures and components for appliances; • airport ground support equipment; and • components for medical devices. Products in this segment are primarily manufactured to meet anticipated customer demand. The Company typically recognizes revenue for these products at the time of product shipment. In limited circumstances where significant obligations to the customer are unfulfilled at the time of shipment, typically involving installation of equipment and customer acceptance, revenue is recognized when such obligations have been completed. |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance which expands annual and interim disclosure requirements for reportable segments. The more significant provisions include the requirement to disclose significant segment expenses and certain disclosures made annually under existing guidance will be required for interim periods. The guidance is effective for the Company beginning with its annual reporting for the year ended December 31, 2024 and is required to be applied retrospectively to all periods presented. The Company is currently assessing the impact the guidance will have on its disclosures. In December 2023, the FASB issued authoritative guidance that expands the disclosure requirements for income taxes. The new guidance will require consistent categories and greater disaggregation of information presented in the effective tax rate reconciliation as well as disaggregation of income taxes paid by jurisdiction. The guidance is effective for the Company beginning with its annual reporting for the year ended December 31, 2025 and is required to be applied prospectively, with retrospective application to prior periods allowed. The Company is currently assessing the impact the guidance will have on its disclosures. |
Operating Revenue (Tables)
Operating Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Operating revenue by product category, which is consistent with the Company's segment presentation, for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, In millions 2024 2023 Automotive OEM $ 816 $ 796 Food Equipment 631 635 Test & Measurement and Electronics 696 703 Welding 476 493 Polymers & Fluids 432 447 Construction Products 488 526 Specialty Products 440 423 Intersegment revenue (6) (4) Total operating revenue $ 3,973 $ 4,019 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income per Share, Basic and Diluted | The computation of net income per share for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended March 31, In millions except per share amounts 2024 2023 Net Income $ 819 $ 714 Net income per share—Basic: Weighted-average common shares 298.9 305.0 Net income per share—Basic $ 2.74 $ 2.34 Net income per share—Diluted: Weighted-average common shares 298.9 305.0 Effect of dilutive stock options and restricted stock units 1.1 1.1 Weighted-average common shares assuming dilution 300.0 306.1 Net income per share—Diluted $ 2.73 $ 2.33 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of March 31, 2024 and December 31, 2023 were as follows: In millions March 31, 2024 December 31, 2023 Raw material $ 719 $ 742 Work-in-process 236 234 Finished goods 870 848 LIFO reserve — (117) Total inventories $ 1,825 $ 1,707 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Other Postretirement Benefit Costs | Pension and other postretirement benefit costs for the three months ended March 31, 2024 and 2023 were as follows: Three Months Ended March 31, Pension Other Postretirement Benefits In millions 2024 2023 2024 2023 Components of net periodic benefit cost: Service cost $ 9 $ 9 $ 1 $ 1 Interest cost 23 23 6 6 Expected return on plan assets (33) (32) (5) (5) Amortization of actuarial loss (gain) 2 1 (1) (1) Total net periodic benefit cost (income) $ 1 $ 1 $ 1 $ 1 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Total debt as of March 31, 2024 and December 31, 2023 was as follows: In millions March 31, 2024 December 31, 2023 Short-term debt $ 2,066 $ 1,825 Long-term debt 6,259 6,339 Total debt $ 8,325 $ 8,164 The approximate fair value and related carrying value of the Company's total long-term debt, including current maturities of long-term debt presented as short-term debt, as of March 31, 2024 and December 31, 2023 were as follows: In millions March 31, 2024 December 31, 2023 Fair value $ 6,573 $ 7,457 Carrying value 6,906 7,700 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes changes in Accumulated other comprehensive income (loss) for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, In millions 2024 2023 Beginning balance $ (1,834) $ (1,841) Foreign currency translation adjustments during the period (28) 27 Income taxes (23) 10 Total foreign currency translation adjustments, net of tax (51) 37 Pension and other postretirement benefit adjustments reclassified to income 1 — Income taxes — — Total pension and other postretirement benefit adjustments, net of tax 1 — Ending balance $ (1,884) $ (1,804) |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Percentage of LIFO inventory | 23% | |||
