ITW Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Illinois Tool Works (ITW) reported Q4 2024 and full-year results, showing mixed performance. Q4 revenue decreased 1.3% to $3.9 billion, with organic growth declining 0.5%. However, the company achieved a record operating margin of 26.2%, up 140 basis points, and record free cash flow of $1B, a 10% increase.

Full-year 2024 revenue was $15.9 billion, down 1.3%, with organic growth declining 0.7%. The company achieved record GAAP EPS of $11.71, a 20% increase, including one-time gains from LIFO inventory accounting ($0.30) and Wilsonart sale ($1.26).

For 2025, ITW projects organic growth of 0-2%, GAAP EPS of $10.15-$10.55 (including $0.30 forex headwind), and plans to repurchase approximately $1.5 billion of shares. Operating margin is expected to be 26.5-27.5%, with enterprise initiatives contributing about 100 basis points.

Positive

• Record operating margin of 26.2% in Q4, up 140 basis points
• Q4 free cash flow increased 10% to $1B with 133% conversion rate
• Record GAAP EPS of $11.71 for 2024, up 20%
• $3.2B returned to shareholders through dividends and share repurchases in 2024
• Six of seven segments expanded margins in 2024

Negative

• Q4 revenue declined 1.3% to $3.9B
• Full-year 2024 revenue decreased 1.3% to $15.9B
• Organic revenue declined 0.7% in 2024
• Projected 3% foreign currency translation headwind for 2025
• Expected total revenue decline of 1-3% for 2025

Fourth Quarter 2024 Highlights

• Revenue of $3.9 billion, a decrease of 1.3% as organic growth declined 0.5%; Organic growth of 0.4% turned positive excluding Product Line Simplification (PLS) reduction of 0.9%
• Record operating margin of 26.2%, an increase of 140 bps as enterprise initiatives contributed 120 bps
• Operating cash flow of $1.1B; record free cash flow of $1B, an increase of 10% with a conversion of 133%
• GAAP EPS of $2.54, an increase of 7%

2024 Highlights

• Revenue of $15.9 billion, a decrease of 1.3% as organic growth declined 0.7% in markets that were down low to mid-single digits
• Record operating margin of 26.8% as enterprise initiatives contributed 130 bps
• Record GAAP EPS of $11.71, an increase of 20%
  

2025 Guidance

• Above-market organic growth of 0 to 2% based on current levels of demand; Organic growth of 1 to 3% excluding PLS reduction of approximately 1%-point
• Enterprise initiatives contributing approximately 100 bps to margin improvement
• GAAP EPS of $10.15 to $10.55 including foreign currency translation headwind of $0.30
  

GLENVIEW, Ill., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Illinois Tool Works Inc. (NYSE: ITW) today reported its fourth quarter and full year 2024 results and initiated guidance for full year 2025.

“ITW delivered a solid finish to the year as we outperformed underlying end markets, expanded operating margin by 140 basis points, generated record free cash flow, and delivered seven percent earnings per share growth in the fourth quarter,” said Christopher A. O’Herlihy, President and Chief Executive Officer.

“Throughout 2024, the ITW team delivered a year of solid operational and financial performance, achieving record financial results by consistently exceeding market growth and significantly improving profitability and margins. Building on this momentum, we will continue to outperform our key end markets in 2025 as we build above-market organic growth, driven by continuous improvement in Customer-Back Innovation, into a core ITW strength. I extend my sincere gratitude to our global colleagues for their unwavering dedication to serving our customers and executing our strategy with excellence,” O’Herlihy concluded.

Fourth Quarter 2024 Results

Fourth quarter revenue of $3.9 billion decreased by 1.3 percent as organic revenue declined 0.5 percent. Organic revenue growth was positive 0.4 percent adjusted for PLS reduction of 0.9 percent. Foreign currency translation reduced revenue by one percent and acquisitions added 0.2 percent.

