10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2011

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    

Commission file number 1-4797

ILLINOIS TOOL WORKS INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	36-1258310
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
3600 W. Lake Avenue, Glenview, Illinois	60026-1215
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (847) 724-7500

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange on Which Registered
Common Stock	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

    Yes   x    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

    Yes  ¨    No  x

The aggregate market value of the voting stock held by non-affiliates of the registrant as of June 30, 2011 was approximately $23,100,000,000 based on the New York Stock Exchange closing sales price as of June 30, 2011.

Shares of Common Stock outstanding at January 31, 2012: 483,773,784.

Documents Incorporated by Reference

Portions of the 2012 Proxy Statement for Annual Meeting of Stockholders to be held on May 4, 2012. Part III

PART I

ITEM 1. Business

General

Illinois Tool Works Inc. (the “Company” or “ITW”) was founded in 1912 and incorporated in 1915. The Company is a multinational manufacturer of a diversified range of industrial products and equipment with operations in 58 countries. These businesses are internally reported as 52 operating segments to senior management. The Company’s 52 operating segments have been aggregated into the following eight external reportable segments:

Transportation: Businesses in this segment produce components, fasteners, fluids and polymers, as well as truck remanufacturing and related parts and service.

In the Transportation segment, products and services include:

• plastic and metal components, fasteners and assemblies for automobiles and light trucks;

• fluids, polymers and other supplies for auto aftermarket maintenance and appearance;

• fillers and putties for auto body repair;

• polyester coatings and patch and repair products for the marine industry; and

• truck remanufacturing and related parts and service.

Power Systems & Electronics: Businesses in this segment produce equipment and consumables associated with specialty power conversion, metallurgy and electronics.

In the Power Systems & Electronics segment, products include:

• arc welding equipment;

• metal arc welding consumables and related accessories;

• metal solder materials for PC board fabrication;

• equipment and services for microelectronics assembly;

• electronic components and component packaging;

• static and contamination control equipment;

• airport ground support equipment; and

• pressure sensitive adhesives and components for telecommunications, electronics, medical and transportation applications.

Industrial Packaging: Businesses in this segment produce steel, plastic and paper products and equipment used for bundling, shipping and protecting goods in transit.

In the Industrial Packaging segment, products include:

• steel and plastic strapping and related tools and equipment;

• plastic stretch film and related equipment;

• paper and plastic products that protect goods in transit; and

• metal jacketing and other insulation products.

Food Equipment: Businesses in this segment produce commercial food equipment and related service.

In the Food Equipment segment, products and services 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.

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Construction Products: Businesses in this segment produce tools, fasteners and other products for construction applications.

In the Construction Products segment, products 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.

Polymers & Fluids: Businesses in this segment produce adhesives, sealants, lubrication and cutting fluids, and hygiene products.

In the Polymers & Fluids segment, products 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; and

• hand wipes and cleaners for industrial applications.

Decorative Surfaces: Businesses in this segment produce decorative surfacing materials for furniture, office and retail space, countertops, and other applications.

In the Decorative Surfaces segment, products include:

• decorative high-pressure laminate for furniture, office and retail space, and countertops; and

• high-pressure laminate worktops.

All Other: This segment includes all other operating segments.

In the All Other segment, products include:

• equipment and related software for testing and measuring of materials and structures;

• plastic reclosable packaging for consumer food storage;

• plastic consumables that multi-pack cans and bottles and related equipment;

• plastic fasteners and components for appliances, furniture and industrial uses;

• metal fasteners and components for appliances and industrial applications;

• foil, film and related equipment used to decorate consumer products;

• product coding and marking equipment and related consumables; and

• line integration, conveyor systems and line automation for the food and beverage industries.

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80/20 Business Process

A key element of the Company’s business strategy is its continuous 80/20 business process for both existing businesses and new acquisitions. The basic concept of this 80/20 business process is to focus on what is most important (the 20% of the items which account for 80% of the value) and to spend less time and resources on the less important (the 80% of the items which account for 20% of the value). The Company’s operations use this 80/20 business process to simplify and focus on the key parts of their business, and as a result, reduce complexity that often disguises what is truly important. The Company’s operations utilize the 80/20 process in various aspects of their business. Common applications of the 80/20 business process include:

• Simplifying product lines by reducing the number of products offered by combining the features of similar products, outsourcing products or, as a last resort, eliminating low-value products.

• Segmenting the customer base by focusing on the 80/20 customers separately and finding alternative ways to serve the 20/80 customers.

• Simplifying the supplier base by partnering with 80/20 suppliers and reducing the number of 20/80 suppliers.

• Designing business processes, systems and measurements around the 80/20 activities.

The result of the application of this 80/20 business process is that the Company has over time improved its long-term operating and financial performance. These 80/20 efforts can result in restructuring projects that reduce costs and improve margins. Corporate management works closely with those businesses that have operating results below expectations to help those businesses better apply this 80/20 business process and improve their results.

Acquisitions and Divestitures

As part of the Company’s ongoing strategy, the Company acquires businesses with complementary products and services as well as larger acquisitions that represent potential new platforms. Refer to the Acquisitions note in Item 8. Financial Statements and Supplementary Data for discussion of the Company’s acquired businesses.

The Company periodically reviews its operations for businesses which may no longer be aligned with its long-term objectives. Refer to the Discontinued Operations note in Item 8. Financial Statements and Supplementary Data for discussion of the Company’s discontinued operations.

Current Year Developments

Refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Financial Information about Segments and Markets

Segment and operating results are included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Segment Information note in Item 8. Financial Statements and Supplementary Data.

The principal end markets served by the Company’s eight segments by percentage of revenue are as follows:

End Markets Served	Transpor- tation			Power Systems & Electronics			Industrial Packaging			Food Equipment			Construction Products			Polymers & Fluids			Decorative Surfaces			All Other			Total Company
Commercial Construction		1	%		4	%		6	%		—	%		22	%		11	%		55	%		1	%		8	%
Residential Construction		—			—			2			—			44			2			14			—			6
Renovation Construction		—			—			—			—			26			2			30			—			5
General Industrial		4			43			26			1			4			31			1			22			18
Automotive OEM/Tiers		56			4			1			—			—			3			—			4			12
Automotive Aftermarket		31			1			—			—			—			7			—			—			6
Food Institutional/Restaurant		—			—			—			43			—			1			—			—			5
Food Service		—			—			—			36			—			2			—			3			5
Food Retail		—			—			1			16			—			—			—			3			2
Consumer Durables		1			3			3			—			2			4			—			15			4
Food & Beverage		—			—			13			—			—			2			—			21			6
Electronics		—			17			1			—			—			1			—			2			3
Primary Metals		—			3			21			—			—			1			—			2			4
Other		7			25			26			4			2			33			—			27			16
		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

“Other” includes several end markets, some of which are maintenance, repair and operations, or “MRO”, paper products, and printing and publishing.

The Company’s businesses primarily distribute their products directly to industrial manufacturers and through independent distributors.

Backlog

Backlog generally is not considered a significant factor in the Company’s businesses as relatively short delivery periods and rapid inventory turnover are characteristic of most of its products. Backlog by segment as of December 31, 2011 and 2010 is summarized as follows:

In Thousands	2011		2010
Transportation	$	373,000	$	315,000
Power Systems & Electronics		245,000		180,000
Industrial Packaging		151,000		117,000
Food Equipment		213,000		204,000
Construction Products		32,000		33,000
Polymers & Fluids		55,000		60,000
Decorative Surfaces		31,000		26,000
All Other		391,000		366,000
Total	$	1,491,000	$	1,301,000

Backlog orders scheduled for shipment beyond calendar year 2012 were not material as of December 31, 2011.

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The information set forth below is applicable to all industry segments of the Company unless otherwise noted:

Competition

With operations in 58 countries, the Company offers a wide range of products in a myriad of markets, many of which are fragmented, and we encounter a variety of competitors that vary by product line, end market and geographic area. Our competitors include many regional or specialized companies, as well as large U.S. and non-U.S. companies or divisions of large companies. Each of our segments generally has several main competitors and numerous smaller ones in most of their end markets and geographic areas. In addition to numerous smaller regional competitors, the welding business in the Power Systems & Electronics segment competes globally with Lincoln Electric and the Decorative Surfaces segment competes globally with the Formica Group.

In virtually all segments, we compete on the basis of product innovation, product quality, brand preference, service delivery and price. Technical capability is also a competitive factor in most of our segments. We believe that for each of our segments, our primary competitive advantages derive from our decentralized operating structure, which creates a strong focus on end markets and customers at the local level, enabling our businesses to respond rapidly to market dynamics. This structure enables our business units to drive operational excellence utilizing our 80/20 business process and leverages our product innovation capabilities. We also believe that our global footprint is a competitive advantage in many of our markets, especially in our Transportation and Decorative Surfaces segments.

Raw Materials

The Company uses raw materials of various types, primarily steel, resins, chemicals and paper, that are available from numerous commercial sources. The availability of materials and energy has not resulted in any significant business interruptions or other major problems, and no such problems are currently anticipated.

Research and Development

Developing new and improved products, broadening the application of established products, and continuing efforts to improve and develop new methods, processes and equipment all contribute to the Company’s organic growth. Many new products are designed to reduce customers’ costs by eliminating steps in their manufacturing processes, reducing the number of parts in an assembly or by improving the quality of customers’ assembled products. Typically, the development of such products is accomplished by working closely with customers on specific applications. Research and development expenses were $242,979,000 in 2011, $213,339,000 in 2010 and $191,859,000 in 2009.

Intellectual Property

The Company owns approximately 3,800 unexpired U.S. patents and 8,500 foreign patents covering articles, methods and machines. In addition, the Company has approximately 1,700 applications for patents pending in the United States Patent Office and 5,000 pending in foreign patent offices, but there is no assurance that any of these patents will be issued. The Company maintains an active patent department for the administration of patents and processing of patent applications.

The Company believes that many of its patents are valuable and important; however, the expiration of any one of the Company’s patents would not have a material effect on the Company’s results of operations or financial position. The Company also credits its leadership in the markets it serves to engineering capability; manufacturing techniques; skills and efficiency; marketing and sales promotion; and service and delivery of quality products to its customers.

In addition to patents, many of the Company’s products and services are sold under various owned or licensed trademarks, which are important to the Company in the aggregate. Some of the Company’s more significant trademarks include ITW, which is also used in conjunction with many of its businesses; Deltar and Shakeproof in the Transportation segment; Signode in the Industrial Packaging segment; Miller in the Power Systems & Electronics segment; Hobart in the Food Equipment segment; Paslode in the Construction Products segment; and Wilsonart in the Decorative Surfaces segment.

Environmental

The Company believes that its manufacturing plants and equipment are in substantial compliance with all applicable environmental regulations. Additional measures to maintain compliance are not expected to materially affect the Company’s capital expenditures, competitive position, financial position or results of operations.

Various legislative and administrative regulations concerning environmental issues have become effective or are under consideration in many parts of the world relating to manufacturing processes and the sale or use of certain products. To date, such developments have not had a substantial adverse impact on the Company’s revenues or earnings. The Company has made considerable efforts to develop and sell environmentally compatible products.

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Employees

The Company employed approximately 65,000 persons as of December 31, 2011 and considers its employee relations to be excellent.

International

The Company’s international operations include subsidiaries and joint ventures in 57 foreign countries on six continents. These operations serve such end markets as construction, general industrial, automotive, food institutional/restaurant and service, food and beverage, electronics, consumer durables, primary metals, and others on a worldwide basis. The Company’s revenues from sales to customers outside the United States were approximately 59% of revenues in 2011, 58% of revenues in 2010 and 58% of revenues in 2009.

Refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Segment Information note in Item 8. Financial Statements and Supplementary Data for additional information on international activities. International operations are subject to certain risks inherent in conducting business in foreign countries, including price controls, exchange controls, limitations on participation in local enterprises, nationalization, expropriation and other governmental action, and changes in currency exchange rates. Additional risks of our international operations are described under “Item 1A. Risk Factors.”

Executive Officers

Executive Officers of the Company as of February 17, 2012 were as follows:

Name	Office	Age
Sharon M. Brady	Senior Vice President, Human Resources	61
Timothy J. Gardner	Executive Vice President	56
Maria C. Green	Senior Vice President, General Counsel & Secretary	59
Craig A. Hindman	Executive Vice President	57
Ronald D. Kropp	Senior Vice President & Chief Financial Officer	46
Roland M. Martel	Executive Vice President	57
Steven L. Martindale	Executive Vice President	55
Sundaram Nagarajan	Executive Vice President	49
Christopher O’Herlihy	Executive Vice President	48
David C. Parry	Vice Chairman	58
E. Scott Santi	Vice Chairman	50
Randall J. Scheuneman	Vice President & Chief Accounting Officer	44
David B. Speer	Chairman & Chief Executive Officer	60
Juan Valls	Executive Vice President	50
Jane L. Warner	Executive Vice President	65

The executive officers of the Company serve at the pleasure of the Board of Directors. Except for Ms. Green, Ms. Warner and Messrs. Gardner, Martindale, Nagarajan, O’Herlihy, Scheuneman and Valls, each of the foregoing officers has been employed by the Company in various elected executive capacities for more than five years. Ms. Green was elected Senior Vice President, General Counsel & Secretary of the Company in February 2012. She joined the Company in 1997 as an Associate General Counsel and Assistant Secretary, became Deputy General Counsel and Assistant Secretary in 2008, and was elected Vice President, General Counsel & Secretary in August 2011. Ms. Warner was elected Executive Vice President in 2007. Prior to joining the Company in 2005 as President of the worldwide finishing businesses, she was President of Plexus Systems and a Vice President of EDS. Mr. Gardner was elected Executive Vice President in 2009. He joined the Company in 1997 and has held various sales and management positions in the consumer packaging businesses. Most recently, he served as Group President of the consumer packaging businesses. Mr. Martindale was elected Executive Vice President in 2008. Prior to joining the Company in 2005 as President of the test and measurement businesses, he was Chief Financial Officer and Chief Operating Officer of Instron. Mr. Nagarajan was elected Executive Vice President in 2010. He joined the Company in 1991 and has held various engineering and management positions in the welding businesses. Most recently, he served as Group President within the welding businesses. Mr. O’Herlihy was elected Executive Vice President in 2010. He joined the Company in 1989 and has held various operational, management and leadership positions of increasing responsibility. Most recently he served as President, international food equipment businesses. Mr. Scheuneman was appointed Vice President and Chief Accounting Officer in 2009. Prior to joining the Company in 2009, he held several financial leadership positions at W.W. Grainger, Inc., including Vice President, Finance, for the Lab Safety Supply business from 2006 to 2009, and Vice President, Internal Audit, from 2002 to 2006. He was appointed Principal Accounting Officer in 2009. Mr. Valls was elected Executive Vice President in 2007. Prior to this, he was Vice President and General Manager of ITW Delfast International. He joined the Company in 1989 and held various management positions in the European automotive businesses.

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Available Information

The Company electronically files reports with the Securities and Exchange Commission (SEC). The public may read and copy any materials the Company has filed with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an internet site (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Copies of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are also available free of charge through the Company’s website (www.itw.com), as soon as reasonably practicable after electronically filing with or otherwise furnishing such information to the SEC, and are available in print to any shareholder who requests them. Also posted on the Company’s website are the following:

• Statement of Principles of Conduct;

• Code of Ethics for CEO and key financial and accounting personnel;

• Charters of the Audit, Corporate Governance and Nominating, and Compensation Committees of the Board of Directors;

• Corporate Governance Guidelines;

• Global Anti-Corruption Policy;

• Corporate Citizenship Statement; and

• Government Affairs Information.

ITEM 1A. Risk Factors

The Company’s business, financial condition, results of operations and cash flows are subject to various risks, including, but not limited to those set forth below, which could cause actual results to vary materially from recent results or from anticipated future results. These risk factors should be considered together with information included elsewhere in this Annual Report on Form 10-K.

The Company’s results are impacted by global economic conditions. Weakness or downturns in the markets served by the Company could adversely affect our business, results of operations or financial condition.

During 2010 and 2011, many of our end markets showed improvement in general economic conditions, but European economic conditions slowed in the second half of 2011. We cannot be assured that we will not experience adverse effects from broad economic trends in Europe or other geographies. Instability in global economic conditions could have an adverse effect on the Company’s business, results of operations or financial condition.

The global nature of our operations subjects the Company to political and economic risks that could adversely affect our business, results of operations or financial condition.

The Company currently operates in 58 countries. In 2011, approximately 59% of the Company’s revenues were generated from sales to customers outside of the U.S. As the Company continues to expand its global footprint, these sales may represent an increasing portion of the Company’s revenues. The risks inherent in our global operations include:

• fluctuation in currency exchange rates;

• limitations on ownership or participation in local enterprises;

• price controls, exchange controls and limitations on repatriation of earnings;

• transportation delays and interruptions;

• political, social and economic instability and disruptions;

• acts of terrorism;

• government embargoes or foreign trade restrictions;

• the imposition of duties and tariffs and other trade barriers;

• import and export controls;

• labor unrest and current and changing regulatory environments;

• the potential for expropriation or nationalization of enterprises;

• difficulties in staffing and managing multi-national operations;

• limitations on its ability to enforce legal rights and remedies; and

• potentially adverse tax consequences.

If the Company is unable to successfully manage these and other risks associated with managing and expanding its international businesses, the risks could have a material adverse effect on the Company’s business, results of operations or financial condition.

Our acquisition of businesses could negatively impact our profitability and return on invested capital.

As part of our business strategy, we acquire businesses in the ordinary course. Our acquisitions involve a number of risks and financial, accounting, managerial and operational challenges, including the following, any of which could adversely affect our growth and profitability:

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• Any acquired business, technology, service or product could under-perform relative to our expectations and the price that we paid for it, or not perform in accordance with our anticipated timetable.

• Acquisitions could cause our financial results to differ from our expectations in any given fiscal period, or over the long term.

• Acquisition-related earnings charges could adversely impact operating results.

• Acquisitions could place unanticipated demands on our management, operational resources and financial and internal control systems.

• We may assume unknown liabilities, known contingent liabilities that become realized or known liabilities that prove greater than anticipated. The realization of any of these liabilities may increase our expenses or adversely affect our financial position.

• As a result of our acquisitions, we have recorded significant goodwill and other identifiable intangible assets on our balance sheet. If we are not able to realize the value of these assets, we may incur charges relating to the impairment of these assets.

We may incur fines or penalties, damage to our reputation or other adverse consequences if our employees, agents or business partners violate anti-bribery or other laws.

We cannot provide assurance that our internal controls will always protect us from reckless or criminal acts committed by our employees, agents or business partners that would violate U.S. and/or non-U.S. laws, including anti-bribery laws, competition, and export and import compliance. Any such improper actions could subject us to civil or criminal investigations in the U.S. and in other jurisdictions, could lead to substantial civil or criminal monetary and non-monetary penalties against us or our subsidiaries, and could damage our reputation.

A significant fluctuation between the U.S. Dollar and other currencies could adversely impact our operating income.

Although the Company’s financial results are reported in U.S. Dollars, a significant portion of our sales and operating costs are realized in other currencies, with the largest concentration of foreign sales occurring in Europe. The Company’s profitability is affected by movements of the U.S. Dollar against the Euro and other foreign currencies in which we generate revenues and incur expenses. Significant long-term fluctuations in relative currency values, in particular an increase in the value of the U.S. Dollar against foreign currencies, could have an adverse effect on our profitability and financial condition.

Diminished credit availability could adversely impact our ability to readily obtain financing or to obtain cost-effective financing.

The Company may utilize the commercial paper markets for a portion of its short-term liquidity needs. If conditions in the financial markets decline, there is no assurance that the commercial paper markets will remain available to us or that the lenders participating in our revolving and long-term credit facilities will be able to provide financing in accordance with the terms of our credit agreements. A failure of one or more of the syndicate members in our credit facilities could reduce the availability of credit and adversely affect our liquidity. If we determine that it is appropriate or necessary to raise capital in the future, funds may not be available on cost-effective terms.

Raw material price increases and supply shortages could adversely affect results.

The supply of raw materials to the Company and to its component parts suppliers could be interrupted for a variety of reasons, including availability and pricing. Prices for raw materials necessary for production have fluctuated significantly in the past and significant increases could adversely affect the Company’s results of operations and profit margins. Due to pricing pressure or other factors, the Company may not be able to pass along increased raw material and components parts prices to its customers in the form of price increases or its ability to do so could be delayed. Consequently, its results of operations and financial condition may be adversely affected.

If the Company is unable to successfully introduce new products or adequately protect its intellectual property, its future growth may be adversely affected.

The Company’s ability to develop new products based on innovation can affect its competitive position and often requires the investment of significant resources. Difficulties or delays in research, development or production of new products and services or failure to gain market acceptance of new products and technologies may reduce future revenues and adversely affect the Company’s competitive position.

Protecting the Company’s intellectual property is critical to its innovation efforts. The Company owns a number of patents, trademarks and licenses related to its products and has exclusive and non-exclusive rights under patents owned by others. The Company’s intellectual property may be challenged or infringed upon by third parties, particularly in countries where property rights are not highly developed or protected, or the Company may be unable to maintain, renew or enter into new license agreements with third-party owners of intellectual property on reasonable terms. Unauthorized use of the Company’s intellectual property rights or inability to preserve existing intellectual property rights could adversely impact the Company’s competitive position and results of operations.

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An unfavorable environment for making acquisitions may adversely affect the Company’s growth rate.

Suitable acquisitions can be difficult to complete due to high valuations for attractive acquisitions, competition among prospective buyers, the need for antitrust or other regulatory approval and the availability of affordable financing. Changes in regulatory or accounting requirements or instability in the credit markets could adversely impact our ability to consummate acquisitions. Our ability to grow through acquisitions depends on our ability to identify and successfully complete suitable acquisitions at appropriate prices. There can be no assurance that the Company will be able to find attractive businesses to purchase or that it will be able to acquire such businesses on acceptable terms. If the Company is unsuccessful in its efforts, its growth rate could be adversely affected.

Unfavorable tax law changes and tax authority rulings may adversely affect results.

The Company is subject to income taxes in the United States and in various foreign jurisdictions. Domestic and international tax liabilities are based on the income and expenses in various tax jurisdictions. The Company’s effective tax rate could be adversely affected by changes in the mix of earnings among countries with differing statutory tax rates, changes in the valuation allowance of deferred tax assets or tax laws. The amount of income taxes and other taxes are subject to ongoing audits by U.S. federal, state and local tax authorities and by non-U.S. authorities. If these audits result in assessments different from amounts recorded, future financial results may include unfavorable tax adjustments.

Our defined benefit pension plans are subject to financial market risks that could adversely affect our results of operations and cash flows.

The performance of the financial markets and interest rates impact our funding obligations under our defined benefit pension plans. Significant changes in market interest rates, decreases in the fair value of plan assets and investment losses on plan assets may increase our funding obligations and adversely impact our results of operations and cash flows.

Potential adverse outcome in legal proceedings may adversely affect results.

The Company’s businesses expose it to potential toxic tort and other types of product liability claims that are inherent in the design, manufacture and sale of its products and the products of third-party vendors. The Company currently maintains insurance programs consisting of self insurance up to certain limits and excess insurance coverage for claims over established limits. There can be no assurance that the Company will be able to obtain insurance on acceptable terms or that its insurance programs will provide adequate protection against actual losses. In addition, the Company is subject to the risk that one or more of its insurers may become insolvent and become unable to pay claims that may be made in the future. Even if it maintains adequate insurance programs, successful claims could have a material adverse effect on the Company’s financial condition, liquidity and results of operations and on its ability to obtain suitable, adequate or cost-effective insurance in the future.

Forward-Looking Statements

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “guidance,” “forecast,” and other similar words, including, without limitation, statements regarding the expected acquisition or disposition of businesses, the availability of raw materials and energy, the expiration of any one of the Company’s patents, the cost of compliance with environmental regulations, the continued growth in North American and Asia Pacific markets and slower growth in European markets in 2012, the adequacy of internally generated funds and credit facilities, the meeting of dividend payout objectives, the ability to fund debt service obligations, the likelihood of future goodwill or intangible asset impairment charges, the Company’s portion of future benefit payments related to pension and postretirement benefits, the availability of additional financing, the outcome of outstanding legal proceedings, the impact of adopting new accounting pronouncements and the estimated timing and amount related to the resolution of tax matters. These statements are subject to certain risks, uncertainties, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that may influence future results include those risks described above. These risks are not all inclusive and

given these and other possible risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Any forward-looking statements made by ITW speak only as of the date on which they are made. ITW is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.

ITW practices fair disclosure for all interested parties. Investors should be aware that while ITW regularly communicates with securities analysts and other investment professionals, it is against ITW’s policy to disclose to them any material non-public information or other confidential commercial information. Shareholders should not assume that ITW agrees with any statement or report issued by any analyst irrespective of the content of the statement or report.

9

ITEM 1B. Unresolved Staff Comments

Not applicable.

ITEM 2. Properties

As of December 31, 2011, the Company operated the following plants and office facilities, excluding regional sales offices and warehouse facilities:

	Number Of Properties		Floor Space
			Owned		Leased		Total
			(In millions of square feet)
Transportation		99		4.0		2.3		6.3
Power Systems & Electronics		110		5.5		2.0		7.5
Industrial Packaging		134		6.4		4.2		10.6
Food Equipment		48		3.7		0.7		4.4
Construction Products		94		2.9		1.5		4.4
Polymers & Fluids		93		3.5		1.6		5.1
Decorative Surfaces		9		4.1		—		4.1
All Other		193		5.1		2.9		8.0
Corporate		43		4.3		0.2		4.5
Total		823		39.5		15.4		54.9

The principal plants and office facilities outside of the U.S. are in Australia, Belgium, Brazil, Canada, China, Czech Republic, Denmark, France, Germany, Ireland, Italy, Netherlands, Spain, Switzerland and the United Kingdom.

The Company’s properties are primarily of steel, brick or concrete construction and are maintained in good operating condition. Productive capacity, in general, currently exceeds operating levels. Capacity levels are somewhat flexible based on the number of shifts operated and on the number of overtime hours worked. The Company adds productive capacity from time to time as required by increased demand. Additions to capacity can be made within a reasonable period of time due to the nature of the businesses.

ITEM 3. Legal Proceedings

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

10

PART II

ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Common Stock Price and Dividend Data—The common stock of Illinois Tool Works Inc. was listed on the New York Stock Exchange for 2011 and 2010. Quarterly market price and dividend data for 2011 and 2010 were as shown below:

	Market Price Per Share				Dividends Declared
	High		Low		Per Share
2011:
Fourth quarter	$	49.92	$	39.12	$	0.36
Third quarter		59.27		40.82		0.36
Second quarter		58.79		52.09		0.34
First quarter		56.36		52.42		0.34
2010:
Fourth quarter	$	53.89	$	45.57	$	0.34
Third quarter		47.67		40.33		0.34
Second quarter		52.72		41.05		0.31
First quarter		50.15		41.94		0.31

The approximate number of holders of record of common stock as of January 31, 2012 was 9,459. This number does not include beneficial owners of the Company’s securities held in the name of nominees.

11

ITEM 6. Selected Financial Data

In Thousands (except per share amounts)	2011		2010		2009		2008		2007
Operating revenues	$	17,786,583	$	15,415,692	$	13,572,996	$	16,544,281	$	15,549,806
Income from continuing operations		2,017,014		1,452,438		968,638		1,623,963		1,764,678
Income from continuing operations per common share:
Basic		4.10		2.90		1.94		3.13		3.20
Diluted		4.08		2.89		1.93		3.12		3.17
Total assets at year-end		17,983,514		16,412,311		15,811,432		15,203,551		15,525,862
Long-term debt at year-end		3,488,198		2,542,087		2,861,304		1,247,883		1,888,839
Cash dividends declared per common share		1.40		1.30		1.24		1.18		0.98

Certain reclassifications of prior years’ data have been made to conform to current year reporting, including the elimination of the one month lag for the reporting of the Company’s international operations outside of North America (fiscal years 2010 and 2009 only), and discontinued operations as discussed below.

Prior to 2011, the Company’s international operations outside of North America had a fiscal reporting period that began on December 1 and ended on November 30. Effective January 1, 2011, the Company eliminated the one month lag for the reporting of its international operations outside of North America. As a result, the Company is now reporting both North American and international results on a calendar year basis. The Company determined that the elimination of the one month reporting lag was preferable because the same period-end reporting date improves overall financial reporting as the impact of current events, economic conditions and global trends are consistently reflected in the financial statements of the North American and international business units. The Company has applied this change in accounting principle retrospectively to fiscal periods 2010 and 2009. Refer to the International Reporting Lag note in Item 8. Financial Statements and Supplementary Data for discussion of this change in accounting principle.

The Company periodically reviews its operations for businesses that may no longer be aligned with its long-term objectives. For businesses reported as discontinued operations in the statement of income, all related prior period income statement information has been restated to conform to the current year reporting of these businesses. Income (loss) from discontinued operations was $54,370,000, $50,514,000, $4,059,000, $(104,960,000), and $105,184,000 in the years 2011, 2010, 2009, 2008, and 2007, respectively. Refer to the Discontinued Operations note in Item 8. Financial Statements and Supplementary Data for discussion of the Company’s discontinued operations.

On January 1, 2009, the Company adopted new accounting guidance related to business combinations. The new accounting guidance requires an entity to recognize assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. This new guidance also requires prospectively that (1) acquisition-related costs be expensed as incurred; (2) restructuring costs generally be recognized as post-acquisition expenses; and (3) changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period impact income tax expense. Refer to the Acquisitions note in Item 8. Financial Statements and Supplementary Data for discussion of this change in accounting principle.

On January 1, 2009, the Company adopted new accounting guidance on fair value measurements for all nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value on a nonrecurring basis. The new accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and provides guidance for measuring fair values and the necessary disclosures. Refer to the Goodwill and Intangible Assets note in Item 8. Financial Statements and Supplementary Data for discussion of this change in accounting principle.

On January 1, 2008, the Company adopted new accounting guidance related to defined benefit plans which required the Company to change its measurement date to correspond with the Company’s fiscal year-end. The Company previously used a September 30 measurement date. As allowed under the provisions of this new guidance, the Company elected to remeasure its plan assets and benefit obligation as of the beginning of the fiscal year. Upon adoption, the Company recorded an after-tax charge of $12,788,000 to beginning retained earnings and an after-tax gain to accumulated other comprehensive income of $3,573,000 related to the three months ended December 31, 2007.

Information on the comparability of results is included in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

12

ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

INTRODUCTION

Illinois Tool Works Inc. (the “Company” or “ITW”) is a multinational manufacturer of a diversified range of industrial products and equipment with operations in 58 countries. These businesses are internally reported as 52 operating segments to senior management. The Company’s 52 operating segments have been aggregated into the following eight external reportable segments: Transportation; Power Systems & Electronics; Industrial Packaging; Food Equipment; Construction Products; Polymers & Fluids; Decorative Surfaces; and All Other.

Due to the large number of diverse businesses and the Company’s decentralized operating style, the Company does not require its businesses to provide detailed information on operating results. Instead, the Company’s corporate management collects data on several key measurements: operating revenues, operating income, operating margins, overhead costs, number of months on hand in inventory, days sales outstanding in accounts receivable, past due receivables and return on invested capital. These key measures are monitored by management and significant changes in operating results versus current trends in end markets and variances from forecasts are discussed with operating unit management.

The results of each segment are analyzed by identifying the effects of changes in the results of the base businesses, newly acquired companies, restructuring costs, goodwill and intangible asset impairment charges, and currency translation on the operating revenues and operating income of each segment. Base businesses are those businesses that have been included in the Company’s results of operations for more than 12 months. The changes to base business operating income include the estimated effects of both operating leverage and changes in variable margins and overhead costs. Operating leverage is the estimated effect of the base business revenue changes on operating income, assuming variable margins remain the same as the prior period. As manufacturing and administrative overhead costs usually do not significantly change as a result of revenues increasing or decreasing, the percentage change in operating income due to operating leverage is usually more than the percentage change in the base business revenues.

A key element of the Company’s business strategy is its continuous 80/20 business process for both existing businesses and new acquisitions. The basic concept of this 80/20 business process is to focus on what is most important (the 20% of the items which account for 80% of the value) and to spend less time and resources on the less important (the 80% of the items which account for 20% of the value). The Company’s operations use this 80/20 business process to simplify and focus on the key parts of their business, and as a result, reduce complexity that often disguises what is truly important. The Company’s operations utilize the 80/20 process in various aspects of their businesses. Common applications of the 80/20 business process include:

• Simplifying product lines by reducing the number of products offered by combining the features of similar products, outsourcing products or, as a last resort, eliminating low-value products.

• Segmenting the customer base by focusing on the 80/20 customers separately and finding alternative ways to serve the 20/80 customers.

• Simplifying the supplier base by partnering with 80/20 suppliers and reducing the number of 20/80 suppliers.

• Designing business processes, systems and measurements around the 80/20 activities.

The result of the application of this 80/20 business process is that the Company has over time improved its long-term operating and financial performance. These 80/20 efforts can result in restructuring projects that reduce costs and improve margins. Corporate management works closely with those businesses that have operating results below expectations to help those businesses better apply this 80/20 business process and improve their results.

13

INTERNATIONAL REPORTING CHANGE

Effective January 1, 2011, the Company eliminated the one month lag for the reporting of its international operations outside of North America. As a result, the Company now reports both North American and international results on a calendar year basis. Prior to this, the international fiscal reporting period began on December 1st and ended on November 30th. The Company has applied this change in accounting principle retrospectively to all prior period financial statements presented. Refer to the International Reporting Lag note in Item 8. Financial Statements and Supplementary Data for discussion of the international reporting change.

DISCONTINUED OPERATIONS

The Company periodically reviews its operations for businesses that may no longer be aligned with its long-term objectives. For businesses reported as discontinued operations in the statement of income, all related prior period income statement information has been restated to conform to the current year reporting of these businesses. Refer to the Discontinued Operations note in Item 8. Financial Statements and Supplementary Data for discussion of the Company’s discontinued operations.

CONSOLIDATED RESULTS OF OPERATIONS

The Company’s consolidated results of operations for 2011, 2010 and 2009 are summarized as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	17,786,583		$	15,415,692		$	13,572,996
Operating income		2,731,008			2,254,017			1,382,963
Margin %		15.4	%		14.6	%		10.2	%

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		7.5	%		21.0	%		1.9	%		10.1	%		40.7	%		2.8	%
Changes in variable margins and overhead costs		—			(4.9	)		(0.7	)		—			2.4			0.2
		7.5			16.1			1.2			10.1			43.1			3.0
Acquisitions and divestitures		4.8			2.3			(0.4	)		3.2			2.2			(0.2	)
Restructuring costs		—			(0.6	)		(0.1	)		—			8.7			0.8
Impairment of goodwill and intangibles		—			—			—			—			7.5			0.7
Translation		3.1			3.4			0.1			0.4			1.5			0.1
Other		—			—			—			(0.1	)		—			—
		15.4	%		21.2	%		0.8	%		13.6	%		63.0	%		4.4	%

Operating Revenues

Revenues increased 15.4% in 2011 versus 2010 primarily due to higher base revenues, revenues from acquisitions, and the favorable effect of currency translation. Base revenues increased 7.5% in 2011 versus 2010 as worldwide economic conditions strengthened. However, European economic conditions slowed in the second half of the year. North American and international base revenues increased 9.0% and 5.7%, respectively, in 2011 versus 2010. Base revenues in Europe and China increased 5.6% and 14.2%, respectively, in 2011 versus 2010. End markets associated with welding, transportation and test and measurement businesses showed strength in 2011. In 2012, the company anticipates continued growth in North American and Asia Pacific markets with European markets expected to be relatively flat as compared to 2011.

Revenues increased 13.6% in 2010 versus 2009 primarily due to higher base revenues and revenues from acquisitions. Base revenues increased 10.1% in 2010 versus 2009 as the Company saw improvement in macroeconomic indices across many geographies as worldwide end markets began to recover from the global recession. North American and international base revenues increased 11.2% and 9.1%, respectively, in 2010 versus 2009. End markets associated with transportation, welding, industrial packaging, PC board fabrication and electronics showed improvement in 2010.

14

Operating Income

Operating income increased 21.2% in 2011 versus 2010 primarily due to the increase in base revenues, the favorable effect of currency translation and income from acquisitions. Base margins increased 120 basis points primarily due to the positive leverage effect of the increase in base revenues, partially offset by the negative impact of selling price versus material cost comparisons. Additionally, acquisitions and divestitures diluted margins by 40 basis points primarily due to amortization expense related to intangible assets.

Operating income increased 63.0% in 2010 versus 2009 primarily due to the increase in base revenues, lower restructuring expenses, and 2009 goodwill and intangible asset impairment charges. Base margins increased 300 basis points primarily due to the positive leverage effect of the increase in base revenues. Additionally, benefits from restructuring projects were partially offset by unfavorable selling price versus material cost comparisons. Lower restructuring expenses in 2010 versus 2009 reflect the Company’s 2009 efforts to reduce costs in response to weak economic conditions. In 2009, the Company recorded impairment charges of $90.0 million and $15.6 million against goodwill and intangibles, respectively, compared to $1.0 million in intangible asset impairment charges in 2010.

TRANSPORTATION

Businesses in this segment produce components, fasteners, fluids and polymers, as well as truck remanufacturing and related parts and service.

In the Transportation segment, products and services include:

• plastic and metal components, fasteners and assemblies for automobiles and light trucks;

• fluids, polymers and other supplies for auto aftermarket maintenance and appearance;

• fillers and putties for auto body repair;

• polyester coatings and patch and repair products for the marine industry; and

• truck remanufacturing and related parts and service.

In 2011, this segment primarily served the automotive original equipment manufacturers and tiers (56%) and automotive aftermarket (31%) markets.

The results of operations for the Transportation segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	3,108,349		$	2,522,226		$	2,092,249
Operating income		474,592			369,454			155,373
Margin %		15.3	%		14.6	%		7.4	%

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		10.1	%		25.1	%		2.0	%		18.0	%		85.6	%		4.2	%
Changes in variable margins and overhead costs		—			(7.0	)		(0.9	)		—			19.0			1.2
		10.1			18.1			1.1			18.0			104.6			5.4
Acquisitions and divestitures		10.6			8.6			(0.3	)		2.5			7.4			0.2
Restructuring costs		—			(1.3	)		(0.2	)		—			16.1			1.0
Impairment of goodwill and intangibles		—			—			—			—			9.1			0.6
Translation		2.6			3.1			0.1			0.1			0.7			—
Other		(0.1	)		—			—			—			(0.1	)		—
		23.2	%		28.5	%		0.7	%		20.6	%		137.8	%		7.2	%

15

Operating Revenues

Revenues increased 23.2% in 2011 versus 2010 primarily due to the increase in base business, revenues from acquisitions and the favorable effect of currency translation. The increase in acquisition revenue was primarily due to the purchase of a North American automotive aftermarket business in the first quarter of 2011. Worldwide automotive base revenues increased 10.0%. International automotive base revenues increased 10.2% primarily due to growth in European auto builds of 5% and increased product penetration. Additionally, Asian automotive base revenues increased 20.8% primarily due to improved product penetration and higher auto builds in China and India of 2% and 10%, respectively. North American automotive base revenues increased 9.8% in 2011 versus 2010 primarily due to an increase in auto builds of 10%. The truck remanufacturing and related parts and service business increased 19.7% over the prior year due to increased demand in North America and Canada related to oil and gas exploration. Automotive aftermarket base business increased 4.5% over the prior year with growth in both transportation materials and consumer-based businesses.

Revenues increased 20.6% in 2010 versus 2009 primarily due to the increase in base revenues and revenues from acquisitions. The increase in acquisition revenue was primarily due to the purchase of a North American automotive aftermarket business in the second quarter of 2010. Worldwide automotive base revenues increased 28.4%. North American automotive base revenues increased 37.8% in 2010 versus 2009 primarily due to an increase in auto builds of approximately 39%. International automotive base revenues increased 21.2% primarily due to an increase in European auto builds of approximately 16% and increased product penetration. The automotive aftermarket businesses, which were less impacted in 2009 by the economic downturn, were virtually flat over the prior year. Base revenues for the truck remanufacturing and related parts and service business declined 5.3% over the prior year.

Operating Income

Operating income increased 28.5% in 2011 versus 2010 primarily due to the increase in base revenues, income from acquisitions and the favorable effect of currency translation. Base margins increased 110 basis points primarily due to the positive leverage effect of the increase in base revenues described above, partially offset by the negative impact of selling price versus material cost comparisons. In addition, acquisitions diluted total operating margins by 30 basis points.

Operating income increased 137.8% in 2010 versus 2009 primarily due to the increase in base revenues, lower restructuring expenses, 2009 goodwill and intangible asset impairment charges, and income from acquisitions. Base margins increased 540 basis points primarily due to the positive leverage effect of the increase in base revenues described above, benefits from restructuring projects and favorable inventory obsolescence expense comparisons. During the third quarter of 2009, a $12.0 million goodwill impairment charge was recorded in the truck remanufacturing and related parts and service business.

POWER SYSTEMS & ELECTRONICS

Businesses in this segment produce equipment and consumables associated with specialty power conversion, metallurgy and electronics.

In the Power Systems & Electronics segment, products include:

• arc welding equipment;

• metal arc welding consumables and related accessories;

• metal solder materials for PC board fabrication;

• equipment and services for microelectronics assembly;

• electronic components and component packaging;

• static and contamination control equipment;

• airport ground support equipment; and

• pressure sensitive adhesives and components for telecommunications, electronics, medical and transportation applications.

In 2011, this segment primarily served the general industrial (43%), electronics (17%), construction (4%) and automotive original equipment manufacturers (4%) markets.

16

The results of operations for the Power Systems & Electronics segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	2,872,161		$	2,409,204		$	2,004,402
Operating income		580,674			469,244			198,673
Margin %		20.2	%		19.5	%		9.9	%

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		12.5	%		26.2	%		2.4	%		18.5	%		74.8	%		4.7	%
Changes in variable margins and overhead costs		—			(2.8	)		(0.5	)		—			4.6			0.4
		12.5			23.4			1.9			18.5			79.4			5.1
Acquisitions and divestitures		4.3			(1.1	)		(1.0	)		1.1			0.8			(0.1	)
Restructuring costs		—			(0.7	)		(0.1	)		—			10.3			0.9
Impairment of goodwill and intangibles		—			—			—			—			44.7			3.7
Translation		2.4			2.2			(0.1	)		0.6			1.0			—
Other		—			—			—			—			—			—
		19.2	%		23.8	%		0.7	%		20.2	%		136.2	%		9.6	%

Operating Revenues

Revenues increased 19.2% in 2011 versus 2010 due to growth in base business, revenues from acquisitions and the favorable effect of currency translation. Worldwide welding base business revenues increased 21.0% in 2011 versus 2010. North American welding base business revenues increased 24.6% due to improvements in a number of industrial-based end markets. In particular, increased sales in the oil and gas end market as well as sales to heavy equipment OEM’s and other manufacturers helped drive base revenues. Base business revenues for the international welding businesses increased 12.3% in 2011 versus 2010 primarily due to growth in European and Asian oil and gas and infrastructure-related end markets. Base revenues for the electronics businesses increased 1.7% mainly due to base growth of 6.3% in the PC board fabrication businesses, though end markets significantly slowed for these businesses in the fourth quarter of 2011. The other electronics businesses were virtually flat due to weakening end markets and softer consumer demand. Acquisition revenue was primarily due to the purchase of a thermal processing and environmental equipment manufacturer in the third quarter of 2011 and an automated welding systems business in the fourth quarter of 2010.

Revenues increased 20.2% in 2010 versus 2009 primarily due to growth in base business. Worldwide welding base revenues increased 11.0%. North American welding base business revenues increased 16.0% as end markets began to experience recovery, particularly for heavy equipment OEM’s and general manufacturers. Base business revenues for the international welding businesses increased 0.6% in 2010 versus 2009 primarily due to increased oil and gas end market activity, partially offset by declines in Asian shipyard activity. Base revenues for the electronics businesses increased 34.3% due to growth in the PC board fabrication businesses of 71.0% and other electronics businesses of 20.2% as demand for consumer electronics and capital equipment increased significantly.

Operating Income

Operating income increased 23.8% in 2011 versus 2010 primarily due to the favorable leverage effect of the growth in base revenues and the favorable impact of currency translation. Base margins increased 190 basis points primarily due to the favorable leverage effect of the growth in base revenues, partially offset by the negative impact of selling price versus material cost comparisons. Acquisitions diluted total operating margins by 100 basis points versus the prior year.

Operating income increased 136.2% in 2010 versus 2009 mainly due to the favorable leverage effect of the growth in base revenues, 2009 impairment charges and lower restructuring expenses. During the first quarter of 2009, a $60.0 million goodwill impairment charge was recorded against the pressure sensitive adhesives business and $24.7 million of goodwill and intangible asset impairment charges were recorded against the PC Board fabrication and welding accessories businesses. Base margins increased 510 basis points in 2010 versus 2009 primarily due to the favorable leverage effect of the growth in base revenues, the cumulative benefits of restructuring projects and favorable product mix, partially offset by unfavorable selling price versus material cost comparisons.

17

INDUSTRIAL PACKAGING

Businesses in this segment produce steel, plastic and paper products and equipment used for bundling, shipping and protecting goods in transit.

In the Industrial Packaging segment, products include:

• steel and plastic strapping and related tools and equipment;

• plastic stretch film and related equipment;

• paper and plastic products that protect goods in transit; and

• metal jacketing and other insulation products.

In 2011, this segment primarily served the general industrial (26%), primary metals (21%), food and beverage (13%) and construction (8%) markets.

The results of operations for the Industrial Packaging segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	2,612,108		$	2,272,059		$	1,940,887
Operating income		273,342			231,303			95,128
Margin %		10.5	%		10.2	%		4.9	%

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		8.4	%		31.6	%		2.2	%		13.9	%		110.0	%		4.1	%
Changes in variable margins and overhead costs		—			(18.8	)		(1.8	)		—			(5.3	)		(0.2	)
		8.4			12.8			0.4			13.9			104.7			3.9
Acquisitions and divestitures		3.0			2.9			—			2.3			3.3			(0.1	)
Restructuring costs		—			(2.1	)		(0.2	)		—			31.3			1.3
Impairment of goodwill and intangibles		—			—			—			—			(0.8	)		—
Translation		3.6			4.6			0.1			0.9			4.6			0.1
Other		—			—			—			—			0.1			0.1
		15.0	%		18.2	%		0.3	%		17.1	%		143.2	%		5.3	%

Operating Revenues

Revenues increased 15.0% in 2011 versus 2010 due to the increase in base revenues, the favorable effect of currency translation and revenues from acquisitions. Base revenues for the North American strapping and equipment businesses increased 12.2% in 2011 largely due to higher steel and plastic strapping prices and increased equipment sales. Base revenues for international strapping and equipment businesses grew 7.2% primarily due to higher strapping prices and higher equipment sales. Base revenues for stretch packaging worldwide increased 10.2% in 2011 versus 2010 and worldwide protective packaging grew 7.1% over the prior period. The increase in acquisition revenue is primarily due to the purchase of a protective packaging business in the second quarter of 2011.

Revenues increased 17.1% in 2010 versus 2009 due to the increase in base revenues, revenues from acquisitions and the favorable effect of currency translation. Base revenues increased 23.1% for the North American strapping and equipment businesses in 2010 largely due to an increase in steel and plastic strap volume driven by improved industrial production demand in key industries including primary metals and general industrial. Base revenues for the international strapping and equipment businesses increased 10.1% while worldwide protective packaging increased 16.6% and worldwide stretch packaging increased 12.3% over the prior period. Acquisition revenue increased primarily due to the purchase of a North American protective packaging business in the fourth quarter of 2009.

18

Operating Income

Operating income increased 18.2% in 2011 versus 2010 primarily due to the increase in base revenues, the favorable impact of currency translation and income from acquisitions, partially offset by higher restructuring expenses. Base operating margins increased 40 basis points primarily due to leverage from the increase in base revenues, partially offset by unfavorable selling price versus material cost comparisons.

Operating income increased 143.2% in 2010 versus 2009 primarily due to the increase in base revenues and lower restructuring expenses. Base operating margins increased 390 basis points primarily driven by leverage from the increase in base revenues and restructuring benefits, partially offset by unfavorable selling price versus material cost comparisons. Lower restructuring expenses compared to 2009 increased total operating margins by 130 basis points.

FOOD EQUIPMENT

Businesses in this segment produce commercial food equipment and related service.

In the Food Equipment segment, products and services 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.

In 2011, this segment primarily served the food institutional/restaurant (43%), service (36%) and food retail (16%) markets.

The results of operations for the Food Equipment segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	1,982,187		$	1,857,051		$	1,862,950
Operating income		303,771			255,060			255,891
Margin %		15.3	%		13.7	%		13.7	%

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		2.8	%		8.9	%		0.8	%		—			0.1	%		0.1	%
Changes in variable margins and overhead costs		—			10.6			1.4			—			(4.7	)		(0.7	)
		2.8			19.5			2.2			—			(4.6	)		(0.6	)
Acquisitions and divestitures		1.2			(0.4	)		(0.2	)		0.7			0.2			(0.1	)
Restructuring costs		—			(3.0	)		(0.4	)		—			4.4			0.6
Impairment of goodwill and intangibles		—			—			—			—			—			—
Translation		2.7			3.0			—			(1.1	)		(0.4	)		0.1
Other		—			—			—			0.1			0.1			—
		6.7	%		19.1	%		1.6	%		(0.3	)%		(0.3	)%		—

19

Operating Revenues

Revenues increased 6.7% in 2011 versus 2010 due to the growth in base business, the favorable effect of currency translation and revenues from acquisitions. North American food equipment base revenues increased 3.9% in 2011 versus 2010 as equipment revenues increased 4.6% and service revenues grew 2.7%. Equipment revenues increased primarily due to better, but still modest growth in the casual dining restaurant category, partially offset by weakness in institutional categories where government budgets were constrained. International base revenues increased 1.7% for the period as equipment revenues increased 1.0% and service revenues increased 3.3%. Growth in Asian and Latin American revenues was partially offset by lower European sales in 2011 versus 2010. The acquired revenues were attributable to the acquisition of a European food equipment business in the third quarter of 2010.

Revenues decreased 0.3% in 2010 versus 2009 as the unfavorable effect of currency translation was partially offset by acquisition revenues. North American base revenues declined 1.4% in 2010 versus 2009 primarily due to declines in equipment sales for end markets including the lodging and casino markets. North American base revenues in the service portion of the business increased 1.5% as customers continued to maintain existing equipment. International base revenues increased 2.4% for the period largely due to increased Asian and Latin American revenue offset by lower European equipment sales in 2010 versus 2009. The acquired revenues were attributable to the acquisition of a European food equipment business in the third quarter of 2010.

Operating Income

Operating income increased 19.1% in 2011 versus 2010 primarily due to the increase in base revenues and lower operating expenses. Base business margins increased 220 basis points primarily due to the positive leverage effect of the increase in base revenues, lower operating expenses and adjustments related to a European business in 2010. Higher restructuring expenses in 2011 versus 2010 decreased total operating margins by 40 basis points.

Operating income decreased 0.3% in 2010 versus 2009. Base business margins decreased 60 basis points primarily due to higher overhead expenses and adjustments related to a European business in 2010, partially offset by favorable selling price versus material cost comparisons and benefits from restructuring. Lower restructuring expenses in 2010 versus 2009 increased total operating margins by 60 basis points.

CONSTRUCTION PRODUCTS

Businesses in this segment produce tools, fasteners and other products for construction applications.

In the Construction Products segment, products 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.

In 2011, this segment primarily served the residential construction (44%), renovation construction (26%), and commercial construction (22%) markets.

