Guarantor Financial Information

6 Months Ended

Jun. 30, 2011

Guarantor Financial Information Abstract

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Guarantor Financial Information

Ingersoll-Rand plc, an Irish public limited company (IR-Ireland), is the successor to Ingersoll-Rand Company Limited, a Bermuda company (IR-Limited), following a corporate reorganization that became effective on July 1, 2009 (the Ireland Reorganization). IR-Limited is the successor to Ingersoll-Rand Company, a New Jersey corporation (IR-New Jersey), following a corporate reorganization that occurred on December 31, 2001 (the Bermuda Reorganization). Both the Ireland Reorganization and the Bermuda Reorganization were accounted for as a reorganization of entities under common control and accordingly, did not result in any changes to the consolidated amounts of assets, liabilities and equity.

As a part of the Bermuda Reorganization, IR-Limited issued non-voting, Class B common shares to IR-New Jersey and certain IR-New Jersey subsidiaries in exchange for a $3.6 billion note and shares of certain IR-New Jersey subsidiaries. The note, which is due in 2011, has a fixed rate of interest of 11% per annum payable semi-annually and imposes certain restrictive covenants upon IR-New Jersey. At June 30, 2011, $1.0 billion of the original $3.6 billion note remains outstanding. In 2002, IR-Limited contributed the note to a wholly-owned subsidiary, which subsequently transferred portions of the note to several other subsidiaries, all of which are included in the Other Subsidiaries column below. Accordingly, the subsidiaries of IR-Limited remain creditors of IR-New Jersey.

In addition, as part of the Bermuda Reorganization, IR-Limited fully and unconditionally guaranteed all of the issued public debt securities of IR-New Jersey. IR-New Jersey unconditionally guaranteed payment of the principal, premium, if any, and interest on IR-Limited’s 4.75% Senior Notes due in 2015 in the aggregate principal amount of $300.0 million. The guarantee is unsecured and provided on an unsubordinated basis. The guarantee ranks equally in right of payment with all of the existing and future unsecured and unsubordinated debt of IR-New Jersey.

As part of the Ireland Reorganization, the guarantor financial statements were revised to present IR-Ireland as the ultimate parent company and Ingersoll-Rand International Holding Limited (IR-International) as a stand-alone subsidiary. In addition, the guarantee structure was updated to reflect the newly created legal structure under which (i) IR-International assumed the obligations of IR-Limited as issuer or guarantor, as the case may be, and (ii) IR-Ireland and IR-Limited fully and unconditionally guaranteed the obligations under the various indentures covering the currently outstanding public debt of Ingersoll-Rand plc and its subsidiaries. Neither IR-Ireland nor IR-Limited has issued or intends to issue guarantees in respect of any public indebtedness incurred by Trane. Also as part of the Ireland Reorganization, IR-Limited transferred all the shares of IR-Global to IR-International in exchange for a note payable that initially approximated $15.0 billion, which was then immediately reduced by the settlement of net intercompany payables of $4.1 billion. At June 30, 2011, $10.8 billion remains outstanding.

The Company has also revised the guarantor financial statements for all periods presented following the discovery of errors related to certain intercompany balances in the third quarter of 2010. Total consolidated results were not impacted by these errors; however, certain amounts reported within the IR-New Jersey and Other Subsidiaries columns have been corrected. The Company determined that these errors were immaterial to the Company’s current and previously-issued financial statements. All periods have been revised in the current presentation.

In addition, the Other Subsidiaries column has been revised to include the effect of certain intercompany eliminations that had previously been reflected within the Consolidating Adjustments column. The Company determined that these revisions were immaterial to its current and previously-issued financial statements. All periods have been revised in the current presentation.

The condensed consolidating financial statements present the investments of IR-Ireland, IR-Limited, IR-Global, IR-International and IR-New Jersey and their subsidiaries using the equity method of accounting. Intercompany investments in the non-voting Class B common shares are accounted for on the cost method and are reduced by intercompany dividends. In accordance with generally accepted accounting principles, the amounts related to the issuance of the Class B shares have been recorded as a reduction of Total equity. The notes payable continue to be reflected as liabilities on the balance sheets of IR-New Jersey and IR-International and are enforceable in accordance with their terms.

