ILLINOIS TOOL WORKS INC Goodwill & Intangibles Disclosure
| In millions | Automotive OEM | Food Equipment | Test & Measurement and Electronics | Welding | Polymers & Fluids | Construction Products | Specialty Products | Total | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | 466 | $ | 251 | $ | 1,735 | $ | 251 | $ | 834 | $ | 506 | $ | 866 | $ | 4,909 | |||||||||||||||||||||||||||||||
| Acquisitions / divestitures | — | — | 71 | — | — | — | — | 71 | |||||||||||||||||||||||||||||||||||||||
| Foreign currency translation | (21) | (9) | (26) | (11) | (31) | (18) | (25) | (141) | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 445 | 242 | 1,780 | 240 | 803 | 488 | 841 | 4,839 | |||||||||||||||||||||||||||||||||||||||
| Acquisitions / divestitures | — | — | 64 | — | — | — | — | 64 | |||||||||||||||||||||||||||||||||||||||
| Foreign currency translation | 35 | 17 | 39 | 14 | 37 | 19 | 34 | 195 | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | 480 | $ | 259 | $ | 1,883 | $ | 254 | $ | 840 | $ | 507 | $ | 875 | $ | 5,098 | |||||||||||||||||||||||||||||||
| Cumulative goodwill impairment charges, December 31, 2025 | $ | 24 | $ | 60 | $ | 83 | $ | 5 | $ | 15 | $ | 7 | $ | 46 | $ | 240 | |||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| In millions | Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | |||||||||||||||||||||||||||||
| Amortizable intangible assets: | |||||||||||||||||||||||||||||||||||
| Customer lists and relationships | $ | 1,804 | $ | (1,610) | $ | 194 | $ | 1,748 | $ | (1,576) | $ | 172 | |||||||||||||||||||||||
| Trademarks and brands | 720 | (624) | 96 | 717 | (602) | 115 | |||||||||||||||||||||||||||||
| Patents and proprietary technology | 638 | (599) | 39 | 635 | (596) | 39 | |||||||||||||||||||||||||||||
| Other | 515 | (500) | 15 | 516 | (497) | 19 | |||||||||||||||||||||||||||||
| Total amortizable intangible assets | 3,677 | (3,333) | 344 | 3,616 | (3,271) | 345 | |||||||||||||||||||||||||||||
| Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
| Trademarks and brands | 247 | — | 247 | 247 | — | 247 | |||||||||||||||||||||||||||||
| Total intangible assets | $ | 3,924 | $ | (3,333) | $ | 591 | $ | 3,863 | $ | (3,271) | $ | 592 | |||||||||||||||||||||||
| In millions | |||||
| 2026 | $ | 65 | |||
| 2027 | 53 | ||||
| 2028 | 43 | ||||
| 2029 | 38 | ||||
| 2030 | 31 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 10, 2017 | |
| 2015 | Feb 12, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.