x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Ireland
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98-0626632
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
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Item 1 -
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Item 2 -
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Item 3 -
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Item 4 -
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Item 1 -
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Item 1A -
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Item 2 -
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Item 6 -
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Item 1.
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Financial Statements
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Three months ended
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Six months ended
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||||||||||||
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June 30,
|
|
June 30,
|
||||||||||||
In millions, except per share amounts
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net revenues
|
$
|
3,908.4
|
|
|
$
|
3,688.2
|
|
|
$
|
6,909.0
|
|
|
$
|
6,582.3
|
|
Cost of goods sold
|
(2,653.1
|
)
|
|
(2,506.5
|
)
|
|
(4,779.2
|
)
|
|
(4,547.7
|
)
|
||||
Selling and administrative expenses
|
(697.7
|
)
|
|
(668.4
|
)
|
|
(1,357.2
|
)
|
|
(1,295.9
|
)
|
||||
Operating income
|
557.6
|
|
|
513.3
|
|
|
772.6
|
|
|
738.7
|
|
||||
Interest expense
|
(54.1
|
)
|
|
(56.5
|
)
|
|
(108.1
|
)
|
|
(113.2
|
)
|
||||
Other income/(expense), net
|
(11.5
|
)
|
|
394.9
|
|
|
(16.2
|
)
|
|
396.8
|
|
||||
Earnings before income taxes
|
492.0
|
|
|
851.7
|
|
|
648.3
|
|
|
1,022.3
|
|
||||
Provision for income taxes
|
(138.1
|
)
|
|
(92.5
|
)
|
|
(166.8
|
)
|
|
(134.4
|
)
|
||||
Earnings from continuing operations
|
353.9
|
|
|
759.2
|
|
|
481.5
|
|
|
887.9
|
|
||||
Discontinued operations, net of tax
|
8.3
|
|
|
(6.8
|
)
|
|
1.8
|
|
|
20.1
|
|
||||
Net earnings
|
362.2
|
|
|
752.4
|
|
|
483.3
|
|
|
908.0
|
|
||||
Less: Net earnings attributable to noncontrolling interests
|
(3.6
|
)
|
|
(4.8
|
)
|
|
(7.6
|
)
|
|
(8.0
|
)
|
||||
Net earnings attributable to Ingersoll-Rand plc
|
$
|
358.6
|
|
|
$
|
747.6
|
|
|
$
|
475.7
|
|
|
$
|
900.0
|
|
Amounts attributable to Ingersoll-Rand plc ordinary shareholders:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
350.3
|
|
|
$
|
754.4
|
|
|
$
|
473.9
|
|
|
$
|
879.9
|
|
Discontinued operations
|
8.3
|
|
|
(6.8
|
)
|
|
1.8
|
|
|
20.1
|
|
||||
Net earnings
|
$
|
358.6
|
|
|
$
|
747.6
|
|
|
$
|
475.7
|
|
|
$
|
900.0
|
|
Earnings (loss) per share attributable to Ingersoll-Rand plc
ordinary shareholders:
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
1.37
|
|
|
$
|
2.91
|
|
|
$
|
1.84
|
|
|
$
|
3.39
|
|
Discontinued operations
|
0.03
|
|
|
(0.03
|
)
|
|
—
|
|
|
0.08
|
|
||||
Net earnings
|
$
|
1.40
|
|
|
$
|
2.88
|
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|
$
|
1.84
|
|
|
$
|
3.47
|
|
Diluted:
|
|
|
|
|
|
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|
||||||||
Continuing operations
|
$
|
1.35
|
|
|
$
|
2.88
|
|
|
$
|
1.82
|
|
|
$
|
3.37
|
|
Discontinued operations
|
0.03
|
|
|
(0.02
|
)
|
|
—
|
|
|
0.07
|
|
||||
Net earnings
|
$
|
1.38
|
|
|
$
|
2.86
|
|
|
$
|
1.82
|
|
|
$
|
3.44
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
256.4
|
|
|
259.2
|
|
|
257.9
|
|
|
259.3
|
|
||||
Diluted
|
259.7
|
|
|
261.6
|
|
|
261.1
|
|
|
261.4
|
|
||||
Dividends declared per ordinary share
|
$
|
0.40
|
|
|
$
|
0.32
|
|
|
$
|
0.80
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
||||||||
Total comprehensive income (loss)
|
$
|
539.1
|
|
|
$
|
676.3
|
|
|
$
|
779.3
|
|
|
$
|
974.8
|
|
Less: Total comprehensive income (loss) attributable to noncontrolling interests
|
4.3
|
|
|
3.7
|
|
|
6.8
|
|
|
7.8
|
|
||||
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
|
$
|
534.8
|
|
|
$
|
672.6
|
|
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$
|
772.5
|
|
|
$
|
967.0
|
|
|
(Unaudited)
|
|
|
||||
In millions
|
June 30,
2017 |
|
December 31,
2016 |
||||
ASSETS
|
|
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|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,310.1
|
|
|
$
|
1,714.7
|
|
Accounts and notes receivable, net
|
2,596.5
|
|
|
2,223.0
|
|
||
Inventories, net
|
1,604.5
|
|
|
1,385.8
|
|
||
Other current assets
|
343.9
|
|
|
255.8
|
|
||
Total current assets
|
5,855.0
|
|
|
5,579.3
|
|
||
Property, plant and equipment, net
|
1,509.6
|
|
|
1,511.0
|
|
||
Goodwill
|
5,779.4
|
|
|
5,658.4
|
|
||
Intangible assets, net
|
3,750.6
|
|
|
3,785.1
|
|
||
Other noncurrent assets
|
878.9
|
|
|
863.6
|
|
||
Total assets
|
$
|
17,773.5
|
|
|
$
|
17,397.4
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,599.2
|
|
|
$
|
1,334.0
|
|
Accrued compensation and benefits
|
409.5
|
|
|
469.8
|
|
||
Accrued expenses and other current liabilities
|
1,533.5
|
|
|
1,425.7
|
|
||
Short-term borrowings and current maturities of long-term debt
|
361.3
|
|
|
360.8
|
|
||
Total current liabilities
|
3,903.5
|
|
|
3,590.3
|
|
||
Long-term debt
|
3,704.5
|
|
|
3,709.4
|
|
||
Postemployment and other benefit liabilities
|
1,362.9
|
|
|
1,356.5
|
|
||
Deferred and noncurrent income taxes
|
884.4
|
|
|
884.9
|
|
||
Other noncurrent liabilities
|
1,124.2
|
|
|
1,138.0
|
|
||
Total liabilities
|
10,979.5
|
|
|
10,679.1
|
|
||
Equity:
|
|
|
|
||||
Ingersoll-Rand plc shareholders’ equity:
|
|
|
|
||||
Ordinary shares
|
273.6
|
|
|
271.7
|
|
||
Ordinary shares held in treasury, at cost
|
(1,277.9
|
)
|
|
(702.7
|
)
|
||
Capital in excess of par value
|
416.4
|
|
|
346.5
|
|
||
Retained earnings
|
8,303.2
|
|
|
8,018.8
|
|
||
Accumulated other comprehensive income (loss)
|
(993.7
|
)
|
|
(1,290.5
|
)
|
||
Total Ingersoll-Rand plc shareholders’ equity
|
6,721.6
|
|
|
6,643.8
|
|
||
Noncontrolling interests
|
72.4
|
|
|
74.5
|
|
||
Total equity
|
6,794.0
|
|
|
6,718.3
|
|
||
Total liabilities and equity
|
$
|
17,773.5
|
|
|
$
|
17,397.4
|
|
|
Six months ended
|
||||||
|
June 30,
|
||||||
In millions
|
2017
|
|
2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings
|
$
|
483.3
|
|
|
$
|
908.0
|
|
Discontinued operations, net of tax
|
(1.8
|
)
|
|
(20.1
|
)
|
||
Adjustments for non-cash transactions:
|
|
|
|
||||
Asset impairment
|
8.4
|
|
|
—
|
|
||
Depreciation and amortization
|
174.1
|
|
|
176.0
|
|
||
Gain on sale of Hussmann equity investment
|
—
|
|
|
(397.8
|
)
|
||
Changes in assets and liabilities, net
|
(323.3
|
)
|
|
(314.8
|
)
|
||
Other non-cash items, net
|
81.6
|
|
|
51.6
|
|
||
Net cash provided by (used in) continuing operating activities
|
422.3
|
|
|
402.9
|
|
||
Net cash provided by (used in) discontinued operating activities
|
(16.8
|
)
|
|
25.2
|
|
||
Net cash provided by (used in) operating activities
|
405.5
|
|
|
428.1
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(79.5
|
)
|
|
(83.0
|
)
|
||
Acquisition of businesses, net of cash acquired
|
(39.9
|
)
|
|
(9.2
|
)
|
||
Proceeds from sale of property, plant and equipment
|
0.5
|
|
|
2.4
|
|
||
Proceeds from sale of Hussmann equity investment
|
—
|
|
|
422.5
|
|
||
Net cash provided by (used in) continuing investing activities
|
(118.9
|
)
|
|
332.7
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Short-term borrowings (payments), net
|
(7.6
|
)
|
|
(150.6
|
)
|
||
Debt issuance costs
|
(0.2
|
)
|
|
(2.1
|
)
|
||
Dividends paid to ordinary shareholders
|
(204.8
|
)
|
|
(162.5
|
)
|
||
Dividends paid to noncontrolling interests
|
(7.0
|
)
|
|
(6.7
|
)
|
||
Acquisition of noncontrolling interest
|
(6.8
|
)
|
|
—
|
|
||
Repurchase of ordinary shares
|
(575.2
|
)
|
|
(250.1
|
)
|
||
Other financing activities, net
|
34.7
|
|
|
0.8
|
|
||
Net cash provided by (used in) continuing financing activities
|
(766.9
|
)
|
|
(571.2
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
75.7
|
|
|
2.4
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(404.6
|
)
|
|
192.0
|
|
||
Cash and cash equivalents - beginning of period
|
1,714.7
|
|
|
736.8
|
|
||
Cash and cash equivalents - end of period
|
$
|
1,310.1
|
|
|
$
|
928.8
|
|
In millions
|
June 30,
2017 |
|
December 31,
2016 |
||||
Raw materials
|
$
|
503.3
|
|
|
$
|
448.5
|
|
Work-in-process
|
176.7
|
|
|
154.0
|
|
||
Finished goods
|
986.6
|
|
|
845.6
|
|
||
|
1,666.6
|
|
|
1,448.1
|
|
||
LIFO reserve
|
(62.1
|
)
|
|
(62.3
|
)
|
||
Total
|
$
|
1,604.5
|
|
|
$
|
1,385.8
|
|
In millions
|
Climate
|
|
Industrial
|
|
Total
|
||||||
Net balance as of December 31, 2016
|
$
|
4,879.1
|
|
|
$
|
779.3
|
|
|
$
|
5,658.4
|
|
Acquisitions
|
2.6
|
|
|
—
|
|
|
2.6
|
|
|||
Currency translation
|
99.0
|
|
|
19.4
|
|
|
118.4
|
|
|||
Net balance as of June 30, 2017
|
$
|
4,980.7
|
|
|
$
|
798.7
|
|
|
$
|
5,779.4
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
In millions
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
|
Gross carrying amount
|
|
Accumulated amortization
|
|
Net carrying amount
|
||||||||||||
Completed technologies/patents
|
|
$
|
207.1
|
|
|
$
|
(171.9
|
)
|
|
$
|
35.2
|
|
|
$
|
203.0
|
|
|
$
|
(165.6
|
)
|
|
$
|
37.4
|
|
Customer relationships
|
|
2,038.4
|
|
|
(992.2
|
)
|
|
1,046.2
|
|
|
2,008.9
|
|
|
(926.1
|
)
|
|
1,082.8
|
|
||||||
Other
|
|
64.4
|
|
|
(50.9
|
)
|
|
13.5
|
|
|
61.1
|
|
|
(48.5
|
)
|
|
12.6
|
|
||||||
Total finite-lived intangible assets
|
|
2,309.9
|
|
|
(1,215.0
|
)
|
|
1,094.9
|
|
|
2,273.0
|
|
|
(1,140.2
|
)
|
|
1,132.8
|
|
||||||
Trademarks (indefinite-lived)
|
|
2,655.7
|
|
|
—
|
|
|
2,655.7
|
|
|
2,652.3
|
|
|
—
|
|
|
2,652.3
|
|
||||||
Total
|
|
$
|
4,965.6
|
|
|
$
|
(1,215.0
|
)
|
|
$
|
3,750.6
|
|
|
$
|
4,925.3
|
|
|
$
|
(1,140.2
|
)
|
|
$
|
3,785.1
|
|
In millions
|
June 30,
2017 |
|
December 31,
2016 |
||||
Debentures with put feature
|
$
|
343.0
|
|
|
$
|
343.0
|
|
Other current maturities of long-term debt
|
7.7
|
|
|
7.7
|
|
||
Short-term borrowings
|
10.6
|
|
|
10.1
|
|
||
Total
|
$
|
361.3
|
|
|
$
|
360.8
|
|
In millions
|
June 30,
2017 |
|
December 31,
2016 |
||||
6.875% Senior notes due 2018
|
$
|
749.0
|
|
|
$
|
748.6
|
|
2.875% Senior notes due 2019
|
349.1
|
|
|
348.6
|
|
||
2.625% Senior notes due 2020
|
298.7
|
|
|
298.5
|
|
||
9.000% Debentures due 2021
|
124.8
|
|
|
124.8
|
|
||
4.250% Senior notes due 2023
|
696.2
|
|
|
695.6
|
|
||
7.200% Debentures due 2018-2025
|
52.3
|
|
|
59.7
|
|
||
3.550% Senior notes due 2024
|
494.9
|
|
|
494.5
|
|
||
6.480% Debentures due 2025
|
149.7
|
|
|
149.7
|
|
||
5.750% Senior notes due 2043
|
493.9
|
|
|
493.6
|
|
||
4.650% Senior notes due 2044
|
295.5
|
|
|
295.4
|
|
||
Other loans and notes
|
0.4
|
|
|
0.4
|
|
||
Total
|
$
|
3,704.5
|
|
|
$
|
3,709.4
|
|
|
Derivative assets
|
|
Derivative liabilities
|
||||||||||||
In millions
|
June 30,
2017 |
|
December 31,
2016 |
|
June 30,
2017 |
|
December 31,
2016 |
||||||||
Derivatives designated as hedges:
|
|
|
|
|
|
|
|
||||||||
Currency derivatives designated as hedges
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
2.5
|
|
|
$
|
2.9
|
|
Derivatives not designated as hedges:
|
|
|
|
|
|
|
|
||||||||
Currency derivatives not designated as hedges
|
10.2
|
|
|
0.3
|
|
|
1.7
|
|
|
17.9
|
|
||||
Total derivatives
|
$
|
10.2
|
|
|
$
|
0.6
|
|
|
$
|
4.2
|
|
|
$
|
20.8
|
|
|
Amount of gain (loss)
recognized in AOCI |
|
Location of gain (loss) reclassified from
AOCI and recognized into Net earnings |
|
Amount of gain (loss)
reclassified from AOCI and recognized into Net earnings |
||||||||||||
In millions
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|||||||||
Currency derivatives designated as hedges
|
$
|
(1.8
|
)
|
|
$
|
4.6
|
|
|
Cost of goods sold
|
|
$
|
(0.4
|
)
|
|
$
|
1.3
|
|
Interest rate swaps & locks
|
—
|
|
|
—
|
|
|
Interest expense
|
|
(0.2
|
)
|
|
(0.2
|
)
|
||||
Total
|
$
|
(1.8
|
)
|
|
$
|
4.6
|
|
|
|
|
$
|
(0.6
|
)
|
|
$
|
1.1
|
|
|
|
Amount of gain (loss)
recognized in Net earnings |
||||||
In millions
|
2017
|
|
2016
|
|||||
Currency derivatives not designated as hedges
|
|
$
|
13.8
|
|
|
$
|
(14.8
|
)
|
Total
|
|
$
|
13.8
|
|
|
$
|
(14.8
|
)
|
|
Amount of gain (loss)
recognized in AOCI |
|
Location of gain (loss) reclassified from
AOCI and recognized into Net earnings |
|
Amount of gain (loss)
reclassified from AOCI and recognized into Net earnings |
||||||||||||
In millions
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|||||||||
Currency derivatives designated as hedges
|
$
|
(0.6
|
)
|
|
$
|
6.6
|
|
|
Cost of goods sold
|
|
$
|
(0.7
|
)
|
|
$
|
2.0
|
|
Interest rate swaps & locks
|
—
|
|
|
—
|
|
|
Interest expense
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||
Total
|
$
|
(0.6
|
)
|
|
$
|
6.6
|
|
|
|
|
$
|
(1.0
|
)
|
|
$
|
1.7
|
|
|
|
Amount of gain (loss)
recognized in Net earnings |
||||||
In millions
|
2017
|
|
2016
|
|||||
Currency derivatives not designated as hedges
|
|
$
|
33.8
|
|
|
$
|
11.4
|
|
Total
|
|
$
|
33.8
|
|
|
$
|
11.4
|
|
•
|
Level 1:
Observable inputs such as quoted prices in active markets;
|
•
|
Level 2:
Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
|
•
|
Level 3:
Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.
