|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
Emerging Growth Company
|
Item 7.01
|
REGULATION FD DISCLOSURE
|
Item 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS
|
(d)
|
Exhibits
|
Exhibit No. | Description |
99.1 | Unaudited Pro Forma Financial Information of Ingersoll Rand Inc. |
INGERSOLL RAND INC.
|
||
|
|
|
|
By:
|
/s/ Andrew Schiesl
|
|
|
Andrew Schiesl
|
|
|
Senior Vice President, General Counsel, Chief Compliance Officer, and Secretary
|
Date: April 15, 2020
|
1. |
Industrial Technologies and Services (“IT&S”)
|
2. |
Precision and Science Technologies (“P&ST”)
|
3. |
Specialty Vehicle Technologies (“SVT”)
|
4. |
High Pressure Solutions (“HPS”)
|
• |
Table 1: In Table 1, the Company presents a reconciliation from the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2019 (prepared in accordance
with Article 11 of Regulation S-X) previously filed with the Securities and Exchange Commission (“SEC”) on March 31, 2020 as Exhibit 99.2 to Amendment No. 1 to the Company’s Current Report on Form 8-K filed with the SEC on March 4, 2020
(the “Form 8-K/A”), to the unaudited adjusted condensed combined statement of operations for the year ended December 31, 2019. The unaudited adjusted condensed combined statement of operations data serves as the basis for the other
unaudited financial information (and related GAAP and non-GAAP measures) for the year ended December 31, 2019 presented in Table 3 through Table 8.
|
• |
Table 2: In Table 2, the Company presents a reconciliation from the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2018 (prepared in accordance
with Article 11 of Regulation S-X) previously presented in the Company’s Registration Statement on Form S-4 filed with the SEC on December 30, 2019, as amended by Amendment No. 1 filed with the SEC on January 15, 2020 (as so amended, the
“Form S-4”), to the unaudited adjusted condensed combined statement of operations for the year ended December 31, 2018. The unaudited adjusted condensed combined statement of operations data serves as the basis for the other unaudited
financial information (and related GAAP and non-GAAP measures) for the year ended December 31, 2018 presented in Table 3 through Table 8.
|
• |
Table 3: In Table 3, the Company presents its unaudited combined Adjusted Revenues, Adjusted EBITDA, and Adjusted EBITDA Margin at both the
consolidated Company level and segment levels on a basis that reflects the Merger happening on January 1, 2018 and Ingersoll Rand’s new segment structure post-Merger. Additionally, the table presents unaudited Further Adjusted Net
Income and unaudited Further Adjusted Diluted EPS at the consolidated Company level.
|
• |
Table 4: In Table 4, the Company presents unaudited adjusted combined revenue growth/(decline) and its components (including the non-GAAP measures
of organic revenue growth/(decline), impact of foreign currency, and impact of acquisitions) on a basis that reflects the Merger happening on January 1, 2018 and
Ingersoll Rand’s new segment structure post-Merger.
|
• |
Table 5: In Table 5, the Company presents a reconciliation of unaudited Adjusted Net Income and unaudited Adjusted Diluted EPS to Further Adjusted Net Income and unaudited Further Adjusted
Diluted EPS (including a reconciliation from diluted shares outstanding to adjusted diluted shares outstanding).
|
• |
Table 6: In Table 6, the Company presents a reconciliation of unaudited Adjusted Diluted EPS to unaudited Further Adjusted Diluted EPS on a per share basis.
|
• |
Table 7: In Table 7, the Company presents a reconciliation of unaudited Adjusted Net Income to unaudited Adjusted EBITDA and unaudited Further Adjusted Net Income.
|
• |
Table 8: In Table 8, the Company presents unaudited Adjusted Revenues by segment and a reconciliation of unaudited Segment Adjusted EBITDA by segment to unaudited Adjusted Income Before Income
Taxes at the consolidated Company level.