LIFO provision expense (income) | $ (7) | |||
Operating (expense) income | $ 1,127 | $ 972 | ||
Cost of goods and services sold | (2,145) | $ (2,341) | ||
Inventory Valuation and Obsolescence | ||||
Property, Plant and Equipment [Line Items] | ||||
LIFO provision expense (income) | $ 6 | |||
Cost of goods and services sold | $ 117 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Details) $ in Millions | 3 Months Ended | ||
Jan. 02, 2024 USD ($) business | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |||
Number of businesses acquired | business | 1 | ||
Payments to acquire businesses, net of cash acquired | $ | $ 57 | $ 57 | $ 0 |
Divestitures (Details)
Divestitures (Details) - 2022 Divestitures Plan - Specialty Products $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) | Dec. 31, 2022 business | |
Disposal Group, Held-for-Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of businesses to be divested | business | 1 | |
Disposal Group, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Operating revenue | $ | $ 9 |
Operating Revenue - Narrative (
Operating Revenue - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 division segment | |
Revenue from Contract with Customer [Abstract] | |
Number of company divisions | division | 84 |
Number of reportable segments | segment | 7 |
Operating Revenue - Segment Rev
Operating Revenue - Segment Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | $ 3,973 | $ 4,019 |
Operating segments | Automotive OEM | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | 816 | 796 |
Operating segments | Food Equipment | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | 631 | 635 |
Operating segments | Test & Measurement and Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | 696 | 703 |
Operating segments | Welding | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | 476 | 493 |
Operating segments | Polymers & Fluids | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | 432 | 447 |
Operating segments | Construction Products | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | 488 | 526 |
Operating segments | Specialty Products | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | 440 | 423 |
Intersegment revenue | ||
Disaggregation of Revenue [Line Items] | ||
Operating Revenue | $ 6 | $ 4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate reconciliation, percent | 23.60% | 22.60% |
Discrete income tax benefit | $ 9 | $ 13 |
Possible decrease in unrecognized tax benefits resulting from ongoing audits | $ 9 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net income | $ 819 | $ 714 |
Net income per share—Basic: | ||
Weighted-average common shares (in shares) | 298.9 | 305 |
Net income per share - Basic (in dollars per share) | $ 2.74 | $ 2.34 |
Net income per share—Diluted: | ||
Weighted-average common shares (in shares) | 298.9 | 305 |
Effect of dilutive stock options and restricted stock (in shares) | 1.1 | 1.1 |
Weighted-average common shares assuming dilution (in shares) | 300 | 306.1 |
Net income per share - Diluted (in dollars per share) | $ 2.73 | $ 2.33 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0.2 | 0.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 719 | $ 742 |
Work-in-process | 236 | 234 |
Finished goods | 870 | 848 |
LIFO reserve | 0 | (117) |
Total inventories | $ 1,825 | $ 1,707 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension | ||
Components of net periodic benefit cost: | ||
Service cost | $ 9 | $ 9 |
Interest cost | 23 | 23 |
Expected return on plan assets | (33) | (32) |
Amortization of actuarial loss (gain) | 2 | 1 |
Total net periodic benefit cost (income) | 1 | 1 |
Other Postretirement Benefits | ||
Components of net periodic benefit cost: | ||
Service cost | 1 | 1 |
Interest cost | 6 | 6 |
Expected return on plan assets | (5) | (5) |
Amortization of actuarial loss (gain) | (1) | (1) |
Total net periodic benefit cost (income) | $ 1 | $ 1 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected current year company contributions | $ 60 |