The results of operations for the Construction Products segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	1,958,370		$	1,753,485		$	1,547,365
Operating income		225,448			192,070			104,795
Margin %		11.5	%		11.0	%		6.8	%

20

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		2.7	%		10.7	%		0.9	%		4.1	%		24.4	%		1.3	%
Changes in variable margins and overhead costs		—			(7.4	)		(0.8	)		—			50.8			3.3
		2.7			3.3			0.1			4.1			75.2			4.6
Acquisitions and divestitures		3.0			0.1			(0.3	)		5.4			(0.5	)		(0.6	)
Restructuring costs		—			4.4			0.5			—			(4.1	)		(0.3	)
Impairment of goodwill and intangibles		—			—			—			—			—			—
Translation		6.0			9.5			0.3			3.8			12.6			0.4
Other		—			0.1			(0.1	)		—			0.1			0.1
		11.7	%		17.4	%		0.5	%		13.3	%		83.3	%		4.2	%

Operating Revenues

Revenues increased 11.7% in 2011 versus 2010 primarily due to the favorable effect of currency translation, revenues from acquisitions and an increase in base revenues. European base revenues increased 6.9% due to improved conditions in commercial construction in the first half of the year; however, the rate of growth moderated in the second half of the year compared to early 2011. North American base revenues increased 2.3% primarily due to price increases implemented to offset higher steel prices, partially offset by the one-time licensing agreement settlement in the commercial construction business that positively impacted revenues in 2010. In North America, renovation base revenue growth was 5.5%, residential base revenue growth was 2.7% and commercial construction base revenue declined 3.0%. North American base revenue was impacted by 1% growth in remodeling expenditures, 3% annualized growth in U.S. housing starts as well as a 2% decline in commercial construction square footage activity. Base revenues for the Asia-Pacific region declined 1.8% as market conditions in the Australian residential construction market progressively softened throughout the year. Acquisition revenue was primarily the result of the purchase of a European retail distribution business in the second quarter of 2010 and a North American fastener business in the second quarter of 2011.

Revenues increased 13.3% in 2010 versus 2009 primarily due to revenues from acquisitions, an increase in base revenues and the favorable effect of currency translation. European base revenues increased 7.5% in 2010 primarily due to improved market conditions. Base revenues for the Asia-Pacific region increased 2.4% as market conditions in the Australian residential construction market improved. North American base revenues increased 1.8% primarily due to modest inventory restocking and a one-time licensing agreement settlement in the second quarter of 2010 in the commercial construction business. The North American base business was negatively impacted by an 8% decline in U.S. housing starts on an annualized basis and an 18% decline in commercial construction square footage activity. Acquisition revenue was primarily the result of the purchase of a European retail distribution business in the second quarter of 2010.

Operating Income

Operating income increased 17.4% in 2011 versus 2010 primarily due to positive leverage from the increase in base revenues described above, the favorable effect of currency translation, and lower restructuring expenses. Base margins increased 10 basis points versus the prior year primarily due to the favorable leverage effect of the increase in base revenues, partially offset by a one-time licensing agreement settlement in the commercial construction business that favorably affected margins in 2010 and the negative impact of selling price versus material cost comparisons.

Operating income increased 83.3% in 2010 versus 2009 primarily due to positive leverage from the increase in base revenues described above, lower operating expenses and the favorable effect of currency translation, partially offset by higher restructuring expenses. Base margins increased 460 basis points versus the prior year primarily due to the favorable leverage effect of the increase in base revenues, favorable selling price versus material cost comparisons, favorable inventory obsolescence expense comparisons, benefits from restructuring projects and a favorable one-time licensing agreement settlement in the second quarter of 2010 in the commercial construction business.

21

POLYMERS & FLUIDS

Businesses in this segment produce adhesives, sealants, lubrication and cutting fluids, and hygiene products.

In the Polymers & Fluids segment, products 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; and

• hand wipes and cleaners for industrial applications.

In 2011, this segment primarily served the general industrial (31%), construction (15%), MRO (17%) and automotive aftermarket (7%) markets.

The results of operations for the Polymers & Fluids segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	1,364,004		$	1,106,025		$	980,305
Operating income		208,873			188,696			150,065
Margin %		15.3	%		17.1	%		15.3	%

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point Increase (Decrease)			% Increase (Decrease)						% Point Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		4.5	%		11.6	%		1.2	%		6.0	%		17.3	%		1.6	%
Changes in variable margins and overhead costs		—			(8.4	)		(1.4	)		—			(2.0	)		(0.3	)
		4.5			3.2			(0.2	)		6.0			15.3			1.3
Acquisitions and divestitures		15.1			8.0			(0.9	)		6.4			3.8			(0.5	)
Restructuring costs		—			(4.2	)		(0.7	)		—			5.4			0.8
Impairment of goodwill and intangibles		—			—			—			—			—			—
Translation		3.8			3.6			—			0.4			1.3			0.1
Other		(0.1	)		0.1			—			—			(0.1	)		0.1
		23.3	%		10.7	%		(1.8	)%		12.8	%		25.7	%		1.8	%

Operating Revenues

Revenues increased 23.3% in 2011 versus 2010 primarily due to revenues from acquisitions, an increase in base revenues and the favorable effect of currency translation. Acquisition revenue was primarily the result of the purchase of a Latin American fluids business and a European polymers business in the fourth quarter of 2010. End market demand was stronger in North America and Asia Pacific but weaker in Europe. Total base revenues for the polymers businesses increased 4.3% while the fluids businesses increased 4.7% in 2011 versus 2010. North American base revenues increased 6.3% and European base revenues were relatively flat, while Asia-Pacific base revenues increased 9.3% primarily due to growth in China.

Revenues increased 12.8% in 2010 versus 2009 primarily due to an increase in base revenues and revenues from acquisitions. Acquisition revenue was primarily the result of the purchase of four Latin American adhesive businesses in 2009 and a Latin American polymers business in the third quarter of 2010. Total base revenues for the polymers businesses and fluids businesses increased 5.2% and 7.9%, respectively, due to recovery in most of the industrial based end markets served by the worldwide polymers and fluids businesses. Growth in the emerging markets of Brazil and China was particularly strong during 2010.

22

Operating Income

Operating income increased 10.7% in 2011 versus 2010 primarily due to the increase in base revenues, income from acquisitions, and the favorable effect of currency translation, partially offset by higher operating costs and restructuring expenses. Base margins declined 20 basis points versus last year primarily due to the negative impact of selling price versus material cost comparisons and a loss on an international polymers contract, partially offset by the positive leverage effect of the increase in base revenues.

Operating income increased 25.7% in 2010 versus 2009 primarily due to the increase in base revenues described above, lower restructuring expenses and higher income from acquisitions. Base margins increased 130 basis points versus the prior year, primarily due to the positive leverage effect of the increase in base revenues. Lower restructuring expenses in 2010 versus 2009 increased total operating margins by 80 basis points.

DECORATIVE SURFACES

Businesses in this segment produce decorative surfacing materials for furniture, office and retail space, countertops and other applications.

In the Decorative Surfaces segment, products include:

• decorative high-pressure laminate for furniture, office and retail space, and countertops; and

• high-pressure laminate worktops.

In 2011, this segment primarily served the commercial construction (55%), renovation construction (30%) and residential construction (14%) markets.

The results of operations for the Decorative Surfaces segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	1,083,157		$	987,692		$	971,900
Operating income		132,394			117,333			113,227
Margin %		12.2	%		11.9	%		11.7	%

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		7.2	%		24.7	%		1.9	%		2.4	%		8.7	%		0.7	%
Changes in variable margins and overhead costs		—			(18.3	)		(2.0	)		—			(8.8	)		(1.0	)
		7.2			6.4			(0.1	)		2.4			(0.1	)		(0.3	)
Acquisitions and divestitures		—			—			—			—			—			—
Restructuring costs		—			4.6			0.5			—			3.2			0.4
Impairment of goodwill and intangibles		—			—			—			—			—			—
Translation		2.4			1.9			(0.1	)		(0.8	)		0.6			0.2
Other		0.1			(0.1	)		—			—			(0.1	)		(0.1	)
		9.7	%		12.8	%		0.3	%		1.6	%		3.6	%		0.2	%

23

Operating Revenues

Revenues increased 9.7% in 2011 versus 2010 primarily due to the increase in base revenues and the favorable effect of currency translation. Base revenues for the North American high-pressure laminate business increased 6.4% primarily due to new product introductions and improved product demand in the office furniture market. International base revenues increased 8.1% primarily due to growth in China and certain European end markets.

Revenues increased 1.6% in 2010 versus 2009 due to the increase in base revenues, partially offset by the unfavorable effect of currency translation. Base revenues increased 3.2% for the North American laminate business primarily due to improvement in the commercial construction sector, including office equipment. International base revenues increased 1.4% primarily due to improvements in Asian end markets, partially offset by modest declines in European end markets.

Operating Income

Operating income increased 12.8% in 2011 versus 2010 primarily due to the increase in base revenues described above, lower restructuring expenses and the favorable effect of currency translation, partially offset by higher operating costs. Base margins decreased 10 basis points versus the prior year primarily due to unfavorable selling price versus material cost comparisons and higher overhead costs, partially offset by the positive leverage of the increase in base revenues.

Operating income increased 3.6% in 2010 versus 2009 primarily due to the increase in base revenues and lower restructuring expenses, partially offset by higher operating costs. Base margins decreased 30 basis points versus the prior year primarily due to unfavorable selling price versus material cost comparisons, partially offset by the benefits of restructuring projects and the positive leverage of the increase in base revenues.

ALL OTHER

This segment includes all other operating segments.

In the All Other segment, products include:

• equipment and related software for testing and measuring of materials and structures;

• plastic reclosable packaging for consumer food storage;

• plastic consumables that multi-pack cans and bottles and related equipment;

• plastic fasteners and components for appliances, furniture and industrial uses;

• metal fasteners and components for appliances and industrial applications;

• foil, film and related equipment used to decorate consumer products;

• product coding and marking equipment and related consumables; and

• line integration, conveyor systems and line automation for the food and beverage industries.

In 2011, this segment primarily served the general industrial (22%), food and beverage (21%), consumer durables (15%), food retail/service (6%) and automotive original equipment manufacturers (4%) markets.

The results of operations for the All Other segment for 2011, 2010 and 2009 were as follows:

Dollars In Thousands	2011			2010			2009
Operating revenues	$	2,889,699		$	2,598,475		$	2,238,604
Operating income		531,914			430,857			309,811
Margin %		18.4	%		16.6	%		13.8	%

24

In 2011 and 2010, the changes in revenues, operating income and operating margins over the prior year were primarily due to the following factors:

	2011 Compared to 2010									2010 Compared to 2009
	% Increase (Decrease)						% Point  Increase (Decrease)			% Increase (Decrease)						% Point  Increase (Decrease)
	Operating Revenues			Operating Income			Operating Margins			Operating Revenues			Operating Income			Operating Margins
Base business:
Revenue change/Operating leverage		7.0	%		18.9	%		1.8	%		9.7	%		31.9	%		2.8	%
Changes in variable margins and overhead costs		—			1.3			0.2			—			(4.0	)		(0.5	)
		7.0			20.2			2.0			9.7			27.9			2.3
Acquisitions and divestitures		2.3			0.9			(0.3	)		7.0			2.8			(0.7	)
Restructuring costs		—			0.1			—			—			8.3			1.1
Impairment of goodwill and intangibles		—			0.2			—			—			0.3			—
Translation		1.9			2.0			—			(0.6	)		(0.3	)		0.1
Other		—			0.1			0.1			—			0.1			—
		11.2	%		23.5	%		1.8	%		16.1	%		39.1	%		2.8	%

Operating Revenues

Revenues increased 11.2% in 2011 versus 2010 due to an increase in base business revenues, revenues from acquisitions and the favorable effect of currency translation. Acquisition revenue was primarily due to the purchase of a test and measurement business in the fourth quarter of 2010, a heat transfer business in the second quarter of 2011, and a plastics and security business in the second quarter of 2010. Base business revenues for the test and measurement businesses increased 15.7% due to increased equipment orders both internationally and in North America. Growing worldwide product regulatory standards contributed to growth in these businesses. Base revenues for the consumer packaging business increased 4.8% in 2011 versus 2010 due to growth in the beverage packaging solutions, decorating equipment and marking and labels businesses. Base revenues for the industrial fasteners and appliance businesses declined 0.7% due to prolonged construction-associated weakness in the appliance end market, partially offset by increased demand in the industrial fasteners end market.

Revenues increased 16.1% in 2010 versus 2009 primarily due to an increase in base business revenues and revenues from acquisitions. The acquisition revenue was primarily due to the purchase of a consumer packaging business in the fourth quarter of 2009. Base business revenues increased 9.5% for the test and measurement businesses due to increased demand for capital equipment, particularly in the Asia-Pacific region. Base revenues increased 8.2% in 2010 versus 2009 for the consumer packaging business due to improvement in decorating end markets. Base revenues for the industrial fasteners and appliance businesses improved 15.2% due to increased demand for domestic appliances.

Operating Income

Operating income increased 23.5% in 2011 versus 2010 primarily due to the growth in base revenues. Base margins increased 200 basis points primarily due to the positive leverage effect from the increase in base revenues and benefits from past restructuring projects. In addition, acquisitions and divestitures diluted total operating margins by 30 basis points in 2011.

Operating income increased 39.1% in 2010 versus 2009 primarily due to the growth in base revenues and lower restructuring expenses. Base margins increased 230 basis points primarily due to the positive leverage effect from the increase in base revenues and benefits from past restructuring projects, partially offset by unfavorable selling price versus material cost comparisons. In addition, lower restructuring expenses increased total operating margins by 110 basis points. Acquisitions and divestitures diluted total operating margins by 70 basis points in 2010.

AMORTIZATION OF INTANGIBLE ASSETS

Amortization expense increased to $255.3 million in 2011 and $207.4 million in 2010, versus $197.5 million in 2009, due to intangible asset amortization for newly acquired businesses.

25

IMPAIRMENT OF GOODWILL AND OTHER INTANGIBLE ASSETS

In 2011, the Company performed its annual goodwill and indefinite lived intangible asset impairment assessment which resulted in no goodwill or other intangible asset impairment charges. Total goodwill and other intangible asset impairment charges by segment for the years ended December 31, 2010 and 2009 were as follows:

In Thousands	2010		2009
Transportation	$	—	$	12,347
Power Systems & Electronics		—		85,043
Industrial Packaging		—		386
Food Equipment		—		53
Polymers & Fluids		—		4,122
All Other		1,006		3,617
	$	1,006	$	105,568

The 2009 charges were primarily due to goodwill impairment charges related to the pressure sensitive adhesives reporting unit of $60.0 million, the PC board fabrication reporting unit of $18.0 million and the truck remanufacturing and related parts and service reporting unit of $12.0 million. See the Goodwill and Intangible Assets note in Item 8. Financial Statements and Supplementary Data for further details of the impairment charges.

INTEREST EXPENSE

Interest expense increased to $192.1 million in 2011 which includes interest expense on the 3.375% and 4.875% notes issued in late August 2011, versus $175.2 million in 2010. Interest expense increased to $175.2 million in 2010 versus $164.6 million in 2009 primarily due to interest on the 6.25% and 5.15% notes which were issued in March 2009, partially offset by lower interest related to the 5.75% notes, which were repaid at maturity in March 2009, and lower commercial paper borrowings. The weighted-average interest rate on commercial paper was 0.1% in 2011, 0.2% in 2010 and 0.3% in 2009.

OTHER INCOME (EXPENSE)

Other income (expense) was income of $53.8 million in 2011 versus $10.0 million in 2010. This increase was primarily due to higher interest income of $40.3 million (versus $24.1 million in 2010), lower losses on foreign currency transactions of $4.3 million (versus $16.7 million in 2010) and gains on disposal of operating affiliates of $1.8 million (versus losses of $8.0 million in 2010).

Other income (expense) was income of $10.0 million in 2010 versus expense of $4.5 million in 2009. This increase was primarily due to higher income from investments of $20.8 million (versus $4.9 million in 2009).

INCOME TAXES

The effective tax rate was 22.2% in 2011, 30.5% in 2010, and 20.2% in 2009. The effective tax rate for 2011 was favorably impacted by the discrete non-cash tax benefit of $165.9 million in the first quarter of 2011 related to the decision in the Company’s favor by the Federal Court of Australia, Victoria with respect to a significant portion of the income tax deductions that had been challenged by the Australian Tax Office. The effective tax rate for 2010 was unfavorably impacted by the discrete tax charge of $21.9 million in the first quarter of 2010 related to the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act. The effective tax rate for 2009 was favorably impacted by discrete tax adjustments in the fourth quarter of $85.5 million related to a global legal structure reorganization and $77.5 million related to a favorable settlement reached with the German tax authorities. In the above mentioned reorganization, the Company reorganized its ownership structure in certain U.S. and foreign subsidiaries in the fourth quarter of 2009 and made an election regarding the U.S. tax treatment of a foreign subsidiary. The Company recorded a reduction in tax expense primarily for the effect of the resulting foreign tax credits. Also during the fourth quarter of 2009, the Company finalized a settlement with the German tax authorities primarily regarding the treatment of an intercompany financing transaction which resulted in the reversal of previously established tax reserves as a reduction of tax expense.

See the Income Taxes note in Item 8. Financial Statements and Supplementary Data for further details on these discrete tax adjustments and a reconciliation of the U.S. Federal statutory rate to the effective tax rate.

INCOME FROM CONTINUING OPERATIONS

Income from continuing operations in 2011 of $2.0 billion ($4.08 per diluted share) was 38.9% higher than 2010 income of $1.5 billion ($2.89 per diluted share). Income from continuing operations in 2010 was 49.9% higher than 2009 income of $968.6 million ($1.93 per diluted share).

26

FOREIGN CURRENCY

The weakening of the U.S. Dollar against foreign currencies in 2011 versus 2010 increased operating revenues by approximately $460 million in 2011 and increased income from continuing operations by approximately 10 cents per diluted share. The weakening of the U.S. Dollar against foreign currencies in 2010 versus 2009 increased operating revenues by approximately $70 million in 2010 and increased income from continuing operations by approximately 4 cents per diluted share.

DISCONTINUED OPERATIONS

Income from discontinued operations was $54.4 million in 2011 versus $50.5 million in 2010 primarily due to improved operating results in the held for sale finishing businesses partially offset by an after-tax loss on the sale of a discontinued operation in 2011 versus an after-tax gain in 2010. Income from discontinued operations was $50.5 million in 2010 versus $4.1 million in 2009 due to improved operating results in the held for sale finishing businesses and an after-tax gain on the sale of a discontinued operation in 2010 versus after-tax losses in 2009. See the Discontinued Operations note in Item 8. Financial Statements and Supplementary Data for discussion of the Company’s discontinued operations.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s primary sources of liquidity are free operating cash flows and short-term credit facilities. Management continues to believe that internally generated cash flows will be adequate to service debt, to continue to pay dividends, to finance internal growth and to fund small to medium-sized acquisitions.

The primary uses of liquidity are:

• dividend payments – the Company’s dividend payout guidelines are 30% to 45% of the average of the last two years’ free operating cash flow;

• acquisitions; and

• any excess liquidity may be used for share repurchases.

Cash Flow

The Company uses free operating cash flow to measure cash flow generated by operations that is available for dividends, acquisitions, share repurchases and debt repayment. The Company believes this measure is useful to investors in evaluating our financial performance and measures our ability to generate cash internally to fund Company initiatives. Free operating cash flow is a measurement that is not the same as net cash flow from operating activities per the statement of cash flows and may not be consistent with similarly titled measures used by other companies.

Summarized cash flow information for the three years ended December 31, 2011, 2010 and 2009 was as follows:

In Thousands	2011			2010			2009
Net cash provided by operating activities	$	1,956,008		$	1,488,313		$	2,167,552
Additions to plant and equipment		(353,408	)		(287,759	)		(255,739	)
Free operating cash flow	$	1,602,600		$	1,200,554		$	1,911,813
Cash dividends paid	$	(680,280	)	$	(636,200	)	$	(619,681	)
Acquisitions		(1,308,164	)		(497,435	)		(281,404	)
Repurchases of common stock		(950,000	)		(350,000	)		—
Net proceeds (repayments) of debt		1,147,533			(190,085	)		(742,427	)
Other		243,740			236,433			128,927
Effect of exchange rate changes on cash and equivalents		(63,921	)		76,934			87,951
Net increase (decrease) in cash and equivalents	$	(8,492	)	$	(159,799	)	$	485,179

27

On August 20, 2007, the Company’s Board of Directors authorized a stock repurchase program which provides for the buyback of up to $3.0 billion of the Company’s common stock over an open-ended period of time (the “2007 Program”). Under the 2007 Program, the Company made repurchases of approximately 16.3 million shares of its common stock at an average price of $53.51 and approximately 8.1 million shares of its common stock at an average price of $43.29 during the years ended December 31, 2011 and 2010, respectively. As of December 31, 2011, there were no authorized repurchases remaining under the 2007 Program.

On May 6, 2011, the Company’s Board of Directors authorized a new stock repurchase program which provides for the buyback of up to an additional $4.0 billion of the Company’s common stock over an open-ended period of time (the “2011 Program”). Through December 31, 2011, the Company made repurchases of approximately 1.8 million shares of its common stock at an average price of $43.20. As of December 31, 2011, there was approximately $3.9 billion of authorized repurchases remaining under the 2011 Program.

Return on Average Invested Capital

The Company uses return on average invested capital (“ROIC”) to measure the effectiveness of its operations’ use of invested capital to generate profits. The Company believes that ROIC is a meaningful metric to investors in evaluating the Company’s financial performance and may be different than the method used by other companies to calculate ROIC. Invested capital represents the net assets of the Company, excluding cash and cash equivalents and outstanding debt, which are excluded as they do not represent capital investment in the Company’s operations. Average invested capital is calculated using balances at the start of the period and at the end of each quarter. ROIC for the years ended December 31, 2011, 2010, and 2009 was as follows:

Dollars In Thousands	2011			2010			2009
Operating income	$	2,731,008		$	2,254,017		$	1,382,963
Taxes (22.2%, 30.5% and 20.2%, respectively)		(606,284	)		(687,475	)		(279,359	)
Operating income after taxes	$	2,124,724		$	1,566,542		$	1,103,604
Invested Capital:
Trade receivables	$	2,818,892		$	2,581,592		$	2,349,056
Inventories		1,715,859			1,634,856			1,343,002
Net plant and equipment		2,025,396			2,066,156			2,097,326
Investments		408,906			440,760			451,069
Goodwill and intangible assets		7,430,979			6,702,834			6,491,902
Accounts payable and accrued expenses		(2,132,379	)		(2,140,885	)		(1,969,928	)
Net assets held for sale		279,476			—			—
Other, net		299,321			(31,358	)		(334,124	)
Total invested capital	$	12,846,450		$	11,253,955		$	10,428,303
Average invested capital	$	12,619,928		$	10,735,032		$	10,400,945
Return on average invested capital		16.8	%		14.6	%		10.6	%

The 220 basis point increase in ROIC in 2011 versus 2010 was the result of after-tax operating income increasing 35.6%, primarily due to an increase in base business and a favorable tax rate, partially offset by an increase in average invested capital.

The 400 basis point increase in ROIC in 2010 versus 2009 was the result of after-tax operating income increasing 41.9%, primarily due to an increase in base business, partially offset by a less favorable tax rate and a slight increase in average invested capital.

28

Working Capital

Net working capital at December 31, 2011 and 2010 is summarized as follows:

Dollars In Thousands	2011		2010		Increase (Decrease)
Current Assets:
Cash and equivalents	$	1,177,875	$	1,186,367	$	(8,492	)
Trade receivables		2,818,892		2,581,592		237,300
Inventories		1,715,859		1,634,856		81,003
Other		750,396		567,673		182,723
Assets held for sale		386,324		—		386,324
		6,849,346		5,970,488		878,858
Current Liabilities:
Short-term debt		502,063		326,236		175,827
Accounts payable and accrued expenses		2,132,379		2,140,885		(8,506	)
Other		235,437		555,731		(320,294	)
Liabilities held for sale		106,848		—		106,848
		2,976,727		3,022,852		(46,125	)
Net Working Capital	$	3,872,619	$	2,947,636	$	924,983
Current Ratio		2.30		1.98

Cash and equivalents totaled approximately $1.2 billion as of December 31, 2011 and December 31, 2010, primarily all of which was held by international subsidiaries and may be subject to U.S. income taxes and foreign withholding taxes if repatriated to the United States. Cash balances held internationally are typically used for international operating needs, reinvested to fund expansion of existing international businesses, or used to fund new international acquisitions. In the U.S., the Company utilizes cash flows from domestic operations to fund domestic cash needs which primarily consist of dividend payments, acquisitions, share repurchases, servicing of domestic debt obligations and general corporate needs. The Company also uses short-term credit facilities of $2.5 billion for short-term liquidity needs. The Company believes cash generated domestically will continue to be sufficient to fund cash requirements in the U.S.

Debt

Total debt at December 31, 2011 and 2010 was as follows:

Dollars In Thousands	2011			2010			Increase (Decrease)
Short-term debt	$	502,063		$	326,236		$	175,827
Long-term debt		3,488,198			2,542,087			946,111
Total debt	$	3,990,261		$	2,868,323		$	1,121,938
Total debt to total capitalization		28.5	%		23.1	%

The Company issues commercial paper to fund general corporate needs and to fund small and medium-sized acquisitions. The Company has committed lines of credit of $2.5 billion in the U.S. to support the potential issuances of commercial paper. Of this amount, $1.0 billion is provided under a line of credit agreement with a termination date of June 10, 2016 and $1.0 billion is provided under a line of credit agreement with a termination date of June 11, 2013. The remaining $500.0 million is provided under a revolving credit facility that terminates on June 15, 2012. No amounts are outstanding under these three facilities. The Company’s foreign operations also have unused capacity on uncommitted facilities of approximately $329 million.

The Company had outstanding commercial paper of approximately $192.5 million at December 31, 2011, which is included in short-term debt, and no outstanding commercial paper at December 31, 2010. The maximum outstanding commercial paper balance during 2011 was $1.8 billion while the average daily balance was $744.9 million.

29

In August 2011, the Company issued $350.0 million of 3.375% notes due September 15, 2021 at 99.552% of face value and $650.0 million of 4.875% notes due September 15, 2041 at 98.539% of face value. The effective interest rates of the notes are 3.4% and 4.9%, respectively. These notes are senior unsecured obligations, ranking equal in right of payment with all other senior unsecured indebtedness of the Company. The net proceeds from these issuances were used to repay outstanding commercial paper.

The Company believes that based on its current free operating cash flow, debt-to-capitalization ratios and credit ratings, it could readily obtain additional financing if necessary. The Company’s targeted debt-to-capital ratio is 20% to 30%, excluding the impact of any larger acquisitions.

Total Debt to EBITDA

The Company uses the ratio of total debt to EBITDA to measure its ability to repay its outstanding debt obligations. The Company believes that total debt to EBITDA is a meaningful metric to investors in evaluating the Company’s long term financial liquidity and may be different than the method used by other companies to calculate total debt to EBITDA. The ratio of total debt to EBITDA represents total debt divided by income from continuing operations before interest expense, other income (expense), income taxes, depreciation, and amortization and impairment of goodwill and other intangible assets on a trailing twelve month basis.

Total debt to EBITDA for the years ended December 31, 2011 and 2010 was as follows:

(Dollars in thousands)	2011			2010
Total debt	$	3,990,261		$	2,868,323
Income from continuing operations	$	2,017,014		$	1,452,438
Add:
Interest expense		192,133			175,163
Other income (expense)		(53,839	)		(9,984	)
Income taxes		575,700			636,400
Depreciation		336,495			334,786
Amortization and impairment of goodwill and other intangible assets		255,338			208,433
EBITDA	$	3,322,841		$	2,797,236
Total debt to EBITDA ratio		1.2			1.0

Stockholders’ Equity

The changes to stockholders’ equity during 2011 and 2010 were as follows:

In Thousands	2011			2010
Beginning balance	$	9,571,999		$	8,699,122
Net income		2,071,384			1,502,952
Cash dividends declared		(685,146	)		(649,708	)
Repurchases of common stock		(950,000	)		(350,000	)
Stock option and restricted stock activity		220,554			186,818
Currency translation adjustments		(140,521	)		153,230
Other		(54,206	)		29,585
Ending balance	$	10,034,064		$	9,571,999

30

CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET ARRANGEMENTS

The Company’s significant contractual obligations as of December 31, 2011 were as follows:

In Thousands	2012		2013		2014		2015		2016		2017 and Future Years
Total long-term debt	$	262,343	$	10,077	$	1,776,211	$	2,861	$	675	$	1,698,374
Interest payments on notes		186,011		183,840		153,893		87,482		87,432		961,324
Minimum lease payments		156,760		123,549		92,642		65,566		50,948		87,348
	$	605,114	$	317,466	$	2,022,746	$	155,909	$	139,055	$	2,747,046

As of December 31, 2011, the Company has recorded noncurrent liabilities for unrecognized tax benefits of $187.8 million. The Company is not able to reasonably estimate the timing of payments related to the liabilities for unrecognized tax benefits.

At December 31, 2011, the Company had open stand-by letters of credit of approximately $213.0 million, substantially all of which expire in 2012 and 2013. The Company had no other significant off-balance sheet commitments at December 31, 2011.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company has six accounting policies which it believes are most important to the Company’s financial condition and results of operations, and which require the Company to make estimates about matters that are inherently uncertain. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

These critical accounting policies are as follows:

Realizability of Inventories — Inventories are stated at the lower of cost or market. Generally, the Company’s businesses perform an analysis of the historical sales usage of the individual inventory items on hand and a reserve is recorded to adjust inventory cost to market value based on the following usage criteria:

Usage Classification	Criteria	Reserve %
Active	Quantity on hand is less than prior 6 months’ usage		0	%
Slow-moving	Some usage in last 12 months, but quantity on hand exceeds prior 6 months’ usage		50	%
Obsolete	No usage in the last 12 months		90	%

In addition, for approximately 44% of the U.S. inventories, the Company has elected to use the last-in, first-out (“LIFO”) method of inventory costing. Generally, this method results in a lower inventory value than the first-in, first-out (“FIFO”) method due to the effects of inflation.

Collectibility of Accounts Receivable — The Company estimates the allowance for uncollectible accounts based on the greater of a specific reserve or a reserve calculated based on the historical write-off percentage over the last two years. In addition, the allowance for uncollectible accounts includes reserves for customer credits and cash discounts, which are also estimated based on past experience.

Depreciation of Plant and Equipment — The Company’s U.S. businesses compute depreciation on an accelerated basis, as follows:

Buildings and improvements	150% declining balance
Machinery and equipment	200% declining balance

The majority of the international businesses compute depreciation on a straight-line basis to conform to their local statutory accounting and tax regulations.

31

Income Taxes — The Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. The Company’s deferred and other tax balances are based on management’s interpretation of the tax regulations and rulings in numerous taxing jurisdictions. Income tax expense and liabilities recognized by the Company also reflect its best estimates and assumptions regarding, among other things, the level of future taxable income, the effect of the Company’s various tax planning strategies and uncertain tax positions. Future tax authority rulings and changes in tax laws, changes in projected levels of taxable income and future tax planning strategies could affect the actual effective tax rate and tax balances recorded by the Company.

Goodwill and Intangible Assets – The Company’s business acquisitions typically result in recording goodwill and other intangible assets, which are a significant portion of the Company’s total assets and affect the amount of amortization expense and impairment charges that the Company could incur in future periods. The Company follows the guidance prescribed in the accounting standards to test goodwill and intangible assets for impairment. On an annual basis, or more frequently if triggering events occur, the Company compares the estimated fair value of its 52 reporting units to the carrying value of each reporting unit to determine if a potential goodwill impairment exists. If the fair value of a reporting unit is less than its carrying value, an impairment loss, if any, is recorded for the difference between the implied fair value and the carrying value of the reporting unit’s goodwill. In calculating the fair value of the reporting units or specific intangible assets, management relies on a number of factors, including operating results, business plans, economic projections, anticipated future cash flows, comparable transactions and other market data. There are inherent uncertainties related to these factors and management’s judgment in applying them in the impairment tests of goodwill and other intangible assets.

As of December 31, 2011, the Company had total goodwill and intangible assets of $7.4 billion allocated to its 52 reporting units. Although there can be no assurance that the Company will not incur additional impairment charges related to its goodwill and other intangible assets, the Company generally believes the risk of significant impairment charges is lessened by the number of diversified businesses and end markets represented by its 52 reporting units that have goodwill and other intangible assets. In addition, the individual businesses in many of the reporting units have been acquired over a long period of time, and in many cases have been able to improve their performance, primarily as a result of the application of the Company’s 80/20 business simplification process. The amount of goodwill and other intangible assets allocated to individual reporting units range from approximately $5 million to $830 million, with the average amount equal to $140 million.

Fair value determinations require considerable judgment and are sensitive to changes in the factors described above. Due to the inherent uncertainties associated with these factors and economic conditions in the Company’s global end markets, impairment charges related to one or more reporting units could occur in future periods.

Pension and Other Postretirement Benefits – The Company has various company-sponsored defined benefit retirement plans covering a substantial portion of U.S. employees and many employees outside the United States. Pension and other postretirement expense and obligations are determined based on actuarial valuations. Pension benefit obligations are generally based on each participant’s years of service, future compensation, and age at retirement or termination. Important assumptions in determining pension and postretirement expense and obligations are the discount rate, the expected long-term return on plan assets and healthcare cost trend rates. See the Pension and Other Postretirement Benefits note in Item 8. Financial Statements and Supplementary Data for additional discussion of actuarial assumptions used in determining pension and postretirement health care liabilities and expenses.

The Company determines the discount rate used to measure plan liabilities as of the December 31 measurement date for the U.S. primary pension plan. The discount rate reflects the current rate at which the associated liabilities could theoretically be effectively settled at the end of the year. In estimating this rate, the Company looks at rates of return on high-quality fixed income investments, with similar duration to the liabilities in the plan. A 25 basis point decrease in the discount rate would increase the present value of the U.S. primary pension plan obligation by approximately $32 million.

The expected long-term return on plan assets is based on historical and expected long-term returns for similar investment allocations among asset classes. For the U.S. primary pension plan, the Company’s assumption for the expected return on plan assets was 8.0% for 2011 and will be 8.0% for 2012. A 25 basis point decrease in the expected return on plan assets would increase the annual pension expense by approximately $3 million. See the Pension and Other Postretirement Benefits note in Item 8. Financial Statements and Supplementary Data for information on how this rate is determined.

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ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk

MARKET RISK

Interest Rate Risk

The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s debt.

The following table presents the Company’s debt for which fair value is subject to changing market interest rates:

	6.55% Preferred Debt Securities Due		5.15% Notes Due		5.25% Euro Notes Due		6.25% Notes Due		4.88% Notes Due thru		3.375% Notes Due		4.875% Notes Due
In Thousands	Dec 31, 2011		Apr 1, 2014		Oct 1, 2014		Apr 1, 2019		Dec 31, 2020		Sep 15, 2021		Sep 15, 2041
As of December 31, 2011:
Estimated cash outflow by year of principal maturity
2012	$	250,000	$	—	$	—	$	—	$	10,233	$	—	$	—
2013		—		—		—		—		4,312		—		—
2014		—		800,000		972,000		—		2,664		—		—
2015		—		—		—		—		1,018		—		—
2016		—		—		—		—		131		—		—
2017 and thereafter		—		—		—		700,000		3,596		350,000		650,000
Estimated fair value		250,000		876,800		1,064,218		871,668		24,362		367,574		760,533
Carrying value		250,000		799,693		971,465		699,912		21,954		348,476		640,551
As of December 31, 2010:
Total estimated cash outflow	$	250,000	$	800,000	$	1,002,750	$	700,000	$	21,954	$	—	$	—
Estimated fair value		263,750		882,480		1,098,412		816,200		23,471		—		—
Carrying value		249,949		799,567		1,002,016		699,903		21,954		—		—

Foreign Currency Risk

The Company operates in the United States and 57 other countries. In general, the Company’s products are primarily manufactured and sold within the same country. The initial funding for the foreign manufacturing operations was provided primarily through the permanent investment of equity capital from the U.S. parent company. Therefore, the Company and its subsidiaries do not have significant assets or liabilities denominated in currencies other than their functional currencies. As such, the Company does not have any significant derivatives or other financial instruments that are subject to foreign currency risk at December 31, 2011 or 2010.

In October 2007, the Company issued €750.0 million of 5.25% Euro notes due October 1, 2014. The Company has significant operations with the Euro as their functional currency. The Company believes that the Euro cash flows from these businesses will be adequate to fund the debt obligations under these notes.

33

ITEM 8. Financial Statements and Supplementary Data

MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of Illinois Tool Works Inc. (the “Company” or “ITW”) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). ITW’s internal control system was designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of published financial statements.

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

ITW management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2011. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework. Based on our assessment we believe that, as of December 31, 2011, the Company’s internal control over financial reporting is effective based on those criteria.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2011 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report herein.

/s/ David B. Speer David B. Speer Chairman & Chief Executive Officer February 17, 2012 /s/ Ronald D. Kropp Ronald D. Kropp Senior Vice President & Chief Financial Officer February 17, 2012

34

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Illinois Tool Works Inc.:

We have audited the accompanying statement of financial position of Illinois Tool Works Inc. and Subsidiaries (the “Company”) as of December 31, 2011 and 2010, and the related statements of income, income reinvested in the business, comprehensive income, and cash flows for each of the three years in the period ended December 31, 2011. We also have audited the Company’s internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying management report on internal control over financial reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Illinois Tool Works Inc. and Subsidiaries as of December 31, 2011 and 2010, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

As discussed in the International Reporting Lag note within the Notes to Financial Statements, on January 1, 2011, the Company elected to change its method of accounting to eliminate a one-month lag for reporting its international operations outside of North America, which was retrospectively adjusted in the Company’s 2010 and 2009 consolidated financial statements.

/s/ DELOITTE & TOUCHE LLP

Deloitte & Touche LLP

Chicago, Illinois

February 17, 2012

35

Statement of Income

Illinois Tool Works Inc. and Subsidiaries

	For the Years Ended December 31
In Thousands except for per share amounts	2011			2010			2009
Operating Revenues	$	17,786,583		$	15,415,692		$	13,572,996
Cost of revenues		11,517,885			9,996,668			8,953,380
Selling, administrative, and research and development expenses		3,282,352			2,956,574			2,933,616
Amortization of intangible assets		255,338			207,427			197,469
Impairment of goodwill and other intangible assets		—			1,006			105,568
Operating Income		2,731,008			2,254,017			1,382,963
Interest expense		(192,133	)		(175,163	)		(164,589	)
Other income (expense)		53,839			9,984			(4,454	)
Income from Continuing Operations Before Income Taxes		2,592,714			2,088,838			1,213,920
Income taxes		575,700			636,400			245,282
Income from Continuing Operations		2,017,014			1,452,438			968,638
Income from Discontinued Operations		54,370			50,514			4,059
Net Income	$	2,071,384		$	1,502,952		$	972,697
Income Per Share from Continuing Operations:
Basic	$	4.10		$	2.90		$	1.94
Diluted	$	4.08		$	2.89		$	1.93
Income Per Share from Discontinued Operations:
Basic	$	0.11		$	0.10		$	0.01
Diluted	$	0.11		$	0.10		$	0.01
Net Income Per Share:
Basic	$	4.21		$	3.00		$	1.94
Diluted	$	4.19		$	2.99		$	1.94

The Notes to Financial Statements are an integral part of this statement.

36

Statement of Income Reinvested in the Business

Illinois Tool Works Inc. and Subsidiaries

	For the Years Ended December 31
In Thousands	2011			2010			2009
Beginning Balance	$	10,407,946		$	9,554,702		$	9,196,465
Net income		2,071,384			1,502,952			972,697
Cash dividends declared		(685,146	)		(649,708	)		(620,679	)
Cumulative effect of adopting new accounting principles, net of tax		—			—			6,219
Ending Balance	$	11,794,184		$	10,407,946		$	9,554,702

Statement of Comprehensive Income

Illinois Tool Works Inc. and Subsidiaries

	For the Years Ended December 31
In Thousands	2011			2010		2009
Net Income	$	2,071,384		$	1,502,952	$	972,697
Other Comprehensive Income:
Foreign currency translation adjustments		(140,521	)		153,230		301,112
Pension and other postretirement benefit adjustments, net of tax		(62,411	)		24,966		(62,271	)
Comprehensive Income	$	1,868,452		$	1,681,148	$	1,211,538

The Notes to Financial Statements are an integral part of these statements.

37

Statement of Financial Position

Illinois Tool Works Inc. and Subsidiaries

	December 31
In Thousands except shares	2011			2010
Assets
Current Assets:
Cash and equivalents	$	1,177,875		$	1,186,367
Trade receivables		2,818,892			2,581,592
Inventories		1,715,859			1,634,856
Deferred income taxes		365,905			301,486
Prepaid expenses and other current assets		384,491			266,187
Assets held for sale		386,324			—
Total current assets		6,849,346			5,970,488
Plant and Equipment:
Land		248,250			264,875
Buildings and improvements		1,566,742			1,574,593
Machinery and equipment		3,972,417			3,930,502
Equipment leased to others		187,387			187,284
Construction in progress		112,501			104,440
Gross plant and equipment		6,087,297			6,061,694
Accumulated depreciation		(4,061,901	)		(3,995,538	)
Net plant and equipment		2,025,396			2,066,156
Investments		408,906			440,760
Goodwill		5,197,601			4,971,818
Intangible assets		2,233,378			1,731,016
Deferred income taxes		633,832			615,326
Other assets		635,055			616,747
	$	17,983,514		$	16,412,311
Liabilities and Stockholders’ Equity
Current Liabilities:
Short-term debt	$	502,063		$	326,236
Accounts payable		696,776			749,489
Accrued expenses		1,435,603			1,391,396
Cash dividends payable		174,099			169,233
Income taxes payable		56,517			386,498
Deferred income taxes		4,821			—
Liabilities held for sale		106,848			—
Total current liabilities		2,976,727			3,022,852
Noncurrent Liabilities:
Long-term debt		3,488,198			2,542,087
Deferred income taxes		116,954			194,590
Other liabilities		1,367,571			1,080,783
Total noncurrent liabilities		4,972,723			3,817,460
Stockholders’ Equity:
Common stock:
Issued—542,500,435 shares in 2011 and 538,505,782 shares in 2010		5,425			5,385
Additional paid-in-capital		686,155			460,806
Income reinvested in the business		11,794,184			10,407,946
Common stock held in treasury		(2,692,196	)		(1,740,682	)
Accumulated other comprehensive income		224,223			427,155
Noncontrolling interest		16,273			11,389
Total stockholders’ equity		10,034,064			9,571,999
	$	17,983,514		$	16,412,311

The Notes to Financial Statements are an integral part of this statement.

38

Statement of Cash Flows

Illinois Tool Works Inc. and Subsidiaries

	For the Years Ended December 31
In Thousands	2011			2010			2009
Cash Provided by (Used for) Operating Activities:
Net income	$	2,071,384		$	1,502,952		$	972,697
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation		336,495			334,786			376,226
Amortization and impairment of goodwill and other intangible assets		257,514			214,000			308,615
Change in deferred income taxes		(175,923	)		(142,729	)		(481,803	)
Provision for uncollectible accounts		4,553			4,390			17,543
(Gain) loss on sale of plant and equipment		(2,011	)		(701	)		1,596
Income from investments		(17,486	)		(20,808	)		(4,944	)
(Gain) loss on disposal of operations and affiliates		1,899			(12,627	)		34,315
Stock compensation expense		56,374			56,443			51,858
Other non-cash items, net		(5,766	)		(1,810	)		(1,086	)
Change in assets and liabilities:
(Increase) decrease in—
Trade receivables		(302,952	)		(170,579	)		223,055
Inventories		(50,577	)		(223,597	)		576,932
Prepaid expenses and other assets		(50,238	)		(38,723	)		509
Increase (decrease) in—
Accounts payable		(54,977	)		69,543			(19,636	)
Accrued expenses and other liabilities		51,586			66,533			(246,370	)
Income taxes receivable and payable		(182,416	)		(148,796	)		355,561
Other, net		18,549			36			2,484
Net cash provided by operating activities		1,956,008			1,488,313			2,167,552
Cash Provided by (Used for) Investing Activities:
Acquisition of businesses (excluding cash and equivalents) and additional interest in affiliates		(1,308,164	)		(497,435	)		(281,404	)
Additions to plant and equipment		(353,408	)		(287,759	)		(255,739	)
Purchases of investments		(5,641	)		(16,047	)		(17,586	)
Proceeds from investments		36,516			26,438			20,215
Proceeds from sale of plant and equipment		17,079			18,427			26,736
Proceeds from sale of operations and affiliates		21,918			63,197			17,259
Other, net		12,569			20,787			(23,481	)
Net cash used for investing activities		(1,579,131	)		(672,392	)		(514,000	)
Cash Provided by (Used for) Financing Activities:
Cash dividends paid		(680,280	)		(636,200	)		(619,681	)
Issuance of common stock		153,100			114,844			101,733
Repurchases of common stock		(950,000	)		(350,000	)		—
Net proceeds (repayments) of debt with original maturities of three months or less		166,592			(157,286	)		(1,615,998	)
Proceeds from debt with original maturities of more than three months		989,596			1,437			2,153,440
Repayments of debt with original maturities of more than three months		(8,655	)		(34,236	)		(1,279,869	)
Excess tax benefits from share-based compensation		8,199			8,787			4,051
Net cash used for financing activities		(321,448	)		(1,052,654	)		(1,256,324	)
Effect of Exchange Rate Changes on Cash and Equivalents		(63,921	)		76,934			87,951
Cash and Equivalents:
Increase (decrease) during the year		(8,492	)		(159,799	)		485,179
Beginning of year		1,186,367			1,346,166			860,987
End of year	$	1,177,875		$	1,186,367		$	1,346,166
Cash Paid During the Year for Interest	$	168,331		$	174,974		$	156,144
Cash Paid During the Year for Income Taxes, Net of Refunds	$	978,257		$	960,013		$	355,069
Liabilities Assumed from Acquisitions	$	200,028		$	216,478		$	57,863

The Notes to Financial Statements are an integral part of this statement.

39

Notes to Financial Statements

The Notes to Financial Statements furnish additional information on items in the financial statements. The notes have been arranged in the same order as the related items appear in the statements.

Illinois Tool Works Inc. (the “Company” or “ITW”) is a multinational manufacturer of a diversified range of industrial products and equipment with operations in 58 countries. The Company primarily serves the construction, general industrial, food institutional/restaurant, automotive OEM/tiers, automotive aftermarket, and food and beverage markets.

Significant accounting principles and policies of the Company are in italics. Certain reclassifications of prior years’ data have been made to conform to current year reporting.

The preparation of the Company’s financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes to financial statements. Actual results could differ from those estimates. The significant estimates included in the preparation of the financial statements are related to inventories, trade receivables, plant and equipment, income taxes, goodwill and intangible assets, product liability matters, litigation, product warranties, pensions, other postretirement benefits, environmental matters and stock options.

International Reporting Lag — Prior to 2011, the Company’s international operations outside of North America had a fiscal reporting period that began on December 1 and ended on November 30. Effective January 1, 2011, the Company eliminated the one month lag for the reporting of its international operations outside of North America. As a result, the Company is now reporting both North American and international results on a calendar year basis. The Company determined that the elimination of the one month reporting lag was preferable because the same period-end reporting date improves overall financial reporting as the impact of current events, economic conditions and global trends are consistently reflected in the financial statements of the North American and international business units.

The Company has applied this change in accounting principle retrospectively to all prior financial statement periods presented. The impact of the elimination of the one month reporting lag for international operations outside of North America for the years ended December 31, 2010 and 2009 was as follows:

Increase (Decrease)
In Thousands Except per Share Amounts	2010			2009
Operating revenues	$	(21,796	)	$	91,574
Income from continuing operations		(24,877	)		26,023
Income from continuing operations per diluted share		(0.04	)		0.05
Net income		(24,241	)		25,688
Net income per diluted share		(0.04	)		0.05

The cumulative effect of adopting this change in accounting principle was recorded as an after-tax increase of $7,274,000 to income reinvested in the business as of January 1, 2009.

Consolidation and Translation—The financial statements include the Company and its majority-owned subsidiaries. All significant intercompany transactions are eliminated from the financial statements.

Foreign subsidiaries’ assets and liabilities are translated to U.S. dollars at end-of-period exchange rates. Revenues and expenses are translated at average rates for the period. Translation adjustments are reported as a component of accumulated other comprehensive income in stockholders’ equity.

Discontinued Operations – The Company periodically reviews its operations for businesses which may no longer be aligned with its long-term objectives. In April 2011, the Company entered into a definitive agreement to sell its finishing group of businesses included within the All Other segment to Graco Inc. in a $650,000,000 cash transaction. In December 2011, the Federal Trade Commission (“FTC”) filed a complaint challenging Graco’s acquisition of the finishing business. The Company intends to divest the finishing business in 2012. The finishing business has been classified as held for sale beginning in the second quarter of 2011.

In the second quarter of 2011, the Company’s Board of Directors approved plans to divest a consumer packaging business in the All Other segment and an electronic components business in the Power Systems & Electronics segment. The electronic components business was sold in the fourth quarter of 2011. The Company expects to divest the consumer packaging business in 2012. The consumer packaging business has been classified as held for sale beginning in the second quarter of 2011.

40

Notes to Financial Statements—(Continued)

The Company exited a flooring business in the Decorative Surfaces segment in early 2011 and sold a security printing business in the All Other segment in the third quarter of 2010.

In 2008, the Company’s Board of Directors authorized the divestiture of the Click Commerce industrial software business which was previously reported in the All Other segment. In the second quarter of 2009, the Company completed the sale of the Click Commerce business. Additionally, in 2009, the Company sold an automotive components business which was previously reported in the Transportation segment.

The consolidated statement of income and the notes to financial statements have been restated to present the operating results of the held for sale and previously divested or exited businesses discussed above as discontinued operations for 2011, 2010 and 2009.

Results of the discontinued operations for the years ended December 31, 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Operating revenues	$	470,252		$	432,705		$	420,609
Income before taxes	$	81,602		$	84,912		$	5,080
Income tax expense		(27,232	)		(34,398	)		(1,021	)
Income from discontinued operations	$	54,370		$	50,514		$	4,059

Income before taxes from discontinued operations included a $3,675,000 loss related to the sale of the electronics components business in 2011, a $19,559,000 gain related to the sale of the security printing business in 2010, and losses of $27,665,000 related to the sale of the Click Commerce and automotive components businesses in 2009.

There were no businesses held for sale as of December 31, 2010 and 2009. The assets and liabilities of the held for sale finishing and consumer packaging businesses discussed above were included in assets and liabilities held for sale in the statement of financial position as of December 31, 2011 as follows:

In Thousands	December 31, 2011
Trade receivables	$	71,684
Inventories		55,642
Net plant and equipment		44,635
Goodwill and intangible assets		201,526
Other		12,837
Total assets held for sale	$	386,324
Accounts payable	$	21,672
Accrued expenses		54,723
Other		30,453
Total liabilities held for sale	$	106,848

41

Notes to Financial Statements—(Continued)

Acquisitions—The Company accounts for acquisitions under the acquisition method, in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired companies are included in the Company’s consolidated financial statements from the date of acquisition. Acquisitions, individually and in the aggregate, did not materially affect the Company’s results of operations or financial position for any period presented. Summarized information related to acquisitions is as follows:

In Thousands except number of acquisitions	2011		2010		2009
Number of acquisitions		28		24		20
Net cash paid during the year	$	1,308,164	$	497,435	$	281,404

The premium over tangible net assets recorded for acquisitions based on purchase price allocations during 2011, 2010 and 2009 was as follows:

	2011				2010				2009
In Thousands except for weighted-average lives (years)	Weighted- Average Life		Premium Recorded		Weighted- Average Life		Premium Recorded		Weighted- Average Life		Premium Recorded
Goodwill			$	475,634			$	219,222			$	95,936
Amortizable intangible assets:
Customer lists and relationships		12.2		362,387		11.8		120,845		10.7		48,152
Patents and proprietary technology		9.6		98,117		10.9		31,986		12.3		30,421
Trademarks and brands		17.3		245,295		14.9		70,667		14.0		19,732
Noncompete agreements		5.0		26,818		5.3		4,617		6.2		8,859
Other		1.8		10,307		4.9		12,572		4.4		6,846
Total amortizable intangible assets		13.1		742,924		12.1		240,687		10.9		114,010
Indefinite-lived intangible assets:
Trademarks and brands				5,481				—				12,254
Total premium recorded			$	1,224,039			$	459,909			$	222,200

Of the total goodwill recorded for acquisitions, the Company expects goodwill of $302,146,000 in 2011, $51,304,000 in 2010 and $72,216,000 in 2009 will be tax deductible.