GAAP EPS of $2.54 increased seven percent. Operating margin of 26.2 percent increased 140 basis points as enterprise initiatives contributed 120 basis points. Operating cash flow was $1.1 billion, and free cash flow grew 10 percent to $1.0 billion, with a conversion of 133 percent to net income. During the quarter, the company repurchased $375 million of its own shares and the effective tax rate was 23.7 percent.

Full Year 2024 Results

Full year revenue of $15.9 billion declined 1.3 percent as organic revenue declined 0.7 percent. Organic revenue growth was essentially flat adjusted for PLS reduction of 0.6 percent. Foreign currency translation reduced revenue by 0.7 percent and acquisitions contributed 0.1 percent to revenues.

GAAP EPS of $11.71 included two previously disclosed favorable one-time items; $0.30 from a LIFO inventory accounting change in the first quarter, and $1.26 from the sale of the Company’s equity interest in Wilsonart in the third quarter. Excluding these items, EPS was $10.15.

Operating income of $4.3 billion grew six percent, and operating margin increased 170 basis points to 26.8 percent with enterprise initiatives contributing 130 basis points. Excluding 70 basis points of favorable impact from the above-mentioned LIFO inventory accounting change, operating margin increased 100 basis points to 26.1 percent. Six of seven segments expanded margins in 2024 with two segments achieving margins above 30 percent.

Operating cash flow was $3.3 billion and free cash flow was $2.8 billion, with a conversion of 94 percent to adjusted net income. The company invested approximately $0.8 billion to support the long-term profitable growth of its businesses and returned $3.2 billion to shareholders through dividends and share repurchases. The effective tax rate was 21.1 percent.

2025 Guidance

The company is initiating 2025 guidance including GAAP EPS in the range of $10.15 to $10.55 per share which includes a foreign currency translation headwind of $0.30. The company projects above-market organic growth of zero to two percent based on current levels of demand, including an expected PLS reduction of approximately one percentage point. Organic revenue growth is projected to be one to three percent adjusted for the above-mentioned PLS. Based on current foreign exchange rates, foreign currency translation is expected to reduce revenue by three percent, resulting in a projected total revenue decline of one to three percent.

Operating margin is projected to be in the range of 26.5 to 27.5 percent, an improvement of approximately 100 basis points excluding the above-mentioned 2024 LIFO inventory accounting change, with enterprise initiatives contributing approximately 100 basis points.

Free cash flow is projected to be greater than 100 percent of net income, and the company plans to repurchase approximately $1.5 billion of its own shares. The projected effective tax rate is 24 to 24.5 percent.

Non-GAAP Measures

This earnings release contains certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included in the attached supplemental reconciliation schedule. The estimated guidance of free cash flow to adjusted net income conversion rate is based on assumptions that are difficult to predict, and estimated guidance for the most directly comparable GAAP measure and a reconciliation of this forward-looking estimate to its most directly comparable GAAP estimate have been omitted due to the unreasonable efforts required in connection with such a reconciliation and the lack of reliable forward-looking cash flow information. For the same reasons, the company is unable to address the potential significance of the unavailable information, which could be material to future results.

Forward-looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding global supply chain challenges, expected impact of inflation including raw and specialty material inflation and fluctuating interest rates, the impact of enterprise initiatives, future financial and operating performance, free cash flow and free cash flow to net income conversion rate, organic and total revenue, operating and incremental margin, price/cost impact, statements regarding diluted income per share, restructuring expenses and related benefits, expected dividend payments, after-tax return on invested capital, effective tax rates, exchange rates and the impact of foreign currency translation, expected access to liquidity sources, expected capital allocation, expected timing and amount of share repurchases, end market economic and regulatory conditions, the impact of recent or potential acquisitions and/or divestitures, and the Company’s 2025 guidance. These statements are subject to certain risks, uncertainties, assumptions, and other factors, which could cause actual results to differ materially from those anticipated. Important risks that could cause actual results to differ materially from the Company’s expectations include those that are detailed in ITW’s Form 10-K for 2023 and subsequent reports filed with the SEC.