|
In Millions
|
Fair Value
|
|
Fair value measurements
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
10.2
|
|
|
$
|
—
|
|
|
$
|
10.2
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
4.2
|
|
|
$
|
—
|
|
|
$
|
4.2
|
|
|
$
|
—
|
|
In Millions
|
Fair Value
|
|
Fair value measurements
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
0.6
|
|
|
$
|
—
|
|
|
$
|
0.6
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
20.8
|
|
|
$
|
—
|
|
|
$
|
20.8
|
|
|
$
|
—
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service cost
|
$
|
17.9
|
|
|
$
|
18.3
|
|
|
$
|
35.7
|
|
|
$
|
36.5
|
|
Interest cost
|
27.0
|
|
|
28.5
|
|
|
54.0
|
|
|
56.9
|
|
||||
Expected return on plan assets
|
(35.2
|
)
|
|
(36.1
|
)
|
|
(70.4
|
)
|
|
(72.2
|
)
|
||||
Net amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service costs
|
0.9
|
|
|
1.2
|
|
|
1.9
|
|
|
2.4
|
|
||||
Net actuarial losses
|
13.5
|
|
|
15.1
|
|
|
27.1
|
|
|
30.3
|
|
||||
Net periodic pension benefit cost
|
$
|
24.1
|
|
|
$
|
27.0
|
|
|
$
|
48.3
|
|
|
$
|
53.9
|
|
Net curtailment loss
|
—
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
||||
Net periodic pension benefit cost after net curtailment and settlement (gains) losses
|
$
|
24.1
|
|
|
$
|
27.0
|
|
|
$
|
50.6
|
|
|
$
|
53.9
|
|
Amounts recorded in continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income
|
17.2
|
|
|
17.6
|
|
|
$
|
34.3
|
|
|
35.1
|
|
|||
Other income/(expense), net
|
4.5
|
|
|
6.9
|
|
|
11.5
|
|
|
13.8
|
|
||||
Amounts recorded in discontinued operations
|
2.4
|
|
|
2.5
|
|
|
4.8
|
|
|
5.0
|
|
||||
Total
|
$
|
24.1
|
|
|
$
|
27.0
|
|
|
$
|
50.6
|
|
|
$
|
53.9
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service cost
|
$
|
0.7
|
|
|
$
|
1.0
|
|
|
$
|
1.5
|
|
|
$
|
1.9
|
|
Interest cost
|
4.2
|
|
|
4.5
|
|
|
8.5
|
|
|
9.0
|
|
||||
Net amortization of:
|
|
|
|
|
|
|
|
||||||||
Prior service gains
|
(2.1
|
)
|
|
(2.2
|
)
|
|
(4.3
|
)
|
|
(4.4
|
)
|
||||
Net actuarial losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net periodic postretirement benefit cost
|
$
|
2.8
|
|
|
$
|
3.3
|
|
|
$
|
5.7
|
|
|
$
|
6.5
|
|
Amounts recorded in continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income
|
0.7
|
|
|
1.0
|
|
|
$
|
1.5
|
|
|
$
|
1.9
|
|
||
Other income/(expense), net
|
1.7
|
|
|
1.2
|
|
|
2.9
|
|
|
2.4
|
|
||||
Amounts recorded in discontinued operations
|
0.4
|
|
|
1.1
|
|
|
1.3
|
|
|
2.2
|
|
||||
Total
|
$
|
2.8
|
|
|
$
|
3.3
|
|
|
$
|
5.7
|
|
|
$
|
6.5
|
|
In millions
|
Ordinary shares issued
|
|
Ordinary shares held in treasury
|
||
December 31, 2016
|
271.7
|
|
|
12.7
|
|
Shares issued under incentive plans, net
|
1.9
|
|
|
—
|
|
Repurchase of ordinary shares
|
—
|
|
|
6.9
|
|
June 30, 2017
|
273.6
|
|
|
19.6
|
|
In millions
|
Shareholders’
equity |
|
Noncontrolling
interests |
|
Total
equity |
||||||
Balance at December 31, 2016
|
$
|
6,643.8
|
|
|
$
|
74.5
|
|
|
$
|
6,718.3
|
|
Net earnings
|
475.7
|
|
|
7.6
|
|
|
483.3
|
|
|||
Currency translation
|
288.9
|
|
|
(0.8
|
)
|
|
288.1
|
|
|||
Derivatives qualifying as cash flow hedges, net of tax
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|||
Pension and OPEB adjustments, net of tax
|
7.3
|
|
|
—
|
|
|
7.3
|
|
|||
Total comprehensive income (loss)
|
772.5
|
|
|
6.8
|
|
|
779.3
|
|
|||
Share-based compensation
|
40.1
|
|
|
—
|
|
|
40.1
|
|
|||
Adoption of ASU 2016-09 (See Note 2)
|
15.1
|
|
|
—
|
|
|
15.1
|
|
|||
Acquisition of noncontrolling interest
|
(4.9
|
)
|
|
(1.9
|
)
|
|
(6.8
|
)
|
|||
Dividends declared to noncontrolling interests
|
—
|
|
|
(7.0
|
)
|
|
(7.0
|
)
|
|||
Dividends declared to ordinary shareholders
|
(204.8
|
)
|
|
—
|
|
|
(204.8
|
)
|
|||
Shares issued under incentive plans, net of tax benefit
|
35.0
|
|
|
—
|
|
|
35.0
|
|
|||
Repurchase of ordinary shares
|
(575.2
|
)
|
|
—
|
|
|
(575.2
|
)
|
|||
Balance at June 30, 2017
|
$
|
6,721.6
|
|
|
$
|
72.4
|
|
|
$
|
6,794.0
|
|
In millions
|
Shareholders’
equity |
|
Noncontrolling
interests |
|
Total
equity |
||||||
Balance at December 31, 2015
|
$
|
5,816.7
|
|
|
$
|
62.5
|
|
|
$
|
5,879.2
|
|
Net earnings
|
900.0
|
|
|
8.0
|
|
|
908.0
|
|
|||
Currency translation
|
34.1
|
|
|
(0.2
|
)
|
|
33.9
|
|
|||
Derivatives qualifying as cash flow hedges, net of tax
|
4.4
|
|
|
—
|
|
|
4.4
|
|
|||
Pension and OPEB adjustments, net of tax
|
28.5
|
|
|
—
|
|
|
28.5
|
|
|||
Total comprehensive income (loss)
|
967.0
|
|
|
7.8
|
|
|
974.8
|
|
|||
Share-based compensation
|
36.8
|
|
|
—
|
|
|
36.8
|
|
|||
Dividends declared to noncontrolling interests
|
—
|
|
|
(6.7
|
)
|
|
(6.7
|
)
|
|||
Dividends declared to ordinary shareholders
|
(164.8
|
)
|
|
—
|
|
|
(164.8
|
)
|
|||
Shares issued under incentive plans, net of tax benefit
|
9.2
|
|
|
—
|
|
|
9.2
|
|
|||
Repurchase of ordinary shares
|
(250.1
|
)
|
|
—
|
|
|
(250.1
|
)
|
|||
Other
|
(0.4
|
)
|
|
—
|
|
|
(0.4
|
)
|
|||
Balance at June 30, 2016
|
$
|
6,414.4
|
|
|
$
|
63.6
|
|
|
$
|
6,478.0
|
|
In millions
|
|
Derivative Instruments
|
|
Pension and OPEB
|
|
Foreign Currency Translation
|
|
Total
|
||||||||
Balance at December 31, 2016
|
|
$
|
2.9
|
|
|
$
|
(554.4
|
)
|
|
$
|
(739.0
|
)
|
|
$
|
(1,290.5
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(0.6
|
)
|
|
(8.7
|
)
|
|
288.9
|
|
|
279.6
|
|
||||
Amounts reclassified from AOCI
|
|
1.0
|
|
|
24.7
|
|
|
—
|
|
|
25.7
|
|
||||
Provision for income taxes
|
|
0.2
|
|
|
(8.7
|
)
|
|
—
|
|
|
(8.5
|
)
|
||||
Net current period other comprehensive income (loss)
|
|
$
|
0.6
|
|
|
$
|
7.3
|
|
|
$
|
288.9
|
|
|
$
|
296.8
|
|
Balance at June 30, 2017
|
|
$
|
3.5
|
|
|
$
|
(547.1
|
)
|
|
$
|
(450.1
|
)
|
|
$
|
(993.7
|
)
|
In millions
|
|
Derivative Instruments
|
|
Pension and OPEB
|
|
Foreign Currency Translation
|
|
Total
|
||||||||
Balance at December 31, 2015
|
|
$
|
5.1
|
|
|
$
|
(630.4
|
)
|
|
$
|
(495.6
|
)
|
|
$
|
(1,120.9
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
6.6
|
|
|
9.8
|
|
|
34.1
|
|
|
50.5
|
|
||||
Amounts reclassified from AOCI
|
|
(1.7
|
)
|
|
28.3
|
|
|
—
|
|
|
26.6
|
|
||||
Provision for income taxes
|
|
(0.5
|
)
|
|
(9.6
|
)
|
|
—
|
|
|
(10.1
|
)
|
||||
Net current period other comprehensive income (loss)
|
|
$
|
4.4
|
|
|
$
|
28.5
|
|
|
$
|
34.1
|
|
|
$
|
67.0
|
|
Balance at June 30, 2016
|
|
$
|
9.5
|
|
|
$
|
(601.9
|
)
|
|
$
|
(461.5
|
)
|
|
$
|
(1,053.9
|
)
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Derivative Instruments
|
|
|
|
|
|
|
|
|
||||||||
Reclassifications of deferred (gains) losses
(1)
|
|
$
|
0.6
|
|
|
$
|
(1.1
|
)
|
|
$
|
1.0
|
|
|
$
|
(1.7
|
)
|
Provision (benefit) for income taxes
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
||||
Reclassifications, net of taxes
|
|
$
|
0.9
|
|
|
$
|
(0.9
|
)
|
|
$
|
1.2
|
|
|
$
|
(1.5
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Pension and Postretirement benefits
|
|
|
|
|
|
|
|
|
||||||||
Amortization of service costs
(2)
|
|
$
|
(1.2
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
(2.0
|
)
|
Amortization of actuarial losses
(2)
|
|
13.5
|
|
|
15.1
|
|
|
27.1
|
|
|
30.3
|
|
||||
Provision for (benefit from) for income taxes
|
|
(3.7
|
)
|
|
(5.1
|
)
|
|
(8.7
|
)
|
|
(9.6
|
)
|
||||
Reclassifications, net of taxes
|
|
$
|
8.6
|
|
|
$
|
9.0
|
|
|
$
|
16.0
|
|
|
$
|
18.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reclassifications, net of taxes
|
|
$
|
9.5
|
|
|
$
|
8.1
|
|
|
$
|
17.2
|
|
|
$
|
17.2
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Stock options
|
$
|
4.0
|
|
|
$
|
3.9
|
|
|
$
|
12.7
|
|
|
$
|
11.4
|
|
RSUs
|
6.6
|
|
|
6.9
|
|
|
16.9
|
|
|
16.4
|
|
||||
Performance shares
|
6.8
|
|
|
5.0
|
|
|
11.2
|
|
|
9.5
|
|
||||
Other
|
1.7
|
|
|
0.9
|
|
|
3.1
|
|
|
2.7
|
|
||||
Pre-tax expense
|
19.1
|
|
|
16.7
|
|
|
43.9
|
|
|
40.0
|
|
||||
Tax benefit
|
(7.3
|
)
|
|
(6.4
|
)
|
|
(16.8
|
)
|
|
(15.3
|
)
|
||||
After-tax expense
|
$
|
11.8
|
|
|
$
|
10.3
|
|
|
$
|
27.1
|
|
|
$
|
24.7
|
|
|
|
2017
|
|
2016
|
||
Dividend yield
|
|
2.00
|
%
|
|
2.55
|
%
|
Volatility
|
|
22.46
|
%
|
|
28.60
|
%
|
Risk-free rate of return
|
|
1.80
|
%
|
|
1.12
|
%
|
Expected life in years
|
|
4.8
|
|
|
4.8
|
|
•
|
Volatility
- The expected volatility is based on a weighted average of the Company’s implied volatility and the most recent historical volatility of the Company’s stock commensurate with the expected life.
|
•
|
Risk-free rate of return
- The Company applies a yield curve of continuous risk-free rates based upon the published U.S. Treasury spot rates on the grant date.
|
•
|
Expected life
- The expected life of the Company’s stock option awards represents the weighted-average of the actual period since the grant date for all exercised or cancelled options and an expected period for all outstanding options.
|
•
|
Dividend yield
- The Company determines the dividend yield based upon the expected quarterly dividend payments as of the grant date and the current fair market value of the Company’s stock.
|
•
|
Forfeiture Rate
- The Company analyzes historical data of forfeited options to develop a reasonable expectation of the number of options to forfeit prior to vesting per year. This expected forfeiture rate is applied to the Company’s ongoing compensation expense; however, all expense is adjusted to reflect actual vestings and forfeitures.
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Climate
|
|
$
|
1.8
|
|
|
$
|
0.9
|
|
|
$
|
29.8
|
|
|
$
|
2.8
|
|
Industrial
|
|
3.4
|
|
|
5.2
|
|
|
8.1
|
|
|
8.3
|
|
||||
Corporate and Other
|
|
0.3
|
|
|
(1.0
|
)
|
|
0.3
|
|
|
2.4
|
|
||||
Total
|
|
$
|
5.5
|
|
|
$
|
5.1
|
|
|
$
|
38.2
|
|
|
$
|
13.5
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of goods sold
|
|
$
|
2.3
|
|
|
$
|
1.8
|
|
|
$
|
32.6
|
|
|
$
|
3.8
|
|
Selling and administrative expenses
|
|
3.2
|
|
|
3.3
|
|
|
5.6
|
|
|
9.7
|
|
||||
Total
|
|
$
|
5.5
|
|
|
$
|
5.1
|
|
|
$
|
38.2
|
|
|
$
|
13.5
|
|
In millions
|
|
Climate
|
|
Industrial
|
|
Corporate
and Other
|
|
Total
|
||||||||
December 31, 2016
|
|
$
|
3.4
|
|
|
$
|
4.3
|
|
|
$
|
0.6
|
|
|
$
|
8.3
|
|
Additions, net of reversals
(1)
|
|
14.2
|
|
|
8.1
|
|
|
0.3
|
|
|
22.6
|
|
||||
Cash paid/other
|
|
(5.9
|
)
|
|
(7.6
|
)
|
|
(0.3
|
)
|
|
(13.8
|
)
|
||||
June 30, 2017
|
|
$
|
11.7
|
|
|
$
|
4.8
|
|
|
$
|
0.6
|
|
|
$
|
17.1
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest income
|
$
|
1.3
|
|
|
$
|
2.6
|
|
|
$
|
4.4
|
|
|
$
|
4.6
|
|
Exchange gain (loss)
|
(3.4
|
)
|
|
3.8
|
|
|
(1.5
|
)
|
|
9.3
|
|
||||
Other components of net periodic benefit cost
|
(6.2
|
)
|
|
(8.1
|
)
|
|
(14.4
|
)
|
|
(16.2
|
)
|
||||
Income (loss) from equity investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
||||
Income (loss) from Hussmann equity investment
|
—
|
|
|
397.8
|
|
|
—
|
|
|
397.8
|
|
||||
Other activity, net
|
(3.2
|
)
|
|
(1.2
|
)
|
|
(4.7
|
)
|
|
2.1
|
|
||||
Other income/(expense), net
|
$
|
(11.5
|
)
|
|
$
|
394.9
|
|
|
$
|
(16.2
|
)
|
|
$
|
396.8
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Pre-tax earnings (loss) from discontinued operations
|
$
|
10.0
|
|
|
$
|
(8.4
|
)
|
|
$
|
0.9
|
|
|
$
|
12.6
|
|
Tax benefit (expense)
|
(1.7
|
)
|
|
1.6
|
|
|
0.9
|
|
|
7.5
|
|
||||
Discontinued operations, net of tax
|
$
|
8.3
|
|
|
$
|
(6.8
|
)
|
|
$
|
1.8
|
|
|
$
|
20.1
|
|
|
Three months ended
|
|
Six months ended
|
||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Weighted-average number of basic shares
|
256.4
|
|
|
259.2
|
|
|
257.9
|
|
|
259.3
|
|
Shares issuable under incentive stock plans
|
3.3
|
|
|
2.4
|
|
|
3.2
|
|
|
2.1
|
|
Weighted-average number of diluted shares
|
259.7
|
|
|
261.6
|
|
|
261.1
|
|
|
261.4
|
|
Anti-dilutive shares
|
1.2
|
|
|
1.3
|
|
|
1.6
|
|
|
2.3
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net revenues
|
|
|
|
|
|
|
|
||||||||
Climate
|
$
|
3,143.8
|
|
|
$
|
2,934.8
|
|
|
$
|
5,467.9
|
|
|
$
|
5,148.3
|
|
Industrial
|
764.6
|
|
|
753.4
|
|
|
1,441.1
|
|
|
1,434.0
|
|
||||
Total
|
$
|
3,908.4
|
|
|
$
|
3,688.2
|
|
|
$
|
6,909.0
|
|
|
$
|
6,582.3
|
|
Segment operating income
|
|
|
|
|
|
|
|
||||||||
Climate
|
$
|
527.1
|
|
|
$
|
496.8
|
|
|
$
|
744.4
|
|
|
$
|
714.1
|
|
Industrial
|
92.2
|
|
|
70.2
|
|
|
158.0
|
|
|
134.1
|
|
||||
Unallocated corporate expense
|
(61.7
|
)
|
|
(53.7
|
)
|
|
(129.8
|
)
|
|
(109.5
|
)
|
||||
Operating income
|
$
|
557.6
|
|
|
$
|
513.3
|
|
|
$
|
772.6
|
|
|
$
|
738.7
|
|
•
|
the outside expert’s interpretation of a widely accepted forecast of the population likely to have been occupationally exposed to asbestos;
|
•
|
epidemiological studies estimating the number of people likely to develop asbestos-related diseases such as mesothelioma and lung cancer;
|
•
|
the Company’s historical experience with the filing of non-malignancy claims and claims alleging other types of malignant diseases filed against the Company relative to the number of lung cancer claims filed against the Company;
|
•
|
the outside expert’s analysis of the number of people likely to file an asbestos-related personal injury claim against the Company based on such epidemiological and historical data and the Company’s most recent three-year claims history;
|
•
|
an analysis of the Company’s pending cases, by type of disease claimed and by year filed;
|
•
|
an analysis of the Company’s most recent three-year history to determine the average settlement and resolution value of claims, by type of disease claimed;
|
•
|
an adjustment for inflation in the future average settlement value of claims, at a
2.5%
annual inflation rate, adjusted downward to
1.5%
to take account of the declining value of claims resulting from the aging of the claimant population; and
|
•
|
an analysis of the period over which the Company has and is likely to resolve asbestos-related claims against it in the future.
|
In millions
|
June 30,
2017 |
|
December 31,
2016 |
||||
Accrued expenses and other current liabilities
|
$
|
57.0
|
|
|
$
|
61.5
|
|
Other noncurrent liabilities
|
538.9
|
|
|
569.7
|
|
||
Total asbestos-related liabilities
|
$
|
595.9
|
|
|
$
|
631.2
|
|
|
|
|
|
||||
Other current assets
|
$
|
53.9
|
|
|
$
|
54.0
|
|
Other noncurrent assets
|
207.4
|
|
|
218.5
|
|
||
Total asset for probable asbestos-related insurance recoveries
|
$
|
261.3
|
|
|
$
|
272.5
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
In millions
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Continuing operations
|
$
|
(2.6
|
)
|
|
$
|
0.2
|
|
|
$
|
(2.6
|
)
|
|
$
|
2.1
|
|
Discontinued operations
|
16.0
|
|
|
(4.2
|
)
|
|
12.7
|
|
|
19.8
|
|
||||
Total
|
$
|
13.4
|
|
|
$
|
(4.0
|
)
|
|
$
|
10.1
|
|
|
$
|
21.9
|
|
•
|
Ingersoll-Rand Company has reached favorable settlements regarding asbestos coverage claims for the majority of its recorded asbestos-related insurance receivable;
|
•
|
a review of other companies in circumstances comparable to Ingersoll-Rand Company, including Trane, and the success of other companies in recovering under their insurance policies, including Trane's favorable settlements referenced above;
|
•
|
the Company's confidence in its right to recovery under the terms of its policies and pursuant to applicable law; and
|
•
|
the Company's history of receiving payments under the Ingersoll-Rand Company insurance program, including under policies that had been the subject of prior litigation.
