Earnings Per Share (EPS)

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share (EPS)

Earnings Per Share (EPS)

Basic EPS is calculated by dividing Net earnings attributable to Ingersoll-Rand plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case, includes shares issuable under share-based compensation plans and the effects of the Exchangeable Senior Notes issued in April 2009. The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations for the three and nine months ended September 30:

	Three months ended		Nine months ended
In millions	2012	2011	2012	2011
Weighted-average number of basic shares	307.7	327.7	305.4	331.0
Shares issuable under incentive stock plans	4.3	2.9	3.5	4.7
Exchangeable Senior Notes	—	9.6	4.0	11.4
Weighted-average number of diluted shares	312.0	340.2	312.9	347.1
Anti-dilutive shares	2.6	10.6	5.8	3.0

The Company settled all remaining outstanding Exchangeable Senior Notes during the second quarter of 2012. As a result, the Company issued 10.8 million ordinary shares related to the equity portion of the Notes. See Note 6 for a further discussion.