About Illinois Tool Works

ITW (NYSE: ITW) is a Fortune 300 global multi-industrial manufacturing leader with revenue of $15.9 billion in 2024. The company’s seven industry-leading segments leverage the unique ITW Business Model to drive solid growth with best-in-class margins and returns in markets where highly innovative, customer-focused solutions are required. ITW’s approximately 44,000 dedicated colleagues around the world thrive in the company’s decentralized and entrepreneurial culture. www.itw.com

Investor Relations & Media Contact:
Erin Linnihan
Tel: 224.661.7431
investorrelations@itw.com | mediarelations@itw.com

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF INCOME (UNAUDITED)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
In millions except per share amounts		2024				2023				2024				2023
Operating Revenue	$	3,932			$	3,983			$	15,898			$	16,107
Cost of revenue		2,221				2,312				8,858				9,316
Selling, administrative, and research and development expenses		655				658				2,675				2,638
Amortization and impairment of intangible assets		25				25				101				113
Operating Income		1,031				988				4,264				4,040
Interest expense		(68	)			(70	)			(283	)			(266	)
Other income (expense)		20				9				441				49
Income Before Taxes		983				927				4,422				3,823
Income taxes		233				210				934				866
Net Income	$	750			$	717			$	3,488			$	2,957
Net Income Per Share:
Basic	$	2.55			$	2.39			$	11.75			$	9.77
Diluted	$	2.54			$	2.38			$	11.71			$	9.74
Cash Dividends Per Share:
Paid	$	1.50			$	1.40			$	5.70			$	5.33
Declared	$	1.50			$	1.40			$	5.80			$	5.42
Shares of Common Stock Outstanding During the Period:
Average		294.7				300.1				296.8				302.6
Average assuming dilution		295.8				301.1				297.8				303.6

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES STATEMENT OF FINANCIAL POSITION (UNAUDITED)
In millions	December 31, 2024				December 31, 2023
Assets
Current Assets:
Cash and equivalents	$	948			$	1,065
Trade receivables		2,991				3,123
Inventories		1,605				1,707
Prepaid expenses and other current assets		312				340
Total current assets		5,856				6,235
Net plant and equipment		2,036				1,976
Goodwill		4,839				4,909
Intangible assets		592				657
Deferred income taxes		369				479
Other assets		1,375				1,262
	$	15,067			$	15,518
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term debt	$	1,555			$	1,825
Accounts payable		519				581
Accrued expenses		1,576				1,663
Cash dividends payable		441				419
Income taxes payable		217				187
Total current liabilities		4,308				4,675
Noncurrent Liabilities:
Long-term debt		6,308				6,339
Deferred income taxes		119				326
Noncurrent income taxes payable		—				151
Other liabilities		1,015				1,014
Total noncurrent liabilities		7,442				7,830
Stockholders' Equity:
Common stock		6				6
Additional paid-in-capital		1,669				1,588
Retained earnings		28,893				27,122
Common stock held in treasury		(25,375	)			(23,870	)
Accumulated other comprehensive income (loss)		(1,877	)			(1,834	)
Noncontrolling interest		1				1
Total stockholders' equity		3,317				3,013
	$	15,067			$	15,518

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)

Three Months Ended December 31, 2024
Dollars in millions	Total Revenue			Operating Income			Operating Margin
Automotive OEM	$	785		$	156		19.8	%
Food Equipment		672			182		27.2	%
Test & Measurement and Electronics		747			202		27.0	%
Welding		447			139		31.2	%
Polymers & Fluids		430			120		27.9	%
Construction Products		438			123		28.0	%
Specialty Products		416			118		28.4	%
Intersegment		(3	)		—		—	%
Total Segments		3,932			1,040		26.5	%
Unallocated		—			(9	)	—	%
Total Company	$	3,932		$	1,031		26.2	%