|
Pro Forma Combined
Year Ended
Dec 31, 2019 (a)
|
Supplemental
Adjustments
|
Adjusted Combined
Financial Information
Year Ended
Dec 31, 2019
|
|||||||||||
Revenues
|
$
|
6,173.2
|
$
|
(8.7
|
)
|
(b)
|
$
|
6,164.5
|
|||||
Cost of sales
|
4,004.4
|
(3.0
|
)
|
(c)
|
4,001.4
|
||||||||
Gross profit
|
2,168.8
|
(5.7
|
)
|
2,163.1
|
|||||||||
Selling and administrative expenses
|
1,148.2
|
(38.4
|
)
|
(c)
|
1,109.8
|
||||||||
Amortization of intangible assets
|
359.8
|
-
|
359.8
|
||||||||||
Other operating expense, net
|
72.1
|
-
|
72.1
|
||||||||||
Operating income
|
588.7
|
32.7
|
621.4
|
||||||||||
Interest expense
|
156.5
|
-
|
156.5
|
||||||||||
Loss on extinguishment of debt
|
0.2
|
-
|
0.2
|
||||||||||
Other income, net
|
(4.2
|
)
|
-
|
(4.2
|
)
|
||||||||
Income before income taxes
|
436.2
|
32.7
|
468.9
|
||||||||||
Provision for income taxes
|
96.5
|
22.1
|
(d)
|
118.6
|
|||||||||
Net income
|
339.7
|
10.6
|
350.3
|
||||||||||
Less: Net earnings attributable to noncontrolling interests
|
2.7
|
-
|
2.7
|
||||||||||
Net income attributable to Ingersoll Rand
|
$
|
337.0
|
$ |
10.6
|
$
|
347.6
|
|||||||
Basic earnings per share
|
$
|
0.81
|
$
|
0.03
|
$
|
0.84
|
|||||||
Diluted earnings per share
|
$
|
0.80
|
$
|
0.03
|
$
|
0.83
|
|||||||
Weighted average shares, basic
|
414.5
|
414.5
|
|||||||||||
Weighted average shares, diluted
|
420.1
|
420.1
|
(a) |
This column represents the unaudited pro forma condensed combined statement of operations giving effect to the Merger which were included as Exhibit 99.2 to the Form 8-K/A.
|
(b) |
Adjustment reflecting certain ongoing sales with Trane Technologies per the Transition Services Agreement that will be sold at zero margin post-Merger.
|
(c) |
Adjustment reflecting the removal of certain corporate expenses allocated to the Ingersoll Rand Industrial Segment by its former parent (inclusive of corporate expenses allocated to Precision Flow Systems by its former parent) recorded
in connection with the carve-out financial statements which did not convey with the Ingersoll Rand Industrial Segment.
|
(d) |
Adjustment reflecting the application of the effective tax rate of 25.3% to all of the supplemental pro forma adjustments previously discussed above and additional tax provision related to Global Intangible Low-Taxed Income (“GILTI”)
and income as defined under Subpart F of the Internal Revenue Code (“Subpart F”).
|
Pro Forma Combined
Year Ended
Dec 31, 2018 (a)
|
Supplemental
Adjustments
|
Adjusted Combined
Financial Information
Year Ended
Dec 31, 2018
|
|||||||||||
Revenues
|
$
|
6,460.3
|
$
|
(6.2
|
)
|
(b)
|
$
|
6,454.1
|
|||||
Cost of sales
|
4,168.1
|
(1.7
|
)
|
(c)
|
4,166.4
|
||||||||
Gross profit
|
2,292.2
|
(4.5
|
)
|
2,287.7
|
|||||||||
Selling and administrative expenses
|
1,198.2
|
(45.8
|
)
|
(c)
|
1,152.4
|
||||||||
Amortization of intangible assets
|
361.3
|
-
|
361.3
|
||||||||||
Other operating expense, net
|
70.5
|
-
|
70.5
|
||||||||||
Operating income
|
662.2
|
41.3
|
703.5
|
||||||||||
Interest expense
|
170.3
|
(3.1
|
)
|
(d)
|
167.2
|
||||||||
Loss on extinguishment of debt
|
1.1
|
-
|
1.1
|
||||||||||
Other income, net
|
(8.8
|
)
|
-
|
(8.8
|
)
|
||||||||
Income before income taxes
|
499.6
|
44.4
|
544.0
|
||||||||||
Provision for income taxes
|
116.6
|
18.3
|
(e)
|
134.9
|
|||||||||
Net income
|
383.0
|
26.1
|
409.1
|
||||||||||
Less: Net earnings attributable to noncontrolling interests
|
2.6
|
-
|
2.6
|
||||||||||
Net income attributable to Ingersoll Rand
|
$
|
380.4
|
$
|
26.1
|
$
|
406.5
|
|||||||
Basic earnings per share
|
$
|
0.92
|
$
|
0.06
|
$
|
0.98
|
|||||||
Diluted earnings per share
|
$
|
0.90
|
$
|
0.07
|
$
|
0.97
|
|||||||
Weighted average shares, basic
|
412.9
|
412.9
|
|||||||||||
Weighted average shares, diluted
|
420.5
|
420.5
|
(a) |
This column represents the unaudited pro forma condensed combined statement of operations giving effect to the Merger which were included in the Form S-4.