The following condensed consolidated financial information for IR-Ireland, IR-Limited, IR-Global, IR-International, and IR-New Jersey, and all their other subsidiaries is included so that separate financial statements of IR-Ireland, IR-Limited, IR-Global, IR-International and IR-New Jersey are not required to be filed with the U.S. Securities and Exchange Commission.

Condensed Consolidating Income Statement

For the three months ended June 30, 2011

In millions	IR Ireland			IR Limited		IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			Consolidating Adjustments			IR Ireland Consolidated
Net revenues	$	—		$	—	$	—		$	—		$	219.6		$	3,672.6		$	—		$	3,892.2
Cost of goods sold	—			—		—			—			(137.6		)	(2,570.8		)	—			(2,708.4		)
Selling and administrative expenses	(2.9		)	0.2		—			(0.2		)	(67.7		)	(637.7		)	—			(708.3		)
Operating income (loss)	(2.9		)	0.2		—			(0.2		)	14.3			464.1			—			475.5
Equity earnings in affiliates, net of tax	94.6			154.6		312.3			287.9			53.7			303.3			(1,206.4		)	—
Interest expense	—			—		(3.9		)	(48.3		)	(12.7		)	(6.7		)	—			(71.6		)
Intercompany interest and fees	(0.1		)	—		(30.9		)	13.3			(32.1		)	49.8			—			—
Other, net	0.4			—		0.4			60.1			1.1			10.4			(67.9		)	4.5
Earnings (loss) before income taxes	92.0			154.8		277.9			312.8			24.3			820.9			(1,274.3		)	408.4
Benefit (provision) for income taxes	0.3			—		—			—			8.7			(102.9		)	—			(93.9		)
Continuing operations	92.3			154.8		277.9			312.8			33.0			718.0			(1,274.3		)	314.5
Discontinued operations, net of tax	—			—		—			—			(10.1		)	(205.1		)	—			(215.2		)
Net earnings (loss)	92.3			154.8		277.9			312.8			22.9			512.9			(1,274.3		)	99.3
Less: Net earnings attributable to noncontrolling interests	—			—		—			—			—			(15.0		)	8.0			(7.0		)
Net earnings (loss) attributable to Ingersoll-Rand plc	$	92.3		$	154.8	$	277.9		$	312.8		$	22.9		$	497.9		$	(1,266.3	)	$	92.3

Condensed Consolidating Income Statement

For the six months ended June 30, 2011

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			Consolidating Adjustments			IR Ireland Consolidated
Net revenues	$	—		$	—		$	—		$	—		$	411.8		$	6,618.4		$	—		$	7,030.2
Cost of goods sold	—			—			—			—			(270.3		)	(4,687.9		)	—			(4,958.2		)
Selling and administrative expenses	(4.6		)	—			—			(0.3		)	(129.5		)	(1,230.2		)	—			(1,364.6		)
Operating income (loss)	(4.6		)	—			—			(0.3		)	12.0			700.3			—			707.4
Equity earnings in affiliates, net of tax	18.5			(11.1		)	158.6			260.1			96.9			133.6			(656.6		)	—
Interest expense	—			—			(7.8		)	(96.5		)	(25.4		)	(10.3		)	—			(140.0		)
Intercompany interest and fees	(0.1		)	—			(63.3		)	25.8			(61.5		)	99.1			—			—
Other, net	0.4			(0.1		)	1.0			(29.5		)	31.0			(8.6		)	15.5			9.7
Earnings (loss) before income taxes	14.2			(11.2		)	88.5			159.6			53.0			914.1			(641.1		)	577.1
Benefit (provision) for income taxes	0.5			—			—			—			10.1			(146.0		)	—			(135.4		)
Continuing operations	14.7			(11.2		)	88.5			159.6			63.1			768.1			(641.1		)	441.7
Discontinued operations, net of tax	—			—			—			—			(17.9		)	(396.0		)	—			(413.9		)
Net earnings (loss)	14.7			(11.2		)	88.5			159.6			45.2			372.1			(641.1		)	27.8
Less: Net earnings attributable to noncontrolling interests	—			—			—			—			—			(27.5		)	14.4			(13.1		)
Net earnings (loss) attributable to Ingersoll-Rand plc	$	14.7		$	(11.2	)	$	88.5		$	159.6		$	45.2		$	344.6		$	(626.7	)	$	14.7