|
In millions
|
2017
|
|
2016
|
||||
Balance at beginning of period
|
$
|
261.6
|
|
|
$
|
262.0
|
|
Reductions for payments
|
(65.8
|
)
|
|
(68.7
|
)
|
||
Accruals for warranties issued during the current period
|
64.3
|
|
|
63.0
|
|
||
Changes to accruals related to preexisting warranties
|
2.4
|
|
|
5.9
|
|
||
Translation
|
3.4
|
|
|
0.7
|
|
||
Balance at end of period
|
$
|
265.9
|
|
|
$
|
262.9
|
|
In millions
|
2017
|
|
2016
|
||||
Balance at beginning of period
|
$
|
295.9
|
|
|
$
|
311.6
|
|
Amortization of deferred revenue for the period
|
(52.8
|
)
|
|
(53.8
|
)
|
||
Additions for extended warranties issued during the period
|
55.2
|
|
|
38.4
|
|
||
Changes to accruals related to preexisting warranties
|
0.7
|
|
|
7.1
|
|
||
Translation
|
1.1
|
|
|
0.7
|
|
||
Balance at end of period
|
$
|
300.1
|
|
|
$
|
304.0
|
|
Parent, issuer or guarantors
|
Notes issued
|
Notes guaranteed
(1)
|
Ingersoll-Rand plc (Plc)
|
None
|
All registered notes and debentures
|
Ingersoll-Rand Irish Holdings Unlimited Company (Irish Holdings)
|
None
|
All notes issued by Global Holding and Lux Finance
(2)
|
Ingersoll-Rand Lux International Holding Company S.à.r.l. (Lux International)
|
None
|
All notes issued by Global Holding and Lux Finance
|
Ingersoll-Rand Global Holding Company Limited (Global Holding)
|
6.875% Senior notes due 2018
2.875% Senior notes due 2019
4.250% Senior notes due 2023
5.750% Senior notes due 2043
|
All notes issued by Lux Finance
|
Ingersoll-Rand Company (New Jersey)
|
9.000% Debentures due 2021
7.200% Debentures due 2018-2025
6.48% Debentures due 2025
Puttable debentures due 2027-2028
|
All notes issued by Global and Lux Finance
|
Ingersoll-Rand Luxembourg Finance S.A. (Lux Finance)
|
2.625% Notes due 2020
3.55% Notes due 2024
4.650% Notes due 2044
|
All notes and debentures issued by Global and New Jersey
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
In millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
326.5
|
|
|
$
|
—
|
|
|
$
|
3,669.5
|
|
|
$
|
(87.6
|
)
|
|
$
|
3,908.4
|
|
Cost of goods sold
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(229.1
|
)
|
|
—
|
|
|
(2,511.6
|
)
|
|
87.6
|
|
|
(2,653.1
|
)
|
|||||||||
Selling and administrative expenses
|
(5.9
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(101.1
|
)
|
|
(0.1
|
)
|
|
(590.5
|
)
|
|
—
|
|
|
(697.7
|
)
|
|||||||||
Operating income (loss)
|
(5.9
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(3.7
|
)
|
|
(0.1
|
)
|
|
567.4
|
|
|
—
|
|
|
557.6
|
|
|||||||||
Equity earnings (loss) in subsidiaries, net of tax
|
371.2
|
|
|
369.6
|
|
|
348.5
|
|
|
277.1
|
|
|
335.4
|
|
|
21.2
|
|
|
—
|
|
|
(1,723.0
|
)
|
|
—
|
|
|||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(31.8
|
)
|
|
(11.9
|
)
|
|
(10.1
|
)
|
|
(0.3
|
)
|
|
—
|
|
|
(54.1
|
)
|
|||||||||
Intercompany interest and fees
|
(7.3
|
)
|
|
—
|
|
|
(10.0
|
)
|
|
(43.7
|
)
|
|
(77.1
|
)
|
|
(1.9
|
)
|
|
140.0
|
|
|
—
|
|
|
—
|
|
|||||||||
Other income/(expense), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
(11.9
|
)
|
|
—
|
|
|
(11.5
|
)
|
|||||||||
Earnings (loss) before income taxes
|
358.0
|
|
|
369.6
|
|
|
338.4
|
|
|
201.6
|
|
|
243.1
|
|
|
9.1
|
|
|
695.2
|
|
|
(1,723.0
|
)
|
|
492.0
|
|
|||||||||
Benefit (provision) for income taxes
|
0.6
|
|
|
—
|
|
|
—
|
|
|
27.5
|
|
|
27.7
|
|
|
—
|
|
|
(193.9
|
)
|
|
—
|
|
|
(138.1
|
)
|
|||||||||
Earnings (loss) from continuing operations
|
358.6
|
|
|
369.6
|
|
|
338.4
|
|
|
229.1
|
|
|
270.8
|
|
|
9.1
|
|
|
501.3
|
|
|
(1,723.0
|
)
|
|
353.9
|
|
|||||||||
Discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
8.3
|
|
|||||||||
Net earnings (loss)
|
358.6
|
|
|
369.6
|
|
|
338.4
|
|
|
229.1
|
|
|
277.0
|
|
|
9.1
|
|
|
503.4
|
|
|
(1,723.0
|
)
|
|
362.2
|
|
|||||||||
Less: Net earnings attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
(3.6
|
)
|
|||||||||
Net earnings (loss) attributable to Ingersoll-Rand plc
|
$
|
358.6
|
|
|
$
|
369.6
|
|
|
$
|
338.4
|
|
|
$
|
229.1
|
|
|
$
|
277.0
|
|
|
$
|
9.1
|
|
|
$
|
499.8
|
|
|
$
|
(1,723.0
|
)
|
|
$
|
358.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income (loss), net of tax
|
176.2
|
|
|
175.8
|
|
|
161.0
|
|
|
136.3
|
|
|
136.1
|
|
|
24.1
|
|
|
178.4
|
|
|
(811.7
|
)
|
|
176.2
|
|
|||||||||
Comprehensive income (loss) attributable to Ingersoll-Rand plc
|
$
|
534.8
|
|
|
$
|
545.4
|
|
|
$
|
499.4
|
|
|
$
|
365.4
|
|
|
$
|
413.1
|
|
|
$
|
33.2
|
|
|
$
|
678.2
|
|
|
$
|
(2,534.7
|
)
|
|
$
|
534.8
|
|
In millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
642.8
|
|
|
$
|
—
|
|
|
$
|
6,447.3
|
|
|
$
|
(181.1
|
)
|
|
$
|
6,909.0
|
|
Cost of goods sold
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(463.7
|
)
|
|
—
|
|
|
(4,496.6
|
)
|
|
181.1
|
|
|
(4,779.2
|
)
|
|||||||||
Selling and administrative expenses
|
(8.2
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.9
|
)
|
|
(222.4
|
)
|
|
(0.2
|
)
|
|
(1,125.4
|
)
|
|
—
|
|
|
(1,357.2
|
)
|
|||||||||
Operating income (loss)
|
(8.2
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
(0.9
|
)
|
|
(43.3
|
)
|
|
(0.2
|
)
|
|
825.3
|
|
|
—
|
|
|
772.6
|
|
|||||||||
Equity earnings (loss) in subsidiaries, net of tax
|
496.1
|
|
|
487.0
|
|
|
442.4
|
|
|
300.1
|
|
|
442.5
|
|
|
27.2
|
|
|
—
|
|
|
(2,195.3
|
)
|
|
—
|
|
|||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(63.5
|
)
|
|
(23.8
|
)
|
|
(20.4
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
(108.1
|
)
|
|||||||||
Intercompany interest and fees
|
(13.1
|
)
|
|
—
|
|
|
(23.5
|
)
|
|
(86.4
|
)
|
|
(151.3
|
)
|
|
(3.8
|
)
|
|
278.1
|
|
|
—
|
|
|
—
|
|
|||||||||
Other income/(expense), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|
(13.9
|
)
|
|
—
|
|
|
(16.2
|
)
|
|||||||||
Earnings (loss) before income taxes
|
474.8
|
|
|
487.0
|
|
|
418.8
|
|
|
149.3
|
|
|
221.8
|
|
|
2.8
|
|
|
1,089.1
|
|
|
(2,195.3
|
)
|
|
648.3
|
|
|||||||||
Benefit (provision) for income taxes
|
0.9
|
|
|
—
|
|
|
—
|
|
|
54.9
|
|
|
77.7
|
|
|
—
|
|
|
(300.3
|
)
|
|
—
|
|
|
(166.8
|
)
|
|||||||||
Earnings (loss) from continuing operations
|
475.7
|
|
|
487.0
|
|
|
418.8
|
|
|
204.2
|
|
|
299.5
|
|
|
2.8
|
|
|
788.8
|
|
|
(2,195.3
|
)
|
|
481.5
|
|
|||||||||
Discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.8
|
|
|||||||||
Net earnings (loss)
|
475.7
|
|
|
487.0
|
|
|
418.8
|
|
|
204.2
|
|
|
299.9
|
|
|
2.8
|
|
|
790.2
|
|
|
(2,195.3
|
)
|
|
483.3
|
|
|||||||||
Less: Net earnings attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6
|
)
|
|
—
|
|
|
(7.6
|
)
|
|||||||||
Net earnings (loss) attributable to Ingersoll-Rand plc
|
$
|
475.7
|
|
|
$
|
487.0
|
|
|
$
|
418.8
|
|
|
$
|
204.2
|
|
|
$
|
299.9
|
|
|
$
|
2.8
|
|
|
$
|
782.6
|
|
|
$
|
(2,195.3
|
)
|
|
$
|
475.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income (loss), net of tax
|
296.8
|
|
|
296.1
|
|
|
275.9
|
|
|
214.3
|
|
|
214.0
|
|
|
60.2
|
|
|
296.5
|
|
|
(1,357.0
|
)
|
|
296.8
|
|
|||||||||
Comprehensive income (loss) attributable to Ingersoll-Rand plc
|
$
|
772.5
|
|
|
$
|
783.1
|
|
|
$
|
694.7
|
|
|
$
|
418.5
|
|
|
$
|
513.9
|
|
|
$
|
63.0
|
|
|
$
|
1,079.1
|
|
|
$
|
(3,552.3
|
)
|
|
$
|
772.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
In millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
321.8
|
|
|
$
|
—
|
|
|
$
|
3,455.2
|
|
|
$
|
(88.8
|
)
|
|
$
|
3,688.2
|
|
Cost of goods sold
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(244.8
|
)
|
|
—
|
|
|
(2,350.5
|
)
|
|
88.8
|
|
|
(2,506.5
|
)
|
|||||||||
Selling and administrative expenses
|
(5.3
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(116.0
|
)
|
|
(0.1
|
)
|
|
(546.9
|
)
|
|
—
|
|
|
(668.4
|
)
|
|||||||||
Operating income (loss)
|
(5.3
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(39.0
|
)
|
|
(0.1
|
)
|
|
557.8
|
|
|
—
|
|
|
513.3
|
|
|||||||||
Equity earnings (loss) in subsidiaries, net of tax
|
769.9
|
|
|
768.0
|
|
|
736.8
|
|
|
249.6
|
|
|
349.0
|
|
|
530.1
|
|
|
—
|
|
|
(3,403.4
|
)
|
|
—
|
|
|||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(31.8
|
)
|
|
(12.0
|
)
|
|
(11.0
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(56.5
|
)
|
|||||||||
Intercompany interest and fees
|
(17.5
|
)
|
|
—
|
|
|
(9.5
|
)
|
|
(41.9
|
)
|
|
(69.4
|
)
|
|
(1.7
|
)
|
|
140.0
|
|
|
—
|
|
|
—
|
|
|||||||||
Other income/(expense), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
395.9
|
|
|
—
|
|
|
394.9
|
|
|||||||||
Earnings (loss) before income taxes
|
747.1
|
|
|
768.0
|
|
|
727.2
|
|
|
175.9
|
|
|
227.6
|
|
|
517.3
|
|
|
1,092.0
|
|
|
(3,403.4
|
)
|
|
851.7
|
|
|||||||||
Benefit (provision) for income taxes
|
0.5
|
|
|
(0.2
|
)
|
|
—
|
|
|
26.9
|
|
|
29.8
|
|
|
—
|
|
|
(149.5
|
)
|
|
—
|
|
|
(92.5
|
)
|
|||||||||
Earnings (loss) from continuing operations
|
747.6
|
|
|
767.8
|
|
|
727.2
|
|
|
202.8
|
|
|
257.4
|
|
|
517.3
|
|
|
942.5
|
|
|
(3,403.4
|
)
|
|
759.2
|
|
|||||||||
Discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.2
|
)
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
(6.8
|
)
|
|||||||||
Net earnings (loss)
|
747.6
|
|
|
767.8
|
|
|
727.2
|
|
|
202.8
|
|
|
250.2
|
|
|
517.3
|
|
|
942.9
|
|
|
(3,403.4
|
)
|
|
752.4
|
|
|||||||||
Less: Net earnings attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|||||||||
Net earnings (loss) attributable to Ingersoll-Rand plc
|
$
|
747.6
|
|
|
$
|
767.8
|
|
|
$
|
727.2
|
|
|
$
|
202.8
|
|
|
$
|
250.2
|
|
|
$
|
517.3
|
|
|
$
|
938.1
|
|
|
$
|
(3,403.4
|
)
|
|
$
|
747.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income (loss), net of tax
|
(75.0
|
)
|
|
(74.6
|
)
|
|
(71.5
|
)
|
|
(31.1
|
)
|
|
(31.3
|
)
|
|
(17.9
|
)
|
|
(70.9
|
)
|
|
297.3
|
|
|
(75.0
|
)
|
|||||||||
Comprehensive income (loss) attributable to Ingersoll-Rand plc
|
$
|
672.6
|
|
|
$
|
693.2
|
|
|
$
|
655.7
|
|
|
$
|
171.7
|
|
|
$
|
218.9
|
|
|
$
|
499.4
|
|
|
$
|
867.2
|
|
|
$
|
(3,106.1
|
)
|
|
$
|
672.6
|
|
in millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
638.3
|
|
|
$
|
—
|
|
|
$
|
6,122.0
|
|
|
$
|
(178.0
|
)
|
|
$
|
6,582.3
|
|
Cost of goods sold
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(486.9
|
)
|
|
—
|
|
|
(4,238.8
|
)
|
|
178.0
|
|
|
(4,547.7
|
)
|
|||||||||
Selling and administrative expenses
|
(6.8
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(248.6
|
)
|
|
(0.3
|
)
|
|
(1,040.1
|
)
|
|
—
|
|
|
(1,295.9
|
)
|
|||||||||
Operating income (loss)
|
(6.8
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(97.2
|
)
|
|
(0.3
|
)
|
|
843.1
|
|
|
—
|
|
|
738.7
|
|
|||||||||
Equity earnings (loss) in subsidiaries, net of tax
|
937.5
|
|
|
925.8
|
|
|
871.7
|
|
|
290.4
|
|
|
455.2
|
|
|
651.7
|
|
|
—
|
|
|
(4,132.3
|
)
|
|
—
|
|
|||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(63.7
|
)
|
|
(24.1
|
)
|
|
(22.2
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(113.2
|
)
|
|||||||||
Intercompany interest and fees
|
(31.5
|
)
|
|
—
|
|
|
(19.6
|
)
|
|
(78.8
|
)
|
|
(141.0
|
)
|
|
(3.0
|
)
|
|
273.9
|
|
|
—
|
|
|
—
|
|
|||||||||
Other income/(expense), net
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
—
|
|
|
399.3
|
|
|
—
|
|
|
396.8
|
|
|||||||||
Earnings (loss) before income taxes
|
899.3
|
|
|
925.8
|
|
|
852.0
|
|
|
147.9
|
|
|
190.3
|
|
|
626.2
|
|
|
1,513.1
|
|
|
(4,132.3
|
)
|
|
1,022.3
|
|
|||||||||
Benefit (provision) for income taxes
|
0.7
|
|
|
—
|
|
|
—
|
|
|
51.9
|
|
|
82.8
|
|
|
—
|
|
|
(269.8
|
)
|
|
—
|
|
|
(134.4
|
)
|
|||||||||
Earnings (loss) from continuing operations
|
900.0
|
|
|
925.8
|
|
|
852.0
|
|
|
199.8
|
|
|
273.1
|
|
|
626.2
|
|
|
1,243.3
|
|
|
(4,132.3
|
)
|
|
887.9
|
|
|||||||||
Discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.9
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
20.1
|
|
|||||||||
Net earnings (loss)
|
900.0
|
|
|
925.8
|
|
|
852.0
|
|
|
199.8
|
|
|
291.0
|
|
|
626.2
|
|
|
1,245.5
|
|
|
(4,132.3
|
)
|
|
908.0
|
|
|||||||||
Less: Net earnings attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|
—
|
|
|
(8.0
|
)
|
|||||||||
Net earnings (loss) attributable to Ingersoll-Rand plc
|
$
|
900.0
|
|
|
$
|
925.8
|
|
|
$
|
852.0
|
|
|
$
|
199.8
|
|
|
$
|
291.0
|
|
|
$
|
626.2
|
|
|
$
|
1,237.5
|
|
|
$
|
(4,132.3
|
)
|
|
$
|
900.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income (loss), net of tax
|
67.0
|
|
|
66.9
|
|
|
53.9
|
|
|
24.7
|
|
|
24.4
|
|
|
11.3
|
|
|
121.7
|
|
|
(302.9
|
)
|
|
67.0
|
|
|||||||||
Comprehensive income (loss) attributable to Ingersoll-Rand plc
|
$
|
967.0
|
|
|
$
|
992.7
|
|
|
$
|
905.9
|
|
|
$
|
224.5
|
|
|
$
|
315.4
|
|
|
$
|
637.5
|
|
|
$
|
1,359.2
|
|
|
$
|
(4,435.2
|
)
|
|
$
|
967.0
|
|
In millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
589.0
|
|
|
$
|
—
|
|
|
$
|
721.0
|
|
|
$
|
—
|
|
|
$
|
1,310.1
|
|
Accounts and notes receivable, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154.1
|
|
|
—
|
|
|
2,442.4
|
|
|
—
|
|
|
2,596.5
|
|
|||||||||
Inventories, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168.1
|
|
|
—
|
|
|
1,436.4
|
|
|
—
|
|
|
1,604.5
|
|
|||||||||
Other current assets
|
1.1
|
|
|
—
|
|
|
5.3
|
|
|
7.9
|
|
|
86.4
|
|
|
—
|
|
|
243.7
|
|
|
(0.5
|
)
|
|
343.9
|
|
|||||||||
Intercompany receivables
|
57.1
|
|
|
—
|
|
|
5.9
|
|
|
129.2
|
|
|
291.6
|
|
|
—
|
|
|
12,840.1
|
|
|
(13,323.9
|
)
|
|
—
|
|
|||||||||
Total current assets
|
58.2
|
|
|
—
|
|
|
11.3
|
|
|
137.1
|
|
|
1,289.2
|
|
|
—
|
|
|
17,683.6
|
|
|
(13,324.4
|
)
|
|
5,855.0
|
|
|||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
301.5
|
|
|
—
|
|
|
1,208.1
|
|
|
—
|
|
|
1,509.6
|
|
|||||||||
Goodwill and other intangible assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
410.7
|
|
|
—
|
|
|
9,119.3
|
|
|
—
|
|
|
9,530.0
|
|
|||||||||
Other noncurrent assets
|
0.2
|
|
|
—
|
|
|
—
|
|
|
277.1
|
|
|
683.5
|
|
|
—
|
|
|
613.2
|
|
|
(695.1
|
)
|
|
878.9
|
|
|||||||||
Investments in consolidated subsidiaries
|
8,334.6
|
|
|
1,758.1
|
|
|
2,616.3
|
|
|
7,739.6
|
|
|
15,945.9
|
|
|
1,166.0
|
|
|
—
|
|
|
(37,560.5
|
)
|
|
—
|
|
|||||||||
Intercompany notes receivable
|
—
|
|
|
12,560.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,517.2
|
|
|
(15,077.4
|
)
|
|
—
|
|
|||||||||
Total assets
|
$
|
8,393.0
|
|
|
$
|
14,318.3
|
|
|
$
|
2,627.6
|
|
|
$
|
8,153.8
|
|
|
$
|
18,630.8