|
(b) |
Adjustment reflecting certain ongoing sales with Trane Technologies per the Transition Services Agreement that will be sold at zero margin post-Merger.
|
(c) |
Adjustment reflecting the removal of certain corporate expenses allocated to the Ingersoll Rand Industrial segment by its former Parent (inclusive of corporate expenses allocated to Precision Flow Systems by its former Parent) recorded
in connection with the carve-out financial statements which did not convey with the Ingersoll Rand Industrial segment.
|
(d) |
Adjustment reflecting the removal of pro forma interest expense included in the unaudited pro forma condensed combined statement of operations included in the Form S-4. The original pro forma interest expense amount was calculated
using the best available estimated interest rates at the time the Form S-4 was filed. This incremental adjustment reflects a change in the interest expense calculation due to the application of actual agreed upon interest rates confirmed
in the new borrowing facility.
|
(e) |
Adjustment reflecting the application of the effective tax rate of 24.8% to all of the supplemental pro forma adjustments previously discussed above and additional tax provision related to GILTI and Subpart F.
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Ingersoll Rand
|
||||||||||||||||||||||||
Adjusted Revenue (non-GAAP)
|
$
|
6,164.5
|
$
|
1,588.4
|
$
|
1,481.0
|
$
|
1,595.5
|
$
|
1,499.6
|
$
|
6,454.1
|
||||||||||||
Adjusted EBITDA (non-GAAP)
|
1,196.5
|
314.2
|
293.8
|
313.1
|
275.4
|
1,294.9
|
||||||||||||||||||
Adjusted EBITDA Margin (non-GAAP)
|
19.4
|
%
|
19.8
|
%
|
19.8
|
%
|
19.6
|
%
|
18.4
|
%
|
20.1
|
%
|
||||||||||||
Further Adjusted Net Income (non-GAAP)
|
690.8
|
184.4
|
169.0
|
183.3
|
154.1
|
755.3
|
||||||||||||||||||
Further Adjusted Diluted EPS (non-GAAP)
|
$
|
1.64
|
$
|
0.44
|
$
|
0.39
|
$
|
0.44
|
$
|
0.37
|
$
|
1.80
|
||||||||||||
Industrial Technologies & Services
|
||||||||||||||||||||||||
Adjusted Revenue (non-GAAP)
|
$
|
4,057.5
|
$
|
1,069.8
|
$
|
984.0
|
$
|
1,027.5
|
$
|
976.2
|
$
|
4,216.1
|
||||||||||||
Adjusted EBITDA (non-GAAP)
|
816.1
|
236.0
|
199.8
|
199.5
|
180.8
|
825.6
|
||||||||||||||||||
Adjusted EBITDA Margin (non-GAAP)
|
20.1
|
%
|
22.1
|
%
|
20.3
|
%
|
19.4
|
%
|
18.5
|
%
|
19.6
|
%
|
||||||||||||
Precision & Science Technologies
|
||||||||||||||||||||||||
Adjusted Revenue (non-GAAP)
|
$
|
850.3
|
$
|
213.2
|
$
|
208.0
|
$
|
215.5
|
$
|
213.6
|
$
|
818.5
|
||||||||||||
Adjusted EBITDA (non-GAAP)
|
235.9
|
59.4
|
56.6
|
63.4
|
56.5
|
208.7
|
||||||||||||||||||
Adjusted EBITDA Margin (non-GAAP)
|
27.7
|
%
|
27.9
|
%
|
27.2
|
%
|
29.4
|
%
|
26.5
|
%
|
25.5
|
%
|
||||||||||||
Specialty Vehicle Technologies
|
||||||||||||||||||||||||
Adjusted Revenue (non-GAAP)
|
$
|
822.3
|
$
|
226.4
|
$
|
189.0
|
$
|
233.0
|
$
|
173.9
|
$
|
749.4
|
||||||||||||
Adjusted EBITDA (non-GAAP)
|
116.7
|
32.9
|
27.6
|
37.6
|
18.6
|
104.3
|
||||||||||||||||||
Adjusted EBITDA Margin (non-GAAP)
|
14.2
|
%
|
14.5
|
%
|
14.6
|
%
|
16.1
|
%
|
10.7
|
%
|
13.9
|
%
|
||||||||||||
High Pressure Solutions
|
||||||||||||||||||||||||
Adjusted Revenue (non-GAAP)
|
$
|
434.4
|
$
|
79.0
|
$
|
100.0
|
$
|
119.5
|
$
|
135.9
|
$
|
670.1
|
||||||||||||
Adjusted EBITDA (non-GAAP)
|
117.4
|
16.0
|
26.9
|
32.6
|
41.9
|
227.9
|
||||||||||||||||||