On January 1, 2009, the Company adopted new accounting guidance related to business combinations. The new accounting guidance requires an entity to recognize assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. The new guidance also requires prospectively that (1) acquisition-related costs be expensed as incurred; (2) restructuring costs generally be recognized as a post-acquisition expense; and (3) changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period impact income tax expense. Upon adoption of the new guidance, the Company recorded an after-tax charge to income reinvested in the business of $1,055,000 in 2009.

Operating Revenues are recognized when persuasive evidence of an arrangement exists, product has shipped and the risks and rewards of ownership have transferred or services have been rendered, the price to the customer is fixed or determinable, and collectibility is reasonably assured, which is generally at the time of product shipment. Typical sales arrangements are for standard products and provide for transfer of ownership and risk of loss at the time of shipment. In limited circumstances where significant obligations to the customer are unfulfilled at the time of shipment, typically involving installation and customer acceptance, revenue recognition is deferred until such obligations have been completed. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are estimated at the time of sale based on historical experience and known trends and are recorded as a reduction in reported revenues. No single customer accounted for more than 5% of consolidated revenues in 2011, 2010 or 2009.

In October 2009, new accounting guidance was issued on multiple-deliverable revenue arrangements. The new accounting guidance amends the accounting for multiple-deliverable arrangements to enable the vendor to account for product or services separately rather than as a combined unit. The guidance establishes a hierarchy for determining the selling price of a deliverable, which is based on: (1) vendor-specific objective evidence, (2) third-party evidence or (3) estimates. The Company adopted the new accounting guidance on January 1, 2011, and the adoption did not materially affect the Company’s financial position or results of operations.

Research and Development Expenses are recorded as expense in the year incurred. These costs were $242,979,000 in 2011, $213,339,000 in 2010 and $191,859,000 in 2009.

42

Notes to Financial Statements—(Continued)

Rental Expense was $178,439,000 in 2011, $165,171,000 in 2010 and $170,561,000 in 2009. Future minimum lease payments under non-cancellable leases for the years ending December 31 are as follows:

In Thousands
2012	$	156,760
2013		123,549
2014		92,642
2015		65,566
2016		50,948
2017 and future years		87,348
	$	576,813

Advertising Expenses are recorded as expense in the year incurred. These costs were $87,965,000 in 2011, $72,016,000 in 2010 and $63,290,000 in 2009.

Other Income (Expense) consisted of the following:

In Thousands	2011			2010			2009
Interest income	$	40,276		$	24,065		$	16,649
Investment income		17,486			20,808			4,944
Losses on foreign currency transactions		(4,272	)		(16,664	)		(21,284	)
Other, net		349			(18,225	)		(4,763	)
	$	53,839		$	9,984		$	(4,454	)

Income Taxes—The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes are determined based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities given the provisions of the enacted tax laws. The components of the provision for income taxes were as shown below:

In Thousands	2011			2010			2009
U.S. Federal income taxes:
Current	$	514,798		$	396,880		$	226,615
Deferred		(33,733	)		(45,630	)		(21,213	)
Benefit of net operating loss and foreign tax credits carryforwards		—			—			(85,898	)
		481,065			351,250			119,504
Foreign income taxes:
Current		147,425			266,384			334,227
Deferred		(82,069	)		(19,615	)		(189,995	)
Benefit of net operating loss carryforwards		(4,237	)		(3,134	)		(30,820	)
		61,119			243,635			113,412
State income taxes:
Current		65,122			51,530			38,836
Deferred		(31,357	)		(2,837	)		(22,527	)
Benefit of net operating loss carryforwards		(249	)		(7,178	)		(3,943	)
		33,516			41,515			12,366
	$	575,700		$	636,400		$	245,282

43

Notes to Financial Statements—(Continued)

Income from continuing operations before income taxes for domestic and foreign operations was as follows:

In Thousands	2011		2010		2009
Domestic	$	1,452,268	$	1,216,749	$	473,341
Foreign		1,140,446		872,089		740,579
	$	2,592,714	$	2,088,838	$	1,213,920

The reconciliation between the U.S. Federal statutory tax rate and the effective tax rate was as follows:

	2011			2010			2009
U.S. Federal statutory tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of U.S. Federal tax benefit		1.1			1.2			0.8
Nondeductible goodwill impairment		—			—			2.5
Differences between U.S. Federal statutory and foreign tax rates		(2.7	)		(2.0	)		(3.3	)
Nontaxable foreign interest income		(3.6	)		(3.4	)		(4.6	)
Foreign tax credit related to a global legal structure reorganization		—			—			(7.0	)
German tax audit settlement		—			—			(4.7	)
Australian court decision		(6.4	)		—			—
Tax effect of foreign dividends		0.4			0.5			1.3
Tax relief for U.S. manufacturers		(1.3	)		(1.3	)		(0.7	)
Other, net		(0.3	)		0.5			0.9
Effective tax rate		22.2	%		30.5	%		20.2	%

Deferred U.S. Federal income taxes and foreign withholding taxes have not been provided on the remaining undistributed earnings of certain international subsidiaries of approximately $6,300,000,000 and $5,700,000,000 as of December 31, 2011 and 2010, respectively, as these earnings are considered permanently invested. Upon repatriation of these earnings to the U.S. in the form of dividends or otherwise, the Company may be subject to U.S. income taxes and foreign withholding taxes. The actual U.S. tax cost would depend on income tax laws and circumstances at the time of distribution. Determination of the related tax liability is not practicable because of the complexities associated with the hypothetical calculation.

The components of deferred income tax assets and liabilities at December 31, 2011 and 2010 were as follows:

	2011						2010
In Thousands	Asset			Liability			Asset			Liability
Goodwill and intangible assets	$	355,412		$	(786,815	)	$	386,662		$	(758,136	)
Inventory reserves, capitalized tax cost and LIFO inventory		75,974			(12,999	)		65,592			(11,961	)
Investments		36,017			(56,626	)		33,849			(57,196	)
Plant and equipment		27,665			(106,839	)		37,017			(90,505	)
Accrued expenses and reserves		78,961			—			77,169			—
Employee benefit accruals		350,829			—			335,668			—
Foreign tax credit carryforwards		11,806			—			94,100			—
Net operating loss carryforwards		622,607			—			528,915			—
Capital loss carryforwards		34,499			—			34,564			—
Allowances for uncollectible accounts		19,864			—			17,813			—
Pension liabilities		113,423			—			116,268			—
Deferred intercompany deductions		460,423			—			240,233			—
Other		123,554			(21,206	)		115,794			(32,059	)
Gross deferred income tax assets (liabilities)		2,311,034			(984,485	)		2,083,644			(949,857	)
Valuation allowances		(448,587	)		—			(411,565	)		—
Total deferred income tax assets (liabilities)	$	1,862,447		$	(984,485	)	$	1,672,079		$	(949,857	)

Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The valuation allowances recorded at December 31, 2011 and 2010 relate primarily to certain net operating loss carryforwards and capital loss carryforwards.

44

Notes to Financial Statements—(Continued)

At December 31, 2011, the Company had net operating loss carryforwards available to offset future taxable income in the U.S. and certain foreign jurisdictions, which expire as follows:

In Thousands	Gross Net Operating Loss Carryforwards
2012	$	8,610
2013		8,116
2014		5,932
2015		6,945
2016		8,247
2017		10,813
2018		32,390
2019		76,834
2020		83,794
2021		18,728
2022		14,639
2023		12,518
2024		12,324
2025		11,065
2026		1,622
2027		4,928
2028		3,493
2029		4,490
2030		5,476
Do not expire		1,704,783
	$	2,035,747

The Company has foreign tax credit carryovers of $871,000 as of December 31, 2011 and $94,100,000 as of December 31, 2010 that are available for use by the Company between 2012 and 2020.

The changes in the amount of unrecognized tax benefits during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Beginning balance	$	717,711		$	724,777		$	799,647
Additions based on tax positions related to the current year		43,042			57,491			122,714
Additions for tax positions of prior years		74,178			56,034			122,241
Reductions for tax positions of prior years		(16,305	)		(96,161	)		(17,973	)
Settlements		(376,598	)		—			(383,058	)
Foreign currency translation		(4,850	)		(24,430	)		81,206
Ending balance	$	437,178		$	717,711		$	724,777

Included in the balance at December 31, 2011 are approximately $437,000,000 of tax positions that, if recognized, would impact the Company’s effective tax rate.

The Company has been litigating its dispute with the Australian Tax Office over the tax treatment of an intercompany financing transaction between the U.S. and Australia. The case was heard before the Federal Court of Australia, Victoria, in September 2010. The proceedings resulted from the Company’s appeal of a decision by the Australian Tax Commissioner to disallow income tax deductions for the income tax years 2002 through 2005 and the assessment of withholding taxes for income tax year 2003. The Company also contested the Commissioner’s similar determination for income tax years 2006 and 2007; however, the parties agreed to follow the Court’s decision made on the earlier years. On February 4, 2011, the Federal Court of Australia, Victoria, decided in the Company’s favor with respect to a significant portion of the income tax deductions. The Court issued the final orders on February 18, 2011. Based on this decision, the Company decreased its unrecognized tax benefits related to this matter by approximately $197,000,000 and recorded a favorable discrete non-cash tax benefit to reduce tax expense by $165,927,000 in the first quarter of 2011. The Australian Tax Office has appealed the timing of certain of the deductions, the outcome of which is not expected to be material.

During the first quarter of 2011, the Company resolved an issue with the Internal Revenue Service in the United States related to a deduction for foreign exchange losses on an intercompany loan that resulted in a decrease in unrecognized tax benefits of approximately $179,000,000.

45

Notes to Financial Statements—(Continued)

In March 2010, the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act were signed into law. As a result, future tax deductions for retiree prescription drug coverage will be reduced by the amount of subsidies received starting in 2013. In the first quarter of 2010, the Company recorded a discrete tax charge of $21,881,000 for the impact of the health care reform legislation.

The Company settled several items during 2009 related to its German and U.S. tax audits. The most significant issues related to a financing transaction, leveraged leases and mortgage-backed securities.

The Company files numerous consolidated and separate tax returns in the U.S. Federal jurisdiction and in many state and foreign jurisdictions. The following table summarizes the open tax years for the Company’s major jurisdictions:

Jurisdiction	Open Tax Years
United States – Federal	2004-2011
United Kingdom	2000-2011
Germany	2006-2011
France	2004-2011
Australia	2002-2011

The Company recognizes interest and penalties related to income tax matters in income tax expense. The accrual for interest and penalties, as of December 31, 2011 and 2010 was $1,775,000 and $40,000,000, respectively.

Income Per Share from Continuing Operations is computed by dividing income from continuing operations by the weighted-average number of shares outstanding for the period. Income from continuing operations per diluted share is computed by dividing income from continuing operations 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 income per share from continuing operations was as follows:

In Thousands except per share amounts	2011		2010		2009
Income from continuing operations	$	2,017,014	$	1,452,438	$	968,638
Income per share from continuing operations—Basic:
Weighted-average common shares		491,439		500,772		500,177
Income per share from continuing operations—Basic	$	4.10	$	2.90	$	1.94
Income per share from continuing operations—Diluted:
Weighted-average common shares		491,439		500,772		500,177
Effect of dilutive stock options and restricted stock units		3,207		2,578		1,744
Weighted-average common shares assuming dilution		494,646		503,350		501,921
Income per share from continuing operations—Diluted	$	4.08	$	2.89	$	1.93

Options that were considered antidilutive were not included in the computation of diluted income per share from continuing operations. The antidilutive options outstanding as of December 31, 2011, 2010 and 2009 were 5,005,664, 10,434,146 and 14,581,559, respectively.

Cash and Equivalents included interest-bearing instruments of $551,342,000 at December 31, 2011 and $694,272,000 at December 31, 2010. Interest-bearing instruments have maturities of 90 days or less and are stated at cost, which approximates fair value.

46

Notes to Financial Statements—(Continued)

Trade Receivables were net of allowances for uncollectible accounts. The changes in the allowances for uncollectible accounts during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Beginning balance	$	(70,235	)	$	(76,459	)	$	(78,320	)
Provision charged to expense		(4,553	)		(4,390	)		(17,543	)
Write-offs, net of recoveries		10,159			12,513			24,799
Acquisitions and divestitures		(3,657	)		(2,866	)		(2,327	)
Foreign currency translation		1,641			957			(3,209	)
Transfer to assets held for sale		1,393			—			—
Other		27			10			141
Ending balance	$	(65,225	)	$	(70,235	)	$	(76,459	)

Inventories at December 31, 2011 and 2010 were as follows:

In Thousands	2011		2010
Raw material	$	596,129	$	553,089
Work-in-process		155,896		165,292
Finished goods		963,834		916,475
	$	1,715,859	$	1,634,856

Inventories are stated at the lower of cost or market and include material, labor and factory overhead. The last-in, first-out (“LIFO”) method is used to determine the cost of the inventories of approximately 44% of the U.S. inventories. Inventories priced at LIFO were approximately 22% and 21% of total inventories as of December 31, 2011 and 2010, respectively. The first-in, first-out (“FIFO”) method, which approximates current cost, is used for all other inventories. If the FIFO method was used for all inventories, total inventories would have been approximately $127,725,000 and $122,888,000 higher than reported at December 31, 2011 and 2010, respectively.

Prepaid Expenses and Other Current Assets as of December 31, 2011 and 2010 were as follows:

In Thousands	2011		2010
Income tax refunds receivable	$	111,663	$	10,937
Value-added-tax receivables		65,196		59,954
Vendor advances		39,875		35,618
Insurance		24,082		21,111
Other		143,675		138,567
	$	384,491	$	266,187

Plant and Equipment are stated at cost less accumulated depreciation. Renewals and improvements that increase the useful life of plant and equipment are capitalized. Maintenance and repairs are charged to expense as incurred.

Depreciation was $334,331,000 in 2011, $327,520,000 in 2010 and $367,196,000 in 2009, and was reflected primarily in cost of revenues. Depreciation included in income from discontinued operations was $2,164,000 in 2011, $7,266,000 in 2010 and $9,030,000 in 2009. Depreciation of plant and equipment for financial reporting purposes is computed on an accelerated basis for U.S. businesses and on a straight-line basis for a majority of the international businesses.

The ranges of useful lives used to depreciate plant and equipment are as follows:

Buildings and improvements	5—50 years
Machinery and equipment	3—12 years
Equipment leased to others	Term of lease

47

Notes to Financial Statements—(Continued)

Investments as of December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Leases of equipment	$	275,377	$	281,067
Venture capital limited partnership		42,321		50,112
Properties held for sale		41,846		45,125
Property developments		26,081		25,454
Affordable housing limited partnerships		23,281		39,002
	$	408,906	$	440,760

Leases of Equipment

The components of the investment in leases of equipment at December 31, 2011 and 2010 were as shown below:

In Thousands	2011			2010
Leveraged and direct financing leases:
Gross lease contracts receivable, net of nonrecourse debt service	$	130,284		$	145,687
Estimated residual value of leased assets		247,512			247,512
Unearned income		(109,834	)		(120,863	)
		267,962			272,336
Equipment under operating leases		7,415			8,731
	$	275,377		$	281,067

Deferred tax liabilities related to leases of equipment were $54,262,000 and $56,170,000 at December 31, 2011 and 2010, respectively.

The investment in leases of equipment at December 31, 2011 and 2010 consisted of the following types of equipment:

In Thousands	2011		2010
Telecommunications	$	170,834	$	178,946
Air traffic control		70,210		66,433
Aircraft		34,074		35,391
Manufacturing		259		297
	$	275,377	$	281,067

In 2002, the Company entered into leveraged leasing transactions related to mobile telecommunications equipment with two major European telecommunications companies with a cash investment of $144,676,000. In 2003, the Company entered into a leveraged lease transaction related to air traffic control equipment in Australia with a cash investment of $48,763,000. Under the terms of the telecommunications and air traffic control lease transactions, the lessees have made upfront payments to third-party financial institutions that are acting as payment undertakers. These payment undertakers are obligated to make the required scheduled payments directly to the nonrecourse debt holders and to the lessors, including the Company. In the event of default by the lessees, the Company has the right to recover its net investment from the payment undertakers. In addition, the lessees are required to purchase residual value insurance from a creditworthy third party at a date near the end of the lease term.

Income from leveraged leases was $13,372,000, $10,513,000, and $7,618,000 for the years ended December 31, 2011, 2010 and 2009, respectively. Unearned income related to leveraged leases is recognized as lease income over the life of the lease based on the effective yield of the lease. The Company adjusts recognition of lease income on its leveraged leases when there is a change in the assumptions affecting total income or the timing of cash flows associated with the lease. The residual values of leased assets are estimated at the inception of the lease based on market appraisals and reviewed for impairment at least annually.

48

Notes to Financial Statements—(Continued)

Other Investments

The Company entered into a venture capital limited partnership in 2001 that invests primarily in late-stage venture capital opportunities. The Company has a 25% limited partnership interest and accounts for this investment using the equity method, whereby the Company recognizes its proportionate share of the partnership’s income or loss. The partnership’s financial statements are prepared on a mark-to-market basis.

The Company has entered into several affordable housing limited partnerships primarily to receive tax benefits in the form of tax credits and tax deductions from operating losses. These affordable housing investments are accounted for using the effective yield method, in which the investment is amortized to income tax expense as the tax benefits are received. The tax credits are credited to income tax expense as they are allocated to the Company.

The Company has invested in property developments with a residential construction developer through partnerships in which the Company has a 50% interest. These partnership investments are accounted for using the equity method, whereby the Company recognizes its proportionate share of the partnerships’ income or loss.

Goodwill and Intangible Assets —Goodwill represents the excess cost over fair value of the net assets of purchased businesses. The Company does not amortize goodwill and intangible assets that have indefinite lives. The Company performs an annual impairment assessment of goodwill and intangible assets with indefinite lives based on the estimated fair value of the related reporting unit or intangible asset.

On January 1, 2009, the Company adopted new accounting guidance on fair value measurements for all nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value on a nonrecurring basis. The new accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and provides guidance for measuring fair value and the necessary disclosures.

When performing its annual goodwill impairment assessment, the Company evaluates the goodwill assigned to each of its 52 reporting units for potential impairment by comparing the estimated fair value of the relevant reporting unit to the carrying value. The Company uses various valuation techniques to determine the fair value of its reporting units, including discounting estimated future cash flows based on a detailed cash flow forecast prepared by the relevant reporting unit, market multiples and quoted market prices of relevant public companies. If the fair value of a reporting unit is less than its carrying value, an impairment loss, if any, is recorded for the difference between the implied fair value and the carrying value of the reporting unit’s goodwill.

The Company’s indefinite-lived intangible assets consist of trademarks and brands. The estimated fair values of these intangible assets are determined based on a relief-of-royalty income approach derived from internally forecasted revenues of the related products. If the fair value of the trademark or brand is less than its carrying value, an impairment loss is recorded for the difference between the estimated fair value and carrying value of the intangible asset.

Amortization and impairment of goodwill and other intangible assets for the years ended December 31, 2011, 2010 and 2009 were as follows:

In Thousands	2011		2010		2009
Goodwill:
Impairment	$	—	$	—	$	90,000
Intangible Assets:
Amortization		255,338		207,427		197,469
Impairment		—		1,006		15,568
	$	255,338	$	208,433	$	303,037

Income from discontinued operations included intangible asset amortization of $2,176,000 in 2011, $5,567,000 in 2010 and $5,578,000 in 2009.

In 2011, the Company performed its annual goodwill and indefinite-lived intangible asset impairment assessment which resulted in no goodwill or intangible asset impairment charges.

In 2010, the Company performed its annual goodwill and indefinite-lived intangible asset impairment assessment which resulted in $1,006,000 of intangible asset impairment charges.

49

Notes to Financial Statements—(Continued)

In the third quarter of 2009, the Company changed the date of its annual goodwill impairment assessment from the first quarter to the third quarter. This constituted a change in the method of applying an accounting principle that the Company believes is preferable, as it better aligns the timing of the Company’s goodwill impairment assessment with the Company’s annual business planning and forecasting process. In the third quarter of 2009, the Company performed its goodwill impairment assessment which resulted in a charge of $12,000,000 related to the truck remanufacturing and related parts and service reporting unit in the Transportation segment.

In the first quarter of 2009, the Company performed its annual goodwill impairment assessment which resulted in impairment charges of $60,000,000 related to the pressure sensitive adhesives reporting unit and $18,000,000 related to the PC board fabrication reporting unit, which are both included in the Power Systems & Electronics segment.

Also in 2009, intangible asset impairments of $15,568,000 were recorded related to certain trademarks, brands and patents. Approximately $5,800,000 of this total charge related to the PC board fabrication reporting unit and the remainder to various trademarks, brands and patents of other reporting units.

The impairments during 2009 were primarily related to new reporting units which were acquired over the preceding few years prior to the economic downturn in late 2008 and 2009. These charges were driven primarily by lower forecasts compared to the expected forecasts at the time the reporting units were acquired.

A summary of goodwill and intangible assets that were adjusted to fair value and the related impairment charges included in earnings for 2009 is as follows:

In Thousands	Book Value		Fair Value		Total Impairment Charges
Goodwill	$	449,000	$	359,000	$	90,000
Intangible assets		98,544		82,976		15,568

The changes in the carrying amount of goodwill by segment for the years ended December 31, 2011 and 2010 were as follows:

In Thousands	Transpor- tation			Power Systems & Electronics			Industrial Packaging			Food Equipment			Construction Products			Polymers & Fluids			Decorative Surfaces			All Other			Total
Balance, Dec 31, 2009	$	538,271		$	420,829		$	765,179		$	209,025		$	558,504		$	739,101		$	13,405		$	1,532,799		$	4,777,113
2010 activity:
Acquisitions & divestitures		50,800			4,554			1,242			2,676			10,817			84,097			—			37,122			191,308
Impairment charges		—			—			—			—			—			—			—			—			—
Foreign currency translation		(4,456	)		3,808			2,133			(7,408	)		16,584			(1,020	)		(179	)		(6,065	)		3,397
Intersegment goodwill transfers		(17,945	)		(292	)		936			—			(962	)		22,252			—			(3,989	)		—
Balance, Dec 31, 2010	$	566,670		$	428,899		$	769,490		$	204,293		$	584,943		$	844,430		$	13,226		$	1,559,867		$	4,971,818
2011 activity:
Acquisitions & divestitures		118,286			242,257			25,166			(1,175	)		5,515			49,843			—			24,206			464,098
Impairment charges		—			—			—			—			—			—			—			—			—
Foreign currency translation		(9,514	)		(2,233	)		(11,252	)		(4,579	)		(216	)		(17,265	)		(285	)		(2,504	)		(47,848	)
Transfer of assets held for sale		—			(7,336	)		—			—			—			—			—			(183,131	)		(190,467	)
Intersegment goodwill transfers		1,464			341,857			—			—			—			(156,441	)		—			(186,880	)		—
Balance, Dec 31, 2011	$	676,906		$	1,003,444		$	783,404		$	198,539		$	590,242		$	720,567		$	12,941		$	1,211,558		$	5,197,601
Accumulated goodwill impairment charges, Dec 31, 2011	$	36,276		$	87,696		$	114,079		$	59,797		$	6,574		$	14,821		$	—		$	46,484		$	365,727

50

Notes to Financial Statements—(Continued)

Intangible assets as of December 31, 2011 and 2010 were as follows:

	2011							2010
In Thousands	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Amortizable intangible assets:
Customer lists and relationships	$	1,608,027	$	(522,155	)	$	1,085,872	$	1,252,748	$	(412,482	)	$	840,266
Patents and proprietary technology		561,205		(235,618	)		325,587		467,226		(210,359	)		256,867
Trademarks and brands		699,586		(157,373	)		542,213		467,838		(119,010	)		348,828
Software		201,009		(172,058	)		28,951		199,560		(154,188	)		45,372
Noncompete agreements		181,379		(148,088	)		33,291		158,363		(135,754	)		22,609
Other		116,994		(102,274	)		14,720		110,105		(92,984	)		17,121
Total amortizable intangible assets		3,368,200		(1,337,566	)		2,030,634		2,655,840		(1,124,777	)		1,531,063
Indefinite-lived intangible assets:
Trademarks and brands		202,744		—			202,744		199,953		—			199,953
Total intangible assets	$	3,570,944	$	(1,337,566	)	$	2,233,378	$	2,855,793	$	(1,124,777	)	$	1,731,016

Amortizable intangible assets are being amortized primarily on a straight-line basis over their estimated useful lives of 3 to 20 years.

The estimated amortization expense of intangible assets for the future years ending December 31 is as follows:

In Thousands
2012	$	258,868
2013		237,114
2014		222,619
2015		211,273
2016		200,043

Other Assets as of December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Cash surrender value of life insurance policies	$	370,564	$	362,401
Customer tooling		81,415		76,765
Prepaid pension assets		40,687		16,023
Noncurrent receivables		29,807		38,740
Other		112,582		122,818
	$	635,055	$	616,747

51

Notes to Financial Statements—(Continued)

Pension and Other Postretirement Benefits – The Company has both funded and unfunded defined benefit pension and other postretirement benefit plans, predominately in the U.S. covering a majority of U.S. employees.

The U.S. primary pension plan provides benefits based on years of service and final average salary. The U.S. primary postretirement healthcare plan is contributory with the participants’ contributions adjusted annually. The U.S. primary postretirement life insurance plan is noncontributory.

Beginning January 1, 2007, the U.S. primary pension and other postretirement benefit plans were closed to new participants. Newly hired employees and employees from acquired businesses that are not participating in these plans are eligible for additional Company contributions under the existing U.S. primary defined contribution retirement plans. The Company’s expense related to defined contribution plans was $77,700,000 in 2011, $69,300,000 in 2010 and $66,000,000 in 2009.

In addition to the U.S. plans, the Company also has defined benefit pension plans in certain other countries, mainly the United Kingdom, Switzerland, Germany and Canada.

Summarized information regarding the Company’s significant defined benefit pension and other postretirement benefit plans related to both continuing and discontinued operations is as follows:

	Pension									Other Postretirement Benefits
In Thousands	2011			2010			2009			2011			2010			2009
Components of net periodic benefit cost:
Service cost	$	94,100		$	94,104		$	97,950		$	13,430		$	13,941		$	12,567
Interest cost		116,331			110,484			120,109			29,532			29,995			30,506
Expected return on plan assets		(157,848	)		(149,822	)		(154,254	)		(20,564	)		(18,183	)		(13,612	)
Amortization of actuarial loss		39,359			26,092			8,436			415			40			40
Amortization of prior service cost (income)		777			736			(1,585	)		6,448			6,445			6,423
Amortization of transition amount		16			47			164			—			—			—
Settlement/curtailment loss (income)		—			515			(11,947	)		—			—			—
	$	92,735		$	82,156		$	58,873		$	29,261		$	32,238		$	35,924
Net periodic benefit cost was included in the statement of income as follows:
	Pension									Other Postretirement Benefits
In Thousands	2011			2010			2009			2011			2010			2009
Income from continuing operations	$	89,277		$	79,980		$	56,466		$	28,916		$	31,860		$	35,560
Income from discontinued operations		3,458			2,176			2,407			345			378			364
	$	92,735		$	82,156		$	58,873		$	29,261		$	32,238		$	35,924

52

Notes to Financial Statements—(Continued)

	Pension						Other Postretirement Benefits
In Thousands	2011			2010			2011			2010
Change in benefit obligation:
Benefit obligation at January 1	$	2,300,740		$	2,176,568		$	559,423		$	533,834
Service cost		94,100			94,104			13,430			13,941
Interest cost		116,331			110,484			29,532			29,995
Plan participants’ contributions		8,100			4,642			15,273			15,241
Actuarial loss		78,634			31,830			251			10,824
Acquisitions		15,882			30,845			—			—
Benefits paid		(142,409	)		(137,753	)		(47,946	)		(48,465	)
Medicare subsidy received		—			—			3,136			4,053
Liabilities from (to) other immaterial plans		2,409			6,817			(4,074	)		—
Settlement/curtailment loss		—			515			—			—
Foreign currency translation		(9,169	)		(17,312	)		—			—
Benefit obligation at December 31	$	2,464,618		$	2,300,740		$	569,025		$	559,423

Change in plan assets:
Fair value of plan assets at January 1	$	1,940,552		$	1,750,904		$	293,776		$	259,753
Actual return on plan assets		108,495			187,688			3,357			34,023
Company contributions		130,535			73,720			32,673			33,224
Plan participants’ contributions		8,100			4,642			15,273			15,241
Acquisitions		15,344			26,115			—			—
Benefits paid		(142,409	)		(137,753	)		(47,946	)		(48,465	)
Assets from other immaterial plans		—			44,860			—			—
Foreign currency translation		(6,706	)		(9,624	)		—			—
Fair value of plan assets at December 31	$	2,053,911		$	1,940,552		$	297,133		$	293,776
Funded status	$	(410,707	)	$	(360,188	)	$	(271,892	)	$	(265,647	)
Other immaterial plans		(63,655	)		(62,664	)		(7,458	)		(3,105	)
Net liability at December 31	$	(474,362	)	$	(422,852	)	$	(279,350	)	$	(268,752	)
The amounts recognized in the statement of financial position as of December 31 consist of:
Assets held for sale	$	75		$	—		$	—		$	—
Other assets		40,687			16,023			—			—
Accrued expenses		(21,459	)		(15,378	)		(7,767	)		(9,025	)
Liabilities held for sale		(12,757	)		—			—			—
Other noncurrent liabilities		(480,908	)		(423,497	)		(271,583	)		(259,727	)
Net liability at end of year	$	(474,362	)	$	(422,852	)	$	(279,350	)	$	(268,752	)
The pre-tax amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss (gain)	$	848,368		$	758,901		$	15,406		$	(1,840	)
Prior service cost		3,981			4,758			4,844			11,292
Net transition obligation		52			68			—			—
	$	852,401		$	763,727		$	20,250		$	9,452
Accumulated benefit obligation	$	2,193,199		$	2,084,663
Plans with accumulated benefit obligation in excess of plan assets as of December 31:
Projected benefit obligation	$	1,837,761		$	1,722,577
Accumulated benefit obligation	$	1,665,360		$	1,582,158
Fair value of plan assets	$	1,413,557		$	1,379,466

53

Notes to Financial Statements—(Continued)

Assumptions

The weighted-average assumptions used in the valuations of pension and other postretirement benefits were as follows:

	Pension									Other Postretirement Benefits
	2011			2010			2009			2011			2010			2009
Assumptions used to determine benefit obligations at December 31:
Discount rate		4.64	%		5.05	%		5.57	%		4.95	%		5.45	%		5.80	%
Rate of compensation increases		3.86			3.94			4.18			—			—			—
Assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate		5.05	%		5.57	%		6.59	%		5.45	%		5.80	%		6.50	%
Expected return on plan assets		7.39			7.63			8.28			7.00			7.00			7.00
Rate of compensation increases		3.94			4.18			4.19			—			—			—

The expected long-term rates of return for pension and other postretirement benefit plans were developed using historical asset class returns while factoring in current market conditions such as inflation, interest rates and asset class performance.

Assumed health care cost trend rates have an effect on the amounts reported for the postretirement health care benefit plans. The assumed health care cost trend rates used to determine the postretirement benefit obligation at December 31 were as follows:

	2011			2010			2009
Health care cost trend rate assumed for the next year		8.50	%		8.71	%		8.21	%
Ultimate trend rate		5.00	%		5.00	%		5.00	%
Year the rate reaches the ultimate trend rate		2019			2020			2020

A one-percentage-point change in assumed health care cost trend rates would have the following impact:

In Thousands	1-Percentage-Point Increase		1-Percentage-Point Decrease
Change in service cost and interest cost for 2011	$	964	$	(1,406	)
Change in postretirement benefit obligation at December 31, 2011	$	14,556	$	(17,480	)

Plan Assets

The Company’s overall investment strategy for the assets in the pension funds is to achieve a balance between the goals of growing plan assets and keeping risk at a reasonable level over a long-term investment horizon. In order to reduce unnecessary risk, the pension funds are diversified across several asset classes, securities and investment managers. The target allocations for plan assets are 50% to 65% equity securities, 30% to 45% debt securities, 0% to 2% real estate and 0% to 10% in other types of investments. The Company does not use derivatives for the purpose of speculation, leverage, circumventing investment guidelines or taking risks that are inconsistent with specified guidelines.

The assets in the Company’s postretirement health care plan are primarily invested in life insurance policies. The Company’s overall investment strategy for the assets in the postretirement health care fund is to invest in assets that provide a reasonable tax exempt rate of return while preserving capital.

The following tables present the fair value of the Company’s pension and other postretirement benefit plan assets at December 31, 2011 and 2010, by asset category and valuation methodology. Level 1 assets are valued using unadjusted quoted prices for identical assets in active markets. Level 2 assets are valued using quoted prices or other observable inputs for similar assets. Level 3 assets are valued using unobservable inputs, but reflect the assumptions market participants would be expected to use in pricing the assets. Each financial instrument’s categorization is based on the lowest level of input that is significant to the fair value measurement.

54

Notes to Financial Statements—(Continued)

	2011
In Thousands	Level 1		Level 2		Level 3		Total
Pension Plan Assets:
Cash and equivalents	$	16,466	$	—	$	—	$	16,466
Equity securities:
Domestic		56,202		—		—		56,202
Foreign		68,290		—		—		68,290
Fixed income securities:
Government securities		—		217,840		—		217,840
Corporate debt securities		—		240,032		4,020		244,052
Mortgage-backed securities		—		16,418		—		16,418
Investment contracts with insurance companies		—		—		69,285		69,285
Commingled funds:
Mutual funds		344,891		—		—		344,891
Collective trust funds		—		931,735		—		931,735
Partnerships/private equity interests		—		—		86,869		86,869
Other		—		916		947		1,863
	$	485,849	$	1,406,941	$	161,121	$	2,053,911
Other Postretirement Benefit Plan Assets:
Cash and equivalents	$	33,675	$	—	$	—	$	33,675
Life insurance policies		—		—		263,458		263,458
	$	33,675	$	—	$	263,458	$	297,133

	2010
In Thousands	Level 1		Level 2		Level 3		Total
Pension Plan Assets:
Cash and equivalents	$	49,444	$	—	$	—	$	49,444
Equity securities:
Domestic		125,884		—		—		125,884
Foreign		161,850		—		—		161,850
Fixed income securities:
Government securities		—		193,940		1,025		194,965
Corporate debt securities		—		219,546		2,667		222,213
Mortgage-backed securities		—		9,621		—		9,621
Investment contracts with insurance companies		—		119,976		—		119,976
Commingled funds:
Mutual funds		300,716		—		—		300,716
Collective trust funds		—		678,082		—		678,082
Partnerships/private equity interests		—		—		77,587		77,587
Other		—		204		10		214
	$	637,894	$	1,221,369	$	81,289	$	1,940,552
Other Postretirement Benefit Plan Assets:
Cash and equivalents	$	28,065	$	—	$	—	$	28,065
Life insurance policies		—		—		265,711		265,711
	$	28,065	$	—	$	265,711	$	293,776

55

Notes to Financial Statements—(Continued)

Cash and equivalents include cash on hand and investments with maturities of 90 days or less and are valued at cost, which approximates fair value. Equity securities primarily include common and preferred equity securities covering a wide range of industries and geographies which are traded in active markets and are valued based on quoted prices. Fixed income securities primarily consist of U.S. and foreign government bills, notes and bonds, corporate debt securities, asset-backed securities and investment contracts. The majority of the assets in this category are valued by evaluating bid prices provided by independent financial data services. For securities where market data is not readily available, unobservable market data is used to value the security. Commingled funds include investments in public and private pooled funds. Mutual funds are traded in active markets and are valued based on quoted prices. The underlying investments include small-cap equity, international equity and long- and short-term fixed income instruments. Collective trust funds are private funds that are valued at the net asset value which is determined based on the fair value of the underlying investments. The underlying investments include both passively and actively managed U.S. and foreign large- and mid-cap equity funds and short-term investment funds. Partnerships/private equity interests are investments in partnerships where the benefit plan is a limited partner. The investments are valued by the investment managers on a periodic basis using pricing models that use market, income and cost valuation methods. Life insurance policies are used to fund other postretirement benefits in order to obtain favorable tax treatment and are valued based on the cash surrender value of the underlying policies.

The following table presents a reconciliation of Level 3 assets measured at fair value for pension and other postretirement benefit plans during the years ended December 31, 2011 and 2010:

In Thousands	Government Securities			Corporate Debt Securities			Mortgage- backed Securities			Investment Contracts with Insurance Companies		Partnerships/ Private  Equity Interests			Life Insurance Policies			Other			Total
Balance Dec 31, 2009	$	1,285		$	2,092		$	3,372		$	—	$	68,847		$	233,042		$	2,226		$	310,864
2010 Activity:
Realized gains (losses)		100			(452	)		(947	)		—		3,547			—			(17	)		2,231
Unrealized gains (losses)		(49	)		624			844			—		(538	)		32,669			319			33,869
Purchases and sales		(311	)		(1,137	)		(3,269	)		—		5,731			—			(2,518	)		(1,504	)
Transfers		—			1,540			—			—		—			—			—			1,540
Balance Dec 31, 2010		1,025			2,667			—			—		77,587			265,711			10			347,000
2011 Activity:
Realized gains		—			—			—			—		4,088			—			4			4,092
Unrealized gains (losses)		—			118			—			5,794		4,398			(2,253	)		(221	)		7,836
Purchases and sales		—			2,000			—			2,192		796			—			909			5,897
Transfers		(1,025	)		(765	)		—			61,299		—			—			245			59,754
Balance Dec 31, 2011	$	—		$	4,020		$	—		$	69,285	$	86,869		$	263,458		$	947		$	424,579

Cash Flows

The Company generally funds its pension and other postretirement benefit plans as required by law or to the extent such contributions are tax deductible. The Company expects to contribute approximately $165,000,000 to its pension plans and $39,000,000 to its other postretirement benefit plans in 2012.

The Company’s portion of the benefit payments that are expected to be paid during the years ending December 31 is as follows:

			Other
			Postretirement
In Thousands	Pension		Benefits
2012	$	181,603	$	38,849
2013		169,423		39,278
2014		174,453		39,866
2015		181,405		40,558
2016		187,856		41,338
Years 2017-2021		1,010,684		218,668

56

Notes to Financial Statements—(Continued)

Short-Term Debt as of December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Bank overdrafts	$	37,706	$	57,463
Commercial paper		192,495		—
Current maturities of long-term debt		262,343		252,216
Other borrowings		9,519		16,557
	$	502,063	$	326,236

The Company has committed credit facilities that support the issuance of commercial paper. See the Long-Term Debt note for further discussion.

The weighted-average interest rate on commercial paper was 0.1% at December 31, 2011. Commercial paper is stated at cost, which approximates fair value.

The weighted-average interest rate on other borrowings was 11.2% at December 31, 2011 and 6.9% at December 31, 2010.

As of December 31, 2011, the Company had unused capacity of approximately $329,000,000 under international debt facilities.

Accrued Expenses as of December 31, 2011 and 2010 consisted of accruals for:

In Thousands	2011		2010
Compensation and employee benefits	$	550,955	$	558,340
Deferred revenue and customer deposits		245,465		264,472
Rebates		162,019		137,554
Warranties		55,203		63,665
Current portion of pension and other postretirement benefit obligations		29,226		24,403
Other		392,735		342,962
	$	1,435,603	$	1,391,396

The Company accrues for product warranties based on historical experience. The changes in accrued warranties during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Beginning balance	$	63,665		$	62,366		$	67,490
Charges		(47,256	)		(42,907	)		(44,289	)
Provision charged to expense		37,489			44,652			35,691
Acquisitions and divestitures		3,262			690			1,929
Foreign currency translation		(239	)		(1,136	)		1,545
Transfer to liabilities held for sale		(1,718	)		—			—
Ending balance	$	55,203		$	63,665		$	62,366

57

Notes to Financial Statements—(Continued)

Long-Term Debt at December 31, 2011 and 2010 consisted of the following:

In Thousands	2011			2010
6.55% preferred debt securities due December 31, 2011	$	250,000		$	249,949
5.15% notes due April 1, 2014		799,693			799,567
5.25% Euro notes due October 1, 2014		971,465			1,002,016
6.25% notes due April 1, 2019		699,912			699,903
4.88% notes due thru December 31, 2020		21,954			21,954
3.375% notes due September 15, 2021		348,476			—
4.875% notes due September 15, 2041		640,551			—
Other borrowings		18,490			20,914
		3,750,541			2,794,303
Current maturities		(262,343	)		(252,216	)
	$	3,488,198		$	2,542,087

In 2002, a subsidiary of the Company issued $250,000,000 of 6.55% preferred debt securities at 99.849% of face value. The effective interest rate of the preferred debt securities is 6.7%. These preferred debt securities were due and fully paid on the first business day in 2012.

In 2005, the Company issued $53,735,000 of 4.88% notes at 100% of face value.

In 2007, the Company, through a wholly-owned European subsidiary, issued €750,000,000 of 5.25% Euro notes due October 1, 2014 at 99.874% of face value. The effective interest rate of the notes is 5.3%.

In 2009, the Company issued $800,000,000 of 5.15% redeemable notes due April 1, 2014 at 99.92% of face value and $700,000,000 of 6.25% redeemable notes due April 1, 2019 at 99.98% of face value. The effective interest rates of the notes are 5.2% and 6.3%, respectively.

In 2011, the Company issued $350,000,000 of 3.375% notes due September 15, 2021 at 99.552% of face value and $650,000,000 of 4.875% notes due September 15, 2041 at 98.539% of face value. The effective interest rates of the notes are 3.4% and 4.9%, respectively. These notes are senior unsecured obligations, ranking equal in right of payment with all other senior unsecured indebtedness of the Company.

Other debt outstanding at December 31, 2011, bears interest at rates ranging from 0.3% to 15.6%, with maturities through the year 2029.

Based on market rates for comparable instruments, the approximate fair value and related carrying value of the Company’s long-term debt, including current maturities, as of December 31, 2011 and 2010 were as follows:

	2011				2010
In Thousands	Fair Value		Carrying Value		Fair Value		Carrying Value
6.55% preferred debt securities due December 31, 2011	$	250,000	$	250,000	$	263,750	$	249,949
5.15% notes due April 1, 2014		876,800		799,693		882,480		799,567
5.25% Euro notes due October 1, 2014		1,064,218		971,465		1,098,412		1,002,016
6.25% notes due April 1, 2019		871,668		699,912		816,200		699,903
4.88% notes due thru December 31, 2020		24,362		21,954		23,471		21,954
3.375% notes due September 15, 2021		367,574		348,476		—		—
4.875% notes due September 15, 2041		760,533		640,551		—		—
Other borrowings		18,490		18,490		20,914		20,914
	$	4,233,645	$	3,750,541	$	3,105,227	$	2,794,303

In 2007, the Company entered into a $500,000,000 revolving credit facility with a termination date of June 15, 2012. In 2010, the Company entered into a $1,000,000,000 line of credit agreement with a termination date of June 11, 2013 and a $1,000,000,000 line of credit agreement with a termination date of June 10, 2011, which was replaced in June of 2011 by a $1,000,000,000 line of credit with a termination date of June 10, 2016. The revolving credit facility along with the lines of credit support the issuance of commercial paper. No amounts were outstanding under any of these facilities at December 31, 2011.

58

Notes to Financial Statements—(Continued)

The Company’s debt agreements’ financial covenants limit total debt, including guarantees, to 50% of total capitalization. The Company’s total debt, including guarantees, was 30.2% of total capitalization as defined in our debt agreements as of December 31, 2011, which was in compliance with these covenants.

Scheduled maturities of long-term debt for the future years ending December 31 are as follows:

In Thousands
2013	$	10,077
2014		1,776,211
2015		2,861
2016		675
2017 and future years		1,698,374
	$	3,488,198

At December 31, 2011, the Company had open stand-by letters of credit of approximately $213,000,000, substantially all of which expire in 2012 and 2013.

Other Noncurrent Liabilities at December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Pension benefit obligation	$	480,908	$	423,497
Postretirement benefit obligation		271,583		259,727
Other		615,080		397,559
	$	1,367,571	$	1,080,783

Commitments and Contingencies —The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, including those involving environmental, product liability (including toxic tort) and general liability claims. The Company accrues for such liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, the Company’s estimates of the outcomes of these matters and its experience in contesting, litigating and settling other similar matters. The Company believes resolution of these matters, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position, liquidity or future operations.

Among the toxic tort cases in which the Company is a defendant, the Company as well as its subsidiaries Hobart Brothers Company and Miller Electric Mfg. Co., have been named, along with numerous other defendants, in lawsuits alleging injury from exposure to welding consumables. The plaintiffs in these suits claim unspecified damages for injuries resulting from the plaintiffs’ alleged exposure to asbestos, manganese and/or toxic fumes in connection with the welding process. Based upon the Company’s experience in defending these claims, the Company believes that the resolution of these proceedings will not have a material adverse effect on the Company’s operating results, financial position or cash flows. The Company has not recorded any significant reserves related to these cases.

Preferred Stock, without par value, of which 300,000 shares are authorized, is issuable in series. The Board of Directors is authorized to fix by resolution the designation and characteristics of each series of preferred stock. The Company has no present commitment to issue its preferred stock.

59

Notes to Financial Statements—(Continued)

Common Stock, with a par value of $.01, Additional Paid-In-Capital and Common Stock Held in Treasury transactions during 2011, 2010 and 2009 are shown below.

	Common Stock				Additional Paid-In- Capital			Common Stock Held in Treasury
In Thousands except shares	Shares		Amount		Amount			Shares			Amount
Balance, December 31, 2008		531,789,730	$	5,318	$	105,497			(32,674,759	)	$	(1,390,594	)
During 2009—
Shares issued for stock options		3,204,212		32		101,581			—			—
Shares issued for stock compensation and vesting of restricted stock		17,018		—		120			—			—
Stock compensation expense		—		—		51,858			—			—
Noncontrolling interest		—		—		(2,591	)		—			—
Tax benefits related to stock options		—		—		11,416			—			—
Tax benefits related to defined contribution plans		—		—		3,104			—			—
Balance, December 31, 2009		535,010,960		5,350		270,985			(32,674,759	)		(1,390,594	)
During 2010—
Shares issued for stock options		3,445,891		34		113,592			—			—
Shares issued for stock compensation and vesting of restricted stock		48,931		1		1,217			(1,998	)		(88	)
Stock compensation expense		—		—		56,443			—			—
Noncontrolling interest		—		—		(287	)		—			—
Tax benefits related to stock options		—		—		15,619			—			—
Tax benefits related to defined contribution plans		—		—		3,237			—			—
Repurchases of common stock		—		—		—			(8,084,724	)		(350,000	)
Balance, December 31, 2010		538,505,782		5,385		460,806			(40,761,481	)		(1,740,682	)
During 2011—
Shares issued for stock options		3,932,861		39		151,431			—			—
Shares issued for stock compensation and vesting of restricted stock		61,792		1		1,629			(24,796	)		(1,514	)
Stock compensation expense		—		—		56,374			—			—
Tax benefits related to stock options		—		—		12,594			—			—
Tax benefits related to defined contribution plans		—		—		3,321			—			—
Repurchases of common stock		—		—		—			(18,106,109	)		(950,000	)
Balance, December 31, 2011		542,500,435	$	5,425	$	686,155			(58,892,386	)	$	(2,692,196	)
Authorized, December 31, 2011		700,000,000

On August 20, 2007, the Company’s Board of Directors authorized a stock repurchase program which provides for the buyback of up to $3,000,000,000 of the Company’s common stock over an open-ended period of time (the “2007 Program”). Under the 2007 Program, the Company made repurchases of 8,084,724 shares of its common stock at an average price of $43.29 per share during 2010 and 16,278,856 shares of its common stock at an average price of $53.51 per share during 2011. As of December 31, 2011, there were no authorized repurchases remaining under the 2007 Program.

On May 6, 2011, the Company’s Board of Directors authorized a new stock repurchase program which provides for the buyback of up to an additional $4,000,000,000 of the Company’s common stock over an open-ended period of time (the “2011 Program”). Through December 31, 2011, the Company made repurchases of 1,827,253 shares of its common stock at an average price of $43.20. As of December 31, 2011, there was approximately $3,900,000,000 of authorized repurchases remaining under the 2011 Program.

Cash Dividends declared were $1.40 per share in 2011, $1.30 per share in 2010 and $1.24 per share in 2009. Cash dividends paid were $1.38 per share in 2011, $1.27 per share in 2010 and $1.24 per share in 2009.

60

Notes to Financial Statements—(Continued)

Accumulated Other Comprehensive Income – Comprehensive income is defined as the changes in equity during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by stockholders and distributions to stockholders. The changes in accumulated other comprehensive income during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010		2009
Beginning balance	$	427,155		$	248,959	$	10,118
Foreign currency translation adjustments		(140,521	)		153,230		301,112
Pension and other postretirement benefits actuarial gains (losses) net of tax of $53,568 in 2011, $(2,978) in 2010 and $23,213 in 2009		(93,156	)		3,543		(71,197	)
Amortization of unrecognized pension and other postretirement benefits costs, net of tax of $(16,506) in 2011, $(11,956) in 2010 and $(5,089) in 2009		30,745			21,423		8,357
Pension and other postretirement benefits settlements, curtailments and other, net of tax of $0 in 2011, $0 in 2010 and $(225) in 2009		—			—		569
Ending balance	$	224,223		$	427,155	$	248,959

Foreign currency translation adjustments for the year ended December 31, 2011 is net of a $55,297,000 increase for the resolution of an issue with the Internal Revenue Service in the U.S. related to a deduction for foreign exchange losses on an intercompany loan.

As of December 31, 2011 and 2010, the ending balance of accumulated comprehensive income consisted of cumulative translation adjustment income of $773,367,000 and $913,888,000, respectively, and unrecognized pension and other postretirement benefits costs of $549,144,000 and $486,733,000, respectively. The estimated unrecognized benefit cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2012 is $52,638,000 for pension and $3,337,000 for other postretirement benefits.

Stock-Based Compensation – Stock options and restricted stock units have been issued to officers and other management employees under ITW’s 2011 Long-Term Incentive Plan (the “Plan”). The stock options generally vest over a four-year period and have a maturity of ten years from the issuance date. Restricted stock units generally vest after a three-year period and include units with and without performance criteria. To cover the exercise of vested options and vesting of restricted stock units, the Company generally issues new shares from its authorized but unissued share pool. At December 31, 2011, 51,244,986 shares of ITW common stock were reserved for issuance under the Plan. The Company records compensation expense for the grant date fair value of stock awards over the remaining service periods of those awards.

The following summarizes the Company’s stock-based compensation expense:

In Thousands	2011			2010			2009
Pre-tax compensation expense	$	56,374		$	56,443		$	51,858
Tax benefit		(17,343	)		(17,822	)		(15,565	)
Total stock-based compensation recorded as expense, net of tax	$	39,031		$	38,621		$	36,293

Of the pre-tax compensation expense, $845,000, $783,000 and $729,000 were included in income from discontinued operations for the years ended December 31, 2011, 2010 and 2009, respectively.

The following table summarizes activity related to non-vested restricted stock units during 2011:

	Number of Shares			Weighted-Average Grant-Date Fair Value
Unvested, January 1, 2011		1,721,481		$	34.84
Granted		589,772			51.73
Vested		(34,630	)		34.38
Cancelled		(102,175	)		38.36
Unvested, December 31, 2011		2,174,448			39.27

61

Notes to Financial Statements—(Continued)

The following table summarizes stock option activity under the Plan for the year ended December 31, 2011:

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Under option, January 1, 2011		19,655,417		$	44.08
Granted		2,008,104			55.92
Exercised		(4,055,853	)		39.06
Cancelled or expired		(156,838	)		47.58
Under option, December 31, 2011		17,450,830			46.57		5.81 years	$	42,603,214
Exercisable, December 31, 2011		12,036,884			46.25		4.92 years	$	26,125,945

On February 10, 2012, the Compensation Committee of the Board of Directors approved an annual equity award consisting of stock options, restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”). The RSUs provide for full “cliff” vesting three years from the date of grant. The PRSUs provide for full “cliff” vesting after three years if the Compensation Committee certifies that the performance goals set with respect to the PRSU have been met. Upon vesting, the holder will receive one share of common stock of the Company for each vested RSU or PRSU. Option exercise prices are equal to the common stock fair market value on the date of grant. Stock options were granted on 1,758,420 shares at an exercise price of $55.71 per share. Additionally, 550,308 RSUs and PRSUs were issued at the grant date share price of $55.71. The fair value of RSUs and PRSUs is determined by reducing the closing market price on the date of the grant by the present value of projected dividends over the vesting period. The Company uses a binomial option pricing model to estimate the fair value of the stock options granted. The following summarizes the assumptions used in the models:

	2012			2011			2010
Risk-free interest rate		0.2-2.1	%		0.3-3.8	%		0.4–3.9	%
Weighted-average volatility		25.0	%		25.0	%		25.0	%
Dividend yield		2.61	%		2.80	%		2.78	%
Expected years until exercise		7.6-7.8			7.6-7.9			7.5-7.8

Lattice-based option valuation models, such as the binomial option pricing model, incorporate ranges of assumptions for inputs. The risk-free rate of interest for periods within the contractual life of the option is based on a zero-coupon U.S. government instrument over the contractual term of the equity instrument. Expected volatility is based on implied volatility from traded options on the Company’s stock and historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise timing and employee termination rates within the valuation model. The weighted-average dividend yield is based on historical information. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The ranges presented result from separate groups of employees assumed to exhibit different behavior.