Condensed Consolidating Income Statement

For the three months ended June 30, 2010

In millions	IR Ireland			IR Limited		IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			Consolidating Adjustments			IR Ireland Consolidated
Net revenues	$	—		$	—	$	—		$	—		$	179.5		$	3,302.3		$	—		$	3,481.8
Cost of goods sold	—			—		—			—			(139.8		)	(2,333.0		)	—			(2,472.8		)
Selling and administrative expenses	(2.4		)	—		—			(0.1		)	(54.1		)	(589.0		)	—			(645.6		)
Operating income (loss)	(2.4		)	—		—			(0.1		)	(14.4		)	380.3			—			363.4
Equity earnings in affiliates, net of tax	198.9			194.3		231.9			295.8			45.8			195.9			(1,162.6		)	—
Interest expense	—			—		(3.9		)	(48.9		)	(13.1		)	(5.2		)	—			(71.1		)
Intercompany interest and fees	—			—		(32.7		)	(8.5		)	(32.4		)	73.6			—			—
Other, net	(0.5		)	0.2		0.3			(4.6		)	5.3			29.8			(22.1		)	8.4
Earnings (loss) before income taxes	196.0			194.5		195.6			233.7			(8.8		)	674.4			(1,184.7		)	300.7
Benefit (provision) for income taxes	0.4			—		—			—			16.1			(71.4		)	—			(54.9		)
Continuing operations	196.4			194.5		195.6			233.7			7.3			603.0			(1,184.7		)	245.8
Discontinued operations, net of tax	—			—		—			—			(6.9		)	(37.0		)	—			(43.9		)
Net earnings (loss)	196.4			194.5		195.6			233.7			0.4			566.0			(1,184.7		)	201.9
Less: Net earnings attributable to noncontrolling interests	—			—		—			—			—			(32.2		)	26.7			(5.5		)
Net earnings (loss) attributable to Ingersoll-Rand plc	$	196.4		$	194.5	$	195.6		$	233.7		$	0.4		$	533.8		$	(1,158.0	)	$	196.4

Condensed Consolidating Income Statement

For the six months ended June 30, 2010

In millions	IR Ireland			IR Limited		IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			Consolidating Adjustments			IR Ireland Consolidated
Net revenues	$	—		$	—	$	—		$	—		$	339.6		$	5,908.1		$	—		$	6,247.7
Cost of goods sold	—			—		—			—			(261.7		)	(4,220.2		)	—			(4,481.9		)
Selling and administrative expenses	(4.7		)	—		—			(0.4		)	(100.1		)	(1,157.7		)	—			(1,262.9		)
Operating income (loss)	(4.7		)	—		—			(0.4		)	(22.2		)	530.2			—			502.9
Equity earnings in affiliates, net of tax	202.7			222.4		308.5			404.0			77.9			199.7			(1,415.2		)	—
Interest expense	—			—		(7.8		)	(97.1		)	(26.4		)	(10.8		)	—			(142.1		)
Intercompany interest and fees	—			—		(66.6		)	(15.0		)	(62.7		)	144.3			—			—
Other, net	(0.8		)	0.3		0.6			20.1			9.8			16.8			(32.6		)	14.2
Earnings (loss) before income taxes	197.2			222.7		234.7			311.6			(23.6		)	880.2			(1,447.8		)	375.0
Benefit (provision) for income taxes	0.7			—		—			—			(6.1		)	(103.6		)	—			(109.0		)
Continuing operations	197.9			222.7		234.7			311.6			(29.7		)	776.6			(1,447.8		)	266.0
Discontinued operations, net of tax	—			—		—			—			(5.1		)	(52.9		)	—			(58.0		)
Net earnings (loss)	197.9			222.7		234.7			311.6			(34.8		)	723.7			(1,447.8		)	208.0
Less: Net earnings attributable to noncontrolling interests	—			—		—			—			—			(22.8		)	12.7			(10.1		)
Net earnings (loss) attributable to Ingersoll-Rand plc	$	197.9		$	222.7	$	234.7		$	311.6		$	(34.8	)	$	700.9		$	(1,435.1	)	$	197.9