Adjusted EBITDA Margin (non-GAAP)
|
27.0
|
%
|
20.3
|
%
|
26.9
|
%
|
27.3
|
%
|
30.8
|
%
|
34.0
|
%
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Ingersoll Rand
|
||||||||||||||||||||||||
Organic growth (decline) (non-GAAP)
|
(3.0
|
%)
|
(7.1
|
%)
|
(5.8
|
%)
|
(0.9
|
%)
|
2.3
|
%
|
9.0
|
%
|
||||||||||||
Impact of foreign currency (non-GAAP)
|
(2.2
|
%)
|
(1.0
|
%)
|
(1.7
|
%)
|
(2.7
|
%)
|
(3.6
|
%)
|
1.1
|
%
|
||||||||||||
Impact of acquisitions (non-GAAP)
|
0.7
|
%
|
0.4
|
%
|
0.6
|
%
|
0.6
|
%
|
1.3
|
%
|
1.3
|
%
|
||||||||||||
Total adjusted revenue growth (decline) (non-GAAP)
|
(4.5
|
%)
|
(7.7
|
%)
|
(6.9
|
%)
|
(3.0
|
%)
|
-
|
%
|
11.4
|
%
|
||||||||||||
Industrial Technologies & Services
|
||||||||||||||||||||||||
Organic growth (decline) (non-GAAP)
|
(1.6
|
%)
|
(5.4
|
%)
|
(3.4
|
%)
|
(0.9
|
%)
|
4.1
|
%
|
6.9
|
%
|
||||||||||||
Impact of foreign currency (non-GAAP)
|
(2.7
|
%)
|
(1.2
|
%)
|
(2.1
|
%)
|
(3.4
|
%)
|
(4.6
|
%)
|
1.2
|
%
|
||||||||||||
Impact of acquisitions (non-GAAP)
|
0.5
|
%
|
0.3
|
%
|
0.3
|
%
|
0.3
|
%
|
1.3
|
%
|
1.8
|
%
|
||||||||||||
Total adjusted revenue growth (decline) (non-GAAP)
|
(3.8
|
%)
|
(6.3
|
%)
|
(5.2
|
%)
|
(4.0
|
%)
|
0.8
|
%
|
9.9
|
%
|
||||||||||||
Precision & Science Technologies
|
||||||||||||||||||||||||
Organic growth (decline) (non-GAAP)
|
3.5
|
%
|
0.8
|
%
|
(0.3
|
%)
|
4.9
|
%
|
9.1
|
%
|
12.5
|
%
|
||||||||||||
Impact of foreign currency (non-GAAP)
|
(2.4
|
%)
|
(1.2
|
%)
|
(1.9
|
%)
|
(2.9
|
%)
|
(3.9
|
%)
|
2.0
|
%
|
||||||||||||
Impact of acquisitions (non-GAAP)
|
2.8
|
%
|
1.9
|
%
|
2.9
|
%
|
3.1
|
%
|
3.2
|
%
|
0.1
|
%
|
||||||||||||
Total adjusted revenue growth (non-GAAP)
|
3.9
|
%
|
1.5
|
%
|
0.7
|
%
|
5.1
|
%
|
8.4
|
%
|
14.6
|
%
|
||||||||||||
Specialty Vehicle Technologies
|
||||||||||||||||||||||||
Organic growth (non-GAAP)
|
10.3
|
%
|
7.9
|
%
|
17.6
|
%
|
13.3
|
%
|
2.8
|
%
|
12.8
|
%
|
||||||||||||
Impact of foreign currency (non-GAAP)
|
(0.6
|
%)
|
(0.3
|
%)
|
(0.4
|
%)
|
(0.7
|
%)
|
(1.0
|
%)
|
0.4
|
%
|
||||||||||||
Impact of acquisitions (non-GAAP)
|
-
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
||||||||||||
Total adjusted revenue growth (non-GAAP)
|
9.7
|
%
|
7.6
|
%
|
17.2
|
%
|
12.6
|
%
|
1.8
|
%
|
13.2
|
%
|
||||||||||||
High Pressure Solutions
|
||||||||||||||||||||||||
Organic growth (decline) (non-GAAP)
|
(35.1
|
%)
|
(49.8
|
%)
|
(45.9
|
%)
|
(26.5
|
%)
|
(17.2
|
%)
|
14.6
|
%
|
||||||||||||
Impact of foreign currency (non-GAAP)
|
(0.3
|
%)
|
(0.5
|
%)
|
(0.3
|
%)
|
(0.3
|
%)
|
(0.4
|
%)
|
-
|
%
|
||||||||||||
Impact of acquisitions (non-GAAP)
|
0.3
|
%
|
-
|
%
|
-
|
%
|
0.4
|
%
|
0.8
|
%
|
1.0
|
%
|
||||||||||||
Total adjusted revenue growth (decline) (non-GAAP)
|
(35.1
|
%)
|
(50.3
|
%)
|
(46.2
|
%)
|
(26.4
|
%)
|
(16.8
|
%)
|
15.6
|
%
|
(1) |
Organic growth/(decline), impact of foreign currency, and impact of acquisitions are non-GAAP measures. References to “impact of acquisitions” refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the
acquisition. The portion of GAAP revenue attributable to currency translation is calculated as the difference between (a) the period-to-period change in revenue (excluding acquisition sales) and (b) the
period-to-period change in revenue (excluding acquisition sales) after applying prior year foreign exchange rates to the current year period.