Twelve Months Ended December 31, 2024
Dollars in millions	Total Revenue			Operating Income		Operating Margin
Automotive OEM	$	3,188		$	625	19.6	%
Food Equipment		2,647			719	27.2	%
Test & Measurement and Electronics		2,818			703	24.9	%
Welding		1,851			597	32.3	%
Polymers & Fluids		1,764			484	27.4	%
Construction Products		1,909			559	29.3	%
Specialty Products		1,743			528	30.3	%
Intersegment		(22	)		—	—	%
Total Segments		15,898			4,215	26.5	%
Unallocated		—			49	—	%
Total Company	$	15,898		$	4,264	26.8	%

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)

Q4 2024 vs. Q4 2023 Favorable/(Unfavorable)
Operating Revenue	Automotive OEM			Food Equipment			Test & Measurement and Electronics			Welding			Polymers & Fluids			Construction Products			Specialty Products			Total ITW
Organic	(2.3	)	%	3.4		%	1.7		%	(0.4	)	%	0.8		%	(4.5	)	%	(3.6	)	%	(0.5	)	%
Acquisitions/ Divestitures	—		%	—		%	0.9		%	—		%	—		%	—		%	—		%	0.2		%
Translation	(1.4	)	%	(0.7	)	%	(0.4	)	%	(0.6	)	%	(3.2	)	%	(0.2	)	%	(1.0	)	%	(1.0	)	%
Operating Revenue	(3.7	)	%	2.7		%	2.2		%	(1.0	)	%	(2.4	)	%	(4.7	)	%	(4.6	)	%	(1.3	)	%

Q4 2024 vs. Q4 2023 Favorable/(Unfavorable)

Change in Operating Margin

Automotive OEM

Food Equipment

Test & Measurement and Electronics

Welding

Polymers & Fluids

Construction Products

Specialty Products

Total ITW

Operating Leverage

(50) bps

70 bps

50 bps

(10) bps

20 bps

(100) bps

(70) bps

(10) bps

Changes in Variable Margin & OH Costs

140 bps

(60) bps

160 bps

150 bps

(60) bps

200 bps

260 bps

130 bps

Total Organic

90 bps

10 bps

210 bps

140 bps

(40) bps

100 bps

190 bps

120 bps

Acquisitions/ Divestitures

—

—

(50) bps

—

—

—

—

(10) bps

Restructuring/Other

130 bps

10 bps

10 bps

20 bps

(20) bps

10 bps

(10) bps

30 bps

Total Operating Margin Change

220 bps

20 bps

170 bps

160 bps

(60) bps

110 bps

180 bps

140 bps

Total Operating Margin % *

19.8%

27.2%

27.0%

31.2%

27.9%

28.0%

28.4%

26.2%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets

30 bps

50 bps

160 bps

10 bps

150 bps

10 bps

20 bps

70 bps **

** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.06) on GAAP earnings per share for the fourth quarter of 2024.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES SEGMENT DATA (UNAUDITED)

Full Year 2024 vs Full Year 2023 Favorable/(Unfavorable)
Operating Revenue	Automotive OEM			Food Equipment			Test & Measurement and Electronics			Welding			Polymers & Fluids			Construction Products			Specialty Products			Total ITW
Organic	(0.4	)	%	1.1		%	(1.0	)	%	(2.4	)	%	0.9		%	(6.1	)	%	3.5		%	(0.7	)	%
Acquisitions/ Divestitures	—		%	—		%	0.9		%	—		%	—		%	—		%	(0.6	)	%	0.1		%
Translation	(1.1	)	%	(0.1	)	%	(0.4	)	%	(0.3	)	%	(3.1	)	%	—		%	(0.2	)	%	(0.7	)	%
Operating Revenue	(1.5	)	%	1.0		%	(0.5	)	%	(2.7	)	%	(2.2	)	%	(6.1	)	%	2.7		%	(1.3	)	%

Full Year 2024 vs Full Year 2023 Favorable/(Unfavorable)