|
|
|
$
|
1,166.0
|
|
|
$
|
31,141.4
|
|
|
$
|
(66,657.4
|
)
|
|
$
|
17,773.5
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Accounts payable and accrued expenses
|
$
|
8.4
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
|
$
|
107.0
|
|
|
$
|
534.5
|
|
|
$
|
6.9
|
|
|
$
|
2,885.7
|
|
|
$
|
(0.5
|
)
|
|
$
|
3,542.2
|
|
Short-term borrowings and current maturities of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
350.4
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
|
361.3
|
|
|||||||||
Intercompany payables
|
1,663.0
|
|
|
—
|
|
|
2,270.8
|
|
|
1,074.8
|
|
|
7,745.2
|
|
|
499.0
|
|
|
71.1
|
|
|
(13,323.9
|
)
|
|
—
|
|
|||||||||
Total current liabilities
|
1,671.4
|
|
|
—
|
|
|
2,271.0
|
|
|
1,181.8
|
|
|
8,630.1
|
|
|
505.9
|
|
|
2,967.7
|
|
|
(13,324.4
|
)
|
|
3,903.5
|
|
|||||||||
Long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
2,288.2
|
|
|
326.7
|
|
|
1,089.1
|
|
|
0.5
|
|
|
—
|
|
|
3,704.5
|
|
|||||||||
Other noncurrent liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
|
1,244.2
|
|
|
—
|
|
|
2,801.2
|
|
|
(695.1
|
)
|
|
3,371.5
|
|
|||||||||
Intercompany notes payable
|
—
|
|
|
—
|
|
|
6,376.3
|
|
|
1,817.2
|
|
|
700.0
|
|
|
—
|
|
|
6,183.9
|
|
|
(15,077.4
|
)
|
|
—
|
|
|||||||||
Total liabilities
|
1,671.4
|
|
|
—
|
|
|
8,647.3
|
|
|
5,308.4
|
|
|
10,901.0
|
|
|
1,595.0
|
|
|
11,953.3
|
|
|
(29,096.9
|
)
|
|
10,979.5
|
|
|||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total equity
|
6,721.6
|
|
|
14,318.3
|
|
|
(6,019.7
|
)
|
|
2,845.4
|
|
|
7,729.8
|
|
|
(429.0
|
)
|
|
19,188.1
|
|
|
(37,560.5
|
)
|
|
6,794.0
|
|
|||||||||
Total liabilities and equity
|
$
|
8,393.0
|
|
|
$
|
14,318.3
|
|
|
$
|
2,627.6
|
|
|
$
|
8,153.8
|
|
|
$
|
18,630.8
|
|
|
$
|
1,166.0
|
|
|
$
|
31,141.4
|
|
|
$
|
(66,657.4
|
)
|
|
$
|
17,773.5
|
|
In millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
634.6
|
|
|
$
|
—
|
|
|
$
|
1,080.1
|
|
|
$
|
—
|
|
|
$
|
1,714.7
|
|
Accounts and notes receivable, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
171.0
|
|
|
—
|
|
|
2,052.0
|
|
|
—
|
|
|
2,223.0
|
|
|||||||||
Inventories, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165.3
|
|
|
—
|
|
|
1,220.5
|
|
|
—
|
|
|
1,385.8
|
|
|||||||||
Other current assets
|
0.2
|
|
|
—
|
|
|
5.3
|
|
|
0.7
|
|
|
69.4
|
|
|
—
|
|
|
189.3
|
|
|
(9.1
|
)
|
|
255.8
|
|
|||||||||
Intercompany receivables
|
122.3
|
|
|
—
|
|
|
5.6
|
|
|
271.6
|
|
|
220.5
|
|
|
—
|
|
|
11,747.9
|
|
|
(12,367.9
|
)
|
|
—
|
|
|||||||||
Total current assets
|
122.5
|
|
|
—
|
|
|
10.9
|
|
|
272.3
|
|
|
1,260.8
|
|
|
—
|
|
|
16,289.8
|
|
|
(12,377.0
|
)
|
|
5,579.3
|
|
|||||||||
Property, plant and equipment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
445.9
|
|
|
—
|
|
|
1,065.1
|
|
|
—
|
|
|
1,511.0
|
|
|||||||||
Goodwill and other intangible assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
414.7
|
|
|
—
|
|
|
9,028.8
|
|
|
—
|
|
|
9,443.5
|
|
|||||||||
Other noncurrent assets
|
0.2
|
|
|
—
|
|
|
—
|
|
|
262.4
|
|
|
676.3
|
|
|
—
|
|
|
580.1
|
|
|
(655.4
|
)
|
|
863.6
|
|
|||||||||
Investments in consolidated subsidiaries
|
7,588.1
|
|
|
1,500.4
|
|
|
3,267.1
|
|
|
7,270.2
|
|
|
15,273.4
|
|
|
1,090.4
|
|
|
—
|
|
|
(35,989.6
|
)
|
|
—
|
|
|||||||||
Intercompany notes receivable
|
—
|
|
|
12,560.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,851.8
|
|
|
(16,412.0
|
)
|
|
—
|
|
|||||||||
Total assets
|
$
|
7,710.8
|
|
|
$
|
14,060.6
|
|
|
$
|
3,278.0
|
|
|
$
|
7,804.9
|
|
|
$
|
18,071.1
|
|
|
$
|
1,090.4
|
|
|
$
|
30,815.6
|
|
|
$
|
(65,434.0
|
)
|
|
$
|
17,397.4
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Accounts payable and accrued expenses
|
7.7
|
|
|
—
|
|
|
0.2
|
|
|
36.3
|
|
|
525.1
|
|
|
7.0
|
|
|
2,662.3
|
|
|
(9.1
|
)
|
|
3,229.5
|
|
|||||||||
Short-term borrowings and current maturities of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
350.4
|
|
|
—
|
|
|
10.4
|
|
|
—
|
|
|
360.8
|
|
|||||||||
Intercompany payables
|
1,059.3
|
|
|
—
|
|
|
3,400.1
|
|
|
1,068.2
|
|
|
6,285.6
|
|
|
486.9
|
|
|
67.8
|
|
|
(12,367.9
|
)
|
|
—
|
|
|||||||||
Total current liabilities
|
1,067.0
|
|
|
—
|
|
|
3,400.3
|
|
|
1,104.5
|
|
|
7,161.1
|
|
|
493.9
|
|
|
2,740.5
|
|
|
(12,377.0
|
)
|
|
3,590.3
|
|
|||||||||
Long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
2,286.3
|
|
|
334.2
|
|
|
1,088.3
|
|
|
0.6
|
|
|
—
|
|
|
3,709.4
|
|
|||||||||
Other noncurrent liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
18.2
|
|
|
1,280.8
|
|
|
—
|
|
|
2,735.8
|
|
|
(655.4
|
)
|
|
3,379.4
|
|
|||||||||
Intercompany notes payable
|
—
|
|
|
—
|
|
|
6,376.3
|
|
|
1,817.2
|
|
|
2,034.6
|
|
|
—
|
|
|
6,183.9
|
|
|
(16,412.0
|
)
|
|
—
|
|
|||||||||
Total liabilities
|
1,067.0
|
|
|
—
|
|
|
9,776.6
|
|
|
5,226.2
|
|
|
10,810.7
|
|
|
1,582.2
|
|
|
11,660.8
|
|
|
(29,444.4
|
)
|
|
10,679.1
|
|
|||||||||
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total equity
|
6,643.8
|
|
|
14,060.6
|
|
|
(6,498.6
|
)
|
|
2,578.7
|
|
|
7,260.4
|
|
|
(491.8
|
)
|
|
19,154.8
|
|
|
(35,989.6
|
)
|
|
6,718.3
|
|
|||||||||
Total liabilities and equity
|
$
|
7,710.8
|
|
|
$
|
14,060.6
|
|
|
$
|
3,278.0
|
|
|
$
|
7,804.9
|
|
|
$
|
18,071.1
|
|
|
$
|
1,090.4
|
|
|
$
|
30,815.6
|
|
|
$
|
(65,434.0
|
)
|
|
$
|
17,397.4
|
|
in millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net cash provided by (used in) continuing operating activities
|
$
|
75.4
|
|
|
$
|
—
|
|
|
$
|
(17.5
|
)
|
|
$
|
(142.5
|
)
|
|
$
|
139.0
|
|
|
$
|
(23.7
|
)
|
|
$
|
391.6
|
|
|
$
|
—
|
|
|
$
|
422.3
|
|
Net cash provided by (used in) discontinued operating activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.5
|
)
|
|
—
|
|
|
(2.3
|
)
|
|
—
|
|
|
(16.8
|
)
|
|||||||||
Net cash provided by (used in) operating activities
|
75.4
|
|
|
—
|
|
|
(17.5
|
)
|
|
(142.5
|
)
|
|
124.5
|
|
|
(23.7
|
)
|
|
389.3
|
|
|
—
|
|
|
405.5
|
|
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capital expenditures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.9
|
)
|
|
—
|
|
|
(53.6
|
)
|
|
—
|
|
|
(79.5
|
)
|
|||||||||
Acquisition of businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.9
|
)
|
|
—
|
|
|
(39.9
|
)
|
|||||||||
Proceeds from sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|||||||||
Intercompany investing activities, net
|
—
|
|
|
—
|
|
|
1,153.0
|
|
|
142.7
|
|
|
—
|
|
|
11.7
|
|
|
589.4
|
|
|
(1,896.8
|
)
|
|
—
|
|
|||||||||
Net cash provided by (used in) investing activities
|
—
|
|
|
—
|
|
|
1,153.0
|
|
|
142.7
|
|
|
(25.9
|
)
|
|
11.7
|
|
|
496.4
|
|
|
(1,896.8
|
)
|
|
(118.9
|
)
|
|||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Short-term borrowings (payments), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.5
|
)
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(7.6
|
)
|
|||||||||
Debt issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||||||
Dividends paid to ordinary shareholders
|
(204.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(204.8
|
)
|
|||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
|
(7.0
|
)
|
|||||||||
Acquisition of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.8
|
)
|
|
—
|
|
|
(6.8
|
)
|
|||||||||
Repurchase of ordinary shares
|
(575.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(575.2
|
)
|
|||||||||
Other financing activities, net
|
35.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
34.7
|
|
|||||||||
Intercompany financing activities, net
|
669.6
|
|
|
—
|
|
|
(1,135.4
|
)
|
|
—
|
|
|
(135.7
|
)
|
|
12.0
|
|
|
(1,307.3
|
)
|
|
1,896.8
|
|
|
—
|
|
|||||||||
Net cash provided by (used in) financing activities
|
(75.4
|
)
|
|
—
|
|
|
(1,135.4
|
)
|
|
(0.2
|
)
|
|
(144.2
|
)
|
|
12.0
|
|
|
(1,320.5
|
)
|
|
1,896.8
|
|
|
(766.9
|
)
|
|||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75.7
|
|
|
—
|
|
|
75.7
|
|
|||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(45.6
|
)
|
|
—
|
|
|
(359.1
|
)
|
|
—
|
|
|
(404.6
|
)
|
|||||||||
Cash and cash equivalents - beginning of period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
634.6
|
|
|
—
|
|
|
1,080.1
|
|
|
—
|
|
|
1,714.7
|
|
|||||||||
Cash and cash equivalents - end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
589.0
|
|
|
$
|
—
|
|
|
$
|
721.0
|
|
|
$
|
—
|
|
|
$
|
1,310.1
|
|
in millions
|
Plc
|
|
Irish
Holdings |
|
Lux International
|
|
Global
Holding |
|
New
Jersey |
|
Lux
Finance |
|
Other
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated |
||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net cash provided by (used in) continuing operating activities
|
$
|
(32.0
|
)
|
|
$
|
—
|
|
|
$
|
(11.4
|
)
|
|
$
|
(134.7
|
)
|
|
$
|
247.5
|
|
|
$
|
(20.8
|
)
|
|
$
|
354.3
|
|
|
$
|
—
|
|
|
$
|
402.9
|
|
Net cash provided by (used in) discontinued operating activities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18.7
|
|
|
—
|
|
|
6.5
|
|
|
—
|
|
|
25.2
|
|
|||||||||
Net cash provided by (used in) operating activities
|
(32.0
|
)
|
|
—
|
|
|
(11.4
|
)
|
|
(134.7
|
)
|
|
266.2
|
|
|
(20.8
|
)
|
|
360.8
|
|
|
—
|
|
|
428.1
|
|
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capital expenditures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.0
|
)
|
|
—
|
|
|
(44.0
|
)
|
|
—
|
|
|
(83.0
|
)
|
|||||||||
Acquisition of businesses, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.2
|
)
|
|||||||||
Proceeds from sale of property, plant and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|||||||||
Proceeds from business disposition, net of cash sold
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
422.5
|
|
|
—
|
|
|
422.5
|
|
|||||||||
Intercompany investing activities, net
|
(160.0
|
)
|
|
(19,535.7
|
)
|
|
(3.5
|
)
|
|
(314.8
|
)
|
|
65.7
|
|
|
243.7
|
|
|
(919.3
|
)
|
|
20,623.9
|
|
|
—
|
|
|||||||||
Net cash provided by (used in) investing activities
|
(160.0
|
)
|
|
(19,535.7
|
)
|
|
(3.5
|
)
|
|
(314.8
|
)
|
|
17.5
|
|
|
243.7
|
|
|
(538.4
|
)
|
|
20,623.9
|
|
|
332.7
|
|
|||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Short-term borrowings (payments), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7.6
|
)
|
|
(143.0
|
)
|
|
—
|
|
|
—
|
|
|
(150.6
|
)
|
|||||||||
Debt issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
|||||||||
Dividends paid to ordinary shareholders
|
(162.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(162.5
|
)
|
|||||||||
Dividends paid to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
|
—
|
|
|
(6.7
|
)
|
|||||||||
Repurchase of ordinary shares
|
(250.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250.1
|
)
|
|||||||||
Other financing activities, net
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|||||||||
Intercompany financing activities, net
|
603.8
|
|
|
19,535.7
|
|
|
14.9
|
|
|
440.2
|
|
|
(59.6
|
)
|
|
(80.0
|
)
|
|
168.9
|
|
|
(20,623.9
|
)
|
|
—
|
|
|||||||||
Net cash provided by (used in) financing activities
|
192.0
|
|
|
19,535.7
|
|
|
14.9
|
|
|
438.1
|
|
|
(67.2
|
)
|
|
(223.0
|
)
|
|
162.2
|
|
|
(20,623.9
|
)
|
|
(571.2
|
)
|
|||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.4
|
)
|
|
216.5
|
|
|
(0.1
|
)
|
|
(13.0
|
)
|
|
—
|
|
|
192.0
|
|
|||||||||
Cash and cash equivalents - beginning of period
|
—
|
|
|
—
|
|
|
—
|
|
|
11.4
|
|
|
—
|
|
|
0.1
|
|
|
725.3
|
|
|
—
|
|
|
736.8
|
|
|||||||||
Cash and cash equivalents - end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
216.5
|
|
|
$
|
—
|
|
|
$
|
712.3
|
|
|
$
|
—
|
|
|
$
|
928.8
|
|
Dollar amounts in millions
|
2017
|
|
2016
|
|
Period Change
|
|
2017 % of
revenues |
|
2016 % of
revenues |
||||||||
Net revenues
|
$
|
3,908.4
|
|
|
$
|
3,688.2
|
|
|
$
|
220.2
|
|
|
|
|
|
||
Cost of goods sold
|
(2,653.1
|
)
|
|
(2,506.5
|
)
|
|
(146.6
|
)
|
|
67.9
|
%
|
|
68.0
|
%
|
|||
Selling and administrative expenses
|
(697.7
|
)
|
|
(668.4
|
)
|
|
(29.3
|
)
|
|
17.9
|
%
|
|
18.1
|
%
|
|||
Operating income
|
557.6
|
|
|
513.3
|
|
|
44.3
|
|
|
14.3
|
%
|
|
13.9
|
%
|
|||
Interest expense
|
(54.1
|
)
|
|
(56.5
|
)
|
|
2.4
|
|
|
|
|
|
|||||
Other income/(expense), net
|
(11.5
|
)
|
|
394.9
|
|
|
(406.4
|
)
|
|
|
|
|
|||||
Earnings before income taxes
|
492.0
|
|
|
851.7
|
|
|
(359.7
|
)
|
|
|
|
|
|||||
Provision for income taxes
|
(138.1
|
)
|
|
(92.5
|
)
|
|
(45.6
|
)
|
|
|
|
|
|||||
Earnings from continuing operations
|
353.9
|
|
|
759.2
|
|
|
(405.3
|
)
|
|
|
|
|
|||||
Discontinued operations, net of tax
|
8.3
|
|
|
(6.8
|
)
|
|
15.1
|
|
|
|
|
|
|||||
Net earnings
|
$
|
362.2
|
|
|
$
|
752.4
|
|
|
$
|
(390.2
|
)
|
|
|
|
|
Volume/product mix
|
6.1
|
%
|
Pricing
|
0.6
|
%
|
Currency translation
|
(0.7
|
)%
|
Total
|
6.0
|
%
|
Dollar amounts in millions
|
2017
|
|
2016
|
|
% change
|
||||
Climate
|
$
|
3,143.8
|
|
|
$
|
2,934.8
|
|
|
7.1%
|
Industrial
|
764.6
|
|
|
753.4
|
|
|
1.5%
|
||
Total
|
$
|
3,908.4
|
|
|
$
|
3,688.2
|
|
|
|
Volume/product mix
|
7.3
|
%
|
Pricing
|
0.4
|
%
|
Currency translation
|
(0.6
|
)%
|
Total
|
7.1
|
%
|
Volume/product mix
|
1.6
|
%
|
Pricing
|
0.9
|
%
|
Currency translation
|
(1.0
|
)%
|
Total
|
1.5
|
%
|
Dollar amounts in millions
|
|
2017 Operating Income (Expense)
|
|
2016 Operating Income (Expense)
|
|
Period Change
|
2017 Operating Margin
|
|
2016 Operating Margin
|
||||||||
Climate
|
|
$
|
527.1
|
|
|
$
|
496.8
|
|
|
$
|
30.3
|
|
16.8
|
%
|
|
16.9
|
%
|
Industrial
|
|
92.2
|
|
|
70.2
|
|
|
22.0
|
|
12.1
|
%
|
|
9.3
|
%
|
|||
Unallocated corporate expenses
|
|
(61.7
|
)
|
|
(53.7
|
)
|
|
(8.0
|
)
|
N/A
|
|
|
N/A
|
|
|||
Total
|
|
$
|
557.6
|
|
|
$
|
513.3
|
|
|
$
|
44.3
|
|
14.3
|
%
|
|
13.9
|
%
|
In millions
|
2017
|
|
2016
|
||||
Interest income
|
$
|
1.3
|
|
|
$
|
2.6
|
|
Exchange gain (loss)
|
(3.4
|
)
|
|
3.8
|
|
||
Other components of net periodic benefit cost
|
(6.2
|
)
|
|
(8.1
|
)
|
||
Income (loss) from Hussmann equity investment
|
—
|
|
|
397.8
|
|
||
Other activity, net
|
(3.2
|
)
|
|
(1.2
|
)
|
||
Other income/(expense), net
|
$
|
(11.5
|
)
|
|
$
|
394.9
|
|
In millions, except per share amounts
|
2017
|
|
2016
|
|
Period Change
|
|
2017 % of
revenues |
|
2016 % of
revenues |
||||||||
Net revenues
|
$
|
6,909.0
|
|
|
$
|
6,582.3
|
|
|
$
|
326.7
|
|
|
|
|
|
||
Cost of goods sold
|
(4,779.2
|
)
|
|
(4,547.7
|
)
|
|
(231.5
|
)
|
|
69.2
|
%
|
|
