Guarantor Financial Information

12 Months Ended

Dec. 31, 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 had a fixed rate of interest of 11% per annum payable semi-annually and imposed certain restrictive covenants upon IR-New Jersey. 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. In the fourth quarter of 2011, the Company repaid the remaining $1.0 billion outstanding of the original $3.6 billion note.

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 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 IR-International, Ingersoll-Rand Global Holding Company Limited (IR-Global), and IR-New Jersey. 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 billion, which was then immediately reduced by the settlement of net intercompany payables of $4.1 billion. At December 31, 2011, $10.8 billion remains outstanding.

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 affiliate continues to be reflected on the Condensed Consolidating Balance Sheet of IR-International and is enforceable in accordance with their terms.

See Note 8 and 19 for a further discussion on the public debt issuance and related guarantees.

The following condensed consolidating 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 Statement of Income

For the year ended December 31, 2011

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			Consolidating Adjustments			IR Ireland Consolidated
Net revenues	$	—		$	—		$	—		$	—		$	867.8		$	13,914.2		$	—		$	14,782.0
Cost of goods sold	—			—			—			—			(584.8		)	(9,908.8		)	—			(10,493.6		)
Selling and administrative expenses	(9.2		)	(0.1		)	—			(0.4		)	(277.0		)	(2,494.5		)	—			(2,781.2		)
Loss on sale/asset impairment	—			—			—			—			—			(646.9		)	—			(646.9		)
Operating income	(9.2		)	(0.1		)	—			(0.4		)	6.0			864.0			—			860.3
Equity earnings in affiliates, net of tax	358.8			614.8			816.5			711.1			117.4			655.6			(3,274.2		)	—
Interest expense	—			—			(15.7		)	(193.2		)	(50.7		)	(20.4		)	—			(280.0		)
Intercompany interest and fees	(2.5		)	—			(129.4		)	52.5			(117.9		)	197.3			—			—
Other, net	(3.9		)	(5.2		)	1.7			251.5			77.9			(28.9		)	(260.1		)	33.0
Earnings (loss) before income taxes	343.2			609.5			673.1			821.5			32.7			1,667.6			(3,534.3		)	613.3
Benefit (provision) for income taxes	—			—			—			—			29.0			(216.2		)	—			(187.2		)
Earnings (loss) from continuing operations	343.2			609.5			673.1			821.5			61.7			1,451.4			(3,534.3		)	426.1
Discontinued operations, net of tax	—			—			—			—			(79.1		)	22.3			—			(56.8		)
Net earnings (loss)	343.2			609.5			673.1			821.5			(17.4		)	1,473.7			(3,534.3		)	369.3
Less: Net earnings attributable to noncontrolling interests	—			—			—			—			—			(35.5		)	9.4			(26.1		)
Net earnings (loss) attributable to Ingersoll-Rand plc	$	343.2		$	609.5		$	673.1		$	821.5		$	(17.4	)	$	1,438.2		$	(3,524.9	)	$	343.2