The weighted-average grant-date fair value of options granted during 2012, 2011, 2010 and 2009 was $11.48, $12.34, $9.59 and $10.24 per share, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $63,480,000, $56,191,000 and $38,609,000, respectively. As of December 31, 2011 there was $27,762,000 of total unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized over a weighted-average period of 2.4 years. Exercise of options during the years ended December 31, 2011, 2010, and 2009 resulted in cash receipts of $151,470,000, $113,627,000 and $101,613,000, respectively. The total fair value of vested stock option awards during the years ended December 31, 2011, 2010 and 2009 was $32,955,000, $29,545,000 and $38,999,000, respectively.

As of December 31, 2011 there was $27,402,000 of total unrecognized compensation cost related to unvested restricted stock units. That cost is expected to be recognized over a weighted-average remaining contractual life of 1.7 years. The total fair value of vested restricted stock unit awards during the years ended December 31, 2011 and 2010 was $1,191,000 and $632,000, respectively.

62

Notes to Financial Statements—(Continued)

Segment Information—The Company has 52 operating segments which are aggregated from the Company’s approximately 800 operations in 58 countries. These businesses are internally reported as 52 operating segments to senior management. The Company’s 52 operating segments have been aggregated into the following eight external reportable segments: Transportation; Power Systems & Electronics; Industrial Packaging; Food Equipment; Construction Products; Polymers & Fluids; Decorative Surfaces; and All Other.

Transportation—Transportation-related components, fasteners, fluids and polymers, as well as truck remanufacturing and related parts and service.

Power Systems & Electronics—Equipment and consumables associated with specialty power conversion, metallurgy and electronics.

Industrial Packaging—Steel, plastic and paper products and equipment used for bundling, shipping and protecting goods in transit.

Food Equipment—Commercial food equipment and related service.

Construction Products—Tools, fasteners and other products for construction applications.

Polymers & Fluids—Adhesives, sealants, lubrication and cutting fluids, and hygiene products.

Decorative Surfaces—Decorative surfacing materials for furniture, office and retail space, countertops, and other applications.

All Other—All other operating segments.

63

Notes to Financial Statements—(Continued)

Segment information for 2011, 2010 and 2009 was as follows:

In Thousands	2011			2010			2009
Operating revenues:
Transportation	$	3,108,349		$	2,522,226		$	2,092,249
Power Systems & Electronics		2,872,161			2,409,204			2,004,402
Industrial Packaging		2,612,108			2,272,059			1,940,887
Food Equipment		1,982,187			1,857,051			1,862,950
Construction Products		1,958,370			1,753,485			1,547,365
Polymers & Fluids		1,364,004			1,106,025			980,305
Decorative Surfaces		1,083,157			987,692			971,900
All Other		2,889,699			2,598,475			2,238,604
Intersegment revenues		(83,452	)		(90,525	)		(65,666	)
	$	17,786,583		$	15,415,692		$	13,572,996
Operating income:
Transportation	$	474,592		$	369,454		$	155,373
Power Systems & Electronics		580,674			469,244			198,673
Industrial Packaging		273,342			231,303			95,128
Food Equipment		303,771			255,060			255,891
Construction Products		225,448			192,070			104,795
Polymers & Fluids		208,873			188,696			150,065
Decorative Surfaces		132,394			117,333			113,227
All Other		531,914			430,857			309,811
	$	2,731,008		$	2,254,017		$	1,382,963
Depreciation and amortization and impairment of goodwill and intangible assets:
Transportation	$	125,988		$	97,784		$	114,865
Power Systems & Electronics		87,346			78,523			171,065
Industrial Packaging		72,244			69,513			71,564
Food Equipment		49,655			44,446			42,472
Construction Products		58,084			59,496			75,007
Polymers & Fluids		48,889			38,942			40,174
Decorative Surfaces		21,946			20,353			23,958
All Other		129,857			139,729			145,736
	$	594,009		$	548,786		$	684,841
Plant and equipment additions:
Transportation	$	97,735		$	70,743		$	50,006
Power Systems & Electronics		42,623			25,849			24,776
Industrial Packaging		27,969			34,324			27,151
Food Equipment		35,859			30,847			39,039
Construction Products		37,332			27,823			31,280
Polymers & Fluids		22,053			13,283			9,417
Decorative Surfaces		22,590			23,490			12,671
All Other		67,247			61,400			61,399
	$	353,408		$	287,759		$	255,739
Identifiable assets:
Transportation	$	2,657,457		$	1,946,633
Power Systems & Electronics		2,407,644			1,903,321
Industrial Packaging		1,933,782			1,889,068
Food Equipment		1,022,380			1,030,913
Construction Products		1,504,850			1,488,119
Polymers & Fluids		1,411,665			1,336,996
Decorative Surfaces		399,915			386,398
All Other		2,644,120			2,995,165
Corporate		3,615,377			3,435,698
Assets held for sale		386,324			—
	$	17,983,514		$	16,412,311

64

Notes to Financial Statements—(Continued)

Identifiable assets by segment are those assets that are specifically used in that segment. Corporate assets are principally cash and equivalents, investments and other general corporate assets. For 2010, a reclassification has been made to identifiable assets by segment to correct the allocation of $743,244,000 of deferred income taxes between Corporate and the Company’s segments.

Enterprise-wide information for 2011, 2010 and 2009 was as follows:

In Thousands	2011		2010		2009
Operating Revenues by Geographic Region:
United States	$	7,379,219	$	6,461,993	$	5,708,035
Europe		5,491,704		4,806,027		4,507,939
Asia		1,931,607		1,697,969		1,241,173
Other North America		1,161,179		1,018,034		821,409
Australia/New Zealand		884,660		780,416		699,945
Other		938,214		651,253		594,495
	$	17,786,583	$	15,415,692	$	13,572,996

Operating revenues by geographic region are based on the customers’ location.

The Company has thousands of product lines within its businesses; therefore, providing operating revenues by product line is not practicable.

Total noncurrent assets excluding deferred tax assets and financial instruments were $10,159,000,000 and $9,456,000,000 at December 31, 2011 and 2010, respectively. Of these amounts, approximately 52% and 49% was attributed to U.S. operations for 2011 and 2010, respectively. The remaining amounts were attributed to the Company’s foreign operations, with no single country accounting for a significant portion.

65

QUARTERLY AND COMMON STOCK DATA (Unaudited)

Quarterly Financial Data

The unaudited quarterly financial data included as supplementary data reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented.

	Three Months Ended
	March 31				June 30				September 30				December 31
In Thousands except per share amounts	2011		2010		2011		2010		2011		2010		2011		2010
Operating revenues	$	4,271,845	$	3,632,764	$	4,614,914	$	3,928,056	$	4,580,516	$	3,941,124	$	4,319,308	$	3,913,748
Cost of revenues		2,762,009		2,327,863		2,996,014		2,514,222		2,961,497		2,548,451		2,798,365		2,606,132
Operating income		658,592		525,675		711,050		626,035		714,284		619,725		647,082		482,582
Income from continuing operations		606,237		321,296		483,529		399,792		490,133		403,054		437,115		328,296
Income from discontinued operations		16,903		12,509		14.901		11,664		17,484		18,974		5,082		7,367
Net income		623,140		333,805		498,430		411,456		507,617		422,028		442,197		335,663
Income per share from continuing operations:
Basic		1.22		0.64		0.97		0.79		1.01		0.80		0.90		0.66
Diluted		1.21		0.64		0.96		0.79		1.00		0.80		0.90		0.66
Net income per share:
Basic		1.25		0.66		1.00		0.82		1.04		0.84		0.91		0.68
Diluted		1.24		0.66		0.99		0.81		1.04		0.84		0.91		0.67

In the first quarter of 2011, the Company recorded a favorable discrete non-cash tax benefit of $165.9 million, or $0.33 per share, associated with an Australian tax matter.

ITEM 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Not applicable.

ITEM 9A. Controls and Procedures

Controls and Procedures

The Company’s management, with the participation of the Company’s Chairman & Chief Executive Officer and Senior Vice President & Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of December 31, 2011. Based on such evaluation, the Company’s Chairman & Chief Executive Officer and Senior Vice President & Chief Financial Officer have concluded that, as of December 31, 2011, the Company’s disclosure controls and procedures were effective.

Management Report on Internal Control over Financial Reporting

The Management Report on Internal Control over Financial Reporting and the Report of Independent Registered Public Accounting Firm are found in Item 8. Financial Statements and Supplementary Data.

In connection with the evaluation by management, including the Company’s Chairman & Chief Executive Officer and Senior Vice President & Chief Financial Officer, no changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the quarter ended December 31, 2011 were identified that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

ITEM 9B. Other Information

Not applicable.

66

PART III

ITEM 10. Directors, Executive Officers and Corporate Governance

Information regarding the Directors of the Company is incorporated by reference from the information under the captions “Election of Directors” and “Corporate Governance Policies and Practices” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

Information regarding the Audit Committee and its Financial Experts is incorporated by reference from the information under the captions “Board of Directors and Its Committees” and “Audit Committee Report” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

Information regarding the Executive Officers of the Company can be found in Part I of this Annual Report on Form 10-K under the caption “Executive Officers.”

Information regarding compliance with Section 16(a) of the Exchange Act is incorporated by reference from the information under the caption “Section 16(a) Beneficial Ownership Reporting Compliance” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

Information regarding the Company’s code of ethics that applies to the Company’s Chairman & Chief Executive Officer, Senior Vice President & Chief Financial Officer, and key financial and accounting personnel is incorporated by reference from the information under the caption “Corporate Governance Policies and Practices” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

ITEM 11. Executive Compensation

This information is incorporated by reference from the information under the captions “Executive Compensation,” “Director Compensation,” “Compensation Discussion and Analysis” and “Compensation Committee Report” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

This information is incorporated by reference from the information under the captions “Ownership of ITW Stock” and “Equity Compensation Plan Information” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

ITEM 13. Certain Relationships and Related Transactions, and Director Independence

Information regarding certain relationships and related transactions is incorporated by reference from the information under the captions “Ownership of ITW Stock,” “Certain Relationships and Related Transactions” and “Corporate Governance Policies and Practices” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

Information regarding director independence is incorporated by reference from the information under the captions “Corporate Governance Policies and Practices” and “Categorical Standards for Director Independence” in the Company’s Proxy Statement for the 2012 Annual Meetings of Stockholders.

ITEM 14. Principal Accounting Fees and Services

This information is incorporated by reference from the information under the caption “Ratification of the Appointment of Independent Registered Public Accounting Firm” in the Company’s Proxy Statement for the 2012 Annual Meeting of Stockholders.

67

PART IV

ITEM 15. Exhibits and Financial Statement Schedules

(a)(1) Financial Statements

The following information is included as part of Item 8. Financial Statements and Supplementary Data:

Management Report on Internal Control over Financial Reporting

Report of Independent Registered Public Accounting Firm

Statement of Income

Statement of Income Reinvested in the Business

Statement of Comprehensive Income

Statement of Financial Position

Statement of Cash Flows

Notes to Financial Statements

(2) Financial Statement Schedules

Not applicable.

(3) Exhibits

(i) See the Exhibit Index within this Annual Report on Form 10-K.

(ii) Pursuant to Regulation S-K, Item 601(b)(4)(iii), the Company has not filed with Exhibit 4 any debt instruments for which the total amount of securities authorized thereunder is less than 10% of the total assets of the Company and its subsidiaries on a consolidated basis as of December 31, 2011, with the exception of the agreements related to the 5.15% Notes due 2014, the 6.25% Notes due 2019, the 3.375% Notes due 2021 and the 4.875% Notes due 2041, which are described as Exhibit numbers 4(a) through (f) in the Exhibit Index. The Company agrees to furnish a copy of the agreement related to the debt instruments which have not been filed with Exhibit 4 to the Securities and Exchange Commission upon request.

68

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 17th day of February 2012.

ILLINOIS TOOL WORKS INC.
By:	/s/ DAVID B. SPEER
	David B. Speer
	Chairman & Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities indicated on this 17th day of February 2012.

Signatures	Title
/s/ DAVID B. SPEER	Chairman & Chief Executive Officer
David B. Speer	(Principal Executive Officer)
/s/ RONALD D. KROPP	Senior Vice President & Chief Financial Officer
Ronald D. Kropp	(Principal Financial Officer)
/s/ RANDALL J. SCHEUNEMAN	Vice President & Chief Accounting Officer
Randall J. Scheuneman	(Principal Accounting Officer)
DANIEL J. BRUTTO	Director
SUSAN CROWN	Director
DON H. DAVIS, JR.	Director
ROBERT C. MCCORMACK	Director
ROBERT S. MORRISON	Director
JAMES A. SKINNER	Director
DAVID B. SMITH, JR.	Director
PAMELA B. STROBEL	Director
KEVIN M. WARREN	Director
ANRÉ D. WILLIAMS	Director
	By /s/ DAVID B. SPEER
	(David B. Speer, as Attorney-in-Fact)

Original powers of attorney authorizing David B. Speer to sign the Company’s Annual Report on Form 10-K and amendments thereto on behalf of the above-named directors of the registrant have been filed with the Securities and Exchange Commission as part of this Annual Report on Form 10-K (Exhibit 24).

69

Exhibit Index

Annual Report on Form 10-K

2011

Exhibit Number	Description
3(a)	Restated Certificate of Incorporation of Illinois Tool Works Inc., filed as Exhibit 3(a) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2006 (Commission File No. 1-4797) and incorporated herein by reference.
3(b)	By-laws of Illinois Tool Works Inc., as amended and restated as of February 10, 2012, filed as Exhibit 3 to the Company’s Form 8-K filed on February 13, 2012 (Commission File No. 1-4797) and incorporated herein by reference.
4(a)	Indenture between Illinois Tool Works Inc. and The First National Bank of Chicago, as Trustee, dated as of November 1, 1986, filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-3 filed on January 15, 1999 (Commission File No. 333-70691) and incorporated herein by reference.
4(b)	First Supplemental Indenture between Illinois Tool Works Inc. and Harris Trust and Savings Bank, as Trustee, dated as of May 1, 1990, filed as Exhibit 4.2 to the Company’s Registration Statement on Form S-3 filed on January 15, 1999 (Commission File No. 333-70691) and incorporated herein by reference.
4(c)	Officers’ Certificate dated March 26, 2009 establishing the terms, and setting forth the forms, of the 5.15% Notes due 2014 and the 6.25% Notes due 2019 filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K filed on March 27, 2009 (Commission File No. 1-4797) and incorporated herein by reference.
4(d)	Registration Rights Agreement dated March 26, 2009, by and among the Company and HSBC Securities (USA) Inc. and Banc of America Securities LLC filed as Exhibit 4.4 to the Company’s Current Report on Form 8-K filed on March 27, 2009 (Commission File No. 1-4797) and incorporated herein by reference.
4(e)	Officers’ Certificate dated August 31, 2011, establishing the terms, and setting forth the forms, of the 3.375% Notes due 2021 and the 4.875% Notes due 2041, filed as Exhibit 4.3 to the Company’s Form 8-K filed on September 1, 2011 (Commission File No. 001-04797) and incorporated herein by reference.
4(f)	Registration Rights Agreement dated August 31, 2011, by and among the Company and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, filed as Exhibit 4.4 to the Company’s Form 8-K filed on September 1, 2011 (Commission File No. 001-04797) and incorporated herein by reference.
10(a)*	Illinois Tool Works Inc. 1996 Stock Incentive Plan dated February 16, 1996, as amended on December 12, 1997, October 29, 1999, January 3, 2003, March 18, 2003, January 2, 2004, December 10, 2004 and December 7, 2005, filed as Exhibit 10(a) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 (Commission File No. 1-4797) and incorporated herein by reference.
10(b)*	Illinois Tool Works Inc. 2006 Stock Incentive Plan dated February 10, 2006, as amended on May 5, 2006, filed as Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2006 (Commission File No. 1-4797) and incorporated herein by reference.
10(c)*	Amendment to Illinois Tool Works Inc. 2006 Stock Incentive Plan dated February 8, 2008, filed as Exhibit 10(q) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 (Commission File No. 1-4797) and incorporated herein by reference.
10(d)*	Second Amendment to Illinois Tool Works Inc. 2006 Stock Incentive Plan dated February 13, 2009, filed as Exhibit 10(d) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (Commission File No. 1-4797) and incorporated herein by reference.
10(e)*	Illinois Tool Works Inc. 2011 Long-Term Incentive Plan filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on December 16, 2010 (Commission File No. 1-4797) and incorporated herein by reference.
10(f)*	Form of stock option terms filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on December 16, 2004 and incorporated herein by reference.
10(g)*	Form of stock option terms filed as Exhibit 10(m) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 (Commission File No. 1-4797) and incorporated herein by reference.

70

Exhibit Number	Description
10(h)*	Form of stock option terms filed as Exhibit 10(o) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 (Commission File No. 1-4797) and incorporated herein by reference.
10(i)*	Form of stock option terms filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed on February 5, 2009 (Commission File No. 1-4797) and incorporated herein by reference.
10(j)*	Form of stock option terms filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed on February 9, 2011 (Commission File No. 1-4797) and incorporated herein by reference.
10(k)*	Form of stock option terms filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed on February 7, 2012 (Commission File No. 1-4797) and incorporated herein by reference.
10(l)*	Form of restricted stock unit terms filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on February 5, 2009 (Commission File No. 1-4797) and incorporated herein by reference.
10(m)*	Form of restricted stock unit terms filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on February 9, 2011 (Commission File No. 1-4797) and incorporated herein by reference.
10(n)*	Form of restricted stock unit terms filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on February 7, 2012 (Commission File No. 1-4797) and incorporated herein by reference.
10(o)*	Form of qualifying or performance restricted stock unit terms filed as Exhibit 10(j) to the Company’s Annual Report on Form 10-K filed on February 26, 2010 (Commission File No. 1-4797) and incorporated herein by reference.
10(p)*	Form of performance restricted stock unit terms filed as Exhibit 99.3 to the Company’s Current Report on Form 8-K filed on February 9, 2011 (Commission File No. 1-4797) and incorporated herein by reference.
10(q)*	Form of performance restricted stock unit terms filed as Exhibit 99.3 to the Company’s Current Report on Form 8-K filed on February 7, 2012 (Commission File No. 1-4797) and incorporated herein by reference.
10(r)*	Form of company-wide growth plan grant filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed on March 3, 2010 (Commission File No. 1-4797) and incorporated herein by reference.
10(s)*	Form of company-wide growth plan grant filed as Exhibit 99.4 to the Company’s Current Report on Form 8-K filed on February 9, 2011 (Commission File No. 1-4797) and incorporated herein by reference.
10(t)*	Form of company-wide growth plan grant filed as Exhibit 99.4 to the Company’s Current Report on Form 8-K filed on February 7, 2012 (Commission File No. 1-4797) and incorporated herein by reference.
10(u)*	Illinois Tool Works Inc. Executive Incentive Plan adopted February 16, 1996, filed as Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1996 (Commission File No. 1-4797) and incorporated herein by reference.
10(v)*	Illinois Tool Works Inc. 2011 Executive Incentive Plan filed as Exhibit 99.1 to the Company’s Current Report on Form 8-K filed on December 16, 2010 (Commission File No. 1-4797) and incorporated herein by reference.
10(w)*	Illinois Tool Works Inc. 1982 Executive Contributory Retirement Income Plan adopted December 13, 1982, filed as Exhibit 10(c) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1990 (Commission File No. 1-4797) and incorporated herein by reference.
10(x)*	Illinois Tool Works Inc. 1985 Executive Contributory Retirement Income Plan adopted December 1985, filed as Exhibit 10(d) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 1990 (Commission File No. 1-4797) and incorporated herein by reference.
10(y)*	Amendment to the Illinois Tool Works Inc. 1985 Executive Contributory Retirement Income Plan dated May 1, 1996, filed as Exhibit 10(c) to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1996 (Commission File No. 1-4797) and incorporated herein by reference.

71

Exhibit Number	Description
10(z)*	Illinois Tool Works Inc. Executive Contributory Retirement Income Plan as amended and restated, effective January 1, 2010, filed as exhibit 10 to the Company’s Current Report on Form 8-K filed on November 5, 2009 (Commission File No. 1-4797) and incorporated herein by reference.
10(aa)*	Illinois Tool Works Inc. Nonqualified Pension Plan, effective January 1, 2008, as amended and approved by the Board of Directors on December 22, 2008, filed as Exhibit 10(p) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (Commission File No. 1-4797) and incorporated herein by reference.
10(bb)*	Illinois Tool Works Inc. 2011 Change-in-Control Severance Compensation Policy filed as Exhibit 99.3 to the Company’s Current Report on Form 8-K filed on December 16, 2010 (Commission File No. 1-4797) and incorporated herein by reference.
10(cc)*	Illinois Tool Works Inc. Directors’ Deferred Fee Plan effective May 5, 2006, as amended and approved by the Board of Directors on February 9, 2007, filed as Exhibit 10(h) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 (Commission File No. 1-4797) and incorporated herein by reference.
10(dd)*	Amendment to the Illinois Tool Works Inc. Directors’ Deferred Fee Plan, effective February 8, 2008, filed as Exhibit 10(j) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 (Commission File No. 1-4797) and incorporated herein by reference.
10(ee)*	Illinois Tool Works Inc. Phantom Stock Plan for Non-Officer Directors, as approved by the Board of Directors on December 5, 2008, filed as Exhibit 10(s) to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (Commission File No. 1-4797) and incorporated herein by reference.
10(ff)*	Illinois Tool Works Inc. 2011 Cash Incentive Plan, filed as Exhibit 99.1 to the Company’s Form 8-K filed on May 12, 2011 (Commission File No. 1-4797) and incorporated herein by reference.
21	Subsidiaries and Affiliates of the Company.
23	Consent of Independent Registered Public Accounting Firm.
24	Powers of Attorney.
31	Rule 13a-14(a) Certifications.
32	Section 1350 Certification.
99(a)	Description of the capital stock of Illinois Tool Works Inc. filed as Exhibit 99(a) to the Company’s Annual Report on Form 10-K filed on February 26, 2010 (Commission File No. 1-4797) and incorporated herein by reference.
101**	Interactive Data File.

* Management contract or compensatory plan or arrangement.

** As provided in Rule 406T of Regulation S-T, this information is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, and is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and is otherwise not subject to liability under these sections.

72

EX-21

Exhibit 21

Illinois Tool Works Inc.

Subsidiaries and Affiliates

January 2012

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
145ES (CANADA) Limited	Indirect		100	%	Nova Scotia
A.C.N. 000 370 150 Pty Ltd	Indirect		100	%	Australia
A.C.N. 000 843 872 Pty Limited	Indirect		100	%	Australia
A.C.N. 004 089 847 Pty Ltd	Indirect		100	%	Australia
A.C.N. 004 297 009 Pty Ltd	Indirect		100	%	Australia
A.C.N. 004 502 112 Pty Ltd.	Indirect		100	%	Australia
A.C.N. 004 547 111 Pty Limited	Indirect		100	%	Australia
A.C.N. 007 864 440 Pty Ltd	Indirect		100	%	Australia
A.C.N. 094 567 763 Pty Limited	Indirect		100	%	Australia
AB Sjötofta Tråddrageri	Indirect		100	%	Sweden
AC Codiergeräte GmbH	Indirect		100	%	Germany
Accessories Marketing Holding Corp.	Direct		100	%	Germany
Accessories Marketing, Inc.	Indirect		100	%	California
ACCULUBE Manufacturing GmbH- Schmiermittel und-gerate	Direct		50	%	Germany
Advanced Molding Company, Inc.	Indirect		100	%	Philippines
AEC Technology SRL	Indirect		100	%	Italy
Alfamacchine SRL	Indirect		100	%	Italy
Allen France SAS	Direct		49	%	France
Alpine Automation Limited	Indirect		100	%	United Kingdom
Alpine Holdings, Inc.	Indirect		100	%	Delaware
Alpine Systems Corporation	Indirect		100	%	Ontario
Ameri-CAD, Inc.	Indirect		100	%	Texas
Anaerobicos do Brasil Adesivos Ltda.	Indirect		100	%	Brazil
Anaerobicos Srl	Indirect		100	%	Argentina
Anahol S.A.	Indirect		100	%	Argentina
AOC Hi-Tech Co. Ltd.	Indirect		100	%	South Korea
Appleton Investments II L.L.C.	Indirect		100	%	Delaware
Appleton Investments L.L.C.	Indirect		100	%	Delaware
Applied Australia Pty Ltd	Indirect		100	%	Australia
ApS Strapex Omsnoringsmaskiner	Indirect		100	%	Denmark
Archem Quimica Ltda.	Indirect		100	%	Brazil
Ark-Les Components S.A. de C.V.	Indirect		100	%	Mexico
Auralex du Mont de Magny SCI	Indirect		100	%	France
AV Co 1 Limited	Indirect		100	%	United Kingdom
AV Co 2 Limited	Indirect		100	%	United Kingdom
AV Co 3 Limited	Indirect		100	%	United Kingdom
Avery Berkel France SAS	Indirect		100	%	France
Avery India Limited	Indirect		91	%	India
Avery Malaysia Sdn Bhd	Indirect		100	%	Malaysia
Avery Weigh-Tronix (Suzhou) Co Limited	Indirect		100	%	China
Avery Weigh-Tronix B.V.	Indirect		100	%	Netherlands
Avery Weigh-Tronix Finance Limited	Indirect		100	%	United Kingdom
Avery Weigh-Tronix Holdings Limited	Indirect		100	%	United Kingdom
Avery Weigh-Tronix International Limited	Indirect		100	%	United Kingdom
Avery Weigh-Tronix Limited	Indirect		100	%	United Kingdom
Avery Weigh-Tronix Private Limited	Indirect		100	%	India
Avery Weigh-Tronix Properties Limited	Indirect		100	%	United Kingdom
Avery Weigh-Tronix UK Limited	Indirect		100	%	United Kingdom
Avery Weigh-Tronix, LLC	Indirect		100	%	Delaware
AWT Scales Limited	Indirect		100	%	United Kingdom

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
AXA Power ApS	Indirect		100	%	Denmark
B.C. Immo S.C.I.	Indirect		100	%	France
Bates Cargo-Pak ApS	Indirect		100	%	Denmark
Bayshore Truck Equipment Company	Indirect		100	%	Delaware
Berkel (Ireland) Limited	Indirect		100	%	Ireland
Berrington (UK)	Indirect		100	%	United Kingdom
Betterway Ventures Ltd.	Indirect		100	%	British Virgin Island
Binks	Indirect		100	%	United Kingdom
Bonnet (UK)	Indirect		100	%	United Kingdom
Bonnet Benelux Bvba	Indirect		100	%	Belgium
Brapenta Eletronica Ltda.	Indirect		100	%	Brazil
Buehler GmbH	Indirect		100	%	Germany
Buell Industries, Inc.	Indirect		100	%	Delaware
Burseryds Bruk AB	Indirect		100	%	Sweden
Bycotest AB	Indirect		100	%	Sweden
Calibra Weighing Systems Limited	Indirect		100	%	United Kingdom
Capital Ventures (Australasia) S.à r.l	Indirect		100	%	Luxembourg
Caretex A/S	Indirect		100	%	Denmark
Caretex Asia Ltd.	Indirect		100	%	Thailand
Caretex PTE Ltd.	Indirect		100	%	Singapore
Caretex ROH (Thailand) Ltd.	Indirect		100	%	Thailand
Caretex USA Inc.	Indirect		100	%	Delaware
CCC Heavy Duty Truck Parts Company	Indirect		100	%	Delaware
CCC Parts Company	Indirect		100	%	Delaware
CCC Truck Parts Company	Indirect		100	%	Delaware
CCI Corporation	Direct		100	%	Delaware
CCI Realty Company	Indirect		100	%	Delaware
Ceast Asia Pte Ltd.	Indirect		100	%	Singapore
Celcor Limited	Indirect		100	%	Ontario
Celeste Acquisition Limited	Indirect		100	%	United Kingdom
Celeste Industries Corporation	Indirect		100	%	Connecticut
Celeste Industries Limited	Indirect		100	%	United Kingdom
CER Foils SAS	Indirect		100	%	France
CER SAS	Indirect		100	%	France
CETRAM PTY. LTD.	Indirect		100	%	Australia
CFC Europe (UK) Limited	Direct		100	%	United Kingdom
CFC Europe GmbH	Indirect		100	%	Germany
CFC INTERNATIONAL (Europe) GmbH	Indirect		100	%	Germany
CFC International Corporation	Direct		100	%	Delaware
Cheer Bright Ltd.	Indirect		11	%	British Virgin Islands
Chris Kay (UK) Limited	Indirect		100	%	United Kingdom
Chris Kay Limited	Indirect		100	%	Ireland
Clarén Kemi AS	Indirect		100	%	Norway
Cleanman Cleaning Devices Ltd.	Indirect		100	%	Taiwan
Comistelcom, S.L.	Indirect		100	%	Spain
Compagnie de Matériel et d’Equipements Techniques — COMET SAS.	Direct & Indirect		100	%	France
Compagnie Hobart S.A.S.	Indirect		100	%	France
Constructions Isothermiques Bontami SAS	Indirect		100	%	France
Constructora De Basculas S.A. de C.V.	Indirect		49	%	Mexico
Conversion to Sociedad Limitada (SL)	Indirect		100	%	Spain
Conversion to Srl	Indirect		100	%	Italy
Corporación Coral, S.DE R.L. DE C.V.	Indirect		100	%	Mexico
Crane Carrier (Canada) Limited	Indirect		100	%	Canada
Crane Carrier Company	Indirect		100	%	Delaware
CS (Australasia) Limited	Indirect		100	%	Bermuda
CS (Australia) Pty Limited	Indirect		100	%	Australia

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
CS (Europe) Holdings Ltd.	Indirect		100	%	Bermuda
CS (Far East) Holding Company Ltd.	Indirect		100	%	Bermuda
CS (Finance) Europe S.a.r.l.	Indirect		100	%	Luxembourg
CS (Global) Holdings Ltd.	Indirect		100	%	Bermuda
CS (Investments) Ltd.	Indirect		100	%	Bermuda
CS (Ventures) Ltd.	Indirect		100	%	Bermuda
CS Financing I LLC	Indirect		100	%	Delaware
CS Mexico Holding Company S DE RL DE CV	Indirect		100	%	Mexico
CS Packaging Corporation Ltd.	Indirect		100	%	British Virgin Island
CS PMI Holdings Inc.	Indirect		100	%	Delaware
CSMTS INC.	Indirect		100	%	Delaware
CSTS L.L.C.	Direct		100	%	Delaware
Cullen Building Products Limited	Indirect		100	%	Ireland
Cullen Building Products Limited	Indirect		100	%	Scotland
Cullen Building Products, Inc.	Indirect		100	%	Canada
Cumberland Leasing Co.	Indirect		100	%	Illinois
D.F. International (Dominican Republic) Inc.	Indirect		100	%	Delaware
Dacro B.V.	Indirect		100	%	Netherlands
DaeLim Plastic Industrial Company, Ltd.	Indirect		100	%	South Korea
DBM.S Deutsche Baumärkte Service GmbH & Co. KG	Indirect		100	%	Germany
DBM.S Deutsche Baumärkte Service Verwaltungs GmbH	Indirect		100	%	Germany
D-Clean profi, s.r.o.	Indirect		100	%	Czech Republic
Densit ApS	Indirect		100	%	Denmark
Densit Asia Pacific Sdn Bhd	Indirect		100	%	Malaysia
Despatch Industries (Shanghai) Trading Co., Ltd	Indirect		100	%	China
Despatch Industries GmbH	Indirect		100	%	Germany
Despatch Industries Korea Yuhan Hoesa	Indirect		100	%	Korea-South
Despatch Industries Limited Partnership	Direct & Indirect		100	%	Minnesota
Despatch Industries PTE Ltd.	Indirect		100	%	Singapore
Despatch Industries Taiwan Ltd.	Indirect		100	%	Taiwan
Deutsche Capital Solutions GmbH	Indirect		100	%	Germany
Devcon Limited	Indirect		100	%	Ireland
Devilbiss Company Limited, The	Indirect		100	%	United Kingdom
DeVilbiss Equipamentos para Pinturas Ltda.	Direct & Indirect		100	%	Brazil
DeVilbiss Europa Unterstützungskasse GmbH	Indirect		100	%	Germany
Devilbiss Ransburg de México, S. DE R.L. DE C.V.	Direct & Indirect		100	%	Mexico
DGFC Inc.	Indirect		100	%	Delaware
DHP (Thailand) Limited	Direct & Indirect		100	%	Thailand
DHP Co., Ltd.	Indirect		100	%	South Korea
Diagraph Corporation Sdn. Bhd	Direct		100	%	Malaysia
Diagraph ITW Mexico, S. de R.L. De C.V.	Indirect		100	%	Mexico
Diagraph México, S.A. DE C.V.	Direct & Indirect		100	%	Mexico
Distribuidora de Productos Sebring, S. de R.L. de C.V.	Indirect		100	%	Mexico
Dongguan Ark-Les Electric Components Co., Ltd.	Indirect		100	%	China
Dongguan CK Branding Co., Ltd.	Indirect		100	%	China
Dorbyl U.K. (Holdings) Limited	Indirect		100	%	United Kingdom
Duo-Fast Corporation	Direct		100	%	Illinois
Duo-Fast de Espana S.A.	Indirect		100	%	Spain
Duo-Fast Korea Co. Ltd.	Indirect		49	%	South Korea
E.C.S. d.o.o.	Indirect		100	%	Croatia
ECS Cable Protection Sp. Zoo	Indirect		100	%	Poland
Eddie Connally & Co Limited	Indirect		100	%	Ireland
EDS Belgium N.V.	Indirect		100	%	Belgium
Elastomeric Roofing Systems, Inc.	Direct		100	%	Minnesota
Electric Light Development Ltd.	Indirect		100	%	British Virgin Island
Elga AB	Indirect		100	%	Sweden

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
Elga Skandinavian AS	Indirect		100	%	Norway
Elisphere Sarl	Indirect		50	%	France
ELRO (Holding) AG	Indirect		100	%	Switzerland
ELRO (U.K.) LIMITED	Indirect		100	%	United Kingdom
ELRO France S.a.r.l.	Indirect		100	%	France
ELRO Grosskuchen GmbH	Indirect		100	%	Austria
ELRO Grosskuchen Gmbh	Indirect		100	%	Germany
ELRO Gulf FZE	Indirect		100	%	United Arab Emirates
ELRO-WERKE AG	Indirect		100	%	Switzerland
Eltex-Elektrostatik-Gesellschaft mit beschränkter Haftung	Indirect		100	%	Germany
Emballage Diffusion Service	Indirect		80	%	France
Envases Multipac, S.A. de C.V.	Direct		49	%	Mexico
Envopak Group	Indirect		100	%	United Kingdom
EP Holdings General Partnership	Direct & Indirect		100	%	Australia
Epirez Australia Pty Ltd	Indirect		100	%	Australia
Equipamentos Cientificos Instron Ltda.	Direct & Indirect		100	%	Brazil
Eurofoil Limited	Indirect		100	%	United Kingdom
Euromere Spraycore SAS	Indirect		100	%	France
Eurotec Deutschland GmbH	Indirect		100	%	Germany
Eurotec Srl	Indirect		100	%	Italy
Exportadora Lerma SA	Direct		100	%	Mexico
Facido GmbH	Indirect		100	%	Germany
Falcon Leasing Systems Ltd.	Direct		51	%	Bermuda
Fantapak International Corporation	Direct		100	%	Michigan
Fargesta Participacoes Ltda.	Indirect		100	%	Brazil
Farmadan AS	Indirect		100	%	Norway
Fasver SAS	Indirect		100	%	France
Fasver Technology, Inc.	Indirect		100	%	Delaware
FEG Investments L.L.C.	Indirect		100	%	Delaware
Fellowell Holdings Co. Ltd.	Direct & Indirect		100	%	Thailand
Filtertek B.V.	Direct		100	%	Netherlands
Filtertek De Mexico Holding Inc.	Direct		100	%	Delaware
Filtertek De Mexico, S.A. de C.V.	Indirect		100	%	Mexico
Filtertek Do Brasil Industria E Comercio Ltda.	Direct & Indirect		100	%	Brazil
Filtertek S.A.	Direct & Indirect		100	%	France
Flejes MISA, S. de R.L. de C.V.	Indirect		100	%	Mexico
Flejes Modelo, S. DE R.L. DE C.V.	Indirect		100	%	Mexico
Forkardt Deutschland GmbH	Indirect		100	%	Germany
Forkardt France SAS	Indirect		100	%	France
Forkardt International Limited	Indirect		100	%	United Kingdom
Forkardt Schweiz GmbH	Indirect		100	%	Switzerland
Forte Lubricants Limited	Indirect		100	%	United Kingdom
Forte Noord West Europa B.V.	Indirect		100	%	Netherlands
Foster Canada Inc.	Indirect		100	%	Canada
Foster Refrigerator (U.K.)	Indirect		100	%	United Kingdom
Foster Refrigerator France S.A.S.	Indirect		100	%	France
Gamko B.V.	Indirect		100	%	Netherlands
Gamko Réfrigération Eurl	Indirect		100	%	France
Gamko Refrigeration U.K. Limited	Indirect		100	%	United Kingdom
Gamko Slovakia S.R.O.	Indirect		100	%	Slovakia
Gamko Vyroba S.R.O.	Indirect		100	%	Slovakia
GC Financement SA	Indirect		50	%	France
GK Despatch Industries	Indirect		50	%	Japan
GloboPlastt s.r.o.	Indirect		100	%	Slovakia
GMB Administracao de Imoveis Ltda.	Indirect		100	%	Brazil
GRK Canada Limited	Indirect		100	%	Canada

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
GRK Europe GmbH	Indirect		100	%	Germany
GRK US Limited	Indirect		100	%	Minnesota
Grupo Corassa S.A.S	Indirect		100	%	Colombia
GSE Holdings Inc.	Indirect		100	%	Delaware
GSE IP LLC	Indirect		100	%	Delaware
Gun Hwa Platech (Taicang) Co. Ltd.	Indirect		100	%	China
H.A. Springer marine + industrie service GmbH	Indirect		100	%	Germany
Hartness Aviation, LLC	Direct		100	%	South Carolina
Hartness International Europe, GmbH	Indirect		100	%	Germany
Haubold Paslode GmbH	Indirect		100	%	Switzerland
Haubold-Kihlberg bvba	Indirect		100	%	Belgium
Heavy Duty Parts, Inc.	Indirect		100	%	Delaware
Heger Belgium BVBA	Indirect		100	%	Belgium
Heger GmbH European Diamond Tools	Indirect		100	%	Germany
Heger Holland B.V	Indirect		100	%	Netherlands
High Mind International Offshore Limited	Indirect		100	%	British Virgin Island
Highland Champ Corporation	Indirect		100	%	British Virgin Island
HMI Grande Cuisine SAS	Indirect		100	%	France
Hobart (Japan) K.K.	Indirect		100	%	Japan
Hobart Andina S.A.	Indirect		100	%	Columbia
Hobart Argentina S.A.	Indirect		100	%	Argentina
Hobart Brothers Company	Indirect		100	%	Ohio
Hobart Brothers International, Ltd.	Indirect		100	%	Chile
Hobart Canada Corp.	Indirect		100	%	Canada
Hobart Corporation	Indirect		100	%	Delaware
Hobart Dayton Mexicana S.A. de R.L. de C.V.	Indirect		100	%	Mexico
Hobart do Brasil Ltd.	Indirect		100	%	Brazil
Hobart Food Equipment Co. Ltd.	Indirect		100	%	China
Hobart Foster (South Africa) Pty. Ltd.	Indirect		100	%	South Africa
Hobart Foster Belgium B.V.B.A.	Indirect		100	%	Belgium
HOBART Gesellschaft mit beschränkter Haftung	Indirect		100	%	Germany
Hobart International (Singapore) Pte. Ltd.	Indirect		100	%	Singapore
Hobart International (South Asia), Inc.	Indirect		100	%	Delaware
Hobart Korea Co. Ltd.	Indirect		100	%	South Korea
Hobart Nederland B.V.	Indirect		100	%	Netherlands
Hobart Sales & Service, Inc.	Indirect		100	%	Ohio
Hobart Scandinavia ApS	Indirect		100	%	Denmark
Hobart Techniek B.V.	Indirect		100	%	Netherlands
Hôpital Services Systemes S.A.S.	Indirect		100	%	France
Horis SAS	Indirect		100	%	France
Houchin Aerospace	Indirect		100	%	United Kingdom
Hsb SOFT Limited	Indirect		100	%	Ireland
HsbSOFT Cia Ltda	Indirect		100	%	Ecuador
HsbSOFT, BVBA	Indirect		100	%	Belgium
Hwa Meir Packing Daily Commodities Co., Ltd.	Indirect		100	%	China
I.T.W. Inc.	Direct		100	%	Illinois
Illinois Tool Works (Chile) S.A.	Indirect		100	%	Chile
Illinois Tool Works (ITW) Nederland B.V.	Indirect		100	%	Netherlands
Illinois Tool Works Norway AS	Indirect		100	%	Norway
Inatec Innovative Auftragstechnologie GmbH	Indirect		100	%	Germany
Indiana Pickling and Processing Company	Indirect		44	%	Indiana
Industrias Concepto del Pacifico Guatemala S.A.	Indirect		100	%	Guatemala
Industrie Plastic Elsässer GmbH	Indirect		100	%	Germany
InHold (NZ) Finance Ltd.	Indirect		100	%	Bermuda
InHold (UK) Finance Ltd.	Indirect		100	%	Bermuda
Inmobillaria Cit., S.A. de C.F.	Direct		49	%	Mexico

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
INN SP Z.o.o.	Indirect		20	%	Poland
Innova Temperlite 1200, S.A. de C.V.	Indirect		100	%	Mexico
Innova Temperlite Servicios, S.A. de C.V.	Indirect		100	%	Mexico
Innovations in Cycling Inc.	Direct		100	%	Arizona
Instron	Indirect		100	%	United Kingdom
Instron (Shanghai) Experiment Equipment Trade Co., Ltd.	Indirect		100	%	China
Instron (Thailand) Limited	Direct & Indirect		100	%	Thailand
Instron Deutschland GmbH	Indirect		100	%	Germany
Instron Foreign Sales Corp. Limited	Direct		100	%	Jamaica
Instron France S.A.S.	Indirect		100	%	France
Instron Holdings Limited	Indirect		100	%	United Kingdom
Instron India Private Limited	Indirect		100	%	India
Instron International Limited	Indirect		100	%	United Kingdom
Instron Japan Company, Ltd.	Direct		100	%	Massachusetts
Instron Korea LLC	Indirect		100	%	South Korea
Instron Proprietary Limited	Indirect		100	%	Australia
Instron Singapore Pte Limited	Indirect		100	%	Singapore
Instron Structural Testing Systems GmbH	Indirect		100	%	Germany
International Leasing Company	Indirect		100	%	Delaware
Interstrap B.V.	Indirect		100	%	Netherlands
IPHC LLC	Indirect		100	%	Delaware
Isolenge Isolantes Termicos Ltda	Indirect		100	%	Brazil
Isolenge Termo Construcoes Ltda.	Indirect		100	%	Brazil
ITECMA S.A.S.	Indirect		100	%	France
ITW (China) Investment Company Limited	Indirect		100	%	China
ITW (Deutschland) GmbH	Indirect		100	%	Germany
ITW (EU) Holdings Ltd.	Indirect		100	%	Bermuda
ITW (Malaysian) Holdings Company Ltd.	Indirect		100	%	Bermuda
ITW Acmor (Shanghai) Co., Ltd.	Indirect		100	%	China
ITW Administration GmbH	Indirect		100	%	Germany
ITW AEP LLC	Direct		100	%	Delaware
ITW AFC Pty Limited	Indirect		100	%	Australia
ITW Air Hammer s.r.o.	Indirect		100	%	Czech Republic
ITW Aircraft Investments Inc.	Indirect		100	%	Delaware
ITW Airport Ground Equipment (Beijing) Co. Ltd.	Indirect		100	%	China
ITW Alpha Sárl	Indirect		100	%	Luxembourg
ITW Ampang Industries Philippines, Inc.	Indirect		100	%	Philippines
ITW Angleboard AB	Indirect		100	%	Sweden
ITW Ark-Les Corporation	Direct		100	%	Massachusetts
ITW Australia Pty. Ltd.	Indirect		100	%	Australia
ITW Austria Vertriebs GmbH	Indirect		100	%	Austria
ITW Auto Components (ChongQing) Co Ltd	Indirect		100	%	China
ITW Automotive Components & Fasteners Japan K.K.	Indirect		100	%	Japan
ITW Automotive Fasteners (Shanghai) Co., Ltd.	Indirect		100	%	China
ITW Automotive Italia Srl	Indirect		100	%	Italy
ITW Automotive Products-Verwaltungs GmbH	Indirect		100	%	Germany
ITW Bailly Comte S.A.S.	Indirect		100	%	France
ITW Bay Area Labels (Shanghai) Co., Ltd.	Indirect		100	%	China
ITW Befestigungssysteme GmbH	Indirect		100	%	Germany
ITW Belgium S.p.r.l.	Indirect		100	%	Belgium
ITW Bevestigingssystemen B.V.	Indirect		100	%	Netherlands
ITW Brazilian Nominee L.L.C.	Indirect		100	%	Delaware
ITW Building Components Group Inc.	Indirect		100	%	Delaware
ITW Bulgaria EOOD	Indirect		100	%	Bulgaria
ITW Business Development S.à r.l.	Indirect		100	%	Luxembourg
ITW Canada Holdings Company	Indirect		100	%	Nova Scotia

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
ITW Canada Inc.	Indirect		100	%	Ontario
ITW Canada Investments Limited Partnership	Indirect		100	%	Canada
ITW Canada Management Company/Compagnie Gestion	Indirect		100	%	Nova Scotia
ITW Cayman	Indirect		100	%	Cayman Islands
ITW CCIP Holdings LLC	Indirect		100	%	Delaware
ITW Celeste Inc.	Direct		100	%	Delaware
ITW Chemical Products Ltda	Indirect		100	%	Brazil
ITW Chemical Products Scandinavia ApS	Indirect		100	%	Denmark
ITW Construction Products (SEA) Pte. Ltd.	Indirect		100	%	Singapore
ITW Construction Products (Suzhou) Co. Ltd.	Indirect		100	%	China
ITW Construction Products AB	Indirect		100	%	Sweden
ITW Construction Products ApS	Indirect		100	%	Denmark
ITW Construction Products AS	Indirect		100	%	Norway
ITW Construction Products CR, s.r.o.	Indirect		100	%	Czech Republic
ITW Construction Products Espana S.A.	Indirect		100	%	Spain
ITW Construction Products Italy Srl	Indirect		100	%	Italy
ITW Construction Products Malaysia Sdn. Bhd.	Indirect		100	%	Malaysia
ITW Construction Products OU	Indirect		100	%	Estonia
ITW Construction Products Oy	Indirect		100	%	Finland
ITW Contamination Control (Wujiang) Company Limited	Indirect		100	%	China
ITW Contamination Control B.V.	Indirect		100	%	Netherlands
ITW Covid Security Group Inc.	Direct		100	%	Delaware
ITW CP Distribution Center Holland BV	Indirect		100	%	Netherlands
ITW CPM S.A.S.	Indirect		100	%	France
ITW CS (UK) Ltd.	Indirect		100	%	United Kingdom
ITW Cupids LLC	Indirect		100	%	Delaware
ITW Cupids, L.P.	Indirect		100	%	Delaware
ITW de France S.A.S.	Indirect		100	%	France
ITW de Guatemala Y Compañia, Sociedad en Comandita por Acciones	Indirect		100	%	Guatemala
ITW DelFast do Brasil Ltda.	Direct & Indirect		100	%	Brazil
ITW Delta Sárl	Indirect		100	%	Luxembourg
ITW Denmark ApS	Indirect		100	%	Denmark
ITW do Brazil Industrial e Comercial Ltda.	Direct & Indirect		100	%	Brazil
ITW Domestic Finance II Inc.	Indirect		100	%	Delaware
ITW Domestic Holdings Inc.	Indirect		100	%	Delaware
ITW Dynatec GmbH	Indirect		100	%	Germany
ITW Dynatec Kabushiki Kaisha	Direct		100	%	Japan
ITW Dynatec Singapore Pte. Ltd.	Direct		100	%	Singapore
ITW Electronic Business Asia Co., Limited	Direct		100	%	Taiwan
ITW Electronic Components/Products (Shanghai) Company Limited	Indirect		100	%	China
ITW Electronic Packaging (Malta) Ltd.	Indirect		100	%	Malta
ITW Epsilon Sárl	Indirect		100	%	Luxembourg
ITW Espana S.A.	Indirect		100	%	Spain
ITW European Participations LLC	Indirect		100	%	Delaware
ITW Fastener Products GmbH	Indirect		100	%	Germany
ITW Fastex de Argentina S.A.	Indirect		95	%	Argentina
ITW FEG Hong Kong Limited	Indirect		100	%	Hong Kong
ITW Finance Europe SA	Direct		100	%	Luxembourg
ITW Finance II L.L.C.	Direct & Indirect		100	%	Delaware
ITW Finishing Equipment (Shanghai) Co., Ltd.	Indirect		100	%	China
ITW Finishing LLC	Indirect		100	%	Delaware
ITW Fluid Handling Equipment (Suzhou) Co., Ltd.	Indirect		100	%	China
ITW Foils B.V.	Indirect		100	%	Netherlands
ITW Foils, S.L.	Indirect		100	%	Spain
ITW Food Equipment Group LLC	Indirect		100	%	Delaware
ITW Gamma Sárl	Indirect		100	%	Luxembourg