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Adjusted Net Income (1)
|
$
|
350.3
|
$
|
104.1
|
$
|
90.4
|
$
|
93.6
|
$
|
62.2
|
$
|
409.1
|
||||||||||||
Adjusted Diluted Earnings Per Share (1)
|
$
|
0.83
|
$
|
0.25
|
$
|
0.21
|
$
|
0.22
|
$
|
0.15
|
$
|
0.97
|
||||||||||||
Plus:
|
||||||||||||||||||||||||
Amortization of acquisition related intangible assets (a)
|
$
|
348.0
|
$
|
86.9
|
$
|
86.8
|
$
|
87.0
|
$
|
87.3
|
$
|
347.4
|
||||||||||||
Acquisition related expenses and non-cash charges (b)
|
9.7
|
4.4
|
2.1
|
1.6
|
1.6
|
16.7
|
||||||||||||||||||
Restructuring and related business transformation costs (c)
|
63.1
|
15.1
|
17.8
|
15.1
|
15.1
|
84.5
|
||||||||||||||||||
Stock-based compensation (d)
|
32.4
|
8.8
|
2.9
|
9.1
|
11.6
|
17.8
|
||||||||||||||||||
Foreign currency transaction losses (gains), net
|
7.2
|
5.3
|
(2.2
|
)
|
1.6
|
2.5
|
(0.6
|
)
|
||||||||||||||||
Shareholder litigation settlement recoveries (e)
|
(6.0
|
)
|
-
|
-
|
-
|
(6.0
|
)
|
(9.5
|
)
|
|||||||||||||||
Other adjustments (f)
|
0.7
|
-
|
-
|
-
|
0.7
|
4.1
|
||||||||||||||||||
Minus:
|
||||||||||||||||||||||||
Income tax provisions, as adjusted (g)
|
114.6
|
40.2
|
28.8
|
24.7
|
20.9
|
114.2
|
||||||||||||||||||
Further Adjusted Net Income
|
$
|
690.8
|
$
|
184.4
|
$
|
169.0
|
$
|
183.3
|
$
|
154.1
|
$
|
755.3
|
||||||||||||
Further Adjusted Diluted Earnings Per Share
|
$
|
1.64
|
$
|
0.44
|
$
|
0.39
|
$
|
0.44
|
$
|
0.37
|
$
|
1.80
|
||||||||||||
Average Shares Outstanding:
|
||||||||||||||||||||||||
Diluted shares outstanding
|
208.9
|
209.4
|
209.0
|
208.9
|
207.7
|
209.1
|
||||||||||||||||||
Effects of transaction
|
211.3
|
211.3
|
211.3
|
211.3
|
211.3
|
211.3
|
||||||||||||||||||
Adjusted diluted shares outstanding
|
420.2
|
420.7
|
420.3
|
420.2
|
419.0
|
420.4
|
(1) |
See Table 1 and Table 2 for the years ended December 31, 2019 and December 31, 2018, respectively, for a reconciliation of unaudited pro forma Net Income and unaudited pro forma Diluted EPS as previously disclosed in SEC filings in
accordance with Article 11 of Regulation S-X to these adjusted measures presented above.