Condensed Consolidating Balance Sheet

June 30, 2011

In millions	IR Ireland		IR Limited		IR International		IR Global Holding		IR New Jersey		Other Subsidiaries		Consolidating Adjustments			IR Ireland Consolidated
Current assets:
Cash and cash equivalents	$	—	$	—	$	—	$	192.8	$	245.5	$	821.5	$	—		$	1,259.8
Accounts and notes receivable, net	—		—		—		—		178.1		2,426.9		—			2,605.0
Inventories	—		—		—		—		78.4		1,512.5		—			1,590.9
Other current assets	0.2		—		1.0		0.7		195.9		410.2		—			608.0
Assets held for sale	—		—		—		—		—		748.5		—			748.5
Accounts and notes receivable affiliates	321.7		3,035.6		17.0		3,685.1		570.7		13,884.5		(21,514.6		)	—
Total current assets	321.9		3,035.6		18.0		3,878.6		1,268.6		19,804.1		(21,514.6		)	6,812.2
Investment in affiliates	8,311.0		6,144.0		19,355.8		15,602.8		8,874.8		82,725.8		(141,014.2		)	—
Property, plant and equipment, net	0.1		—		—		0.2		208.2		1,431.8		—			1,640.3
Intangible assets, net	—		—		—		—		85.6		10,613.9		—			10,699.5
Other noncurrent assets	—		—		0.8		16.7		839.7		531.3		—			1,388.5
Total assets	$	8,633.0	$	9,179.6	$	19,374.6	$	19,498.3	$	11,276.9	$	115,106.9	$	(162,528.8	)	$	20,540.5
Current liabilities:
Accounts payable and accruals	$	3.6	$	0.3	$	2.5	$	49.5	$	443.4	$	3,157.1	$	—		$	3,656.4
Short-term borrowings and current maturities of long-term debt	—		—		—		855.1		351.0		67.6		(520.4		)	753.3
Liabilities held for sale	—		—		—		—		—		197.6		—			197.6
Accounts and note payable affiliates	254.4		58.9		4,742.2		7,327.9		5,243.8		4,516.4		(22,143.6		)	—
Total current liabilities	258.0		59.2		4,744.7		8,232.5		6,038.2		7,938.7		(22,664.0		)	4,607.3
Long-term debt	—		—		299.5		2,004.1		373.5		204.2		—			2,881.3
Note payable affiliate	—		—		10,789.4		—		—		—		(10,789.4		)	—
Other noncurrent liabilities	—		4.0		3.8		—		1,731.4		2,937.7		—			4,676.9
Total liabilities	258.0		63.2		15,837.4		10,236.6		8,143.1		11,080.6		(33,453.4		)	12,165.5
Temporary equity	10.0		—		—		—		—		—		—			10.0
Equity:
Total equity	8,365.0		9,116.4		3,537.2		9,261.7		3,133.8		104,026.3		(129,075.4		)	8,365.0
Total liabilities and equity	$	8,633.0	$	9,179.6	$	19,374.6	$	19,498.3	$	11,276.9	$	115,106.9	$	(162,528.8	)	$	20,540.5