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
ITW Gema (Shanghai) Co Ltd	Indirect		100	%	China
ITW Gema GmbH	Indirect		100	%	Switzerland
ITW Gema SRL	Indirect		100	%	Italy
ITW German Management LLC	Indirect		100	%	Delaware
ITW German Real Estate Management GmbH & Co. KG	Indirect		100	%	Germany
ITW GH LLC	Indirect		100	%	South Korea
ITW Global Investments Holdings LLC	Indirect		100	%	Delaware
ITW Global Investments Inc.	Indirect		100	%	Delaware
ITW Graphics Asia Limited	Indirect		100	%	Hong Kong
ITW Graphics France Sarl	Indirect		100	%	France
ITW Graphics Italy Srl	Indirect		100	%	Italy
ITW Graphics Tekstil Sanayi Ve Dis Ticaret Limited Sirketi	Indirect		100	%	Turkey
ITW Great Britain Investment & Licensing Holding Company	Indirect		100	%	Delaware
ITW Group European Finance Company Ltd.	Indirect		100	%	Bermuda
ITW Group France (Luxembourg) S.à r.l.	Indirect		100	%	Luxembourg
ITW GSE Group Asia Pacific (s) PTE LTD.	Indirect		100	%	Singapore
ITW Guatemala Holdings LLC	Direct		100	%	Delaware
ITW Gunther S.A.S.	Indirect		100	%	France
ITW Heller GmbH	Indirect		100	%	Germany
ITW Henschel GmbH	Indirect		100	%	Germany
ITW Hi-Cone Japan Limited	Direct		100	%	Japan
ITW HLP Thailand Co. Ltd.	Direct & Indirect		100	%	Thailand
ITW Holding Química B.C., S.L.	Indirect		100	%	Spain
ITW Holdings Pty Ltd	Indirect		100	%	Australia
ITW Holdings UK	Indirect		100	%	United Kingdom
ITW Idle Facilities LLC	Indirect		100	%	Delaware
ITW ILC Holdings I Inc.	Indirect		100	%	Delaware
ITW ILC Holdings II Inc.	Indirect		100	%	Delaware
ITW Imaden Industria e Comercio Ltda.	Direct & Indirect		100	%	Brazil
ITW India Limited	Direct & Indirect		99.59	%	India
ITW Industrial Components SrL	Indirect		100	%	Italy
ITW Industrial Products Trading (Shanghai) Co., Ltd.	Indirect		100	%	China
ITW Industry B.V.	Indirect		100	%	Netherlands
ITW Industry Co., Ltd.	Indirect		100	%	Japan
ITW Industry SAS	Indirect		100	%	France
ITW Insulation Systems FZE	Indirect		100	%	United Arab Emirates
ITW Insulation Systems Malaysia Sdn Bhd	Indirect		100	%	Malaysia
ITW International Finance S.A.S.	Indirect		100	%	France
ITW International Holdings LLC	Indirect		100	%	Delaware
ITW Investments Limited	Indirect		100	%	United Kingdom
ITW Ireland	Indirect		100	%	Ireland
ITW Ireland Holdings	Indirect		100	%	Ireland
ITW Ispracontrols Bulgaria EOOD	Indirect		100	%	Bulgaria
ITW Italy Finance Srl	Indirect		100	%	Italy
ITW Italy Holding Srl	Indirect		100	%	Italy
ITW Japan Holding GK	Indirect		100	%	Japan
ITW Limited	Indirect		100	%	United Kingdom
ITW Litec France S.A.S.	Indirect		100	%	France
ITW LLC & Co. KG	Indirect		100	%	Germany
ITW Lombard Holdings Inc.	Indirect		100	%	Delaware
ITW Meritex Sdn. Bhd.	Indirect		100	%	Malaysia
ITW Metal Fasteners, S.L.	Indirect		100	%	Spain
ITW Metalflex, druŽba za proizvodnjo delov za gospodinjske aparate, d.o.o. TOLMIN	Indirect		100	%	Slovenia
ITW Mexico Capital, S. DE R.L. DE C.V.	Indirect		100	%	Mexico
ITW Mexico Holding Company S. De R.L. de C.V.	Indirect		100	%	Mexico

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
ITW Mexico Holding Inc.	Indirect		100	%	Delaware
ITW Mexico Holdings LLC	Indirect		100	%	Delaware
ITW México, S. de R.L. de C.V.	Direct & Indirect		100	%	Mexico
ITW Mima Films L.L.C.	Indirect		100	%	Delaware
ITW Mima Holdings L.L.C.	Indirect		100	%	Delaware
ITW Mima Systems S.A.S.	Indirect		100	%	France
ITW Minigrip (Thailand) Co., Ltd.	Direct & Indirect		100	%	Thailand
ITW Morlock GmbH	Indirect		100	%	Germany
ITW Mortgage Investments I, Inc.	Indirect		100	%	Delaware
ITW Mortgage Investments II, Inc.	Indirect		100	%	Delaware
ITW Mortgage Investments III, Inc.	Indirect		100	%	Delaware
ITW Mortgage Investments IV, Inc.	Indirect		100	%	Delaware
ITW New Zealand Limited	Indirect		100	%	New Zealand
ITW Novadan ApS	Indirect		100	%	Denmark
ITW NZ Holdco	Indirect		100	%	New Zealand
ITW Oberflächentechnik GmbH	Indirect		100	%	Germany
ITW Operations Australia Pty Ltd	Indirect		100	%	Australia
ITW Packaging (Malaysia) Sdn Bhd	Indirect		100	%	Malaysia
ITW Packaging (Shanghai) Limited	Indirect		100	%	China
ITW Packaging Systems Group GmbH	Indirect		100	%	Germany
ITW Packaging Systems OOO	Indirect		100	%	Russia
ITW Paris E.U.R.L.	Indirect		100	%	France
ITW Participations S.à r.l.	Indirect		100	%	Luxembourg
ITW Pension Funds Trustee Company	Indirect		100	%	United Kingdom
ITW Performance Polymers & Fluids Korea Limited	Indirect		100	%	South Korea
ITW Performance Polymers & Fluids OOO	Indirect		100	%	Russia
ITW Performance Polymers (Wujiang) Co., Ltd.	Indirect		100	%	China
ITW Performance Polymers and Fluids (Hong Kong) Co. Limited	Indirect		100	%	Hong Kong
ITW Performance Polymers and Fluids Group FZE	Indirect		100	%	United Arab Emirates
ITW Performance Polymers and Fluids Pte. Ltd.	Indirect		100	%	Singapore
ITW Performance Polymers and Fluids Trading (Wujiang) Co., Ltd.	Indirect		100	%	China
ITW Philippines Holdings LLC	Indirect		100	%	Delaware
ITW Philippines, Inc.	Indirect		100	%	Philippines
ITW PMI Investments, Inc.	Indirect		100	%	Delaware
ITW POLSKA SP. Z O.O.	Indirect		100	%	Poland
ITW Poly Mex, S. de R.L. de C.V.	Direct & Indirect		100	%	Mexico
ITW Poly Recycling GmbH	Indirect		100	%	Switzerland
ITW PPF Brasil Adesivos Ltda.	Indirect		100	%	Brazil
ITW Pronovia s.r.o.	Indirect		100	%	Czech Republic
ITW Real Estate Management GmbH	Indirect		100	%	Germany
ITW Residuals III L.L.C.	Indirect		100	%	Delaware
ITW Residuals IV L.L.C.	Indirect		100	%	Delaware
ITW Reyflex France S.A.S.	Indirect		100	%	France
ITW Rivex S.A.S.	Indirect		100	%	France
ITW Servicios, S. de R.L. de C.V.	Indirect		100	%	Mexico
ITW Shippers S.p.r.l.	Indirect		100	%	Belgium
ITW Siewer Automotiv s.r.o.	Indirect		100	%	Czech Republic
ITW Signode Holding GmbH	Indirect		100	%	Germany
ITW Singapore (Pte) Ltd.	Indirect		100	%	Singapore
ITW SMPI S.A.S.	Indirect		100	%	France
ITW Spain Holdings, S.L.	Indirect		100	%	Spain
ITW Specialty Film LLC	Indirect		100	%	South Korea
ITW Specialty Films (Poland) sp zoo	Indirect		100	%	Poland
ITW Specialty Films France	Indirect		100	%	France
ITW Specialty Films Italy S.r.l.	Indirect		100	%	Italy
ITW SPEEDLINE EQUIPMENT (SUZHOU) CO., LTD	Indirect		100	%	China

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
ITW Spraytec	Indirect		100	%	France
ITW Stokvis Conversao De Fitas Adesivas Ltda.	Indirect		100	%	Brazil
ITW Strapping (Shenyang) Company Limited	Indirect		100	%	China
ITW Surfaces & Finitions S.A.S.	Indirect		100	%	France
ITW Sverige AB	Indirect		100	%	Sweden
ITW Sweden Holding AB	Indirect		100	%	Sweden
ITW Syn-Tex México. S.A. de C.V.	Indirect		100	%	Mexico
ITW Test & Measurement (Shanghai) Co. Ltd.	Indirect		100	%	China
ITW Test & Measurement GmbH	Indirect		100	%	Germany
ITW Test and Measurement Italia Srl	Indirect		100	%	Italy
ITW Test and Measurement Services Industry and Trade Ltd.	Indirect		100	%	Turkey
ITW Texwipe Philippines, Inc.	Indirect		100	%	Philippines
ITW Thermal Films (Shanghai) Co., Ltd.	Indirect		100	%	China
ITW Tiede Non-destructive testing GmbH	Indirect		100	%	Germany
ITW UK	Indirect		100	%	United Kingdom
ITW Universal II LLC	Direct		100	%	Delaware
ITW Universal L.L.C.	Direct		100	%	Delaware
ITW V.A.C. BV	Indirect		100	%	Netherlands
ITW Welding Products B.V.	Indirect		100	%	Netherlands
ITW Welding Products Group FZE	Indirect		100	%	UAE -Dubai
ITW Welding Products Group S. DE R.L. DE C.V.	Indirect		100	%	Mexico
ITW Welding Products Italy Srl	Indirect		100	%	Italy
ITW Welding Produtos Para Solgdagem Ltda.	Indirect		100	%	Brazil
ITW Welding S.A.S.	Indirect		100	%	France
ITW Welding Singapore Pte. Ltd.	Indirect		100	%	Singapore
ITW Welding Torches Europe D-Tech GmbH	Indirect		100	%	Germany
James Briggs Holdings Limited	Indirect		100	%	United Kingdom
James Briggs Limited	Indirect		100	%	United Kingdom
Japan Polymark Co. Ltd.	Indirect		40	%	Japan
Josef Kihlberg AB	Indirect		100	%	Sweden
Josef Kihlberg AS	Indirect		100	%	Norway
Josef Kihlberg ZAO	Indirect		100	%	Russian Federation
KB Sektionen 1	Indirect		100	%	Sweden
KCPL Holdings Private Limited	Indirect		100	%	Singapore
KCPL Mauritius Holdings	Indirect		100	%	Mauritius
Kester Asia Holdings, Inc.	Indirect		100	%	Delaware
Kester Components (M) Sdn. Bhd.	Indirect		100	%	Malaysia
Kester Components Private Limited	Indirect		100	%	Singapore
Kester Electronic Materials (Suzhou) Co., Ltd.	Indirect		100	%	China
Kester GmbH	Indirect		100	%	Germany
Kester, Inc.	Indirect		100	%	Delaware
Kiwiplan Asia Sdn Bhd	Indirect		100	%	Malaysia
Kiwiplan Europe Limited	Indirect		100	%	United Kingdom
Kiwiplan GmbH	Indirect		100	%	Germany
Kiwiplan Inc.	Direct		100	%	Ohio
Kiwiplan NZ	Indirect		100	%	New Zealand
Kleinmann GmbH	Indirect		100	%	Germany
KP Comércio e Indústria de Productos Para Automóveis e Lubrificantes, S.A.	Indirect		100	%	Portugal
Krafft Argentina, S.A.	Indirect		80	%	Argentina
Krafft, S.L.	Indirect		100	%	Spain
Lachenmeier ApS	Indirect		100	%	Denmark
Lajota Srl	Indirect		100	%	Argentina
Lebo, S.L.	Indirect		100	%	Spain
Liljendals Bruk AB	Indirect		100	%	Finland
Lock N Pop Europe	Indirect		100	%	Belgium
Loma Systems (Canada) Inc.	Indirect		100	%	Canada

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
Loma Systems sro	Indirect		100	%	Czech Republic
Lombard Pressings Limited	Indirect		100	%	United Kingdom
Loveshaw Corporation, The	Direct		100	%	Delaware
Loveshaw Europe Limited	Indirect		100	%	United Kingdom
LSPS Inc.	Indirect		100	%	Delaware
Lumex, Inc.	Direct		100	%	Illinois
Luvex Industria De Equipamentos De Protecao Ltda.	Indirect		100	%	Brazil
Lys Fusion Poland Sp. z.o.o.	Indirect		100	%	Poland
M & C Specialties (Ireland) Limited	Indirect		100	%	Ireland
M & C Specialties Co.	Direct		100	%	Pennsylvania
M&C Specialties (Shenzhen) Co. Ltd.	Indirect		100	%	China
M&C Specialties (Tianjin) Co. Ltd.	Indirect		100	%	China
M&C Specialties Company HK Limited	Indirect		100	%	Hong Kong
M.P.S. Metal Plastik Sanayi Cember ve Paketleme Sistemleri Imalat ve Ticaret A.S.	Indirect		50	%	Turkey
Magna Industrial Co. Limited	Indirect		100	%	Hong Kong
Magnaflux Limited	Indirect		100	%	United Kingdom
Manhattan Lynch Limited	Indirect		100	%	United Kingdom
Manufacturing Avancee S.A.	Indirect		100	%	Morocco
Maquilas y Componentes Industriales, I S.A. de C.V.	Indirect		100	%	Mexico
Marescol SA	Indirect		48	%	France
Maxal International, Inc.	Direct		100	%	Michigan
Mbelish.com Limited	Indirect		100	%	United Kingdom
MBM France S.A.S.	Indirect		100	%	France
Mercotrade Importacao e Exportacao Ltda.	Indirect		100	%	Brazil
Meritex Technology (Suzhou) Co. Ltd.	Indirect		100	%	China
Metro Sport International Limited	Indirect		100	%	United Kingdom
Metro Sport Limited	Indirect		100	%	United Kingdom
Metropolitan Oils (Proprietary) Limited	Indirect		100	%	South Africa
Mezger Heftsysteme GmbH	Indirect		100	%	Germany
Miller Beijing Electric Manufacturing Co. Ltd.	Indirect		100	%	China
Miller Electric Mfg. Co.	Indirect		100	%	Wisconsin
Miller Insurance Ltd.	Indirect		100	%	Bermuda
Mima Films L.L.C.	Indirect		100	%	Delaware
Mima Films S.a.r.l.	Indirect		100	%	Luxembourg
Mima Films Sprl	Indirect		100	%	Belgium
Minigrip Limited	Indirect		100	%	United Kingdom
Modern Maintenance Products International	Indirect		100	%	United Kingdom
National Fleet Supply Corporation	Indirect		100	%	Delaware
National Truck Parts of Georgia, Inc.	Indirect		100	%	Delaware
National Truck Parts of the Midwest, Inc.	Indirect		100	%	Delaware
National Truck Parts, Inc.	Indirect		100	%	Delaware
NDT Holding LLC	Indirect		100	%	Delaware
Norden Czech s.r.o.	Indirect		100	%	Czech Republic
NorDen Holding Hadsund A/S	Indirect		100	%	Denmark
Norden Olje AB	Indirect		100	%	Sweden
NorDen Olje ApS	Indirect		100	%	Denmark
Norden Olje AS	Indirect		100	%	Norway
Norden Sp. Z.o.o. Polen	Indirect		100	%	Poland
Nordic SAS	Indirect		100	%	France
Norsk Signode AS	Indirect		100	%	Norway
North Star Imaging, Inc.	Direct		100	%	Minnesota
Nova Chimica, S.r.l.	Indirect		100	%	Italy
Novadan Sp. Z.o.o.	Indirect		100	%	Poland
Noza Holdings Pty Ltd	Indirect		100	%	Australia
NSC Europe Limited	Direct		100	%	United Kingdom

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
NuTrus LLC	Direct		50	%	Delaware
NYCO-KRAFFT, S.A.	Indirect		50	%	Spain
Odesign, Inc.	Direct		100	%	Illinois
Orama Fabrications	Indirect		100	%	United Kingdom
Orbitalum Tools GmbH	Indirect		100	%	Germany
Orgapack GmbH	Indirect		100	%	Switzerland
Oy M. Haloila AB	Indirect		100	%	Finland
Pacific Concept Industries (USA) LLC	Direct		100	%	Delaware
Pacific Concept Industries Limited (Enping)	Indirect		100	%	China
Packaging Leasing Systems Inc.	Direct		80	%	Delaware
Packaging Solutions Tanzania Limited	Indirect		100	%	Tanzania
Panreac Chimie, S.A.R.L.	Indirect		100	%	France
Panreac Quimica, LDA	Indirect		100	%	Portugal
Paradym Investments Ltd.	Indirect		100	%	Nevada
Paslode Fasteners (Shanghai) Co. Ltd.	Indirect		100	%	China
Paul Forkardt Inc.	Indirect		100	%	Delaware
PCI (Shanghai) Trade Co. Ltd.	Indirect		100	%	China
Periclimeno, S.L.	Indirect		100	%	Spain
Pistora Oy	Indirect		100	%	Finland
PMI Food Equipment Group (Malaysia), Inc.	Indirect		100	%	Delaware
PMI Food Equipment Group Canada Inc.	Indirect		100	%	Ontario
Polymark Export Limited	Direct		100	%	United Kingdom
Polyrey S.A.S.	Indirect		100	%	France
PR.A.I. Srl	Indirect		100	%	Italy
Precision Brake & Clutch, Inc.	Indirect		100	%	Delaware
Premark FEG L.L.C.	Indirect		100	%	Delaware
Premark HII Holdings, Inc.	Indirect		100	%	Ohio
Premark International Holdings B.V.	Indirect		100	%	Netherlands
Premark International, LLC	Indirect		100	%	Delaware
Premark N.V.	Indirect		100	%	Netherland Curacao
Premark RWP Holdings, Inc.	Indirect		100	%	Delaware
Prodex Selbstklebeprodukte GmbH	Indirect		100	%	Germany
Prolex, Sociedad Anónima	Indirect		100	%	Costa Rica
Prolim Comercio de Higiene E Limpeza Ltda.	Indirect		100	%	Brazil
Prolim Quimica Avancada Ltda.	Indirect		100	%	Brazil
Prolim Servicos E Manutencoes Ltda.	Indirect		100	%	Brazil
Propaper Industria E Comercio de Papeis Ltda.	Indirect		100	%	Brazil
Pryda (Malaysia) Sdn Bhd	Indirect		100	%	Malaysia
Pryda (Thailand) Co., Ltd.	Indirect		100	%	Thailand
PT ITW Construction Products Indonesia	Indirect		100	%	Indonesia
PT Pryda Indonesia	Indirect		100	%	Indonesia
PT2 Holdings Inc.	Indirect		100	%	Delaware
PTO Sales Corporation	Indirect		100	%	Delaware
QSA Global, Inc.	Indirect		100	%	Delaware
Quandel Verpackungs- und Foerdertechnik GmbH	Indirect		100	%	Germany
Quimica Industrial Mediterranea, S.A.	Indirect		100	%	Spain
Quimica TF, S.A. de C.V.	Direct & Indirect		100	%	Mexico
Ransburg Industrial Finishing K.K.	Indirect		100	%	Japan
Ransburg-Gema UK Limited	Indirect		100	%	United Kingdom
Rapid Cook LLC	Indirect		100	%	Delaware
Regent Hose and Hydraulics Limited	Indirect		100	%	United Kingdom
Reid Construction Systems Pty. Ltd.	Indirect		100	%	Australia
Requisite Technology Inc.	Indirect		100	%	Delaware
Resopal GmbH	Indirect		100	%	Germany
Resopal-Unterstuetzungseinrichtung GmbH in Gross-Umstadt	Indirect		100	%	Germany
Rocol	Indirect		100	%	United Kingdom

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
Rocol Site Safety Systems	Indirect		100	%	United Kingdom
Rotular Servicoes e Assistencia Tecnica em Rotulagem Ltda.	Indirect		100	%	Brazil
Saint John (Delaware) LLC	Indirect		100	%	Delaware
Salter India Private Limited	Indirect		91	%	India
Sarsfield Corporation N.V.	Indirect		100	%	Netherland Curacao
SCANTECH Suomi Oy AB	Indirect		100	%	Finland
Schember GmbH	Indirect		100	%	Austria
Schnee-Morehead, Inc.	Direct		100	%	Texas
schneider + klein Wyrobi Metalowe Sp.Zo.O.	Indirect		100	%	Poland
Scybele S.A.S.	Indirect		100	%	France
Sealant Systems International, Inc.	Indirect		100	%	California
Sentinel Asia Yuhan Hoesa	Direct		51	%	South Korea
SG Invest Holding GmbH	Indirect		100	%	Germany
Shanghai ITW Plastic & Metal Company Limited	Indirect		93	%	China
Signode (Thailand) Limited	Direct & Indirect		100	%	Thailand
Signode AB	Indirect		100	%	Sweden
Signode Brasileria Ltda.	Direct & Indirect		100	%	Brazil
Signode Brazilian Nominee LLC	Indirect		100	%	Delaware
Signode BVBA	Indirect		100	%	Belgium
Signode Hong Kong Limited	Indirect		100	%	Hong Kong
Signode Kabushiki Kaisha	Indirect		100	%	Japan
Signode Korea Inc.	Indirect		100	%	South Korea
Signode Limited	Indirect		100	%	United Kingdom
Signode México, S. de R.L. de C.V.	Direct & Indirect		100	%	Mexico
Signode Packaging Systems Limited	Indirect		100	%	Kenya
Signode Pickling Holding LLC	Direct		100	%	Delaware
Signode Singapore Investments Pte. Ltd.	Indirect		100	%	Singapore
Signode Singapore Pte. Ltd.	Indirect		100	%	Singapore
Signode System GmbH	Indirect		100	%	Germany
Simco (Nederland) B.V.	Indirect		100	%	Netherlands
Simco Japan, Inc.	Indirect		100	%	Japan
Six States Distributors, Inc.	Indirect		100	%	Utah
Slab Holdings Limited	Indirect		100	%	United Kingdom
Slime South Pacific Pty Ltd	Indirect		100	%	Australia
Sn Investors, Inc.	Direct		100	%	Delaware
Sociedad Industrial Tecnica Colombiana S.A.	Indirect		100	%	Colombia
Société Civile Immobilière des Baquets	Indirect		100	%	France
Société Civile Immobilière Rousseau Ivry	Indirect		100	%	France
Societe de Constructions Elbeuvienne de Materiels our L’Alimentation SAS	Indirect		100	%	France
Solutions Group Transaction Subsidiary Inc.	Indirect		100	%	Delaware
Space Bag LLC	Direct		100	%	Delaware
Spacebag de Mexico, S. De R.L. De C.V	Indirect		100	%	Mexico
Speedline Holdings I, Inc.	Indirect		100	%	Delaware
Speedline Holdings I, LLC	Direct		100	%	Delaware
Speedline Technologies Asia Pte. Ltd.	Indirect		100	%	Singapore
Speedline Technologies GmbH	Indirect		100	%	Germany
Speedline Technologies Mexico Services, S. de R.L. de C.V.	Indirect		100	%	Mexico
Speedline Technologies Mexico, S. de R.L. de C.V.	Indirect		100	%	Mexico
Speedline Technologies, Inc.	Indirect		100	%	Delaware
SPIT S.A.S. (Societe de Prospection et d’Inventions Techniques S.A.S.)	Indirect		100	%	France
Standard Parts Corporation	Indirect		100	%	Delaware
Steelfast Asia Sdn Bhd	Indirect		100	%	Malaysia
Stokvis Celix Espana Unipersonal SL	Indirect		100	%	Spain
Stokvis Celix Portugal LDA	Indirect		100	%	Spain
Stokvis Denmark AS	Indirect		100	%	Denmark
Stokvis Promi Czech s.r.o.	Indirect		100	%	Czech Republic

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
Stokvis Promi Slovakia s.r.o.	Indirect		100	%	Slovakia
Stokvis Prostick Pvt. Ltd.	Indirect		100	%	India
Stokvis Spain Holding SL	Indirect		100	%	Spain
Stokvis Tapes (Beijing) Co. Ltd.	Indirect		100	%	China
Stokvis Tapes (Hong Kong) Co. Ltd.	Indirect		100	%	Hong Kong
Stokvis Tapes (Shanghai) Co. Ltd.	Indirect		100	%	China
Stokvis Tapes (Shenzhen) Co. Ltd.	Indirect		100	%	China
Stokvis Tapes (Taiwan) Co. Ltd.	Indirect		100	%	Taiwan
Stokvis Tapes BVBA	Indirect		100	%	Belgium
Stokvis Tapes Deutschland GmbH	Indirect		100	%	Germany
Stokvis Tapes Deutschland Holding GmbH	Indirect		100	%	Germany
Stokvis Tapes Estonia OÜ	Indirect		100	%	Estonia
Stokvis Tapes Finland Oy	Indirect		100	%	Finland
Stokvis Tapes France SAS	Indirect		100	%	France
Stokvis Tapes Holding B.V.	Indirect		100	%	Netherlands
Stokvis Tapes India Pvt. Ltd.	Indirect		100	%	India
Stokvis Tapes Magyarorszag Kft	Indirect		100	%	Hungary
Stokvis Tapes Nederland B.V.	Indirect		100	%	Netherlands
Stokvis Tapes Norge AS	Indirect		100	%	Norway
Stokvis Tapes Polska Spzoo	Indirect		100	%	Poland
Stokvis Tapes Singapore Pte. Ltd.	Indirect		100	%	Singapore
Stokvis Tapes Sverige AB	Indirect		100	%	Sweden
Strapex Austria GesmbH	Indirect		100	%	Austria
Strapex Embalagem L.d.a.	Indirect		100	%	Portugal
Strapex GmbH	Indirect		100	%	Germany
Strapex GmbH	Indirect		100	%	Switzerland
Strapex Holding GmbH	Indirect		100	%	Switzerland
Strapex Holdings Limited	Indirect		100	%	United Kingdom
Strapex India Limited	Indirect		100	%	India
Strapex Nederland B.V.	Indirect		100	%	Netherlands
Strapex S.A.S.	Indirect		100	%	France
Strapex S.p.r.l.	Indirect		100	%	Belgium
Strapex s.r.l.	Indirect		100	%	Italy
Strapex U.K.	Indirect		100	%	United Kingdom
Strategic Holdings L.L.C.	Indirect		100	%	Delaware
Stretch Packaging Systems Limited	Indirect		100	%	Ireland
Stretch Packaging Systems LLC	Direct		100	%	Delaware
Stretch Packaging Systems Ltd.	Indirect		100	%	Canada
Stretch Packaging Systems S.à r.l.	Indirect		100	%	Luxembourg
Suki International BV	Indirect		100	%	Netherlands
suki International Trading (Shanghai) Co. Ltd.	Indirect		100	%	China
suki.international GesmbH	Indirect		100	%	Austria
suki.international GmbH	Indirect		100	%	Germany
suki.international Sarl	Indirect		100	%	France
Superior Spring Company	Indirect		100	%	Delaware
Supreme Plastics	Indirect		100	%	United Kingdom
Supreme Plastics Holdings	Indirect		100	%	United Kingdom
SWT Holdings B.V.	Indirect		100	%	Netherlands
SysPack do Brasil Participações Ltda.	Indirect		100	%	Brazil
SysPack Indústria e Comércio de Sistemas de Embalagens Industriais Ltda.	Indirect		100	%	Brazil
TAG Fasteners Sdn Bhd	Indirect		100	%	Malaysia
Tarutin Kester Co., Ltd.	Indirect		100	%	Japan
Technographics UK	Indirect		100	%	United Kingdom
Technopack Industria Comercio, Consultoria e Representacoes Ltda.	Indirect		100	%	Brazil
Tecnotapes Srl	Indirect		100	%	Italy
Teknek (China) Limited	Indirect		100	%	Scotland

Company Name	Ownership Type (a)	Percentage			Primary Jurisdiction
Teknek (Japan) Limited	Indirect		100	%	Scotland
Teknek Limited	Indirect		100	%	Scotland
Teksaleco Ltd.	Indirect		100	%	Scotland
Ten Plus S.A.S.	Indirect		100	%	France
TERRA-S Automotive Systems GmbH & Co. KG	Indirect		100	%	Germany
TERRA-S International Trading GmbH	Indirect		100	%	Germany
TERRA-S Japan KK	Indirect		100	%	Japan
TERRA-S Michael Stehle Verwaltungs GmbH	Indirect		100	%	Germany
The Real Reel Corporation	Direct		100	%	Rhode Island
The Three Russells, Sociedad Anónima	Indirect		100	%	Costa Rica
Thirode Grandes Cuisines Poligny SAS	Indirect		100	%	France
Tien Tai Electrode (Kun Shan) Co., Ltd.	Indirect		100	%	China
Tien Tai Electrode Co., Ltd.	Direct		100	%	Taiwan
Tribol Limited	Indirect		100	%	United Kingdom
Troy Investments I LLC	Indirect		100	%	Delaware
Truswal Systems Limited	Indirect		100	%	United Kingdom
Twinaplate Limited	Indirect		100	%	United Kingdom
U-Joints, Inc.	Indirect		100	%	Delaware
Valeron Strength Films B.V.B.A.	Indirect		100	%	Belgium
Varybond Chemie AG	Indirect		100	%	Switzerland
Veneta Decalcogomme s.r.l.	Indirect		100	%	Italy
Versachem Chile S.A.	Indirect		100	%	Chile
Versachem UK	Indirect		100	%	United Kingdom
Vertique, Inc.	Direct		100	%	North Carolina
Vitronics Soltec B.V.	Indirect		100	%	Netherlands
Vitronics Soltec Corporation	Indirect		100	%	Delaware
Vitronics Soltec Pte. Ltd.	Indirect		100	%	Singapore
Vitronics Soltec Technologies (Suzhou) Co., Ltd.	Indirect		100	%	China
VS Acquisition Holding Co.	Direct		100	%	Delaware
VS European Holdco BV	Indirect		100	%	Netherlands
VS Holding Co.	Indirect		100	%	Delaware
Vulcan-Hart Canada Corp.	Indirect		100	%	Canada
W & T Avery (Malawi) Limited	Indirect		100	%	Malawi
Wachs Canada Ltd.	Direct		100	%	Nova Scotia
Wachs Limited	Direct		100	%	United Kingdom
Wachs Subsea LLC	Direct		100	%	Illinois
Weigh-Tronix Canada, ULC	Indirect		100	%	Nova Scotia
Weigh-Tronix UK Limited	Indirect		100	%	United Kingdom
Wilhelm Ritterath GmbH	Indirect		100	%	Germany
Wilsonart (Shanghai) Co. Ltd.	Indirect		100	%	China
Wilsonart (Thailand) Co. Ltd.	Direct & Indirect		100	%	Thailand
Wilsonart International, Inc.	Indirect		100	%	Delaware
Wilsonart Limited	Indirect		100	%	United Kingdom
Wilsonart Taiwan Corp. Ltd.	Indirect		100	%	Taiwan
Wynn Oil (South Africa) (Pty) Ltd.	Indirect		100	%	South Africa
Wynn Oil (U.K.)	Indirect		100	%	United Kingdom
Wynn’s Belgium BVBA	Indirect		100	%	Belgium
Wynn’s France Automotive SAS	Indirect		100	%	France
Wynn’s Italia Srl	Indirect		100	%	Italy
Wynn’s Mekuba India Pvt Ltd	Indirect		51	%	India
Wynn’s Oil Holdings B.V.	Indirect		100	%	Netherlands
Zip-Pak International B.V.	Indirect		100	%	Netherlands
Zip-Pak Japan Company Limited	Direct		100	%	Japan

(a) Ownership type indicates whether each subsidiary or affiliate is directly owned by Illinois Tool Works, Inc., indirectly owned by a subsidiary of Illinois Tool Works, Inc., or a combination thereof.

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the previously filed Registration Statements of Illinois Tool Works Inc. on Form S-8 (File Nos. 333-105731, 333-108088, 333-69542, 333-142627, and 333-145392) and Form S-4 (File No. 333-163547) of our report dated February 17, 2012, relating to the financial statements of Illinois Tool Works Inc. and Subsidiaries and the effectiveness of Illinois Tool Works Inc.’s internal control over financial reporting (which report expresses an unqualified opinion and includes an explanatory paragraph relating to the retrospective adjustment for a change in accounting to eliminate a one-month lag for reporting of the Company’s international operations outside of North America), appearing in the Annual Report on Form 10-K of Illinois Tool Works Inc. for the year ended December 31, 2011.

/s/ DELOITTE & TOUCHE LLP

Deloitte & Touche LLP

Chicago, Illinois

February 17, 2012

EX-24

Exhibit 24

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Daniel J. Brutto

Daniel J. Brutto

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Susan Crown

Susan Crown

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Don H. Davis Jr.

Don H. Davis, Jr.

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Robert C. McCormack

Robert C. McCormack

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Robert S. Morrison

Robert S. Morrison

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ James A. Skinner

James A. Skinner

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ David B. Smith, Jr.

David B. Smith, Jr.

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Pamela B. Strobel

Pamela B. Strobel

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green., and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Kevin M. Warren

Kevin M. Warren

ILLINOIS TOOL WORKS INC.

Form 10-K Annual Report

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that the undersigned whose signature appears below constitutes and appoints David B. Speer and Maria C. Green, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution for her or him and in his or her name, place and stead, in any and all capacities, to sign the Company’s Form 10-K Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

IN WITNESS WHEREOF, the undersigned has executed this power of attorney this 10th day of February, 2012.

/s/ Anré D. Williams

Anré D. Williams

EX-31

Exhibit 31

Rule 13a-14(a) Certification

I, David B. Speer, certify that:

1. I have reviewed this report on Form 10-K of Illinois Tool Works Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 17, 2012	/s/ David B. Speer
	David B. Speer
	Chairman & Chief Executive Officer

Exhibit 31

Rule 13a-14(a) Certification

I, Ronald D. Kropp, certify that:

1. I have reviewed this report on Form 10-K of Illinois Tool Works Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: February 17, 2012	/s/ Ronald D. Kropp
	Ronald D. Kropp
	Senior Vice President & Chief Financial Officer

EX-32

Exhibit 32

Section 1350 Certification

The following statement is being made to the Securities and Exchange Commission solely for purposes of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), which carries with it certain criminal penalties in the event of a knowing or willful misrepresentation.

Each of the undersigned hereby certifies that the Annual Report on Form 10-K for the period ended December 31, 2011 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

Dated: February 17, 2012	/s/ David B. Speer
	David B. Speer
	Chairman & Chief Executive Officer

Dated: February 17, 2012	/s/ Ronald D. Kropp
	Ronald D. Kropp
	Senior Vice President & Chief Financial Officer

XML

International Reporting Lag (Tables)

12 Months Ended

Dec. 31, 2011

Nature of Operations and International Reporting Lag [Abstract]

Impact of elimination of one month reporting lag for international operations

Increase (Decrease)
In Thousands Except per Share Amounts	2010			2009
Operating revenues	$	(21,796	)	$	91,574
Income from continuing operations		(24,877	)		26,023
Income from continuing operations per diluted share		(0.04	)		0.05
Net income		(24,241	)		25,688
Net income per diluted share		(0.04	)		0.05

XML

Long-Term Debt (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	$ 4,233,645	$ 3,105,227
Long-Term Debt including current maturities, Carrying Value	3,750,541	2,794,303
6.55% preferred debt securities due December 31, 2011 [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	250,000	263,750
Long-Term Debt including current maturities, Carrying Value	250,000	249,949
5.15% notes due April 1, 2014 [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	876,800	882,480
Long-Term Debt including current maturities, Carrying Value	799,693	799,567
5.25% Euro notes due October 1, 2014 [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	1,064,218	1,098,412
Long-Term Debt including current maturities, Carrying Value	971,465	1,002,016
6.25% notes due April 1, 2019 [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	871,668	816,200
Long-Term Debt including current maturities, Carrying Value	699,912	699,903
4.88% notes due thru December 31, 2020 [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	24,362	23,471
Long-Term Debt including current maturities, Carrying Value	21,954	21,954
3.375% notes due September 15, 2021 [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	367,574	0
Long-Term Debt including current maturities, Carrying Value	348,476	0
4.875% notes due September 15, 2041 [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	760,533	0
Long-Term Debt including current maturities, Carrying Value	640,551	0
Other borrowings [Member]
Fair value based on rates of long-term debt, including current maturities
Long-Term Debt including current maturities, Fair Value	18,490	20,914
Long-Term Debt including current maturities, Carrying Value	$ 18,490	$ 20,914

XML

Short-Term Debt (Tables)

12 Months Ended

Dec. 31, 2011

Short-Term Debt and Long-Term Debt [Abstract]

Short-Term Debt

In Thousands	2011		2010
Bank overdrafts	$	37,706	$	57,463
Commercial paper		192,495		—
Current maturities of long-term debt		262,343		252,216
Other borrowings		9,519		16,557
	$	502,063	$	326,236

XML

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2011

Prepaid Expenses and Other Current Assets and Other Assets [Abstract]

Prepaid expenses and other current assets

In Thousands	2011		2010
Income tax refunds receivable	$	111,663	$	10,937
Value-added-tax receivables		65,196		59,954
Vendor advances		39,875		35,618
Insurance		24,082		21,111
Other		143,675		138,567
	$	384,491	$	266,187

XML

Stock-Based Compensation (Details 2) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Y
Summary of Stock Option Activity Under Plan
Number of Shares, Under Option, January 1, 2011	19,655,417
Weighted-Average Exercise Price, Under Option, January 1, 2011	$ 44.08
Number of Shares, Granted	2,008,104
Weighted-Average Exercise Price, Granted	$ 55.92
Number of Shares, Exercised	(4,055,853)
Weighted-Average Exercise Price, Exercised	$ 39.06
Number of Shares, Cancelled or Expired	(156,838)
Weighted-Average Exercise Price, Cancelled or Expired	$ 47.58
Number of Shares, Under Option, December 31, 2011	17,450,830
Weighted-Average Exercise Price, Under Option, December 31, 2011	$ 46.57
Weighted-Average Remaining Contractual Term, Under Option, December 31, 2011	5.81
Aggregate Intrinsic Value, Under Option, December 31, 2011	$ 42,603,214
Number of Shares, Exercisable, December 31, 2011	12,036,884
Weighted-Average Exercise Price, Exercisable, December 31, 2011	$ 46.25
Weighted-Average Remaining Contractual Term, Exercisable, December 31, 2011	4.92
Aggregate Intrinsic Value, Exercisable, December 31, 2011	$ 26,125,945

XML

Research and Development Expenses (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Research and Development Expenses (Textual) [Abstract]
Research and development expenses incurred	$ 242,979,000	$ 213,339,000	$ 191,859,000

XML

Segment Information (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating revenues:
Operating Revenues by Operating Segment	$ 17,786,583	$ 15,415,692	$ 13,572,996
Operating income:
Operating Income	2,731,008	2,254,017	1,382,963
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	594,009	548,786	684,841
Plant and equipment additions:
Plant and equipment additions	353,408	287,759	255,739
Identifiable assets:
Identifiable assets	17,983,514	16,412,311
Transportation [Member]
Operating revenues:
Operating Revenues by Operating Segment	3,108,349	2,522,226	2,092,249
Operating income:
Operating Income	474,592	369,454	155,373
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	125,988	97,784	114,865
Plant and equipment additions:
Plant and equipment additions	97,735	70,743	50,006
Identifiable assets:
Identifiable assets	2,657,457	1,946,633
Power Systems and Electronics [Member]
Operating revenues:
Operating Revenues by Operating Segment	2,872,161	2,409,204	2,004,402
Operating income:
Operating Income	580,674	469,244	198,673
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	87,346	78,523	171,065
Plant and equipment additions:
Plant and equipment additions	42,623	25,849	24,776
Identifiable assets:
Identifiable assets	2,407,644	1,903,321
Industrial Packaging [Member]
Operating revenues:
Operating Revenues by Operating Segment	2,612,108	2,272,059	1,940,887
Operating income:
Operating Income	273,342	231,303	95,128
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	72,244	69,513	71,564
Plant and equipment additions:
Plant and equipment additions	27,969	34,324	27,151
Identifiable assets:
Identifiable assets	1,933,782	1,889,068
Food Equipment [Member]
Operating revenues:
Operating Revenues by Operating Segment	1,982,187	1,857,051	1,862,950
Operating income:
Operating Income	303,771	255,060	255,891
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	49,655	44,446	42,472
Plant and equipment additions:
Plant and equipment additions	35,859	30,847	39,039
Identifiable assets:
Identifiable assets	1,022,380	1,030,913
Construction Products [Member]
Operating revenues:
Operating Revenues by Operating Segment	1,958,370	1,753,485	1,547,365
Operating income:
Operating Income	225,448	192,070	104,795
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	58,084	59,496	75,007
Plant and equipment additions:
Plant and equipment additions	37,332	27,823	31,280
Identifiable assets:
Identifiable assets	1,504,850	1,488,119
Polymers and Fluids [Member]
Operating revenues:
Operating Revenues by Operating Segment	1,364,004	1,106,025	980,305
Operating income:
Operating Income	208,873	188,696	150,065
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	48,889	38,942	40,174
Plant and equipment additions:
Plant and equipment additions	22,053	13,283	9,417
Identifiable assets:
Identifiable assets	1,411,665	1,336,996
Decorative Surfaces [Member]
Operating revenues:
Operating Revenues by Operating Segment	1,083,157	987,692	971,900
Operating income:
Operating Income	132,394	117,333	113,227
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	21,946	20,353	23,958
Plant and equipment additions:
Plant and equipment additions	22,590	23,490	12,671
Identifiable assets:
Identifiable assets	399,915	386,398
All Other [Member]
Operating revenues:
Operating Revenues by Operating Segment	2,889,699	2,598,475	2,238,604
Operating income:
Operating Income	531,914	430,857	309,881
Depreciation and amortization and impairment of goodwill and intangible assets:
Depreciation and amortization and impairment of goodwill and intangible assets	129,857	139,729	145,736
Plant and equipment additions:
Plant and equipment additions	67,247	61,400	61,399
Identifiable assets:
Identifiable assets	2,644,120	2,995,165
Intersegment revenues [Member]
Operating revenues:
Operating Revenues by Operating Segment	(83,452)	(90,525)	(65,666)
Corporate [Member]
Identifiable assets:
Identifiable assets	3,615,377	3,435,698
Assets held for sale [Member]
Identifiable assets:
Identifiable assets	$ 386,324	$ 0

XML

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2011

Accrued Expenses [Abstract]

Accrued Expenses

In Thousands	2011		2010
Compensation and employee benefits	$	550,955	$	558,340
Deferred revenue and customer deposits		245,465		264,472
Rebates		162,019		137,554
Warranties		55,203		63,665
Current portion of pension and other postretirement benefit obligations		29,226		24,403
Other		392,735		342,962
	$	1,435,603	$	1,391,396

Changes in Accrued Product Warranties

In Thousands	2011			2010			2009
Beginning balance	$	63,665		$	62,366		$	67,490
Charges		(47,256	)		(42,907	)		(44,289	)
Provision charged to expense		37,489			44,652			35,691
Acquisitions and divestitures		3,262			690			1,929
Foreign currency translation		(239	)		(1,136	)		1,545
Transfer to liabilities held for sale		(1,718	)		—			—
Ending balance	$	55,203		$	63,665		$	62,366

XML

Income Taxes (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Changes in the amount of unrecognized tax benefits
Beginning balance	$ 717,711	$ 724,777	$ 799,647
Additions based on tax positions related to the current year	43,042	57,491	122,714
Additions for tax positions of prior years	74,178	56,034	122,241
Reductions for tax positions of prior years	(16,305)	(96,161)	(17,973)
Settlements	(376,598)		(383,058)
Foreign currency translation	(4,850)	(24,430)	81,206
Ending balance	$ 437,178	$ 717,711	$ 724,777

XML

Pension and Other Postretirement Benefits (Details 6) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	$ 2,053,911	$ 1,940,552	$ 1,750,904
Other Postretirement Benefits [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	297,133	293,776	259,753
Cash and equivalents [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	16,466	49,444
Cash and equivalents [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	16,466	49,444
Cash and equivalents [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Cash and equivalents [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Cash and equivalents [Member] | Other Postretirement Benefits [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	33,675	28,065
Cash and equivalents [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	33,675	28,065
Cash and equivalents [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Cash and equivalents [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Domestic equity securities [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	56,202	125,884
Domestic equity securities [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	56,202	125,884
Domestic equity securities [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Domestic equity securities [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Foreign equity securities [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	68,290	161,850
Foreign equity securities [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	68,290	161,850
Foreign equity securities [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Foreign equity securities [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Government securities [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	217,840	194,965
Government securities [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Government securities [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	217,840	193,940
Government securities [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0	1,025
Corporate debt securities [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	244,052	222,213
Corporate debt securities [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Corporate debt securities [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	240,032	219,546
Corporate debt securities [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	4,020	2,667
Mortgage-backed securities [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	16,418	9,621
Mortgage-backed securities [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Mortgage-backed securities [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	16,418	9,621
Mortgage-backed securities [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Investment contracts with insurance companies [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	69,285	119,976
Investment contracts with insurance companies [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Investment contracts with insurance companies [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0	119,976
Investment contracts with insurance companies [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	69,285
Mutual funds [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	344,891	300,716
Mutual funds [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	344,891	300,716
Mutual funds [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Mutual funds [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Collective trust funds [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	931,735	678,082
Collective trust funds [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Collective trust funds [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	931,735	678,082
Collective trust funds [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Partnerships private equity interests [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	86,869	77,587
Partnerships private equity interests [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Partnerships private equity interests [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Partnerships private equity interests [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	86,869	77,587
Plan Assets, Other [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	1,863	214
Plan Assets, Other [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Plan Assets, Other [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	916	204
Plan Assets, Other [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	947	10
Pension Plan Assets, Total [Member] | Pension [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	2,053,911	1,940,552
Pension Plan Assets, Total [Member] | Pension [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	485,849	637,894
Pension Plan Assets, Total [Member] | Pension [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	1,406,941	1,221,369
Pension Plan Assets, Total [Member] | Pension [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	161,121	81,289
Life insurance policies [Member] | Other Postretirement Benefits [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	263,458	265,711
Life insurance policies [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Life insurance policies [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Life insurance policies [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	263,458	265,711
Other Postretirement Benefit Plan Assets, Total [Member] | Other Postretirement Benefits [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	297,133	293,776
Other Postretirement Benefit Plan Assets, Total [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 1 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	33,675	28,065
Other Postretirement Benefit Plan Assets, Total [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 2 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	0
Other Postretirement Benefit Plan Assets, Total [Member] | Other Postretirement Benefits [Member] | Fair Value, Inputs, Level 3 [Member]
Defined benefit plan assets for plan benefits
Defined Benefit Plan, Fair Value of Plan Assets	$ 263,458	$ 265,711

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Trade Receivables (Tables)

12 Months Ended

Dec. 31, 2011

Trade Receivables [Abstract]

Changes in allowances for uncollectible accounts

In Thousands	2011			2010			2009
Beginning balance	$	(70,235	)	$	(76,459	)	$	(78,320	)
Provision charged to expense		(4,553	)		(4,390	)		(17,543	)
Write-offs, net of recoveries		10,159			12,513			24,799
Acquisitions and divestitures		(3,657	)		(2,866	)		(2,327	)
Foreign currency translation		1,641			957			(3,209	)
Transfer to assets held for sale		1,393			—			—
Other		27			10			141
Ending balance	$	(65,225	)	$	(70,235	)	$	(76,459	)

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Other Noncurrent Liabilities

12 Months Ended

Dec. 31, 2011

Other Noncurrent Liabilities [Abstract]

Other Noncurrent Liabilities

Other Noncurrent Liabilities at December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Pension benefit obligation	$	480,908	$	423,497
Postretirement benefit obligation		271,583		259,727
Other		615,080		397,559
	$	1,367,571	$	1,080,783

XML

Income Taxes (Details 5)	12 Months Ended
	Dec. 31, 2011
United States - Federal [Member]
Open tax years for the Company's major jurisdictions
Open tax years by major tax jurisdiction	2004-2011
United Kingdom [Member]
Open tax years for the Company's major jurisdictions
Open tax years by major tax jurisdiction	2000-2011
Germany [Member]
Open tax years for the Company's major jurisdictions
Open tax years by major tax jurisdiction	2006-2011
France [Member]
Open tax years for the Company's major jurisdictions
Open tax years by major tax jurisdiction	2004-2011
Australia [Member]
Open tax years for the Company's major jurisdictions
Open tax years by major tax jurisdiction	2002-2011

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Stockholders' Equity (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Shareholders Equity (Textual) [Abstract]
Preferred stock, par value	$ 0
Preferred stock, shares authorized	300,000
Common stock, par value	$ 0.01
Maximum shares authorized for buyback under stock repurchase program (2007 Program)	up to 3.0 billion
Maximum shares authorized for buyback under new stock repurchase program (2011 Program)	Additional 4.0 billion
Authorized repurchases remaining under the 2011 Program	$ 3,900,000,000
Cash dividend declared per share	$ 1.40	$ 1.30	$ 1.24
Cash dividend paid per share	$ 1.38	$ 1.27	$ 1.24
Tax on pension and other postretirement benefits actuarial gains (losses)	53,568,000	(2,978,000)	23,213,000
Tax on amortization of unrecognized pension and other postretirement benefits costs	(16,506,000)	(11,956,000)	(5,089,000)
Tax on pension and other postretirement benefits settlements, curtailments and other	0	0	(225,000)
Foreign exchange translation adjustment related to deduction of foreign exchange losses on intercompany loan	55,297,000
Cumulative translation adjustment income included in accumulated comprehensive income	773,367,000	913,888,000
Unrecognized pension and other postretirement benefits costs included in accumulated comprehensive income	549,144,000	486,733,000
2007 Program [Member]
Shareholders Equity (Textual) [Abstract]
Shares repurchased	16,278,856	8,084,724
Shares repurchased average price	$ 53.51	$ 43.29
2011 Program [Member]
Shareholders Equity (Textual) [Abstract]
Shares repurchased	1,827,253
Shares repurchased average price	$ 43.20
Pension [Member]
Shareholders Equity (Textual) [Abstract]
Estimated unrecognized benefit cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2012	52,638,000
Other Postretirement Benefits [Member]
Shareholders Equity (Textual) [Abstract]
Estimated unrecognized benefit cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2012	$ 3,337,000

XML

Other Income Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Other Income (Expense)
Interest income	$ 40,276	$ 24,065	$ 16,649
Investment income	17,486	20,808	4,944
Losses on foreign currency transactions	(4,272)	(16,664)	(21,284)
Other, net	349	(18,225)	(4,763)
Total	$ 53,839	$ 9,984	$ (4,454)

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Investments (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Investment in leases of equipment
Total investment in leases of equipment	$ 275,377	$ 281,067
Mobile telecommunications equipment [Member]
Investment in leases of equipment
Total investment in leases of equipment	170,834	178,946
Air traffic control equipment [Member]
Investment in leases of equipment
Total investment in leases of equipment	70,210	66,433
Aircraft [Member]
Investment in leases of equipment
Total investment in leases of equipment	34,074	35,391
Manufacturing [Member]
Investment in leases of equipment
Total investment in leases of equipment	$ 259	$ 297

XML

Other Noncurrent Liabilities (Tables)

12 Months Ended

Dec. 31, 2011

Other Noncurrent Liabilities [Abstract]

Other noncurrent liabilities

In Thousands	2011		2010
Pension benefit obligation	$	480,908	$	423,497
Postretirement benefit obligation		271,583		259,727
Other		615,080		397,559
	$	1,367,571	$	1,080,783

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Short-Term Debt (Details Textual) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Short-Term Debt (Textual) [Abstract]
Unused capacity under International debt facilities	329,000,000
Other borrowings [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	11.20%	6.90%
Commercial Paper [Member]
Short-term Debt [Line Items]
Weighted-average interest rate	0.10%

XML

Income Taxes (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Components of deferred income tax assets and liabilities
Assets	$ 1,862,447	$ 1,672,079
Liabilities	(984,485)	(949,857)
Goodwill And Intangible Assets [Member]
Components of deferred income tax assets and liabilities
Assets	355,412	386,662
Liabilities	(786,815)	(758,136)
Inventory Reserves, Capitalized Tax Cost and LIFO Inventory [Member]
Components of deferred income tax assets and liabilities
Assets	75,974	65,592
Liabilities	(12,999)	(11,961)
Investments [Member]
Components of deferred income tax assets and liabilities
Assets	36,017	33,849
Liabilities	(56,626)	(57,196)
Plant and Equipment [Member]
Components of deferred income tax assets and liabilities
Assets	27,665	37,017
Liabilities	(106,839)	(90,505)
Accrued Expenses and Reserves [Member]
Components of deferred income tax assets and liabilities
Assets	78,961	77,169
Liabilities	0	0
Employee Benefit Accruals [Member]
Components of deferred income tax assets and liabilities
Assets	350,829	335,668
Liabilities	0	0
Foreign Tax Credit Carryforwards [Member]
Components of deferred income tax assets and liabilities
Assets	11,806	94,100
Liabilities	0	0
Net Operating Loss Carryforwards [Member]
Components of deferred income tax assets and liabilities
Assets	622,607	528,915
Liabilities	0	0
Capital Loss Carryforwards [Member]
Components of deferred income tax assets and liabilities
Assets	34,499	34,564
Liabilities	0	0
Allowances for Uncollectible Accounts [Member]
Components of deferred income tax assets and liabilities
Assets	19,864	17,813
Liabilities	0	0
Pension Liabilities [Member]
Components of deferred income tax assets and liabilities
Assets	113,423	116,268
Liabilities	0	0
Deferred Intercompany Deductions [Member]
Components of deferred income tax assets and liabilities
Assets	460,423	240,233
Liabilities	0	0
Other [Member]
Components of deferred income tax assets and liabilities
Assets	123,554	115,794
Liabilities	(21,206)	(32,059)
Gross Deferred Income Tax Assets Liabilities [Member]
Components of deferred income tax assets and liabilities
Assets	2,311,034	2,083,644
Liabilities	(984,485)	(949,857)
Valuation Allowances [Member]
Components of deferred income tax assets and liabilities
Assets	(448,587)	(411,565)
Liabilities	$ 0	$ 0

XML

Plant and Equipment (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Plant and Equipment (Textual) [Abstract]
Depreciation included in income from discontinued operations	$ 2,164,000	$ 7,266,000	$ 9,030,000
Depreciation included in income from continuing operations	$ 334,331,000	$ 327,520,000	$ 367,196,000
Buildings and improvements [Member]
Range of useful lives used to depreciate plant and equipment
Plant and Equipment, Useful Life, Minimum	5
Plant and Equipment, Useful Life, Maximum	50
Machinery and equipment [Member]
Range of useful lives used to depreciate plant and equipment
Plant and Equipment, Useful Life, Minimum	3
Plant and Equipment, Useful Life, Maximum	12
Equipment leased to others [Member]
Range of useful lives used to depreciate plant and equipment
Useful life of equipment leased to others	Term of Lease

XML

Income Per Share from Continuing Operations (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income from Continuing Operations
Income from Continuing Operations	$ 2,017,014	$ 1,452,438	$ 968,638
Income per share from continuing operations -Basic:
Weighted-average common shares	491,439,000	500,772,000	500,177,000
Income per share from continuing operations -Basic	$ 4.10	$ 2.90	$ 1.94
Income per share from continuing operations -Diluted:
Weighted-average common shares	491,439,000	500,772,000	500,177,000
Effect of dilutive stock options and restricted stock units	3,207,000	2,578,000	1,744,000
Weighted-average common shares assuming dilution	494,646,000	503,350,000	501,921,000
Income per share from continuing operations -Diluted	$ 4.08	$ 2.89	$ 1.93
Income Per Share from Continuing Operations (Textual) [Abstract]
Antidilutive options outstanding	5,005,664	10,434,146	14,581,559

XML

Investments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Long-term Investments [Abstract]
Investments	$ 408,906	$ 440,760
Leases of equipment [Member]
Long-term Investments [Abstract]
Investments	275,377	281,067
Venture capital limited partnership [Member]
Long-term Investments [Abstract]
Investments	42,321	50,112
Properties held for sale [Member]
Long-term Investments [Abstract]
Investments	41,846	45,125
Property developments [Member]
Long-term Investments [Abstract]
Investments	26,081	25,454
Affordable housing limited partnerships [Member]
Long-term Investments [Abstract]
Investments	$ 23,281	$ 39,002

XML

Income Taxes (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	$ 2,035,747
2012 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	8,610
2013 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	8,116
2014 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	5,932
2015 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	6,945
2016 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	8,247
2017 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	10,813
2018 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	32,390
2019 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	76,834
2020 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	83,794
2021 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	18,728
2022 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	14,639
2023 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	12,518
2024 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	12,324
2025 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	11,065
2026 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	1,622
2027 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	4,928
2028 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	3,493
2029 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	4,490
2030 [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	5,476
Do Not Expire [Member]
Gross Net Operating Loss Carryforwards [Abstract]
Gross Net Operating Loss Carryforwards	$ 1,704,783

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Rental Expense (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Future minimum lease payments
2012	$ 156,760,000
2013	123,549,000
2014	92,642,000
2015	65,566,000
2016	50,948,000
2017 and future years	87,348,000
Total	576,813,000
Rental Expense (Textual) [Abstract]
Rental Expenses	$ 178,439,000	$ 165,171,000	$ 170,561,000

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Plant and Equipment

12 Months Ended

Dec. 31, 2011

Plant and Equipment [Abstract]

Plant and Equipment

Plant and Equipment are stated at cost less accumulated depreciation. Renewals and improvements that increase the useful life of plant and equipment are capitalized. Maintenance and repairs are charged to expense as incurred.