Condensed Consolidating Statement of Income

For the year ended December 31, 2010

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			Consolidating Adjustments			IR Ireland Consolidated
Net revenues	$	—		$	—		$	—		$	—		$	741.3		$	13,259.8		$	—		$	14,001.1
Cost of goods sold	—			—			—			—			(578.1		)	(9,481.8		)	—			(10,059.9		)
Selling and administrative expenses	(8.4		)	(0.1		)	—			(0.6		)	(223.8		)	(2,446.9		)	—			(2,679.8		)
Operating income (loss)	(8.4		)	(0.1		)	—			(0.6		)	(60.6		)	1,331.1			—			1,261.4
Equity earnings in affiliates, net of tax	659.8			470.4			615.2			1,050.5			168.3			526.6			(3,490.8		)	—
Interest expense	—			—			(15.6		)	(194.2		)	(51.9		)	(21.5		)	—			(283.2		)
Intercompany interest and fees	—			(0.1		)	(135.0		)	(33.3		)	(122.2		)	290.6			—			—
Other, net	(8.6		)	(0.3		)	0.6			(189.7		)	51.4			6.0			173.1			32.5
Earnings (loss) before income taxes	642.8			469.9			465.2			632.7			(15.0		)	2,132.8			(3,317.7		)	1,010.7
Benefit (provision) for income taxes	(0.6		)	—			—			—			93.1			(320.6		)	—			(228.1		)
Earnings (loss) from continuing operations	642.2			469.9			465.2			632.7			78.1			1,812.2			(3,317.7		)	782.6
Discontinued operations, net of tax	—			—			—			—			(16.8		)	(100.7		)	—			(117.5		)
Net earnings (loss)	642.2			469.9			465.2			632.7			61.3			1,711.5			(3,317.7		)	665.1
Less: Net earnings attributable to noncontrolling interests	—			—			—			—			—			(39.6		)	16.7			(22.9		)
Net earnings (loss) attributable to Ingersoll-Rand plc	$	642.2		$	469.9		$	465.2		$	632.7		$	61.3		$	1,671.9		$	(3,301.0	)	$	642.2

Condensed Consolidating Statement of Income

For the year ended December 31, 2009

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			Consolidating Adjustments			IR Ireland Consolidated
Net revenues	$	—		$	—		$	—		$	—		$	643.7		$	12,365.4		$	—		$	13,009.1
Cost of goods sold	—			(0.7		)	—			—			(534.0		)	(8,902.4		)	—			(9,437.1		)
Selling and administrative expenses	(6.3		)	(35.5		)	—			(1.3		)	(288.3		)	(2,355.4		)	—			(2,686.8		)
Operating income (loss)	(6.3		)	(36.2		)	—			(1.3		)	(178.6		)	1,107.6			—			885.2
Equity earnings in affiliates, net of tax	361.8			223.4			203.7			903.2			107.2			(11.4		)	(1,787.9		)	—
Interest expense	—			(7.8		)	(7.8		)	(186.7		)	(53.4		)	(45.9		)	—			(301.6		)
Intercompany interest and fees	—			(18.7		)	(126.5		)	(69.8		)	(126.8		)	341.8			—			—
Other, net	—			(4.3		)	1.0			(299.5		)	152.1			(101.0		)	262.4			10.7
Earnings (loss) before income taxes	355.5			156.4			70.4			345.9			(99.5		)	1,291.1			(1,525.5		)	594.3
Benefit (provision) for income taxes	0.6			—			—			—			68.0			(150.1		)	—			(81.5		)
Earnings (loss) from continuing operations	356.1			156.4			70.4			345.9			(31.5		)	1,141.0			(1,525.5		)	512.8
Discontinued operations, net of tax	—			—			—			—			(50.5		)	13.9			—			(36.6		)
Net earnings (loss)	356.1			156.4			70.4			345.9			(82.0		)	1,154.9			(1,525.5		)	476.2
Less: Net earnings attributable to noncontrolling interests	—			—			—			—			—			(63.4		)	38.5			(24.9		)
Net earnings (loss) attributable to Ingersoll-Rand plc	$	356.1		$	156.4		$	70.4		$	345.9		$	(82.0	)	$	1,091.5		$	(1,487.0	)	$	451.3