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Adjusted Diluted Earnings Per Share (1)
|
$
|
0.83
|
$
|
0.25
|
$
|
0.21
|
$
|
0.22
|
$
|
0.15
|
$
|
0.97
|
||||||||||||
Plus:
|
||||||||||||||||||||||||
Amortization of acquisition related intangible assets (a)
|
0.83
|
0.20
|
0.21
|
0.21
|
0.21
|
0.83
|
||||||||||||||||||
Acquisition related expenses and non-cash charges (b)
|
0.01
|
0.01
|
-
|
-
|
-
|
0.04
|
||||||||||||||||||
Restructuring and related business transformation costs (c)
|
0.15
|
0.04
|
0.04
|
0.04
|
0.03
|
0.20
|
||||||||||||||||||
Stock-based compensation (d)
|
0.08
|
0.02
|
0.01
|
0.02
|
0.03
|
0.04
|
||||||||||||||||||
Foreign currency transaction losses (gains), net
|
0.01
|
0.01
|
(0.01
|
)
|
-
|
0.01
|
-
|
|||||||||||||||||
Shareholder litigation settlement recoveries (e)
|
(0.01
|
)
|
-
|
-
|
-
|
(0.01
|
)
|
(0.02
|
)
|
|||||||||||||||
Other adjustments (f)
|
-
|
-
|
-
|
-
|
-
|
0.01
|
||||||||||||||||||
Minus:
|
-
|
|||||||||||||||||||||||
Income tax provisions, as adjusted (g)
|
0.26
|
0.09
|
0.07
|
0.05
|
0.05
|
0.27
|
||||||||||||||||||
Further Adjusted Diluted Earnings Per Share
|
$
|
1.64
|
$
|
0.44
|
$
|
0.39
|
$
|
0.44
|
$
|
0.37
|
$
|
1.80
|
(1) |
See Table 1 and Table 2 for the years ended December 31, 2019 and December 31, 2018, respectively, for a reconciliation of unaudited pro forma Diluted EPS as previously disclosed in SEC filings in accordance with Article 11 of
Regulation S-X to Adjusted Diluted EPS presented above.
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Adjusted Net Income (1)
|
$
|
350.3
|
$
|
104.1
|
$
|
90.4
|
$
|
93.6
|
$
|
62.2
|
$
|
409.1
|
||||||||||||
Plus:
|
||||||||||||||||||||||||
Interest expense
|
$
|
156.5
|
$
|
37.8
|
$
|
40.1
|
$
|
39.3
|
$
|
39.3
|
$
|
167.2
|
||||||||||||
Provision for income taxes
|
118.6
|
22.1
|
28.2
|
37.2
|
31.1
|
134.9
|
||||||||||||||||||
Depreciation expense
|
95.8
|
24.0
|
23.0
|
23.8
|
25.0
|
99.3
|
||||||||||||||||||
Amortization expense (a)
|
368.2
|
92.6
|
91.5
|
91.8
|
92.3
|
371.4
|
||||||||||||||||||
Acquisition related expenses and non-cash charges (b)
|
9.7
|
4.4
|
2.1
|
1.6
|
1.6
|
16.7
|
||||||||||||||||||
Restructuring and related business transformation costs (c)
|
63.1
|
15.1
|
17.8
|
15.1
|
15.1
|
84.5
|
||||||||||||||||||
Stock-based compensation (d)
|
32.4
|
8.8
|
2.9
|
9.1
|
11.6
|
17.8
|
||||||||||||||||||
Foreign currency transaction losses (gains), net
|
7.2
|
5.3
|
(2.2
|
)
|
1.6
|
2.5
|
(0.6
|
)
|
||||||||||||||||
Shareholder litigation settlement recoveries (e)
|
(6.0
|
)
|
-
|
-
|
-
|
(6.0
|
)
|
(9.5
|
)
|
|||||||||||||||
Other adjustments (f)
|
0.7
|
-
|
-
|
-
|
0.7
|
4.1
|
||||||||||||||||||
Adjusted EBITDA
|
$
|
1,196.5
|
$
|
314.2
|
$
|
293.8
|
$
|
313.1
|
$
|
275.4
|
$
|
1,294.9
|
||||||||||||
Minus:
|
||||||||||||||||||||||||
Interest expense
|
$
|
156.5
|
$
|
37.8
|
$
|
40.1
|
$
|
39.3
|
$
|
39.3
|
$
|
167.2
|
||||||||||||
Income tax provision, as adjusted (g)
|
233.2
|
62.3
|
57.0
|
61.9
|
52.0
|
249.1
|
||||||||||||||||||
Depreciation expense
|
95.8
|
24.0
|
23.0
|
23.8
|
25.0
|
99.3
|
||||||||||||||||||
Amortization of non-acquisition related intangible assets (a)
|
20.2
|
5.7
|
4.7
|
4.8
|
5.0
|
24.0
|
||||||||||||||||||
Further Adjusted Net Income
|
$
|
690.8
|
$
|
184.4
|
$
|
169.0
|
$
|
183.3
|
$
|
154.1
|
$
|
755.3
|
(1) |
See Table 1 and Table 2 for the years ended December 31, 2019 and December 31, 2018, respectively, for a reconciliation of unaudited pro forma Net income as previously disclosed in SEC filings in accordance with Article 11 of
Regulation S-X to Adjusted Net income presented above.