Change in Operating Margin

Automotive OEM

Food Equipment

Test & Measurement and Electronics

Welding

Polymers & Fluids

Construction Products

Specialty Products

Total ITW

Operating Leverage

(10) bps

20 bps

(20) bps

(40) bps

20 bps

(110) bps

70 bps

(20) bps

Changes in Variable Margin & OH Costs

190 bps

(10) bps

150 bps

80 bps

60 bps

220 bps

280 bps

190 bps

Total Organic

180 bps

10 bps

130 bps

40 bps

80 bps

110 bps

350 bps

170 bps

Acquisitions/ Divestitures

—

—

(50) bps

—

—

—

10 bps

(10) bps

Restructuring/Other

50 bps

(10) bps

(10) bps

10 bps

(10) bps

(20) bps

20 bps

10 bps

Total Operating Margin Change

230 bps

—

70 bps

50 bps

70 bps

90 bps

380 bps

170 bps

Total Operating Margin % *

19.6%

27.2%

24.9%

32.3%

27.4%

29.3%

30.3%

26.8%

* Includes unfavorable operating margin impact of amortization expense from acquisition-related intangible assets

30 bps

40 bps

180 bps

10 bps

160 bps

10 bps

20 bps

70 bps **

** Amortization expense from acquisition-related intangible assets had an unfavorable impact of ($0.26) on GAAP earnings per share for 2024.

ILLINOIS TOOL WORKS INC. and SUBSIDIARIES GAAP to NON-GAAP RECONCILIATIONS (UNAUDITED)
AFTER-TAX RETURN ON AVERAGE INVESTED CAPITAL (UNAUDITED)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
Dollars in millions		2024				2023				2024				2023
Numerator:
Net income	$	750			$	717			$	3,488			$	2,957
Net discrete tax benefit related to the third quarter 2024		—				—				(121	)			—
Discrete tax benefit related to the second quarter 2023		—				—				—				(20	)
Interest expense, net of tax (1)		51				54				215				204
Other (income) expense, net of tax (1)		(16	)			(7	)			(336	)			(38	)
Operating income after taxes	$	785			$	764			$	3,246			$	3,103
Denominator:
Invested capital:
Cash and equivalents	$	948			$	1,065			$	948			$	1,065
Trade receivables		2,991				3,123				2,991				3,123
Inventories		1,605				1,707				1,605				1,707
Net plant and equipment		2,036				1,976				2,036				1,976
Goodwill and intangible assets		5,431				5,566				5,431				5,566
Accounts payable and accrued expenses		(2,095	)			(2,244	)			(2,095	)			(2,244	)
Debt		(7,863	)			(8,164	)			(7,863	)			(8,164	)
Other, net		264				(16	)			264				(16	)
Total net assets (stockholders' equity)		3,317				3,013				3,317				3,013
Cash and equivalents		(948	)			(1,065	)			(948	)			(1,065	)
Debt		7,863				8,164				7,863				8,164
Total invested capital	$	10,232			$	10,112			$	10,232			$	10,112
Average invested capital (2)	$	10,511			$	10,096			$	10,419			$	10,214
Net income to average invested capital (3)		28.6	%			28.4	%			33.5	%			29.0	%
After-tax return on average invested capital (3)		29.9	%			30.3	%			31.2	%			30.4	%

⁽¹⁾ Effective tax rate used for interest expense and other (income) expense for the three months ended December 31, 2024 and 2023 was 23.7% and 22.6%, respectively, and 23.8% and 23.2% for the twelve months ended December 31, 2024 and 2023, respectively.

⁽²⁾ Average invested capital is calculated using the total invested capital balances at the start of the period and at the end of each quarter within each of the periods presented.

⁽³⁾ Returns for the three months ended December 31, 2024 and 2023 were converted to an annual rate by multiplying the calculated return by 4.