69.1
|
%
|
|||
Selling and administrative expenses
|
(1,357.2
|
)
|
|
(1,295.9
|
)
|
|
(61.3
|
)
|
|
19.6
|
%
|
|
19.7
|
%
|
|||
Operating income
|
772.6
|
|
|
738.7
|
|
|
33.9
|
|
|
11.2
|
%
|
|
11.2
|
%
|
|||
Interest expense
|
(108.1
|
)
|
|
(113.2
|
)
|
|
5.1
|
|
|
|
|
|
|||||
Other income/(expense), net
|
(16.2
|
)
|
|
396.8
|
|
|
(413.0
|
)
|
|
|
|
|
|||||
Earnings before income taxes
|
648.3
|
|
|
1,022.3
|
|
|
(374.0
|
)
|
|
|
|
|
|||||
Provision for income taxes
|
(166.8
|
)
|
|
(134.4
|
)
|
|
(32.4
|
)
|
|
|
|
|
|||||
Earnings from continuing operations
|
481.5
|
|
|
887.9
|
|
|
(406.4
|
)
|
|
|
|
|
|||||
Discontinued operations, net of tax
|
1.8
|
|
|
20.1
|
|
|
(18.3
|
)
|
|
|
|
|
|||||
Net earnings
|
$
|
483.3
|
|
|
$
|
908.0
|
|
|
$
|
(424.7
|
)
|
|
|
|
|
Volume/product mix
|
5.2
|
%
|
Pricing
|
0.5
|
%
|
Currency translation
|
(0.7
|
)%
|
Total
|
5.0
|
%
|
Dollar amounts in millions
|
2017
|
|
2016
|
|
% change
|
||||
Climate
|
$
|
5,467.9
|
|
|
$
|
5,148.3
|
|
|
6.2%
|
Industrial
|
1,441.1
|
|
|
1,434.0
|
|
|
0.5%
|
||
Total
|
$
|
6,909.0
|
|
|
$
|
6,582.3
|
|
|
|
Volume/product mix
|
6.5
|
%
|
Pricing
|
0.3
|
%
|
Currency translation
|
(0.6
|
)%
|
Total
|
6.2
|
%
|
Pricing
|
1.0
|
%
|
Volume/product mix
|
0.6
|
%
|
Currency translation
|
(1.1
|
)%
|
Total
|
0.5
|
%
|
Dollar amounts in millions
|
|
2017 Operating Income (Expense)
|
|
2016 Operating Income (Expense)
|
|
Period Change
|
2017 Operating Margin
|
|
2016 Operating Margin
|
||||||||
Climate
|
|
$
|
744.4
|
|
|
$
|
714.1
|
|
|
$
|
30.3
|
|
13.6
|
%
|
|
13.9
|
%
|
Industrial
|
|
158.0
|
|
|
134.1
|
|
|
23.9
|
|
11.0
|
%
|
|
9.4
|
%
|
|||
Unallocated corporate expenses
|
|
(129.8
|
)
|
|
(109.5
|
)
|
|
(20.3
|
)
|
N/A
|
|
|
N/A
|
|
|||
Total
|
|
$
|
772.6
|
|
|
$
|
738.7
|
|
|
$
|
33.9
|
|
11.2
|
%
|
|
11.2
|
%
|
In millions
|
2017
|
|
2016
|
||||
Interest income
|
$
|
4.4
|
|
|
$
|
4.6
|
|
Exchange gain (loss)
|
(1.5
|
)
|
|
9.3
|
|
||
Other components of net periodic benefit cost
|
(14.4
|
)
|
|
(16.2
|
)
|
||
Income (loss) from equity investment
|
—
|
|
|
(0.8
|
)
|
||
Income (loss) from Hussmann equity investment
|
—
|
|
|
397.8
|
|
||
Other activity, net
|
(4.7
|
)
|
|
2.1
|
|
||
Other income/(expense), net
|
$
|
(16.2
|
)
|
|
$
|
396.8
|
|
•
|
Funding of working capital
|
•
|
Funding of capital expenditures
|
•
|
Debt service requirements
|
In millions
|
June 30,
2017 |
|
December 31,
2016 |
||||
Cash and cash equivalents
|
$
|
1,310.1
|
|
|
$
|
1,714.7
|
|
Short-term borrowings and current maturities of long-term debt
|
361.3
|
|
|
360.8
|
|
||
Long-term debt
|
3,704.5
|
|
|
3,709.4
|
|
||
Total debt
|
4,065.8
|
|
|
4,070.2
|
|
||
Total Ingersoll-Rand plc shareholders’ equity
|
6,721.6
|
|
|
6,643.8
|
|
||
Total equity
|
6,794.0
|
|
|
6,718.3
|
|
||
Debt-to-total capital ratio
|
37.4
|
%
|
|
37.7
|
%
|
In millions
|
June 30,
2017 |
|
December 31,
2016 |
||||
Debentures with put feature
|
$
|
343.0
|
|
|
$
|
343.0
|
|
Other current maturities of long-term debt
|
7.7
|
|
|
7.7
|
|
||
Other short-term borrowings
|
10.6
|
|
|
10.1
|
|
||
Total
|
$
|
361.3
|
|
|
$
|
360.8
|
|
In millions
|
2017
|
|
2016
|
||||
Net cash provided by (used in) continuing operating activities
|
$
|
422.3
|
|
|
$
|
402.9
|
|
Net cash provided by (used in) continuing investing activities
|
(118.9
|
)
|
|
332.7
|
|
||
Net cash provided by (used in) continuing financing activities
|
(766.9
|
)
|
|
(571.2
|
)
|
•
|
overall economic, political and business conditions in the markets in which we operate;
|
•
|
the demand for our products and services;
|
•
|
competitive factors in the industries in which we compete;
|
•
|
changes in tax requirements (including tax rate changes, new tax laws and revised tax law interpretations);
|
•
|
the outcome of any litigation, governmental investigations or proceedings;
|
•
|
the outcome of any income tax audits or settlements;
|
•
|
interest rate fluctuations and other changes in borrowing costs;
|
•
|
other capital market conditions, including availability of funding sources;
|
•
|
currency exchange rate fluctuations, exchange controls and currency devaluations;
|
•
|
availability of and fluctuations in the prices of key commodities and the impact of higher energy prices;
|
•
|
impairment of our goodwill, indefinite-lived intangible assets and/or our long-lived assets;
|
•
|
climate change, changes in weather patterns and seasonal fluctuations;
|
•
|
the impact of potential information technology or data security breaches;
|
•
|
the strategic acquisition of businesses, product lines and joint ventures; and
|
•
|
the possible effects on us of future tax and other legislation (including legislation that may limit or eliminate potential tax benefits resulting from our incorporation in a non-U.S. jurisdiction, such as Ireland).
|
Period
|
|
Total number of shares purchased (000's) (a) (b) (c)
|
|
Average price paid per share (a) (b) (c)
|
|
Total number of shares purchased as part of program (000's) (a) (c)
|
|
Approximate dollar value of shares still available to be purchased under the program ($000's) (a) (c)
|
||||||
April 1 - April 30
|
|
2,020.4
|
|
|
$
|
82.48
|
|
|
2,020.0
|
|
|
$
|
—
|
|
May 1 - May 31
|
|
758.5
|
|
|
88.74
|
|
|
758.5
|
|
|
1,432,689
|
|
||
June 1 - June 30
|
|
1,186.9
|
|
|
90.02
|
|
|
1,175.0
|
|
|
1,326,914
|
|
||
Total
|
|
3,965.8
|
|
|
$
|
85.93
|
|
|
3,953.5
|
|
|
|
Exhibit No.
|
|
Description
|
|
Method of Filing
|
|
|
|
||
10.1
|
|
IR Executive Deferred Compensation Plan (as amended and restated effective as of January 1, 2017
|
|
Filed herewith.
|
|
|
|
|
|
10.2
|
|
IR Executive Deferred Compensation Plan II (as amended and restated effective as of January 1, 2017)
|
|
Filed herewith.
|
|
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Filed herewith.
|
|
|
|
||
31.2
|
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Filed herewith.
|
|
|
|
||
32
|
|
Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Furnished herewith.
|
|
|
|
||
101
|
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Comprehensive Income, (ii) the Condensed Consolidated Balance Sheets, (iii) the Condensed Consolidated Statement of Cash Flows, and (iv) Notes to Condensed Consolidated Financial Statements.
|
|
Filed herewith.
|
|
|
INGERSOLL-RAND PLC
(Registrant)
|
|
|
|
Date:
|
July 26, 2017
|
/s/ Susan K. Carter
|
|
|
Susan K. Carter, Senior Vice President
and Chief Financial Officer
Principal Financial Officer
|
|
|
|
Date:
|
July 26, 2017
|
/s/ Christopher J. Kuehn
|
|
|
Christopher J. Kuehn, Vice President and Chief Accounting Officer
Principal Accounting Officer
|
2.1
|
“Account Balance”
means, for each Plan Year, a credit on the records of the Company equal to the sum of the value of a Participant’s Deferral Account, Supplemental Contribution Account, Discretionary Company Contribution Account
|
2.2
|
“Administrative Committee”
shall mean the committee appointed by the Chief Executive Officer of the Company which will administer the Plan in accordance with the duties delegated to it by the Compensation Committee or as set forth herein.
|
2.3
|
“Base Salary”
means a Participant’s annual base salary, excluding bonuses, commissions, incentive compensation and all other remuneration for services rendered to the Company or a Participating Employer and prior to a reduction for any salary contributions to a plan established pursuant to Code Section 125 or qualified pursuant to Code Section 401(k).
|
2.4
|
“Beneficiary”
means the person or persons designated as such in accordance with Section 8.
|
2.5
|
“Beneficiary Designation Form”
means the form established from time to time by the Administrative Committee that a Participant completes and returns to the Administrative Committee to designate one or more Beneficiaries.
|
2.6
|
“Cash Incentive Compensation Award”
means any of the Participant’s annual cash incentive compensation awards.
|
2.7
|
“Change in Control”
means a “change in control of the Company” (as set forth in the Company's Incentive Stock Plan of 2007) or any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company, other than any sale, lease, exchange or other transfer to any person or entity where the Company owns, directly or indirectly, at least 80 percent of the outstanding voting securities of such person or entity after any such transfer, unless a different definition is used for purposes of any severance of employment agreement or change of control arrangement between the Company and a Participant, in which event such definition shall apply. Notwithstanding the foregoing, for purposes of this Section 2.7, the term “Company” shall mean Ingersoll-Rand plc.
|
2.8
|
“Code”
means the Internal Revenue Code of 1986, as amended from time to time.
|
2.9
|
“Compensation Committee”
means the Compensation Committee of the Board of Directors of Ingersoll-Rand plc.
|
2.10
|
“Deferral Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Deferral Amounts, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s Deferral Account, less
|
2.11
|
“Deferral Amount”
means the amount of a Participant’s Cash Incentive Compensation Award, Base Salary and Dividends on Stock Grants actually deferred under the Plan by the Participant pursuant to Section 4 for any one Plan Year. Effective May 29, 2003, Deferral Amount shall also mean, with respect to a Participant who participates in the Ingersoll-Rand Company Elected Officers Supplemental Program or the Ingersoll-Rand Company Supplemental Key Management Plan, the amount that would be payable to the Participant under the Ingersoll-Rand Company Elected Officers Supplemental Program, Ingersoll-Rand Company Supplemental Key Management Plan, Ingersoll-Rand Company Supplemental Employee Savings Plan and/or the Ingersoll-Rand Company Supplemental Pension Plan but for the Participant’s deferral under Section 4 of the Plan and the applicable provisions of the Ingersoll-Rand Company Supplemental Employee Savings Plan and/or the Ingersoll-Rand Company Supplemental Pension Plan.
|
2.12
|
“Disability”
means the Participant is eligible to receive benefits under a long-term disability plan maintained by the Company or a Participating Employer.
|
2.13
|
“Discretionary Company Contribution”
means an additional amount to be credited to a Participant's Discretionary Contribution Account for a Plan Year.
|
2.14
|
“Discretionary Company Contribution Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Discretionary Company Contributions, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s Discretionary Company Contribution Account, less (iii) all distributions made to the Participant or to the Participant’s Beneficiary pursuant to the Plan that relate to the Participant’s Discretionary Company Contribution Account.
|
2.15
|
“Dividends on Stock Grants”
means the dividends on deferred stock grants payable to a Participant pursuant to the Ingersoll-Rand Company Incentive Stock Plan of 1998 or any successor plan thereto.
|
2.16
|
“Early Distribution”
means an election by the Participant, pursuant to Section 7.6, to receive a distribution of amounts from the Participant’s Deferral Account, IR Stock Account, vested Discretionary Company Contribution Account and vested Supplemental Contribution Account with respect to a specific Plan Year prior to the time at which such Participant would otherwise be entitled to such amounts.
|
2.17
|
“Effective Time”
means the Effective Time as such time is defined in the Merger Agreement.
|
2.18
|
“Elected Officer”
means an officer of the Company elected to such position by the Board of Directors of the Company.
|
2.19
|
“Election Form”
means the form or forms established from time to time by the Administrative Committee that a Participant completes, signs and returns to the Administrative Committee to make an election under the Plan. An Election Form also includes any other method approved by the Administrative Committee, in its sole and absolute discretion, that a Participant may use to make an election under the Plan. The terms and conditions specified in the Election Form(s) are incorporated by reference herein and form a part of the Plan. If there is a conflict between the Election Form and the Plan, the terms of the Plan shall control and govern.
|
2.20
|
“Eligible Employee”
means an Elected Officer or an individual who is among a select group of management and highly compensated employees of the Company or a Participating Employer who has been selected by the Administrative Committee, in its sole and absolute discretion, to participate in the Plan.
|
2.21
|
“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.
|
2.22
|
“Investment Option Subaccounts”
means the separate subaccounts, each of which corresponds to an investment option elected by the Participant or, as provided in Section 6.3 regarding Discretionary Company Contributions, the Administrative Committee, with respect to a Participant’s Deferral Accounts and/or Discretionary Company Contribution Accounts, as applicable.
|
2.23
|
“IR Stock
” means the ordinary shares, par value $1.00 per share, of Ingersoll-Rand plc, an Irish company.
|
2.24
|
“IR Stock Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Deferral Amounts and Discretionary Company Contributions that are deemed to be invested in IR Stock, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s IR Stock Account, less (iii) all distributions made to the Participant or to the Participant’s Beneficiary pursuant to the Plan that relate to the Participant’s IR Stock Account.
|
2.25
|
“Merger Agreement”
means that certain Agreement and Plan of Merger among the Company, Ingersoll-Rand Company Limited, and IR Merger Corporation dated as of October 31, 2001, pursuant to which the Company became an indirect wholly-owned subsidiary of Ingersoll-Rand Company Limited.
|
2.26
|
“Participant”
means an Eligible Employee participating in the Plan in accordance with the provisions of Section 4.
|
2.27
|
“Participating Employer”
means any direct or indirect parent, subsidiary or affiliate of the Company.
|
2.28
|
“Plan Year”
means a calendar year.
