Exhibit 12.1
Illinois Tool Works Inc.
Computation of Historical Ratios of Earnings to Fixed Charges
(in millions, except ratio data)
| Six Months Ended June 30, | ||||||||||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Income from continuing operations before taxes | $ | 1,360 | $ | 2,699 | $ | 2,347 | $ | 3,206 | $ | 2,223 | $ | 1,807 | ||||||||||||
Plus: | ||||||||||||||||||||||||
Fixed charges (from below) | 131 | 293 | 285 | 261 | 239 | 217 | ||||||||||||||||||
Dividends from unconsolidated affiliates | — | — | 8 | 2 | 4 | 3 | ||||||||||||||||||
(Income) loss from unconsolidated affiliates, net of taxes | 5 | 11 | 16 | 26 | (4 | ) | (4 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Earnings | $ | 1,496 | $ | 3,003 | $ | 2,656 | $ | 3,495 | $ | 2,462 | $ | 2,023 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense | $ | 109 | $ | 250 | $ | 239 | $ | 213 | $ | 191 | $ | 174 | ||||||||||||
Estimate of interest within rental expense | 22 | 43 | 46 | 48 | 48 | 43 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Fixed Charges | $ | 131 | $ | 293 | $ | 285 | $ | 261 | $ | 239 | $ | 217 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of Earnings to Fixed Charges(1) | 11.4x | 10.2x | 9.3x | 13.4x | 10.3x | 9.3x | ||||||||||||||||||
| (1) | Certain reclassifications of prior years’ data have been made to conform to current year reporting, including discontinued operations. In addition, we divested a 51% majority interest in our Decorative Surfaces segment on October 31, 2012, which, due to our continuing involvement through our remaining 49% interest, is presented in continuing operations prior to October 31, 2012. See our Annual Report on Form 10-K for the year ended December 31, 2014 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, each of which is incorporated by reference in this prospectus supplement, for more detail regarding discontinued operations and the Decorative Surfaces transaction. |