Depreciation was $334,331,000 in 2011, $327,520,000 in 2010 and $367,196,000 in 2009, and was reflected primarily in cost of revenues. Depreciation included in income from discontinued operations was $2,164,000 in 2011, $7,266,000 in 2010 and $9,030,000 in 2009. Depreciation of plant and equipment for financial reporting purposes is computed on an accelerated basis for U.S. businesses and on a straight-line basis for a majority of the international businesses.

The ranges of useful lives used to depreciate plant and equipment are as follows:

Buildings and improvements	5—50 years
Machinery and equipment	3—12 years
Equipment leased to others	Term of lease

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Investments (Tables)

12 Months Ended

Dec. 31, 2011

Investments Disclosure [Abstract]

Investments

In Thousands	2011		2010
Leases of equipment	$	275,377	$	281,067
Venture capital limited partnership		42,321		50,112
Properties held for sale		41,846		45,125
Property developments		26,081		25,454
Affordable housing limited partnerships		23,281		39,002
	$	408,906	$	440,760

Components of Investment in Leases of Equipment

In Thousands	2011			2010
Leveraged and direct financing leases:
Gross lease contracts receivable, net of nonrecourse debt service	$	130,284		$	145,687
Estimated residual value of leased assets		247,512			247,512
Unearned income		(109,834	)		(120,863	)
		267,962			272,336
Equipment under operating leases		7,415			8,731
	$	275,377		$	281,067

Investment in Leases of Equipment by Types of Equipment

In Thousands	2011		2010
Telecommunications	$	170,834	$	178,946
Air traffic control		70,210		66,433
Aircraft		34,074		35,391
Manufacturing		259		297
	$	275,377	$	281,067

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Rental Expense (Tables)

12 Months Ended

Dec. 31, 2011

Rental Expense [Abstract]

Future minimum lease payments

In Thousands
2012	$	156,760
2013		123,549
2014		92,642
2015		65,566
2016		50,948
2017 and future years		87,348
	$	576,813

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Income Taxes (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Income from continuing operations before income taxes
Domestic	$ 1,452,268	$ 1,216,749	$ 473,341
Foreign	1,140,446	872,089	740,579
Income from Continuing Operations Before Income Taxes	$ 2,592,714	$ 2,088,838	$ 1,213,920
Reconciliation between the U.S. Federal statutory tax rate and the effective tax rate
U.S. Federal statutory tax rate	35.00%	35.00%	35.00%
State income taxes, net of U.S. Federal tax benefit	1.10%	1.20%	0.80%
Nondeductible goodwill impairment			2.50%
Differences between U.S. Federal statutory and foreign tax rates	(2.70%)	(2.00%)	(3.30%)
Nontaxable foreign interest income	(3.60%)	(3.40%)	(4.60%)
Foreign tax credit related to a global legal structure reorganization			(7.00%)
German tax audit settlement			(4.70%)
Australian court decision	(6.40%)
Tax effect of foreign dividends	0.40%	0.50%	1.30%
Tax relief for U.S. manufacturers	(1.30%)	(1.30%)	(0.70%)
Other, net	(0.30%)	0.50%	0.90%
Effective tax rate	22.20%	30.50%	20.20%

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Other Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Summary of Other Assets
Cash surrender value of life insurance policies	$ 370,564	$ 362,401
Customer tooling	81,415	76,765
Prepaid pension assets	40,687	16,023
Noncurrent receivables	29,807	38,740
Other	112,582	122,818
Other Assets	$ 635,055	$ 616,747

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Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

Segment Information—The Company has 52 operating segments which are aggregated from the Company’s approximately 800 operations in 58 countries. These businesses are internally reported as 52 operating segments to senior management. The Company’s 52 operating segments have been aggregated into the following eight external reportable segments: Transportation; Power Systems & Electronics; Industrial Packaging; Food Equipment; Construction Products; Polymers & Fluids; Decorative Surfaces; and All Other.

Transportation—Transportation-related components, fasteners, fluids and polymers, as well as truck remanufacturing and related parts and service.

Power Systems & Electronics—Equipment and consumables associated with specialty power conversion, metallurgy and electronics.

Industrial Packaging—Steel, plastic and paper products and equipment used for bundling, shipping and protecting goods in transit.

Food Equipment—Commercial food equipment and related service.

Construction Products—Tools, fasteners and other products for construction applications.

Polymers & Fluids—Adhesives, sealants, lubrication and cutting fluids, and hygiene products.

Decorative Surfaces—Decorative surfacing materials for furniture, office and retail space, countertops, and other applications.

All Other—All other operating segments.

Segment information for 2011, 2010 and 2009 was as follows:

In Thousands	2011			2010			2009
Operating revenues:
Transportation	$	3,108,349		$	2,522,226		$	2,092,249
Power Systems & Electronics		2,872,161			2,409,204			2,004,402
Industrial Packaging		2,612,108			2,272,059			1,940,887
Food Equipment		1,982,187			1,857,051			1,862,950
Construction Products		1,958,370			1,753,485			1,547,365
Polymers & Fluids		1,364,004			1,106,025			980,305
Decorative Surfaces		1,083,157			987,692			971,900
All Other		2,889,699			2,598,475			2,238,604
Intersegment revenues		(83,452	)		(90,525	)		(65,666	)
	$	17,786,583		$	15,415,692		$	13,572,996
Operating income:
Transportation	$	474,592		$	369,454		$	155,373
Power Systems & Electronics		580,674			469,244			198,673
Industrial Packaging		273,342			231,303			95,128
Food Equipment		303,771			255,060			255,891
Construction Products		225,448			192,070			104,795
Polymers & Fluids		208,873			188,696			150,065
Decorative Surfaces		132,394			117,333			113,227
All Other		531,914			430,857			309,811
	$	2,731,008		$	2,254,017		$	1,382,963
Depreciation and amortization and impairment of goodwill and intangible assets:
Transportation	$	125,988		$	97,784		$	114,865
Power Systems & Electronics		87,346			78,523			171,065
Industrial Packaging		72,244			69,513			71,564
Food Equipment		49,655			44,446			42,472
Construction Products		58,084			59,496			75,007
Polymers & Fluids		48,889			38,942			40,174
Decorative Surfaces		21,946			20,353			23,958
All Other		129,857			139,729			145,736
	$	594,009		$	548,786		$	684,841
Plant and equipment additions:
Transportation	$	97,735		$	70,743		$	50,006
Power Systems & Electronics		42,623			25,849			24,776
Industrial Packaging		27,969			34,324			27,151
Food Equipment		35,859			30,847			39,039
Construction Products		37,332			27,823			31,280
Polymers & Fluids		22,053			13,283			9,417
Decorative Surfaces		22,590			23,490			12,671
All Other		67,247			61,400			61,399
	$	353,408		$	287,759		$	255,739
Identifiable assets:
Transportation	$	2,657,457		$	1,946,633
Power Systems & Electronics		2,407,644			1,903,321
Industrial Packaging		1,933,782			1,889,068
Food Equipment		1,022,380			1,030,913
Construction Products		1,504,850			1,488,119
Polymers & Fluids		1,411,665			1,336,996
Decorative Surfaces		399,915			386,398
All Other		2,644,120			2,995,165
Corporate		3,615,377			3,435,698
Assets held for sale		386,324			—
	$	17,983,514		$	16,412,311

Identifiable assets by segment are those assets that are specifically used in that segment. Corporate assets are principally cash and equivalents, investments and other general corporate assets. For 2010, a reclassification has been made to identifiable assets by segment to correct the allocation of $743,244,000 of deferred income taxes between Corporate and the Company’s segments.

Enterprise-wide information for 2011, 2010 and 2009 was as follows:

In Thousands	2011		2010		2009
Operating Revenues by Geographic Region:
United States	$	7,379,219	$	6,461,993	$	5,708,035
Europe		5,491,704		4,806,027		4,507,939
Asia		1,931,607		1,697,969		1,241,173
Other North America		1,161,179		1,018,034		821,409
Australia/New Zealand		884,660		780,416		699,945
Other		938,214		651,253		594,495
	$	17,786,583	$	15,415,692	$	13,572,996

Operating revenues by geographic region are based on the customers’ location.

The Company has thousands of product lines within its businesses; therefore, providing operating revenues by product line is not practicable.

Total noncurrent assets excluding deferred tax assets and financial instruments were $10,159,000,000 and $9,456,000,000 at December 31, 2011 and 2010, respectively. Of these amounts, approximately 52% and 49% was attributed to U.S. operations for 2011 and 2010, respectively. The remaining amounts were attributed to the Company’s foreign operations, with no single country accounting for a significant portion.

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Other Assets (Tables)

12 Months Ended

Dec. 31, 2011

Prepaid Expenses and Other Current Assets and Other Assets [Abstract]

Summary of Other assets

In Thousands	2011		2010
Cash surrender value of life insurance policies	$	370,564	$	362,401
Customer tooling		81,415		76,765
Prepaid pension assets		40,687		16,023
Noncurrent receivables		29,807		38,740
Other		112,582		122,818
	$	635,055	$	616,747

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Acquisitions (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Y	Dec. 31, 2010 Y	Dec. 31, 2009 Y
Premium over tangible net assets recorded for acquisitions based on purchase price allocations
Goodwill, Premium recorded	$ 475,634	$ 219,222	$ 95,936
Amortizable intangible assets:
Weighted-average life	13.1	12.1	10.9
Premium recorded	742,924	240,687	114,010
Indefinite-lived intangible assets:
Total premium recorded	1,224,039	459,909	222,200
Trademarks and brands [Member]
Indefinite-lived intangible assets:
Indefinite lived intangible assets, premium recorded	5,481		12,254
Customer lists and relationships [Member]
Amortizable intangible assets:
Weighted-average life	12.2	11.8	10.7
Premium recorded	362,387	120,845	48,152
Patents and proprietary technology [Member]
Amortizable intangible assets:
Weighted-average life	9.6	10.9	12.3
Premium recorded	98,117	31,986	30,421
Trademarks and brands [Member]
Amortizable intangible assets:
Weighted-average life	17.3	14.9	14.0
Premium recorded	245,295	70,667	19,732
Noncompete agreements [Member]
Amortizable intangible assets:
Weighted-average life	5.0	5.3	6.2
Premium recorded	26,818	4,617	8,859
Other Intangible Assets [Member]
Amortizable intangible assets:
Weighted-average life	1.8	4.9	4.4
Premium recorded	$ 10,307	$ 12,572	$ 6,846

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Long-Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Long-Term Debt
Long-Term Debt including current maturities	$ 3,750,541	$ 2,794,303
Current maturities	(262,343)	(252,216)
Long-Term Debt excluding current maturities	3,488,198	2,542,087
6.55% preferred debt securities due December 31, 2011 [Member]
Long-Term Debt
Long-Term Debt including current maturities	250,000	249,949
5.15% notes due April 1, 2014 [Member]
Long-Term Debt
Long-Term Debt including current maturities	799,693	799,567
5.25% Euro notes due October 1, 2014 [Member]
Long-Term Debt
Long-Term Debt including current maturities	971,465	1,002,016
6.25% notes due April 1, 2019 [Member]
Long-Term Debt
Long-Term Debt including current maturities	699,912	699,903
4.88% notes due thru December 31, 2020 [Member]
Long-Term Debt
Long-Term Debt including current maturities	21,954	21,954
3.375% notes due September 15, 2021 [Member]
Long-Term Debt
Long-Term Debt including current maturities	348,476	0
4.875% notes due September 15, 2041 [Member]
Long-Term Debt
Long-Term Debt including current maturities	640,551	0
Other borrowings [Member]
Long-Term Debt
Long-Term Debt including current maturities	$ 18,490	$ 20,914

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Nature of Operations (Details)	12 Months Ended
	Dec. 31, 2011 Country
Nature of Operations [Abstract]
Number of countries with ITW operations	58

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Inventories (Tables)

12 Months Ended

Dec. 31, 2011

Inventories [Abstract]

Inventories

In Thousands	2011		2010
Raw material	$	596,129	$	553,089
Work-in-process		155,896		165,292
Finished goods		963,834		916,475
	$	1,715,859	$	1,634,856

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Significant Accounting Policies

Significant accounting principles and policies of the Company are in italics. Certain reclassifications of prior years’ data have been made to conform to current year reporting.

The preparation of the Company’s financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes to financial statements. Actual results could differ from those estimates. The significant estimates included in the preparation of the financial statements are related to inventories, trade receivables, plant and equipment, income taxes, goodwill and intangible assets, product liability matters, litigation, product warranties, pensions, other postretirement benefits, environmental matters and stock options.

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Stockholders' Equity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Common Stock [Member]	Dec. 31, 2010 Common Stock [Member]	Dec. 31, 2009 Common Stock [Member]	Dec. 31, 2011 Additional Paid-in Capital [Member]	Dec. 31, 2010 Additional Paid-in Capital [Member]	Dec. 31, 2009 Additional Paid-in Capital [Member]	Dec. 31, 2011 Common Stock Held in Treasury [Member]	Dec. 31, 2010 Common Stock Held in Treasury [Member]	Dec. 31, 2008 Common Stock Held in Treasury [Member]
Summary of Common Stock, Additional Paid in Capital and Common Stock Held in Treasury
Beginning Balance, shares		538,505,782	535,010,960	531,789,730				(40,761,481)	(32,674,759)	(32,674,759)
Beginning Balance, amount		$ 5,385	$ 5,350	$ 5,318	$ 460,806	$ 270,985	$ 105,497	$ (1,740,682)	$ (1,390,594)	$ (1,390,594)
Shares issued for stock options, shares	4,055,853,000	3,932,861	3,445,891	3,204,212
Shares issued for stock options, amount		39	34	32	151,431	113,592	101,581
Shares issued for stock compensation and vesting of restricted stock, shares		61,792	48,931	17,018				(24,796)	(1,998)
Shares issued for stock compensation and vesting of restricted stock, amount		1	1		1,629	1,217	120	(1,514)	(88)
Stock compensation expense					56,374	56,443	51,858
Noncontrolling interest						(287)	(2,591)
Tax benefits related to stock options					12,594	15,619	11,416
Tax benefits related to defined contribution plans					3,321	3,237	3,104
Repurchases of common stock, shares								(18,106,109)	(8,084,724)
Repurchases of common stock, amount								(950,000)	(350,000)
Ending Balance, shares		542,500,435	538,505,782	535,010,960				(58,892,386)	(40,761,481)	(32,674,759)
Ending Balance, amount		$ 5,425	$ 5,385	$ 5,350	$ 686,155	$ 460,806	$ 270,985	$ (2,692,196)	$ (1,740,682)	$ (1,390,594)
Authorized Ending Balance		700,000,000

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International Reporting Lag (Details) (USD $)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Impact of elimination of one month reporting lag for international operations outside of North America
Operating revenues	$ (21,796,000)	$ 91,574,000
Income from continuing operations	(24,877,000)	26,023,000
Income from continuing operations per diluted share	$ (0.04)	$ 0.05
Net income	(24,241,000)	25,688,000
Net income per diluted share	$ (0.04)	$ 0.05
Financial Statements (Details Textual) [Abstract]
After-tax increase to income reinvested in the business resulting from change in accounting principle	$ 7,274,000

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Other Income (Expense) (Tables)

12 Months Ended

Dec. 31, 2011

Other Income (Expense) [Abstract]

Other Income (Expense)

In Thousands	2011			2010			2009
Interest income	$	40,276		$	24,065		$	16,649
Investment income		17,486			20,808			4,944
Losses on foreign currency transactions		(4,272	)		(16,664	)		(21,284	)
Other, net		349			(18,225	)		(4,763	)
	$	53,839		$	9,984		$	(4,454	)

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Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2011

Pension and Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits – The Company has both funded and unfunded defined benefit pension and other postretirement benefit plans, predominately in the U.S. covering a majority of U.S. employees.

The U.S. primary pension plan provides benefits based on years of service and final average salary. The U.S. primary postretirement healthcare plan is contributory with the participants’ contributions adjusted annually. The U.S. primary postretirement life insurance plan is noncontributory.

Beginning January 1, 2007, the U.S. primary pension and other postretirement benefit plans were closed to new participants. Newly hired employees and employees from acquired businesses that are not participating in these plans are eligible for additional Company contributions under the existing U.S. primary defined contribution retirement plans. The Company’s expense related to defined contribution plans was $77,700,000 in 2011, $69,300,000 in 2010 and $66,000,000 in 2009.

In addition to the U.S. plans, the Company also has defined benefit pension plans in certain other countries, mainly the United Kingdom, Switzerland, Germany and Canada.

Summarized information regarding the Company’s significant defined benefit pension and other postretirement benefit plans related to both continuing and discontinued operations is as follows:

	Pension									Other Postretirement Benefits
In Thousands	2011			2010			2009			2011			2010			2009
Components of net periodic benefit cost:
Service cost	$	94,100		$	94,104		$	97,950		$	13,430		$	13,941		$	12,567
Interest cost		116,331			110,484			120,109			29,532			29,995			30,506
Expected return on plan assets		(157,848	)		(149,822	)		(154,254	)		(20,564	)		(18,183	)		(13,612	)
Amortization of actuarial loss		39,359			26,092			8,436			415			40			40
Amortization of prior service cost (income)		777			736			(1,585	)		6,448			6,445			6,423
Amortization of transition amount		16			47			164			—			—			—
Settlement/curtailment loss (income)		—			515			(11,947	)		—			—			—
	$	92,735		$	82,156		$	58,873		$	29,261		$	32,238		$	35,924
Net periodic benefit cost was included in the statement of income as follows:
	Pension									Other Postretirement Benefits
In Thousands	2011			2010			2009			2011			2010			2009
Income from continuing operations	$	89,277		$	79,980		$	56,466		$	28,916		$	31,860		$	35,560
Income from discontinued operations		3,458			2,176			2,407			345			378			364
	$	92,735		$	82,156		$	58,873		$	29,261		$	32,238		$	35,924

	Pension						Other Postretirement Benefits
In Thousands	2011			2010			2011			2010
Change in benefit obligation:
Benefit obligation at January 1	$	2,300,740		$	2,176,568		$	559,423		$	533,834
Service cost		94,100			94,104			13,430			13,941
Interest cost		116,331			110,484			29,532			29,995
Plan participants’ contributions		8,100			4,642			15,273			15,241
Actuarial loss		78,634			31,830			251			10,824
Acquisitions		15,882			30,845			—			—
Benefits paid		(142,409	)		(137,753	)		(47,946	)		(48,465	)
Medicare subsidy received		—			—			3,136			4,053
Liabilities from (to) other immaterial plans		2,409			6,817			(4,074	)		—
Settlement/curtailment loss		—			515			—			—
Foreign currency translation		(9,169	)		(17,312	)		—			—
Benefit obligation at December 31	$	2,464,618		$	2,300,740		$	569,025		$	559,423

Change in plan assets:
Fair value of plan assets at January 1	$	1,940,552		$	1,750,904		$	293,776		$	259,753
Actual return on plan assets		108,495			187,688			3,357			34,023
Company contributions		130,535			73,720			32,673			33,224
Plan participants’ contributions		8,100			4,642			15,273			15,241
Acquisitions		15,344			26,115			—			—
Benefits paid		(142,409	)		(137,753	)		(47,946	)		(48,465	)
Assets from other immaterial plans		—			44,860			—			—
Foreign currency translation		(6,706	)		(9,624	)		—			—
Fair value of plan assets at December 31	$	2,053,911		$	1,940,552		$	297,133		$	293,776
Funded status	$	(410,707	)	$	(360,188	)	$	(271,892	)	$	(265,647	)
Other immaterial plans		(63,655	)		(62,664	)		(7,458	)		(3,105	)
Net liability at December 31	$	(474,362	)	$	(422,852	)	$	(279,350	)	$	(268,752	)
The amounts recognized in the statement of financial position as of December 31 consist of:
Assets held for sale	$	75		$	—		$	—		$	—
Other assets		40,687			16,023			—			—
Accrued expenses		(21,459	)		(15,378	)		(7,767	)		(9,025	)
Liabilities held for sale		(12,757	)		—			—			—
Other noncurrent liabilities		(480,908	)		(423,497	)		(271,583	)		(259,727	)
Net liability at end of year	$	(474,362	)	$	(422,852	)	$	(279,350	)	$	(268,752	)
The pre-tax amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss (gain)	$	848,368		$	758,901		$	15,406		$	(1,840	)
Prior service cost		3,981			4,758			4,844			11,292
Net transition obligation		52			68			—			—
	$	852,401		$	763,727		$	20,250		$	9,452
Accumulated benefit obligation	$	2,193,199		$	2,084,663
Plans with accumulated benefit obligation in excess of plan assets as of December 31:
Projected benefit obligation	$	1,837,761		$	1,722,577
Accumulated benefit obligation	$	1,665,360		$	1,582,158
Fair value of plan assets	$	1,413,557		$	1,379,466

Assumptions

The weighted-average assumptions used in the valuations of pension and other postretirement benefits were as follows:

	Pension									Other Postretirement Benefits
	2011			2010			2009			2011			2010			2009
Assumptions used to determine benefit obligations at December 31:
Discount rate		4.64	%		5.05	%		5.57	%		4.95	%		5.45	%		5.80	%
Rate of compensation increases		3.86			3.94			4.18			—			—			—
Assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate		5.05	%		5.57	%		6.59	%		5.45	%		5.80	%		6.50	%
Expected return on plan assets		7.39			7.63			8.28			7.00			7.00			7.00
Rate of compensation increases		3.94			4.18			4.19			—			—			—

The expected long-term rates of return for pension and other postretirement benefit plans were developed using historical asset class returns while factoring in current market conditions such as inflation, interest rates and asset class performance.

Assumed health care cost trend rates have an effect on the amounts reported for the postretirement health care benefit plans. The assumed health care cost trend rates used to determine the postretirement benefit obligation at December 31 were as follows:

	2011			2010			2009
Health care cost trend rate assumed for the next year		8.50	%		8.71	%		8.21	%
Ultimate trend rate		5.00	%		5.00	%		5.00	%
Year the rate reaches the ultimate trend rate		2019			2020			2020

A one-percentage-point change in assumed health care cost trend rates would have the following impact:

In Thousands	1-Percentage-Point Increase		1-Percentage-Point Decrease
Change in service cost and interest cost for 2011	$	964	$	(1,406	)
Change in postretirement benefit obligation at December 31, 2011	$	14,556	$	(17,480	)

Plan Assets

The Company’s overall investment strategy for the assets in the pension funds is to achieve a balance between the goals of growing plan assets and keeping risk at a reasonable level over a long-term investment horizon. In order to reduce unnecessary risk, the pension funds are diversified across several asset classes, securities and investment managers. The target allocations for plan assets are 50% to 65% equity securities, 30% to 45% debt securities, 0% to 2% real estate and 0% to 10% in other types of investments. The Company does not use derivatives for the purpose of speculation, leverage, circumventing investment guidelines or taking risks that are inconsistent with specified guidelines.

The assets in the Company’s postretirement health care plan are primarily invested in life insurance policies. The Company’s overall investment strategy for the assets in the postretirement health care fund is to invest in assets that provide a reasonable tax exempt rate of return while preserving capital.

The following tables present the fair value of the Company’s pension and other postretirement benefit plan assets at December 31, 2011 and 2010, by asset category and valuation methodology. Level 1 assets are valued using unadjusted quoted prices for identical assets in active markets. Level 2 assets are valued using quoted prices or other observable inputs for similar assets. Level 3 assets are valued using unobservable inputs, but reflect the assumptions market participants would be expected to use in pricing the assets. Each financial instrument’s categorization is based on the lowest level of input that is significant to the fair value measurement.

	2011
In Thousands	Level 1		Level 2		Level 3		Total
Pension Plan Assets:
Cash and equivalents	$	16,466	$	—	$	—	$	16,466
Equity securities:
Domestic		56,202		—		—		56,202
Foreign		68,290		—		—		68,290
Fixed income securities:
Government securities		—		217,840		—		217,840
Corporate debt securities		—		240,032		4,020		244,052
Mortgage-backed securities		—		16,418		—		16,418
Investment contracts with insurance companies		—		—		69,285		69,285
Commingled funds:
Mutual funds		344,891		—		—		344,891
Collective trust funds		—		931,735		—		931,735
Partnerships/private equity interests		—		—		86,869		86,869
Other		—		916		947		1,863
	$	485,849	$	1,406,941	$	161,121	$	2,053,911
Other Postretirement Benefit Plan Assets:
Cash and equivalents	$	33,675	$	—	$	—	$	33,675
Life insurance policies		—		—		263,458		263,458
	$	33,675	$	—	$	263,458	$	297,133

	2010
In Thousands	Level 1		Level 2		Level 3		Total
Pension Plan Assets:
Cash and equivalents	$	49,444	$	—	$	—	$	49,444
Equity securities:
Domestic		125,884		—		—		125,884
Foreign		161,850		—		—		161,850
Fixed income securities:
Government securities		—		193,940		1,025		194,965
Corporate debt securities		—		219,546		2,667		222,213
Mortgage-backed securities		—		9,621		—		9,621
Investment contracts with insurance companies		—		119,976		—		119,976
Commingled funds:
Mutual funds		300,716		—		—		300,716
Collective trust funds		—		678,082		—		678,082
Partnerships/private equity interests		—		—		77,587		77,587
Other		—		204		10		214
	$	637,894	$	1,221,369	$	81,289	$	1,940,552
Other Postretirement Benefit Plan Assets:
Cash and equivalents	$	28,065	$	—	$	—	$	28,065
Life insurance policies		—		—		265,711		265,711
	$	28,065	$	—	$	265,711	$	293,776

Cash and equivalents include cash on hand and investments with maturities of 90 days or less and are valued at cost, which approximates fair value. Equity securities primarily include common and preferred equity securities covering a wide range of industries and geographies which are traded in active markets and are valued based on quoted prices. Fixed income securities primarily consist of U.S. and foreign government bills, notes and bonds, corporate debt securities, asset-backed securities and investment contracts. The majority of the assets in this category are valued by evaluating bid prices provided by independent financial data services. For securities where market data is not readily available, unobservable market data is used to value the security. Commingled funds include investments in public and private pooled funds. Mutual funds are traded in active markets and are valued based on quoted prices. The underlying investments include small-cap equity, international equity and long- and short-term fixed income instruments. Collective trust funds are private funds that are valued at the net asset value which is determined based on the fair value of the underlying investments. The underlying investments include both passively and actively managed U.S. and foreign large- and mid-cap equity funds and short-term investment funds. Partnerships/private equity interests are investments in partnerships where the benefit plan is a limited partner. The investments are valued by the investment managers on a periodic basis using pricing models that use market, income and cost valuation methods. Life insurance policies are used to fund other postretirement benefits in order to obtain favorable tax treatment and are valued based on the cash surrender value of the underlying policies.

The following table presents a reconciliation of Level 3 assets measured at fair value for pension and other postretirement benefit plans during the years ended December 31, 2011 and 2010:

In Thousands	Government Securities			Corporate Debt Securities			Mortgage- backed Securities			Investment Contracts with Insurance Companies		Partnerships/ Private  Equity Interests			Life Insurance Policies			Other			Total
Balance Dec 31, 2009	$	1,285		$	2,092		$	3,372		$	—	$	68,847		$	233,042		$	2,226		$	310,864
2010 Activity:
Realized gains (losses)		100			(452	)		(947	)		—		3,547			—			(17	)		2,231
Unrealized gains (losses)		(49	)		624			844			—		(538	)		32,669			319			33,869
Purchases and sales		(311	)		(1,137	)		(3,269	)		—		5,731			—			(2,518	)		(1,504	)
Transfers		—			1,540			—			—		—			—			—			1,540
Balance Dec 31, 2010		1,025			2,667			—			—		77,587			265,711			10			347,000
2011 Activity:
Realized gains		—			—			—			—		4,088			—			4			4,092
Unrealized gains (losses)		—			118			—			5,794		4,398			(2,253	)		(221	)		7,836
Purchases and sales		—			2,000			—			2,192		796			—			909			5,897
Transfers		(1,025	)		(765	)		—			61,299		—			—			245			59,754
Balance Dec 31, 2011	$	—		$	4,020		$	—		$	69,285	$	86,869		$	263,458		$	947		$	424,579

Cash Flows

The Company generally funds its pension and other postretirement benefit plans as required by law or to the extent such contributions are tax deductible. The Company expects to contribute approximately $165,000,000 to its pension plans and $39,000,000 to its other postretirement benefit plans in 2012.

The Company’s portion of the benefit payments that are expected to be paid during the years ending December 31 is as follows:

			Other
			Postretirement
In Thousands	Pension		Benefits
2012	$	181,603	$	38,849
2013		169,423		39,278
2014		174,453		39,866
2015		181,405		40,558
2016		187,856		41,338
Years 2017-2021		1,010,684		218,668

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Other Assets

12 Months Ended

Dec. 31, 2011

Prepaid Expenses and Other Current Assets and Other Assets [Abstract]

Other Assets

Other Assets as of December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Cash surrender value of life insurance policies	$	370,564	$	362,401
Customer tooling		81,415		76,765
Prepaid pension assets		40,687		16,023
Noncurrent receivables		29,807		38,740
Other		112,582		122,818
	$	635,055	$	616,747

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Pension and Other Postretirement Benefits (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Pension [Member]
Change in plan assets:
Fair value of plan assets at January 1	$ 1,940,552	$ 1,750,904
Actual return on plan assets	108,495	187,688
Company contributions	130,535	73,720
Plan participants' contributions	8,100	4,642
Acquisitions	15,344	26,115
Benefits paid	(142,409)	(137,753)
Assets from other immaterial plans	0	44,860
Foreign currency translation	(6,706)	(9,624)
Fair value of plan assets at December 31	2,053,911	1,940,552
Other Postretirement Benefits [Member]
Change in plan assets:
Fair value of plan assets at January 1	293,776	259,753
Actual return on plan assets	3,357	34,023
Company contributions	32,673	33,224
Plan participants' contributions	15,273	15,241
Acquisitions	0
Benefits paid	(47,946)	(48,465)
Assets from other immaterial plans	0
Foreign currency translation	0
Fair value of plan assets at December 31	$ 297,133	$ 293,776

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2011

Short-Term Debt and Long-Term Debt [Abstract]

Long-Term Debt

In Thousands	2011			2010
6.55% preferred debt securities due December 31, 2011	$	250,000		$	249,949
5.15% notes due April 1, 2014		799,693			799,567
5.25% Euro notes due October 1, 2014		971,465			1,002,016
6.25% notes due April 1, 2019		699,912			699,903
4.88% notes due thru December 31, 2020		21,954			21,954
3.375% notes due September 15, 2021		348,476			—
4.875% notes due September 15, 2041		640,551			—
Other borrowings		18,490			20,914
		3,750,541			2,794,303
Current maturities		(262,343	)		(252,216	)
	$	3,488,198		$	2,542,087

Fair value and carrying value of long-term debt, including current maturities

	2011				2010
In Thousands	Fair Value		Carrying Value		Fair Value		Carrying Value
6.55% preferred debt securities due December 31, 2011	$	250,000	$	250,000	$	263,750	$	249,949
5.15% notes due April 1, 2014		876,800		799,693		882,480		799,567
5.25% Euro notes due October 1, 2014		1,064,218		971,465		1,098,412		1,002,016
6.25% notes due April 1, 2019		871,668		699,912		816,200		699,903
4.88% notes due thru December 31, 2020		24,362		21,954		23,471		21,954
3.375% notes due September 15, 2021		367,574		348,476		—		—
4.875% notes due September 15, 2041		760,533		640,551		—		—
Other borrowings		18,490		18,490		20,914		20,914
	$	4,233,645	$	3,750,541	$	3,105,227	$	2,794,303

Scheduled maturities of long-term debt

In Thousands
2013	$	10,077
2014		1,776,211
2015		2,861
2016		675
2017 and future years		1,698,374
	$	3,488,198

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Components of provision for income taxes

In Thousands	2011			2010			2009
U.S. Federal income taxes:
Current	$	514,798		$	396,880		$	226,615
Deferred		(33,733	)		(45,630	)		(21,213	)
Benefit of net operating loss and foreign tax credits carryforwards		—			—			(85,898	)
		481,065			351,250			119,504
Foreign income taxes:
Current		147,425			266,384			334,227
Deferred		(82,069	)		(19,615	)		(189,995	)
Benefit of net operating loss carryforwards		(4,237	)		(3,134	)		(30,820	)
		61,119			243,635			113,412
State income taxes:
Current		65,122			51,530			38,836
Deferred		(31,357	)		(2,837	)		(22,527	)
Benefit of net operating loss carryforwards		(249	)		(7,178	)		(3,943	)
		33,516			41,515			12,366
	$	575,700		$	636,400		$	245,282

Income from continuing operations before income taxes

In Thousands	2011		2010		2009
Domestic	$	1,452,268	$	1,216,749	$	473,341
Foreign		1,140,446		872,089		740,579
	$	2,592,714	$	2,088,838	$	1,213,920

Reconciliation between the U.S. Federal statutory tax rate and the effective tax rate

	2011			2010			2009
U.S. Federal statutory tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of U.S. Federal tax benefit		1.1			1.2			0.8
Nondeductible goodwill impairment		—			—			2.5
Differences between U.S. Federal statutory and foreign tax rates		(2.7	)		(2.0	)		(3.3	)
Nontaxable foreign interest income		(3.6	)		(3.4	)		(4.6	)
Foreign tax credit related to a global legal structure reorganization		—			—			(7.0	)
German tax audit settlement		—			—			(4.7	)
Australian court decision		(6.4	)		—			—
Tax effect of foreign dividends		0.4			0.5			1.3
Tax relief for U.S. manufacturers		(1.3	)		(1.3	)		(0.7	)
Other, net		(0.3	)		0.5			0.9
Effective tax rate		22.2	%		30.5	%		20.2	%

Components of deferred income tax assets and liabilities

	2011						2010
In Thousands	Asset			Liability			Asset			Liability
Goodwill and intangible assets	$	355,412		$	(786,815	)	$	386,662		$	(758,136	)
Inventory reserves, capitalized tax cost and LIFO inventory		75,974			(12,999	)		65,592			(11,961	)
Investments		36,017			(56,626	)		33,849			(57,196	)
Plant and equipment		27,665			(106,839	)		37,017			(90,505	)
Accrued expenses and reserves		78,961			—			77,169			—
Employee benefit accruals		350,829			—			335,668			—
Foreign tax credit carryforwards		11,806			—			94,100			—
Net operating loss carryforwards		622,607			—			528,915			—
Capital loss carryforwards		34,499			—			34,564			—
Allowances for uncollectible accounts		19,864			—			17,813			—
Pension liabilities		113,423			—			116,268			—
Deferred intercompany deductions		460,423			—			240,233			—
Other		123,554			(21,206	)		115,794			(32,059	)
Gross deferred income tax assets (liabilities)		2,311,034			(984,485	)		2,083,644			(949,857	)
Valuation allowances		(448,587	)		—			(411,565	)		—
Total deferred income tax assets (liabilities)	$	1,862,447		$	(984,485	)	$	1,672,079		$	(949,857	)

Net operating loss carryforwards

In Thousands	Gross Net Operating Loss Carryforwards
2012	$	8,610
2013		8,116
2014		5,932
2015		6,945
2016		8,247
2017		10,813
2018		32,390
2019		76,834
2020		83,794
2021		18,728
2022		14,639
2023		12,518
2024		12,324
2025		11,065
2026		1,622
2027		4,928
2028		3,493
2029		4,490
2030		5,476
Do not expire		1,704,783
	$	2,035,747

Changes in amount of unrecognized tax benefits

In Thousands	2011			2010			2009
Beginning balance	$	717,711		$	724,777		$	799,647
Additions based on tax positions related to the current year		43,042			57,491			122,714
Additions for tax positions of prior years		74,178			56,034			122,241
Reductions for tax positions of prior years		(16,305	)		(96,161	)		(17,973	)
Settlements		(376,598	)		—			(383,058	)
Foreign currency translation		(4,850	)		(24,430	)		81,206
Ending balance	$	437,178		$	717,711		$	724,777

Open Tax Years For Company's Major Jurisdictions

Jurisdiction	Open Tax Years
United States – Federal	2004-2011
United Kingdom	2000-2011
Germany	2006-2011
France	2004-2011
Australia	2002-2011

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Short-Term Debt

12 Months Ended

Dec. 31, 2011

Short-Term Debt and Long-Term Debt [Abstract]

Short-Term Debt

Short-Term Debt as of December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Bank overdrafts	$	37,706	$	57,463
Commercial paper		192,495		—
Current maturities of long-term debt		262,343		252,216
Other borrowings		9,519		16,557
	$	502,063	$	326,236

The Company has committed credit facilities that support the issuance of commercial paper. See the Long-Term Debt note for further discussion.

The weighted-average interest rate on commercial paper was 0.1% at December 31, 2011. Commercial paper is stated at cost, which approximates fair value.

The weighted-average interest rate on other borrowings was 11.2% at December 31, 2011 and 6.9% at December 31, 2010.

As of December 31, 2011, the Company had unused capacity of approximately $329,000,000 under international debt facilities.

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Accrued Expenses

12 Months Ended

Dec. 31, 2011

Accrued Expenses [Abstract]

Accrued Expenses

Accrued Expenses as of December 31, 2011 and 2010 consisted of accruals for:

In Thousands	2011		2010
Compensation and employee benefits	$	550,955	$	558,340
Deferred revenue and customer deposits		245,465		264,472
Rebates		162,019		137,554
Warranties		55,203		63,665
Current portion of pension and other postretirement benefit obligations		29,226		24,403
Other		392,735		342,962
	$	1,435,603	$	1,391,396

The Company accrues for product warranties based on historical experience. The changes in accrued warranties during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Beginning balance	$	63,665		$	62,366		$	67,490
Charges		(47,256	)		(42,907	)		(44,289	)
Provision charged to expense		37,489			44,652			35,691
Acquisitions and divestitures		3,262			690			1,929
Foreign currency translation		(239	)		(1,136	)		1,545
Transfer to liabilities held for sale		(1,718	)		—			—
Ending balance	$	55,203		$	63,665		$	62,366

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Nature of Operations

12 Months Ended

Dec. 31, 2011

Nature of Operations and International Reporting Lag [Abstract]

Nature of Operations

Illinois Tool Works Inc. (the “Company” or “ITW”) is a multinational manufacturer of a diversified range of industrial products and equipment with operations in 58 countries. The Company primarily serves the construction, general industrial, food institutional/restaurant, automotive OEM/tiers, automotive aftermarket, and food and beverage markets.

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Long-Term Debt

12 Months Ended

Dec. 31, 2011

Short-Term Debt and Long-Term Debt [Abstract]

Long-Term Debt

Long-Term Debt at December 31, 2011 and 2010 consisted of the following:

In Thousands	2011			2010
6.55% preferred debt securities due December 31, 2011	$	250,000		$	249,949
5.15% notes due April 1, 2014		799,693			799,567
5.25% Euro notes due October 1, 2014		971,465			1,002,016
6.25% notes due April 1, 2019		699,912			699,903
4.88% notes due thru December 31, 2020		21,954			21,954
3.375% notes due September 15, 2021		348,476			—
4.875% notes due September 15, 2041		640,551			—
Other borrowings		18,490			20,914
		3,750,541			2,794,303
Current maturities		(262,343	)		(252,216	)
	$	3,488,198		$	2,542,087

In 2002, a subsidiary of the Company issued $250,000,000 of 6.55% preferred debt securities at 99.849% of face value. The effective interest rate of the preferred debt securities is 6.7%. These preferred debt securities were due and fully paid on the first business day in 2012.

In 2005, the Company issued $53,735,000 of 4.88% notes at 100% of face value.

In 2007, the Company, through a wholly-owned European subsidiary, issued €750,000,000 of 5.25% Euro notes due October 1, 2014 at 99.874% of face value. The effective interest rate of the notes is 5.3%.

In 2009, the Company issued $800,000,000 of 5.15% redeemable notes due April 1, 2014 at 99.92% of face value and $700,000,000 of 6.25% redeemable notes due April 1, 2019 at 99.98% of face value. The effective interest rates of the notes are 5.2% and 6.3%, respectively.

In 2011, the Company issued $350,000,000 of 3.375% notes due September 15, 2021 at 99.552% of face value and $650,000,000 of 4.875% notes due September 15, 2041 at 98.539% of face value. The effective interest rates of the notes are 3.4% and 4.9%, respectively. These notes are senior unsecured obligations, ranking equal in right of payment with all other senior unsecured indebtedness of the Company.

Other debt outstanding at December 31, 2011, bears interest at rates ranging from 0.3% to 15.6%, with maturities through the year 2029.

Based on market rates for comparable instruments, the approximate fair value and related carrying value of the Company’s long-term debt, including current maturities, as of December 31, 2011 and 2010 were as follows:

	2011				2010
In Thousands	Fair Value		Carrying Value		Fair Value		Carrying Value
6.55% preferred debt securities due December 31, 2011	$	250,000	$	250,000	$	263,750	$	249,949
5.15% notes due April 1, 2014		876,800		799,693		882,480		799,567
5.25% Euro notes due October 1, 2014		1,064,218		971,465		1,098,412		1,002,016
6.25% notes due April 1, 2019		871,668		699,912		816,200		699,903
4.88% notes due thru December 31, 2020		24,362		21,954		23,471		21,954
3.375% notes due September 15, 2021		367,574		348,476		—		—
4.875% notes due September 15, 2041		760,533		640,551		—		—
Other borrowings		18,490		18,490		20,914		20,914
	$	4,233,645	$	3,750,541	$	3,105,227	$	2,794,303

In 2007, the Company entered into a $500,000,000 revolving credit facility with a termination date of June 15, 2012. In 2010, the Company entered into a $1,000,000,000 line of credit agreement with a termination date of June 11, 2013 and a $1,000,000,000 line of credit agreement with a termination date of June 10, 2011, which was replaced in June of 2011 by a $1,000,000,000 line of credit with a termination date of June 10, 2016. The revolving credit facility along with the lines of credit support the issuance of commercial paper. No amounts were outstanding under any of these facilities at December 31, 2011.

The Company’s debt agreements’ financial covenants limit total debt, including guarantees, to 50% of total capitalization. The Company’s total debt, including guarantees, was 30.2% of total capitalization as defined in our debt agreements as of December 31, 2011, which was in compliance with these covenants.

Scheduled maturities of long-term debt for the future years ending December 31 are as follows:

In Thousands
2013	$	10,077
2014		1,776,211
2015		2,861
2016		675
2017 and future years		1,698,374
	$	3,488,198

At December 31, 2011, the Company had open stand-by letters of credit of approximately $213,000,000, substantially all of which expire in 2012 and 2013.