Condensed Consolidating Balance Sheet

December 31, 2010

In millions	IR Ireland		IR Limited		IR International		IR Global Holding		IR New Jersey		Other Subsidiaries		Consolidating Adjustments			IR Ireland Consolidated
Current assets:
Cash and cash equivalents	$	0.4	$	—	$	12.0	$	99.9	$	135.5	$	766.5	$	—		$	1,014.3
Accounts and notes receivable, net	0.2		1.1		—		—		202.8		2,054.3		—			2,258.4
Inventories	—		—		—		—		79.8		1,238.6		—			1,318.4
Other current assets	0.1		—		4.0		0.4		203.9		399.6		—			608.0
Assets held for sale	—		—		—		—		—		1,082.5		—			1,082.5
Accounts and notes receivable affiliates	93.4		2,987.3		17.0		3,611.4		589.7		14,247.7		(21,546.5		)	—
Total current assets	94.1		2,988.4		33.0		3,711.7		1,211.7		19,789.2		(21,546.5		)	6,281.6
Investment in affiliates	7,992.3		5,877.9		19,131.2		15,278.0		8,769.2		77,272.6		(134,321.2		)	—
Property, plant and equipment, net	0.1		—		—		0.2		213.6		1,455.7		—			1,669.6
Intangible assets, net	—		—		—		—		84.2		10,552.0		—			10,636.2
Other noncurrent assets	—		—		0.9		18.4		821.7		562.5		—			1,403.5
Total assets	$	8,086.5	$	8,866.3	$	19,165.1	$	19,008.3	$	11,100.4	$	109,632.0	$	(155,867.7	)	$	19,990.9
Current liabilities:
Accounts payable and accruals	$	3.6	$	—	$	1.8	$	49.3	$	443.2	$	2,866.4	$	—		$	3,364.3
Short-term borrowings and current maturities of long-term debt	—		—		—		857.6		351.0		82.3		(529.3		)	761.6
Liabilities held for sale	—		—		—		—		—		152.1		—			152.1
Accounts and note payable affiliates	7.1		10.4		4,688.4		7,107.8		5,065.9		5,310.2		(22,189.8		)	—
Total current liabilities	10.7		10.4		4,690.2		8,014.7		5,860.1		8,411.0		(22,719.1		)	4,278.0
Long-term debt	—		—		299.4		2,004.1		381.1		237.7		—			2,922.3
Note payable affiliate	—		—		10,789.4		—		—		—		(10,789.4		)	—
Other noncurrent liabilities	—		8.3		3.9		—		1,770.8		2,931.8		—			4,714.8
Total liabilities	10.7		18.7		15,782.9		10,018.8		8,012.0		11,580.5		(33,508.5		)	11,915.1
Temporary equity	16.7		—		—		—		—		—		—			16.7
Equity:
Total equity	8,059.1		8,847.6		3,382.2		8,989.5		3,088.4		98,051.5		(122,359.2		)	8,059.1
Total liabilities and equity	$	8,086.5	$	8,866.3	$	19,165.1	$	19,008.3	$	11,100.4	$	109,632.0	$	(155,867.7	)	$	19,990.9