|
2.29
|
“Retirement”
means termination of employment by a Participant after he or she has attained age 65 (62 for Elected Officers) or termination at or after age 55 with at least five (5) years of Service.
|
2.30
|
“Return”
means, for each investment option, an amount equal to the net investment return (including changes in value and distributions) for each such investment option during each business day.
|
2.31
|
“Service”
means periods of service with the Company or a Participating Employer as determined by the Administrative Committee in its sole and absolute discretion.
|
2.32
|
“Supplemental Contribution”
means an additional amount to be credited to a Participant’s Supplemental Contribution Account equal to twenty percent (20%) of the Participant’s Cash Incentive Compensation Award that is deferred under Section 6.1 of the Plan for a Plan Year by the Participant and is, at the time of making the deferral election, elected to be invested in the Participant’s IR Stock Account. Supplemental Contributions shall be available and credited only to Participants whose job category indicates specified ownership guidelines as determined by the Compensation Committee in its sole and absolute discretion.
|
2.33
|
“Supplemental Contribution Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Supplemental Contributions, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s Supplemental Contribution Account, less (iii) all distributions made to the Participant or to the Participant’s Beneficiary pursuant to the Plan that relate to the Participant’s Supplemental Contribution Account.
|
2.34
|
“Trust”
means the Ingersoll-Rand Company Deferred Compensation Trust Agreement, dated as of January 1, 2001 between the Company and the trustee named therein, as amended from time to time.
|
2.35
|
“Unforeseeable Financial Emergency”
means severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, loss of the Participant’s property due to casualty or other similar or extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. The circumstances that would constitute an unforeseeable financial emergency will depend upon the facts of each case, but, in any case, a hardship benefit may not be made to the extent that such hardship is or may be relieved (i) through reimbursement or compensation by insurance or otherwise, (ii) by liquidation of the Participant's assets, to the extent
|
4.1
|
Participation and Deferral Election
. Any Eligible Employee may elect to participate in the Plan for a given Plan Year by filing a completed Election Form for the Plan Year in the manner prescribed by the Administrative Committee. The Election Form must specify the percentage or dollar amount of any Deferral Amount otherwise payable during such Plan Year that will be deferred under the Plan. Notwithstanding the previous sentence, an election to defer Dividends on Stock Grants shall be equal to one hundred percent (100%) of the Dividends on Stock Grants. The minimum total dollar amount of a Participant’s Deferral Amount that a Participant may defer under the Plan for any Plan Year is $5,000. Any election to defer a Deferral Amount is irrevocable upon the filing of the Election Form, and must be properly completed and filed no later than the November 30 immediately preceding such Plan Year, or such other date as the Administrative Committee may
|
4.2
|
Investment Election
. In accordance with procedures established by the Administrative Committee in its sole and absolute discretion, prior to the time a Participant’s Deferral Amounts are credited to a Participant’s Deferral Account pursuant to Section 6.1, the Participant shall designate, on an Election Form, the types of investment options in which the Participant’s Deferral Amounts will be deemed to be invested for purposes of determining the amount of earnings to be credited to the Participant’s Deferral Account and, with respect to Deferral Amounts that are designated by the Participant to be deemed to be invested in IR Stock, the IR Stock Account.
|
5.1.
|
Deferral Amounts
. A Participant shall be fully vested in his or her Deferral Account.
|
5.2.
|
Supplemental Contributions
. A Participant shall vest in his or her Supplemental Contribution Account on the earliest of: (i) the fifth anniversary of the date the Supplemental Contribution is credited to the Participant's Supplemental Contribution Account; (ii) the date of the Participant's Retirement; (iii) the Participant’s Disability; (iv) the Participant's death; (v) a Change in Control; or (vi) a termination of the Plan pursuant to Section 9.2.
|
5.3.
|
Discretionary Contributions.
A Participant shall vest in his or her Discretionary Company Contribution Account on the earliest of: (i) the date determined by the Administrative Committee; (ii) the date of the Participant’s Disability; (iii) the date of the Participant’s death; (iv) a Change in Control; or (v) a termination of the Plan pursuant to Section 9.2. Notwithstanding the above, to the extent an agreement between the Company and the Participant contains provisions governing vesting with regards to a Discretionary Company Contribution made on behalf of the Participant, the terms of such agreement shall apply.
|
6.1
|
Deferral Accounts
. The Administrative Committee shall establish and maintain a separate Deferral Account for each Participant for each Plan Year. All Deferral Amounts, other than Deferral Amounts that are deemed, at the Participant’s election, to be invested in IR Stock shall be credited to the Participant’s Deferral Account on the date when the Deferral Amount would otherwise be paid to the Participant. All Deferral Amounts that are deemed, at the Participant’s election, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account as described in Section 6.4.
|
(a)
|
On the day a Deferral Amount is credited to a Participant’s Deferral Account, the Administrative Committee shall credit the Investment Option Subaccounts of the Participant's Deferral Account with an amount equal to the Participant’s Deferral Amount in accordance with the Participant's Election Form; that is, the portion of the Participant's Deferral Amount that the Participant has elected to be deemed to be invested in a certain type of investment option shall be credited to the Investment Option Subaccount corresponding to that investment option, and
|
(b)
|
Each business day, each Investment Option Subaccount of a Participant's Deferral Account shall be adjusted for earnings or losses in an amount equal to that determined by multiplying the balance credited to such Investment Option Subaccount as of the prior day plus contributions credited that day to the Investment Option Subaccount by the Return for the corresponding investment option.
|
6.2
|
Supplemental Contribution Accounts.
The Administrative Committee shall establish and maintain a separate Supplemental Contribution Account for each Plan Year for each Participant who receives a Supplemental Contribution for such Plan Year. All Supplemental Contributions shall be credited to the Participant’s Supplemental Contribution Account on the same date that the Participant’s Deferral Amount applicable to a Cash Incentive Compensation Award for which the Supplemental Contribution is being made is credited to the Participant’s Deferral Account pursuant to Section 6.1. All of a Participant’s Supplemental Contributions shall be deemed to be invested in, and shall remain deemed to be invested in, IR Stock in the Participant’s Supplemental Contribution Account until such amounts are distributed from the Plan.
|
6.3
|
Discretionary Company Contribution Accounts
. The Administrative Committee shall establish and maintain a separate Discretionary Company Contribution Account for each Plan Year for each Participant who receives a Discretionary Company Contribution for such Plan Year. All Discretionary Company Contributions, other than those that are deemed, at the Participant’s election or as directed by the Administrative Committee pursuant to the following paragraph, to be invested in IR Stock shall be credited to the Participant’s Discretionary Company Contribution Account on the date determined by the Administrative Committee in its sole and absolute discretion. All Discretionary Company Contributions that are deemed, at the Participant’s election or as directed by the Administrative Committee, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account as described in Section 6.4.
|
(a)
|
On the day a Discretionary Company Contribution is credited to a Participant’s Discretionary Company Contribution Account, the Administrative Committee shall credit the Investment Option Subaccounts of the Participant's Discretionary Company Contribution Account with an amount equal to the Participant’s Discretionary Company Contribution in
|
(b)
|
Each business day, each Investment Option Subaccount of a Participant's Discretionary Company Contribution Account shall be adjusted for earnings or losses in an amount equal to that determined by multiplying the balance credited to such Investment Option Subaccount as of the prior day plus contributions credited that day to the Investment Option Subaccount by the Return for the corresponding investment option.
|
6.4
|
IR Stock Accounts
. The Administrative Committee shall establish and maintain a separate IR Stock Account for each Plan Year for each Participant who (i) elects to have all or a portion of his of her Deferral Amounts and/or Discretionary Company Contributions for such Plan Year invested in IR Stock or, (ii) receives a Discretionary Company Contribution which is directed, pursuant to Section 6.3, by the Administrative Committee to be deemed to be invested in IR Stock. All Deferral Amounts that are deemed, at the Participant’s election, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account on the date when the Deferral Amount would otherwise be paid to the Participant. All Discretionary Company Contributions that are deemed, whether at the Participant’s election or as directed by the Administrative Committee, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account on the date determined by the Administrative Committee in its sole and absolute discretion. Notwithstanding anything to the contrary, IR Stock credited to a Participant’s IR Stock Account may not be designated by the Participant to be deemed to be invested in any other investment option and shall remain invested in IR Stock in such IR Stock Account until distributed from the Plan and no deferrals originally invested in another investment option may be reinvested in IR Stock. A Participant’s IR Stock Accounts shall be credited as follows:
|
(a)
|
On the day a Deferral Amount or Discretionary Company Contribution is credited to a Participant’s IR Stock Account, the Administrative Committee shall credit the IR Stock Account with an amount equal to the Participant’s Deferral Amount and/or Discretionary Company Contribution.
|
(b)
|
All Deferral Amounts and Discretionary Company Contributions deemed to be invested in IR Stock in accordance with the Participant’s Election Form
|
6.5
|
Changes in Capitalization
. If there is any change in the number or class of shares of IR Stock through the declaration of a stock dividend or other extraordinary dividends, or recapitalization resulting in stock splits, or combinations or exchanges of such shares or in the event of similar corporate transactions, the units in each Participant’s IR Stock Account and Supplemental Contribution Account shall be equitably adjusted to reflect any such change in the number or class of issued shares of IR Stock or to reflect such similar corporate transaction.
|
6.6
|
Accounts are Bookkeeping Entries
. Notwithstanding any other provision of the Plan that may be interpreted to the contrary, the investment options, including IR Stock, are to be used for measurement purposes only, and a Participant's election of any such investment option, the allocation to his or her Account Balances thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account Balances shall not be considered or construed in any manner as an actual investment of his or her Account Balances in any such investment option. In the event that the Company or the trustee of the Trust, in its own discretion, decides to invest funds in any or all of the investment options, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant's Account Balances shall at all times be a bookkeeping entry only and shall not represent any investment made on the Participant’s behalf by the Company or the Trust. The Participant shall at all times remain an unsecured creditor of the Company.
|
7.1
|
Termination with Five Years of Service, Retirement, Disability and Death
. A Participant who terminates employment after completing at least five (5) years of Service, reaches Retirement, incurs a Disability, or dies shall be paid his or her vested Account Balances (and after his or her death to his or her Beneficiary) in annual installments over ten (10) years beginning as soon as administratively practicable in the year following the Participant’s termination, Retirement, Disability or death unless an optional form of benefit payment is elected in accordance with the next sentence. For each Plan Year’s Account Balance the Participant may elect an optional form of benefit payment in the manner prescribed by the Administrative Committee, in its sole and absolute discretion, from among the following:
|
(1)
|
A lump sum distribution to be paid as soon as administratively practicable in the year following the Participant’s termination, Retirement, Disability or death;
|
(2)
|
Annual installments over five (5) years commencing as soon as administratively practicable in the year following the Participant’s termination, Retirement, Disability or death;
|
(3)
|
Annual installments over fifteen (15) years commencing as soon as administratively practicable in the year following the Participant’s termination, Retirement, Disability or death; and
|
(4)
|
A lump sum distribution which shall be paid as soon as administratively practicable in the year specified by the Participant on the Election Form. Such specified time shall be no less than one (1) year and no more than five (5) years following termination, Retirement, Disability or death.
|
7.2
|
Scheduled Distributions Prior to Termination of Employment
. A Participant may elect, on an Election Form, to receive a distribution of all or a portion of his or her Deferral Account, IR Stock Account and vested Discretionary Company Contribution Account with respect to a Plan Year(s) while still employed by the Company. A Participant’s election for a distribution under this Section shall be permitted only if the distribution date has been specified on an original Election Form timely filed by the Participant under Section 4.1, and such distribution date (in the event of a lump sum) or the date of commencement of such distribution (in the event of annual installments) is no earlier than two (2) years from the last day of the Plan Year for which the portion of the Deferral Account, IR Stock Account and vested Discretionary Company Contribution Account to be distributed was actually deferred. A Participant may elect, on an Election Form, to extend the date for any distribution under this Section with respect to any Plan Year, provided such election occurs at least one year before the date of distribution most recently elected for that Plan Year by the Participant and the extension is for a period of not less than two (2) years after the date of distribution most recently elected for that Plan Year by the Participant. The Participant shall have the right to extend the date for any distribution under this Section for a Plan Year twice.
|
7.3
|
Termination of Employment Prior to Completing Five (5) Years of Service
. If a Participant’s employment with the Company terminates prior to his or her completing five (5) years of Service, the vested portion of the Participant's Account Balances, if any, shall be distributed in a lump sum as soon as practicable in the year following the Participant's termination of employment. If a Participant’s employment with the Company terminates prior to his or her completing five (5) years of Service while receiving annual installments prior to termination of employment pursuant to Section 7.2, such annual installments shall continue to be paid to the Participant (and after his or her death to his or her Beneficiary) in the same manner as if the Participant had not terminated employment prior to completing five (5) years of Service. For purposes of this Section, Disability, death and Retirement shall be deemed not to be a termination of employment.
|
7.4
|
Transfer of Employment
. Notwithstanding any provision of Sections 7.1, 7.2 or 7.3 to the contrary, a Participant shall not be considered to have terminated employment during a Plan Year, if such Participant is continuously employed during that Plan Year by the Company, a Participating Employer, or any subsidiaries or affiliates of a Participating Employer, or any combination thereof.
|
7.5
|
Hardship Distribution
. In the event that the Administrative Committee, upon written petition of the Participant (or the Participant’s Beneficiary) on an Election Form filed with the Administrative Committee specifying the Plan Year(s), from which payment shall be made, determines in its sole and absolute discretion, that the Participant (or the Participant’s Beneficiary) has suffered an Unforeseeable Financial Emergency, the Company may pay to the Participant (or the Participant’s Beneficiary) in a lump sum from the Participant’s Deferral Account(s), IR Stock Account(s), vested portion of the Discretionary Contribution Account(s) and the vested portion of the Supplemental Contribution Account(s) with respect to the specified Plan Year(s), as soon as practicable following such determination, an amount appropriate under the circumstances. All distributions under this Section shall be made on a pro rata basis from the Participant's Deferral Account(s), IR Stock Account(s), vested Discretionary Company Contribution Account(s) and vested Supplementary Contribution Account(s), as applicable.
|
7.6
|
Early Distributions (with forfeiture)
. A Participant shall be permitted to elect, on an Election Form, to receive an Early Distribution in whole percentages of up to 100% of his or her Deferral Account(s), IR Stock Account(s) and vested Discretionary Company Contribution Account(s) with respect to a specified Plan Year(s), subject to the following restrictions:
|
(1)
|
10% of the amount elected by the Participant to be distributed as an Early Distribution shall be permanently forfeited and such forfeited amount shall be deducted from the amount to be distributed to the Participant.
|
(2)
|
If a Participant receives an Early Distribution, the Participant will be ineligible to participate in the Plan for the balance of the Plan Year in which the Early Distribution is received and for the following Plan Year. All Early Distributions shall be made on a pro rata basis from the Participant's Deferral Account(s), IR Stock Account(s) and vested Discretionary Company Contribution Account(s).
|
(3)
|
The Early Distribution shall be paid in a single lump sum as soon as administratively practicable after the Early Distribution election is made.
|
7.7
|
Form of Payments.
All amounts in a Participant’s Deferral Account and Discretionary Company Contribution Account and payable to a Participant or Beneficiary under the Plan shall be paid in cash. All amounts in a Participant’s Supplemental Contribution Account and IR Stock Account and payable to a Participant or Beneficiary under the Plan shall be paid in IR Stock; except that, with respect to any fractional share, such fractional share shall be paid in cash.
|
7.8
|
Taxes; Withholding
. To the extent required by law, the Company, or the trustee of the Trust, shall withhold from payments made hereunder an amount equal to at least the minimum taxes required to be withheld by the federal or any state or local government. The amount to be withheld and the manner in which amounts shall be withheld shall be determined in the sole discretion of the Company or the trustee of the Trust.
|
7.9
|
Distribution Provisions.
Effective January 1, 2004, to the extent an agreement between the Company and a Participant contains provisions governing the form and/or timing of a distribution of a Discretionary Company Contribution made on behalf of the Participant, the distribution provisions of such agreement shall apply. Except as provided in an agreement between the Company and the Participant, the form and/or timing of a Discretionary Company Contribution shall be determined by the Administrative Committee in its sole and absolute discretion.
|
9.1
|
Amendment.
The Plan may, at any time and from time to time, be amended without the consent of any Participant or Beneficiary, by (a) the Compensation Committee or the Board of Directors of Ingersoll-Rand plc, or (b) the Administrative Committee in the case of amendments which do not materially modify the provisions hereof; provided, however, that no amendment shall reduce any benefits accrued under the terms of the Plan as of the date of amendment.
|
a.
|
Company's Right to Terminate.
The Board of Directors of Ingersoll-Rand plc may terminate the Plan at any time and for any reason.
|
b.
|
Payments Upon Termination.
Upon any termination of the Plan under this Section, Base Salary, Cash Incentive Compensation Awards, Dividends on Stock Grants, Discretionary Company Contributions and Supplemental Contributions shall prospectively cease to be deferred and, with respect to all such amounts previously deferred, the Company shall pay to the
|
10.1
|
Unsecured General Creditor
. Benefits under the Plan shall be payable by the Company out of its general funds. The Company shall have the right to establish a reserve or make any investment for the purposes of satisfying its obligations hereunder for payment of benefits at its discretion, provided, however, that no Participant or Beneficiary shall have any interest in such investment or reserve. To the extent that any person acquires a right to receive benefits under the Plan, such rights shall be no greater than the right of any unsecured general creditor of the Company. No Participant shall have any rights or privileges of a stockholder of the Company or of a member of Ingersoll-Rand plc under the Plan, including as a result of the crediting of units to a Participant’s IR Stock Account or Supplemental Contribution Account, except at such time as distribution is actually made from the Participant’s IR Stock Account or Supplemental Contribution Account, as applicable.
|
10.2
|
Entire Agreement; Successors
. The Plan, including the Election Form and any subsequently adopted amendments to the Plan or Election Form, shall constitute the entire agreement or contract between the Company and any Participant regarding the Plan. There are no covenants, promises, agreements, conditions or understandings, either oral or written, between the Company and any Participant relating to the subject matter hereof, other than those set forth herein. The Plan and any amendment hereof shall be binding on the Company and the Participants and, their respective heirs, administrators, trustees, successors and assigns, including but not limited to, any successors of the Company by merger, consolidation or otherwise by operation of law, and on all designated Beneficiaries of the Employee.
|
10.3
|
Non-Assignability
. To the extent permitted by law, the right of any Participant or any Beneficiary in any benefit hereunder shall not be subject to attachment or any other legal process for the debts of such Participant or Beneficiary; nor shall any such benefit be subject to anticipation, alienation, sale, transfer, assignment or encumbrance.
|
10.4
|
No Contract of Employment.