Condensed Consolidating Balance Sheet

December 31, 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	$	—	$	—	$	—	$	241.8	$	77.8	$	841.1	$	—		$	1,160.7
Accounts and notes receivable, net	—		—		—		—		166.7		1,979.1		—			2,145.8
Inventories	—		—		—		—		73.3		1,208.7		—			1,282.0
Other current assets	0.1		—		0.1		0.5		176.0		416.5		—			593.2
Assets held for sale	—		—		—		—		—		0.9		—			0.9
Accounts and notes receivable affiliates	137.5		3,013.3		17.0		2,465.4		4,829.9		21,001.7		(31,464.8		)	—
Total current assets	137.6		3,013.3		17.1		2,707.7		5,323.7		25,448.0		(31,464.8		)	5,182.6
Investment in affiliates	8,179.9		6,254.6		20,265.3		17,420.3		7,922.5		84,841.3		(144,883.9		)	—
Property, plant and equipment, net	0.1		—		—		0.2		217.0		1,423.3		—			1,640.6
Intangible assets, net	—		—		—		—		83.9		10,358.3		—			10,442.2
Other noncurrent assets	—		—		0.7		12.7		906.4		569.0		—			1,488.8
Total assets	$	8,317.6	$	9,267.9	$	20,283.1	$	20,140.9	$	14,453.5	$	122,639.9	$	(176,348.7	)	$	18,754.2
Current liabilities:
Accounts payable and accruals	$	51.7	$	—	$	3.9	$	50.8	$	433.1	$	2,821.7	$	—		$	3,361.2
Short-term borrowings and current maturities of long-term debt	—		—		—		581.0		351.9		70.2		(239.8		)	763.3
Liabilities held for sale	—		—		—		—		—		—		—			—
Accounts and note payable affiliates	1,250.2		40.3		4,812.5		7,352.8		9,455.3		8,140.2		(31,051.3		)	—
Total current liabilities	1,301.9		40.3		4,816.4		7,984.6		10,240.3		11,032.1		(31,291.1		)	4,124.5
Long-term debt	—		—		299.6		2,004.2		372.6		202.9		—			2,879.3
Note payable affiliate	—		—		10,789.4		—		—		—		(10,789.4		)	—
Other noncurrent liabilities	—		—		3.8		—		1,894.4		2,836.5		—			4,734.7
Total liabilities	1,301.9		40.3		15,909.2		9,988.8		12,507.3		14,071.5		(42,080.5		)	11,738.5
Temporary equity	3.3		—		—		—		—		—		—			3.3
Equity:
Total equity	7,012.4		9,227.6		4,373.9		10,152.1		1,946.2		108,568.4		(134,268.2		)	7,012.4
Total liabilities and equity	$	8,317.6	$	9,267.9	$	20,283.1	$	20,140.9	$	14,453.5	$	122,639.9	$	(176,348.7	)	$	18,754.2

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		2,020.1		—			2,224.2
Inventories	—		—		—		—		79.8		1,208.7		—			1,288.5
Other current assets	0.1		—		4.0		0.4		203.9		383.8		—			592.2
Assets held for sale	—		—		—		—		3.3		1,164.9		—			1,168.2
Accounts and notes receivable affiliates	93.4		2,987.3		17.0		3,611.4		589.7		14,247.0		(21,545.8		)	—
Total current assets	94.1		2,988.4		33.0		3,711.7		1,215.0		19,791.0		(21,545.8		)	6,287.4
Investment in affiliates	7,992.3		5,877.9		19,131.2		15,278.0		8,769.2		77,272.1		(134,320.7		)	—
Property, plant and equipment, net	0.1		—		—		0.2		210.2		1,458.5		—			1,669.0
Intangible assets, net	—		—		—		—		84.2		10,545.2		—			10,629.4
Other noncurrent assets	—		—		0.9		18.4		821.7		564.1		—			1,405.1
Total assets	$	8,086.5	$	8,866.3	$	19,165.1	$	19,008.3	$	11,100.3	$	109,630.9	$	(155,866.5	)	$	19,990.9
Current liabilities:
Accounts payable and accruals	$	3.6	$	—	$	1.8	$	49.3	$	443.1	$	2,850.3	$	—		$	3,348.1
Short-term borrowings and current maturities of long-term debt	—		—		—		857.6		351.0		82.3		(529.3		)	761.6
Liabilities held for sale	—		—		—		—		—		176.2		—			176.2
Accounts and note payable affiliates	7.1		10.4		4,688.4		7,107.8		5,065.9		5,309.5		(22,189.1		)	—
Total current liabilities	10.7		10.4		4,690.2		8,014.7		5,860.0		8,418.3		(22,718.4		)	4,285.9
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		2,923.9		—			4,706.9
Total liabilities	10.7		18.7		15,782.9		10,018.8		8,011.9		11,579.9		(33,507.8		)	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		98,051.0		(122,358.7		)	8,059.1
Total liabilities and equity	$	8,086.5	$	8,866.3	$	19,165.1	$	19,008.3	$	11,100.3	$	109,630.9	$	(155,866.5	)	$	19,990.9