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Trade Receivables (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Changes in allowances for uncollectible accounts
Beginning balance	$ (70,235)	$ (76,459)	$ (78,320)
Provision charged to expense	(4,553)	(4,390)	(17,543)
Write-offs, net of recoveries	10,159	12,513	24,799
Acquisitions and divestitures	(3,657)	(2,866)	(2,327)
Foreign currency translation	1,641	957	(3,209)
Transfer to assets held for sale	1,393
Other	27	10	141
Ending balance	$ (65,225)	$ (70,235)	$ (76,459)

XML

Long-Term Debt (Details Textual)	12 Months Ended										12 Months Ended
	Dec. 31, 2011 USD ($)	Jun. 30, 2011 USD ($)	Dec. 31, 2007 USD ($)	Dec. 31, 2002 6.55% preferred debt securities due December 31, 2011 [Member] USD ($)	Dec. 31, 2005 4.88% notes due thru December 31, 2020 [Member] USD ($)	Dec. 31, 2007 5.25% Euro notes due October 1, 2014 [Member] EUR (€)	Dec. 31, 2009 5.15% notes due April 1, 2014 [Member] USD ($)	Dec. 31, 2009 6.25% notes due April 1, 2019 [Member] USD ($)	Dec. 31, 2011 3.375% notes due September 15, 2021 [Member] USD ($)	Dec. 31, 2011 4.875% notes due September 15, 2041 [Member] USD ($)	Dec. 31, 2011 Other borrowings [Member]	Dec. 31, 2010 Line of Credit 1 [Member] USD ($)	Dec. 31, 2010 Line of Credit 2 [Member] USD ($)
Long-Term Debt (Textual) [Abstract]
Termination date of line of credit facility		Jun. 10, 2016	Jun. 15, 2012									Jun. 11, 2013	Jun. 10, 2011
Line of credit facility		$ 1,000,000,000	$ 500,000,000									$ 1,000,000,000	$ 1,000,000,000
Face value of notes				250,000,000	53,735,000	750,000,000	800,000,000	700,000,000	350,000,000	650,000,000
Interest rate, stated percentage				6.55%	4.88%	5.25%	5.15%	6.25%	3.375%	4.875%
Percentage of face value of notes issued				99.849%	100.00%	99.874%	99.92%	99.98%	99.552%	98.539%
Effective interest rate				6.70%		5.30%	5.20%	6.30%	3.40%	4.90%
Other borrowings interest rates, minimum											0.30%
Other borrowings interest rates, maximum											15.60%
Long Term Debt (Additional Textual) [Abstract]
Line of credit facilities, amount outstanding	0
Total debt, including guarantees, as percentage of total capitalization limitation in financial covenants	50.00%
Total debt, including guarantees, as percentage of total capitalization	30.20%
Open stand-by letters of credit	$ 213,000,000
Expiration of open stand-by letters of credit	2012 and 2013

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Results of discontinued operations

In Thousands	2011			2010			2009
Operating revenues	$	470,252		$	432,705		$	420,609
Income before taxes	$	81,602		$	84,912		$	5,080
Income tax expense		(27,232	)		(34,398	)		(1,021	)
Income from discontinued operations	$	54,370		$	50,514		$	4,059

The assets and liabilities held for sale of the finishing, consumer packaging and electronics components businesses

In Thousands	December 31, 2011
Trade receivables	$	71,684
Inventories		55,642
Net plant and equipment		44,635
Goodwill and intangible assets		201,526
Other		12,837
Total assets held for sale	$	386,324
Accounts payable	$	21,672
Accrued expenses		54,723
Other		30,453
Total liabilities held for sale	$	106,848

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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2011

Pension and Other Postretirement Benefits [Abstract]

Pension and other postretirement benefit costs

	Pension									Other Postretirement Benefits
In Thousands	2011			2010			2009			2011			2010			2009
Components of net periodic benefit cost:
Service cost	$	94,100		$	94,104		$	97,950		$	13,430		$	13,941		$	12,567
Interest cost		116,331			110,484			120,109			29,532			29,995			30,506
Expected return on plan assets		(157,848	)		(149,822	)		(154,254	)		(20,564	)		(18,183	)		(13,612	)
Amortization of actuarial loss		39,359			26,092			8,436			415			40			40
Amortization of prior service cost (income)		777			736			(1,585	)		6,448			6,445			6,423
Amortization of transition amount		16			47			164			—			—			—
Settlement/curtailment loss (income)		—			515			(11,947	)		—			—			—
	$	92,735		$	82,156		$	58,873		$	29,261		$	32,238		$	35,924
Net periodic benefit cost was included in the statement of income as follows:
	Pension									Other Postretirement Benefits
In Thousands	2011			2010			2009			2011			2010			2009
Income from continuing operations	$	89,277		$	79,980		$	56,466		$	28,916		$	31,860		$	35,560
Income from discontinued operations		3,458			2,176			2,407			345			378			364
	$	92,735		$	82,156		$	58,873		$	29,261		$	32,238		$	35,924

Change in benefit obligation:

	Pension						Other Postretirement Benefits
In Thousands	2011			2010			2011			2010
Change in benefit obligation:
Benefit obligation at January 1	$	2,300,740		$	2,176,568		$	559,423		$	533,834
Service cost		94,100			94,104			13,430			13,941
Interest cost		116,331			110,484			29,532			29,995
Plan participants’ contributions		8,100			4,642			15,273			15,241
Actuarial loss		78,634			31,830			251			10,824
Acquisitions		15,882			30,845			—			—
Benefits paid		(142,409	)		(137,753	)		(47,946	)		(48,465	)
Medicare subsidy received		—			—			3,136			4,053
Liabilities from (to) other immaterial plans		2,409			6,817			(4,074	)		—
Settlement/curtailment loss		—			515			—			—
Foreign currency translation		(9,169	)		(17,312	)		—			—
Benefit obligation at December 31	$	2,464,618		$	2,300,740		$	569,025		$	559,423

Change in plan assets

Change in plan assets:
Fair value of plan assets at January 1	$	1,940,552		$	1,750,904		$	293,776		$	259,753
Actual return on plan assets		108,495			187,688			3,357			34,023
Company contributions		130,535			73,720			32,673			33,224
Plan participants’ contributions		8,100			4,642			15,273			15,241
Acquisitions		15,344			26,115			—			—
Benefits paid		(142,409	)		(137,753	)		(47,946	)		(48,465	)
Assets from other immaterial plans		—			44,860			—			—
Foreign currency translation		(6,706	)		(9,624	)		—			—
Fair value of plan assets at December 31	$	2,053,911		$	1,940,552		$	297,133		$	293,776
Funded status	$	(410,707	)	$	(360,188	)	$	(271,892	)	$	(265,647	)
Other immaterial plans		(63,655	)		(62,664	)		(7,458	)		(3,105	)
Net liability at December 31	$	(474,362	)	$	(422,852	)	$	(279,350	)	$	(268,752	)
The amounts recognized in the statement of financial position as of December 31 consist of:
Assets held for sale	$	75		$	—		$	—		$	—
Other assets		40,687			16,023			—			—
Accrued expenses		(21,459	)		(15,378	)		(7,767	)		(9,025	)
Liabilities held for sale		(12,757	)		—			—			—
Other noncurrent liabilities		(480,908	)		(423,497	)		(271,583	)		(259,727	)
Net liability at end of year	$	(474,362	)	$	(422,852	)	$	(279,350	)	$	(268,752	)
The pre-tax amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss (gain)	$	848,368		$	758,901		$	15,406		$	(1,840	)
Prior service cost		3,981			4,758			4,844			11,292
Net transition obligation		52			68			—			—
	$	852,401		$	763,727		$	20,250		$	9,452
Accumulated benefit obligation	$	2,193,199		$	2,084,663
Plans with accumulated benefit obligation in excess of plan assets as of December 31:
Projected benefit obligation	$	1,837,761		$	1,722,577
Accumulated benefit obligation	$	1,665,360		$	1,582,158
Fair value of plan assets	$	1,413,557		$	1,379,466

Weighted-average assumptions used in the valuations of pension and other postretirement benefits

	Pension									Other Postretirement Benefits
	2011			2010			2009			2011			2010			2009
Assumptions used to determine benefit obligations at December 31:
Discount rate		4.64	%		5.05	%		5.57	%		4.95	%		5.45	%		5.80	%
Rate of compensation increases		3.86			3.94			4.18			—			—			—
Assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate		5.05	%		5.57	%		6.59	%		5.45	%		5.80	%		6.50	%
Expected return on plan assets		7.39			7.63			8.28			7.00			7.00			7.00
Rate of compensation increases		3.94			4.18			4.19			—			—			—

Postretirement benefit obligation

	2011			2010			2009
Health care cost trend rate assumed for the next year		8.50	%		8.71	%		8.21	%
Ultimate trend rate		5.00	%		5.00	%		5.00	%
Year the rate reaches the ultimate trend rate		2019			2020			2020

One-percentage-point change in assumed health care cost trend rates

In Thousands	1-Percentage-Point Increase		1-Percentage-Point Decrease
Change in service cost and interest cost for 2011	$	964	$	(1,406	)
Change in postretirement benefit obligation at December 31, 2011	$	14,556	$	(17,480	)

Defined benefit plan assets for plan benefits

	2011
In Thousands	Level 1		Level 2		Level 3		Total
Pension Plan Assets:
Cash and equivalents	$	16,466	$	—	$	—	$	16,466
Equity securities:
Domestic		56,202		—		—		56,202
Foreign		68,290		—		—		68,290
Fixed income securities:
Government securities		—		217,840		—		217,840
Corporate debt securities		—		240,032		4,020		244,052
Mortgage-backed securities		—		16,418		—		16,418
Investment contracts with insurance companies		—		—		69,285		69,285
Commingled funds:
Mutual funds		344,891		—		—		344,891
Collective trust funds		—		931,735		—		931,735
Partnerships/private equity interests		—		—		86,869		86,869
Other		—		916		947		1,863
	$	485,849	$	1,406,941	$	161,121	$	2,053,911
Other Postretirement Benefit Plan Assets:
Cash and equivalents	$	33,675	$	—	$	—	$	33,675
Life insurance policies		—		—		263,458		263,458
	$	33,675	$	—	$	263,458	$	297,133

	2010
In Thousands	Level 1		Level 2		Level 3		Total
Pension Plan Assets:
Cash and equivalents	$	49,444	$	—	$	—	$	49,444
Equity securities:
Domestic		125,884		—		—		125,884
Foreign		161,850		—		—		161,850
Fixed income securities:
Government securities		—		193,940		1,025		194,965
Corporate debt securities		—		219,546		2,667		222,213
Mortgage-backed securities		—		9,621		—		9,621
Investment contracts with insurance companies		—		119,976		—		119,976
Commingled funds:
Mutual funds		300,716		—		—		300,716
Collective trust funds		—		678,082		—		678,082
Partnerships/private equity interests		—		—		77,587		77,587
Other		—		204		10		214
	$	637,894	$	1,221,369	$	81,289	$	1,940,552
Other Postretirement Benefit Plan Assets:
Cash and equivalents	$	28,065	$	—	$	—	$	28,065
Life insurance policies		—		—		265,711		265,711
	$	28,065	$	—	$	265,711	$	293,776

Assets measured at fair value for pension and other postretirement benefit plan

In Thousands	Government Securities			Corporate Debt Securities			Mortgage- backed Securities			Investment Contracts with Insurance Companies		Partnerships/ Private  Equity Interests			Life Insurance Policies			Other			Total
Balance Dec 31, 2009	$	1,285		$	2,092		$	3,372		$	—	$	68,847		$	233,042		$	2,226		$	310,864
2010 Activity:
Realized gains (losses)		100			(452	)		(947	)		—		3,547			—			(17	)		2,231
Unrealized gains (losses)		(49	)		624			844			—		(538	)		32,669			319			33,869
Purchases and sales		(311	)		(1,137	)		(3,269	)		—		5,731			—			(2,518	)		(1,504	)
Transfers		—			1,540			—			—		—			—			—			1,540
Balance Dec 31, 2010		1,025			2,667			—			—		77,587			265,711			10			347,000
2011 Activity:
Realized gains		—			—			—			—		4,088			—			4			4,092
Unrealized gains (losses)		—			118			—			5,794		4,398			(2,253	)		(221	)		7,836
Purchases and sales		—			2,000			—			2,192		796			—			909			5,897
Transfers		(1,025	)		(765	)		—			61,299		—			—			245			59,754
Balance Dec 31, 2011	$	—		$	4,020		$	—		$	69,285	$	86,869		$	263,458		$	947		$	424,579

Portion of the benefit payments are expected to be paid

			Other
			Postretirement
In Thousands	Pension		Benefits
2012	$	181,603	$	38,849
2013		169,423		39,278
2014		174,453		39,866
2015		181,405		40,558
2016		187,856		41,338
Years 2017-2021		1,010,684		218,668

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Advertising Expenses (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Advertising Expenses (Textual) [Abstract]
Advertising Expense	$ 87,965,000	$ 72,016,000	$ 63,290,000

XML

Statement of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Statement of Income [Abstract]
Operating Revenues	$ 17,786,583	$ 15,415,692	$ 13,572,996
Cost of revenues	11,517,885	9,996,668	8,953,380
Selling, administrative, and research and development expenses	3,282,352	2,956,574	2,933,616
Amortization of intangible assets	255,338	207,427	197,469
Impairment of goodwill and other intangible assets		1,006	105,568
Operating Income	2,731,008	2,254,017	1,382,963
Interest expense	(192,133)	(175,163)	(164,589)
Other income (expense)	53,839	9,984	(4,454)
Income from Continuing Operations Before Income Taxes	2,592,714	2,088,838	1,213,920
Income Taxes	575,700	636,400	245,282
Income from Continuing Operations	2,017,014	1,452,438	968,638
Income from Discontinued Operations	54,370	50,514	4,059
Net Income	$ 2,071,384	$ 1,502,952	$ 972,697
Income Per Share from Continuing Operations:
Basic	$ 4.10	$ 2.90	$ 1.94
Diluted	$ 4.08	$ 2.89	$ 1.93
Income Per Share from Discontinued Operations:
Basic	$ 0.11	$ 0.10	$ 0.01
Diluted	$ 0.11	$ 0.10	$ 0.01
Net Income Per Share:
Basic	$ 4.21	$ 3.00	$ 1.94
Diluted	$ 4.19	$ 2.99	$ 1.94

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Income Per Share from Continuing Operations (Tables)

12 Months Ended

Dec. 31, 2011

Income Per Share from Continuing Operations [Abstract]

Income Per Share from Continuing Operations

In Thousands except per share amounts	2011		2010		2009
Income from continuing operations	$	2,017,014	$	1,452,438	$	968,638
Income per share from continuing operations—Basic:
Weighted-average common shares		491,439		500,772		500,177
Income per share from continuing operations—Basic	$	4.10	$	2.90	$	1.94
Income per share from continuing operations—Diluted:
Weighted-average common shares		491,439		500,772		500,177
Effect of dilutive stock options and restricted stock units		3,207		2,578		1,744
Weighted-average common shares assuming dilution		494,646		503,350		501,921
Income per share from continuing operations—Diluted	$	4.08	$	2.89	$	1.93

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Goodwill and Intangible Assets (Details Textual) (USD $)	12 Months Ended						3 Months Ended	12 Months Ended			3 Months Ended	12 Months Ended	3 Months Ended
	Dec. 31, 2011 Unit Y	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Segment, Discontinued Operations [Member]	Dec. 31, 2010 Segment, Discontinued Operations [Member]	Dec. 31, 2009 Segment, Discontinued Operations [Member]	Sep. 30, 2009 Transportation Segment [Member]	Dec. 31, 2011 Transportation Segment [Member]	Dec. 31, 2011 Polymers and Fluids Segment [Member]	Dec. 31, 2011 Power Systems & Electronics Segment [Member]	Mar. 31, 2009 PC Board Fabrication Reporting Unit [Member]	Dec. 31, 2009 PC Board Fabrication Reporting Unit [Member]	Mar. 31, 2009 Pressure Sensitive Adhesives Reporting Unit [Member]
Schedule of Goodwill (Textual) [Abstract]
An impairment charge related to truck remanufacturing reporting unit							$ 12,000,000
Goodwill, impairment charges			90,000,000								18,000,000		60,000,000
Indefinite Lived Intangible Assets (Textual) [Abstract]
Impairment		1,006,000	15,568,000									5,800,000
Amortization of intangible assets	$ 255,338,000	$ 207,427,000	$ 197,469,000	$ 2,176,000	$ 5,567,000	$ 5,578,000
Goodwill and Intangible Assets (Textual) [Abstract]
Total number of reporting units considered in annual impairment assessment	52
Minimum estimated useful lives of amortized intangible assets	3
Maximum estimated useful lives of amortized intangible assets	20

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Long-Term Debt (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Scheduled maturities of long-term debt
2013	$ 10,077
2014	1,776,211
2015	2,861
2016	675
2017 and future years	1,698,374
Long-Term Debt excluding current maturities	$ 3,488,198	$ 2,542,087

XML

Statement of Financial Position (Parenthetical)	Dec. 31, 2011	Dec. 31, 2010
Statement of Financial Position [Abstract]
Common stock shares issued	542,500,435	538,505,782

XML

Goodwill and Intangible Assets (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Amortizable intangible assets:
Amortizable intangible assets, Cost	$ 3,368,200	$ 2,655,840
Amortizable intangible assets, Accumulated Amortization	(1,337,566)	(1,124,777)
Amortizable intangible assets, Net	2,030,634	1,531,063
Indefinite-lived intangible assets:
Total intangible assets, Cost	3,570,944	2,855,793
Intangible assets	2,233,378	1,731,016
Trademarks and brands [Member]
Indefinite-lived intangible assets:
Total intangible assets, Cost	202,744	199,953
Intangible assets	202,744	199,953
Customer lists and relationships [Member]
Amortizable intangible assets:
Amortizable intangible assets, Cost	1,608,027	1,252,748
Amortizable intangible assets, Accumulated Amortization	(522,155)	(412,482)
Amortizable intangible assets, Net	1,085,872	840,266
Patents and proprietary technology [Member]
Amortizable intangible assets:
Amortizable intangible assets, Cost	561,205	467,226
Amortizable intangible assets, Accumulated Amortization	(235,618)	(210,359)
Amortizable intangible assets, Net	325,587	256,867
Trademarks and brands [Member]
Amortizable intangible assets:
Amortizable intangible assets, Cost	699,586	467,838
Amortizable intangible assets, Accumulated Amortization	(157,373)	(119,010)
Amortizable intangible assets, Net	542,213	348,828
Software [Member]
Amortizable intangible assets:
Amortizable intangible assets, Cost	201,009	199,560
Amortizable intangible assets, Accumulated Amortization	(172,058)	(154,188)
Amortizable intangible assets, Net	28,951	45,372
Noncompete agreements [Member]
Amortizable intangible assets:
Amortizable intangible assets, Cost	181,379	158,363
Amortizable intangible assets, Accumulated Amortization	(148,088)	(135,754)
Amortizable intangible assets, Net	33,291	22,609
Other Intangible Assets [Member]
Amortizable intangible assets:
Amortizable intangible assets, Cost	116,994	110,105
Amortizable intangible assets, Accumulated Amortization	(102,274)	(92,984)
Amortizable intangible assets, Net	$ 14,720	$ 17,121

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Summary of stock based compensation expense

In Thousands	2011			2010			2009
Pre-tax compensation expense	$	56,374		$	56,443		$	51,858
Tax benefit		(17,343	)		(17,822	)		(15,565	)
Total stock-based compensation recorded as expense, net of tax	$	39,031		$	38,621		$	36,293

Summary of activity related to non vested equity awards

	Number of Shares			Weighted-Average Grant-Date Fair Value
Unvested, January 1, 2011		1,721,481		$	34.84
Granted		589,772			51.73
Vested		(34,630	)		34.38
Cancelled		(102,175	)		38.36
Unvested, December 31, 2011		2,174,448			39.27

Summary of stock option activity under plan

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Under option, January 1, 2011		19,655,417		$	44.08
Granted		2,008,104			55.92
Exercised		(4,055,853	)		39.06
Cancelled or expired		(156,838	)		47.58
Under option, December 31, 2011		17,450,830			46.57		5.81 years	$	42,603,214
Exercisable, December 31, 2011		12,036,884			46.25		4.92 years	$	26,125,945

Summary of assumptions used in option models

	2012			2011			2010
Risk-free interest rate		0.2-2.1	%		0.3-3.8	%		0.4–3.9	%
Weighted-average volatility		25.0	%		25.0	%		25.0	%
Dividend yield		2.61	%		2.80	%		2.78	%
Expected years until exercise		7.6-7.8			7.6-7.9			7.5-7.8

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Pension and Other Postretirement Benefits (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Pension [Member]
Change in benefit obligation:
Benefit obligation at January 1	$ 2,300,740	$ 2,176,568
Service cost	94,100	94,104	97,950
Interest cost	116,331	110,484	120,109
Plan participants' contributions	8,100	4,642
Actuarial loss	78,634	31,830
Acquisitions	15,882	30,845
Benefits paid	(142,409)	(137,753)
Medicare subsidy received	0
Liabilities from (to) other immaterial plans	2,409	6,817
Settlement/curtailment loss	0	515
Foreign currency translation	(9,169)	(17,312)
Benefit obligation at December 31	2,464,618	2,300,740	2,176,568
Other Postretirement Benefits [Member]
Change in benefit obligation:
Benefit obligation at January 1	559,423	533,834
Service cost	13,430	13,941	12,567
Interest cost	29,532	29,995	30,506
Plan participants' contributions	15,273	15,241
Actuarial loss	251	10,824
Acquisitions	0
Benefits paid	(47,946)	(48,465)
Medicare subsidy received	3,136	4,053
Liabilities from (to) other immaterial plans	(4,074)
Settlement/curtailment loss	0
Foreign currency translation	0
Benefit obligation at December 31	$ 569,025	$ 559,423	$ 533,834

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Stockholders' Equity

12 Months Ended

Dec. 31, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

Preferred Stock, without par value, of which 300,000 shares are authorized, is issuable in series. The Board of Directors is authorized to fix by resolution the designation and characteristics of each series of preferred stock. The Company has no present commitment to issue its preferred stock.

Common Stock, with a par value of $.01, Additional Paid-In-Capital and Common Stock Held in Treasury transactions during 2011, 2010 and 2009 are shown below.

	Common Stock				Additional Paid-In- Capital			Common Stock Held in Treasury
In Thousands except shares	Shares		Amount		Amount			Shares			Amount
Balance, December 31, 2008		531,789,730	$	5,318	$	105,497			(32,674,759	)	$	(1,390,594	)
During 2009—
Shares issued for stock options		3,204,212		32		101,581			—			—
Shares issued for stock compensation and vesting of restricted stock		17,018		—		120			—			—
Stock compensation expense		—		—		51,858			—			—
Noncontrolling interest		—		—		(2,591	)		—			—
Tax benefits related to stock options		—		—		11,416			—			—
Tax benefits related to defined contribution plans		—		—		3,104			—			—
Balance, December 31, 2009		535,010,960		5,350		270,985			(32,674,759	)		(1,390,594	)
During 2010—
Shares issued for stock options		3,445,891		34		113,592			—			—
Shares issued for stock compensation and vesting of restricted stock		48,931		1		1,217			(1,998	)		(88	)
Stock compensation expense		—		—		56,443			—			—
Noncontrolling interest		—		—		(287	)		—			—
Tax benefits related to stock options		—		—		15,619			—			—
Tax benefits related to defined contribution plans		—		—		3,237			—			—
Repurchases of common stock		—		—		—			(8,084,724	)		(350,000	)
Balance, December 31, 2010		538,505,782		5,385		460,806			(40,761,481	)		(1,740,682	)
During 2011—
Shares issued for stock options		3,932,861		39		151,431			—			—
Shares issued for stock compensation and vesting of restricted stock		61,792		1		1,629			(24,796	)		(1,514	)
Stock compensation expense		—		—		56,374			—			—
Tax benefits related to stock options		—		—		12,594			—			—
Tax benefits related to defined contribution plans		—		—		3,321			—			—
Repurchases of common stock		—		—		—			(18,106,109	)		(950,000	)
Balance, December 31, 2011		542,500,435	$	5,425	$	686,155			(58,892,386	)	$	(2,692,196	)
Authorized, December 31, 2011		700,000,000

On August 20, 2007, the Company’s Board of Directors authorized a stock repurchase program which provides for the buyback of up to $3,000,000,000 of the Company’s common stock over an open-ended period of time (the “2007 Program”). Under the 2007 Program, the Company made repurchases of 8,084,724 shares of its common stock at an average price of $43.29 per share during 2010 and 16,278,856 shares of its common stock at an average price of $53.51 per share during 2011. As of December 31, 2011, there were no authorized repurchases remaining under the 2007 Program.

On May 6, 2011, the Company’s Board of Directors authorized a new stock repurchase program which provides for the buyback of up to an additional $4,000,000,000 of the Company’s common stock over an open-ended period of time (the “2011 Program”). Through December 31, 2011, the Company made repurchases of 1,827,253 shares of its common stock at an average price of $43.20. As of December 31, 2011, there was approximately $3,900,000,000 of authorized repurchases remaining under the 2011 Program.

Cash Dividends declared were $1.40 per share in 2011, $1.30 per share in 2010 and $1.24 per share in 2009. Cash dividends paid were $1.38 per share in 2011, $1.27 per share in 2010 and $1.24 per share in 2009.

Accumulated Other Comprehensive Income – Comprehensive income is defined as the changes in equity during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by stockholders and distributions to stockholders. The changes in accumulated other comprehensive income during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010		2009
Beginning balance	$	427,155		$	248,959	$	10,118
Foreign currency translation adjustments		(140,521	)		153,230		301,112
Pension and other postretirement benefits actuarial gains (losses) net of tax of $53,568 in 2011, $(2,978) in 2010 and $23,213 in 2009		(93,156	)		3,543		(71,197	)
Amortization of unrecognized pension and other postretirement benefits costs, net of tax of $(16,506) in 2011, $(11,956) in 2010 and $(5,089) in 2009		30,745			21,423		8,357
Pension and other postretirement benefits settlements, curtailments and other, net of tax of $0 in 2011, $0 in 2010 and $(225) in 2009		—			—		569
Ending balance	$	224,223		$	427,155	$	248,959

Foreign currency translation adjustments for the year ended December 31, 2011 is net of a $55,297,000 increase for the resolution of an issue with the Internal Revenue Service in the U.S. related to a deduction for foreign exchange losses on an intercompany loan.

As of December 31, 2011 and 2010, the ending balance of accumulated comprehensive income consisted of cumulative translation adjustment income of $773,367,000 and $913,888,000, respectively, and unrecognized pension and other postretirement benefits costs of $549,144,000 and $486,733,000, respectively. The estimated unrecognized benefit cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2012 is $52,638,000 for pension and $3,337,000 for other postretirement benefits.

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Discontinued Operations (Details Textual) (USD $)	1 Months Ended	12 Months Ended
	Apr. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Discontinued Operations [Abstract]
Cash transaction made through definitive agreement	$ 650,000,000
Loss related to sale of electronics components business included in income from discontinued operations before taxes		3,675,000
Gain on sale of the security printing business included in income from discontinued operations before taxes			19,559,000
Losses on sale of Click commerce and automotive component businesses included in income from discontinued operations before taxes				$ 27,665,000

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Trade Receivables

12 Months Ended

Dec. 31, 2011

Trade Receivables [Abstract]

Trade Receivables

Trade Receivables were net of allowances for uncollectible accounts. The changes in the allowances for uncollectible accounts during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Beginning balance	$	(70,235	)	$	(76,459	)	$	(78,320	)
Provision charged to expense		(4,553	)		(4,390	)		(17,543	)
Write-offs, net of recoveries		10,159			12,513			24,799
Acquisitions and divestitures		(3,657	)		(2,866	)		(2,327	)
Foreign currency translation		1,641			957			(3,209	)
Transfer to assets held for sale		1,393			—			—
Other		27			10			141
Ending balance	$	(65,225	)	$	(70,235	)	$	(76,459	)

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation – Stock options and restricted stock units have been issued to officers and other management employees under ITW’s 2011 Long-Term Incentive Plan (the “Plan”). The stock options generally vest over a four-year period and have a maturity of ten years from the issuance date. Restricted stock units generally vest after a three-year period and include units with and without performance criteria. To cover the exercise of vested options and vesting of restricted stock units, the Company generally issues new shares from its authorized but unissued share pool. At December 31, 2011, 51,244,986 shares of ITW common stock were reserved for issuance under the Plan. The Company records compensation expense for the grant date fair value of stock awards over the remaining service periods of those awards.

The following summarizes the Company’s stock-based compensation expense:

In Thousands	2011			2010			2009
Pre-tax compensation expense	$	56,374		$	56,443		$	51,858
Tax benefit		(17,343	)		(17,822	)		(15,565	)
Total stock-based compensation recorded as expense, net of tax	$	39,031		$	38,621		$	36,293

Of the pre-tax compensation expense, $845,000, $783,000 and $729,000 were included in income from discontinued operations for the years ended December 31, 2011, 2010 and 2009, respectively.

The following table summarizes activity related to non-vested restricted stock units during 2011:

	Number of Shares			Weighted-Average Grant-Date Fair Value
Unvested, January 1, 2011		1,721,481		$	34.84
Granted		589,772			51.73
Vested		(34,630	)		34.38
Cancelled		(102,175	)		38.36
Unvested, December 31, 2011		2,174,448			39.27

The following table summarizes stock option activity under the Plan for the year ended December 31, 2011:

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Under option, January 1, 2011		19,655,417		$	44.08
Granted		2,008,104			55.92
Exercised		(4,055,853	)		39.06
Cancelled or expired		(156,838	)		47.58
Under option, December 31, 2011		17,450,830			46.57		5.81 years	$	42,603,214
Exercisable, December 31, 2011		12,036,884			46.25		4.92 years	$	26,125,945

On February 10, 2012, the Compensation Committee of the Board of Directors approved an annual equity award consisting of stock options, restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”). The RSUs provide for full “cliff” vesting three years from the date of grant. The PRSUs provide for full “cliff” vesting after three years if the Compensation Committee certifies that the performance goals set with respect to the PRSU have been met. Upon vesting, the holder will receive one share of common stock of the Company for each vested RSU or PRSU. Option exercise prices are equal to the common stock fair market value on the date of grant. Stock options were granted on 1,758,420 shares at an exercise price of $55.71 per share. Additionally, 550,308 RSUs and PRSUs were issued at the grant date share price of $55.71. The fair value of RSUs and PRSUs is determined by reducing the closing market price on the date of the grant by the present value of projected dividends over the vesting period. The Company uses a binomial option pricing model to estimate the fair value of the stock options granted. The following summarizes the assumptions used in the models:

	2012			2011			2010
Risk-free interest rate		0.2-2.1	%		0.3-3.8	%		0.4–3.9	%
Weighted-average volatility		25.0	%		25.0	%		25.0	%
Dividend yield		2.61	%		2.80	%		2.78	%
Expected years until exercise		7.6-7.8			7.6-7.9			7.5-7.8

Lattice-based option valuation models, such as the binomial option pricing model, incorporate ranges of assumptions for inputs. The risk-free rate of interest for periods within the contractual life of the option is based on a zero-coupon U.S. government instrument over the contractual term of the equity instrument. Expected volatility is based on implied volatility from traded options on the Company’s stock and historical volatility of the Company’s stock. The Company uses historical data to estimate option exercise timing and employee termination rates within the valuation model. The weighted-average dividend yield is based on historical information. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The ranges presented result from separate groups of employees assumed to exhibit different behavior.

The weighted-average grant-date fair value of options granted during 2012, 2011, 2010 and 2009 was $11.48, $12.34, $9.59 and $10.24 per share, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $63,480,000, $56,191,000 and $38,609,000, respectively. As of December 31, 2011 there was $27,762,000 of total unrecognized compensation cost related to unvested stock options. That cost is expected to be recognized over a weighted-average period of 2.4 years. Exercise of options during the years ended December 31, 2011, 2010, and 2009 resulted in cash receipts of $151,470,000, $113,627,000 and $101,613,000, respectively. The total fair value of vested stock option awards during the years ended December 31, 2011, 2010 and 2009 was $32,955,000, $29,545,000 and $38,999,000, respectively.

As of December 31, 2011 there was $27,402,000 of total unrecognized compensation cost related to unvested restricted stock units. That cost is expected to be recognized over a weighted-average remaining contractual life of 1.7 years. The total fair value of vested restricted stock unit awards during the years ended December 31, 2011 and 2010 was $1,191,000 and $632,000, respectively.

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Pension and Other Postretirement Benefits (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Components of net periodic benefit cost:
Income from continuing operations	$ 2,017,014	$ 1,452,438	$ 968,638
Income from Discontinued Operations	54,370	50,514	4,059
Net Income	2,071,384	1,502,952	972,697
Pension [Member]
Components of net periodic benefit cost:
Service cost	94,100	94,104	97,950
Interest cost	116,331	110,484	120,109
Expected return on plan assets	(157,848)	(149,822)	(154,254)
Amortization of actuarial loss	39,359	26,092	8,436
Amortization of prior service cost (income)	777	736	(1,585)
Amortization of net transition amount	16	47	164
Settlement/curtailment loss (income)	0	515	(11,947)
Net periodic benefit cost	92,735	82,156	58,873
Income from continuing operations	89,277	79,980	56,466
Income from Discontinued Operations	3,458	2,176	2,407
Net Income	92,735	82,156	58,873
Other Postretirement Benefits [Member]
Components of net periodic benefit cost:
Service cost	13,430	13,941	12,567
Interest cost	29,532	29,995	30,506
Expected return on plan assets	(20,564)	(18,183)	(13,612)
Amortization of actuarial loss	415	40	40
Amortization of prior service cost (income)	6,448	6,445	6,423
Amortization of net transition amount	0	0	0
Settlement/curtailment loss (income)	0	0	0
Net periodic benefit cost	29,261	32,238	35,924
Income from continuing operations	28,916	31,860	35,560
Income from Discontinued Operations	345	378	364
Net Income	$ 29,261	$ 32,238	$ 35,924

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Stock-Based Compensation (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Feb. 10, 2012
Stock Based Compensation (Additional Textual) [Abstract]
Vesting period for stock options		4 years
Maturity period for stock options from issuance date		10 years
Vesting period for restricted stock units		after 3 Years
Shares reserved for issuance under ITW's 2011 Long-Term Incentive Plan		51,244,986
Discontinued operations pre-tax stock-based compensation		$ 845,000	$ 783,000	$ 729,000
Vesting period for RSU awards					after 3 years from date of grant
Vesting period for PRSU awards					after 3 years if performance goals were met
Number of shares for each vested RSU or PRSU award					1
Shares on which stock options granted					1,758,420
Exercise price of stock options					$ 55.71
RSUs and PRSUs issued at the grant date					550,308
Grant date share price					$ 55.71
Weighted-average grant-date fair value of options granted	$ 11.48	$ 12.34	$ 9.59	$ 10.24
Aggregate intrinsic value of options exercised		63,480,000	56,191,000	38,609,000
Cash receipts from exercise of options		151,470,000	113,627,000	101,613,000
Total fair value of vested stock option awards		32,955,000	29,545,000	38,999,000
Total fair value of vested restricted stock unit awards		1,191,000	632,000
Stock Options [Member]
Stock Based Compensation (Textual) [Abstract]
Total unrecognized compensation cost related to non-vested stock awards		27,762,000
Weighted-average period (years) to recognize total unrecognized compensation cost		2.4
Restricted Stock Units [Member]
Stock Based Compensation (Textual) [Abstract]
Total unrecognized compensation cost related to non-vested stock awards		$ 27,402,000
Weighted-average period (years) to recognize total unrecognized compensation cost		1.7

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Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2011

Prepaid Expenses and Other Current Assets and Other Assets [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets as of December 31, 2011 and 2010 were as follows:

In Thousands	2011		2010
Income tax refunds receivable	$	111,663	$	10,937
Value-added-tax receivables		65,196		59,954
Vendor advances		39,875		35,618
Insurance		24,082		21,111
Other		143,675		138,567
	$	384,491	$	266,187

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Acquisitions (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2010
Acquisitions [Abstract]
Expected tax deductible goodwill recorded for acquisitions	$ 72,216,000	$ 302,146,000	$ 51,304,000
After-tax charge to income reinvested in the business recorded upon adoption of new accounting guidance related to business combinations	$ 1,055,000

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Short-Term Debt (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Short-term Debt
Bank overdrafts	$ 37,706	$ 57,463
Commercial paper	192,495	0
Current maturities of long-term debt	262,343	252,216
Other borrowings	9,519	16,557
Total	$ 502,063	$ 326,236

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Statement of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash Provided by (Used for) Operating Activities:
Net income	$ 2,071,384	$ 1,502,952	$ 972,697
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	336,495	334,786	376,226
Amortization and impairment of goodwill and other intangible assets	257,514	214,000	308,615
Change in deferred income taxes	(175,923)	(142,729)	(481,803)
Provision for uncollectible accounts	4,553	4,390	17,543
(Gain) loss on sale of plant and equipment	(2,011)	(701)	1,596
Income from investments	(17,486)	(20,808)	(4,944)
(Gain) loss on disposal of operations and affiliates	1,899	(12,627)	34,315
Stock compensation expense	56,374	56,443	51,858
Other non-cash items, net	(5,766)	(1,810)	(1,086)
(Increase) decrease in-
Trade receivables	(302,952)	(170,579)	223,055
Inventories	(50,577)	(223,597)	576,932
Prepaid expenses and other assets	(50,238)	(38,723)	509
Increase (decrease) in-
Accounts payable	(54,977)	69,543	(19,636)
Accrued expenses and other liabilities	51,586	66,533	(246,370)
Income taxes receivable and payable	(182,416)	(148,796)	355,561
Other, net	18,549	36	2,484
Net cash provided by operating activities	1,956,008	1,488,313	2,167,552
Cash Provided by (Used for) Investing Activities:
Acquisition of businesses (excluding cash and equivalents) and additional interest in affiliates	(1,308,164)	(497,435)	(281,404)
Additions to plant and equipment	(353,408)	(287,759)	(255,739)
Purchases of investments	(5,641)	(16,047)	(17,586)
Proceeds from investments	36,516	26,438	20,215
Proceeds from sale of plant and equipment	17,079	18,427	26,736
Proceeds from sale of operations and affiliates	21,918	63,197	17,259
Other, net	12,569	20,787	(23,481)
Net cash used for investing activities	(1,579,131)	(672,392)	(514,000)
Cash Provided by (Used for) Financing Activities:
Cash dividends paid	(680,280)	(636,200)	(619,681)
Issuance of common stock	153,100	114,844	101,733
Repurchases of common stock	(950,000)	(350,000)
Net proceeds (repayments) of debt with original maturities of three months or less	166,592	(157,286)	(1,615,998)
Proceeds from debt with original maturities of more than three months	989,596	1,437	2,153,440
Repayments of debt with original maturities of more than three months	(8,655)	(34,236)	(1,279,869)
Excess tax benefits from share-based compensation	8,199	8,787	4,051
Net cash used for financing activities	(321,448)	(1,052,654)	(1,256,324)
Effect of Exchange Rate Changes on Cash and Equivalents	(63,921)	76,934	87,951
Cash and Equivalents:
Increase (decrease) during the year	(8,492)	(159,799)	485,179
Beginning of Year	1,186,367	1,346,166	860,987
End of Year	1,177,875	1,186,367	1,346,166
Cash Paid During the Year for Interest	168,331	174,974	156,144
Cash Paid During the Year for Income Taxes, Net of Refunds	978,257	960,013	355,069
Liabilities Assumed from Acquisitions	$ 200,028	$ 216,478	$ 57,863

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Statement of Income Reinvested in the Business (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Statement of Income Reinvested in Business [Abstract]
Beginning Balance	$ 10,407,946	$ 9,554,702	$ 9,196,465
Net Income	2,071,384	1,502,952	972,697
Cash dividends declared	(685,146)	(649,708)	(620,679)
Cumulative effect of adopting new accounting principles, net of tax			6,219
Ending Balance	$ 11,794,184	$ 10,407,946	$ 9,554,702

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Advertising Expenses

12 Months Ended

Dec. 31, 2011

Advertising Expenses [Abstract]

Advertising Expenses

Advertising Expenses are recorded as expense in the year incurred. These costs were $87,965,000 in 2011, $72,016,000 in 2010 and $63,290,000 in 2009.

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Pension and Other Postretirement Benefits (Details 5) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Postretirement benefit obligation
Health care cost trend rate assumed for the next year	8.50%	8.71%	8.21%
Ultimate trend rate	5.00%	5.00%	5.00%
Year the rate reaches the ultimate trend rate	2019	2020	2020
One-percentage-point change in assumed health care cost trend rates
1-Percentage-Point Increase - Change in service cost and interest cost	964
1-Percentage-Point Decrease - Change in service cost and interest cost	(1,406)
1-Percentage-Point Increase - Change in postretirement benefit obligation	14,556
1-Percentage-Point Decrease - Change in postretirement benefit obligation	(17,480)
Pension [Member]
Assumptions used to determine benefit obligations
Discount rate	4.64%	5.05%	5.57%
Rate of compensation increases	3.86%	3.94%	4.18%
Assumptions used to determine net periodic benefit cost
Discount rate	5.05%	5.57%	6.59%
Expected return on plan assets	7.39%	7.63%	8.28%
Rate of compensation increases	3.94%	4.18%	4.19%
Other Postretirement Benefits [Member]
Assumptions used to determine benefit obligations
Discount rate	4.95%	5.45%	5.80%
Rate of compensation increases	0.00%
Assumptions used to determine net periodic benefit cost
Discount rate	5.45%	5.80%	6.50%
Expected return on plan assets	7.00%	7.00%	7.00%
Rate of compensation increases	0.00%

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Goodwill and Intangible Assets (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	$ 4,971,818,000	$ 4,777,113,000
Acquisitions & divestitures	464,098,000	191,308,000
Impairment			90,000,000
Foreign currency translation	(47,848,000)	3,397,000
Transfer of assets held for sale	(190,467,000)
Goodwill, Ending Balance	5,197,601,000	4,971,818,000	4,777,113,000
Goodwill, Impaired, Accumulated Impairment Loss	365,727,000
Transportation Segment [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	566,670,000	538,271,000
Acquisitions & divestitures	118,286,000	50,800,000
Impairment
Foreign currency translation	(9,514,000)	(4,456,000)
Intersegment goodwill transfers	1,464,000	(17,945,000)
Goodwill, Ending Balance	676,906,000	566,670,000
Goodwill, Impaired, Accumulated Impairment Loss	36,276,000
Power Systems & Electronics Segment [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	428,899,000	420,829,000
Acquisitions & divestitures	242,257,000	4,554,000
Impairment
Foreign currency translation	(2,233,000)	3,808,000
Transfer of assets held for sale	(7,336,000)
Intersegment goodwill transfers	341,857,000	(292,000)
Goodwill, Ending Balance	1,003,444,000	428,899,000
Goodwill, Impaired, Accumulated Impairment Loss	87,696,000
Industrial Packaging [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	769,490,000	765,179,000
Acquisitions & divestitures	25,116,000	1,242,000
Impairment
Foreign currency translation	(11,252,000)	2,133,000
Intersegment goodwill transfers		936,000
Goodwill, Ending Balance	783,404,000	769,490,000
Goodwill, Impaired, Accumulated Impairment Loss	114,079,000
Food Equipment [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	204,293,000	209,025,000
Acquisitions & divestitures	(1,175,000)	2,676,000
Impairment
Foreign currency translation	(4,579,000)	(7,408,000)
Goodwill, Ending Balance	198,539,000	204,293,000
Goodwill, Impaired, Accumulated Impairment Loss	59,797,000
Construction Products [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	584,943,000	558,504,000
Acquisitions & divestitures	5,515,000	10,817,000
Impairment
Foreign currency translation	(216,000)	16,584,000
Intersegment goodwill transfers		(962,000)
Goodwill, Ending Balance	590,242,000	584,943,000
Goodwill, Impaired, Accumulated Impairment Loss	6,574,000
Polymers and Fluids Segment [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	844,430,000	739,101,000
Acquisitions & divestitures	49,843,000	84,097,000
Impairment
Foreign currency translation	(17,265,000)	(1,020,000)
Intersegment goodwill transfers	(156,441,000)	22,252,000
Goodwill, Ending Balance	720,567,000	844,430,000
Goodwill, Impaired, Accumulated Impairment Loss	14,821,000
Decorative Surfaces [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	13,226,000	13,405,000
Impairment
Foreign currency translation	(285,000)	(179,000)
Goodwill, Ending Balance	12,941,000	13,226,000
Goodwill, Impaired, Accumulated Impairment Loss	0
All Other [Member]
Carrying amount of goodwill by segment
Goodwill, Beginning Balance	1,559,867,000	1,532,799,000
Acquisitions & divestitures	24,206,000	37,122,000
Impairment
Foreign currency translation	(2,504,000)	(6,065,000)
Transfer of assets held for sale	(183,131,000)
Intersegment goodwill transfers	(186,880,000)	(3,989,000)
Goodwill, Ending Balance	1,211,558,000	1,559,867,000
Goodwill, Impaired, Accumulated Impairment Loss	$ 46,484,000

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Goodwill and Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Goodwill:
Impairment			$ 90,000
Intangible Assets:
Amortization	255,338	207,427	197,469
Impairment		1,006	15,568
Amortization and impairment of goodwill and other intangible assets	$ 255,338	$ 208,433	$ 303,037

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Stock-Based Compensation (Details 3)	12 Months Ended
	Dec. 31, 2012 Y	Dec. 31, 2011 Y	Dec. 31, 2010 Y
Summary of assumptions used in option models
Risk-free interest rate, minimum	0.20%	0.30%	0.40%
Risk-free interest rate, maximum	2.10%	3.80%	3.90%
Weighted-average volatility	25.00%	25.00%	25.00%
Dividend yield	2.61%	2.80%	2.78%
Expected years until exercise, minimum	7.6	7.6	7.5
Expected years until exercise, maximum	7.8	7.9	7.8

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Stock-Based Compensation (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary of stock-based compensation expense
Pre-tax compensation expense	$ 56,374	$ 56,443	$ 51,858
Tax benefit	(17,343)	(17,822)	(15,565)
Total stock-based compensation recorded as expense, net of tax	$ 39,031	$ 38,621	$ 36,293

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2011	Jan. 31, 2012	Jun. 30, 2011
Document and Entity Information [Abstract]
Entity Registrant Name	ILLINOIS TOOL WORKS INC
Entity Central Index Key	0000049826
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 23,100,000,000
Entity Common Stock, Shares Outstanding		483,773,784

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Segment Information (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating Revenues by Geographic Region:
Operating Revenues by Operating Segment	$ 17,786,583	$ 15,415,692	$ 13,572,996
United States [Member]
Operating Revenues by Geographic Region:
Operating Revenues by Operating Segment	7,379,219	6,461,993	5,708,035
Europe [Member]
Operating Revenues by Geographic Region:
Operating Revenues by Operating Segment	5,491,704	4,806,027	4,507,939
Asia [Member]
Operating Revenues by Geographic Region:
Operating Revenues by Operating Segment	1,931,607	1,697,969	1,241,173
Other North America [Member]
Operating Revenues by Geographic Region:
Operating Revenues by Operating Segment	1,161,179	1,018,034	821,409
Australia/New Zealand [Member]
Operating Revenues by Geographic Region:
Operating Revenues by Operating Segment	884,660	780,416	699,945
Other Geographic Region [Member]
Operating Revenues by Geographic Region:
Operating Revenues by Operating Segment	$ 938,214	$ 651,253	$ 594,495

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Other Income (Expense)

12 Months Ended

Dec. 31, 2011

Other Income (Expense) [Abstract]

Other Income (Expense)

Other Income (Expense) consisted of the following:

In Thousands	2011			2010			2009
Interest income	$	40,276		$	24,065		$	16,649
Investment income		17,486			20,808			4,944
Losses on foreign currency transactions		(4,272	)		(16,664	)		(21,284	)
Other, net		349			(18,225	)		(4,763	)
	$	53,839		$	9,984		$	(4,454	)

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Income Taxes (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010
Income Taxes (Textual) [Abstract]
Remaining undistributed earnings of certain international subsidiaries			$ 6,300,000,000	$ 5,700,000,000
Foreign tax credit carryovers			871,000	94,100,000
Tax positions included in unrecognized tax benefits that would impact the Company's effective tax rate if recognized			437,000,000
Discrete tax charge reflecting health care reform legislation		21,881,000
Decrease in unrecognized tax benefits resulting from Australian tax matter	197,000,000
Accrual for interest and penalties related to income tax matters			1,775,000	40,000,000
Decrease in unrecognized tax benefits resulting from resolution of U.S. tax matter	179,000,000
Discrete non-cash tax benefit resulting from Australian Tax Office matter	$ 165,927,000

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Investments (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2002 Mobile telecommunications equipment [Member]	Dec. 31, 2003 Air traffic control equipment [Member]
Investments (Additional Textual) [Abstract]
Cash investments for leveraged lease transactions				$ 144,676,000	$ 48,763,000
Investments (Textual) [Abstract]
Deferred tax liabilities related to leases of equipment	54,262,000	56,170,000
Income from leveraged leases	$ 13,372,000	$ 10,513,000	$ 7,618,000
Percentage of interest in venture capital limited partnership	25.00%
Percentage of interest in partnership with a residential construction developer	50.00%

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Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Statement of Comprehensive Income [Abstract]
Net Income	$ 2,071,384	$ 1,502,952	$ 972,697
Other Comprehensive Income:
Foreign currency translation adjustments	(140,521)	153,230	301,112
Pension and other postretirement benefit adjustments, net of tax	(62,411)	24,966	(62,271)
Comprehensive Income	$ 1,868,452	$ 1,681,148	$ 1,211,538

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Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Discontinued Operations – The Company periodically reviews its operations for businesses which may no longer be aligned with its long-term objectives. In April 2011, the Company entered into a definitive agreement to sell its finishing group of businesses included within the All Other segment to Graco Inc. in a $650,000,000 cash transaction. In December 2011, the Federal Trade Commission (“FTC”) filed a complaint challenging Graco’s acquisition of the finishing business. The Company intends to divest the finishing business in 2012. The finishing business has been classified as held for sale beginning in the second quarter of 2011.

In the second quarter of 2011, the Company’s Board of Directors approved plans to divest a consumer packaging business in the All Other segment and an electronic components business in the Power Systems & Electronics segment. The electronic components business was sold in the fourth quarter of 2011. The Company expects to divest the consumer packaging business in 2012. The consumer packaging business has been classified as held for sale beginning in the second quarter of 2011.

The Company exited a flooring business in the Decorative Surfaces segment in early 2011 and sold a security printing business in the All Other segment in the third quarter of 2010.

In 2008, the Company’s Board of Directors authorized the divestiture of the Click Commerce industrial software business which was previously reported in the All Other segment. In the second quarter of 2009, the Company completed the sale of the Click Commerce business. Additionally, in 2009, the Company sold an automotive components business which was previously reported in the Transportation segment.

The consolidated statement of income and the notes to financial statements have been restated to present the operating results of the held for sale and previously divested or exited businesses discussed above as discontinued operations for 2011, 2010 and 2009.

Results of the discontinued operations for the years ended December 31, 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Operating revenues	$	470,252		$	432,705		$	420,609
Income before taxes	$	81,602		$	84,912		$	5,080
Income tax expense		(27,232	)		(34,398	)		(1,021	)
Income from discontinued operations	$	54,370		$	50,514		$	4,059

Income before taxes from discontinued operations included a $3,675,000 loss related to the sale of the electronics components business in 2011, a $19,559,000 gain related to the sale of the security printing business in 2010, and losses of $27,665,000 related to the sale of the Click Commerce and automotive components businesses in 2009.

There were no businesses held for sale as of December 31, 2010 and 2009. The assets and liabilities of the held for sale finishing and consumer packaging businesses discussed above were included in assets and liabilities held for sale in the statement of financial position as of December 31, 2011 as follows:

In Thousands	December 31, 2011
Trade receivables	$	71,684
Inventories		55,642
Net plant and equipment		44,635
Goodwill and intangible assets		201,526
Other		12,837
Total assets held for sale	$	386,324
Accounts payable	$	21,672
Accrued expenses		54,723
Other		30,453
Total liabilities held for sale	$	106,848

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Consolidation and Translation

12 Months Ended

Dec. 31, 2011

Consolidation and Translation [Abstract]

Consolidation and Translation

Consolidation and Translation—The financial statements include the Company and its majority-owned subsidiaries. All significant intercompany transactions are eliminated from the financial statements.

Foreign subsidiaries’ assets and liabilities are translated to U.S. dollars at end-of-period exchange rates. Revenues and expenses are translated at average rates for the period. Translation adjustments are reported as a component of accumulated other comprehensive income in stockholders’ equity.

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Inventories

12 Months Ended

Dec. 31, 2011

Inventories [Abstract]

Inventories

Inventories at December 31, 2011 and 2010 were as follows:

In Thousands	2011		2010
Raw material	$	596,129	$	553,089
Work-in-process		155,896		165,292
Finished goods		963,834		916,475
	$	1,715,859	$	1,634,856

Inventories are stated at the lower of cost or market and include material, labor and factory overhead. The last-in, first-out (“LIFO”) method is used to determine the cost of the inventories of approximately 44% of the U.S. inventories. Inventories priced at LIFO were approximately 22% and 21% of total inventories as of December 31, 2011 and 2010, respectively. The first-in, first-out (“FIFO”) method, which approximates current cost, is used for all other inventories. If the FIFO method was used for all inventories, total inventories would have been approximately $127,725,000 and $122,888,000 higher than reported at December 31, 2011 and 2010, respectively.

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Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Income Taxes—The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes are determined based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities given the provisions of the enacted tax laws. The components of the provision for income taxes were as shown below:

In Thousands	2011			2010			2009
U.S. Federal income taxes:
Current	$	514,798		$	396,880		$	226,615
Deferred		(33,733	)		(45,630	)		(21,213	)
Benefit of net operating loss and foreign tax credits carryforwards		—			—			(85,898	)
		481,065			351,250			119,504
Foreign income taxes:
Current		147,425			266,384			334,227
Deferred		(82,069	)		(19,615	)		(189,995	)
Benefit of net operating loss carryforwards		(4,237	)		(3,134	)		(30,820	)
		61,119			243,635			113,412
State income taxes:
Current		65,122			51,530			38,836
Deferred		(31,357	)		(2,837	)		(22,527	)
Benefit of net operating loss carryforwards		(249	)		(7,178	)		(3,943	)
		33,516			41,515			12,366
	$	575,700		$	636,400		$	245,282

Income from continuing operations before income taxes for domestic and foreign operations was as follows:

In Thousands	2011		2010		2009
Domestic	$	1,452,268	$	1,216,749	$	473,341
Foreign		1,140,446		872,089		740,579
	$	2,592,714	$	2,088,838	$	1,213,920

The reconciliation between the U.S. Federal statutory tax rate and the effective tax rate was as follows:

	2011			2010			2009
U.S. Federal statutory tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of U.S. Federal tax benefit		1.1			1.2			0.8
Nondeductible goodwill impairment		—			—			2.5
Differences between U.S. Federal statutory and foreign tax rates		(2.7	)		(2.0	)		(3.3	)
Nontaxable foreign interest income		(3.6	)		(3.4	)		(4.6	)
Foreign tax credit related to a global legal structure reorganization		—			—			(7.0	)
German tax audit settlement		—			—			(4.7	)
Australian court decision		(6.4	)		—			—
Tax effect of foreign dividends		0.4			0.5			1.3
Tax relief for U.S. manufacturers		(1.3	)		(1.3	)		(0.7	)
Other, net		(0.3	)		0.5			0.9
Effective tax rate		22.2	%		30.5	%		20.2	%

Deferred U.S. Federal income taxes and foreign withholding taxes have not been provided on the remaining undistributed earnings of certain international subsidiaries of approximately $6,300,000,000 and $5,700,000,000 as of December 31, 2011 and 2010, respectively, as these earnings are considered permanently invested. Upon repatriation of these earnings to the U.S. in the form of dividends or otherwise, the Company may be subject to U.S. income taxes and foreign withholding taxes. The actual U.S. tax cost would depend on income tax laws and circumstances at the time of distribution. Determination of the related tax liability is not practicable because of the complexities associated with the hypothetical calculation.

The components of deferred income tax assets and liabilities at December 31, 2011 and 2010 were as follows:

	2011						2010
In Thousands	Asset			Liability			Asset			Liability
Goodwill and intangible assets	$	355,412		$	(786,815	)	$	386,662		$	(758,136	)
Inventory reserves, capitalized tax cost and LIFO inventory		75,974			(12,999	)		65,592			(11,961	)
Investments		36,017			(56,626	)		33,849			(57,196	)
Plant and equipment		27,665			(106,839	)		37,017			(90,505	)
Accrued expenses and reserves		78,961			—			77,169			—
Employee benefit accruals		350,829			—			335,668			—
Foreign tax credit carryforwards		11,806			—			94,100			—
Net operating loss carryforwards		622,607			—			528,915			—
Capital loss carryforwards		34,499			—			34,564			—
Allowances for uncollectible accounts		19,864			—			17,813			—
Pension liabilities		113,423			—			116,268			—
Deferred intercompany deductions		460,423			—			240,233			—
Other		123,554			(21,206	)		115,794			(32,059	)
Gross deferred income tax assets (liabilities)		2,311,034			(984,485	)		2,083,644			(949,857	)
Valuation allowances		(448,587	)		—			(411,565	)		—
Total deferred income tax assets (liabilities)	$	1,862,447		$	(984,485	)	$	1,672,079		$	(949,857	)

Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The valuation allowances recorded at December 31, 2011 and 2010 relate primarily to certain net operating loss carryforwards and capital loss carryforwards.

At December 31, 2011, the Company had net operating loss carryforwards available to offset future taxable income in the U.S. and certain foreign jurisdictions, which expire as follows:

In Thousands	Gross Net Operating Loss Carryforwards
2012	$	8,610
2013		8,116
2014		5,932
2015		6,945
2016		8,247
2017		10,813
2018		32,390
2019		76,834
2020		83,794
2021		18,728
2022		14,639
2023		12,518
2024		12,324
2025		11,065
2026		1,622
2027		4,928
2028		3,493
2029		4,490
2030		5,476
Do not expire		1,704,783
	$	2,035,747

The Company has foreign tax credit carryovers of $871,000 as of December 31, 2011 and $94,100,000 as of December 31, 2010 that are available for use by the Company between 2012 and 2020.