A reconciliation of the 2024 effective tax rate excluding the third quarter 2024 net discrete tax benefit of $121 million, which included favorable discrete tax benefits of $107 million related to the utilization of capital loss carryforwards upon the sale of Wilsonart and $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, is as follows:

	Twelve Months Ended
	December 31, 2024
Dollars in millions	Income Taxes			Tax Rate
As reported	$	934		21.1	%
Net discrete tax benefit related to the third quarter 2024		121		2.7	%
As adjusted	$	1,055		23.8	%

A reconciliation of the 2023 effective tax rate excluding the second quarter 2023 discrete tax benefit of $20 million related to amended 2021 U.S. taxes is as follows:

	Twelve Months Ended
	December 31, 2023
Dollars in millions	Income Taxes			Tax Rate
As reported	$	866		22.6	%
Discrete tax benefit related to the second quarter 2023		20		0.6	%
As adjusted	$	886		23.2	%

FREE CASH FLOW (UNAUDITED)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
Dollars in millions		2024				2023				2024					2023
Net cash provided by operating activities	$	1,114			$	1,039			$	3,281				$	3,539
Less: Additions to plant and equipment		(118	)			(131	)			(437	)				(455	)
Free cash flow	$	996			$	908			$	2,844				$	3,084
Net income	$	750			$	717			$	3,488				$	2,957
Net cash provided by operating activities to net income conversion rate		149	%			145	%			94	%				120	%
Free cash flow to net income conversion rate		133	%			127	%			82	%	(1	)		104	%

⁽¹⁾ Excluding the impact of the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax), the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes, and a discrete tax benefit of $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, the free cash flow to net income conversion rate would have been 94% for the twelve months ended December 31, 2024.

	Three Months Ended
	March 31,					June 30,				September 30,
Dollars in millions		2024					2024				2024
Net cash provided by operating activities	$	589				$	687			$	891
Less: Additions to plant and equipment		(95	)				(116	)			(108	)
Free cash flow	$	494				$	571			$	783
Net income	$	819				$	759			$	1,160
Net cash provided by operating activities to net income conversion rate		72	%				91	%			77	%
Free cash flow to net income conversion rate		60	%	(1	)		75	%			68	%	(2	)

⁽¹⁾ Excluding the impact of the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax), the free cash flow to net income conversion rate would have been 68% for the three months ended March 31, 2024.

⁽²⁾ Excluding the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes, and a discrete tax benefit of $87 million related to a reorganization of the Company's intellectual property, partially offset by a $73 million discrete tax expense related to the remeasurement of unrecognized tax benefits associated with various intercompany transactions, the free cash flow to net income conversion rate would have been 102% for the three months ended September 30, 2024.

ADJUSTED NET INCOME PER SHARE - DILUTED (UNAUDITED)
	Twelve Months Ended
	December 31, 2024
As reported	$	11.71
Impact of sale of noncontrolling interest in Wilsonart (1)		(1.26	)
Cumulative effect of change in inventory accounting method, net of tax (2)		(0.30	)
As adjusted	$	10.15

⁽¹⁾ Includes the $363 million pre-tax gain on the sale of noncontrolling interest in Wilsonart and related taxes.

⁽²⁾ Represents the cumulative effect of the change from the LIFO method of accounting to the FIFO method for certain U.S. businesses ($117 million pre-tax, or $88 million after-tax).

FAQ

What was ITW's Q4 2024 revenue and how did it compare to previous year?

ITW's Q4 2024 revenue was $3.9 billion, representing a 1.3% decrease from the previous year, with organic revenue declining 0.5%.

What is ITW's EPS guidance for 2025?

ITW projects GAAP EPS of $10.15 to $10.55 for 2025, which includes a foreign currency translation headwind of $0.30.

How much did ITW return to shareholders in 2024?

ITW returned $3.2 billion to shareholders through dividends and share repurchases in 2024.

What is ITW's projected organic growth for 2025?

ITW projects organic growth of 0 to 2% for 2025, or 1 to 3% when excluding Product Line Simplification (PLS) reduction of approximately 1%.

What was ITW's operating margin performance in 2024?

ITW achieved a record operating margin of 26.8% in 2024, with enterprise initiatives contributing 130 basis points.