Condensed Consolidating Statement of Cash Flows

For the year ended December 31, 2011

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			IR Ireland Consolidated
Net cash (used in) provided by continuing operating activities	$	(13.1	)	$	(5.3	)	$	(14.0	)	$	(192.8	)	$	246.4		$	1,209.0		$	1,230.2
Net cash (used in) provided by discontinued operating activities	—			—			—			—			(79.1		)	35.7			(43.4		)
Cash flows from investing activities:
Capital expenditures	—			—			—			—			(47.6		)	(195.3		)	(242.9		)
Acquisition of businesses, net of cash acquired	—			—			—			—			—			(1.9		)	(1.9		)
Proceeds from sale of property, plant and equipment	—			—			—			—			3.1			48.9			52.0
Proceeds from business dispositions, net of cash sold	—			—			—			—			—			355.9			355.9
Other	—			—			—			—			—			—			—
Net cash (used in) provided by continuing investing activities	—			—			—			—			(44.5		)	207.6			163.1
Net cash (used in) provided by discontinued investing activities	—			—			—			—			—			44.4			44.4
Cash flows from financing activities:
Net proceeds (repayments) in debt	—			—			—			(0.2		)	(7.7		)	(46.1		)	(54.0		)
Debt issuance costs	—			—			—			(2.3		)	—			—			(2.3		)
Excess tax benefit from share based compensation	—			—			—			—			11.8			12.8			24.6
Net inter-company (payments) proceeds	1,199.0			5.3			2.0			337.2			(184.6		)	(1,358.9		)	—
Dividends paid to ordinary shareholders	(137.3		)	—			—			—			—			—			(137.3		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(26.2		)	(26.2		)
Acquisition/divestiture of noncontrolling interests	—			—			—			—			—			(1.3		)	(1.3		)
Proceeds from shares issued under incentive plans	109.0			—			—			—			—			—			109.0
Repurchase of ordinary shares	(1,157.5		)	—			—			—			—			—			(1,157.5		)
Other, net	(0.5		)	—			—			—			—			(0.9		)	(1.4		)
Net cash (used in) provided by continuing financing activities	12.7			5.3			2.0			334.7			(180.5		)	(1,420.6		)	(1,246.4		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—			(1.5		)	(1.5		)
Net increase (decrease) in cash and cash equivalents	(0.4		)	—			(12.0		)	141.9			(57.7		)	74.6			146.4
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	$	—		$	—		$	—		$	241.8		$	77.8		$	841.1		$	1,160.7

