Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

RELATED PARTY TRANSACTIONS

Ingersoll Rand provided the Company’s subsidiaries with certain centrally managed services and corporate function support in the areas of finance, information technology, employee benefits, legal, human resources, integrated supply chain and marketing through November 30, 2013.

The Company’s subsidiaries use of these services and its participation in these employee benefit plans generated both direct and indirect costs. These direct and indirect costs and benefits relating to the services and benefit plans were charged to the Company’s subsidiaries and were included in Cost of goods sold and Selling and administrative expenses.

Costs associated with centrally managed services were billed to the Company’s subsidiaries on the basis of direct usage. Historically, Ingersoll Rand corporate allocations were generally allocated to the Company’s subsidiaries on the basis of revenue, assets, payroll expense, and selling and administrative expenses. Incremental corporate costs were allocated to the Company’s subsidiaries on a similar basis. Costs were allocated to the Company’s subsidiaries using allocation methods that management believed were reasonable.

The Consolidated Financial Statements reflect these direct and indirect costs through a corporate overhead allocation. For the years ended December 31, these allocated Ingersoll Rand costs amount to:

	2013
Centrally managed service costs	$	104.6
Historical Ingersoll Rand corporate overhead allocations	36.6
Incremental corporate costs not previously allocated to businesses	33.3
Total	$	174.5

The Company entered into a Transition Services Agreement with Ingersoll Rand, under which Ingersoll Rand provides certain services for a limited time after the Spin-off to help ensure an orderly transition. Under the Transition Services Agreement, the Company receives certain services, including services for information technology, human resources and labor and finance and accounting support as well as other corporate support services, from Ingersoll Rand and/or third party providers at specified prices. The Company paid $1.5 million and $2.9 million in 2015 and 2014 and $0.5 million in the fourth quarter of 2013 to Ingersoll Rand for services provided under transition services agreements.