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Adjusted Revenue
|
||||||||||||||||||||||||
Industrial Technologies & Services
|
$
|
4,057.5
|
$
|
1,069.8
|
$
|
984.0
|
$
|
1,027.5
|
$
|
976.2
|
$
|
4,216.1
|
||||||||||||
Precision & Science Technologies
|
850.3
|
213.2
|
208.0
|
215.5
|
213.6
|
818.5
|
||||||||||||||||||
Specialty Vehicle Technologies
|
822.3
|
226.4
|
189.0
|
233.0
|
173.9
|
749.4
|
||||||||||||||||||
High Pressure Solutions
|
434.4
|
79.0
|
100.0
|
119.5
|
135.9
|
670.1
|
||||||||||||||||||
Total Adjusted Revenue (1)
|
$
|
6,164.5
|
$
|
1,588.4
|
$
|
1,481.0
|
$
|
1,595.5
|
$
|
1,499.6
|
$
|
6,454.1
|
||||||||||||
Segment Adjusted EBITDA
|
||||||||||||||||||||||||
Industrial Technologies & Services
|
$
|
816.1
|
$
|
236.0
|
$
|
199.8
|
$
|
199.5
|
$
|
180.8
|
$
|
825.6
|
||||||||||||
Precision & Science Technologies
|
235.9
|
59.4
|
56.6
|
63.4
|
56.5
|
208.7
|
||||||||||||||||||
Specialty Vehicle Technologies
|
116.7
|
32.9
|
27.6
|
37.6
|
18.6
|
104.3
|
||||||||||||||||||
High Pressure Solutions
|
117.4
|
16.0
|
26.9
|
32.6
|
41.9
|
227.9
|
||||||||||||||||||
Total Segment Adjusted EBITDA
|
$
|
1,286.1
|
$
|
344.3
|
$
|
310.9
|
$
|
333.1
|
$
|
297.8
|
$
|
1,366.5
|
||||||||||||
Less items to reconcile Segment Adjusted EBITDA to Adjusted Income Before Income Taxes:
|
||||||||||||||||||||||||
Corporate expenses not allocated to segments
|
$
|
89.6
|
$
|
30.1
|
$
|
17.1
|
$
|
20.0
|
$
|
22.4
|
$
|
71.6
|
||||||||||||
Interest expense
|
156.5
|
37.8
|
40.1
|
39.3
|
39.3
|
167.2
|
||||||||||||||||||
Depreciation and amortization expense
|
464.0
|
116.6
|
114.5
|
115.6
|
117.3
|
470.7
|
||||||||||||||||||
Acquisition related expenses and non-cash charges (b)
|
9.7
|
4.4
|
2.1
|
1.6
|
1.6
|
16.7
|
||||||||||||||||||
Restructuring and related business transformation costs (c)
|
63.1
|
15.1
|
17.8
|
15.1
|
15.1
|
84.5
|
||||||||||||||||||
Stock-based compensation (d)
|
32.4
|
8.8
|
2.9
|
9.1
|
11.6
|
17.8
|
||||||||||||||||||
Foreign currency transaction losses (gains), net
|
7.2
|
5.3
|
(2.2
|
)
|
1.6
|
2.5
|
(0.6
|
)
|
||||||||||||||||
Shareholder litigation settlement recoveries (e)
|
(6.0
|
)
|
-
|
-
|
-
|
(6.0
|
)
|
(9.5
|
)
|
|||||||||||||||
Other adjustments (f)
|
0.7
|
-
|
-
|
-
|
0.7
|
4.1
|
||||||||||||||||||
Adjusted Income Before Income Taxes(1)
|
$
|
468.9
|
$
|
126.2
|
$
|
118.6
|
$
|
130.8
|
$
|
93.3
|
$
|
544.0
|
(1) |
See Table 1 and Table 2 for the years ended December 31, 2019 and December 31, 2018, respectively, for a reconciliation of unaudited pro forma Revenue and unaudited pro forma Income Before Income Taxes as previously disclosed in SEC
filings in accordance with Article 11 of Regulation S-X to these adjusted measures presented above.
|
(a) |
Amortization expense consisted of the following:
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Amortization of acquisition-related intangible assets
|
$
|
348.0
|
$
|
86.9
|
$
|
86.8
|
$
|
87.0
|
$
|
87.3
|
$
|
347.4
|
||||||||||||
Amortization of non-acquisition related intangible assets
|
20.2
|
5.7
|
4.7
|
4.8
|
5.0
|
24.0
|
||||||||||||||||||
Total amortization expense
|
$
|
368.2
|
$
|
92.6
|
$
|
91.5
|
$
|
91.8
|
$
|
92.3
|
$
|
371.4
|
(b) |
Represents costs associated with successful and/or abandoned acquisitions, including third-party expenses, post-closure integration costs (including certain incentive and non-incentive cash compensation costs), and non-cash charges and
credits arising from fair value purchase accounting adjustments.
|
(c) |
Restructuring and related business transformation costs consisted of the following.