Condensed Consolidating Statement of Cash Flows

For the year ended December 31, 2010

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			IR Ireland Consolidated
Net cash (used in) provided by continuing operating activities	$	(17.0	)	$	(0.4	)	$	(15.0	)	$	(384.5	)	$	(324.7	)	$	1,498.0		$	756.4
Net cash (used in) provided by discontinued operating activities	—			—			—			—			(16.8		)	(44.2		)	(61.0		)
Cash flows from investing activities:
Capital expenditures	—			—			—			(0.3		)	(36.3		)	(142.9		)	(179.5		)
Acquisition of businesses, net of cash acquired	—			—			—			—			—			(14.0		)	(14.0		)
Proceeds from sale of property, plant and equipment	—			—			—			—			—			14.5			14.5
Proceeds from business dispositions, net of cash sold	—			—			—			—			—			—			—
Other	—			—			—			—			—			—			—
Net cash (used in) provided by continuing investing activities	—			—			—			(0.3		)	(36.3		)	(142.4		)	(179.0		)
Net cash (used in) provided by discontinued investing activities	—			—			—			—			—			0.4			0.4
Cash flows from financing activities:
Net proceeds (repayments) in debt	—			—			—			(249.8		)	(7.8		)	(171.2		)	(428.8		)
Debt issuance costs	—			—			—			(5.5		)	—			—			(5.5		)
Excess tax benefit from share based compensation	—			—			—			—			4.2			—			4.2
Net inter-company (payments) proceeds	(37.9		)	14.4			27.0			658.2			339.8			(1,001.5		)	—
Dividends paid to ordinary shareholders	(90.6		)	(14.0		)	—			—			1.6			12.3			(90.7		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(20.2		)	(20.2		)
Acquisition/divestiture of noncontrolling interests	—			—			—			—			—			(8.0		)	(8.0		)
Proceeds from shares issued under incentive plans	145.3			—			—			—			—			—			145.3
Repurchase of ordinary shares	—			—			—			—			—			—			—
Net cash (used in) provided by continuing financing activities	16.8			0.4			27.0			402.9			337.8			(1,188.6		)	(403.7		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—			24.5			24.5
Net increase (decrease) in cash and cash equivalents	(0.2		)	—			12.0			18.1			(40.0		)	147.7			137.6
Cash and cash equivalents – beginning of period	0.6			—			—			81.8			175.5			618.8			876.7
Cash and cash equivalents – end of period	$	0.4		$	—		$	12.0		$	99.9		$	135.5		$	766.5		$	1,014.3

Condensed Consolidating Statement of Cash Flows

For the year ended December 31, 2009

In millions	IR Ireland			IR Limited			IR International			IR Global Holding			IR New Jersey			Other Subsidiaries			IR Ireland Consolidated
Net cash (used in) provided by continuing operating activities	$	(32.3	)	$	(21.5	)	$	(6.8	)	$	(188.0	)	$	40.3		$	1,965.2		$	1,756.9
Net cash (used in) provided by discontinued operating activities	—			—			—			—			(50.5		)	28.2			(22.3		)
Cash flows from investing activities:
Capital expenditures	(0.1		)	—			—			—			(24.5		)	(179.5		)	(204.1		)
Acquisition of businesses, net of cash acquired	—			—			—			—			—			—			—
Proceeds from sale of property, plant and equipment	—			—			—			—			—			21.6			21.6
Proceeds from business dispositions, net of cash sold	—			—			—			—			—			—			—
Other	—			—			—			—			—			(0.6		)	(0.6		)
Net cash (used in) provided by continuing investing activities	(0.1		)	—			—			—			(24.5		)	(158.5		)	(183.1		)
Net cash (used in) provided by discontinued investing activities	—			—			—			—			—			0.4			0.4
Cash flows from financing activities:
Net proceeds (repayments) in debt	—			—			—			(752.7		)	(8.8		)	(249.0		)	(1,010.5		)
Debt issuance costs	—			—			—			(16.1		)	—			—			(16.1		)
Excess tax benefit from share based compensation	—			—			—			—			0.7			—			0.7
Settlement of cross currency swap	—			—			—			—			—			(26.9		)	(26.9		)
Net inter-company (payments) proceeds	50.9			239.2			6.8			1,028.1			198.5			(1,523.5		)	—
Dividends paid to ordinary shareholders	(44.0		)	(218.8		)	—			9.4			11.2			81.4			(160.8		)
Dividends paid to noncontrolling interests	—			—			—			—			—			(20.2		)	(20.2		)
Acquisition/divestiture of noncontrolling interests	—			—			—			—			—			(1.5		)	(1.5		)
Proceeds from shares issued under incentive plans	26.1			1.1			—			—			—			—			27.2
Repurchase of common shares by subsidiary	—			—			—			—			—			—			—
Net cash (used in) provided by continuing financing activities	33.0			21.5			6.8			268.7			201.6			(1,739.7		)	(1,208.1		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—			(17.3		)	(17.3		)
Net increase (decrease) in cash and cash equivalents	0.6			—			—			80.7			166.9			78.3			326.5
Cash and cash equivalents-beginning of period	—			—			—			1.1			8.6			540.5			550.2
Cash and cash equivalents–end of period	$	0.6		$	—		$	—		$	81.8		$	175.5		$	618.8		$	876.7