Contributions | 32 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected current year company contributions | 37 |
Contributions | $ 10 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 2,066 | $ 1,825 |
Long-term debt | 6,259 | 6,339 |
Total debt | $ 8,325 | $ 8,164 |
Debt - Narrative (Details)
Debt - Narrative (Details) | May 12, 2023 EUR (€) | May 05, 2023 EUR (€) extension | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | ||||
Commercial paper | $ 1,400,000,000 | $ 464,000,000 | ||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 5.40% | 5.40% | ||
1.25% Euro Notes Due May 22, 2023 | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 700,000,000 | |||
Stated interest rate | 3.50% | |||
Euro Credit Agreement | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Face value of notes | € | € 1,300,000,000 | |||
Extension option, term | 6 months | |||
Extension option, number of extensions | extension | 2 | |||
Proceeds from lines of credit | € | € 1,300,000,000 | |||
Long-term line of credit | $ 1,300,000,000 | |||
Effective interest rate | 4.61% | |||
Euro Credit Agreement | Line of Credit | EURIBOR rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Note Due October 21, 2027 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | $ 0 | $ 0 | ||
Maximum borrowing capacity | 3,000,000,000 | |||
0.25% Euro Notes Due December 5, 2024 | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 647,000,000 | $ 661,000,000 | ||
Stated interest rate | 0.25% | 0.25% |
Debt - Fair Value and Related C
Debt - Fair Value and Related Carrying Values (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Fair value | $ 6,573 | $ 7,457 |
Carrying value | $ 6,906 | $ 7,700 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of AOCI(L) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | $ 3,013 | $ 3,089 |
Other comprehensive income (loss) | (50) | 37 |
Ending balance | 3,021 | 3,101 |
Accumulated Other Comprehensive Income (Loss) | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | (1,834) | (1,841) |
Other comprehensive income (loss) | (50) | 37 |
Ending balance | (1,884) | (1,804) |
Accumulated Foreign Currency Adjustment Attributable to Parent | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Foreign currency translation adjustments during the period | (28) | 27 |
Income taxes | (23) | 10 |
Other comprehensive income (loss) | (51) | 37 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Pension and other postretirement benefit adjustments reclassified to income | 1 | 0 |
Income taxes | 0 | 0 |
Other comprehensive income (loss) | $ 1 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) $ in Millions | 3 Months Ended | ||||||||
May 22, 2023 EUR (€) | Feb. 22, 2022 EUR (€) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | May 12, 2023 EUR (€) | May 05, 2023 EUR (€) | Jun. 30, 2019 EUR (€) | May 31, 2015 EUR (€) | May 31, 2014 EUR (€) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Cumulative translation adjustment losses, net of tax | $ | $ 1,600 | $ 1,500 | |||||||
Unrecognized pension and other postretirement benefits costs, net of tax | $ | 326 | 293 | |||||||
Net Investment Hedging | Euro Notes | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other comprehensive income (loss), foreign currency transaction and translation adjustment, before tax | $ | 97 | $ (41) | |||||||
Euro Notes Issued May 2014 | Net Investment Hedging | Euro Notes | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Face value of notes | € | € 1,000,000,000 | ||||||||
Debt repayment | € | € 500,000,000 | ||||||||
Long-term debt | $ | 530 | ||||||||
Euro Notes Issued May 2015 | Net Investment Hedging | Euro Notes | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Face value of notes | € | € 1,000,000,000 | ||||||||
Debt repayment | € | € 500,000,000 | ||||||||
Long-term debt | $ | 536 | ||||||||
Euro Notes Issued June 2019 | Net Investment Hedging | Euro Notes | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Face value of notes | € | € 1,600,000,000 | ||||||||
Long-term debt | $ | 1,700 | ||||||||
Euro Credit Agreement | Line of Credit | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Face value of notes | € | € 1,300,000,000 | ||||||||
Euro Credit Agreement | Net Investment Hedging | Line of Credit | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Face value of notes | € | € 1,300,000,000 | ||||||||
Long-term debt | $ | $ 1,400 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 7 |