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ILLINOIS TOOL WORKS INC Director's Dealing 2017

May 15, 2017

29921_dirs_2017-05-15_d7a215c2-c83e-420e-b33a-6ccb5fc1e3e3.zip

Director's Dealing

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SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ILLINOIS TOOL WORKS INC (ITW)
CIK: 0000049826
Period of Report: 2017-05-11

Reporting Person: SANTI ERNEST SCOTT (Director, Chairman & CEO)

Non-Derivative Transactions

Date Security Code Shares Price A/D Holdings After Ownership
2017-05-11 Common Stock M 101197 $55.81 Acquired 191142 Direct
2017-05-11 Common Stock S 101197 $138.03 Disposed 89945 Direct
2017-05-12 Common Stock M 100 $55.81 Acquired 90045 Direct
2017-05-12 Common Stock S 100 $138 Disposed 89945 Direct

Derivative Transactions

Date Security Exercise Price Code Shares A/D Expiration Underlying Ownership
2017-05-11 Employee Stock Option $55.81 M 101197 Disposed 2021-02-11 Common Stock (101197.0) Direct
2017-05-12 Employee Stock Option $55.81 M 100 Disposed 2021-02-11 Common Stock (100.0) Direct

Holdings (Non-Derivative)

Security Shares Ownership
Common Stock 3650 Indirect

Holdings (Derivative)

Security Exercise Price Expiration Underlying Shares Ownership
Employee Stock Option $98.26 2025-02-13 Common Stock (184645.0) 184645 Direct
Employee Stock Option $78.59 2024-02-14 Common Stock (224422.0) 224422 Direct
Employee Stock Option $63.25 2023-02-15 Common Stock (305188.0) 305188 Direct
Employee Stock Option $91.88 2026-02-12 Common Stock (199800.0) 199800 Direct
Employee Stock Option $55.71 2022-02-10 Common Stock (108885.0) 108885 Direct
Performance Restricted Stock Unit (granted 2/12/2016) $0.0 Common Stock (32651.0) 32651 Direct
Performance Restricted Stock Unit (granted 2/13/15) $0.0 Common Stock (29004.0) 29004 Direct
Employee Stock Option $128.0 2027-02-10 Common Stock (195676.0) 195676 Direct
Performance Share Units (granted 2/10/17) $0.0 Common Stock (20607.0) 20607 Direct

Footnotes

F1: This transaction was executed in multiple trades at prices ranging from $138.00 to $138.19. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, Illinois Tool Works Inc. or a stockholder of Illinois Tool Works Inc. full information regarding the number of shares and prices at which the transaction was effected.

F2: Shares of common stock allocated to my account in the Illinois Tool Works Inc. Savings & Investment Plan---Information reported as of May 11, 2017.

F3: Options vest in four (4) equal annual installments beginning one year from date of grant.

F4: Each performance restricted stock unit (PRSU) and performance share unit (PSU) represents a contingent right to receive one share of the Company's common stock.

F5: Each PRSU and PSU vests 100% three years from the date of grant if performance goals are met. In addition, PSUs accrue dividend equivalent rights payable upon vesting.