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Restructuring charges
|
$
|
54.6
|
$
|
11.7
|
$
|
16.0
|
$
|
13.9
|
$
|
13.0
|
$
|
62.6
|
||||||||||||
Severance, sign-on, relocation and executive search costs
|
2.5
|
1.2
|
0.1
|
0.2
|
1.0
|
4.1
|
||||||||||||||||||
Facility reorganization, relocation and other costs
|
2.4
|
0.5
|
0.8
|
0.5
|
0.6
|
3.1
|
||||||||||||||||||
Information technology infrastructure transformation
|
1.2
|
0.3
|
0.2
|
0.4
|
0.3
|
0.8
|
||||||||||||||||||
Losses (gains) on asset and business disposals
|
0.8
|
0.9
|
0.2
|
(0.4
|
)
|
0.1
|
(5.3
|
)
|
||||||||||||||||
Consultant and other advisor fees
|
0.3
|
-
|
0.1
|
0.1
|
0.1
|
14.1
|
||||||||||||||||||
Other, net
|
1.3
|
0.5
|
0.4
|
0.4
|
-
|
5.1
|
||||||||||||||||||
Total restructuring and related business transformation costs
|
$
|
63.1
|
$
|
15.1
|
$
|
17.8
|
$
|
15.1
|
$
|
15.1
|
$
|
84.5
|
(d) |
Represents stock-based compensation expense recognized for stock options outstanding of $30.8 million and $17.8 million for the years ended December 31, 2019 and 2018, respectively. Represents stock-based compensation expense
recognized for stock options outstanding of $8.7 million, $2.7 million, $9.0 million and $10.4 million for the quarters ended December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, respectively.
|
(e) |
Represents insurance recoveries of our shareholder litigation settlement in 2014.
|
(f) |
Other adjustments are comprised of the following items:
|
i. |
estimated environmental remediation costs and losses relating to a former production facility;
|
ii. |
certain expenses related to our initial public offering and secondary offerings;
|
iii. |
third party expenses to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of new accounting standards in the first quarter of 2018 and 2019, respectively;
|
iv. |
losses on the extinguishment of the Company’s senior notes, extinguishment of a portion of the Company’s U.S. Term Loan, refinancing of the Company’s Original Dollar Term Loan Facility and the Company’s Original Euro Term Loan Facility
and losses reclassified from accumulated other comprehensive income/(loss) into income related to the amendment of the interest rate swaps in conjunction with the debt repayment; and
|
v. |
other individually immaterial miscellaneous adjustments.
|
(g) |
Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net Income and the removal of applicable discrete tax items. The tax effect of pre-tax items excluded from Adjusted Net Income is
computed using the statutory tax rate related to the jurisdiction that was impacted by the adjustment after taking into account the impact of permanent differences and valuation allowances. The income tax provision, as adjusted for each
of the periods presented below consists of the following:
|
Year ended
|
Quarter ended
|
Year ended
|
||||||||||||||||||||||
Dec 31, 2019
|
Dec 31, 2019
|
Sep 30, 2019
|
Jun 30, 2019
|
Mar 31, 2019
|
Dec 31, 2018
|
|||||||||||||||||||
Provision for income taxes
|
$
|
118.6
|
$
|
22.1
|
$
|
28.2
|
$
|
37.2
|
$
|
31.1
|
$
|
134.9
|
||||||||||||
Tax impact of pre-tax income adjustments
|
114.6
|
40.2
|
28.8
|
24.7
|
20.9
|
113.5
|
||||||||||||||||||
Income tax provision, as adjusted
|
$
|
233.2
|
$
|
62.3
|
$
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Document and Entity Information |
Apr. 15, 2020 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Apr. 15, 2020 |
Entity Registrant Name | Ingersoll Rand Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-38095 |
Entity Tax Identification Number | 46-2393770 |
Entity Address, Address Line One | 800-A Beaty Street |
Entity Address, City or Town | Davidson |
Entity Address, State or Province | NC |
Entity Address, Postal Zip Code | 28036 |
City Area Code | 704 |
Local Phone Number | 655-4000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001699150 |
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share |
Trading Symbol | IR |
Security Exchange Name | NYSE |