Condensed Consolidating Statement of Cash Flows

For the six months ended June 30, 2011

In millions	IR Ireland				IR Limited				IR International				IR Global Holding				IR New Jersey				Other Subsidiaries				IR Ireland Consolidated
Net cash provided by (used in) continuing operating activities	$	(4.2	)		$	(0.1	)		$	(6.8	)		$	(96.4	)		$	51.3			$	399.0			$	342.8
Net cash provided by (used in) discontinued operating activities	—				—				—				—				(17.9		)		7.6				(10.3		)
Cash flows from investing activities:
Capital expenditures	—				—				—				—				(14.9		)		(63.9		)		(78.8		)
Proceeds from sale of property, plant and equipment	—				—				—				—				1.6				33.2				34.8
Acquisitions, net of cash	—				—				—				—				—				(2.0		)		(2.0		)
Proceeds from business disposition, net of cash	—				—				—				—				—				—				—
Other, net	—				—				—				—				—				—				—
Net cash provided by (used in) continuing investing activities	—				—				—				—				(13.3		)		(32.7		)		(46.0		)
Net cash provided by (used in) discontinued investing activities	—				—				—				—				—				42.9				42.9
Cash flows from financing activities:
Net change in debt	—				—				—				(0.2		)		(7.6		)		(48.6		)		(56.4		)
Debt issuance costs	—			—	—			—	—			—	(2.4		)	—	—			—	—			—	(2.4		)
Net inter-company proceeds (payments)	21.5				0.1				(5.2		)		191.9				97.5				(305.8		)		—
Dividends paid to noncontrolling interests	—				—				—				—				—				(18.3		)		(18.3		)
Dividends (paid) received	(63.1		)		—				—				—				—				—				(63.1		)
Proceeds from shares issued under incentive plans	101.9				—				—				—				—				—				101.9
Repurchase of ordinary shares	(56.0		)		—				—				—				—				—				(56.0		)
Other, net	(0.5		)		—				—				—				—				(1.0		)		(1.5		)
Net cash provided by (used in) continuing financing activities	3.8				0.1				(5.2		)		189.3				89.9				(373.7		)		(95.8		)
Net cash provided by (used in) discontinued financing activities	—				—				—				—				—				—				—
Effect of exchange rate changes on cash and cash equivalents	—				—				—				—				—				11.9				11.9
Net increase (decrease) in cash and cash equivalents	(0.4		)		—				(12.0		)		92.9				110.0				55.0				245.5
Cash and cash equivalents - beginning of period	0.4				—				12.0				99.9				135.5				766.5				1,014.3
Cash and cash equivalents - end of period	$	—			$	—			$	—			$	192.8			$	245.5			$	821.5			$	1,259.8

Condensed Consolidating Statement of Cash Flows

For the six months ended June 30, 2010

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			IR Ireland Consolidated
Net cash provided by (used in) continuing operating activities	$	(5.6	)	$	0.2		$	(7.2	)	$	(77.4	)	$	(153.8	)	$	517.6		$	273.8
Net cash provided by (used in) discontinued operating activities	—			—			—			—			(5.1		)	(9.9		)	(15.0		)
Cash flows from investing activities:
Capital expenditures	—			—			—			—			(13.5		)	(54.7		)	(68.2		)
Proceeds from sale of property, plant and equipment	—			—			—			—			—			1.1			1.1
Acquisitions, net of cash	—			—			—			—			—			(5.5		)	(5.5		)
Proceeds from business disposition, net of cash	—			—			—			—			—			—			—
Other, net	—			—			—			—			—			—			—
Net cash provided by (used in) continuing investing activities	—			—			—			—			(13.5		)	(59.1		)	(72.6		)
Net cash provided by (used in) discontinued investing activities	—			—			—			—			—			(0.2		)	(0.2		)
Cash flows from financing activities:
Net change in debt	—			—			—			0.1			(7.8		)	(210.9		)	(218.6		)
Debt issuance costs	—			—			—			(5.5		)	—			—			(5.5		)
Net inter-company proceeds (payments)	13.8			(0.2		)	10.5			38.0			171.7			(233.8		)	—
Dividends paid to noncontrolling interests	—			—			—			—			—			(8.4		)	(8.4		)
Dividends (paid) received	(45.0		)	—			—			—			—			—			(45.0		)
Proceeds from shares issued under incentive plans	37.1			—			—			—			—			—			37.1
Other, net	—			—			—			—			—			—			—
Net cash provided by (used in) continuing financing activities	5.9			(0.2		)	10.5			32.6			163.9			(453.1		)	(240.4		)
Net cash provided by (used in) discontinued financing activities	—			—			—			—			—			—			—
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—			(0.7		)	(0.7		)
Net increase (decrease) in cash and cash equivalents	0.3			—			3.3			(44.8		)	(8.5		)	(5.4		)	(55.1		)
Cash and cash equivalents - beginning of period	0.6			—			—			81.8			175.5			618.8			876.7
Cash and cash equivalents - end of period	$	0.9		$	—		$	3.3		$	37.0		$	167.0		$	613.4		$	821.6