The establishment of the Plan or any modification hereof shall not give any Participant or other person the right to remain in the service of the Company, a Participating Employer, or any subsidiaries or affiliates of a Participating Employer, and all Participants and other persons shall remain subject to discharge to the same extent as if the Plan had never been adopted.
|
10.5
|
Authorization and Source of Shares
. Shares of IR Stock necessary to meet the obligations of the Plan have been reserved and authorized pursuant to resolutions adopted by the Board of Directors of the Company on December 4, 1996, and additional shares of IR Stock shall be reserved and authorized for delivery under the Plan from time to time. These shares of IR Stock may be provided from newly-issued or treasury shares.
|
10.6
|
Singular and Plural
. As the context may require, the singular may be read as the plural and the plural as the singular.
|
10.7
|
Captions
. The captions to the articles, sections, and paragraphs of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.
|
10.8
|
Applicable Law
. Except as preempted by federal law, the Plan shall be governed and construed in accordance with the laws of the State of New Jersey.
|
10.9
|
Severability
. If any provisions of the Plan shall, to any extent, be invalid or unenforceable, the remainder of the Plan shall not be affected thereby, and each provision of the Plan shall be valid and enforceable to the fullest extent permitted by law.
|
10.10
|
Notice
. Any notice or filing required or permitted to be given to the Administrative Committee shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to the Company at 1
Centennial Avenue, Piscataway, NJ 08855, directed to the attention of the Senior Vice President, Human Resources. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. Any notice to the Participant shall be addressed to the Participant at the Participant’s residence address as maintained in the Company’s records. Any party may change the address for such party here set forth by giving notice of such change to the other parties pursuant to this Section.
|
1.
|
The specific reason(s) for the denial;
|
2.
|
Specific reference(s) to pertinent Plan provisions upon which the denial is based;
|
3.
|
A description of any additional material or information necessary for you to perfect the claim, and an explanation of why such material or information is necessary;
|
4.
|
A description of the Plan’s claims review procedure and the time limits applicable to such procedures, including a statement of your right to bring a civil action under
|
5.
|
If a claim based on disability was denied in reliance upon an internal rule, guideline, protocol or other similar criterion, the internal rule, guideline, protocol or other criteria will be described, or the notice will include a statement that a copy of such rule, guideline, protocol or other criteria will be provided free of charge upon request; and,
|
6.
|
A statement that you have the right to appeal the decision.
|
1.
|
Not afford deference to the initial adverse benefit determination,
|
2.
|
Provide for the identification of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the appeal, if applicable
|
3.
|
Be conducted by someone that did not take part in the adverse determination under appeal and is not a subordinate of someone who did.
|
1.
|
The specific reason or reasons for the denial;
|
2.
|
The specific Plan provision(s) on which the decision is based;
|
3.
|
A statement that the Employee is entitled to receive upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim for benefits;
|
4.
|
If a claim based on disability was denied in reliance upon an internal rule, guideline, protocol or other similar criterion, the internal rule guideline, protocol or other criteria will be described, or the notice will include a statement that a copy of such rule, guideline, protocol or other criteria will be provided free of charge upon request; and
|
5.
|
A statement that the Employee shall have a right to bring a civil action under Section 502(a) of ERISA following exhaustion of the Plans’ administrative processes.
|
2.1
|
“Account Balance”
means, for each Plan Year, a credit on the records of the Company equal to the sum of the value of a Participant’s Deferral Account, Supplemental Contribution Account, Discretionary Company Contribution Account and IR Stock Account for such Plan Year. The Account Balance shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and determination of the amounts to be paid to a Participant, or to the Participant’s designated Beneficiary, pursuant to the Plan.
|
2.2
|
“Administrative Committee”
shall mean the committee appointed by the Chief Executive Officer of the Company which will administer the Plan in accordance with the duties delegated to it by the Compensation Committee or as set forth herein.
|
2.3
|
“Base Salary”
means a Participant’s annual base salary, excluding bonuses, commissions, incentive compensation and all other remuneration for services rendered to the Company or a Participating Employer and prior to a reduction for any salary contributions to a plan established pursuant to Code Section 125 or qualified pursuant to Code Section 401(k).
|
2.4
|
“Beneficiary”
means the person or persons designated as such in accordance with Section 8.
|
2.5
|
“Beneficiary Designation Form”
means the form established from time to time by the Administrative Committee that a Participant completes and returns to the Administrative Committee to designate one or more Beneficiaries.
|
2.6
|
“Cash Incentive Compensation Award”
means any of the Participant’s annual cash incentive compensation awards.
|
2.7
|
“Change in Control”
means a “change in control of the Company” (as set forth in the Company’s Incentive Stock Plan of 2007), unless a different definition is used for purposes of any severance of employment agreement or change of control arrangement between the Company and a Participant, in which event such definition shall apply. Solely for purposes of this Section 2.7, the term “Company” shall mean Ingersoll-Rand plc.
|
2.8
|
“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the regulations and other administrative guidance issued thereunder.
|
2.9
|
“Compensation Committee”
means the Compensation Committee of the Board of Directors of Ingersoll-Rand plc.
|
2.10
|
“Deferral Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Deferral Amounts, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s Deferral Account, less (iii) all distributions made to the Participant or to the Participant’s Beneficiary pursuant to the Plan that relate to the Participant’s Deferral Account.
|
2.11
|
“Deferral Amount”
means the amount of a Participant’s Cash Incentive Compensation Award, Base Salary, Stock Based Awards, and (for periods prior to August 2, 2006) Dividends on Stock Grants actually deferred under the Plan by the Participant pursuant to Section 4 for any one Plan Year.
|
2.12
|
“Disability”
means, with respect to a Participant: (a) a condition under which the Participant: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months; or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company or a Participating Employer; or (b) any other condition under which the Participant is considered “disabled” within the meaning of Code Section 409A(a)(2)(C).
|
2.13
|
“Discretionary Company Contribution”
means an additional amount to be credited to a Participant's Discretionary Company Contribution Account for a Plan Year.
|
2.14
|
“Discretionary Company Contribution Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Discretionary Company Contributions, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s Discretionary Company Contribution Account, less (iii) all distributions made to the Participant or to the Participant’s Beneficiary pursuant to the Plan that relate to the Participant’s Discretionary Company Contribution Account.
|
2.15
|
“Dividends on Stock Grants”
means the dividends on deferred vested Stock Grants payable to a Participant pursuant to the Ingersoll-Rand Company Incentive Stock Plan of 1995 or the Ingersoll-Rand Company Incentive Stock Plan of 1998 or any successor plan thereto. Notwithstanding the foregoing, effective August 2, 2006, no additional Dividends on Stock Grants shall be credited under the Plan with respect to any Participant.
|
2.16
|
“Elected Officer”
means an officer of the Company elected to such position by the Board of Directors of the Company.
|
2.17
|
“Election Form”
means the form or forms established from time to time by the Administrative Committee that a Participant completes, signs and returns to the Administrative Committee or to the Plan’s recordkeeper to make an election under the Plan. An Election Form also includes any other method approved by the Administrative Committee, in its sole and absolute discretion, that a Participant may use to make an election under the Plan. The terms and conditions specified in the Election Form(s) are incorporated by reference herein and form a part of the Plan. If there is a conflict between the Election Form and the Plan, the terms of the Plan shall control and govern.
|
2.18
|
“Eligible Employee”
means an Elected Officer or an individual who is among a select group of management and highly compensated employees of the Company or a Participating Employer who has been selected by the Administrative Committee, in its sole and absolute discretion, to participate in the Plan.
|
2.19
|
“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.
|
2.20
|
“Investment Option Subaccounts”
means the separate subaccounts, each of which corresponds to an investment option elected by the Participant or, as provided in Section 6.3 regarding Discretionary Company Contributions, the Administrative Committee, with respect to a Participant’s Deferral Accounts and/or Discretionary Company Contribution Accounts, as applicable.
|
2.21
|
“IR Stock
” means the ordinary shares, par value $1.00 per share, of Ingersoll-Rand plc, an Irish company.
|
2.22
|
“IR Stock Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Deferral Amounts and Discretionary Company Contributions that are deemed to be invested in IR Stock, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s IR Stock Account, less (iii) all distributions made to the Participant or to the Participant’s Beneficiary pursuant to the Plan that relate to the Participant’s IR Stock Account.
|
2.23
|
“Participant”
means an Eligible Employee participating in the Plan in accordance with the provisions of Section 4.
|
2.24
|
“Participating Employer”
means any direct or indirect parent, subsidiary or affiliate of the Company that is aggregated with the Company for purposes of Code Section 409A.
|
2.25
|
“Plan Year”
means a calendar year.
|
2.26
|
“Retirement”
means, with respect to a Participant, Separation from Service after he or she has attained age 65 (62 for Elected Officers) or Separation from Service
|
2.27
|
“Return”
means, for each investment option, an amount equal to the net investment return (including changes in value and distributions) for each such investment option during each business day.
|
2.28
|
“
Separation from Service”
means a separation from service under the general rules under Code Section 409A.
|
2.29
|
“Service”
means periods of service with the Company or a Participating Employer as determined in accordance with Section 2.3 of the Ingersoll Rand Pension Plan Number One.
|
2.30
|
“Stock Based Awards”
means awards, in lieu of any incentive or variable compensation to which a Participant is entitled from the Company or its subsidiaries or ERISA affiliates, of (i) common shares of Ingersoll-Rand plc, or (ii) restricted ordinary shares of Ingersoll-Rand plc, or (iii) awards that are valued in whole, or in part, by reference to, or otherwise based on the fair market value of ordinary shares of Ingersoll-Rand plc.
|
2.31
|
“Stock Grant”
means a grant of IR Stock made to a Participant under the Company’s stock grant plan, which was frozen in February of 2000.
|
2.32
|
“Supplemental Contribution”
means an additional amount to be credited to a Participant’s Supplemental Contribution Account equal to twenty percent (20%) of the Participant’s Cash Incentive Compensation Award that is deferred under Section 6.1 of the Plan for a Plan Year by the Participant and is, at the time of making the deferral election, elected to be invested in the Participant’s IR Stock Account. Supplemental Contributions shall be available and credited only to Participants whose job category indicates specified ownership guidelines as determined by the Compensation Committee in its sole and absolute discretion. Notwithstanding the foregoing, effective August 2, 2006, no additional Supplemental Contributions shall be credited under the Plan with respect to any Participant.
|
2.33
|
“Supplemental Contribution Account”
means, for each Plan Year, (i) the sum of all of a Participant’s Supplemental Contributions, plus (ii) amounts credited in accordance with all the applicable crediting provisions of the Plan that relate to the Participant’s Supplemental Contribution Account, less (iii) all distributions made to the Participant or to the Participant’s Beneficiary pursuant to the Plan that relate to the Participant’s Supplemental Contribution Account.
|
2.34
|
“Trust”
means the Ingersoll-Rand Company Deferred Compensation Trust Agreement, dated as of January 1, 2001 between the Company and the trustee named therein, as amended from time to time.
|
2.35
|
“Unforeseeable Financial Emergency”
means: (a) a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant; or (b) such other definition of “unforeseeable emergency” within the meaning of Code Section 409A(a)(2)(B)(ii).
|
4.1
|
Participation and Deferral Election
. Any Eligible Employee may elect to participate in the Plan for a given Plan Year by filing a completed Election Form for the Plan Year in the manner prescribed by the Administrative Committee. The Election Form must specify the percentage or dollar amount of any Deferral Amount otherwise payable for or during such Plan Year that will be deferred under the Plan.
|
(a)
|
In the case of a new Participant who is described in Code Section 409A(a)(4)(B)(ii), the 30th day after such new Participant first becomes eligible to participate in the Plan (provided that such election shall relate only to compensation for services performed subsequent to the date such Election Form is filed);
|
(b)
|
In the case of any compensation award that constitutes performance-based compensation for purposes of Code Section 409A; the June 30 immediately preceding the Plan Year in which such award would otherwise be paid, provided that, the performance period for such performance-based compensation shall end on or after December 31 of said Plan Year or such earlier date established by the Administrative Committee; if, by reason of events occurring after the Participant’s Deferral Election, compensation ceases to be performance-based compensation for purposes of section 409A, any deferral election made under this paragraph (and not timely made under any other provision of this Section 4.1) shall be considered untimely and given no force or effect;
|
(c)
|
In the case of any compensatory award that, at the time the Participant obtains a legally binding right to the award, is subject to a substantial risk of forfeiture (within the meaning of Code Section 409A) for a period of at least 13 months, the 30th day after the Participant obtains a legally binding right to such award or such earlier date established by the Administrative Committee.
|
(d)
|
Notwithstanding the terms of any other agreement or arrangement to which an Employee may be party, except to the extent it is determined not to be required or permitted under Section 409A, an Employee’s timely filed Deferral Election shall apply to (i) any compensation that becomes payable under such other agreement or arrangement as a substitute for any Cash-Incentive Compensation Award, Stock Based Award, or other Deferral Amount that the Employee has elected to defer in such Deferral Election, and (ii) any Cash-Incentive Compensation Award, Stock Based Award, or other Deferral Amount that becomes payable (but for such Deferral Election) by reason of such other agreement or arrangement at a date earlier or later than originally scheduled.
|
4.2
|
Investment Election
. In accordance with procedures established by the Administrative Committee in its sole and absolute discretion, prior to the time a Participant’s Deferral Amounts are credited to a Participant’s Deferral Account pursuant to Section 6.1, the Participant shall designate, on an Election Form, the types of investment options in which the Participant’s Deferral Amounts will be deemed to be invested for purposes of determining the amount of earnings to be credited to the Participant’s Deferral Account and, with respect to Deferral Amounts that are designated by the Participant to be deemed to be invested in IR Stock, the IR Stock Account.
|
4.3
|
Duration of Elections.
Notwithstanding anything to the contrary: (a) any election under Section 4.1 (including a failure to make an election) shall remain in effect from Plan Year to Plan Year unless a written request to modify or terminate that election for a subsequent Plan Year is submitted to the Administrative Committee in accordance with Section 4.1; and (b) any election under Section 4.2 (including a failure to make an election) shall remain in effect from Plan Year to Plan Year unless a written request to modify or terminate that election is submitted to the Administrative Committee, which request shall be effective as to any Deferral Amount credited to the Participant’s Deferral Account 30 or more days after such written request is submitted to the Administrative Committee; provided that nothing in this Section 4.3(b) shall permit a Participant to make such a written request as to the deemed investment of Stock Based Awards.
|
5.1.
|
Deferral Amounts
. A Participant shall be fully vested in his or her Deferral Account.
|
5.2.
|
Supplemental Contributions
. A Participant shall vest in his or her Supplemental Contribution Account on the earliest of: (i) the fifth anniversary of the date the Supplemental Contribution is credited to the Participant's Supplemental Contribution Account; (ii) the date of the Participant's Retirement; (iii) the Participant’s Disability; (iv) the Participant's death; (v) a Change in Control; or (vi) a termination of the Plan pursuant to Section 9.2. Notwithstanding the foregoing, effective August 2, 2006, a Participant shall be fully vested in his or her Supplemental Contribution Account.
|
5.3.
|
Discretionary Contributions.
A Participant shall vest in his or her Discretionary Company Contribution Account on the earliest of: (i) the date determined by the Administrative Committee; (ii) the date of the Participant’s Disability; (iii) the date of the Participant’s death; (iv) a Change in Control; or (v) a termination of the Plan pursuant to Section 9.2. Notwithstanding the above, to the extent an agreement between the Company and the Participant contains provisions governing vesting with regards to a Discretionary Company Contribution made on behalf of the Participant, the terms of such agreement shall apply.
|
6.1
|
Deferral Accounts
. The Administrative Committee shall establish and maintain a separate Deferral Account for each Participant for each Plan Year. All Deferral Amounts, other than Stock Based Awards and Deferral Amounts that are deemed, at the Participant’s election, to be invested in IR Stock shall be credited to the Participant’s Deferral Account on the date when the Deferral Amount would otherwise be paid to the Participant. All Stock Based Awards and Deferral Amounts that are deemed, at the Participant’s election, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account as described in Section 6.4.
|
(a)
|
On the day a Deferral Amount is credited to a Participant’s Deferral Account, the Administrative Committee shall credit the Investment Option Subaccounts of the Participant's Deferral Account with an amount equal to the Participant’s Deferral Amount in accordance with the Participant's Election Form; that is, the portion of the Participant's Deferral Amount
|
(b)
|
Each business day, each Investment Option Subaccount of a Participant's Deferral Account shall be adjusted for earnings or losses in an amount equal to that determined by multiplying the balance credited to such Investment Option Subaccount as of the prior day plus contributions credited that day to the Investment Option Subaccount by the Return for the corresponding investment option.
|
6.2
|
Supplemental Contribution Accounts.