The changes in the amount of unrecognized tax benefits during 2011, 2010 and 2009 were as follows:

In Thousands	2011			2010			2009
Beginning balance	$	717,711		$	724,777		$	799,647
Additions based on tax positions related to the current year		43,042			57,491			122,714
Additions for tax positions of prior years		74,178			56,034			122,241
Reductions for tax positions of prior years		(16,305	)		(96,161	)		(17,973	)
Settlements		(376,598	)		—			(383,058	)
Foreign currency translation		(4,850	)		(24,430	)		81,206
Ending balance	$	437,178		$	717,711		$	724,777

Included in the balance at December 31, 2011 are approximately $437,000,000 of tax positions that, if recognized, would impact the Company’s effective tax rate.

The Company has been litigating its dispute with the Australian Tax Office over the tax treatment of an intercompany financing transaction between the U.S. and Australia. The case was heard before the Federal Court of Australia, Victoria, in September 2010. The proceedings resulted from the Company’s appeal of a decision by the Australian Tax Commissioner to disallow income tax deductions for the income tax years 2002 through 2005 and the assessment of withholding taxes for income tax year 2003. The Company also contested the Commissioner’s similar determination for income tax years 2006 and 2007; however, the parties agreed to follow the Court’s decision made on the earlier years. On February 4, 2011, the Federal Court of Australia, Victoria, decided in the Company’s favor with respect to a significant portion of the income tax deductions. The Court issued the final orders on February 18, 2011. Based on this decision, the Company decreased its unrecognized tax benefits related to this matter by approximately $197,000,000 and recorded a favorable discrete non-cash tax benefit to reduce tax expense by $165,927,000 in the first quarter of 2011. The Australian Tax Office has appealed the timing of certain of the deductions, the outcome of which is not expected to be material.

During the first quarter of 2011, the Company resolved an issue with the Internal Revenue Service in the United States related to a deduction for foreign exchange losses on an intercompany loan that resulted in a decrease in unrecognized tax benefits of approximately $179,000,000.

In March 2010, the Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act were signed into law. As a result, future tax deductions for retiree prescription drug coverage will be reduced by the amount of subsidies received starting in 2013. In the first quarter of 2010, the Company recorded a discrete tax charge of $21,881,000 for the impact of the health care reform legislation.

The Company settled several items during 2009 related to its German and U.S. tax audits. The most significant issues related to a financing transaction, leveraged leases and mortgage-backed securities.

The Company files numerous consolidated and separate tax returns in the U.S. Federal jurisdiction and in many state and foreign jurisdictions. The following table summarizes the open tax years for the Company’s major jurisdictions:

Jurisdiction	Open Tax Years
United States – Federal	2004-2011
United Kingdom	2000-2011
Germany	2006-2011
France	2004-2011
Australia	2002-2011

The Company recognizes interest and penalties related to income tax matters in income tax expense. The accrual for interest and penalties, as of December 31, 2011 and 2010 was $1,775,000 and $40,000,000, respectively.

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Inventories (Details) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Inventories
Raw material	$ 596,129,000	$ 553,089,000
Work-in-process	155,896,000	165,292,000
Finished goods	963,834,000	916,475,000
Total Inventories	1,715,859,000	1,634,856,000
Inventories (Textual) [Abstract]
Percentage of U.S. inventory costed under LIFO method	44.00%
Percentage of total inventories priced at LIFO	22.00%	21.00%
Increase in total inventories if the FIFO method was used for all inventories	$ 127,725,000	$ 122,888,000

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Research and Development Expenses

12 Months Ended

Dec. 31, 2011

Research and Development Expenses [Abstract]

Research and Development Expenses

Research and Development Expenses are recorded as expense in the year incurred. These costs were $242,979,000 in 2011, $213,339,000 in 2010 and $191,859,000 in 2009.

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

In Thousands	2011			2010			2009
Operating revenues:
Transportation	$	3,108,349		$	2,522,226		$	2,092,249
Power Systems & Electronics		2,872,161			2,409,204			2,004,402
Industrial Packaging		2,612,108			2,272,059			1,940,887
Food Equipment		1,982,187			1,857,051			1,862,950
Construction Products		1,958,370			1,753,485			1,547,365
Polymers & Fluids		1,364,004			1,106,025			980,305
Decorative Surfaces		1,083,157			987,692			971,900
All Other		2,889,699			2,598,475			2,238,604
Intersegment revenues		(83,452	)		(90,525	)		(65,666	)
	$	17,786,583		$	15,415,692		$	13,572,996
Operating income:
Transportation	$	474,592		$	369,454		$	155,373
Power Systems & Electronics		580,674			469,244			198,673
Industrial Packaging		273,342			231,303			95,128
Food Equipment		303,771			255,060			255,891
Construction Products		225,448			192,070			104,795
Polymers & Fluids		208,873			188,696			150,065
Decorative Surfaces		132,394			117,333			113,227
All Other		531,914			430,857			309,811
	$	2,731,008		$	2,254,017		$	1,382,963
Depreciation and amortization and impairment of goodwill and intangible assets:
Transportation	$	125,988		$	97,784		$	114,865
Power Systems & Electronics		87,346			78,523			171,065
Industrial Packaging		72,244			69,513			71,564
Food Equipment		49,655			44,446			42,472
Construction Products		58,084			59,496			75,007
Polymers & Fluids		48,889			38,942			40,174
Decorative Surfaces		21,946			20,353			23,958
All Other		129,857			139,729			145,736
	$	594,009		$	548,786		$	684,841
Plant and equipment additions:
Transportation	$	97,735		$	70,743		$	50,006
Power Systems & Electronics		42,623			25,849			24,776
Industrial Packaging		27,969			34,324			27,151
Food Equipment		35,859			30,847			39,039
Construction Products		37,332			27,823			31,280
Polymers & Fluids		22,053			13,283			9,417
Decorative Surfaces		22,590			23,490			12,671
All Other		67,247			61,400			61,399
	$	353,408		$	287,759		$	255,739
Identifiable assets:
Transportation	$	2,657,457		$	1,946,633
Power Systems & Electronics		2,407,644			1,903,321
Industrial Packaging		1,933,782			1,889,068
Food Equipment		1,022,380			1,030,913
Construction Products		1,504,850			1,488,119
Polymers & Fluids		1,411,665			1,336,996
Decorative Surfaces		399,915			386,398
All Other		2,644,120			2,995,165
Corporate		3,615,377			3,435,698
Assets held for sale		386,324			—
	$	17,983,514		$	16,412,311

Operating Revenues by Geographic Region

In Thousands	2011		2010		2009
Operating Revenues by Geographic Region:
United States	$	7,379,219	$	6,461,993	$	5,708,035
Europe		5,491,704		4,806,027		4,507,939
Asia		1,931,607		1,697,969		1,241,173
Other North America		1,161,179		1,018,034		821,409
Australia/New Zealand		884,660		780,416		699,945
Other		938,214		651,253		594,495
	$	17,786,583	$	15,415,692	$	13,572,996

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Accrued Expenses (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Accrued Expenses
Compensation and employee benefits	$ 550,955	$ 558,340
Deferred revenue and customer deposits	245,465	264,472
Rebates	162,019	137,554
Warranties	55,203	63,665
Current portion of pension and other postretirement benefit obligations	29,226	24,403
Other	392,735	342,962
Accrued expenses	1,435,603	1,391,396
Changes in Accrued Product Warranties
Beginning balance	63,665	62,366	67,490
Charges	(47,256)	(42,907)	(44,289)
Provision charged to expense	37,489	44,652	35,691
Acquisitions and divesture	3,262	690	1,929
Foreign currency translation	(239)	(1,136)	1,545
Transfer to liabilities held for sale	(1,718)
Ending balance	$ 55,203	$ 63,665	$ 62,366

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Acquisitions

12 Months Ended

Dec. 31, 2011

Acquisitions [Abstract]

Acquisitions

Acquisitions—The Company accounts for acquisitions under the acquisition method, in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired companies are included in the Company’s consolidated financial statements from the date of acquisition. Acquisitions, individually and in the aggregate, did not materially affect the Company’s results of operations or financial position for any period presented. Summarized information related to acquisitions is as follows:

In Thousands except number of acquisitions	2011		2010		2009
Number of acquisitions		28		24		20
Net cash paid during the year	$	1,308,164	$	497,435	$	281,404

The premium over tangible net assets recorded for acquisitions based on purchase price allocations during 2011, 2010 and 2009 was as follows:

	2011				2010				2009
In Thousands except for weighted-average lives (years)	Weighted- Average Life		Premium Recorded		Weighted- Average Life		Premium Recorded		Weighted- Average Life		Premium Recorded
Goodwill			$	475,634			$	219,222			$	95,936
Amortizable intangible assets:
Customer lists and relationships		12.2		362,387		11.8		120,845		10.7		48,152
Patents and proprietary technology		9.6		98,117		10.9		31,986		12.3		30,421
Trademarks and brands		17.3		245,295		14.9		70,667		14.0		19,732
Noncompete agreements		5.0		26,818		5.3		4,617		6.2		8,859
Other		1.8		10,307		4.9		12,572		4.4		6,846
Total amortizable intangible assets		13.1		742,924		12.1		240,687		10.9		114,010
Indefinite-lived intangible assets:
Trademarks and brands				5,481				—				12,254
Total premium recorded			$	1,224,039			$	459,909			$	222,200

Of the total goodwill recorded for acquisitions, the Company expects goodwill of $302,146,000 in 2011, $51,304,000 in 2010 and $72,216,000 in 2009 will be tax deductible.

On January 1, 2009, the Company adopted new accounting guidance related to business combinations. The new accounting guidance requires an entity to recognize assets acquired, liabilities assumed, contractual contingencies and contingent consideration at their fair value on the acquisition date. The new guidance also requires prospectively that (1) acquisition-related costs be expensed as incurred; (2) restructuring costs generally be recognized as a post-acquisition expense; and (3) changes in deferred tax asset valuation allowances and income tax uncertainties after the measurement period impact income tax expense. Upon adoption of the new guidance, the Company recorded an after-tax charge to income reinvested in the business of $1,055,000 in 2009.

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Operating Revenues

12 Months Ended

Dec. 31, 2011

Operating Revenues [Abstract]

Operating Revenues

Operating Revenues are recognized when persuasive evidence of an arrangement exists, product has shipped and the risks and rewards of ownership have transferred or services have been rendered, the price to the customer is fixed or determinable, and collectibility is reasonably assured, which is generally at the time of product shipment. Typical sales arrangements are for standard products and provide for transfer of ownership and risk of loss at the time of shipment. In limited circumstances where significant obligations to the customer are unfulfilled at the time of shipment, typically involving installation and customer acceptance, revenue recognition is deferred until such obligations have been completed. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are estimated at the time of sale based on historical experience and known trends and are recorded as a reduction in reported revenues. No single customer accounted for more than 5% of consolidated revenues in 2011, 2010 or 2009.

In October 2009, new accounting guidance was issued on multiple-deliverable revenue arrangements. The new accounting guidance amends the accounting for multiple-deliverable arrangements to enable the vendor to account for product or services separately rather than as a combined unit. The guidance establishes a hierarchy for determining the selling price of a deliverable, which is based on: (1) vendor-specific objective evidence, (2) third-party evidence or (3) estimates. The Company adopted the new accounting guidance on January 1, 2011, and the adoption did not materially affect the Company’s financial position or results of operations.

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Rental Expense

12 Months Ended

Dec. 31, 2011

Rental Expense [Abstract]

Rental Expense

Rental Expense was $178,439,000 in 2011, $165,171,000 in 2010 and $170,561,000 in 2009. Future minimum lease payments under non-cancellable leases for the years ending December 31 are as follows:

In Thousands
2012	$	156,760
2013		123,549
2014		92,642
2015		65,566
2016		50,948
2017 and future years		87,348
	$	576,813

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Discontinued Operations (Details 1) (Finishing Consumer Packaging and Businesses [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Finishing Consumer Packaging and Businesses [Member]
The assets and liabilities of the finishing, consumer packaging and electronics components businesses
Trade receivables	$ 71,684
Inventories	55,642
Net plant and equipment	44,635
Goodwill and intangible assets	201,526
Other	12,837
Total assets held for sale	386,324
Accounts payable	21,672
Accrued expenses	54,723
Other	30,453
Total liabilities held for sale	$ 106,848

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Stock-Based Compensation (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2011
Summary of activity related to non-vested restricted stock units
Number of Shares, Unvested, January 1, 2011	1,721,481
Weighted-Average Grant-Date Fair Value, Unvested, January 1, 2011	$ 34.84
Number of Shares, Granted	589,772
Weighted Average Grant Date Fair Value, Granted	$ 51.73
Number of Shares, Vested	(34,630)
Weighted Average Grant Date Fair Value, Vested	$ 34.38
Number of Shares, Cancelled	(102,175)
Weighted Average Grant Date Fair Value, Cancelled	$ 38.36
Number of Shares, Unvested, December 31, 2011	2,174,448
Weighted-Average Grant-Date Fair Value, Unvested, December 31, 2011	$ 39.27

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Prepaid Expenses and Other Current Assets (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Prepaid Expense and Other Assets, Current [Abstract]
Income tax refunds receivable	$ 111,663	$ 10,937
Value-added-tax receivables	65,196	59,954
Vendor advances	39,875	35,618
Insurance	24,082	21,111
Other	143,675	138,567
Total prepaid expenses and other current assets	$ 384,491	$ 266,187

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Acquisitions (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Acquisitions	Dec. 31, 2010 Acquisitions	Dec. 31, 2009 Acquisitions
Summarized information related to acquisitions
Number of acquisitions	28	24	20
Net cash paid during the year	$ 1,308,164	$ 497,435	$ 281,404

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Pension and Other Postretirement Benefits (Details 4) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
The amounts recognized in the statement of financial position
Liabilities held for sale	$ (29,226)	$ (24,403)
Pension [Member]
The amounts recognized in the statement of financial position
Other noncurrent liabilities	(480,908)	(423,497)
Net liability at December 31	(474,362)	(422,852)
The pre-tax amounts recognized in accumulated other comprehensive income
Net actuarial loss (gain)	848,368	758,901
Prior service cost	3,981	4,758
Net transition obligation	52	68
Net Loss, Prior service cost and Net transaction obligation, Total	852,401	763,727
Accumulated benefit obligation	2,193,199	2,084,663
Plans with accumulated benefit obligation in excess of plan assets
Projected benefit obligation	1,837,761	1,722,577
Accumulated benefit obligation	1,665,360	1,582,158
Fair value of plan assets	1,413,557	1,379,466
Other Postretirement Benefits [Member]
The amounts recognized in the statement of financial position
Other noncurrent liabilities	(271,583)	(259,727)
Net liability at December 31	(279,350)	(268,752)
The pre-tax amounts recognized in accumulated other comprehensive income
Net actuarial loss (gain)	15,406	(1,840)
Prior service cost	4,844	11,292
Net transition obligation	0
Net Loss, Prior service cost and Net transaction obligation, Total	20,250	9,452
Assets held for sale [Member] | Pension [Member]
The amounts recognized in the statement of financial position
Assets held for sale	75
Accrued expenses [Member] | Pension [Member]
The amounts recognized in the statement of financial position
Liabilities held for sale	(21,459)	(15,378)
Accrued expenses [Member] | Other Postretirement Benefits [Member]
The amounts recognized in the statement of financial position
Liabilities held for sale	(7,767)	(9,025)
Other Assets [Member] | Pension [Member]
The amounts recognized in the statement of financial position
Other assets	40,687	16,023
Other Assets [Member] | Other Postretirement Benefits [Member]
The amounts recognized in the statement of financial position
Other assets	0
Liabilities Held for Sale [Member] | Pension [Member]
The amounts recognized in the statement of financial position
Liabilities held for sale	$ (12,757)

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Discontinued Operations (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Results of discontinued operations
Operating revenues	$ 470,252	$ 432,705	$ 420,609
Income before taxes	81,602	84,912	5,080
Income tax (expense) benefit	(27,232)	(34,398)	(1,021)
Income from discontinued operations	$ 54,370	$ 50,514	$ 4,059

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Goodwill And Intangible Assets (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2009
Summary of goodwill and intangible assets
Goodwill, Book Value		$ 449,000
Goodwill, Fair Value		359,000
Goodwill, impairment charges		90,000
Intangible Assets, Book Value		98,544
Intangible Assets, Fair value		82,976
Intangible Assets, Total Impairment Charges		$ 15,568

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Commitments and Contingencies —The Company is subject to various legal proceedings and claims that arise in the ordinary course of business, including those involving environmental, product liability (including toxic tort) and general liability claims. The Company accrues for such liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated. Such accruals are based on developments to date, the Company’s estimates of the outcomes of these matters and its experience in contesting, litigating and settling other similar matters. The Company believes resolution of these matters, individually and in the aggregate, will not have a material adverse effect on the Company’s financial position, liquidity or future operations.

Among the toxic tort cases in which the Company is a defendant, the Company as well as its subsidiaries Hobart Brothers Company and Miller Electric Mfg. Co., have been named, along with numerous other defendants, in lawsuits alleging injury from exposure to welding consumables. The plaintiffs in these suits claim unspecified damages for injuries resulting from the plaintiffs’ alleged exposure to asbestos, manganese and/or toxic fumes in connection with the welding process. Based upon the Company’s experience in defending these claims, the Company believes that the resolution of these proceedings will not have a material adverse effect on the Company’s operating results, financial position or cash flows. The Company has not recorded any significant reserves related to these cases.

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets [Abstract]

Amortization and impairment of goodwill and other intangible assets

In Thousands	2011		2010		2009
Goodwill:
Impairment	$	—	$	—	$	90,000
Intangible Assets:
Amortization		255,338		207,427		197,469
Impairment		—		1,006		15,568
	$	255,338	$	208,433	$	303,037

Summary of goodwill and intangible assets

In Thousands	Book Value		Fair Value		Total Impairment Charges
Goodwill	$	449,000	$	359,000	$	90,000
Intangible assets		98,544		82,976		15,568

Carrying amount of goodwill by segment

In Thousands	Transpor- tation			Power Systems & Electronics			Industrial Packaging			Food Equipment			Construction Products			Polymers & Fluids			Decorative Surfaces			All Other			Total
Balance, Dec 31, 2009	$	538,271		$	420,829		$	765,179		$	209,025		$	558,504		$	739,101		$	13,405		$	1,532,799		$	4,777,113
2010 activity:
Acquisitions & divestitures		50,800			4,554			1,242			2,676			10,817			84,097			—			37,122			191,308
Impairment charges		—			—			—			—			—			—			—			—			—
Foreign currency translation		(4,456	)		3,808			2,133			(7,408	)		16,584			(1,020	)		(179	)		(6,065	)		3,397
Intersegment goodwill transfers		(17,945	)		(292	)		936			—			(962	)		22,252			—			(3,989	)		—
Balance, Dec 31, 2010	$	566,670		$	428,899		$	769,490		$	204,293		$	584,943		$	844,430		$	13,226		$	1,559,867		$	4,971,818
2011 activity:
Acquisitions & divestitures		118,286			242,257			25,166			(1,175	)		5,515			49,843			—			24,206			464,098
Impairment charges		—			—			—			—			—			—			—			—			—
Foreign currency translation		(9,514	)		(2,233	)		(11,252	)		(4,579	)		(216	)		(17,265	)		(285	)		(2,504	)		(47,848	)
Transfer of assets held for sale		—			(7,336	)		—			—			—			—			—			(183,131	)		(190,467	)
Intersegment goodwill transfers		1,464			341,857			—			—			—			(156,441	)		—			(186,880	)		—
Balance, Dec 31, 2011	$	676,906		$	1,003,444		$	783,404		$	198,539		$	590,242		$	720,567		$	12,941		$	1,211,558		$	5,197,601
Accumulated goodwill impairment charges, Dec 31, 2011	$	36,276		$	87,696		$	114,079		$	59,797		$	6,574		$	14,821		$	—		$	46,484		$	365,727

Intangible assets

	2011							2010
In Thousands	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Amortizable intangible assets:
Customer lists and relationships	$	1,608,027	$	(522,155	)	$	1,085,872	$	1,252,748	$	(412,482	)	$	840,266
Patents and proprietary technology		561,205		(235,618	)		325,587		467,226		(210,359	)		256,867
Trademarks and brands		699,586		(157,373	)		542,213		467,838		(119,010	)		348,828
Software		201,009		(172,058	)		28,951		199,560		(154,188	)		45,372
Noncompete agreements		181,379		(148,088	)		33,291		158,363		(135,754	)		22,609
Other		116,994		(102,274	)		14,720		110,105		(92,984	)		17,121
Total amortizable intangible assets		3,368,200		(1,337,566	)		2,030,634		2,655,840		(1,124,777	)		1,531,063
Indefinite-lived intangible assets:
Trademarks and brands		202,744		—			202,744		199,953		—			199,953
Total intangible assets	$	3,570,944	$	(1,337,566	)	$	2,233,378	$	2,855,793	$	(1,124,777	)	$	1,731,016

Estimated amortization expense of intangible assets.

In Thousands
2012	$	258,868
2013		237,114
2014		222,619
2015		211,273
2016		200,043

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Cash and Equivalents

12 Months Ended

Dec. 31, 2011

Cash and Equivalents [Abstract]

Cash and Equivalents

Cash and Equivalents included interest-bearing instruments of $551,342,000 at December 31, 2011 and $694,272,000 at December 31, 2010. Interest-bearing instruments have maturities of 90 days or less and are stated at cost, which approximates fair value.

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Other Noncurrent Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Other Noncurrent Liabilities
Pension benefit obligation	$ 480,908	$ 423,497
Postretirement benefit obligation	271,583	259,727
Other	615,080	397,559
Other Noncurrent Liabilities	$ 1,367,571	$ 1,080,783

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Investments

12 Months Ended

Dec. 31, 2011

Investments Disclosure [Abstract]

Investments

Investments as of December 31, 2011 and 2010 consisted of the following:

In Thousands	2011		2010
Leases of equipment	$	275,377	$	281,067
Venture capital limited partnership		42,321		50,112
Properties held for sale		41,846		45,125
Property developments		26,081		25,454
Affordable housing limited partnerships		23,281		39,002
	$	408,906	$	440,760

Leases of Equipment

The components of the investment in leases of equipment at December 31, 2011 and 2010 were as shown below:

In Thousands	2011			2010
Leveraged and direct financing leases:
Gross lease contracts receivable, net of nonrecourse debt service	$	130,284		$	145,687
Estimated residual value of leased assets		247,512			247,512
Unearned income		(109,834	)		(120,863	)
		267,962			272,336
Equipment under operating leases		7,415			8,731
	$	275,377		$	281,067

Deferred tax liabilities related to leases of equipment were $54,262,000 and $56,170,000 at December 31, 2011 and 2010, respectively.

The investment in leases of equipment at December 31, 2011 and 2010 consisted of the following types of equipment:

In Thousands	2011		2010
Telecommunications	$	170,834	$	178,946
Air traffic control		70,210		66,433
Aircraft		34,074		35,391
Manufacturing		259		297
	$	275,377	$	281,067

In 2002, the Company entered into leveraged leasing transactions related to mobile telecommunications equipment with two major European telecommunications companies with a cash investment of $144,676,000. In 2003, the Company entered into a leveraged lease transaction related to air traffic control equipment in Australia with a cash investment of $48,763,000. Under the terms of the telecommunications and air traffic control lease transactions, the lessees have made upfront payments to third-party financial institutions that are acting as payment undertakers. These payment undertakers are obligated to make the required scheduled payments directly to the nonrecourse debt holders and to the lessors, including the Company. In the event of default by the lessees, the Company has the right to recover its net investment from the payment undertakers. In addition, the lessees are required to purchase residual value insurance from a creditworthy third party at a date near the end of the lease term.

Income from leveraged leases was $13,372,000, $10,513,000, and $7,618,000 for the years ended December 31, 2011, 2010 and 2009, respectively. Unearned income related to leveraged leases is recognized as lease income over the life of the lease based on the effective yield of the lease. The Company adjusts recognition of lease income on its leveraged leases when there is a change in the assumptions affecting total income or the timing of cash flows associated with the lease. The residual values of leased assets are estimated at the inception of the lease based on market appraisals and reviewed for impairment at least annually.

Other Investments

The Company entered into a venture capital limited partnership in 2001 that invests primarily in late-stage venture capital opportunities. The Company has a 25% limited partnership interest and accounts for this investment using the equity method, whereby the Company recognizes its proportionate share of the partnership’s income or loss. The partnership’s financial statements are prepared on a mark-to-market basis.

The Company has entered into several affordable housing limited partnerships primarily to receive tax benefits in the form of tax credits and tax deductions from operating losses. These affordable housing investments are accounted for using the effective yield method, in which the investment is amortized to income tax expense as the tax benefits are received. The tax credits are credited to income tax expense as they are allocated to the Company.

The Company has invested in property developments with a residential construction developer through partnerships in which the Company has a 50% interest. These partnership investments are accounted for using the equity method, whereby the Company recognizes its proportionate share of the partnerships’ income or loss.

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Goodwill and Intangible Assets (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Estimated amortization expense of intangible assets
2012	$ 258,868
2013	237,114
2014	222,619
2015	211,273
2016	$ 200,043

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Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2011

Plant and Equipment [Abstract]

Range of useful lives used to depreciate plant and equipment

Buildings and improvements	5—50 years
Machinery and equipment	3—12 years
Equipment leased to others	Term of lease

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Pension and Other Postretirement Benefits (Details 7) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	$ 347,000	$ 310,864
Realized gains (losses)	4092	2231
Unrealized gains (losses)	7836	33869
Purchases and sales	5,897	(1,504)
Transfers	59,754	1,540
Ending Balance	424,579	347,000
Government securities [Member]
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	1,025	1,285
Realized gains (losses)	0	100
Unrealized gains (losses)	0	-49
Purchases and sales	0	(311)
Transfers	(1,025)
Ending Balance	0	1,025
Corporate Debt Securities [Member]
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	2,667	2,092
Realized gains (losses)	0	-452
Unrealized gains (losses)	118	624
Purchases and sales	2,000	(1,137)
Transfers	(765)	1,540
Ending Balance	4,020	2,667
Mortgage-backed securities [Member]
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	0	3,372
Realized gains (losses)	0	-947
Unrealized gains (losses)	0	844
Purchases and sales	0	(3,269)
Transfers	0
Ending Balance	0	0
Investment contracts with insurance companies [Member]
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	0
Unrealized gains (losses)	5794
Purchases and sales	2,192
Transfers	61,299
Ending Balance	69,285
Partnerships/private equity interests [Member]
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	77,587	68,847
Realized gains (losses)	4088	3547
Unrealized gains (losses)	4398	-538
Purchases and sales	796	5,731
Transfers	0
Ending Balance	86,869	77,587
Life insurance policies [Member]
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	265,711	233,042
Realized gains (losses)	0
Unrealized gains (losses)	-2253	32669
Purchases and sales	0
Transfers	0
Ending Balance	263,458	265,711
Other Postretirement Benefit Plan Assets, Total [Member]
Level 3 assets measured at fair value for pension and other postretirement benefit plans
Beginning Balance	10	2,226
Realized gains (losses)	4	-17
Unrealized gains (losses)	-221	319
Purchases and sales	909	(2,518)
Transfers	245
Ending Balance	$ 947	$ 10

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2011

Acquisitions [Abstract]

Summarized information related to acquisitions

In Thousands except number of acquisitions	2011		2010		2009
Number of acquisitions		28		24		20
Net cash paid during the year	$	1,308,164	$	497,435	$	281,404

Premium over tangible net assets recorded for acquisitions based on purchase price allocations

	2011				2010				2009
In Thousands except for weighted-average lives (years)	Weighted- Average Life		Premium Recorded		Weighted- Average Life		Premium Recorded		Weighted- Average Life		Premium Recorded
Goodwill			$	475,634			$	219,222			$	95,936
Amortizable intangible assets:
Customer lists and relationships		12.2		362,387		11.8		120,845		10.7		48,152
Patents and proprietary technology		9.6		98,117		10.9		31,986		12.3		30,421
Trademarks and brands		17.3		245,295		14.9		70,667		14.0		19,732
Noncompete agreements		5.0		26,818		5.3		4,617		6.2		8,859
Other		1.8		10,307		4.9		12,572		4.4		6,846
Total amortizable intangible assets		13.1		742,924		12.1		240,687		10.9		114,010
Indefinite-lived intangible assets:
Trademarks and brands				5,481				—				12,254
Total premium recorded			$	1,224,039			$	459,909			$	222,200

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Pension and Other Postretirement Benefits (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2012 Pension [Member]	Dec. 31, 2012 Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected current year contributions for pension and other postretirement plans				$ 165,000,000	$ 39,000,000
Pension and Other Postretirement Benefits (Textual) [Abstract]
Defined contribution plans, Expenses	$ 77,700,000	$ 69,300,000	$ 66,000,000
Target allocation for plan assets in equity securities, minimum	50.00%
Target allocation for plan assets in equity securities, maximum	65.00%
Target allocation for plan assets in debt securities, minimum	30.00%
Target allocation for plan assets in debt securities, maximum	45.00%
Target allocation for plan assets in real estate, minimum	0.00%
Target allocation for plan assets in real estate, maximum	2.00%
Target allocation for plan assets in other types of investments, minimum	0.00%
Target allocation for plan assets in other types of investments, maximum	10.00%
Maximum maturity period for cash on hand and investments included in Cash and Equivalents	90 days

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Statement of Financial Position (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current Assets:
Cash and equivalents	$ 1,177,875	$ 1,186,367
Trade receivables	2,818,892	2,581,592
Inventories	1,715,859	1,634,856
Deferred income taxes	365,905	301,486
Prepaid expenses and other current assets	384,491	266,187
Assets held for sale	386,324
Total current assets	6,849,346	5,970,488
Plant and Equipment:
Land	248,250	264,875
Buildings and improvements	1,566,742	1,574,593
Machinery and equipment	3,972,417	3,930,502
Equipment leased to others	187,387	187,284
Construction in progress	112,501	104,440
Gross plant and equipment	6,087,297	6,061,694
Accumulated depreciation	(4,061,901)	(3,995,538)
Net plant and equipment	2,025,396	2,066,156
Investments	408,906	440,760
Goodwill	5,197,601	4,971,818
Intangible assets	2,233,378	1,731,016
Deferred income taxes	633,832	615,326
Other assets	635,055	616,747
Total Assets	17,983,514	16,412,311
Current Liabilities:
Short-term debt	502,063	326,236
Accounts payable	696,776	749,489
Accrued expenses	1,435,603	1,391,396
Cash dividends payable	174,099	169,233
Income taxes payable	56,517	386,498
Deferred income taxes	4,821
Liabilities held for sale	106,848
Total current liabilities	2,976,727	3,022,852
Noncurrent Liabilities:
Long-term debt	3,488,198	2,542,087
Deferred income taxes	116,954	194,590
Other liabilities	1,367,571	1,080,783
Total noncurrent liabilities	4,972,723	3,817,460
Common stock:
Issued - 542,500,435 shares in 2011 and 538,505,782 shares in 2010	5,425	5,385
Additional paid-in-capital	686,155	460,806
Income reinvested in the business	11,794,184	10,407,946
Common stock held in treasury	(2,692,196)	(1,740,682)
Accumulated other comprehensive income	224,223	427,155
Noncontrolling interest	16,273	11,389
Total stockholders' equity	10,034,064	9,571,999
Total Liabilities and Stockholders' Equity	$ 17,983,514	$ 16,412,311

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Investments (Details 1) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Leveraged and direct financing leases:
Gross lease contracts receivable, net of nonrecourse debt service	$ 130,284	$ 145,687
Estimated residual value of leased assets	247,512	247,512
Unearned income	(109,834)	(120,863)
Total leveraged and direct financing leases	267,962	272,336
Equipment under operating leases	7,415	8,731
Total investment in leases of equipment	$ 275,377	$ 281,067

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International Reporting Lag

12 Months Ended

Dec. 31, 2011

Nature of Operations and International Reporting Lag [Abstract]

International Reporting Lag

International Reporting Lag — Prior to 2011, the Company’s international operations outside of North America had a fiscal reporting period that began on December 1 and ended on November 30. Effective January 1, 2011, the Company eliminated the one month lag for the reporting of its international operations outside of North America. As a result, the Company is now reporting both North American and international results on a calendar year basis. The Company determined that the elimination of the one month reporting lag was preferable because the same period-end reporting date improves overall financial reporting as the impact of current events, economic conditions and global trends are consistently reflected in the financial statements of the North American and international business units.

The Company has applied this change in accounting principle retrospectively to all prior financial statement periods presented. The impact of the elimination of the one month reporting lag for international operations outside of North America for the years ended December 31, 2010 and 2009 was as follows:

Increase (Decrease)
In Thousands Except per Share Amounts	2010			2009
Operating revenues	$	(21,796	)	$	91,574
Income from continuing operations		(24,877	)		26,023
Income from continuing operations per diluted share		(0.04	)		0.05
Net income		(24,241	)		25,688
Net income per diluted share		(0.04	)		0.05

The cumulative effect of adopting this change in accounting principle was recorded as an after-tax increase of $7,274,000 to income reinvested in the business as of January 1, 2009.

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2011

Stockholders' Equity [Abstract]

Summary of Common Stock, Additional Paid-In-Capital and Common Stock Held in Treasury

	Common Stock				Additional Paid-In- Capital			Common Stock Held in Treasury
In Thousands except shares	Shares		Amount		Amount			Shares			Amount
Balance, December 31, 2008		531,789,730	$	5,318	$	105,497			(32,674,759	)	$	(1,390,594	)
During 2009—
Shares issued for stock options		3,204,212		32		101,581			—			—
Shares issued for stock compensation and vesting of restricted stock		17,018		—		120			—			—
Stock compensation expense		—		—		51,858			—			—
Noncontrolling interest		—		—		(2,591	)		—			—
Tax benefits related to stock options		—		—		11,416			—			—
Tax benefits related to defined contribution plans		—		—		3,104			—			—
Balance, December 31, 2009		535,010,960		5,350		270,985			(32,674,759	)		(1,390,594	)
During 2010—
Shares issued for stock options		3,445,891		34		113,592			—			—
Shares issued for stock compensation and vesting of restricted stock		48,931		1		1,217			(1,998	)		(88	)
Stock compensation expense		—		—		56,443			—			—
Noncontrolling interest		—		—		(287	)		—			—
Tax benefits related to stock options		—		—		15,619			—			—
Tax benefits related to defined contribution plans		—		—		3,237			—			—
Repurchases of common stock		—		—		—			(8,084,724	)		(350,000	)
Balance, December 31, 2010		538,505,782		5,385		460,806			(40,761,481	)		(1,740,682	)
During 2011—
Shares issued for stock options		3,932,861		39		151,431			—			—
Shares issued for stock compensation and vesting of restricted stock		61,792		1		1,629			(24,796	)		(1,514	)
Stock compensation expense		—		—		56,374			—			—
Tax benefits related to stock options		—		—		12,594			—			—
Tax benefits related to defined contribution plans		—		—		3,321			—			—
Repurchases of common stock		—		—		—			(18,106,109	)		(950,000	)
Balance, December 31, 2011		542,500,435	$	5,425	$	686,155			(58,892,386	)	$	(2,692,196	)
Authorized, December 31, 2011		700,000,000

Changes in accumulated other comprehensive income

In Thousands	2011			2010		2009
Beginning balance	$	427,155		$	248,959	$	10,118
Foreign currency translation adjustments		(140,521	)		153,230		301,112
Pension and other postretirement benefits actuarial gains (losses) net of tax of $53,568 in 2011, $(2,978) in 2010 and $23,213 in 2009		(93,156	)		3,543		(71,197	)
Amortization of unrecognized pension and other postretirement benefits costs, net of tax of $(16,506) in 2011, $(11,956) in 2010 and $(5,089) in 2009		30,745			21,423		8,357
Pension and other postretirement benefits settlements, curtailments and other, net of tax of $0 in 2011, $0 in 2010 and $(225) in 2009		—			—		569
Ending balance	$	224,223		$	427,155	$	248,959

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Cash and Equivalents (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Cash and Equivalents (Textual) [Abstract]
Interest-bearing instruments	$ 551,342,000	$ 694,272,000
Maturity period of interest-bearing instruments	90 days or less

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Pension and Other Postretirement Benefits (Details 8) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Pension [Member]
Portion of the benefit payments are expected to be paid
2012	$ 181,603
2013	169,423
2014	174,453
2015	181,405
2016	187,856
Years 2017-2021	1,010,684
Other Postretirement Benefits [Member]
Portion of the benefit payments are expected to be paid
2012	38,849
2013	39,278
2014	39,866
2015	40,558
2016	41,338
Years 2017-2021	$ 218,668

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Operating Revenues (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating Revenues (Textual) [Abstract]
Percentage of consolidated revenues not exceeded by any single customer	5.00%	5.00%	5.00%

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets —Goodwill represents the excess cost over fair value of the net assets of purchased businesses. The Company does not amortize goodwill and intangible assets that have indefinite lives. The Company performs an annual impairment assessment of goodwill and intangible assets with indefinite lives based on the estimated fair value of the related reporting unit or intangible asset.

On January 1, 2009, the Company adopted new accounting guidance on fair value measurements for all nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value on a nonrecurring basis. The new accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants and provides guidance for measuring fair value and the necessary disclosures.

When performing its annual goodwill impairment assessment, the Company evaluates the goodwill assigned to each of its 52 reporting units for potential impairment by comparing the estimated fair value of the relevant reporting unit to the carrying value. The Company uses various valuation techniques to determine the fair value of its reporting units, including discounting estimated future cash flows based on a detailed cash flow forecast prepared by the relevant reporting unit, market multiples and quoted market prices of relevant public companies. If the fair value of a reporting unit is less than its carrying value, an impairment loss, if any, is recorded for the difference between the implied fair value and the carrying value of the reporting unit’s goodwill.

The Company’s indefinite-lived intangible assets consist of trademarks and brands. The estimated fair values of these intangible assets are determined based on a relief-of-royalty income approach derived from internally forecasted revenues of the related products. If the fair value of the trademark or brand is less than its carrying value, an impairment loss is recorded for the difference between the estimated fair value and carrying value of the intangible asset.

Amortization and impairment of goodwill and other intangible assets for the years ended December 31, 2011, 2010 and 2009 were as follows:

In Thousands	2011		2010		2009
Goodwill:
Impairment	$	—	$	—	$	90,000
Intangible Assets:
Amortization		255,338		207,427		197,469
Impairment		—		1,006		15,568
	$	255,338	$	208,433	$	303,037

Income from discontinued operations included intangible asset amortization of $2,176,000 in 2011, $5,567,000 in 2010 and $5,578,000 in 2009.

In 2011, the Company performed its annual goodwill and indefinite-lived intangible asset impairment assessment which resulted in no goodwill or intangible asset impairment charges.

In 2010, the Company performed its annual goodwill and indefinite-lived intangible asset impairment assessment which resulted in $1,006,000 of intangible asset impairment charges.

In the third quarter of 2009, the Company changed the date of its annual goodwill impairment assessment from the first quarter to the third quarter. This constituted a change in the method of applying an accounting principle that the Company believes is preferable, as it better aligns the timing of the Company’s goodwill impairment assessment with the Company’s annual business planning and forecasting process. In the third quarter of 2009, the Company performed its goodwill impairment assessment which resulted in a charge of $12,000,000 related to the truck remanufacturing and related parts and service reporting unit in the Transportation segment.

In the first quarter of 2009, the Company performed its annual goodwill impairment assessment which resulted in impairment charges of $60,000,000 related to the pressure sensitive adhesives reporting unit and $18,000,000 related to the PC board fabrication reporting unit, which are both included in the Power Systems & Electronics segment.

Also in 2009, intangible asset impairments of $15,568,000 were recorded related to certain trademarks, brands and patents. Approximately $5,800,000 of this total charge related to the PC board fabrication reporting unit and the remainder to various trademarks, brands and patents of other reporting units.

The impairments during 2009 were primarily related to new reporting units which were acquired over the preceding few years prior to the economic downturn in late 2008 and 2009. These charges were driven primarily by lower forecasts compared to the expected forecasts at the time the reporting units were acquired.

A summary of goodwill and intangible assets that were adjusted to fair value and the related impairment charges included in earnings for 2009 is as follows:

In Thousands	Book Value		Fair Value		Total Impairment Charges
Goodwill	$	449,000	$	359,000	$	90,000
Intangible assets		98,544		82,976		15,568

The changes in the carrying amount of goodwill by segment for the years ended December 31, 2011 and 2010 were as follows:

In Thousands	Transpor- tation			Power Systems & Electronics			Industrial Packaging			Food Equipment			Construction Products			Polymers & Fluids			Decorative Surfaces			All Other			Total
Balance, Dec 31, 2009	$	538,271		$	420,829		$	765,179		$	209,025		$	558,504		$	739,101		$	13,405		$	1,532,799		$	4,777,113
2010 activity:
Acquisitions & divestitures		50,800			4,554			1,242			2,676			10,817			84,097			—			37,122			191,308
Impairment charges		—			—			—			—			—			—			—			—			—
Foreign currency translation		(4,456	)		3,808			2,133			(7,408	)		16,584			(1,020	)		(179	)		(6,065	)		3,397
Intersegment goodwill transfers		(17,945	)		(292	)		936			—			(962	)		22,252			—			(3,989	)		—
Balance, Dec 31, 2010	$	566,670		$	428,899		$	769,490		$	204,293		$	584,943		$	844,430		$	13,226		$	1,559,867		$	4,971,818
2011 activity:
Acquisitions & divestitures		118,286			242,257			25,166			(1,175	)		5,515			49,843			—			24,206			464,098
Impairment charges		—			—			—			—			—			—			—			—			—
Foreign currency translation		(9,514	)		(2,233	)		(11,252	)		(4,579	)		(216	)		(17,265	)		(285	)		(2,504	)		(47,848	)
Transfer of assets held for sale		—			(7,336	)		—			—			—			—			—			(183,131	)		(190,467	)
Intersegment goodwill transfers		1,464			341,857			—			—			—			(156,441	)		—			(186,880	)		—
Balance, Dec 31, 2011	$	676,906		$	1,003,444		$	783,404		$	198,539		$	590,242		$	720,567		$	12,941		$	1,211,558		$	5,197,601
Accumulated goodwill impairment charges, Dec 31, 2011	$	36,276		$	87,696		$	114,079		$	59,797		$	6,574		$	14,821		$	—		$	46,484		$	365,727

Intangible assets as of December 31, 2011 and 2010 were as follows:

	2011							2010
In Thousands	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Amortizable intangible assets:
Customer lists and relationships	$	1,608,027	$	(522,155	)	$	1,085,872	$	1,252,748	$	(412,482	)	$	840,266
Patents and proprietary technology		561,205		(235,618	)		325,587		467,226		(210,359	)		256,867
Trademarks and brands		699,586		(157,373	)		542,213		467,838		(119,010	)		348,828
Software		201,009		(172,058	)		28,951		199,560		(154,188	)		45,372
Noncompete agreements		181,379		(148,088	)		33,291		158,363		(135,754	)		22,609
Other		116,994		(102,274	)		14,720		110,105		(92,984	)		17,121
Total amortizable intangible assets		3,368,200		(1,337,566	)		2,030,634		2,655,840		(1,124,777	)		1,531,063
Indefinite-lived intangible assets:
Trademarks and brands		202,744		—			202,744		199,953		—			199,953
Total intangible assets	$	3,570,944	$	(1,337,566	)	$	2,233,378	$	2,855,793	$	(1,124,777	)	$	1,731,016

Amortizable intangible assets are being amortized primarily on a straight-line basis over their estimated useful lives of 3 to 20 years.

The estimated amortization expense of intangible assets for the future years ending December 31 is as follows:

In Thousands
2012	$	258,868
2013		237,114
2014		222,619
2015		211,273
2016		200,043

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Stockholders' Equity (Details 1) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Changes in Accumulated Other Comprehensive Income
Beginning balance, amount	$ 427,155	$ 248,959	$ 10,118
Foreign currency translation adjustments	(140,521)	153,230	301,112
Pension and other postretirement benefits actuarial gains (losses) net of tax of $53568 in 2011, $(2,978) in 2010 and $23,213 in 2009	(93,156)	3,543	(71,197)
Amortization of unrecognized pension and other postretirement benefits costs, net of tax of $(16506) in 2011, $(11,956) in 2010 and $(5,089) in 2009	30,745	21,423	8,357
Pension and other postretirement benefits settlements, curtailments and other, net of tax of $0 in 2011, $0 in 2010 and $(225) in 2009	0		569
Ending balance, amount	$ 224,223	$ 427,155	$ 248,959

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Segment Information (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2011 Segment Country Operations	Dec. 31, 2010
Segment Information (Textual) [Abstract]
Approximate number of multinational manufacturing operations	800
Number of countries with ITW operations	58
Number of Operating Segments Reporting to Senior Management	52
Amount of deferred income taxes reclassified to identifiable assets and reallocated between corporate and the Company's segments		$ 743,244,000
Total noncurrent assets excluding deferred tax assets and financial instruments	$ 10,159,000,000	$ 9,456,000,000
Percentage attributed to U.S. Operations	52.00%	49.00%
Number of external reporting segments	8

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
U.S. Federal income taxes:
Current	$ 514,798	$ 396,880	$ 226,615
Deferred	(33,733)	(45,630)	(21,213)
Benefit of net operating loss and foreign tax credits carryforwards			(85,898)
Provision for federal income taxes	481,065	351,250	119,504
Foreign income taxes:
Current	147,425	266,384	334,227
Deferred	(82,069)	(19,615)	(189,995)
Benefit of net operating loss carryforwards	(4,237)	(3,134)	(30,820)
Provision for foreign income taxes	61,119	243,635	113,412
State income taxes:
Current	65,122	51,530	38,836
Deferred	(31,357)	(2,837)	(22,527)
Benefit of net operating loss carryforwards	(249)	(7,178)	(3,943)
Provision for state income taxes	33,516	41,515	12,366
Provision for income taxes	$ 575,700	$ 636,400	$ 245,282

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

International Reporting Lag

International Reporting Lag —

the Company is now reporting both North American and international results on a calendar year basis.

Consolidation and Translation

Consolidation and Translation—The financial statements include the Company and its majority-owned subsidiaries. All significant intercompany transactions are eliminated from the financial statements.

Foreign subsidiaries’ assets and liabilities are translated to U.S. dollars at end-of-period exchange rates. Revenues and expenses are translated at average rates for the period. Translation adjustments are reported as a component of accumulated other comprehensive income in stockholders’ equity.

Acquisitions

Acquisitions—The Company accounts for acquisitions under the acquisition method, in which assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition. The operating results of the acquired companies are included in the Company’s consolidated financial statements from the date of acquisition.

Operating Revenues

Operating Revenues are recognized when persuasive evidence of an arrangement exists, product has shipped and the risks and rewards of ownership have transferred or services have been rendered, the price to the customer is fixed or determinable, and collectibility is reasonably assured, which is generally at the time of product shipment. Typical sales arrangements are for standard products and provide for transfer of ownership and risk of loss at the time of shipment. In limited circumstances where significant obligations to the customer are unfulfilled at the time of shipment, typically involving installation and customer acceptance, revenue recognition is deferred until such obligations have been completed. Customer allowances and rebates, consisting primarily of volume discounts and other short-term incentive programs, are estimated at the time of sale based on historical experience and known trends and are recorded as a reduction in reported revenues.

Research and Development Expenses

Research and Development Expenses are recorded as expense in the year incurred.

Advertising Expenses

Advertising Expenses are recorded as expense in the year incurred.

Income Taxes

Income Taxes—The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes are determined based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities given the provisions of the enacted tax laws.

Deferred U.S. Federal income taxes and foreign withholding taxes have not been provided on the remaining undistributed earnings of certain international subsidiaries of approximately $6,300,000,000 and $5,700,000,000 as of December 31, 2011 and 2010, respectively, as these earnings are considered permanently invested.

Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized.

The Company recognizes interest and penalties related to income tax matters in income tax expense.

Income from Continuing Operations Per Share

Income Per Share from Continuing Operations is computed by dividing income from continuing operations by the weighted-average number of shares outstanding for the period. Income from continuing operations per diluted share is computed by dividing income from continuing operations by the weighted-average number of shares assuming dilution for stock options and restricted stock units.

Options that were considered antidilutive were not included in the computation of diluted income per share from continuing operations.

Cash and Equivalents

Cash and Equivalents

Interest-bearing instruments have maturities of 90 days or less and are stated at cost, which approximates fair value.

Inventories

Inventories

Inventories are stated at the lower of cost or market and include material, labor and factory overhead. The last-in, first-out (“LIFO”) method is used to determine the cost of the inventories of approximately 44% of the U.S. inventories. Inventories priced at LIFO were approximately 22% and 21% of total inventories as of December 31, 2011 and 2010, respectively. The first-in, first-out (“FIFO”) method, which approximates current cost, is used for all other inventories.

Plant and Equipment

Plant and Equipment are stated at cost less accumulated depreciation. Renewals and improvements that increase the useful life of plant and equipment are capitalized. Maintenance and repairs are charged to expense as incurred.

Depreciation of plant and equipment for financial reporting purposes is computed on an accelerated basis for U.S. businesses and on a straight-line basis for a majority of the international businesses.

Leases of Equipment

Leases of Equipment

Unearned income related to leveraged leases is recognized as lease income over the life of the lease based on the effective yield of the lease. The Company adjusts recognition of lease income on its leveraged leases when there is a change in the assumptions affecting total income or the timing of cash flows associated with the lease. The residual values of leased assets are estimated at the inception of the lease based on market appraisals and reviewed for impairment at least annually.

Other Investments

Other Investments

The Company has a 25% limited partnership interest and accounts for this investment using the equity method, whereby the Company recognizes its proportionate share of the partnership’s income or loss. The partnership’s financial statements are prepared on a mark-to-market basis.

These affordable housing investments are accounted for using the effective yield method, in which the investment is amortized to income tax expense as the tax benefits are received. The tax credits are credited to income tax expense as they are allocated to the Company.

These partnership investments are accounted for using the equity method, whereby the Company recognizes its proportionate share of the partnerships’ income or loss.

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company does not amortize goodwill and intangible assets that have indefinite lives. The Company performs an annual impairment assessment of goodwill and intangible assets with indefinite lives based on the estimated fair value of the related reporting unit or intangible asset.

Amortizable intangible assets are being amortized primarily on a straight-line basis over their estimated useful lives of 3 to 20 years.

Accrued Expenses

Accrued Expenses

The Company accrues for product warranties based on historical experience.

Commitments and Contingencies

Commitments and Contingencies

The Company accrues for such liabilities when it is probable that future costs will be incurred and such costs can be reasonably estimated.

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Income Per Share from Continuing Operations

12 Months Ended

Dec. 31, 2011

Income Per Share from Continuing Operations [Abstract]

Income Per Share from Continuing Operations

Income Per Share from Continuing Operations is computed by dividing income from continuing operations by the weighted-average number of shares outstanding for the period. Income from continuing operations per diluted share is computed by dividing income from continuing operations 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 income per share from continuing operations was as follows:

In Thousands except per share amounts	2011		2010		2009
Income from continuing operations	$	2,017,014	$	1,452,438	$	968,638
Income per share from continuing operations—Basic:
Weighted-average common shares		491,439		500,772		500,177
Income per share from continuing operations—Basic	$	4.10	$	2.90	$	1.94
Income per share from continuing operations—Diluted:
Weighted-average common shares		491,439		500,772		500,177
Effect of dilutive stock options and restricted stock units		3,207		2,578		1,744
Weighted-average common shares assuming dilution		494,646		503,350		501,921
Income per share from continuing operations—Diluted	$	4.08	$	2.89	$	1.93

Options that were considered antidilutive were not included in the computation of diluted income per share from continuing operations. The antidilutive options outstanding as of December 31, 2011, 2010 and 2009 were 5,005,664, 10,434,146 and 14,581,559, respectively.

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Pension and Other Postretirement Benefits (Details 3) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Pension [Member]
Funded status
Funded status	$ (410,707)	$ (360,188)
Other immaterial plans	(63,655)	(62,664)
Net liability at December 31	(474,362)	(422,852)
Other Postretirement Benefits [Member]
Funded status
Funded status	(271,892)	(265,647)
Other immaterial plans	(7,458)	(3,105)
Net liability at December 31	$ (279,350)	$ (268,752)