ILLINOIS TOOL WORKS INC — Director's Dealing 2018

Feb 20, 2018

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ILLINOIS TOOL WORKS INC (ITW)
CIK: 0000049826
Period of Report: 2018-02-15

Reporting Person: Finch Norman D. Jr. (Sr. VP, General Counsel & Secy)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2018-02-15	Employee Stock Option	$163.36	A	11411	Acquired	2028-02-15	Common Stock (11411.0)	Direct
2018-02-15	Performance Share Units (granted 2/15/18)	$0.0	A	1339	Acquired		Common Stock (1339.0)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	4391	Direct
Commom Stock	615	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Employee Stock Option	$126.88	2027-02-01	Common Stock (28928.0)	28928	Direct
Restricted Stock Unit (granted 2/1/17)	$0.0		Common Stock (6108.0)	6108	Direct
Employee Stock Option	$128.0	2027-02-10	Common Stock (15374.0)	15374	Direct
Performance Share Units granted 2/10/17	$0.0		Common Stock (1642.0)	1642	Direct

Footnotes

F1: Includes 20 shares acquired under a dividend reinvestment plan.

F2: Shares of common stock held in spouse's IRA.

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

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

F5: Each RSU vests 100% three years from the date of grant.

F6: PSUs accrue dividends in shares of common stock, subject to fulfillment of vesting period and performance goals; the PSUs shown include dividend equivalents, if any, accrued to date.

F7: Each PSU vests 100% three years from the date of grant if performance goals are met.