The Administrative Committee shall establish and maintain a separate Supplemental Contribution Account for each Plan Year for each Participant who receives a Supplemental Contribution for such Plan Year. All Supplemental Contributions shall be credited to the Participant’s Supplemental Contribution Account on the same date that the Participant’s Deferral Amount applicable to a Cash Incentive Compensation Award for which the Supplemental Contribution is being made is credited to the Participant’s Deferral Account pursuant to Section 6.1. Effective August 2, 2006, no further Supplemental Contributions shall be credited to a Participant’s Supplemental Contribution Account. All of a Participant’s Supplemental Contributions shall be deemed to be invested in, and shall remain deemed to be invested in, IR Stock in the Participant’s Supplemental Contribution Account until such amounts are distributed from the Plan.
|
6.3
|
Discretionary Company Contribution Accounts
. The Administrative Committee shall establish and maintain a separate Discretionary Company Contribution Account for each Plan Year for each Participant who receives a Discretionary Company Contribution for such Plan Year. All Discretionary Company Contributions, other than those that are deemed, at the Participant’s election or as directed by the Administrative Committee pursuant to the following paragraph, to be invested in IR Stock shall be credited to the Participant’s Discretionary Company Contribution Account on the date determined by the Administrative Committee in its sole and absolute discretion. All Discretionary Company Contributions that are deemed, at the Participant’s election or as directed by the Administrative Committee, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account as described in Section 6.4.
|
(a)
|
On the day a Discretionary Company Contribution is credited to a Participant’s Discretionary Company Contribution Account, the Administrative Committee shall credit the Investment Option Subaccounts of the Participant's Discretionary Company Contribution Account with an amount equal to the Participant’s Discretionary Company Contribution in accordance with the Participant's Election Form or as directed by the Administrative Committee; that is, the portion of the Participant's Discretionary Company Contribution that the Participant has elected, or that the Administrative Committee has directed, to be deemed to be invested in a certain type of investment option shall be credited to the Investment Option Subaccount corresponding to that investment option.
|
(b)
|
Each business day, each Investment Option Subaccount of a Participant's Discretionary Company Contribution Account shall be adjusted for earnings or losses in an amount equal to that determined by multiplying the balance credited to such Investment Option Subaccount as of the prior day plus contributions credited that day to the Investment Option Subaccount by the Return for the corresponding investment option.
|
6.4
|
IR Stock Accounts
. The Administrative Committee shall establish and maintain a separate IR Stock Account for each Plan Year for each Participant who (i) elects to have all or a portion of his of her Deferral Amounts and/or Discretionary Company Contributions for such Plan Year invested in IR Stock, (ii) elects to defer Stock Based Awards pursuant to Section 4.1, or (iii) receives a Discretionary Company Contribution which is directed, pursuant to Section 6.3, by the Administrative Committee to be deemed to be invested in IR Stock. All Deferral Amounts that are deemed, at the Participant’s election, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account on the date when the Deferral Amount would otherwise be paid to the Participant. All Stock Based Awards shall be credited to a Participant’s IR Stock Account at the time such Stock Based Awards become vested. All Discretionary Company Contributions that are deemed, whether at the Participant’s election or as directed by the Administrative Committee, to be invested in IR Stock shall be credited to the Participant’s IR Stock Account on the date determined by the Administrative Committee in its sole and absolute discretion. Notwithstanding anything to the contrary, IR Stock credited to a Participant’s IR Stock Account may not be designated by the Participant to be deemed to be invested in any other investment option and shall remain invested in IR Stock in such IR Stock Account until distributed from the Plan and no deferrals originally invested in another invested option may be reinvested in IR Stock. A Participant’s IR Stock Accounts shall be credited as follows:
|
(a)
|
On the day a Deferral Amount or Discretionary Company Contribution is credited to a Participant’s IR Stock Account, the Administrative Committee shall credit the IR Stock Account with an amount equal to the Participant’s Deferral Amount and/or Discretionary Company Contribution.
|
(b)
|
All Deferral Amounts and Discretionary Company Contributions deemed to be invested in IR Stock in accordance with the Participant’s Election Form or, with respect to Discretionary Company Contributions as directed by the Administrative Committee, shall be credited to a Participant's IR Stock Account in units or fractional units. The value of each unit shall be determined each business day and shall equal the closing price of one share of IR Stock on the New York Stock Exchange-Composite Tape. On each date that Deferral Amounts and/or Discretionary Company Contributions are credited to the Participant's IR Stock Account, the number of units to be credited shall be determined by dividing the amount of such Deferral Amounts and/or Discretionary Company Contributions by the value of a unit on such date.
|
6.5
|
Changes in Capitalization
. If there is any change in the number or class of shares of IR Stock through the declaration of a stock dividend or other extraordinary dividends, or recapitalization resulting in stock splits, or combinations or exchanges of such shares or in the event of similar corporate transactions, the units in each Participant’s IR Stock Account and Supplemental Contribution Account shall be equitably adjusted to reflect any such change in the number or class of issued shares of IR Stock or to reflect such similar corporate transaction.
|
6.6
|
Accounts are Bookkeeping Entries
. Notwithstanding any other provision of the Plan that may be interpreted to the contrary, the investment options, including IR Stock, are to be used for measurement purposes only, and a Participant's election of any such investment option, the allocation to his or her Account Balances thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a Participant's Account Balances shall not be considered or construed in any manner as an actual investment of his or her Account Balances in any such investment option. In the event that the Company or the trustee of the Trust, in its own discretion, decides to invest funds in any or all of the investment options, no Participant shall have any rights in or to such investments themselves. Without limiting the foregoing, a Participant's Account Balances shall at all times be a bookkeeping entry only and shall not represent any investment made on the Participant’s behalf by the Company or the Trust. The Participant shall at all times remain an unsecured creditor of the Company.
|
7.1
|
Separation from Service with Five Years of Service, Retirement, Disability and Death
. Except as otherwise provided in this Section 7, a Participant who has a Separation from Service after completing at least five (5) years of Service, has a Retirement, incurs a Disability, or dies shall be paid his or her vested Account Balances (and after his or her death to his or her Beneficiary) in a lump sum in the Plan Year following the Participant’s Separation from Service, Retirement, Disability or death, unless an optional time or form of benefit payment has been elected by the Participant in accordance with the next sentence. At the time a Participant files an initial Election Form in accordance with Section 4.1 to defer a specified portion of the Participant’s Base Salary or of any Cash Incentive
|
(1)
|
Annual installments over five (5) years commencing in the Plan Year following the Participant’s Separation from Service, Retirement, Disability or death;
|
(2)
|
Annual installments over ten (10) years commencing in the Plan Year following the Participant’s Separation from Service, Retirement, Disability or death;
|
(3)
|
Annual installments over fifteen (15) years commencing in the Plan Year following the Participant’s Separation from Service, Retirement, Disability or death; and
|
(4)
|
A lump sum distribution payable in the Plan Year specified by the Participant on such Election Form; provided, however, that such specified date shall be no less than one (1) year and no more than five (5) years following the Participant’s Separation from Service, Retirement, Disability or death.
|
7.2
|
Scheduled Distributions Prior to Separation from Service
. For each Plan Year’s Account Balance, a Participant may elect, on an initial Election Form filed in accordance with Section 4.1 by the time specified in Section 7.11, to receive a distribution of all or a portion of his or her Deferral Account, IR Stock Account, vested Discretionary Company Contribution Account and vested Supplemental Contribution Account with respect to a Plan Year(s) while still employed by the Company. A Participant’s election for a distribution under this Section 7.2 shall be permitted only if the date specified on the Election Form by the Participant for such distribution (in the event of a lump sum) or the commencement of such distribution (in the event of annual installments) is no earlier than two (2) years from the last day of the Plan Year for which the portion of the Deferral Account, IR Stock Account, vested Discretionary Company Contribution Account, and vested Supplemental Contribution Account to be distributed is actually deferred. At the time an election for a distribution under this Section is made, the Participant shall also elect, on the Election Form, the form of payment of the distribution. The Participant shall elect either (i) a lump sum payment to be paid in the Plan Year specified by the Participant on the Election Form or (ii) annual installments over two (2), three (3), four (4) or five (5) years beginning in the Plan Year specified by the Participant on the Election Form.
|
7.3
|
Separation from Service Prior to Completing Five (5) Years of Service
. Except as otherwise provided in Section 7.5, if a Participant has a Separation from Service other than by reason of Retirement, Disability or death prior to his or her completing five (5) years of Service, the vested portion of the Participant’s Account Balances, if any, shall be distributed in a lump sum in the Plan Year following the Participant's Separation from Service. If a Participant has a Separation from Service other than by reason of Retirement, Disability or death prior to his or her completing five (5) years of Service while receiving annual installments pursuant to Section 7.2, such annual installments shall continue to be paid to the Participant (and after his or her death to his or her Beneficiary) in the same manner as if the Participant had not Separated from Service prior to completing five (5) years of Service.
|
7.4
|
Unforeseeable Financial Emergency Distribution
. In the event that the Administrative Committee, upon written petition of the Participant on an Election Form filed with the Administrative Committee specifying the Plan Year(s) with respect to which payment shall be made, determines in its sole and absolute discretion, that the Participant has suffered an Unforeseeable Financial Emergency, the Company shall pay to the Participant (or the Participant’s Beneficiary) in a lump sum from the Participant’s Deferral Account(s), IR Stock Account(s), vested portion of the Discretionary Company Contribution Account(s) and the vested portion of the Supplemental Contribution Account(s) with respect to the specified Plan Year(s), as soon as practicable following such determination, the amount necessary to satisfy such Unforeseeable Financial Emergency plus the amount necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which the Unforeseeable Financial Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).
|
7.5
|
Required Delay in Distributions
. Notwithstanding any other provision of this Plan to the contrary, no distribution shall be made to a Participant who is a
|
7.6
|
Prohibition of Accelerations.
Except to the extent that the Company is permitted under Code Section 409A(a)(3) to exercise discretion to accelerate distributions under the Plan, the time or schedule of any distribution hereunder shall not be accelerated.
|
7.7
|
Medium of Payments.
All amounts in a Participant’s Deferral Account and Discretionary Company Contribution Account and payable to a Participant or Beneficiary under the Plan shall be paid in cash. All amounts in a Participant’s Supplemental Contribution Account and IR Stock Account and payable to a Participant or Beneficiary under the Plan shall be paid in IR Stock.
|
7.8
|
Taxes; Withholding
. To the extent required by law, the Company, or the trustee of the Trust, shall withhold from payments made hereunder an amount equal to at least the minimum taxes required to be withheld by the federal or any state or local government. The amount to be withheld and the manner in which amounts shall be withheld shall be determined in the sole discretion of the Company or the trustee of the Trust.
|
7.9
|
Distribution Provisions.
To the extent an agreement between the Company and a Participant contains provisions governing the form and/or timing of a distribution of a Discretionary Company Contribution made on behalf of the Participant, the distribution provisions of such agreement shall apply to the extent such provisions are not inconsistent with the requirements of Code Section 409A.
|
7.10
|
Treatment of Installments; Date of Distribution
. For purposes of Code Section 409A, any series of installment payments payable to or with respect to a single Participant shall be treated as a single payment under the Plan. Any distribution due under the Plan shall be made by the last day of the Plan Year in which such distribution, disregarding this sentence, is due under the Plan (determined after the application of Section 7.5) or such other date as may be permitted or required under Code Section 409A.
|
7.11
|
Timing of Initial Election Forms.
Any election made on an initial Election Form (but not a subsequent Election Form) referenced in Section 7.1 or 7.2 that applies to a Deferral Amount or a Discretionary Company Contribution shall be irrevocable (except to the extent such election is subject to a subsequent election under Section 7.1 or 7.2 as permitted by Code Section 409A(a)(4)(C)) and must be made no later than the election deadline that applies under Section 4.1 to such Deferral Amount or, in the case of a Discretionary Company Contribution, December 31 of the Plan Year preceding the Plan Year in which the Participant performs the services to which such Discretionary Company Contribution relates.
|
7.12
|
Distribution of Certain Multi-Year Compensation.
Notwithstanding the prior provisions of this Section 7, in the case of any compensation that (absent the Participant’s Deferral Election) would have been paid in a Plan Year that was specified by the Company at the time of the Participant’s Deferral Election, the Deferral Amount shall be paid (or commence to be paid) no earlier than such Plan Year. For example, if the Company awards performance-based compensation payable in the Plan Year following a three-year performance cycle, and a Participant has made a timely election to defer such compensation until the Plan Year following Separation from Service, such compensation shall be distributed in the later of the Plan Year following Separation from Service or the Plan Year following the three-year performance cycle. The Participant’s Deferral Election shall be deemed to incorporate the requirement of this Section 7.12, whether or not it expressly so provides.
|
9.1
|
Amendment.
The Plan may, at any time and from time to time, be amended without the consent of any Participant or Beneficiary, by (a) the Compensation Committee or the Board of Directors of Ingersoll-Rand plc or (b) the Administrative Committee in the case of amendments which do not materially modify the provisions hereof; provided, however, that no amendment shall reduce any benefits accrued under the terms of the Plan as of the date of amendment.
|
a.
|
Company's Right to Terminate.
The Board of Directors of Ingersoll-Rand plc may terminate the Plan at any time and for any reason.
|
b.
|
Payments Upon Termination.
As and to the extent permitted under Code Section 409A, all amounts deferred under the Plan with respect to a Participant shall be paid to the Participant, in a lump sum, upon the Company’s termination and liquidation of the Plan, provided that: (1) the termination and liquidation do not occur proximate to a downturn in the financial health of the Company; (2) the Company terminates and liquidates all agreements, methods, programs, and other arrangements sponsored by the Company that would be aggregated with the Plan and any other terminated and liquidated agreements, methods, programs, and other arrangements under Code Section 409A if the Participant had deferrals of compensation under all the agreements, methods, programs, and other arrangements that are terminated and liquidated; (3) no payments in liquidation of the Plan are made within 12 months of the date the Company takes all necessary action irrevocably to terminate and liquidate the Plan other than payments that would be payable under the terms of the Plan if the action to terminate and liquidate the Plan had not occurred; (4) all payments are made within 24 months of the date the Company takes all necessary action irrevocably to terminate and liquidate the Plan; and (5) the Company does not adopt a new plan that would be aggregated with the Plan or any other terminated and liquidated plan under Code Section 409A if the Participant participated in both plans, at any time within three years following the date the Company takes all necessary action irrevocably to terminate and liquidate the Plan.
|
10.1
|
Unsecured General Creditor
. Benefits under the Plan shall be payable by the Company out of its general funds. The Company shall have the right to establish a reserve or make any investment for the purposes of satisfying its obligations hereunder for payment of benefits at its discretion, provided, however, that no Participant or Beneficiary shall have any interest in such investment or reserve. To the extent that any person acquires a right to receive benefits under the Plan, such rights shall be no greater than the right of any unsecured general creditor of the Company. No Participant shall have any rights or privileges of a stockholder of the Company or of a member of Ingersoll-Rand plc under the Plan, including as a result of the crediting of units to a Participant’s IR Stock Account or Supplemental Contribution Account, except at such time as distribution is actually made from the Participant’s IR Stock Account or Supplemental Contribution Account, as applicable.
|
10.2
|
Entire Agreement; Successors
. The Plan, including the Election Form and any subsequently adopted amendments to the Plan or Election Form, shall constitute the entire agreement or contract between the Company and any Participant regarding the Plan. There are no covenants, promises, agreements, conditions or understandings, either oral or written, between the Company and any Participant relating to the subject matter hereof, other than those set forth herein. The Plan and any amendment hereof shall be binding on the Company and the Participants and, their respective heirs, administrators, trustees, successors and assigns, including but not limited to, any successors of the Company by merger, consolidation or otherwise by operation of law, and on all designated Beneficiaries of the Employee.
|
10.3
|
Non-Assignability
. To the extent permitted by law, the right of any Participant or any Beneficiary in any benefit hereunder shall not be subject to attachment, garnishment or any other legal process for the debts of such Participant or Beneficiary; nor shall any such benefit be subject to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance.
|
10.4
|
No Contract of Employment.
The establishment of the Plan or any modification hereof shall not give any Participant or other person the right to remain in the service of the Company, a Participating Employer, or any subsidiaries or affiliates of a Participating Employer, and all Participants and other persons shall remain subject to discharge to the same extent as if the Plan had never been adopted.
|
10.5
|
Authorization and Source of Shares
. Shares of IR Stock necessary to meet the obligations of the Plan have been reserved and authorized pursuant to resolutions adopted by the Board of Directors of the Company on December 4, 1996, and additional shares of IR Stock shall be reserved and authorized for delivery under
|
10.6
|
Singular and Plural
. As the context may require, the singular may be read as the plural and the plural as the singular.
|
10.7
|
Captions
. The captions to the articles, sections, and paragraphs of the Plan are for convenience only and shall not control or affect the meaning or construction of any of its provisions.
|
10.8
|
Applicable Law
. Except as preempted by federal law, the Plan shall be governed and construed in accordance with the laws of the State of New Jersey.
|
10.9
|
Severability
. If any provisions of the Plan shall, to any extent, be invalid or unenforceable, the remainder of the Plan shall not be affected thereby, and each provision of the Plan shall be valid and enforceable to the fullest extent permitted by law.
|
10.10
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Notice
. Any notice or filing required or permitted to be given to the Administrative Committee shall be sufficient if in writing and hand delivered, or sent by registered or certified mail, to the Company at 1 Centennial Avenue, Piscataway, NJ 08855, directed to the attention of the Senior Vice President, Human Resources. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. Any notice to the Participant shall be addressed to the Participant at the Participant’s residence address as maintained in the Company’s records. Any party may change the address for such party here set forth by giving notice of such change to the other parties pursuant to this Section.
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1.
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The specific reason(s) for the denial;
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2.
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Specific reference(s) to pertinent Plan provisions upon which the denial is based;
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3.
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A description of any additional material or information necessary for you to perfect the claim, and an explanation of why such material or information is necessary;
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4.
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A description of the Plan’s claims review procedure and the time limits applicable to such procedures, including a statement of your right to bring a civil action under Section 502(a) of ERISA following a the exhaustion of the Plans’ administrative process;
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5.
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If a claim based on disability was denied in reliance upon an internal rule, guideline, protocol or other similar criterion, the internal rule, guideline, protocol or other criteria will be described, or the notice will include a statement that a copy of such rule, guideline, protocol or other criteria will be provided free of charge upon request; and,
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6.
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A statement that you have the right to appeal the decision.
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1.
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Not afford deference to the initial adverse benefit determination,
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2.
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Provide for the identification of medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the appeal, if applicable
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3.
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Be conducted by someone that did not take part in the adverse determination under appeal and is not a subordinate of someone who did.
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1.
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The specific reason or reasons for the denial;
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2.
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The specific Plan provision(s) on which the decision is based;
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3.
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A statement that the Employee is entitled to receive upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim for benefits;
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4.
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If a claim based on disability was denied in reliance upon an internal rule, guideline, protocol or other similar criterion, the internal rule guideline, protocol or other criteria will be described, or the notice will include a statement that a copy of such rule, guideline, protocol or other criteria will be provided free of charge upon request; and
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5.
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A statement that the Employee shall have a right to bring a civil action under Section 502(a) of ERISA following exhaustion of the Plans’ administrative processes.
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1.
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I have reviewed the Quarterly Report on Form 10-Q of Ingersoll-Rand plc for the three and
six
months ended
June 30, 2017
;
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2.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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 an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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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):
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a.
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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
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b.
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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.
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Date:
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July 26, 2017
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/s/ M
ICHAEL
W. L
AMACH
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Michael W. Lamach
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Principal Executive Officer
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1.
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I have reviewed the Quarterly Report on Form 10-Q of Ingersoll-Rand plc for the three and
six
months ended
June 30, 2017
;
|
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;
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3.
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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;
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4.
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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.
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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.
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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
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d.
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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 an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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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
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b.
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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.
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Date:
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July 26, 2017
|
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/s/ S
USAN
K. C
ARTER
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Susan K. Carter
|
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Principal Financial Officer
|
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/s/ M
ICHAEL
W. L
AMACH
|
Michael W. Lamach
|
Principal Executive Officer
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July 26, 2017
|
|
/s/ S
USAN
K. C
ARTER
|
Susan K. Carter
|
Principal Financial Officer
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July 26, 2017
|